Fiscal Year 2006 SuperNOFA for HUD's Discretionary Programs

Note: EPA no longer updates this information, but it may be useful as a reference or resource.

[Federal Register: March 8, 2006 (Volume 71, Number 45)]
[Notices]
[Page 11861-11910]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08mr06-146]

[[pp. 11861-11910]]
Fiscal Year 2006 SuperNOFA for HUD's Discretionary Programs

[[Continued from page 11860]]

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for discussion of regulations that apply when relocating families.
e. Environmental sampling and medical testing to protect the health
of the intervention workers, supervisors, and contractors, unless
reimbursable from another source.
f. Conducting testing, analysis, and mitigation for lead, mold,
carbon monoxide and/or other housing-related health hazards as
appropriate, following generally accepted standards or criteria. A
laboratory recognized by the Environmental Protection Agency's (EPA's)
National Lead Laboratory Accreditation Program (NLLAP) must analyze
clearance dust samples related to lead-based paint. Samples to be
analyzed for fungible submitted to a laboratory accredited in the
Environmental Microbiological Laboratory Accreditation Program (EMLAP),
administered by the American Industrial Hygiene Association (AIHA).
g. Carrying out necessary architectural, engineering and work
specification development and other construction management services.
h. Providing training on Healthy Homes practices to homeowners,
renters, painters, remodelers, and housing maintenance staff working in
low- or very low-income housing.
i. Providing cleaning supplies for hazard intervention and hazard
control to grassroots community-based nonprofit organizations,
including faith-based organizations, for use by homeowners and tenants
in low-income housing, or to such homeowners and tenants directly. (See
the General Section for more information about grassroots community-
based nonprofit organizations, including faith-based organizations.)
j. Providing modest incentives (financial or other, i.e. coupons
for a video rental, coupons for groceries; stipends for completion of
surveys, child care, cleaning kits, etc.) subject to approval by HUD,
to encourage recruitment and retention in the interventions,
participation in educational and training activities and other program-
related functions.
k. Conducting community education programs on environmental health
and safety hazards. Materials should be available in alternative
formats for persons with disabilities (e.g., Braille, audio, large
type) upon request, and in languages other than English that are common
in the community, consistent with HUD's published ``Limited English
Proficiency (LEP) Recipient Guidance'' (see
http://www.hud.gov/offices/fheo/promotingFH/LEP/cfm).
l. Securing liability insurance for housing-related health hazard
evaluation and control activities. This is not considered an
administrative cost.
m. Supporting data collection, analysis, and evaluation of project
activities. (As a condition of the receipt of financial assistance
under this NOFA, all successful applicants will be required to
cooperate with all HUD staff and contractors performing HUD funded
research and evaluation studies.)
3. Program Requirements
In addition to the program requirements in the General Section,
applicants must also meet the following program requirements.
a. Institutional Review Board (IRB) Approval. In conformance with
the Common Rule (Federal Policy for the Protection of Human Subjects,
codified by HUD at 24 CFR 60.101), if your grant activities include
research involving human subjects, your organization must provide an
assurance (e.g., a letter signed by an appropriate official) that the
research has been reviewed and approved by an IRB before you can
initiate activities that require IRB approval. You must also provide
the number for your organization's assurance (i.e., an ``institutional
assurance'') that has been approved by the Department of Health and
Human Service's Office of Human Research Protections (OHRP). For
additional information on what constitutes human subject research or
how to obtain an institutional assurance see the OHRP Web site at:
http://www.hhs.gov/ohrp.
b. HIPAA Authorization. The Privacy Rule of the Health Insurance
Portability and Accountability Act of 1996 requires covered entities
that transmit health information electronically (health care providers,
health plans, etc.) to protect that information. This may be
accomplished by obtaining authorization from the patient or parent,
obtaining a waiver of authorization from an IRB or HIPAA Privacy Board
or de-identifying data. You should identify whether your proposal will
fall under the HIPAA Privacy Rule and if so how you plan to address
these requirements. Additional information on HIPAA and the Privacy
Rule can be found at http://www.hhs.gov/ocr/hipaa.
c. Community Involvement. Applicants must incorporate meaningful
community involvement throughout the entire program in any study that
requires a significant level of interaction with a community (e.g.,
projects being conducted within occupied dwellings or which involve
surveys of community residents). A community is made up of various
groups of persons who have commonalities that can be identified (e.g.,
based on geographic location, ethnicity, health condition, common
interests). Applicants should identify the community that is most
relevant to their particular project. There are many different
approaches to involving the community in the conception, design, and
implementation of a project and the subsequent dissemination of
findings. Examples include, but are not limited to: Establishing a
structured approach to obtain community input and feedback (e.g.,
through a community advisory board); including one or more community-
based organizations as study partners; employing community residents to
recruit study participants and collect data; and enlisting the
community in the dissemination of findings and translation of results
into improved policies and/or practices. A discussion of community
involvement in research involving housing-related health hazards can be
found in Chapter 5 of the Institute of Medicine publication titled
``Ethical Considerations for Research on Housing-Related Health Hazards
Involving Children,'' at: http://www.iom.edu/cms/12552/26004/2981.aspx.
d. Program Performance. Awardees shall take all reasonable steps to
accomplish all healthy homes activities within the approved period of
performance. HUD will closely monitor the awardee's performance with
particular attention to completion of specified activities,
deliverables and milestones, and number of units proposed to be
assessed or to receive remediation. Any previous requests for no cost
extensions will be taken into account when evaluating the capacity of
the applicant to do the work under Rating Factor 1.
e. Work Activities. All lead hazard control activities must be
conducted in compliance with HUD's Lead-Safe Housing Rule, 24 CFR Part
35. Grantees must also comply with any additional requirements in
effect under a state or Native American Tribal Lead-Based Paint
Training and Certification Program that has been authorized by the EPA
pursuant to 40 CFR 745.320.
f. Compliance with Lead Disclosure Rule. All lead-based paint and
lead-based paint hazard test and hazard reduction results must be
provided to the owner of the unit, with a statement describing the
owner's legal duty to disclose the results to tenants (before initial
leasing, or before lease renewal with changes) and buyers (before sale)
if the housing was constructed before 1978 (24 CFR Part 35, subpart A).
This information may only be used for

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purposes of remediation of hazards in the unit and not for retribution/
eviction. Disclosure of other identified housing-related health or
safety hazards to the owner of the unit, for purposes of remediation,
is encouraged but not required.
g. Integrated Pest Management. All pest control activities shall
incorporate the principles and methods of integrated pest management
(IPM). In technical terms, IPM is the coordinated use of pest and
environmental information with available pest control methods to
prevent unacceptable levels of pest damage by the most economical means
and with the least possible hazard to people, property, and the
environment. The IPM approach emphasizes a targeted use of pesticides
that limits the possibility of human exposure (e.g., as opposed to
wide-spread applications) and includes interventions based on the
behavior of the target pest (e.g., preventing access to food or water).
One source for information on IPM is Environmental Health Watch; you
can download information from its web site:
http://www.ehw.org/Asthma/ASTH_Cockroach_Control.htm.
h. Dust Sampling Protocol. Awardees collecting samples of settled
dust from participant homes for environmental allergen analyses (e.g.,
cockroach, dust mite) will be required to use a standard dust sampling
protocol, unless there is a strong justification to use an alternate
protocol. The HUD protocol is posted on the OHHLHC Web site at:
http://www.hud.gov/offices/lead/techstudies/allergen-dust-sample.protocol.doc.

Awardees conducting these analyses will also be required to include
quality control dust samples, provided by OHHLHC at no cost, with the
samples that are submitted for laboratory analyses. For the purpose of
budgeting laboratory costs, assume that 5% of your total allergen dust
samples would consist of QC samples.
i. Hazardous Waste Disposal. Awardees must follow procedures for
hazardous waste disposal as required by the EPA (e.g., 40 CFR parts 61,
260-282, 300-374, and/or 700-799, as applicable), the Department of
Transportation (e.g., 49 CFR parts 171-177), and/or appropriate state
or local regulatory agencies.
j. Worker Protection Procedures. Awardees must comply with the
procedures for worker protection established in the HUD Guidelines as
well as the requirements of OHSA, e.g., 29 CFR part 1910 and/or 1926,
as applicable, or the state or local occupational safety and health
regulations, whichever are more stringent.
k. Written Policies and Procedures. You must have written policies
and procedures for all phases of interventions, including evaluation,
development of specifications, financing, occupant relocation,
independent project inspection, and clearance testing (e.g., for mold,
lead, carbon monoxide or other hazards, as applicable). You and all
your subcontractors, sub-recipients, and their contractors must comply
with these policies and procedures.
l. Data Collection and Provision. You must collect, maintain, and
provide to HUD the data necessary to document the various approaches
used to evaluate and control housing-based health hazards, including
evaluation and control methods, building conditions, medical and
familial information (with confidentiality of individually-identifiable
information ensured) in order to determine the effectiveness and
relative cost of these methods.
m. Section 3 Employment Opportunities. Recipients of assistance in
the Healthy Homes Demonstration Program must comply with Section 3 of
the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u
(Economic Opportunities for Low- and Very Low-Income Persons in
Connection with Assisted Projects) and the HUD regulations at 24 CFR
part 135, including the reporting requirements of subpart E. See
Section V, Rating Factor 3 for recommendations for implementing Section
3 Employment Opportunities.
n. Conducting Business in Accordance with HUD Core Values and
Ethical Standards. If awarded assistance under the Healthy Homes
Demonstration NOFA, you will be required to submit a copy of your code
of conduct and describe the methods you will use to ensure that all
officers, employees, and agents of your organization are aware of your
code of conduct. If you previously submitted your Code of Conduct to
HUD and it appears in the listing on HUD's Web site at
http://www.hud.gov/offices/adm/grants/codeofconduct/conduct.cfm, you do not
have to resubmit the information unless there has been a change in the
legal name, address or authorizing official for your organization. See
the General Section for information about conducting business in
accordance with HUD's core values and ethical standards.
4. DUNS Requirement
Refer to the General Section for information regarding the DUNS
requirement.

IV. Application and Submission Information

A. Web Address To Access an Application Package

Copies of this published NOFA and application forms for this
program may be downloaded from the Grants.gov Web site at http://
www.grants.gov. If you have difficulty accessing the information
you may call the Grants.gov helpline toll-free at (800) 518-GRANTS or e-
mail Support@grants.gov. Helpline customer representatives will assist
you in accessing the information.

B. Content and Form of Application Submission

The following provides instructions on the items to be submitted as
part of the application. See the General Section for instructions for
submitting third party documents and electronic files.
1. An abstract describing the goals and objectives of your proposed
program (2-page limit, single-spaced, 12-point standard font, \3/4\-
inch margins) must be included in the proposal. The abstract should
include the title of your proposed project, the name, mailing address
and telephone number of the principal contact person for the primary
entity and the same information for sub-contractors, partners, etc.
2. A narrative statement addressing the rating factors for award.
Number the pages of your narrative statement and include a header and a
footer that provides the name of the applicant and the name of the
program to which you are applying. Narrative statements provided as
part of the application should be individually labeled to identify the
rating factor to which the narrative is responding (e.g. Factor 1,
Capacity, etc.). You are strongly advised to use the format of the NOFA
as an outline for discussion of your rating factors. The overall
response to the rating factors must not exceed a total of 25 pages
including all rating factors (single-sided, single-spaced, 12 point
standard font, \3/4\-inch margins). Any pages in excess of this limit
will not be read.
3. The score for each rating factor will be based on the rating
factor's numbered portion of your narrative statement, supplemented by
materials referenced and discussed in that portion of your narrative
statement. Information relative to a given rating factor must be
contained in the narrative for that rating factor. If it is found in
another rating factor, it will not be considered. In addition,
supplemental material that is not referenced and discussed within the
narrative statements will not be rated.

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4. The position descriptions and resumes, if available, of your
project director and project manager and up to three additional key
personnel (in accordance with Rating Factor 1), not to exceed 2 pages
each (single-spaced, 12-point font with \3/4\-inch margins). This
information will not be counted toward the page limit.
5. Any attachments, materials, references, or other relevant
information that directly support the narrative must not exceed 20
pages for your entire application. Any pages in excess of this limit
will not be read. See the General Section for instructions for
submitting third party documents or material not readily available in
electronic format.
6. A detailed budget with supporting justification for all budget
categories of your funding request, in accordance with Rating Factor 3,
(2)(b). This information will not be counted towards the page limits.
In completing the budget forms and justification, you should address
the following elements:
a. Direct Labor costs should include all full- and part-time staff
required for the planning and implementation phases of the project.
These costs should be based on full time equivalent (FTE) or hours per
year (hours/year) (i.e., one FTE equals 2,080 hours/year).
b. You should budget for three trips for two people to HUD
Headquarters in Washington, DC, assuming a 2-3 day stay.
c. A separate budget proposal should be provided for any sub-
recipients receiving more than 10 percent of the total federal budget
request.
d. You should be prepared to provide supporting documentation for
salaries and prices of materials and equipment upon request.
e. Organizations that have a federally negotiated indirect cost
rate should use that rate and the appropriate base. Other organizations
should submit their proposal with their suggested indirect rate. If
they are funded and HUD is the cognizant agency, it will set a rate;
otherwise HUD will request the cognizant federal agency to set the rate.
f. You should submit a copy of the negotiated rate agreements for
fringe benefits and indirect costs, if applicable, as an attachment to
the budget sheets.
7. Applicants are encouraged to use the following checklist to
ensure that all required materials have been prepared and submitted.
You are not required to submit this checklist with your application.

Checklist for Healthy Homes Demonstration Program Applicants

? Applicant Abstract (limited to 2 pages).
? Rating Factor Responses (Total narrative response limited
to 25 pages).
1. Capacity of the Applicant and Relevant Organizational
Experience--Form HUD 96012.
2. Need/Extent of the Problem-Form HUD-96016.
3. Soundness of Approach.
4. Leveraging Resources--Form HUD-96015.
5. Achieving Results and Program Evaluation--Form HUD-96010 Logic
Model.
? Required materials in response to rating factors (does not
count towards 25-page limit).
Form SF 424 Application for Federal Assistance.
Form HUD-424-CB Grant Application Detailed Budget Work Sheet.
Form SF-424 Supplement Survey on Ensuring Equal Opportunity for
Applicants (to be completed by private nonprofit organizations only).
Form SF-LLL Disclosure of Lobbying Activities.
Form HUD-2880 Applicant/Recipient Disclosure/Update Report.
Form HUD-2990 Certification of Consistency with the RC/EZ/EC-II
Strategic Plan (if applicable).
Form HUD-96011 Facsimile Transmittal to be used as the cover page
for faxing third party information for electronic applications only.
See the General Section.
Resumes of Key Personnel (limited to 2 pages per resume).
Organizational Chart.
Letters of Commitment (if applicable).
Form HUD-2994-A You are Our Client Grant Applicant Survey (Optional).
? Optional material in support of the Rating Factors (20 page limit).

C. Submission Dates and Times

Electronic applications must be submitted and received and
validated by Grants.gov on or before 11:59:59 p.m. eastern time on June
7, 2006. All narrative files and any scanned documents must be
submitted as a zip file, single attachment to the electronic
application. Refer to the General Section for additional submission
requirements. Materials associated to your electronic application
submitted by facsimile transmission must also be received by 11:59:59
p.m. eastern time on the application submission date. Applicants
submitting a waiver from electronic submission must submit their
request at least 15 days before the application due date. If a waiver
request is approved, the applicant will receive instructions for
submitting the paper application. All paper applications must be
received at the appropriate HUD office(s) by the deadline date.

D. Intergovernmental Review

Not required for this submission.

E. Funding Restrictions

1. Administrative Costs. There is a 10% maximum allowance for
administrative costs. Additional information about allowable
administrative costs is provided in Appendix D of this NOFA at:
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
2. Purchase of Real Property is not permitted.
3. Purchase or lease of equipment having a per unit cost in excess
of $5,000 is not permitted, unless prior written approval is obtained
from HUD.
4. Medical costs are not permitted.
5. For-profit organizations cannot receive a fee or profit.
6. Applicants must comply with the Coastal Barrier Resources Act
(16 U.S.C. 3501).
7. Awardees may not use grant funds for hazard control of a
building or manufactured home that is located in an area identified by
the Federal Emergency Management Agency (FEMA) under the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4001-4128) as having special flood
hazards unless:
a. The community in which the area is situated is participating in
the National Flood Insurance Program in accordance with the applicable
regulations (44 CFR parts 59-79), or less than a year has passed since
FEMA notification regarding these hazards; and
b. Where the community is participating in the National Flood
Insurance Program, flood insurance on the property is obtained in
accordance with section 102(a) of the Flood Disaster Protection Act (42
U.S.C. 4012a(a)). You are responsible for assuring that flood insurance
is obtained and maintained for the appropriate amount and term.

F. Other Submission Requirements

HUD requires applicants to submit applications electronically
through http://www.grants.gov unless you request and are granted a
waiver to the electronic submission requirements. See the General Section.

V. Application Review Information

A. Criteria

1. Rating and Ranking
Applications will be reviewed by an Application Review Panel (ARP)
which will assign each application a numerical

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score based on the rating factors presented below. The ARP chairperson
initially selects and provides at least one application to panel
members to score during a calibration round to ensure that all panel
members are consistent in their interpretation of the rating factors.
When the calibration round is completed, each application is reviewed
and scored by at least two panel members who will assign a score based
on the rating factors. Each factor is weighted as indicated by the
number of points that are attainable for it. An average score is then
computed for each application. The ARP chair may call upon an advisor
to the ARP to review and comment on a proposal; however, the advisor
does not score the application. Nonetheless, advisor comments will be
documented and retained as a part of the record. The ARP holds a final
meeting to identify the top-ranking applications to be recommended for
funding. Awards will be made separately in rank order within the limits
of funding availability. The maximum score that can be assigned to an
application is 102 points.
Applicants are eligible to receive up to two bonus points for
projects located within federally designated Renewable Communities
(RCs), Empowerment Zones (EZs), or Enterprise Communities (ECs)
designated by USDA in round II (EC-IIs) (collectively referred to as
RC/EZ/EC-IIs), and which will serve the residents of these communities
(see the General Section). In order to be eligible for the bonus
points, applicants must submit a completed Form HUD-2990.
2. Rating Factors
The factors for rating and ranking applicants, and maximum points
for each factor, are provided below. Applicants should be certain that
these factors are adequately addressed in the narrative relevant to the
rating factors and the accompanying materials. Please refer to the
guide to Scoring of Rating Factors at: http://www.hud.gov/offices/
adm/grants/fundsavail.cfm/offices/adm/grants/fundsavail.cfm.
a. Rating Factor 1: Capacity of the Applicant and Relevant
Organizational Experience (15 Points). This factor addresses your
organizational capacity necessary to successfully implement your
proposed activities in a timely manner. The rating of you or your staff
includes any grassroots community-based nonprofit organizations,
including faith-based organizations, sub-contractors, consultants, sub-
recipients, and members of consortia that are firmly committed to your
project. HUD strongly encourages the formation and development of
consortia in implementing your project goals. Applicants that either
are or propose to partner, fund, or sub-contract with grassroots
community-based nonprofit organizations, including faith-based
organizations, in conducting their work programs will receive higher
rating points as specified in the General Section. In rating this
factor, HUD will consider the four items listed below.
(1) Capacity and Qualifications of Principal Investigator and Key
Personnel. (6 points). Describe your recent, relevant, and successful
demonstrated experience in undertaking eligible program activities.
Describe the knowledge and experience of the proposed overall project
director and day-to-day project manager in planning and managing large
and complex interdisciplinary programs, especially those involving
housing, public health, or environmental programs. Include information
on your project staff, their experience with housing and health
programs, percentage commitment to the project, and position titles.
Project directors should make a time commitment of at least 20% and
project manager's time commitment should be at least 50%. Resumes of up
to two pages each and position descriptions for up to three key
personnel in addition to the project director and project manager, and
a clearly delineated organizational chart for the Healthy Homes project
you propose, must be included in your application submission. Position
descriptions and copies of job announcements (including salary range,
percent time commitment, specifying percentage covered by the grant)
should be included for any key positions that are currently vacant or
contingent upon an award. Document that you have sufficient personnel,
or will be able to quickly retain qualified personnel to begin your
project immediately, and to perform activities in a timely and
effective fashion. Successful applicants must hire all key staff
positions identified in the proposal as vacant or required in the award
agreement within 120 days of award. Describe how principal components
of your organization will participate in, or support, your project.
(2) Qualifications of Applicant and Partner Organizations (4
points). Include names, descriptions of the experience and
qualifications of subcontractors. Document how you propose to
coordinate with and monitor sub-contractors, including frequency of
meetings, on site inspections and submission of formal monthly or
quarterly reports. Discuss your communication and coordination with
partners, including partner responsibilities, meeting frequency, etc.
If partners are community-based grassroots, non-profit organizations,
including faith-based organizations, include documentation
demonstrating their community-based grassroots status, such as
organizational profile, 501(c)(3) status, Social Services budget.
(Lengthy documents are not required. Face pages or extracted relevant
text is adequate.)
(3) Past Performance of the Organization (5 points). This section
refers to applicants who have any prior experience in another Healthy
Homes or Lead Hazard Control grant, another grant related to
environmental health and safety issues, or other experience in a
similar program. Provide details about the nature of the project, the
funding agency, and your performance, relative to performance measures
and the achievement of desired housing- and health-related outcomes. If
your organization is an existing Healthy Homes grantee, provide a
description of the progress and outcomes achieved in that grant.
Current grantees that are on or ahead of target may earn one point
based on their demonstrated ability to date. If you received previous
Healthy Homes Demonstration funding, you will be evaluated in terms of
cumulative progress and achievements under the previous grant.
You must complete and submit the Factor 1, Table 1, posted at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm, to support narrative
information. This table in supporting materials for your application.
It will not be counted towards your page limit.
b. Rating Factor 2: Need/Extent of the Problem (15 Points). This
factor addresses the extent for your proposed activities to document
healthy homes and housing-related hazards in your target area(s) and
target group(s).
(1) Target Area for Proposed Activities (5 points). Specifically
identify a target area for your proposed activities. Document a
critical level of need for your proposed activities in this target area
by providing data documenting targeted groups that are traditionally
underserved or have special needs. For a maximum score, data provided
should specifically represent the target area, rather than general
statistics or information pertinent to a larger geographic area. If
specific statistics are not available, discuss why this is the case.
HUD will award two bonus points to each application that includes a
valid Form HUD 2990 certifying that the activities/projects in the
application are consistent with the strategic plan for an empowerment
zone (EZ) designated by

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HUD or the United States Department of Agriculture (USDA), the tax
incentive utilization plan for an urban or rural renewal community
designated by HUD (RC), or the strategic plan for an enterprise
community designated in round II by USDA (EZ-II), and that the proposed
activities/projects will be located within the RC/EZ/EC-II identified
above and are intended to serve the residents.
(2) Link to Housing based Health Hazard (10 points). Your
documentation should summarize available data linking housing-based
health hazards to disease or injuries to children in your target area.
Examples of data that might be used to demonstrate need include:
(a) Economic and demographic data (3 points) including poverty and
unemployment rates and the number and percentage of low- and very low-
income families with incomes less than 50 percent and 80 percent of the
median income, respectively, as determined by HUD, for the area.
Statistics that describe low- and very-low income families are
available at: http://factfinder.census.gov/home/saff/main.HTML?lang=en.
Applicants should also consult local data sources, such as city
government web sites, for target area data.
(b) Rates of childhood illnesses (4 points) (e.g., asthma, elevated
blood lead levels) or injuries (e.g., falls, burns) among children
residing in your target areas that could be caused or exacerbated by
exposure to conditions in the home environment; and
(c) The age and condition of housing (3 points). In responding,
provide data available in your jurisdiction's currently approved
Consolidated Plan and the Analysis of Impediments to Fair Housing
Choice (AI) or Indian Housing Plan or derived from current census data
or from other sources of comparable quality.
c. Rating Factor 3: Soundness of Approach (50 Points). (1) Approach
for Implementing the Project (36 points). HUD is interested in
comparability among the Healthy Homes Programs, in order to further
standardize outcomes and performance measures. As a result, we have
provided at http://www.hud.gov/offices/adm/grants/fundsavail.cfm/
offices/adm/grants/fundsavail.cfm, a standardized approach for
implementing home remediations. Applicants are encouraged to use this
model for carrying out your project activities and designing and
implementing your work plan.
(a) Project Approach (3 points). Describe your approach to
implement your proposed project. In particular describe the methods,
schedule and milestones that will be used to identify and control
housing-based health hazards and to achieve the desired improvements in
the health of the families you serve. Include summary information about
the estimated numbers of clients to be contacted, clients enrolled,
units to be assessed, units to receive remediations, individuals to be
trained, and individuals or groups that will be reached through
education or outreach activities. Health outcome measures, such as
pediatric asthma hospitalizations, emergency room visits for asthma,
falls, burns, etc., should be documented to the extent possible. The
use of tables to describe schedule, milestones and summary data is
encouraged.
(b) Start up (4 Points). (i) Describe the process you intend to
follow for obtaining IRB approval and HIPAA Authorization, if
necessary. In particular, identify the organization that will review
your project and provide a timeframe.
(ii) Provide detailed information regarding how program staff and,
where applicable, partnering organizations will be trained in the
disciplines needed to successfully implement your project (e.g.,
resident education, assessments and remediations). Include an outline
of training curricula, a description of qualifications of trainers, and
describe how individuals or groups to be trained will be selected.
(iii) If you are proposing to conduct a study or intervention that
includes a significant level of community interaction (e.g., resident
recruitment, home-based remediations, data collection, environmental
sampling on private property) describe your plan for meaningful
involvement of the affected community in your proposed study. You
should define the community of interest with respect to your proposed
project and discuss why your proposed approach to community involvement
will make a meaningful contribution to your project and to the community.
(iv) Describe any proposed involvement of grassroots community-
based, nonprofit organizations, including faith-based organizations, in
the proposed activities including the development of consortia. These
activities may include outreach, community education, marketing,
inspection, and housing evaluations and remediations.
(c) Outreach and Recruitment (7 Points). (i) Describe how you will
identify, select, prioritize, and enroll units of housing in which you
will undertake housing-based health hazard remediations, targeting low-
income families with young children under the age of six (72 months) to
the extent feasible.
(ii) Describe measures you will perform to sustain recruitment,
including incentives, and the staff responsible for both monitoring
recruitment status and implementing the measures identified to sustain
recruitment.
(iii) Discuss possible recruitment problems, impediments that you
anticipate, probability of dropouts and plans to over-recruit to
compensate for dropouts.
(iv) Discuss strategies to address the effect of the Health
Insurance Portability and Accountability Act (HIPAA) on your
recruitment, if applicable.
(v) Describe how you will provide appropriate program information
and gain informed consent from the subjects, their parents and
guardians, as applicable. Describe how you will ensure that
participants understand and consent to the elements of the program such
as the purposes, benefits and risks of the research activities.
(vi) Describe your proposed methods to reach high-risk groups and
communities, vulnerable populations and persons traditionally underserved.
(vii) Describe how you will affirmatively further fair housing,
which would include, but not be limited to: Affirmative marketing of
the program to those least likely to apply based on race, color, sex,
familial status, national origin, religion, or disability, (especially
when persons in these demographic groups are generally not served by
the grassroots community-based, nonprofit organizations, including
faith-based organizations or other partner organizations); providing
materials in alternative formats for persons with disabilities;
providing materials in languages other than English for individuals
with limited English proficiency and their families; assuring long-term
residency by families currently living in the community; and assuring
that priority for treated units go to those who need the features
(treatment) of the unit.
(d) Unit Assessments, Occupant Health Surveys and Medical Referrals
(3 Points). (i) Describe the assessment tools your project will employ
to establish baseline data for unit condition, knowledge of program
participant and/or the health of the occupant(s). These tools include
questionnaires, visual assessment protocols and environmental sampling
and analysis.
(ii) Describe your process for evaluating units of housing in which
you will undertake housing-based

[[Page 11866]]

health hazard remediations. Provide the estimated total number of
owner-occupied and/or rental units in which you will perform
assessments and conduct remediations.
(iii) Describe the process to be followed for referring children
for medical case management when needed. Describe the organizations
that will be involved in this process and their prior experience
serving the target population(s).
(e) Remediations (7 Points). (i) Describe your process for the
development of work specifications for the selected physical remediations.
(ii) Discuss your process to select and obtain contractors for
conducting remediations in selected units and provide details about the
competitive bidding process.
(iii) Discuss efforts to incorporate cost-effective methods to
address multiple environmental health and safety hazards, and describe
the specific remediations you will employ to control housing-based
health hazards before children are affected; and/or to control these
hazards in units where children have already been treated for illnesses
or injuries associated with housing-based health hazards (e.g., burns,
lead poisoning, asthma). In your budget submission, provide an estimate
of the cost of each intervention (material costs and labor costs
associated with installation) and an estimate of costs projected per unit.
(iv) Discuss how you will assure that the contractor will comply
with all applicable Federal regulations.
(v) Describe the financing strategy, including eligibility
requirements, terms, conditions, and amounts available, to be employed
for conducting housing remediations. You must discuss the way funds
will be administered (e.g., use of grants, deferred loans, forgivable
loans, other resources, private sector financing, etc.) as well as the
agency that will administer the process.
(vi) Describe your plan for the relocation of occupants of units
selected for intervention, if temporary relocation is necessary (see
Section VI, below). Address the use of safe houses and other housing
arrangements, storage of household goods, stipends, incentives, etc.,
and the source of funding for relocation.
(vii) Describe your plan for ensuring right of return and/or first
referral for occupants of units selected for intervention who have had
to move for intervention to occur.
(f) Community Education, Outreach and Capacity Building/Training (3
Points). (i) Describe your proposed methods for community and/or
targeted education and training. These should include community
awareness, education, training, and outreach programs that support your
work plan and are culturally sensitive and targeted appropriately.
Provide information about specific educational/outreach activities with
quantitative data (number of individuals to be reached, etc.) and a
description of the intended audience.
(ii) Discuss if Healthy Homes training programs will be expanded to
include public housing agencies or Tribally Designated Housing Entities
and other potential collaborators, such as grassroots community-based,
nonprofit organizations, including faith-based organizations, and if
so, your plan for doing this.
(g) HUD's Departmental Policy Priorities (6 Points). Indicate if,
and describe how, you will address any of HUD's departmental policy
priorities (see General Section). You will receive points for each of
the applicable FY 2006 policy priorities that are adequately addressed
in your application to a maximum of six points. Policy priorities that
are applicable to the Healthy Homes Demonstration NOFA are: (1)
Improving our Nation's Communities (focus on distressed communities);
(2) Providing Full and Equal Access to Grassroots Community-based,
Nonprofit Organizations, including Faith-based Organizations in HUD
Program Implementation; (3) Participation of Minority-Serving
Institutions in HUD Programs; (4) Removal of Regulatory Barriers to
Affordable Housing; and (5) Promoting Energy Efficiency and Energy
Star. HUD expects the applicant to implement Energy Star building
techniques and utilize Energy Star appliances whenever activities of
the grant afford the opportunity. For information on Energy Star
Programs and Appliances, see
http://oaspub.epa.gov/webi/meta_first_new2.try_these_first;
and energystar.gov.
Each policy priority is worth one point, except for policy priority
(4), Removal of Regulatory Barriers to Affordable Housing, which is
worth up to 2 points, provided the applicant responds to this policy
priority as described in this NOFA and submits the required
documentation as described in Form HUD 27300. Applicants may also
provide a URL website address where the documentation can be readily found.
(h) Economic Opportunity (3 points). To the greatest extent
feasible, your project should promote job training, employment, and
other economic opportunities for low-income and minority residents and
businesses which are owned by, and/or employ, low-income and minority
residents as defined in 24 CFR 135.5.
(i) Describe how you or your partners will comply with Section 3 of
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and
HUD's implementing rules at 24 CFR part 135 by:
(A) Providing training and employment opportunities for low- and
very low-income persons living within the awardee's jurisdiction, and
by
(B) Purchasing goods and supplies, or contracting for services from
businesses owned by low- and very low-income persons living within the
targeted jurisdiction; information about Section 3 requirements is
available at, http://www.hud.gov/offices/adm/grants/fundsavil.cfm;
(ii) Describe how your proposed project will provide opportunities
for self-sufficiency, particularly for persons enrolled in welfare-to-
work programs, or providing educational and job training opportunities;
and
(iii) Describe the extent to which your proposed activities will
occur within a federally designated Renewable Community (RC),
Empowerment Zone (EZ), or Enterprise Community designated by USDA in
round II (EC-II) as defined in the General Section.
(2) Approach for Managing the Project (9 points). Considering your
project goals and objectives, describe how you will manage the project.
Provide information on the general management approach including a
management plan that:
(a) Incorporates appropriate project objectives, major tasks/
activities, responsible entities, performance goals, and the process
that you will utilize to assign, track and monitor the performance of
major tasks and activities. (All specific activities necessary to
complete the proposed project must be included in the task.)
(b) Provides a schedule of milestones and deliverables for the
completion of major tasks and activities, and the delivery of interim
and final products.
(c) Discusses coordination with sub-recipients, partners and staff.
(d) Describes all quality assurance activities and associated
corrective actions.
(3) Budget Justification (5 points). HUD will not review any grant
application with an award request greater than $1,000,000. Your
proposed budget will be evaluated for the extent to which it is
reasonable, clearly justified, and consistent with the project
management plan and intended use of program funds. HUD is not required to

[[Page 11867]]

approve or fund all proposed activities. Your detailed budget should be
submitted using Form ``HUD-CBW.'' An electronic copy is available at:
http://www.grants.gov. You must thoroughly document and justify all budget
categories and costs and all major tasks for yourself, sub-recipients,
partners, major subcontractors, joint venture participants, or others
contributing resources to the project. Include a 2-page (maximum)
narrative that describes clearly and in detail your budgeted costs for
each required program element (major task) included in your overall
plan. (You may include this narrative along with the budget forms; it
will not count toward the 25-page limit.) Include a separate, detailed
budget for any sub-grantee who would receive 10% or more of the grant
funding.
d. Rating Factor 4: Leveraging Resources (5 Points). This factor
addresses your ability to secure other community resources (e.g.,
financing, supplies, or services) that can be combined with HUD's
resources to achieve project purposes. These community resources may be
contributions from organizations such as the applicant, partners, or
other organizations not directly involved in the project. Resources may
also be provided by state and local governmental entities.
(1) HUD will consider the extent to which you have developed
partnerships or consortia to secure additional resources to increase
the effectiveness of your proposed project. Describe how other
organizations will participate in or support your project. Resources
may include funding or in-kind contributions (e.g., labor, fringe
benefits, services, supplies, or equipment) budgeted for your proposed
project. Include in the narrative the details of the commitment, the
amount being leveraged, or if the commitment is in-kind, the specific
names, percent of time, supplies and other resources, and value of each
commitment.
(2) The signature of the authorized official on the Form SF-424
commits matching or other contributed resources of the applicant
organization. The applicant must obtain a letter of commitment from
each organization other than itself that is providing a match, whether
cash or in-kind. The letter must describe the contributed resource(s)
that will be used in your project and the dollar value of each
contribution. Staff and in-kind contributions should be given a market-
based monetary value. Each letter of commitment, memorandum of
understanding, or agreement to participate shall include the
organization's name and the proposed level of commitment and
responsibilities as they relate to the proposed project. The commitment
must be signed by an official legally able to make commitments on
behalf of the organization and dated prior to the deadline date for
this NOFA application.
(3) Include information to address the following elements. (i) The
extent to which you have coordinated your activities with other known
organizations that are not directly participating in your proposed work
activities, but with which you share common goals and objectives.
(A) Describe your plan for integrating and coordinating housing-
based health hazard interventions with other housing-related activities
(e.g., rehabilitation, weatherization, correction of code violations,
and other similar work).
(B) Describe your plans to generate and use public subsidies or
other resources, such as loan funds, to finance future interventions to
prevent and control housing-based health hazards, particularly in
families with children under the age of six years (72 months) living in
low- and very low-income housing.
(ii) The extent to which your project exhibits the potential to be
financially self-sustaining by decreasing dependence on federal funding
and relying more on state, local and private funding to continue
healthy homes activities after the funding period is completed.
Applicants are to complete the Factor 4 table, Leveraging Resources
that is posted at http://www.hud.gov/offices/adm/grants/fundsavail.cfm/offices/adm/
grants/fundsavail.cfm.
e. Rating Factor 5: Achieving Results and Program Evaluation (15
points). This rating factor reflects HUD's goal to embrace high
standards of ethics, management and accountability. HUD is committed to
ensuring that applicants keep promises made in their applications and
assess their performance to ensure that performance goals are met. In
your response to this rating factor, you are to discuss the performance
goals for your project, and identify specific outcome measures.
Identify and discuss the specific methods you will use to measure
progress towards your goals, track and report results of assessments
and remediations, and evaluate the effectiveness of remediations;
identify important project milestones (e.g., the end of specific phases
in a multi-phased project) and deliverables specific to your project
timeline; and identify milestones that are critical to achieving
project objectives (e.g., developing questionnaires or protocols,
hiring staff, recruitment of participants, and IRB approval and/or
HIPAA Authorization, if applicable); identify benchmarks such as number
of units that received intervention, percent of remediations that
occurred in high-risk communities, etc., that you will use to track the
progress of your project.
Identify how your project will be held accountable for meeting
project goals, objectives, and the actions undertaken in implementing
the program. Provide assurances that work plans and performance
measures developed for your project will be achieved in a timely and
cost-effective manner.
Your project should focus particular attention on identifying
specific resident, or program participant, health outcomes and describe
how these outcomes will be measured. Resident health outcomes do not
necessarily require medical testing, such as spirometry or documenting
blood lead levels, and may be assessed using questionnaires or other
tools. Careful attention should be given to the relationship between
the program's remediations (e.g., physical changes in the environment,
changes to cleaning protocols, in-home training or provision of
education materials) and the effect on resident health.
In evaluating Rating Factor 5, HUD will consider how you have
described the benefits and outcome measures of your program. HUD will
also consider the proposed objectives and performance objectives
relative to cost and achieving the purpose of the program, as well as
the evaluation plan, to ensure the project is on schedule and within budget.
You must complete and return the Form HUD-96010. HUD is moving to a
standardized ``Master'' Logic Model with drop down menus from which you
can select needs, activities, and outcomes appropriate to your program.
See the General Section for detailed information on use of the
``Master'' Logic Model. HUD is requiring grantees to use program-
specific questions to self-evaluate the management and performance of
their program. For FY2006, HUD is considering a new concept for the
Logic Model. The new concept is a Return on Investment statement. HUD
will be publishing a separate notice on the ROI concept. Training on
HUD's logic model will be provided via satellite broadcast.

[[Page 11868]]

B. Reviews and Selection Process

The review and selection process is provided in the General
Section. The General Section also provides the procedures for
correcting deficient applications.

VI. Award Administration Information

A. Award Notices

1. Applicants Selected for Award
Successful applicants will receive a letter from the Office of
Healthy Homes and Lead Hazard Control Grant Officer providing details
regarding the effective start date of the cooperative agreement and any
additional data and information to be submitted to execute a
cooperative agreement. This letter is not an authorization to begin
work or incur costs under the cooperative agreement or grant.
HUD may require that all the awardees participate in negotiations
to determine the specific terms of the cooperative agreement or grant
and budget. Should HUD not be able to successfully conclude
negotiations with a selected applicant, an award will not be made. If
the applicant accepts the terms and conditions of the cooperative
agreement, a signed cooperative agreement must be returned by the date
specified. Instructions on how to have the cooperative agreement
account entered into HUD's Line of Credit Control System (LOCCS)
payment system will be provided. Other forms and program requirements
will be provided. In accordance with OMB Circular A-133 (Audits of
States, Local Governments and Nonprofit Organizations), awardees will
have to submit their completed audit-reporting package along with the
Data Collection Form (SF-SAC) to the Single Audit Clearinghouse. The
address can be obtained from their Web site. The SF-SAC can be
downloaded at: http://harvester.census.gov/sac/.
2. Debriefing. The General Section provides the procedures for
applicants to request a debriefing.

B. Administrative and National Policy Requirements

1. Environmental Requirements
Under the Consolidated Appropriations Act, 2006, the provisions of
section 305(c) of the Multifamily Housing Property Disposition Reform
Act of 1994, implemented by HUD regulations at 24 CFR part 58,
``Environmental Review Procedures for Entities Assuming HUD
Environmental Responsibilities,'' are applicable to properties assisted
with Healthy Homes Demonstration Grant funds. In accordance with part
58, applicants under this NOFA that are States, units of general local
governments or Indian Tribes must act as the responsible entity and
assume the environmental review responsibilities for activities funded
under this NOFA. Other applicants must arrange for the unit of general
local government or Indian Tribe to act as the responsible entity.
Under 24 CFR 58.11, if a non-recipient responsible entity objects to
performing the environmental review, or if a recipient that is not a
responsible entity objects to the local or tribal government performing
the environmental review, HUD may designate another responsible entity
to perform the review or may perform the environmental review itself
under the provisions of 24 CFR part 50. Healthy Homes Demonstration
grant applicants and other participants in activities under this NOFA
may not undertake, or commit or expend federal or non-federal funds
(including HUD-leveraged or match funds) for housing interventions,
related rehabilitation or other physical activities until the
responsible entity completes an environmental review and the applicant
submits and obtains HUD approval of a request for release of funds and
the responsible entity's environmental certification in accordance with
part 58 (or until HUD has completed an environmental review under part
50). The results of environmental reviews on individual projects may
require that proposed activities be modified or proposed sites
rejected. For assistance, contact Karen Choi, the Office of Healthy
Homes and Lead Hazard Control Environmental Officer at (213) 534-2458
(this is not a toll-free number) or the HUD Environmental Review
Officer in the HUD Field Office serving your area. If you are a
hearing- or speech-impaired person, you may reach the telephone number
via TTY by calling the toll-free Federal Information Relay Service at
1-800-877-8339. Recipients of a cooperative agreement under this NOFA
will be given guidance in these responsibilities.
2. Executive Order 13202
``Preservation of Open Competition and Government Neutrality
Towards Government Contractors' Labor Relations on Federal and
Federally-Funded Construction Projects.'' See General Section for
information concerning this requirement.
3. Procurement of Recovered Materials
See the General Section for information concerning this requirement.
4. Relocation
Any person (including individuals, partnerships, corporations, or
associations) who moves from real property or moves personal property
from real property directly (1) because of a written notice to acquire
real property, in whole or in part, or (2) because of the acquisition
of the real property, in whole or in part, for a HUD-assisted activity,
is covered by federal relocation statutes and regulations.
Specifically, this type of move is covered by the acquisition policies
and procedures and the relocation requirements of the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970 (URA), as amended, and the implementing government wide regulation
at 49 CFR part 24. The relocation requirements of the URA and the
government wide regulations cover any person who moves permanently from
real property or moves personal property from real property directly
because of acquisition, rehabilitation or demolition for an activity
undertaken with HUD assistance. While the Healthy Homes Demonstration
Grant Program is not HUD assistance, the grantee must relocate families
to decent, safe and sanitary housing, and should use the URA as
guidance for doing so. If families or individuals are temporarily
relocated in a project which utilizes Community Development Block Grant
funds, the guidance and requirements of 24 CFR 570.606(b)(2)(i)(D)(1)-
(3) must be met. HUD recommends you review these regulations when
preparing your proposal. (They can be downloaded from the Government
Printing Office Web site at http://www.gpoaccess.gov/cfr/
by entering ``24 CFR 570.606'' in quotes without any spaces in the Quick
Search box.) See Section III.C of the General Section for additional
information about relocation.
5. Davis-Bacon Act
The Davis-Bacon Act does not apply to this program. However, if
program funds are used in conjunction with other federal programs in
which Davis-Bacon prevailing wage rates apply, then Davis-Bacon provisions
would apply to the extent required under the other federal programs.
6. Audit Requirements
Any grant recipient that spends $500,000 or more in federal
financial assistance in a single year must meet the audit requirements
established in 24 CFR part 84 or 85, as applicable, in accordance with
OMB Circular A-133.

[[Page 11869]]

C. Reporting

Successful applicants will be required to submit quarterly and
final program and financial reports according the requirements of the
Office of Healthy Homes and Lead Hazard Control. Specific guidance and
additional details will be provided to successful applicants. The
following items are a part of OHHLHC reporting requirements.
1. Final Work Plan and Budget are due prior to the effective start
of the cooperative agreement.
2. Quality Assurance Plan (QAP). Successful Healthy Homes
Demonstration applicants that will be collecting housing, demographic
or environmental data in a formalized manner for use in assessing
effectiveness of the approaches being demonstrated under the
cooperative agreement or grant will be required to submit a Quality
Assurance Plan (QAP) to HUD prior to initiating work under the
cooperative agreement or grant. This is a streamlined version of the
format used by some other federal agencies, and is intended to help
ensure the accuracy and validity of the data that you will collect
under the cooperative agreement or grant. (See the HUD Office of
Healthy Homes and Lead Hazard Control's Internet site, http://www.hud.gov/
offices/lead, for the QAP template). Your proposed project activities
should include developing this QAP. The QAP will be submitted to HUD as
a part of your work plan.3. Progress reports are due on a quarterly
basis. Project benchmarks and milestones will be tracked using a
benchmark spreadsheet that uses the benchmarks and milestones
identified in the Logic Model form (HUD-96010) approved and
incorporated into your award agreement. For specific reporting
requirements, see policy guidance: http://www.hud.gov/offices/lead.
4. A final report is due at the end of the project period, which
includes final project benchmarks and milestones achieved against the
proposed benchmarks and milestones in the Logic Model (HUD-96010)
approved and incorporated into your award agreement. Specific
information on all reporting requirements will be provided to
successful applicants.
5. Racial and Ethnic Beneficiary Data. HUD does not require Healthy
Homes Demonstration Grantees to report ethnic and racial beneficiary
data as part of their initial application package. However, such data
must be reported on an annual basis, at a minimum, during the
implementation of your cooperative agreement. You must use the Office
of Management and Budget's Standards for the Collection of Racial and
Ethnic Data to report these data, using Form HUD-27061, Racial and
Ethnic Data Reporting Form, found on http://www.grants.gov,
along with instructions for its use.

VII. Agency Contacts

For questions related to the application process, you may contact
the Grants.gov helpline at 800-518-GRANTS. For programmatic questions,
you may contact by writing: Emily Williams, Director; Healthy Homes
Division; Department of Housing and Urban Development; Office of
Healthy Homes and Lead Hazard Control; 451 Seventh Street, SW., Room
P3206; Washington, DC 20410-3000; or by telephone by calling (336) 547-
4002, extension 2067 (this is not a toll-free number); or via e-mail
at: Emily_E._Williams@hud.gov. For administrative questions, you may
contact Curtissa L. Coleman, Grants Officer, at the address above or by
telephone at: (202) 755-1785, extension 7580 (this is not a toll-free
number) or via e-mail at: Curtissa_L._Coleman@hud.gov. If you are
hearing or speech-impaired, you may reach the above telephone numbers
via TTY by calling the toll-free Federal Information Relay Service at
800-877-8339.

VIII. Other Information

A. HUD Reform Act

The provisions of the HUD Reform Act of 1989 that apply to this
NOFA are discussed in the General Section. Refer to the General Section
for details regarding other information on submitting a complete
application that meets HUD requirements. For additional general,
technical, and program information pertaining to the Office of Healthy
Homes and Lead Hazard Control, visit: http://www.hud.gov/healthyhomes.

B. Paperwork Reduction Act

The information collection requirements contained in this document
have been approved by the Office of Management and Budget (OMB) under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned
OMB control number 2539-0015. In accordance with the Paperwork
Reduction Act, HUD may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless the
collection displays a currently valid OMB control number. Public
reporting burden for the collection of information is estimated to
average 80 hours per annum per respondent for the application and grant
administration. This includes the time for collecting, reviewing, and
reporting the data for the application, semi-annual reports, and final
report. The information will be used for awardee selection and
monitoring the administration of funds. Response to this request for
information is required in order to receive the benefits to be derived.

BILLING CODE 4210-01-P

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Brownfields Economic Development Initiative (BEDI)

Overview Information

A. Federal Agency Name: Department of Housing and Urban
Development, Office of Community Planning and Development.
B. Funding Opportunity Title: Brownfields Economic Development
Initiative.
C. Announcement Type: Initial announcement.
D. Funding Opportunity Number: The Federal Register number is FR-
5030-N-14. The OMB approval number is 2506-0153.
E. Catalog of Federal Domestic Assistance (CFDA) Number(s):
Brownfields Economic Development Initiative (BEDI), 14.246.
F. Dates: The application deadline date is June 14, 2006.
Applications must be received and validated by http://www.grants.gov
no later than 11:59:59 p.m. on the application deadline date. Please
see the General Section for information on electronic deadline and
timeliness requirements.
G. Optional, Additional Overview Content Information: 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 and to return those sites to productive, economic
reuse. All BEDI grants must be used in conjunction with a new Section
108-guaranteed loan commitment.
HUD encourages brownfields economic development projects that
propose the redevelopment of a brownfield site through new investments
by identified private sector parties in addition to BEDI/Section 108
financing and that will directly result in new business or job
creation, increases in the local tax base or other near-term,
measurable economic benefits.
Those interested in applying for funding under this program should
review carefully the General Section and the following additional
information.

Full Text of Announcement

I. Funding Opportunity Description

A. Authority

BEDI is authorized pursuant to Section 108(q), Title I, Housing and
Community Development Act of 1974, as amended, (42 U.S.C. 5301); 24 CFR
part 570.

B. Program Description

BEDI is designed to help local governments redevelop brownfields,
defined in this NOFA 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. 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 Community Development Block Grant (CDBG) program
(specifically, the Entitlement and State programs, certain
jurisdictions in the state of Hawaii under the Small Cities program,
and the insular areas of Guam, American Samoa, the Northern Mariana
Islands, and the Virgin Islands). A local government may re-loan the
Section 108 loan proceeds and provide BEDI funds to a business or other
public entity eligible to carry out a specific approved brownfields
economic development project, or the public entity may carry out the
eligible project itself. In either case, BEDI grant funds and the Section
108 proceeds must be used to support the same eligible BEDI project.
Under this program, CDBG entitlement and non-entitlement grantees
(and states for state-assisted non-entitlement jurisdictions) pledge
their continuing CDBG allocations as security for the Section 108 loans
guaranteed by HUD. BEDI grant funds are intended to reduce grantees'
potential loss of future CDBG allocations by:
1. 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);
2. Directly enhancing the security of the Section 108-guaranteed
loan; or
3. Employing a combination of these or other risk mitigation
techniques.
BEDI funds must be used as the stimulus for local governments and/
or private sector parties to commence redevelopment or continue phased
redevelopment efforts of 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 that will provide near-term results and
measurable economic benefits, such as job creation and increases in the
local tax base.

C. Program Definitions

Unless otherwise defined herein, terms defined in this NOFA shall
have the same respective meanings as provided for in 24 CFR part 570.
Act means Title I Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.).
Application means a single set of documents, including a request
for Section 108 loan guarantee assistance, submitted by an eligible
applicant for BEDI grant funds, in accordance with the provisions of
this NOFA to finance a brownfields economic development project.
Section IV.B.1(c) of this NOFA provides additional information on the
nature and forms of Section 108 loan guarantee requests that must be
submitted to HUD along with each BEDI application.
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 NOFA
from any available appropriation.
Brownfields Economic Development Initiative (BEDI) project or
brownfields economic development project means a single activity, or a
group of activities constituting a planned, continuous, single
undertaking, that is eligible under Section 108(q) of the Act and under
24 CFR 570.703 and projected to create or retain businesses or jobs,
provide area or housing benefit to low- and moderate-income persons,
redevelop blighted areas or sites, or otherwise lead to measurable
economic benefits from redevelopment of one or more brownfields sites
within five years.
CDBG funds means those funds collectively so defined at 24 CFR
570.3, including grant funds received pursuant to Section 108(q) and
this NOFA.
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).

[[Page 11872]]

EPA means the U.S. Environmental Protection Agency.
Firm Commitment means either a written agreement or letter of
understanding by which an applicant 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; 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. Funds expended
prior to the submission of the BEDI application will not be considered
as firmly committed funds for purposes of this NOFA.
Additional information related to firm commitments of other
resources is provided in Section V.A.1 of this NOFA, Rating Factor 4
(Leveraging of Other Financial Resources). See Section IV.F.3.d. of the
General Section for instructions on how third party documents are to be
submitted electronically.
Showcase Community means an applicant chosen by the federal
government's Brownfields National Partnership for inclusion in the
federal government's Brownfields Showcase Communities program. A list
of the federally designated Brownfield Showcase Communities is provided
on the HUD website, at 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 parts 597, 598 or 599.

D. Program 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.
1. CDBG. The CDBG program provides grant funds by formula to local
governments (either directly or through states) to carry out community
and economic development activities ($3.7 billion appropriated in FY
2006). The Section 108 loan guarantee program provides CDBG-eligible
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 certain non-entitlement units of general
local government in the state of Hawaii funded under 24 CFR part 570,
subpart F. 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.
2. Section 108 Loan Guarantees. The loan guarantee authority for
the Section 108 program is estimated at $225 million including $135
million in loan guarantee authority for FY 2006 and loan guarantee
authority that is still available under the FY 2005 appropriation.
Under this program, communities (states and insular areas, as
applicable) are required to 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. Additional Security for Section 108 Loan Guarantees. Applicants
should be aware of the need to provide additional security for the
Section 108 loan guarantee pursuant to 24 CFR 570.705(b)(3). Although a
public entity (and the corresponding state for a state-assisted non-
entitlement entity) is required by the Act to pledge its current and
future CDBG allocations as security for the Section 108 loan guarantee,
it 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.
4. Integration of Other Government Economic Development and
Brownfields Programs. HUD encourages local governments which are
assisted by (a) other federal or state economic development programs,
(b) other federal brownfields programs (e.g., the federal Brownfields
Showcase Community program, EPA's Assessment, Revolving Loan Fund
Cleanup or Grant programs), or (c) state-supported brownfields
programs, 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, in Section V.A.1 of this NOFA
(e.g., ``Capacity of the Applicant,'' ``Soundness of Approach,'' or
``Leveraging Resources,''--Rating Factors 1, 3, and 4, respectively.)

II. Award Information

A. Available Funds

HUD has available approximately $10 million for grant awards under
this BEDI NOFA, consisting of $10 million through appropriations under
the FY2006 Consolidated Appropriations Act (Pub. L. 109-115, approved
December 1, 2005. These funds are authorized by Section 108(q) of the
Act (as described above). If any additional funds become available for
the BEDI program during FY2006, including through the deobligation and
recapture of previous BEDI awards, HUD may either fund additional
applicants in accordance with this NOFA, or may add these funds to
funds available for future competitions pursuant to Section 108(q) of
the Act.

B. Maximum Award

The maximum amount of a BEDI award under this competition is $1
million per project. An application in excess of $1 million will be
reduced to the extent HUD determines that such a reduction is
appropriate and the project remains feasible.

C. Limitations on Grant Amounts

1. Ratio of Section 108-Guaranteed Loan to BEDI Grant. HUD expects to

[[Page 11873]]

approve BEDI grant amounts for approvable applications with a range of
ratios of BEDI grant funds awarded to new Section 108-guaranteed loan
commitments for the same project, but the minimum ratio must be $1.00
of Section 108-guaranteed loan commitments for every $1.00 of BEDI
grant funds in order to receive consideration for funding. Section
V.A.1, Rating Factor 4 (Leveraging of Resources), provides additional
information on the required ratio of BEDI to Section 108 funds.
2. Reduction or Deobligation of BEDI Grant Award.
a. 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.
b. 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.
c. 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.B.1(c)(2) of this NOFA).
3. Increased Request for Section 108 Loan Guarantee Assistance. 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.B.1(c)(4)), the BEDI assistance
approved will be based only on the additional amount of Section 108
loan guarantee assistance requested.

III. Eligibility Information

A. Eligible Applicants

Any public entity eligible to apply for Section 108 loan guarantee
assistance in accordance with 24 CFR 570.702, including Guam, the
Northern Marianas, American Samoa, and the Virgin Islands for FY 2006,
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 part 570,
subpart F (which applies only to the state of Hawaii), applicants are
required to provide evidence in the BEDI application from an authorized
official of the state agency responsible for administering the State
CDBG program stating that it supports 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 must be provided by form HUD-40122, titled
``SECTION 108 LOAN GUARANTEE: State Certifications Related to Non-
entitlement Public Entities.'' This form may be downloaded as part of
the application package from the Internet at http://www.grants.gov/.
Non-entitlement public entities in 49 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. The non-
entitlement entities in Hawaii are able to make their own repayment
pledge since they now receive a fixed amount of annual CDBG funding.

B. Cost Sharing or Matching

As described further in Section V.A.1 of this NOFA, under Rating
Factor 4 (Leveraging of Resources), applications which evidence a
greater level of other funds firmly committed to the BEDI project will
receive more points under Rating Factor 4. In addition, a BEDI grant
must be used with at least an equal amount of Section 108 loan
guarantee proceeds for the same brownfields economic development project.

C. Program Threshold Requirements

1. Eligible Activities and National Objectives
a. Applicants for BEDI grant funds and Section 108 loan guarantee
funds must demonstrate that funds will be used for activities listed at
24 CFR 570.703 and carried out as part of a BEDI project as defined in
this NOFA and meet the CDBG requirements at 24 CFR Sections 570.200,
570.208 and 570.209, as applicable. All applicants must clearly
identify in their narrative response to Rating Factor 3 (Soundness of
Approach) in Section V.A.1 of this NOFA each of the eligible activities
that will be carried out under 24 CFR 570.703.
With respect to BEDI projects that include a housing component,
applicants are cautioned that the eligible activities at 24 CFR 570.703
do not allow BEDI and Section 108 funds to be used to finance the costs
of the construction of housing, unless such construction is undertaken
by a Community Based Development Organization (CBDO) or a not-for-
profit organization serving the development needs of a community in a
non-entitlement area as part of a community economic development
project, in accordance with 24 CFR 570.703(i)(2) and 24 CFR
570.204(a)(2). Provisions of 24 CFR 570.703(j) that authorized the use
of BEDI or Section 108 funds for housing construction have expired and
are no longer applicable, as the statute referenced therein is no
longer in effect. For projects that include the construction of
housing, BEDI and Section 108 funds may be used to finance activities
necessary to construct such housing, such as acquisition and related
demolition and clearance on the acquired site, site improvements,
public facilities and other eligible activities subject to each of the
eligible activity provisions at 24 CFR 570.703; and
b. Applicants must demonstrate that each activity assisted with
Section 108 loan guarantee or BEDI funds will meet a national objective
of the CDBG program as described in 24 CFR 570.208. All applicants must
clearly identify in their narrative response to Rating Factor 3
(Soundness of Approach) in Section V.A.1 of this NOFA, 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.
c. 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 NOFA, 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 24 CFR 570.484

[[Page 11874]]

in the case of a recipient under a state's program, requiring that,
over the period of time specified in the applicant's (or State's) CDBG
certification, not less than 70 percent of the aggregate expenditures
of CDBG funds be expended for activities benefiting low- and moderate-
income persons under the criteria of 24 CFR 570.208(a) or 570.208(d)(5)
or (6).
2. Brownfields Redevelopment
As described further in Section V.A.1 of this NOFA, in the
narrative response to Rating Factor 3 (Soundness of Approach)
applicants must: (1) Describe the nature and extent of the brownfields
problem(s) actually or potentially affecting the site and/or
structure(s) already on the site; and (2) how the proposed activities
will contribute to redevelopment of the site and/or structures.
3. General Section Threshold Requirements
a. Applicants should carefully review the threshold requirements
found in Section III.C of the General Section that could result in the
failure to receive funding under this program. Applicants for BEDI
grant funds must comply with the statutory, regulatory, threshold, and
public policy requirements listed in the General Section, except as
otherwise specifically provided in this NOFA. In particular, applicants
should carefully review those provisions that could result in the
failure to receive funding, including the DUNS Number Requirement,
Compliance with Fair Housing and Civil Rights Laws, provisions relating
to Delinquent Federal Debts, and the Name Check Review.
b. The Dun and Bradstreet Universal Numbering System (DUNS) Number
Requirement. Refer to the General Section for information regarding the
DUNS requirement. You will need to obtain a DUNS number to receive an
award from HUD. You will also need a DUNS number to complete your
electronic application as it is a mandatory field on the electronic
application. The Grants.gov registration also requires use of the DUNS
number, and Grants.gov registration.
c. The maximum number of points to be awarded under this NOFA is
104. To be eligible for funding, a BEDI application must obtain a total
score of at least 75 points. All applications meeting program and
General Section threshold requirements will be rated under the
selection criteria provided in Section V.A.1 below.
4. Other Program Requirements
a. BEDI Funding Request. A single BEDI application must contain a
request for funds for a single BEDI/108 project. The application must
propose activities expected to result in redevelopment of one or more
brownfields sites. 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.
b. Related Section 108 Loan Guarantee Request. The request for
Section 108 Loan Guarantee assistance must provide for a minimum ratio
of $1.00 of requested Section 108 loan guarantee commitments for every
$1.00 of BEDI grant funds requested, or a higher ratio, as needed for
the project.
c. Nonentitlement Applications. Applications submitted by
nonentitlement public entities (except for those in Hawaii and the
insular areas which now receive fixed amounts of CDBG funds annually)
must provide for the state or commonwealth's certification agreeing to
pledge its CDBG allocations to receive funding consideration, as
evidenced by form HUD-40122. See the General Section instructions for
submission of third party documents.
d. Narrative Response to Rating Factors. Each BEDI application must
provide narrative statements in response to each of the rating factors
below in Section V.A.1 of this NOFA.
e. Time Frame for Submission of Section 108 Applications. All
applications for Section 108 Loan Guarantee Assistance required for
approved BEDI projects must be submitted within 60 days of written
notice of BEDI selection, as provided for in Section IV.B.1(c)(2) of
this NOFA.
f. HUD Environmental Requirements. Beginning with the submission of
a BEDI application through 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. This
includes limitations on the commitment of HUD and non-HUD funds by the
BEDI grantee and Section 108 public entity, as well as other
participants in the development process, prior to the completion of
environmental review, notification, and release of funds. Neither grant
nor loan funds can be disbursed 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.
g. Compliance with Environmental and Other Laws. 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 and regulations, 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 accordance with applicable law, including voluntary
clean up programs.
h. CDBG Program Regulations. In addition to 24 CFR 570.701
(Definitions), 570.702 (Eligible applicants), and 570.703 (Eligible
activities), the CDBG regulatory requirements cited in 24 CFR 570.707,
including subparts J (Grant Administration), K (Other Program
Requirements), and O (Performance Reviews), also govern the use of BEDI
funds, as applicable.
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 in Section V.A.1 of this
NOFA, under Rating Factor 3, subfactor (1)(b). 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; furthering 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.
j. Policy Priorities. Applicants are reminded of the Department's
Policy Priorities for FY 2006 found in Section V.B. of the General
Section, several of which apply to this NOFA, as described

[[Page 11875]]

in Section V.A.1 below, under Rating Factor 5 (Achieving Results and
Program Evaluation).
k. Ineligible Sites. Applicants must propose sites that currently
meet the definition of brownfields in this program section. 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. In
order to be eligible to receive an award under this program, applicants
will be required in Section V.A.1, Rating Factor 3, Soundness of
Approach, to indicate that the proposed BEDI project will not be
undertaken at an ineligible site as provided herein.
l. Prior Approved Section 108--Guaranteed Loans. 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, unless the applicant requests to deobligate
previously approved commitment authority as provided in Section
IV.B.1(c)(5) of this NOFA. In no event, however, may a previously
approved Section 108 commitment to be used with a prior BEDI or EDI
award be subject to such deobligation. In an instance where a pending
application for Section 108 assistance is to be leveraged by the
proposed BEDI grant, 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.
m. Use of Section 108 Solely for Security. A BEDI award will not be
made if the Section 108 request contained in the application (See
Section IV.B.1(c) of this NOFA) calls for the use of the Section 108-
guaranteed obligation solely as security for other financing on the
project.

IV. Application and Submission Information

A. Addresses To Request Application Package

1. Copies of the published NOFAs and application forms for HUD
programs announced through NOFA may be downloaded from the Grants.gov
Web site at http://www.grants.gov/Find; if you have
difficulty accessing the information you may receive customer support from
Grants.gov by calling their Support Desk at (800) 518-GRANTS, or
sending an e-mail to support@grants.govsupport@grants.gov. The
operators will assist you in accessing the information. The hours of
the Support Desk are 7 a.m. to 9 p.m. Eastern time.
2. Satellite Broadcasts. HUD will hold informational broadcasts via
satellite for potential applicants to learn more about the BEDI program
and the preparation of BEDI application(s). For more information about
the date and time of the broadcast, consult the Web site
http://www.hud.gov.

B. Content and Form of Application Submission

1. Content of Application
A complete application for a BEDI grant under this NOFA must
contain the items listed below. The standard forms that are required
for the BEDI application can also be found in the General Section.
Applicants by signing the SF-424 are also agreeing to the
Certifications and Assurances found in the General Section and this
NOFA. Additional program forms, excluding such items as narratives or
letters, etc. also referred to as the ``non-standard forms'', HUD-40122
and HUD-40123, are included with this NOFA. All forms required for
application submission can be found in the application package and
instructions on http://www.grants.gov for the BEDI program.
a. Checklist and Submission Table of Contents indicating the
submission items included in the application can be found in Section
VIII, Appendix A, of this NOFA. Applicants are not required to submit
the Checklist but are encouraged to review it to ensure that they have
submitted a complete application.
b. EDI/BEDI/Section 108 Funding Eligibility Statement. A completed
EDI/BEDI/Section 108 Funding Eligibility Statement (Exhibit D of form
HUD-40123).
c. Request for Loan Guarantee Assistance. A request for loan
guarantee assistance under Section 108, with the project name clearly
identified (and the same name of the BEDI project being applied for),
as further described below. Full application requirements for the
Section 108 program are found at 24 CFR 570.704. Non-entitlement
applicants (except those in Hawaii and the insular areas) must
accompany this request with the State Certifications Related to
Nonentitlement Public Entities (form HUD-40122) in order to be
considered for BEDI funding.
The request for loan guarantee assistance may take any of the five
forms defined in paragraphs (1), (2), (3), (4), or (5) below.
Notwithstanding the form of the 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.1 of this NOFA.) Both the BEDI and
Section 108 funds must be used in conjunction with the same BEDI
project. Applicants are encouraged to consult with HUD's Financial
Management Division in Headquarters CPD, at (202) 708-1871, before
submission of 108 and/or BEDI applications if unsure of CDBG national
objectives, eligibility of activities, program benefits citations and
the tests thereof. The request for new Section 108 guarantee assistance
may be presented in any of the following ways:
(1) Concurrent Application Submitted Under Separate Cover. A
complete application for a new Section 108 loan guarantee(s), including
the documents listed at 24 CFR 570.704(b), submitted under separate
cover in accordance with the procedures in Section IV.F.3 below. Any
full application for loan guarantee assistance under Section 108 must
also be submitted to the appropriate HUD field office concurrently with
its submission to Headquarters. As described further in Section V.A.1,
in Rating Factor 3 (Soundness of Approach), two points will be awarded
for the submission of a full Section 108 loan guarantee application
with a BEDI application.
(2) Subsequent Application. 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 description
provided in the BEDI application must be sufficient to support the
basic eligibility of the proposed project and activities for Section
108 assistance. (See Section III.C.1 of this NOFA.)
(3) Pending, Unapproved Application. A request to use the BEDI
grant award in conjunction with a pending, unapproved Section 108 loan
guarantee

[[Page 11876]]

application. The request must identify the project name associated with
the pending application and the date of submission. Any proposed
amendment to the pending Section 108 application must be submitted
under separate cover, as provided for in Section IV.F.3 below. An
applicant's request to use the BEDI award in conjunction with a pending
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.
(4) Increase to a Project Assisted Under a Previously Approved
Application. A request for Section 108 loan guarantee assistance
(analogous to Section IV.B.1(c)(1) or (2) above of this section) may
propose new Section 108 guarantee assistance in addition to the amount
of Section 108 assistance for a project assisted under a previously
approved Section 108 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 NOFA.
(5) Deobligation of Previously Approved Section 108 Authority Plus
a New Request. A request to deobligate a previous commitment of Section
108 loan guarantee authority to the applicant that is no longer to be
used by the applicant (except for an amount required as a condition of
a previously approved BEDI or EDI award), combined with a new request
or application for Section 108 loan guarantee assistance. Such request
or application may be a full application as provided for in paragraph
(1) above, a request for 108 assistance submitted within 60 days as
provided for in paragraph (2) above, a pending unapproved application
as provided for in paragraph (3) above, or an increase to a project
assisted under a previously approved application as provided in
paragraph (4) above.
(6) In no event may a Section 108 loan guarantee amount that is
required to be used in conjunction with a previously approved BEDI or
EDI grant award as of the date of the submission of the application,
whether or not the Section 108 loan guarantee has been approved as of
the date of this NOFA, be used in conjunction with a new BEDI award
under this NOFA. 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 NOFA 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).
d. Narrative Responses to Factors for Award (not to exceed 15
double-spaced, 8\1/2\ x 11 inch single-sided pages, with one-inch
margins on all sides, for all responses):
(1) Rating Factor 1: Capacity and Relevant Organizational
Experience. Provide a narrative indicating the capacity of the
applicant's organization and staff and any known 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 Exhibit A of form HUD-40123. (See the General Section for
instructions for submitting documentation found in the download
instructions.)
(3) Rating Factor 3: Soundness of Approach. Include the CDBG
eligible activities, the CDBG National Objective, the source and nature
of the present or potential environmental contamination, the budget,
and the time frame for conducting activities and providing project
benefits to address the needs identified in Rating Factor 2 in the
narrative response, accompanied by Exhibits B and C of form HUD-40123.
(4) Rating Factor 4: Leveraging Resources. The response to this
factor should include any letters of firm commitment as defined in
Section I.C of this NOFA, and any evidence of financial capacity or
CDBG resolutions, as appropriate. Such letters, evidence or resolution
must be submitted under the procedures provided for in Section IV.F of
the General 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 (Form HUD-96010) and, if
applicable, form HUD-27300, relating to the removal of regulatory
barriers to affordable housing, with required documentation.
2. Forms, Certifications, and Assurances
a. In addition to any forms submitted in response to Section IV.B.1
above, the following forms and certifications must also be submitted in
accordance with the General Section and may be found in the General
Section:
(1) Application for Federal Assistance (SF-424);
(2) Applicant/Recipient Disclosure/Update Report, HUD-2880; and, if
applicable,
(3) Certification of Consistency With RC/EZ/EC-II Strategic Plan,
HUD-2990, if applicable;
(4) Certification of Consistency with the Consolidated Plan (HUD-
2991) if applicable;
(5) Disclosure of Lobbying Activities (SF-LLL); if applicable;
(6) Acknowledgement of Application Receipt (HUD-2993) (For use with
paper application submissions);
(7) You Are Our Client Grant Applicant Survey (HUD-2994-A)
(Optional);
(8) Program Outcome Logic Model (HUD-96010);
(9) Questionnaire for HUD's Initiative on Removal of Regulatory
Barriers (HUD-27300) with supporting documentation or URL references;
(10) Facsimile Transmittal (HUD-96011) (For use with electronic
applications to provide third-party letters and other documentation in
accordance with the instructions found in the General Section;
(11) Section 108 Loan Guarantee (State Certifications Related to
Non-entitlement Public Entities) (HUD-40122), if applicable, and
(12) Responses to BEDI Application Rating Factors (HUD-40123,
Exhibits A through D).

C. Submission Dates and Times

1. Application Submission Date
Applications submitted through http://www.grants.gov
must be received and validated by Grants.gov no later than 11:59:59 p.m.
Eastern time on the application deadline date. If an applicant receives
a waiver of the electronic application requirement, the paper
application must be received by the application deadline date. The
approval to submit a paper copy application will provide detailed
submission instructions. Please see the General Section for further
information on application submission and timely receipt requirements.
Be sure to provide a Project Name in Line 11 of the SF-424
(Application for Federal Assistance), and all references to the related
Section 108 application should use the same project title. Be sure to
complete the SF-424 cover page first and then download the rest of the
forms, as the information from the cover page will be pre-populated. In
addition a brief (one or two paragraph)

[[Page 11877]]

description of all the activities (not just those to be funded with
BEDI and 108 funds) comprising the proposed project should be provided,
preceding the narrative statements in response to the Rating Factors.
This project description does not count against the 15-page overall
limitation.
2. Proof of Timely Submission
Please see Section IVF. of the General Section for information
regarding proof of timely submission.

D. Intergovernmental Review

BEDI is not subject to the provisions of Executive Order 12372,
``Intergovernmental Review of Federal Programs.''

E. Funding Restrictions

1. Repayment of Section 108 Principal
The planned use of BEDI funds for the specific purpose of repayment
of the principal amount of a Section 108-guaranteed loan is not an
eligible activity under 24 CFR 570.703 and therefore should not be
proposed in a BEDI application. Under the ``debt service reserve''
eligible activity at 24 CFR 570.703(k), however, the planned use of a
limited amount of BEDI funds for the repayment of the principal of a
Section 108-guaranteed loan is permissible if justified and approved by
HUD under a particular application. Such a debt service reserve may be
justified in the context of a loan loss reserve set up to support a
``loan pool'' consisting of a number of smaller third party loans. For
example, the corresponding principal amount of the Section 108 loan
might be repaid from a debt service reserve when a third party loan
defaults and liquidation of security for the third party loan by or on
behalf of the Section 108 borrower/BEDI grantee does not yield enough
cash to redeem or defease the amount of Section 108 principal
corresponding to the defaulted third party loan. A debt service reserve
may also be proposed and set up in an amount reasonable to pay
principal and/or interest on a Section 108-guaranteed loan for a
limited period, such as the start up period for an assisted business,
or a construction period, when the cash flow resulting from the primary
Section 108 or BEDI-funded activity would not be sufficient to support
repayment. HUD requires the applicant to provide information sufficient
to support the reasonableness of the amount of a debt reserve in
relation to its purpose. For any Section 108- and BEDI-assisted
project, HUD will have rights under the Section 108 Contract for Loan
Guarantee Assistance to use undisbursed BEDI funds to make payment on,
or to defease, the Section 108 loan if HUD deems that action necessary
in order to avoid the need for HUD to make a payment under its Section
108 loan guarantee from non-CDBG funds.
2. Subordination of Section 108 Obligations
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. Remediation by Responsible Parties
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 under Rating Factor
3, Soundness of Approach, to indicate that the proposed BEDI project
will not be used to provide assistance.
4. Denial of Funding for Lack of Prior Performance
HUD may deny funding consideration to all applicants that fail to
submit a full and complete Section 108 loan application pursuant to 24
CFR 570.704(b) in connection with a prior award of BEDI or competitive
EDI grants on or before the application submission deadline under this
NOFA.

F. Other Submission Requirements

1. Application Submission and Receipt Procedure
HUD requires applicants to submit applications electronically
through http://www.grants.gov Applicants must submit their
applications electronically via the website http://www.grants.gov.
unless you request and are granted a waiver to the electronic
submission requirements. This site has easy to follow step-by-step
instructions that will enable you to apply for HUD assistance.
Please read the General Section carefully and completely for the
submission and receipt procedures for all applications because failure
to comply may disqualify your application.
2. Wavier of Electronic Submission Requirements
Please refer to Section IV.F of the General Section for
instructions on how to seek a waiver to the electronic submission
requirement.
3. Submission of Concurrent Section 108 Application Under Separate Cover
Applicants that apply via Grants.gov should submit the Section 108
Loan Guarantee application using the mailing instructions below.
a. The Section 108 Loan Guarantee application should have the
Project Title in Box 11 of the SF-424 as the related BEDI project.
b. Concurrent Section 108 Application deadline date. Applicants
choosing to submit a concurrent and complete Section 108 application as
provided for in Section IV.B.1(c) of this NOFA above, must be received
no later than the BEDI application deadline date, to the addresses
shown below, in order to receive points under Section V.A.1, Rating
Factor 3, of this NOFA.
The concurrent Section 108 application must be received no later
than 11:59:59 p.m. by the United States Postal Service in accordance
with the instructions in the General Section. The required number of
copies should be sent to the locations indicated below. If HUD receives
at least one completed concurrent Section 108 application at either HUD
Headquarters or the appropriate HUD Field Office, HUD will utilize the
complete application for its review purposes, provided it meets the
deadline and timely submission requirements.
c. Proof of Timely Submission. Proof of timely submission of a
concurrent Section 108 application shall be determined under the
provisions of the General Section related to mailed applications.
d. Address for Submitting Concurrent Section 108 Applications to
HUD Headquarters. Submit the concurrent Section 108 application to: HUD
Headquarters; Robert C. Weaver Federal Building; 451 Seventh Street,
SW., Room 7251; Washington, DC 20410, Attention: BEDI/Section 108
Application.
When submitting the concurrent Section 108 application, please
specify BEDI/Section 108 Application 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

[[Page 11878]]

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), and email address, if available.
e. Concurrent Section 108 Applications to HUD Field Offices. At the
same time the concurrent Section 108 application is 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. A listing of CPD Offices and mailing
addresses can be found on HUD's Web site at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
f. Concurrent Section 108 Application Submission Procedures. A
concurrent Section 108 application submitted pursuant to this NOFA
shall be subject to the application submission procedures for other
mailed applications provided for in Section IV.F of the General
Section. Subsequent and pending Section 108 applications are not
subject to the above submission procedures.

V. Application Review Information

A. Criteria

1. Factors for Award Used to Evaluate and Rate Applications
a. Response to Factors for Award. The applicant must provide in
narrative form responses to each of the rating factors below. 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. As part
of the application review, HUD reserves the right to contact its local
field offices for the purpose of verifying information submitted by the
applicant.
b. Responses to Rating Factors 1-5. Responses to Rating Factors 1-5
below shall not exceed 15 double-spaced, 8\1/2\ x 11 inch single-sided
pages, with one-inch margins on all sides, for all responses.
2. Rating Factors for Award
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
will include any subcontractors, consultants, and sub-recipients that
are firmly committed 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. In
addition to citing specific projects, outcomes, or accomplishments,
CDBG entitlement recipients must also indicate the extent to which the
applicant 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). All applicants must also identify any unresolved
monitoring or audit findings by HUD with respect to the applicant's
administration of HUD 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) If an applicant has received a federal Renewal Community/
Empowerment Zone/Enterprise Community designation (including Enhanced
Enterprise Community (EEC) designation), it must provide information on
the status of its capacity to achieve state and local commitments
identified in its local implementation plan, including maximizing the
federal tax benefits made available. 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-II; and
(d) An applicant that has previously received a BEDI or a
competitive 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
competitive 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.
If HUD has not applied the performance standard applicable to all
previous BEDI grantees referenced in Section III.C.1.(c), then for any
such previously funded BEDI or competitive 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 or
grant funds.
If any of the rating criteria listed under (a) through (d) above do
not apply to an application, the rating for this subfactor (1) shall be
based solely upon the other applicable criteria. If the applicant has
no prior relevant experience, the rating for this Factor shall be based
on the capacity of its partner(s), if any, as stated below.
(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 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, the 10 points
available under this subfactor (2) will be added to the 10 points
available under subfactor (1), with a maximum of 20 possible points
then available under subfactor (1).
Experience will be judged in terms of recent (i.e., within the past
5 years) and successful performance of activities

[[Page 11879]]

relevant to those proposed in the BEDI application. The more recent and
extensive the positive experience, 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 (15 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.
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.
In applying this Factor, HUD will consider current levels of
distress in the target area, as defined in standard geographic terms 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 to be served by the proposed project. HUD will also
consider the current levels of distress in the applicant public
entity's jurisdiction, if different from the target area. 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.
Notwithstanding the above, an applicant proposing a project to be
located outside the applicant's jurisdiction or the target area for
which benefits are 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 or
the applicant jurisdiction.
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 target area 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.
Applicants should provide data that address the following specific
indicators of distress:
(1) 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:
(a) A poverty rate in the target area that is less than the
national average, but that is greater than the rate for the applicant's
jurisdiction: (2 points);
(b) A poverty rate in the target area that is at least equal to,
but less than twice, the national average: (3 points);
(c) A poverty rate in the target area that is twice or more the
national average: (5 points).
(2) 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 subfactor as follows:
(a) An unemployment rate in the target area that is less than the
national average, but that is greater than the rate for the applicant's
jurisdiction: (2 points);
(b) An unemployment rate in the target area that is at least equal
to, but less than twice, the national average: (3 points);
(c) An unemployment rate in the target area that is twice or more
the national average: (5 points).
(3) 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 (3) should paint a
picture 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: Unemployment rates are estimated monthly for
counties, with a two-month lag by the Bureau of Labor Statistics, while
census tract unemployment rates are available through the 2000 U.S. Census;
Poverty rate: Poverty rates are provided through the 2000 U.S.
Census and are estimated every two years, with a three-year lag. Census
and other relevant data can be accessed through http://www.ffiec.gov/.
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.
Applications that do not propose the productive reuse of a specific,
identified site or sites and that do not result in near-term,
measurable economic benefits, such as projects that involve only the
preparation of a site for potential future reuse by an unidentified
party, or the capitalization of a loan pool for loans to unidentified
borrowers, will receive fewer points under this Factor. The
relationship between the proposed site or sites, the proposed eligible
activities and the 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 3 points). In response to this subfactor, the
applicant should describe:
(a) 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

[[Page 11880]]

and quantified explanation of this relationship;
(b) any unmet needs identified in the jurisdiction's Consolidated
Plan and pursuant to Section III.C.4(j) of this NOFA, 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. See Section III.C.4(j) of this NOFA for examples
of general affirmative fair housing actions that may be undertaken to
address a jurisdiction's Analysis of Impediments to Fair Housing
Choice; and
(c) the activities that will be carried out with the BEDI grant
funds, and the nature and extent of the brownfields problem(s) actually
or potentially affecting the site and/or structure(s) already on the
site. This response must also indicate that 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, and that the proposed brownfields site is not
ineligible, as provided in Section IV.E.4 of this NOFA. This
information relates to a threshold factor as well as a rating factor,
as described in Section III.C.2 of this NOFA. Applications that fail to
respond satisfactorily to this subfactor (c) shall not receive funding
consideration.
(2) Eligible Activities and CDBG National Objectives (Up to 8
points). The applicant must describe how the proposed uses of BEDI
funds will qualify as eligible activities under 24 CFR 570.703
governing the Section 108-guaranteed loan program, and also will meet
the National Objectives of the CDBG program under 24 CFR 570.208. 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.1 of this
NOFA). This information relates to a threshold factor as well as a
rating factor, as described in Section III.C.1 of this NOFA.
Applications that fail to respond satisfactorily to this subfactor (2)
shall not receive funding consideration.
(3) Project Readiness (12 points overall, with (a)-(d) worth up to
10 points collectively, and (e) up to 2 points). In responding to this
subfactor (3), 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 and the extent to which the
project will directly result in the productive reuse of the site and
the delivery of near-term, measurable economic benefits. The
applicant's response should demonstrate the extent to which the project
is likely to be completed within a maximum of five years from the date
of the BEDI award and will produce near-term, measurable economic
benefits. Points for this subfactor will be awarded based upon the
extent to which the following critical benchmarks for the redevelopment
plan have been met or are approaching completion.
(a) Environmental Investigation. This subfactor (a) will consider
the extent to which the presence or potential presence of environmental
contamination of the project site is known or understood. 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 (a). 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. Alternatively, any applicant indicating the
completion of environmental assessment or review and the issuance of
HUD approval for a Request for Release of Funds for the project under
24 CFR part 58 will receive more points under this subfactor.
(b) Site Control. This subfactor (b) will consider the extent to
which control of the proposed project site has been secured or is being
sought. Points for this subfactor (b) will be awarded based upon the
degree of site control secured by the applicant or its development
partner. Projects, for instance, in which negotiation or litigation
related to site control are underway or continuing are eligible, but
will receive fewer points than projects in which an option to purchase
has been secured. Projects in which the applicant or its development
partner has secured site control through acquisition, long-term lease,
eminent domain or other means at the time of application will receive
full points under this subfactor (b). In responding to this subfactor
(b), applicants are encouraged to accompany their narrative response
with a map indicating the boundaries of the proposed site or sites on
which BEDI-assisted improvements are proposed. Any map included as part
of the application must be submitted in accordance with the submission
procedures provided for in the General Section and will not be counted
in the fifteen page limitation on the narrative response to the Rating
Factors as provided in Section V.A.1(b) of this NOFA.
(c) Legislative, Regulatory, and Other Approvals. This subfactor
(c) will consider the extent to which any required local legislative
approvals, regulatory permits, zoning classifications, environmental
regulatory approvals, waivers, general, and special use permits,
assessment district designations, public easements or rights-of-way, or
other similar approvals have been secured or are being sought. The
greater the number of outstanding legislative, regulatory, or other
approvals required and not yet secured, the fewer points will be
awarded. In the case of a CDBG entitlement unit of general local
government, such as a county, proposing to undertake a BEDI project
within the jurisdiction of another CDBG entitlement unit of general
local government, such as a city or other jurisdiction within that
county, the applicant should also include a letter of support from the
jurisdiction in which the BEDI project would be located.
(d) User Agreements. This subfactor (d) will consider the extent to
which any development agreements, tenant leases, memoranda of
understanding, or other agreements integral to returning the site to
productive reuse and producing near-term measurable economic benefits,
have been secured or are being sought. Applicants proposing projects
that do not provide for new investment by an identified, committed
private entity and the return of a brownfields site to productive
reuse, with accompanying near-term, measurable economic benefits, will
receive fewer points under this subfactor (d).
(e) Delivery of Economic Benefits. The response to this subfactor
(e) must include the time frame in which the measurable economic
benefits are to be delivered. For multi-phase projects, the response to
this subfactor (e) must clearly delineate the different phases of the
project and indicate whether or not they are to be funded by BEDI/Section

[[Page 11881]]

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 (e).
(1) Timeframe for Delivery of Economic Benefits. In response to
this subfactor (3), the applicant should also provide a specific
schedule (with both beginning and end dates) for carrying out the
project and identify all interim measurable benchmarks (acquisition,
demolition, site improvements, relocation, construction, provision of
jobs mandated under Section 3, as described in (2) below, 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.
(2) Intent to Meet Section 3 Requirements. To the extent possible,
applicants must ensure that training, employment, and other economic
opportunities will be directed to low- and very-low income persons,
particularly those who are recipients of government assistance for
housing, and business concerns that provide economic opportunities to
low- and very low-income persons, as required under Section 3 of the
Housing and Urban Development Act of 1968, 12 U.S.C. 1701u (Economic
Opportunities for Low- and Very Low-Income Persons).
(4) Section 108 Application (Up to 2 points). BEDI applications
accompanied by a request for new Section 108 Loan Guarantee assistance
as evidenced by a full and complete Section 108 application as provided
for in 24 CFR 570.704, and submitted concurrently under separate cover
as provided for in Section IV.F.3 of the NOFA, will receive up to two
points for this subfactor (4). BEDI applications accompanied by a
request to use the BEDI grant award in conjunction with a currently
pending but unapproved Section 108 loan guarantee application (together
with any amendments needed for consistency with the BEDI application)
for the same project described in the BEDI application, will also
receive up to two points under this subfactor (4).
(5) Financial Feasibility/Need (Up to 10 points). The applicant
should demonstrate the economic necessity of the proposed BEDI and
Section 108 funds and the extent to which the project is not
financially feasible in the absence of such funds. In responding to
this subfactor (5), applicants are encouraged to accompany their
narrative response, as appropriate, with development and operating
``pro formas'' or similar analyses 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.A.1(b) of this NOFA. 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:
(a) Use of BEDI and Section 108 Funds to Fill Financing Gaps. The
applicant must provide an economic rationale that demonstrates how the
use of the BEDI and Section 108 funds will directly impact the
financial feasibility of the proposed project. The response should
discuss the critical gaps that exist in financing the proposed project,
why those gaps exist and how the BEDI and Section 108 funds will be
used to fill those gaps. The narrative response, including any pro
forma or similar analysis, should demonstrate how the proposed BEDI and
Section 108 financing will yield economic benefits critical to the
success of the project, including, for example, increased rates of
return or debt coverage ratios, reduced rents or other similar
financial outcomes necessary to attract private investment.
(b) Project Costs and Financial Requirements. A funding sources and
uses statement must also be provided that specifies the source of funds
for each identified use or activity (Exhibit C of form HUD-40123),
along with the derivation of project costs.
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. Points for this Factor will be awarded in two
parts, for the following:
(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. (See Sections II.C.1 and
Section VI.B.1(a) of this NOFA 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 government general
funds, project equity or commercial financing provided by private
sources or funds from nonprofit organizations or other sources. In
order to receive points for other public and privately committed funds
under this subfactor (2), letters of firm commitment, evidence of
financial capacity and, for CDBG funds, the resolution of the local
governing body, must be submitted for the proposed BEDI project in
accordance with the submission procedures for third party documents
provided in Section IV.F. of the General Section. In addition:
(a) Applicants must provide evidence that there is a firm
commitment for such funds as defined in Section I.C. of this NOFA.
(b) If a commitment is to be self-financed, such as a commitment by
a private developer to provide a specified amount of equity investment
in the project, the party making that commitment must evidence its
financial capacity through the submission of a corporate or personal
financial statement or other appropriate means in order to receive
points under this subfactor (2).
(c) For 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.
All such funds may also be committed subject to completion of a
satisfactory environmental review required under 24 CFR Part 58 for the
project for purposes of this section.
Rating Factor 5: Achieving Results and Program Evaluation (15 Points
Maximum)
This Factor emphasizes HUD's commitment to ensuring that applicants
maintain commitments made in their applications and assess their
performance to ensure that performance goals are met. This Factor also
evaluates the extent to which the results of the proposed BEDI project
will address the policy priorities of the Department. In

[[Page 11882]]

addition to a narrative response, applicants must complete the logic
model provided in the General Section (form HUD-96010) in order to
receive points under this Factor. Applicants seeking policy priority
points for the removal of regulatory barriers to affordable housing as
provided for in subfactor (2)(v) of this Factor, must also complete
form HUD-27300.
(1) Performance Measurement Plan (Up to 12 points). HUD requires
applicants to develop an effective, quantifiable, outcome oriented
performance measurement plan for assessing performance and determining
that BEDI project goals have been met. The applicant's response to this
subfactor (1) should identify: (a) Each of the specific project
outcomes for the proposed BEDI project; (b) all interim benchmarks or
outputs of the project and the associated time frames for meeting each
interim benchmark or output, i.e., the near-term measurable economic
benefits to be achieved, such as the number of jobs created or retained
and the time frame for creation or retention; and (c) the performance
indicators selected by the applicant to measure its achievement of the
identified project outputs and project outcomes. The performance
indicators selected by the applicant should be objectively quantifiable
and measure actual achievements against anticipated results. The
response to this subfactor (1) should identify what will be measured,
how it will be measured, and the procedures or plans that are in place
to make adjustments to the project redevelopment plan if performance
targets are not met within established time frames.
In response to this subfactor (1), applicants should address any of
the applicable outcomes or ultimate goals identified for the BEDI
project. Examples of such outcomes or goals include increased property
values, or home sales prices, as a result of a series of coordinated
neighborhood activities; the amount of increased wages resulting from
the creation or retention of jobs; increased business sales volume in
revitalized neighborhoods; or the amount of any increased land value
that results from the BEDI project. Applicants should propose
quantifiable outcomes or goals related to the benefits expected for the
neighborhood or for persons assisted, as part of the evaluation plan.
(2) Policy Priorities (Up to 3 points). The applicant's response to
this subfactor (2) should address how the project will address any of
the following policy priorities of the Department, as further detailed
in Section V.B. of the General Section. A maximum of three points shall
be awarded to applicants that demonstrate how the proposed BEDI project
addresses two or more of the following policy priorities, with the
number of points afforded to each policy priority indicated below:
(a) 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 (1 point);
(b) The extent to which the proposed project will finance business
investments that will grow new businesses or maintain and expand
existing businesses (1 point);
(c) The extent to which the proposed project will create decent
jobs for low-income persons (1 point);
(d) The extent to which the project will increase affordable
housing and homeownership opportunities in environmentally healthy and
revitalized neighborhoods for low- and moderate-income persons, persons
with a disability, the elderly, minorities, and persons with limited
English proficiency (1 point);
(e) The extent to which the project will assist in breaking down
regulatory barriers that impede the availability of affordable housing,
accompanied by form HUD-27300). To receive points for this factor the
applicant must submit the required documentation or reference to a
URL(s) where the information can be found. (up to 2 points); and,
(f) The extent to which the project will utilize energy-efficient
solutions in the design or operating phases, including the purchase and
use of Energy Star-labeled products and/or combined heat and power
(CHP, or cogeneration) in buildings, where applicable.) (See Section
V.B of the General Section, Promoting Energy Efficiency and Adopting
Energy Star, for more information (1 point).
3. Bonus Points
An application may receive up to four bonus points, until the
maximum of four points are achieved. Two bonus points may be awarded
for each of the following:
a. HUD will award two bonus points to each application that
includes a valid form HUD-2990 certifying that the proposed activities/
projects in the application are consistent with the strategic plan for
an empowerment zone (EZ) designated by HUD or the United States
Department of Agriculture (USDA), the tax incentive utilization plan
for an urban or rural renewal community designated by HUD (RC), or the
strategic plan for an enterprise community designated in Round II by
USDA (EC-II), and that the proposed activities/projects will be located
within the RC/EZ/EC-II mentioned above and are intended to serve the
residents of the Zone. A listing of the RC/EZ/EC-IIs is available on
the Internet at http://www.hud.gov/cr;
b. Two bonus points will also be awarded for projects that are
located in Brownfields Showcase Communities designated by EPA. A list
of the federally designated Brownfields Showcase Communities is
available from the SuperNOFA Information Center or through the HUD
website, http://www.hud.gov.

B. Reviews and Selection Process

1. Reviews and Selection Process. All applications meeting BEDI
program and other threshold requirements will be rated under the
selection criteria in Section V.A. of this NOFA. Applications will be
selected for funding as follows:
a. Fundable BEDI grant applications must meet the program threshold
and submission requirements of this NOFA and the other threshold
requirements stipulated in Section III.C. of the General Section or
they will not be ranked.
b. 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.
c. In the event two or more applications are given the same score,
but there are insufficient funds to fund all of the tied applications,
the application(s) with the highest score(s) on Rating Factor 3 shall
be selected. If there is still a tie, the following Factors will be
considered sequentially, with the application having the high score on
each Factor in the following order taking precedence until the tie is
broken: Rating Factor 1, Rating Factor 2, Rating Factor 4, and Rating
Factor 5.
d. Fundable BEDI applications will be funded in rank order until
the total aggregate amount of the approvable applications funded is
equal to the maximum amount available in the competition (subject to
the limitations described in Section II.C above).
e. In the event an insufficient number of applications meeting the
program thresholds are received to award the full amount of BEDI funds
appropriated and available under this NOFA, HUD may consider for
funding those applications that did not meet the performance standards
found in Section III.C.1.(c) above.
2. Corrections to Deficient Applications. Section V.B. of the

[[Page 11883]]

General Section provides the procedures for corrections to deficient
applications.

C. Anticipated Announcement and Award Dates

Historically, BEDI awardees have been notified of the approval of
BEDI applications within approximately 90 days of the application deadline.

VI. Award Administration Information

A. Award Notices

1. Notice of Award and Obligation
BEDI award recipients will receive written notice of approval of
their applications and the related terms and conditions of the award.
An authorized official of the applicant receiving a BEDI award will be
required to sign and return an acceptance of the BEDI award. BEDI funds
shall be obligated for an approved application upon the return of a
signed acceptance of the award to HUD and a countersignature of that
acceptance by an authorized HUD official.
2. Award Disbursements and Amendments
a. Timing of Section 108 Approval and BEDI Grant 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 for those applicants that are granted a waiver
to the electronic submission process, 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 and at least
partial funding of the obligations evidencing the related Section 108-
guaranteed loan.
(3) Pursuant to the Consolidated Appropriations Act, 2005 (under
the ``Brownfields Redevelopment'' heading) and 31 U.S.C. 1552, FY 2006
BEDI funds must be obligated (i.e., awarded) by HUD by September 30,
2007, and must be disbursed by HUD to the grantee by September 30,
2012. HUD reserves the right, however, to require earlier disbursement
under a BEDI grant agreement. Accordingly, a BEDI awardee must ensure
the timely submission of its Section 108 Loan Guarantee application,
the execution of the Section 108 Contract for Loan Guarantee Assistance
and BEDI Grant Agreement, and the issuance of the Section 108 Loan
Guarantee Note.
3. Applicant Debriefing
Section VI.A. of the General Section 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, Mr. William Seedyke, at the address listed in Section VII
of this NOFA.

B. Administrative and National Policy Requirements

1. Terms and Conditions
a. Ratio of BEDI to Section 108 Loan Guarantee Funds. Because the
proposed ratio of BEDI funds to Section 108 funds presented in an
approved BEDI application represents an applicant's financial
commitment to a BEDI project, HUD will condition the BEDI grant award
on the grantee's achievement of that specific ratio. The failure of the
grantee 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.
b. Approval of Section 108 Loan Guarantee Application and
Disbursement of Funds. As a condition of any award under this NOFA, if
the related Section 108 application has not been submitted and approved
within 10 months of written HUD notification of selection for potential
funding under this NOFA, HUD may deobligate the BEDI funds. BEDI grant
awards and grant agreements 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 time frames specified in the BEDI
grant agreement, HUD reserves the right to cancel the award and
recapture all or a portion of the BEDI funds, as applicable under the
grant agreement.
c. BEDI Application Amendments. Any modifications or amendments to
an application approved pursuant to this NOFA, 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 NOFA. In
addition, if the applicant proposes an amendment after the period
during which appropriated funds are available for obligation (for
FY2006 BEDI funds, after September 30, 2007), HUD will be unable to
approve any amendment which materially changes the scope, purpose, or
need for the original award, as determined by HUD. In such a case, the
unused BEDI funds must be deobligated and returned to the U.S. Treasury.
2. Environmental Justice
a. 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.
b. 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.
3. Economic Opportunities for Low- and Very Low-Income Persons (Section 3)
Recipients of assistance under this NOFA must comply with Section 3
of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701
(Economic Opportunities for Low- and Very Low-Income Persons in
Connection with Assisted Projects) and the HUD regulations at 24 CFR
part 135, including the reporting requirements at subpart E. Section 3
requires recipients to ensure that, to the greatest extent feasible,
training, employment, and other economic opportunities will be directed
to low- and very-low income persons, particularly those who are
recipients of government assistance for housing, and business concerns
that provide economic opportunities to low- and very low-income persons.
4. Other National Requirements
BEDI applicants are directed to the Section III.C of the General
Section, which provides the statutory, regulatory, threshold, and
public policy requirements applicable to all HUD grantees. In
particular, BEDI applicants should carefully review provisions relating
to Executive Order 13202 (Preservation of Open Competition and
Government Neutrality Toward Government Contractors' Labor

[[Page 11884]]

Relations on Federal and Federally Funded Construction Projects) and
federal laws governing the procurement of recovered materials.

C. Reporting

CDBG regulations at 24 CFR 570.507 (for metropolitan city and urban
counties) and 24 CFR 570.491 (for state grantees) require the
submission of a Consolidated Annual Performance Evaluation Report
(CAPER) describing the use of CDBG funds during the program year. 24
CFR 570.3 defines CDBG funds to include BEDI grants, and accordingly,
grantees must report specifically on the use of BEDI grant funds and
Section 108 loan guarantee proceeds in the CAPER. CAPER requirements
for the collection and reporting of racial and ethnic data also apply
to the use of BEDI and Section 108 guaranteed loan proceeds. These data
are to be reported in the CAPER using the Race and Ethnic Data
Reporting form (HUD-27061). For each reporting period, as part of the
required report to HUD, grant recipients must also include a completed
Logic Model (form HUD-96010), which identifies output and outcome
achievements and responses to the management questions.
For FY2006, HUD is considering a new concept for the Logic Model.
The new concept is a Return on Investment statement. HUD will be
publishing a separate notice on the ROI concept.

VII. Agency Contact

For technical assistance in completing your registration with
Grants.gov or in using the electronic application, please contact the
Grants.gov Support Desk by calling 800-518-GRANTS or by sending an
email to Support@Grants.gov. For assistance with program related
questions, please contact William Seedyke, BEDI Program Coordinator;
Office of Economic Development; U.S. Department of Housing and Urban
Development; 451 Seventh Street, SW, Room 7140; Washington, DC 20410;
telephone (202) 708-3484, extension 4445 (this is not a toll-free
number). Hearing or speech challenged persons may call the Federal
Information Relay Service at 800-877-8339 (this is a toll-free number).
Before the application submission date, HUD staff will be available to
provide general guidance and 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 are available to provide
advice and assistance to develop Section 108 loan applications.

VIII. Other Information

Paperwork Reduction Act

The information collection requirements contained in this document
have been approved by the Office of Management and Budget (OMB) under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned
OMB control number 2506-0153. In accordance with the Paperwork
Reduction Act, HUD may not conduct or sponsor, and a person is not
required to, a collection of information unless the collection displays
a current OMB control number. Public reporting burden for the
collection of information is estimated to average 2000 hours per annum
per respondent for the application and grant administration. This
includes the time for collecting, reviewing and reporting the data for
the application and for the annual report. The information will be used
for grantee selection and monitoring and the administration of funds.
Response to this request for information is required in order to
receive the benefits to be derived.

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Youthbuild

Overview Information

A. Federal Agency Name: Department of Housing and Urban
Development, Office of Community Planning and Development.
B. Funding Opportunity Title: Youthbuild.
C. Announcement Type: Initial announcement.
D. Funding Opportunity Number: The OMB approval number is 2506-
0142. The Federal Register number is FR-5030-N-07.
E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.243,
Youthbuild Program.
F. Dates: The application deadline date is on or before June 9,
2006. Please see the General Section of the SuperNOFA (the General
Section) for application submission and receipt procedures. Please note
that this year, all applications must be submitted electronically using
http://www.grants.gov, as described in Section IV.F of the
General Section.
G. Additional Overview Content Information: 1. Purpose of the
Program. The purpose of the Youthbuild program is to assist
disadvantaged young adults between the ages of 16 and 24 years of age
in distressed communities to: (1) Complete their high school education;
(2) provide on-site construction training experiences which result in
the rehabilitation or construction of housing for homeless persons and
low- and very low-income families; (3) foster leadership skills; (4)
further opportunities for placement in apprenticeship programs; and (5)
promote economic self-sufficiency for program participants.
2. Available Funds. Approximately $46,035,000 in appropriated funds
and carry over is available for Fiscal Year (FY) 2006, plus any funds
available through recapture, minus any amount needed to correct errors.
3. Eligible Applicants. Eligible applicants are public or private
nonprofit organizations that include grassroots community-based
organizations inclusive of faith-based organizations, state or local
housing agencies or authorities, state or units of local government, or
any entity eligible to provide education and employment training under
other federal employment training programs, as further defined in HUD's
regulation at 24 CFR 585.4.
4. Match. None.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description

The purposes of the Youthbuild Program are to:
1. Provide economically disadvantaged young adults with
opportunities to obtain an educational experience that will enhance
their employment skills, as a means to achieving self-sufficiency;
2. Foster the development of leadership skills and commitment to
community;
3. Expand the supply of permanent affordable housing for homeless
and low- and very low-income persons by providing implementation grants;
4. Provide disadvantaged young adults with meaningful on-site
training experiences in housing construction and rehabilitation that
will enable them to render a service to their communities by helping to
meet the housing needs of homeless persons and low-income families; and
5. Give to the greatest extent possible, job training, employment,
contracting, and other economic opportunities to low-income young adults.

B. Desirable Elements of a Youthbuild Program

You should document the extent to which HUD's initiatives are
furthered by the proposed activities including:
1. Providing increased homeownership and rental opportunities for
low- and moderate-income persons, persons with disabilities, the
elderly, minorities, and families with limited English proficiency;
2. Improving our nation's communities;
3. Encouraging accessible design features;
4. Providing full and equal access to grassroots faith-based and
other community based organizations in HUD program implementation; and
5. Ending chronic homelessness.

C. Definitions

1. Rural Area. A rural area is defined in one of five ways:
a. A non-urban place having fewer than 2,500 inhabitants (within or
outside of metropolitan areas).
b. A county or parish with an urban population of 20,000
inhabitants or fewer.
c. Territory, including its persons and housing units, in rural
portions of ``extended cities.'' The Census Bureau identifies the rural
portions of extended cities.
d. Open country, which is not part of or associated with an urban
area. The United States Department of Agriculture (USDA) describes
``open country'' as a site separated by open space from any adjacent
densely populated urban area. Open space includes undeveloped land,
agricultural land or sparsely settled areas but does not include
physical barriers (such as rivers and canals), public parks, commercial
and industrial developments, small areas reserved for recreational
purposes, and open space set aside for future development.
e. Any place with a population not in excess of 20,000 and not
located in a Metropolitan Statistical Area.
2. Underserved Area. An underserved area is defined as an area
comprised of census tracts with the following economic distress criteria:
a. A census tract where the unemployment remains high (50 percent
or more above the nation's unemployment rate) and
b. A census tract where high rates of poverty (50 percent or more
above the national average) persist.

II. Award Information

A. Available Funds

Approximately $ 46,035,000 in funding is made available for this FY
2006 Youthbuild NOFA, which includes any carry over from previous
appropriated funds, plus any FY 2006 funds appropriated by Congress,
plus any funds available through recapture, minus any amount needed to
correct errors.

B. Authority

This program is authorized under subtitle D of title IV of the
Cranston-Gonzalez National Affordable Housing Act, as added by section
164 of the Housing and Community Development Act of 1992 (Pub. L. 102-
550, 106 Stat. 3723, 42 U.S.C. 12899). The Youthbuild Program
regulations are found in 24 CFR part 585.

C. Funding Categories

HUD will award up to $ 46,035,000 on a competitive basis. Funds
will be divided among three categories of grants as described below.
Pursuant to section 402 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12870), in each fiscal year, the Secretary shall
reserve five percent of the amounts available for activities for
technical assistance, as described in section 458 (42 U.S.C. 12899g).
1. Category 1 Grants. New Applicants. HUD will award up to
$4,800,000 for new applicants that have not previously received
implementation grants since

[[Page 11888]]

the inception of the Youthbuild Program and that have elected not to
apply under Category 2 or 3.
2. Category 2 Grants. Grants up to $700,000. HUD will award up to
$37,275,000. Any eligible applicant can apply in Category 2.
3. Category 3 Grants. Underserved and Rural Areas. HUD will award
approximately $3,960,000 for grants to organizations serving clients in
underserved and rural areas as defined in this NOFA.
4. Selection of Category. You must indicate in your project
abstract which funding category you are applying for. Category 3
applicants must designate which definition(s) under Section I.C. is
(are) applicable.
5. Grant Period. You must expend funds awarded within 30 months of
the effective date of the grant agreement.
6. Maximum Awards. The maximum award for a Youthbuild grant is
$700,000 for Category 2 grants. The maximum amount of award for
Categories 1 and 3 grants is $400,000.

III. Eligibility Information

A. Eligible Applicants

Eligible applicants are public or private nonprofit organizations
which include grassroots community-based organizations inclusive of
faith-based organizations, state or local housing agencies or
authorities, states or units of local government, or any entity
eligible to provide education and employment training under other
federal employment training programs as further defined in HUD's
regulation at 24 CFR 585.4.

B. Cost Sharing or Matching

No match required.

C. Other

1. Eligible Activities
a. Work and activities associated with the acquisition,
architectural design and engineering, rehabilitation or construction of
housing, as defined in HUD's regulations at 24 CFR 585.305.
b. Relocation payments and other assistance required to comply with
HUD's regulation at 24 CFR 585.308;
c. Costs of ongoing training and technical assistance needs related
to carrying out a Youthbuild program and in-house staff training;
d. Education, job training, counseling, employment, leadership
development services, and optional activities that meet the needs of
the participants including entrepreneurial training, driver education,
apprenticeship opportunities, financial literacy, credit counseling,
and assistance programs for those with learning disabilities;
e. Outreach to potential participants;
f. Wages, benefits, and need-based stipends for participants; and
g. Administrative costs must not exceed eight percent of the grant
award, as required by the FY 2006 Consolidated Appropriations Act. HUD
encourages you to use grant funds for outreach, recruitment, training,
and other services for the participants that facilitate program
implementation. Please refer to HUD's regulation at 24 CFR 585.305 for
further details on eligible activities.
2. Threshold Requirements
All applicants must comply with the threshold requirements defined
in the General Section and the requirements listed below to receive an
award. Applications that do not meet these requirements will be
considered ineligible for funding.
a. Eligible Participants. Participants in a Youthbuild program must
be very low-income high school dropouts between the ages of 16 and 24,
inclusive, at the time of enrollment. Up to 25 percent of participants
may be above very low-income, or may be high school graduates (or
equivalent), but must have educational needs (such as lack of reading,
writing, and communication skills) that justify their participation in
the program.
b. Youthbuild Program Components. Applications that receive
assistance under this program must contain the three components
described as follows:
(1) Educational and job training services;
(2) Leadership training, counseling, and other support activities;
and
(3) On-site training through actual housing rehabilitation and/or
new construction work.
c. Identification of and Access to Property. Your application must
identify the location of the site(s) or property(ies) (e.g., addresses,
parcel numbers, etc.) that will be used for on-site construction. Your
application MUST contain a letter from the property owner or property
management company or companies allowing access to the housing site(s)
for on-site construction training. HUD will deem ineligible any
application that fails to specifically identify the location of the on-
site construction, including evidence of site access. Guidance on
evidence of site access is as follows:
(1) If the applicant has a contract or option to purchase the
property, you should include a copy of the contract or option; and
(2) If a third party owns the property or has a contract or option
to purchase, that third party must provide a letter to you stating the
nature of the ownership and specifically providing you with access to
the property for the purposes of the program and the time frame in
which the property will be available. In the case of a contract or
option, include a copy of the document.
d. Minimum Score. In order to be considered eligible for funding,
your application must receive a minimum score of 75, including a
minimum of 10 points in Factor 1.
e. DUNS Requirement. Refer to the General Section for information
regarding the DUNS requirement. You will need to obtain a DUNS number
to submit your application on line using http://www.grants.gov
and to receive an award from HUD.
f. Civil Rights Threshold Requirement. Applicants must meet all of
the applicable threshold requirements of Section III.C.2.c of the
General Section regarding Fair Housing and Civil Rights laws, statutes,
regulations and Executive orders as enumerated in 24 CFR 5.105(a).
g. Potential Environmental Disqualification. HUD reserves the right
to disqualify an application where one or more environmental thresholds
identified in the instructions section of the Youthbuild NOFA located
at http://www.hud.gov/offices/adm/grants/fundsavail.cfm are exceeded
if HUD determines that it cannot conduct the environmental review and
satisfactorily complete the review within the HUD application review
period. (See 24 CFR 585.307.) You must indicate, as part of your
application package if your project will, or will not, include
construction, rehabilitation, leasing or acquisition activities that
will require an environmental compliance review as detailed in the
instructions section of the Youthbuild NOFA. Environmental thresholds
that are explained in the instructions section require that forms
2C13a, 2C13b, or 2C13c and 2C15 be completed if you are proposing
construction, rehabilitation, leasing or acquisition activities with
HUD funds.
h. Consistency with Consolidated Plan. You must provide the
required certification that the proposed activities are consistent with
the HUD-approved Consolidated Plan in accordance with 24 CFR part 91.
i. If you have received a Youthbuild grant and it is greater than
24 months old and you have not drawn down at least 50 percent of the
total HUD grant funds as of the application submission date for this
NOFA, you will not be eligible to receive a FY 2006 Youthbuild grant.

[[Page 11889]]

3. Program Requirements
In addition to the program requirements listed below, applicants
must comply with the program requirements in Section III.C of the
General Section.
a. Locational Limitations. You may submit more than one application
in the current competition if your program's participant recruitment
and housing areas are in different jurisdictions. Each application you
submit may only propose activities to carry out one Youthbuild program,
i.e., to start a new Youthbuild program or to fund new classes of
Youthbuild participants for an existing program.
b. Site Selection. In determining the site or the location of a
federally assisted facility, you may not select sites that will exclude
or have the effect of excluding qualified persons with disabilities, or
otherwise subject them to discrimination.
c. New Construction, Substantial Alterations, or Other Alterations.
If you undertake New Construction, Substantial Alterations, or Other
Alterations, it must conform to the accessibility standards outlined in
the regulations implementing the Rehabilitation Act of 1973 at 24 CFR
part 8, specifically Sec. Sec. 8.22, 8.23(a) and Sec. 8.23(b). In
addition, if you undertake construction of multifamily housing with
four or more dwelling units, you must also meet the design and
construction requirements of the Fair Housing Act. See 24 CFR part 100,
at Sec. 100.205.
d. Training Requirement. Each program must be structured so that 50
percent of each participant's time is spent in on-site training and the
other 50 percent in educational training.
e. Economic Opportunities for Low- and Very Low-Income Persons
(Section 3). Section 3 of the Housing and Urban Development Act of
1968, (12 U.S.C. 1701u) is applicable. Section 3 requires recipients to
ensure that, to the greatest extent feasible, training, employment, and
other economic opportunities will be directed to low- and very-low
income persons, particularly those who are recipients of government
assistance for housing, and business concerns which provide economic
opportunities to low- and very low-income persons. The regulations are
at 24 CFR part 135.
f. Participation in Local Workforce Investment Act One-Stop Center.
Youthbuild grantees are mandatory partners in one-stop centers
authorized by the Workforce Investment Act of 1998 (Pub.L. 105-220).
g. First time applicants. If you are a first-time applicant
applying for funding under Category 1, you must have a graduating class
of not more than 20 participants.
h. Environmental Reviews. Environmental procedures apply when you
propose to use Youthbuild funds to cover any costs for the lease,
acquisition, rehabilitation, or new construction of real property
proposed for housing development costs. Environmental procedures do not
apply to your application when you propose to use Youthbuild funds
solely to cover costs for classroom and/or on-the-job construction
training and support services.
You must indicate, as part of your application package if your
project will, or will not, include construction, rehabilitation,
leasing or acquisition activities that will require an environmental
compliance review as detailed in the instructions section at http://
www.hud.gov/offices/adm/grants/fundsavail.cfm. If your project
is subject to an environmental compliance review, you must submit the
relevant information in the required forms as part of your application
package to facilitate HUD's decisionmaking in accordance with the
environmental procedures and standards set forth in HUD's regulation at
24 CFR 585.307. The Website link contains the detailed description and
relevant forms of all environmental laws and rules that apply--the
National Environmental Policy Act, the National Historic Preservation
Act, the Clean Water and Clean Air Acts, the Endangered Species Act,
the Scenic Rivers Act, national floodplain and wetland policies,
national flood insurance requirement, Coastal Barriers Resource Act,
and HUD noise and explosive hazards policies.

IV. Application and Submission Information: (See the General Section)

A. Addresses To Request Application Package

There is no application kit for the FY2006 Youthbuild NOFA. This
NOFA clearly describes the requirements for completing a successful
application and all forms and certifications needed to complete your
application are included in the General and Youthbuild Sections of the
SuperNOFA, which can be downloaded from http://www.Grants.gov/Apply.

B. Content and Form of Application Submission

Be sure to read the application submission instructions in the
General Section and below carefully.
1. Response to NOFA Page Limitation
The narrative responses to all factors identified in Section V of
this NOFA must not exceed 15 single sided pages of text based on an 8.5
by 11 inch paper, using a standard 12 point font, with lines double-
spaced. Submitting pages in excess of the page limit will not
disqualify your application. However, HUD will not review or consider
information on any excess pages.
2. Application Items
Your application must contain the items listed below including the
standard forms, certifications, and assurances listed in the General
Section that are applicable to this funding. The standard forms and the
program specific forms or information needed to evaluate your
application can be found at Grants.gov or http://www.hud.gov.
General letters of support not associated with specific cash or in-kind
commitments have no bearing on the rating of your application.

----------------------------------------------------------------------------------------------------------------
What to submit Required content Required form or format When to submit
----------------------------------------------------------------------------------------------------------------
Project abstract................. Category applying for (if Narrative............... Application deadline
Category 3, specify date.
which definition(s)
under ``rural and
underserved'' is(are)
applicable); Amount of
funds requested;
Location of project,
including census
tract(s); Number of
participants to be
trained; Number of
houses to be
constructed; Number of
houses to be rehabbed;
Major partners.
Application...................... ......................... SF-424.................. Application deadline
date.

[[Page 11890]]

Survey on Ensuring Equal ......................... SF-424 supplement....... Application deadline
Opportunity for Applicants. date.
Budget information............... Total Youthbuild Grant Youthbuild Form 4A (HUD- Application deadline
Budget. 40211.6). date.
Rating Factors: Narrative Described in Section V of Narrative and Youthbuild Application deadline
addressing 5 rating factors. this announcement. Form 4B (HUD-40211.7). date.
Non-Housing Program Resources and Described in Section V of Youthbuild Form 4B (HUD- Application deadline
accompanying letters of this announcement. 40211.7). date.
commitment for non-housing
program resources.
Logic Model Form................. Described in Section V of HUD-96010............... Application deadline
this announcement and date.
form instructions.
Applicant/Recipient Disclosure/ Required for all HUD-2880................ Application deadline
Update Form. applicants. date.
Disclosure of Lobby Activities Required if applicant has SF-LLL (use SF-LLL-A Application deadline
(if applicable). lobbied. Continuation Sheet if date.
needed).
Certification of Consistency with If applying for RC/EZ/EC HUD-2990................ Application deadline
RC/EZ/EC-II Plan. Round II bonus points. date.
Certification of Consistency with Required................. HUD-2991................ Application deadline
Consolidated Plan. date.
Acknowledgment of Application Optional if applicant has HUD-2993................ Application deadline
Receipt. been granted a waiver of date.
the mandatory electronic
submission and is
submitting a paper
application.
You Are Our Client Grant Optional, to help HUD HUD-2994-A.............. Application deadline
Applicant Survey. improve its NOFA process. date.
----------------------------------------------------------------------------------------------------------------
Youthbuild Program Specific Forms/information (required for all applications)
----------------------------------------------------------------------------------------------------------------
Exhibit 2C (Housing Site ......................... HUD-40211............... Application deadline
Description). date.
Exhibit 2C10 (Individual Housing ......................... HUD-40211.1............. Application deadline
Project Site) Estimate. date.
Accompanying letters of ......................... ........................ Application deadline
commitment to cover costs of date.
lease, acquisition,
rehabilitation or new
construction of real property
Site Access Letter(s).
----------------------------------------------------------------------------------------------------------------
Youthbuild Program Specific Forms (only if applicant proposes to use Youthbuild funds for lease, acquisition,
rehabilitation, or new construction of real property)
----------------------------------------------------------------------------------------------------------------
Exhibit 2C13a (Housing Project ......................... HUD-40211.2............. Application deadline
Certifications for Residential date.
Rental Units.
Exhibit 2C13b (Housing Project ......................... HUD-40211.3............. Application deadline
Certifications for Transitional date.
Housing).
Exhibit 2C13c (Housing Project ......................... HUD-40211.4............. Application deadline
Certifications for date.
Homeownership).
Exhibit 2C15 (Environmental ......................... HUD-40211.5............. Application deadline
Threshold Information for a date.
Property Proposed for YB
Funding).
Questionnaire for HUD's ......................... HUD-27300............... Application deadline
Initiative on Removal of date.
Regulatory Barriers.
Facsimile Transmittal............ To be used when HUD-96011............... On or before the
submitting third party application deadline
letters or other date.
documents that you
cannot attach as an
electronic file to your
application.
----------------------------------------------------------------------------------------------------------------

C. Submission Dates and Times

Applications must be received and validated by Grants.gov no later
than 11:59:59 p.m. Eastern time on the application deadline date of
June 9, 2006. HUD must receive paper copy applications from applicants
that received a waiver no later than 11:59:59 p.m. on the application
deadline date. See the General Section for application submission and
timely receipt procedures.

D. Intergovernmental Review

The Youthbuild program is subject to Intergovernmental Review under
Executive Order 12372, ``Intergovernmental Review of Federal Programs.''
See the General Section for further discussion of the Executive

[[Page 11891]]

Order and HUD's implementing regulations.

E. Funding Restrictions

Administrative costs must not exceed eight percent of the grant award.

V. Application Review Information

The factors for rating and ranking applicants are provided below.
The maximum number of points for the program is 102. This includes two
bonus points, as described in Section V. F below.

A. Rating Factor 1. Capacity of the Applicant and Relevant
Organizational Experience (20 Points, Minimum 10 Points)

This factor addresses the qualifications and experience of the
applicant and participating parties to implement a successful
Youthbuild program in accordance with your work plan as further
described in Factor 3. HUD will evaluate information provided
documenting recent capability. Experience within the last 5 years is
considered recent. HUD will take into account the applicant's past
performance and may deduct points for previous inability to demonstrate
performance. HUD will evaluate the following sub-factors:
1. Team Member Composition and Experience (5 points). Your
experience and the experience of your project director, core staff
competencies including your day-to-day program manager, consultants,
and contractors. You must demonstrate that your program manager has the
background, experience, and capacity to implement all of the program
components of the proposed work plan, as evidenced by recent work
experience in managing projects of the same or similar size, dollar
amount, types of activities, and beneficiaries as those proposed in
your work plan. If any gaps exist in your experience or organizational
structure to carry out the program, describe how you will fill those
gaps including the hiring of consultants or other outside parties.
2. Organizational Structure (5 points). You should provide a clear
description of how your organizational structure will operate to carry
out your work plan. You should describe the structure of your
organization (include an organizational chart), management structure,
including reporting relationships of key staff, a system for
coordinating with outside contractors or third party service providers,
a mechanism for an internal and external auditing relationship, in
accordance with OMB Circular (No. A-133), ``Audits of State and Local
Governments and Non-Profit Organizations,'' and an accounting system
which meets federal accounting system requirements.
3. Achievement of Performance Outcomes (10 points). The objectives
and accomplishments of your past experience in conducting similar
activities. You must describe your past project objectives and
accomplishments that are similar to those of your proposed work plan to
show your effectiveness and timeliness in managing similar projects. If
you have received similar grants including previous Youthbuild grants,
you must describe the effectiveness of your administration, including
timeliness and meeting performance results from performance reports. In
addressing timeliness of reports, you must compare when your reports
were due with when they were actually submitted. You must describe your
achievements, including specific measurable outcome objectives: Number
of youths recruited, trained, and received GEDs; number of youths
obtaining jobs (i.e., those that are a part of a career path or
apprenticeship program) and job retention statistics; number of youths
participating in apprenticeships and number of housing units
rehabilitated or constructed and made available for low- and very low-
income persons. Previously generated outcomes should include the
following: (1) Percent that entered employment or enrolled in education
and/or training first quarter after program exit, (2) percent of
participants that earned a diploma, GED, or certificate, (3) percent
that have attained literacy and numeracy skills by participants, (4)
annual cost per participant.
Also, you must describe the extent to which you or participating
partners have been successful in past education, training and
employment programs and activities, including federally funded
Youthbuild programs. In applying the rating criteria, HUD will take
into consideration your performance (including meeting target dates and
schedules) as reported.
The more recent, relevant, and successful the experience of the
proposed team members, organization and other participating entities in
relation to the work plan, the greater the number of points you will
receive. For previous and existing Youthbuild grantees, applicants that
can demonstrate a closer and greater linkage between the expected
outcomes and the previously generated outcomes will receive a higher
score for this Factor. Applicants that have been slow to draw funds and
therefore appear not to be making progress in completing their program
activities will receive lower rating points than applicants that have a
pattern and practice of drawing funds in a timely manner consistent
with timely progress in meeting program activity goals and objectives.

B. Rating Factor 2: Need/Extent of the Problem (21 Points)

This Factor addresses the extent to which there is need for funding
the proposed activities based on levels of distress and an indication
of the urgency of meeting the need/distress in the applicant's target
area. Applications will be evaluated on the extent to which the level
of need for the proposed activity and the urgency in meeting the need
are documented and compared to the target area and national data.
1. HUD will consider current levels of distress for the area (i.e.,
Census Tract(s) or Block Groups) immediately surrounding the project
site or the target area to be served by the proposed project, and in
the nation. This means that an application that provides data that show
levels of distress in the target area expressed as a percent greater
than the national average will be rated higher.
Notwithstanding the above, an applicant proposing a project to be
located outside the target area could still receive points under the
Distress Factor if a clear rationale and linkage is provided linking
the proposed project location and the benefits to be derived by persons
living in more distressed area(s) of the applicant's target area.
2. Applicants should provide data that address indicators of
distress, as follows:
a. Poverty (5 points)--data should be provided in both whole
numbers and percentages for the target area(s); 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:

(1) Less than the national average--0 point
(2) Equal to but less than twice the national average--1 point
(3) Twice but less than three times the national average--3 points
(4) Three or more times the national average--5 points

b. Unemployment (5 points)--for the project area;

(1) Less than the national average--0 point
(2) Equal to but less than twice the national average--1 point
(3) Twice but less than three times the national average--2 points
(4) Three but less than four times the national average--3 points

[[Page 11892]]

(5) Four but less than five times the national average--4 points
(6) Five or more times the national average--5 points

c. High School Dropouts (8 points)--for the project area;

(1) Less than the national average--0 point
(2) Equal to but less than twice the national average--2 points
(3) Twice but less than three times the national average--4 points
(4) Three but less than four times the national average--6 points
(5) Four but less than five times the national average--7points
(6) Five or more times the national average--8 points

d. Concrete examples of social and/or economic decline that best
capture the applicant's local situation (3 points). Examples that could
be provided are information on the community's stagnant or falling tax
base, including recent commercial or industrial closings, 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 the target area and urgency in addressing
problems facing youth, local crime statistics, etc.
3. When rating applications HUD reserves the right to consider
sources of available objective data, such as the U.S. Census, in
addition to those provided by applicants, and to compare such data to
those provided by applicants and local crime statistics for the project
site.
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 including the publication or origination
date must be provided. Updated Census data are available as follows for
the listed indicators: a. Unemployment rate--estimated monthly, with a
two-month lag; b. High School Dropout rate using the status rate--2000
data; c. Poverty rate--2000 Census data at the tract level.

C. Rating Factor 3: Soundness of Approach (37 Points)

This Factor addresses your proposed workplan and budget and the
extent to which your proposed program is coordinated with other ongoing
and related activities in the area you propose to serve and how well
your program outcomes result in increased independence and empowerment
to your beneficiaries at the conclusion of the grant period. HUD will
evaluate the extent to which your application meets the following elements:
1. Youthbuild Program Work Plan: For each component, HUD will
consider the overall quality and feasibility of your proposed work plan
and budget that must be consistent with the Youthbuild program as
measured by your specific activities and outcomes. You will receive a
greater number of points if the program components are consistent with
the purpose of the Youthbuild program, your project goals and the
resources provided. Letters describing specific resources or services
to be contributed by non-applicant organizations must be included in
your application.
Specifically, HUD will consider the following categories when
assessing your proposed work plan:
a. Program Components. (15 points)
(1) Outreach strategy, recruitment strategy, and selection
activities. Points will be awarded based upon overall quality and
feasibility of the outreach, recruitment and selection activities, the
number and types of outreach activities, number of youths to be
recruited including eligible participants who are harder to reach and
comprehensiveness of the local selection process.
In evaluating this category, HUD will consider your selection
strategies and your specific outreach efforts to recruit or contact:
(a) Potential eligible participants who are unlikely to be aware of
this program (because of race, color, national origin, religion,
ethnicity, sex, or disability);
(b) Young women, young women with dependent children, and persons
receiving public assistance; and
(c) Public agencies, courts, homeless shelters, local school
systems, local workforce development systems, one-stop centers and
community-based organizations, etc.
(2) Educational and job training services and activities. Points
will be awarded based upon the qualifications of instructors and
proposed wages and stipends for youth participants. In evaluating this
category, HUD will consider:
(a) The types of in-class academic and vocational instruction you
will provide;
(b) The number and qualifications of program instructors and ratio
of instructors to participants;
(c) Scheduling plan for classroom and on-the-job training needed to
meet program requirements and ensure timely completion of your program;
and
(d) Reasonable payments to participants of wages, stipends, and
incentives. Wages or stipends for on-site construction training must be
at least federal minimum wage.
(3) Leadership development. Points will be awarded based upon your
proposed leadership curriculum, qualifications of instructors, and the
impact of the proposed leadership activities on the target area. You
must describe the leadership development training you will offer to
participants and strategies for providing the training to build group
cohesion and peer support.
(4) Support services. You must assess the need for counseling and
referral services during each stage of program implementation: Outreach
strategy, recruitment strategy, youths interviewed and not selected for
the program, program participants, youths who drop out of the program,
and graduates of the program. Describe how the participant needs will
be addressed, document counseling and referral services to be offered
to participants, the type of counseling, social services, and/or need-
based stipends you will provide.
(5) Follow-up assistance and support activities to program
graduates. You must describe the type of proposed assistance and
support which should be based upon an assessment of the needs of the
program graduates and should include continued linkage to the local
Youthbuild program, counseling, and social service referral services.
(6) On-site training. Points will be awarded based upon the
experience of proposed instructors, number of youth to be trained, and
wages or stipends for participants. HUD will consider:
(a) The housing construction or rehabilitation activities
participants will undertake at the site(s) to be used for the on-site
training component of the program as provided in the training
curriculum and methodology for carrying out on-site training;
(b) Qualification and number of on-site supervisors;
(c) Ratio of trainers to participants;
(d) Number of participants per site; and
(e) Amounts, wages, and/or stipends you will pay to participants
during on-site work. Amounts must be at least federal minimum wage.
b. Strategy for Job Placement. (2 points).
(1) For applicants that have not received a prior Youthbuild award.
HUD will evaluate the quality and feasibility of your proposed strategy
to place youth participants in permanent jobs. You will be rated on the
following factors: (a) Proposed number of youth to obtain jobs that
promote economic self-sufficiency (i.e., those that are a part of
career paths or apprenticeship programs); (b) proposed number of youths
who will continue post-

[[Page 11893]]

secondary or secondary education; and (c) proposed number of youths to
receive entrepreneurship training.
(2) For Youthbuild grantees who have grants that are at least 24
months old. In addition to the information in section V.C.2.b(1) above,
provide the actual number of program participants that met each
criterion in section V.C.2.b(1)(a), V.C.2.b(1)(b) and V.C.2.b(1)(c) as
a percent of the total program participants served.
2. Coordination Elements:--5 points as distributed below.
a. Coordination of activities (2 points). The extent to which you
have coordinated your activities with other known organizations that
are not directly in your proposed work activities, but with which you
share common goals and objectives and are working toward meeting these
objectives in a holistic and comprehensive manner. The goal of
coordination is to ensure that programs do not operate in isolation.
The more your activities are coordinated with other agencies in your
service area, the more points you will receive. An example of
coordination of activities would be the applicant's partnership with an
existing child day care facility (which is not funded by program) that
provides day care services to the Youthbuild participants during the
hours they are being trained.
b. Self-Sufficiency (1 point). Describe how your program will
provide participants the ability to achieve: Independent living,
economic empowerment, educational opportunities, housing choice or an
improved environment that is free from environmental hazards such as
lead hazards, brownfields, overcrowded housing, etc.
c. Sustainability (2 points). For applicants that have not received
a prior Youthbuild award, describe how your program will be financially
self-sustaining by decreasing dependence on Youthbuild funding and
relying more on state, local, and private funding so your activities
can be continued after your grant award is complete. For previous
Youthbuild grantees, describe how your program demonstrates a
progression of reduced reliance on HUD's Youthbuild funds, as either a
reduced Youthbuild grant amount or increased overall program level with
Youthbuild as a declining share of the total.
c. Housing Program Priority (10 points). HUD will assign Housing
Program Priority points to all applications that contain evidence that
housing resources from other federal, state, local, or private sources
are available and firmly committed to cover all costs, in full, for the
following housing activities for the proposed Youthbuild program:
Acquisition, architect and engineering fees, construction, and
rehabilitation. Forms 2C, Housing Site Description, and 2C10,
Youthbuild Grant Individual Housing Project Site Estimate, must be
completed to receive the Housing Program Priority points. Applications
that do not include proper documentation of firm financial commitments
of non-Youthbuild resources or propose to use Youthbuild grant funds,
in whole or in part, or do not evidence site control, for any one of
the housing activities listed above will not receive housing program
priority points. For an applicant to receive the housing program
priority points, each letter of commitment to cover the costs of the
above activities must include the following:
(1) The organization's name;
(2) The applicant's name;
(3) The proposed program;
(4) The proposed amount of commitment and which housing
activity(ies) (i.e., acquisition, architect and engineering fees,
construction, and rehabilitation) the commitment represent(s);
(5) A signature by an official of the organization legally able to
make commitments on behalf of the organization with a statement
confirming that the authority remains in effect for a period stated in
the commitment;
(6) If the contribution is cash, the applicant, the applicant's
partner(s) or contributing entity must evidence its financial
capability through a corporate or personal financial statement or other
appropriate means. If any portion of the committed activity is to be
financed through a lending institution, the participant must evidence
the institution's commitment to fund the commitment;
(7) Affirm that its investment is contingent only upon receipt of
FY2006 Youthbuild funds and state a willingness on the part of the
signatory to sign a legally binding commitment not earlier than the
date this NOFA is published and (conditioned on HUD's environmental review
and approval of a property, where applicable) upon award of the grant.
d. Policy Priorities (5 points). Policy Priorities are further
defined in the General Section. Applicants should document the extent
HUD's policy priorities for Youthbuild listed below are enhanced by the
proposed activities. Applicants that include activities that can result
in the achievement of these departmental policy priorities, will
receive higher rating points. The four departmental policy priorities
for Youthbuild are:
(1) Ending chronic homelessness (1 point);
(2) Removal of regulatory barriers to affordable housing (up to 2
points) You must complete Form HUD-27300, Questionnaire for HUD's
Initiative on Removal of Regulatory Barriers and provide the requested
documentation to receive points for this policy priority. See the
General Section for a discussion of how points are allocated.
(3) Participation in Energy Star (1 point). Applicants must state
how they incorporate this priority into their application in order to
receive the one point.
(4) Encouraging Accessible Design Features--Visitability and
Universal design. (1 point). Applicants must state the extent to which
the proposed design incorporates visitability standards and universal
design in projects involving construction or rehabilitation. See the
General Section for further information about this policy priority.

D. Rating Factor 4: Leveraging of Non-Housing Resources (10 Points)

This Factor addresses the ability of the applicant to secure non-
housing resources from its program partners. HUD will evaluate the
extent to which firm commitments of resources are obtained from
federal, state, local, private, and nonprofit sources. The applicant
will receive points based upon the ratio of committed non-HUD resources
for non-housing activities compared to the amount of Youthbuild funds
requested in the application. (Exhibit 4B Non-Housing Program Resources
must be completed and you must provide letters of firm commitment from
the donor with the amount of cash or in-kind contribution). Applicants
submitting letters of commitment without the Exhibit 4 completed will
not receive points for this Rating Factor. Each commitment described on
Exhibit 4B for this Factor must have a firm commitment letter. In
addition, the amount of the commitment in each letter must match the
amount listed on the Form 4B.
HUD will consider the level of resources obtained for cash or in-
kind contributions to cover the following kinds of areas:
? Social services (i.e., counseling and training);
? Use of existing vocational, adult, and bilingual
educational courses;
? Donation of labor, resource personnel, supplies, teaching
materials, classroom, and/or meeting space.

[[Page 11894]]

1. Firm commitment for non-housing resources. Each letter of
commitment to cover the costs of the above activities must include the
following:
a. The organization's name;
b. The applicant's name;
c. The proposed program;
d. The proposed amount of commitment and which non-housing
activity(ies) the commitment represent(s);
e. A signature by an official of the organization legally able to
make commitments on behalf of the organization with a statement
confirming that the authority remains in effect for a period stated in
the commitment;
f. An affirmation that its investment is contingent only upon
receipt of FY2005 Youthbuild funds and a statement of willingness on
the part of the signatory to sign a legally binding commitment not
earlier than the date this NOFA is published.
2. Resources from other federal, state, local governments, or
private entities. HUD encourages use of existing federal, state, local
governments, or private and nonprofit housing programs as part of your
Youthbuild program. In addition, HUD encourages use of other non-
Youthbuild funds available for vocational, adult, and bilingual
education programs, or for job training under the Workforce Investment
Act and the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (48 U.S.C. 1601 et seq.).

E. Rating Factor 5: Achieving Results and Program Evaluation (12 Points)

This factor emphasizes HUD's commitment to ensure that applicants
keep promises made in their application to rigorously assess their
performance and ensure performance goals are met. Achieving results
means you, the applicant, have clearly identified the benefits, or
outcomes of your program. Outcomes are ultimate goals. Performance
indicators are the quantifiable measures of proposed and actual
achievements. Benchmarks or outputs are interim activities or products
that lead to the ultimate achievement of your goals. Performance
measurement requires that you identify program outcomes, interim
products or benchmarks, and performance indicators that will allow you
to assess your performance. Performance indicators must be quantified
and measure actual achievements against anticipated achievements. You
should identify what you are going to measure, how you are going to
measure it, and the steps you have in place to make adjustments to your
work plan if performance targets are not met within established
timeframes. Applicants are required to complete the Logic Model form
HUD-96010 to receive any points under this factor. This rating factor
reflects HUD's goal to embrace high standards of ethics, management and
accountability.
The highest rated applications under this factor will have a clear
plan with measurable performance indicators to address the Youthbuild
program's outcome goals--to provide economically disadvantaged youth
with opportunities to attain an educational experience that will
enhance their employment skills as a means of achieving self-
sufficiency. The application may also optionally address other related
indicators of relevant outcomes.
At a minimum, your Logic Model must include the following program
output measures:
? Number of participants enrolled in the program;
? Number of participants that graduate;
? Number of housing units constructed;
? Number of housing units rehabilitated;
? Number and percent of GEDs or certificates attained by
participants (for percentage calculation, numerator: the number of
participants who attain a diploma, GED or certificate; denominator:
Those who are participating in the Youthbuild program).
? Number and percent of graduates placed in employment or
education (for percentage calculation, numerator: The number of
graduates who have entered employment or enrolled in post secondary
education; denominator: the number of graduates from the Youthbuild
program); and
? Number and percentage of participants who made literacy
and numeracy gains (measures the increase in literacy and numeracy
skills of participants through a common assessment tool administered at
program registration and regular intervals thereafter); for percentage
calculation, numerator: the number of Youthbuild program participants
who increase one or more education functioning levels; denominator: the
number of Youthbuild program participants who have completed a year in
the program).
? Efficiency or annual cost per participant (numerator:
grant amount; denominator: number of Youthbuild participants.)
An applicant should agree to cooperate with any HUD-approved
evaluation by making staff available for interview, providing lists of
participants and their contact information, and making available files
under appropriate assurance of confidentiality of records.
For FY2006, HUD is considering a new concept for the Logic Model.
The new concept is a Return on Investment statement. HUD will be
publishing a separate notice on the ROI concept.

F. Bonus Points (2 Points)

HUD will award two bonus points to each application that includes a
valid form HUD-2990 certifying that the proposed activities/projects in
the application are consistent with the strategic plan for an
empowerment zone (EZ) designated by HUD or the United States Department
of Agriculture (USDA), the tax incentive utilization plan for an urban
or rural renewal community designated by HUD (RC), or the strategic
plan for an enterprise community designated in round II by USDA (EC-II)
and that the proposed activities/projects will be located within the
RC/EZ/EC-II identified above and are intended to serve the residents. A
listing of the RC/EZ/EC-IIs is available on the Internet at http://
www.hud.gov/cr. Your application must contain the completed
certification form HUD-2990 to be considered for RC/EZ/EC-II bonus points.

VI. Reviews and Selection Process

A. Rating and Ranking

1. General. To review and rate applications, HUD may establish
panels including officials from other federal agencies and outside
experts or consultants to obtain certain expertise and outside points
of view.
2. Rating. All applications for funding will be evaluated against
the rating factors described in Section V. of this NOFA.
3. Ranking. Applications will be ranked separately within each of
the three funding categories. Applications will be selected for funding
in accordance with their rank order in each category.
4. Eligibility for Selection. To be eligible for funding, an
application must have an overall minimum score of 75 points, including
a minimum score of 10 points in Factor 1. If two or more applications
are rated fundable and have the same score, but there are insufficient
funds to fund all of them, HUD will select the application(s) with the
highest score for Rating Factor 3 (Soundness of Approach). If two or
more applications still have the same score, the highest score in the
following factors will be selected sequentially

[[Page 11895]]

until one highest score can be determined: Rating Factor 1 (Capacity of
the Applicant and Relevant Organization); Rating Factor 4 (Leveraging
of Resources) and Rating Factor 2 (Need/Extent of the Problem).
5. Adjustments to Funding. Any available funds that remain after
all applications within funding range have been selected or obligated
will be reallocated between categories 1 and 2 by rank order between
applications at the discretion of the selecting official or designee.
Category 3 funds are appropriated as a set-aside, and can not be reallocated.
6. Corrections to Deficient Applications. The General Section
provides the procedures for corrections to deficient applications.

B. Anticipated Announcement and Award Dates

HUD anticipates making award announcements no later than four
months after the application submission deadline date.

VII. Award Administration Information

A. Award Notices

1. Notification of Approval or Disapproval. HUD will notify you
whether or not you have been selected for an award. If you are
selected, HUD's notice to you of the amount of the grant award based on
the approved application will constitute HUD's CONDITIONAL approval,
subject to negotiation and execution of the grant agreement by HUD.
2. Application Debriefing. Applicants who wish to have a debriefing
of their application must send a written request to: Youthbuild Program
Office; Office of Economic Development; Office of Community Planning
and Development; 451 Seventh Street, SW., Room 7136; Washington, DC
20410-7000. Debriefing information can be found in the General Section
of the SuperNOFA.

B. Administrative and National Policy Requirements

1. Applicable OMB Circulars. Please refer to the General Section.
2. Applicable Executive Orders and Statutes. Please note that
Executive Order 13202, ``Preservation of Open Government Neutrality
Towards Government Contractors' Labor Relations on Federal and
Federally Funded Construction Contracts'' and Section 6002 of the Solid
Waste Disposal Act covering the procurement of recovered materials may
be applicable (see the General Section.)
3. Executive Order 13166, Improving Access To Services For Persons
With Limited English Proficiency (LEP). Consistent with Executive Order
13166, ``Improving Access to Services for Persons with Limited English
Proficiency,'' issued on August 11, 2000, all HUD recipients should
take reasonable steps to provide certain materials and information
available in languages other than English. The determination as to what
materials, languages, and modes of translation/interpretation services
should be used shall be based upon:
a. The specific needs and capabilities of the LEP populations among
the award recipient's program beneficiaries and potential beneficiaries
of assistance (e.g. tenants, community residents, counselees, trainees,
etc.);
b. The recipient's primary and major program purposes;
c. Resources of the recipient and size of the program; and
d. Local housing, demographic, and community conditions and needs.
HUD's LEP recipient Guidance was published in the Federal Register (68
FR 70967) on December 19, 2003 and further guidance may be found at
http://www.lep.gov.
4. Reporting Requirements:
a. Progress reports and Logic Model reporting. Youthbuild grantees
are required to submit progress reports to the appropriate HUD field
office in accordance with 24 CFR Part 585.403, using HUD Form 40201. If
you receive a FY 2006 Youthbuild award, you will be required to update
your Logic Model periodically, addressing the time schedule,
accomplishments to date and results and submit it to HUD in conjunction
within the timeframes established for the Youthbuild progress reports.
See Logic Model information in the General Section.
b. Racial and Ethnic Data reporting. HUD requires that funded
recipients collect racial data and ethnic beneficiary data. HUD has
adopted the Office of Management and Budget's Standards for the
Collection of Racial and Ethnic Data. In view of these requirements,
you should use form HUD-27061, Racial and Ethnic Data Reporting Form
(instructions for its use), found on http://www.HUDclips.org,
a comparable program form, or a comparable electronic data system for
this purpose.

VIII. Agency Contact(s)

For technical assistance in downloading an application package from
Grants.gov/Apply, contact the Grants.gov help desk at 800-518-Grants or
send an e-mail to support@grants.gov.
For programmatic information concerning the Youthbuild program,
contact Ms. Phyllis Williams, Community Planning and Development
Specialist; Office of Economic Development; Office of Community
Planning and Development; U.S. Department of Housing and Urban
Development; 451 Seventh Street, SW., Room 7149; Washington, DC 20410-
7000; telephone (202) 708-2035 (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 800-
877-8339. Prior to the application deadline, HUD's staff will be
available to provide general guidance on the application submission
process and location of information, but not guidance in preparing your
application.

A. Satellite Broadcast

HUD will hold an information broadcast via satellite for potential
applicants to learn more about the program and preparation of an
application. For more information about the date and time of this
broadcast, you should consult the HUD Web site at http://www.hud.gov.

B. Paperwork Reduction Act

The information collection requirements contained in this document
have been approved by the Office of Management and Budget (OMB) under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned
OMB control number 2506-0142. In accordance with the Paperwork
Reduction Act, HUD may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless the
collection displays a currently valid OMB control number. Public
reporting burden for the collection of information is estimated to
average 45 hours per annum per respondent for the application and grant
administration. This includes the time for collecting, reviewing, and
reporting the data for the application, semi-annual reports, and final
report. The information will be used for grantee selection and
monitoring the administration of funds. Response to this request for
information is required in order to receive the benefits to be derived.

BILLING CODE 4210-01-P

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Housing Choice Voucher Family Self-Sufficiency Program Coordinators

Overview Information

A. Federal Agency Name: Department of Housing and Urban
Development, Office of Public and Indian Housing, Office of Public
Housing and Voucher Programs.
B. Funding Opportunity Title: Housing Choice Voucher (HCV) Family
Self-Sufficiency (FSS) Program Coordinators.
C. Announcement Type: Initial announcement.
D. Funding Opportunity Number: The Federal Register number is FR-
5030-N-14. The OMB approval number for this program is 2577-0178.
E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.871,
Section 8 Housing Choice Vouchers.
F. Dates: The application deadline date is May 16, 2006. Please see
the General Section for timely receipt requirements.
G. Additional Overview Content Information: The purpose of the HCV
FSS program is to promote the development of local strategies to
coordinate the use of assistance under the HCV program with public and
private resources to enable participating families to increase earned
income, reduce or eliminate the need for welfare assistance, and make
progress toward economic independence and self-sufficiency. The FSS
program and this FSS NOFA support the Department's strategic goal of
helping HUD-assisted renters make progress toward self-sufficiency. The
FSS program provides critical tools that can be used by communities to
support welfare reform and help families develop new skills that will
lead to economic self-sufficiency. As a result of their participation
in the FSS program, many families have achieved stable, well-paid
employment. An FSS program coordinator assures that program
participants are linked to the supportive services they need to achieve
self-sufficiency.

Full Text of Announcement

I. Funding Opportunity Description

A. Authority and Program Description

Public Law 109-115, 119 Stat. 2396, approved November 30, 2005,
allows funding for program coordinators under the HCV FSS program.
Through annual NOFAs, HUD has provided funding to public housing
agencies (PHAs) that are operating HCV FSS programs to enable those
PHAs to employ program coordinators to support their HCV FSS programs.
In the Fiscal Year (FY) 2006 HCV FSS Program Coordinator NOFA, HUD is
again making funding available to PHAs to employ FSS program
coordinators and FSS homeownership program coordinators for one year.
Funding priority under this NOFA will be provided to applicants with
Public Housing Information Center (PIC) data confirming that their FSS
families have purchased homes and to applicants whose PIC data
demonstrate program accomplishments such as increased HCV FSS program
size, increased earned income of program participants, and families
successfully completing their FSS contracts. HUD will accept
applications from both new and renewal PHAs that have HUD approval to
administer an HCV FSS program. PHAs funded under the HCV FSS NOFA in
FY2005 are considered ``renewal'' PHAs in this NOFA. These renewal PHAs
are invited to apply for funds to continue previously funded HCV FSS
program coordinator and FSS homeownership coordinator positions that
they have filled.
Because of the importance of the FSS program in helping families
increase earned income and develop assets, HUD will also accept
applications from ``new'' PHAs, PHAs that do not qualify as renewal
PHAs as defined under this FSS NOFA. The maximum number of positions
that a new applicant PHA, including new PHA joint applicants, may
receive is one full-time FSS program coordinator.
To support the Department's initiatives on Colonias, a selection
preference is again included in this NOFA for ``new'' applicant PHAs
that provide services and support to rural under-served communities in
the Southwest Border regions of Arizona, California, New Mexico, and
Texas. See Section III.C.3.c. of this NOFA for requirements that must
be met to qualify for the Colonias preference.
PHAs are encouraged to outreach to persons with disabilities who
are HCV program participants and might be interested in participating
in the FSS program and to include agencies on their FSS Program
Coordinating Committee (PCC) that work with and provide services for
families with disabilities.
Applicants must administer the FSS program in accordance with HUD
regulations and requirements in 24 CFR Part 984 which govern the HCV
FSS Program and must comply with the existing HCV program requirements,
notices and guidebooks.

B. Number of Positions for Which Eligible PHAs May Apply

Eligible PHAs may apply for funding for HCV FSS program coordinator
positions under this NOFA as follows:
1. Renewal PHA Applicants. PHAs that qualify as eligible renewal
PHA applicants under this NOFA may apply for continuation of each FSS
coordinator position, including homeownership coordinator positions,
awarded under the HCV FSS NOFA in FY2005 that has been filled by the PHA.
2. New PHA Applicants. New PHA applicants may apply for HCV FSS
program coordinator positions as follows: (a) Up to one full-time HCV
FSS coordinator position for a PHA applicant with HUD approval to
administer a HCV FSS program of 25 or more FSS slots. (b) Up to one
full-time HCV FSS coordinator position per application for joint PHA
applicants that together have HUD approval to administer a total of at
least 25 HCV FSS slots.

C. Definitions

The following definitions apply to the funding available under this NOFA.
1. Renewal PHA Applicant. A PHA or PHAs that received funding under
the HCV FSS NOFA in FY2005.
2. New PHA Applicant. PHAs that did not receive funding under the
HCV FSS NOFA in FY2005 that have HUD approval to administer a HCV FSS
program of at least 25 slots or that fulfill the 25 slot minimum by
applying jointly with one or more other PHAs.
3. FSS Program Size. The total number of HCV FSS program slots
identified in the PHA's HUD-approved FSS Action Plan, or if requested
by Moving to Work (MTW) PHA applicants, the number of slots in the
applicant's MTW agreement. The total may include both voluntary and
mandatory HCV FSS program slots. This number is used in determining the
eligibility of new applicant PHAs under this NOFA.
4. Qualifying FSS Homeownership Program. Qualifying homeownership
programs include the HCV Homeownership Program and other programs
administered by the PHA or other entities that prepare HCV program FSS
participants for making the transition from renting to homeownership.
5. The Number of HCV FSS Program Participants. The total number of
families shown in HUD's PIC data system or applicable MTW report as
enrolled in the applicant's HCV FSS program at the end of a calendar
year plus those families that successfully

[[Page 11898]]

completed their FSS contracts, during that calendar year.
6. Percentage of Families with Positive FSS Escrow Balances. A
percentage that will be computed by HUD and used to determine funding
order of priority 2 applicants under this NOFA. It is the sum of the
number of HCV FSS families with positive escrow balances and the number
of families that successfully completed their FSS contracts as a
percentage of HCV FSS families with FSS progress reports. This
calculation will be made using data for the period from December 31,
2004 through December 31, 2005 that has been submitted to HUD on the
Form HUD-50058. For MTW applicants, a comparable reporting source may
be used.
7. HCV Program Size. The number of HCVs in a PHA's program as
determined by HUD using Voucher Management System (VMS) data.
8. HCV FSS Program Size Increase Percentage. A percentage
calculated for renewal PHA applicants whose number of HCV FSS
participants in calendar year 2005 is higher than their calendar year
2004 number of participants.

II. Award Information

A. Available Funds

This NOFA announces the availability of approximately $47 million
in FY2006 to employ FSS program and FSS homeownership coordinators for
the HCV FSS program. If additional funding becomes available during
FY2006, HUD may increase the amount available for coordinators under
this NOFA. A maximum of $65,000 is available for each full-time
coordinator position funded. Salaries are to be based on local
comparables. The funding will be provided as a one-year HCV funding
increment under the PHA's Annual Contributions Contract (ACC). HUD
reserves the right to adjust funding for renewal positions in order to
ensure a fair and reasonable distribution of funding.

III. Eligibility Information

A. Eligible Applicants.

PHAs eligible to apply for funding under this NOFA are:
1. Renewal PHA Applicants. Those PHAs that received funding under
the HCV FSS NOFA in FY2005. To continue to qualify as renewal PHAs, the
FY2006 application of joint applicants must include at least one PHA
applicant that meets this standard. Joint applicants can change the
lead PHA in their FY2006 application. A PHA that was originally funded
as part of a joint application that wishes to now apply separately
would continue to be considered a renewal PHA applicant for funding
purposes, but must be able to meet the FSS minimum program size
requirement of a HUD-approved HCV FSS program of at least 25 slots that
applies to new applicant PHAs.
2. New PHA Applicants. PHAs that were not funded under the HCV FSS
NOFA in FY2005. The new applicant PHA must be authorized through its
HUD-approved FSS Action Plan to administer an HCV FSS program of at
least 25 slots, or be a PHA with HUD approval to administer an HCV FSS
program of fewer than 25 slots that applies jointly with one or more
other PHAs so that together they have HUD approval to administer at
least 25 HCV FSS slots. Joint applicants must specify a lead co-applicant
that will receive and administer the FSS program coordinator funding.
3. MTW PHAs. New and renewal PHAs that are under MTW agreements
with HUD may qualify for funding under this NOFA if the PHA administers
an FSS program. When determining the size of a new applicant MTW PHA's
HUD-approved FSS program, the PHA may request that the number of FSS
slots reflected in the PHA's MTW agreement be used instead of the
number in the PHA's FSS Action Plan.
4. Troubled PHAs. a. A PHA that has been designated by HUD as a
troubled PHA under the Section Eight Management Assessment Program
(SEMAP), or that has serious program management findings from Inspector
General audits or serious outstanding HUD management review or
Independent Public Accountant (IPA) audit findings for the PHA's HCV or
Moderate Rehabilitation programs that are resolved prior to this NOFA's
application due date is eligible to apply under this NOFA. Serious
program management findings are those that would cast doubt on the
capacity of the PHA to administer its HCV FSS program in accordance
with applicable HUD regulatory and statutory requirements.
b. A PHA whose SEMAP troubled designation has not been removed by
HUD or whose major program management findings or other significant
program compliance problems have not been resolved by the application
due date may apply if it meets the requirements stated in Section
III.C.3.e. of this NOFA.

B. Cost Sharing or Matching

None required.

C. Other

1. Eligible Activities. Funds awarded to PHAs under this FSS NOFA
may only be used to pay salaries and fringe benefits of HCV FSS program
staff. Funding may be used to employ or otherwise retain for one year
the services of HCV FSS program coordinators and HCV FSS homeownership
coordinators. FSS coordinator support positions funded under previous
FSS NOFAs that made funding available for such FSS positions may be
continued. A part-time program coordinator may be retained where appropriate.
2. Threshold Requirements.
a. All Applicants.
(1) Each applicant must qualify as an eligible PHA under Section
III.A. of this NOFA and must have submitted their FSS application by
the application due date and in the format required in Section IV. of
this NOFA.
(2) All applications must include a Dun and Bradstreet Universal
Numbering System (DUNS) number. (See the General Section for further
information about the DUNS number requirement.)
(3) Civil Rights Thresholds, Non-discrimination, Affirmatively
Furthering Fair Housing. A copy of each applicant PHA's most recent
plan for Affirmatively Furthering Fair Housing for the HCV program must
be on file at the PHA's local HUD field office by the application due
date of this NOFA. All applicants must comply with these requirements
and with Section III.C. of the General Section. Section 3 of the
Housing and Urban Development Act of 1968 does not apply to this program.
(4) The PHA must have a financial management system that meets
federal standards. See the General Section regarding those applicants
that may be subject to HUD's arranging for a pre-award survey of an
applicant's financial management system.
(5) Applicants must comply with the requirements for funding
competitions established by the HUD Reform Act of 1989 (42 U.S.C. 3531
et seq.) and other requirements as defined in the General Section.
b. Renewal Applicants.
(1) Continued funding for existing coordinator positions. In
addition to meeting the requirements of Section III.A. of this FSS
NOFA, renewal PHA applicants must continue to operate an HCV FSS
program, have filled eligible FSS program coordinator positions for
which they are seeking renewal funding, executed FSS contracts of
participation with HCV FSS program families and submitted reports on
participant

[[Page 11899]]

families to HUD via the form HUD-50058.
c. New Applicants. New applicants must meet the requirements of
Section III.A. and Section III. C.2.a of this FSS NOFA.
3. Program Requirements.
a. Salary Comparables. For all positions requested under this NOFA,
evidence of salary comparability to similar positions in the local
jurisdiction must be kept on file in the PHA office.
b. FSS Action Plan. The requirements for the FSS Action Plan are
stated in 24 CFR 984.201. For a new PHA applicant to qualify for
funding under this NOFA, the PHA's initial FSS Action Plan or amendment
to change the number of HCV FSS slots in the PHA's previously HUD-
approved FSS Action Plan must be submitted to and approved by the PHA's
local HUD field office prior to the application due date of this FSS
NOFA. An FSS Action Plan can be updated by means of a simple one-page
addendum that reflects the total number of HCV FSS slots (voluntary and
/or mandatory slots) the PHA intends to fill. New PHA applicants with
previously approved HCV FSS Action Plans may wish to confirm the number
of HUD-approved slots their local HUD field office has on record for
the PHA. A new applicant MTW PHA may request that the number of FSS
slots in its MTW agreement be used instead of the number of slots in
the PHA's FSS Action Plan.
c. Colonias Preference. New applicant PHAs claiming the Colonias
preference must meet the requirements of Sections III.A., III.C.2.a.
and III.C.2.c. of this FSS NOFA and must operate in a Southwest border
area that contains Colonia communities and administer programs that
include outreach to members of those Colonia communities. Attachment A
of this NOFA provides a listing of PHAs in Arizona, California, New
Mexico, and Texas that HUD has identified as operating in areas
containing Colonia communities. PHAs not listed in Attachment A that
are claiming the Colonias preference will be required to submit a
written request that HUD determine their eligibility for the
preference. The request must be submitted prior to the application due
date and must be sent to Lorenzo ``Larry'' Reyes, Coordinator, SW
Border Colonias and Migrant Farmworker Initiative, Office of
Departmental Operations and Coordination, Room 3120, Department of
Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410.
d. Homeownership Preferences. See priority funding categories in
Section V.B.2. of this FSS NOFA. Reported HCV FSS home purchase numbers
will be subject to post audit.
e. Troubled PHAs. A PHA whose SEMAP troubled designation has not
been removed by HUD or that has major program management findings or
other significant program compliance problems that have not been
resolved by the application due date, may apply if the PHA submits an
application that designates another organization or entity that is
acceptable to HUD and that:
(1) Includes an agreement by the other organization or entity to
administer the FSS program on behalf of the PHA; and
(2) In the instance of a PHA with unresolved major program
management findings, includes a statement that outlines the steps the
PHA is taking to resolve the program findings.
Immediately after the publication of this NOFA, the Office of
Public Housing in the local HUD field office will notify, in writing,
those PHAs that have been designated by HUD as troubled under SEMAP,
and those PHAs with unresolved major program management findings or
other significant program compliance problems that are not eligible to
apply without such an agreement. Concurrently, the local HUD field
office will provide a copy of each such written notification to the
Director of the Grants Management Center.
f. Conducting Business in Accordance with Core Values and Ethical
Standards. To reflect core values, all PHAs shall develop and maintain
a written code of conduct in the PHA administrative plan that:
(1) Requires compliance with the conflict of interest requirements
of the HCV Program at 24 CFR 982.161; and
(2) Prohibits the solicitation or acceptance of gifts or
gratuities, in excess of a nominal value, by any officer or employee of
the PHA, or any contractor, subcontractor, or agent of the PHA. The
PHA's administrative plan shall state PHA policies concerning PHA
administrative and disciplinary remedies for violation of the PHA code
of conduct. The PHA shall inform all officers, employees, and agents of
its organization of the PHA's code of conduct. See General Section for
additional information on the Code of Conduct requirement.

IV. Application and Submission Information

A. Addresses To Request Application Package

1. Web site. A copy of this funding announcement for the HCV FSS
Program may be downloaded from the following Web site:
http://www.grants.gov.
2. Further Information. When requesting information, please refer
to the name of the program you are interested in. The NOFA Information
Center opens for business simultaneously with the publication of the
SuperNOFA. You can also obtain information on this NOFA and download
application information for this NOFA through the Web site,
http://www.grants.gov.
3. Technical Assistance. See Section VII. of this FSS funding
announcement.

B. Content and Form of Application Submission

1. Content of Application. Each new and renewal PHA must complete
the form SF-424, the SF-LLL, if appropriate, and the Form HUD-52651,
the HCV FSS application form. In addition, the application must include
a completed Logic Model (form HUD 96010) showing proposed performance
measures applicable to the one-year term of the funding requested under
this NOFA. See the General Section for information on, and a copy of,
the Logic Model. A copy of the HUD-52651 is available at
http://www.Grants.gov/Apply, Download Instructions for the Housing Choice
Voucher FSS program or at HUD's website at http://www.hud.gov/offices/
adm/grants/fundsavail.cfm. In completing the SF-424, renewal PHAs
should select the continuation box on question 2, type of application. Both
new and renewal PHA applicants should enter the proposed Annual
Contributions Contract (ACC) amendment effective and ending dates for
the FSS coordinator funding in section 17 of the SF-424. In section 18
of SF-424, estimated funding, complete only 18.a., which will be the
amount requested from HUD in the FY2006 FSS application, and 18.g., Total.

C. Submission Date and Time

Your completed application must be received and validated by
Grants.gov no later than 11:59:59 p.m. eastern time on the application
deadline date of May 16, 2006. Applicants should carefully read the
section titled ``APPLICATION and SUBMISSION INFORMATION'' in the
General Section.

D. Intergovernmental Review

This NOFA is not subject to Executive Order (EO) 12372,
Intergovernmental Review of Federal Programs.

E. Funding Restrictions

1. Salary Cap. Awards under this NOFA are subject to a cap of
$65,000 per year per full time coordinator position funded. Under this
NOFA, if PHAs apply jointly, the $65,000

[[Page 11900]]

maximum amount that may be requested per position applies to up to one
full time coordinator position for the application as a whole, not to
each PHA separately.
2. Limitation on Renewal Funding Increases. For renewal coordinator
positions, PHAs will be limited to a one percent increase above the
amount of the most recent award for the position unless a higher
increase is approved by the local HUD field office after review of the
PHA's written justification and at least three comparables that must be
submitted to the field office by the application due date of this NOFA.
Examples of acceptable reasons for increases above one percent would be
need for a coordinator with higher level of skills or to increase the
hours of a part time coordinator to full time. Total positions funded
cannot exceed the maximum number of positions for which the PHA is
eligible under this NOFA.
3. Ineligible Activities. a. Funds under this NOFA may not be used
to pay the salary of an FSS coordinator for a public housing FSS
program. An HCV FSS program coordinator may only serve HCV families
while the public housing FSS program serves only public housing
residents. In FY2006, funding for public housing FSS program
coordinators is being made available through the Public Housing
Resident Opportunities and Self-Sufficiency (ROSS) NOFA for Public
Housing FSS Program Coordinators that is included in the FY2006 SuperNOFA.
b. Funds under this FSS NOFA may not be used to pay for services
for FSS program participants.

F. Other Submission Requirements

1. Application Submission and Receipt Procedures. See the General
Section. Electronic application submission is mandatory unless an
applicant requests, and is granted, a waiver to the requirement.
Procedures for obtaining a waiver are contained in the General Section.
If an applicant is granted a waiver, then the approval will provide
instructions for submitting paper copies to the appropriate HUD
Office(s). All paper applications must be received by the application
deadline date to meet the requirements for timely submission.

V. Application Review Information

A. Criteria

The funds available under this NOFA are being awarded based on
demonstrated performance. Applications are reviewed by the local HUD
field office and Grants Management Center (GMC) to determine whether or
not they are technically adequate based on the NOFA requirements. Field
offices will provide to the GMC in a timely manner, as requested,
information needed by the GMC to make its determination, such as the
HUD-approved HCV FSS program size of new PHA applicant and information
on the administrative capabilities of PHAs. Categories of applications
that will not be funded are stated in Section V.B.6.of this FSS NOFA.

B. Review and Selection Process

1. Technically Acceptable Applications. All technically adequate
applications will be funded to the extent funds are available.
2. Funding Priority Categories. If HUD receives applications for
funding greater than the amount made available under this NOFA, HUD
will divide eligible applications into priority categories as follows:
Funding Category 1--Applications from eligible renewal PHAs with
qualifying homeownership programs with a minimum of ten (10) HCV FSS
program participants or graduates that purchased homes between October
1, 2000 and the publication date of this FSS NOFA and an increase of at
least ten (10) percent in the number of participants in the applicant's
HCV FSS program from calendar year 2004 to calendar year 2005. Both the
number of home purchases and the percentage increase in the number the
HCV FSS program participants will be determined by HUD using PIC data
from form HUD-50058 or as otherwise reported for MTW PHAs.
Funding Category 2--Eligible renewal PHA applicants with programs
that have families with positive escrow balances and/or families that
successfully completed their FSS contracts between December 31, 2004
and December 31, 2005.
Funding Category 3--Eligible renewal PHA applicants with qualifying
homeownership programs and an increase in the number of HCV FSS program
participants of at least ten (10) percent from calendar year 2004 to
calendar year 2005.
Funding Category 4--New PHA applicants with HUD approval to
implement an FSS program of at least 25 slots.
3. Order of Funding. Starting with Funding Category 1, HUD will
first determine whether there are sufficient monies to fund all
eligible positions requested in the funding category. If available
funding is not sufficient to fund all positions requested in the
category, HUD will fund applications in the following order:
a. Funding Category 1. HUD will calculate the Percentage Increase
of HCV FSS Program Participants for each eligible applicant and will
use this percentage in making funding decisions. HUD will fund eligible
applicants in order starting with those that have the highest
Percentage Increase of HCV FSS Program Participants . If funding is not
sufficient to fund all applicants with the same Percentage Increase of
HCV FSS Program Participants, HUD will select among eligible applicants
by HCV program size starting with eligible applicants with the smallest
HCV program size.
b. Funding Category 2. If funds remain, HUD will process requests
of eligible Funding Category 2 applicant PHAs. HUD will first calculate
the Percentage of Families with Positive FSS Escrow Balances for all
eligible Funding Category 2 applicants. If there are not sufficient
monies to fund all eligible funding category 2 applicants, HUD will
fund eligible applications starting with those with the highest
positive escrow percentage. If there are not sufficient monies to fund
all applications with the same positive escrow percentage, HUD will
select eligible applicants in order by HCV program size starting with
eligible applicants with the smallest HCV program size.
c. Funding Category 3. If funds remain, HUD will process eligible
Funding Category 3 applications. If there is not enough funding for all
applicants, HUD will use the Percentage Increase of HCV FSS
Participants to determine selection order, starting with applicants
with the highest Percentage Increase of HCV FSS Participants. If funds
are not sufficient for all applicants with the same Percentage Increase
of HCV FSS Participants, HUD will fund eligible applicants by HCV
program size starting with eligible applicants with the smallest HCV
program size.
d. Funding Category 4. If funds remain after all Category 1 through
3 applicants have been funded, HUD will process applications from
eligible Category 4 new PHA applicants. If there are not sufficient
monies to fund all eligible Category 4 PHA applicants, HUD will first
fund eligible applications from those PHAs qualifying for the Colonias
preference. If there are not sufficient monies to fund all eligible
Colonias PHA applicants, HUD will fund them starting with the smallest
HCV program size first. If funding remains after funding all eligible
Category 4 Colonias PHA applicants,

[[Page 11901]]

HUD will then begin funding eligible non-Colonias applicants by HCV
program size starting with eligible applicants with the smallest HCV
program size first.
4. Based on the number of applications submitted, the GMC may elect
not to process applications for a funding priority category where it is
apparent that there are insufficient funds available to fund any
applications within the priority category.
5. Corrections to Deficient Applications. The General Section
provides the procedures for corrections to deficient applications.
6. Unacceptable Applications. After the technical deficiency
correction period (as provided in the General Section), the GMC will
disapprove PHA applications that it determines are not acceptable for
processing. Applications from PHAs that fall into any of the following
categories are ineligible for funding under this NOFA and will not be
processed:
a. An application submitted by an entity that is not an eligible
PHA as defined under Section III.A. and Section III.C. of this FSS NOFA
or an application that does not comply with the requirements of Section
IV.B., IV.C., and IV.F. of this FSS NOFA.
b. An application from a PHA that does not meet the fair housing
and civil rights compliance requirements of the General Section.
c. An application from a PHA that does not comply with the
prohibition against lobbying activities of the General Section.
d. An application from a PHA that as of the application due date
has not made progress satisfactory to HUD in resolving serious
outstanding Inspector General audit findings, or serious outstanding
HUD management review or IPA audit findings for the HCV program and/or
Moderate Rehabilitation program or has a ``troubled'' rating under
SEMAP, and has not designated another organization acceptable to HUD to
administer the FSS program on behalf of the PHA as required in Section
III.C.3.e. of this FSS NOFA.
e. An application from a PHA that has been debarred or otherwise
disqualified from providing assistance under the program.
f. An application that did not meet the application due date and
timely receipt requirements as specified in this NOFA and the General
Section.
g. Applications will not be funded which do not meet the Threshold
requirements identified in this NOFA and the General Section.

C. Anticipated Announcement and Award Dates

It is anticipated that award announcements will take place during
either the month of July or August 2006.

VI. Award Administration Information

A. Award Notices

Successful applicants will receive an award letter from HUD.
Funding will be provided to successful applicants as an amendment to
the ACC of the applicant PHA. In the case of awards to joint
applicants, the funding will be provided as an amendment to the ACC of
the lead PHA that was identified in the application.
Unsuccessful applicants will receive a notification of rejection
letter from the GMC that will state the basis for the decision. The
applicant may request an applicant debriefing. Beginning not less than
30 days after the awards for assistance are publicly announced in the
Federal Register and for at least 120 days after awards for assistance
are announced publicly, HUD will, upon receiving a written request,
provide a debriefing to the requesting applicant. (See the General
Section for additional information regarding a debriefing.) Applicants
requesting to be debriefed must send a written request to: Iredia
Hutchinson, Director; Grants Management Center; U. S. Department of
Housing and Urban Development, 501 School Street, SW., Suite 800;
Washington, DC 20024.

B. Administrative and National Policy Requirements

1. Environmental Impact. No environmental review is required in
connection with the award of assistance under this NOFA, because the
NOFA only provides funds for employing a coordinator that provides
public and supportive services, which are categorically excluded from
environmental review under the National Environmental Policy Act of
1969 (42 U.S.C. 4321) and not subject to compliance actions for related
environmental authorities under 24 CFR 50.19(b)(4) and (12).
2. HUD's Strategic Goals. HUD is committed to ensuring that
programs result in the achievement of HUD's strategic mission. The FSS
program and this FSS NOFA support the Department's strategic goals of
increasing homeownership activities and helping HUD-assisted renters
make progress toward self-sufficiency by giving funding preference to
PHAs whose FSS programs show success in moving families to self-
sufficiency and homeownership. You can find out about HUD's Strategic
Framework and Annual Performance Plan at
http://www.hud.gov/offices/cfo/reports/cforept.cfm.
3. HUD Policy Priorities. This NOFA supports HUD's policy
priorities of providing increased homeownership opportunities and
increased self-sufficiency of low-income families through employment.
Consequently, funding priority in this NOFA will be given to those PHA
applicants that demonstrate that a minimum of 10 of their FSS families
have become homeowners that have increased their FSS program size by at
least 10 percent in calendar year 2005 and to applicants with program
participants who have increased their earned income since enrolling in
FSS and/or have families that completed their FSS contracts in the last
calendar year. See the General Section for a full discussion of HUD's
policy priorities.

C. Reporting

Successful applicants must report activities of their FSS
enrollment, progress and exit activities of their FSS program
participants through required submissions of the Form HUD-50058. HUD's
assessment of the accomplishments of the FSS programs of PHAs funded
under this NOFA will be based primarily on PIC system data obtained
from the Form HUD-50058. MTW PHAs that do not report to HUD on the Form
HUD-50058 will be asked to submit an annual report to HUD with the same
information on FSS program activities that is provided to HUD by non-
MTW PHAs via the Form HUD-50058. An applicant is also required to
submit a completed Logic Model showing accomplishments against proposed
outputs and outcomes as part of their annual reporting requirement to
HUD. Applicants shall use quantifiable data to measure performance
against goals and objectives outlined in their Logic Model. An annual
Performance Report consisting of the updated Logic Model must be
submitted to the Public Housing Director in the applicant's local HUD
field office no later than 30 days after the ending date of the one-
year funding increment provided to the applicant under this NOFA. For
FY2006, HUD is considering a new concept for the Logic Model. The new
concept is a Return on Investment (ROI) statement. HUD will be
publishing a separate notice on the ROI concept. In addition, HUD
requires that funded recipients collect racial and ethnic beneficiary
data. It has adopted the Office of Management and Budget's Standards
for the Collection of Racial and Ethnic Data. In view of these

[[Page 11902]]

requirements, funded recipients should use Form HUD-27061, Racial and
Ethnic Data Reporting Form. The form HUD-50058, which provides racial
and ethnic data to HUD's PIC data system, is a comparable program form.

VII. Agency Contacts

A. For Technical Assistance

For answers to your questions, you may contact the Public and
Indian Housing Resource Center at 800-955-2232. Persons with hearing or
speech impairments may access this number via TTY (text telephone) by
calling the Federal Information Relay Service at 800-877-8339. (These
are toll-free numbers). Prior to the application deadline, staff at the
numbers given above will be available to provide general guidance, but
not guidance in actually preparing the application. Following
selection, but prior to award, HUD staff will be available to assist in
clarifying or confirming information that is a prerequisite to the
offer of an award by HUD.

B. Satellite Broadcast

HUD will hold an information broadcast via satellite for potential
applicants to learn more about the HCV FSS program and preparation of
an application. For more information about the date and time of this
broadcast, you should consult the HUD Web site at http://www.hud.gov.

VIII. Other Information

A. Paperwork Reduction Act

The information collection requirements contained in this document
have been approved by the Office of Management and Budget (OMB) under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned
OMB control number 2577-0178. In accordance with the Paperwork
Reduction Act, HUD may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless the
collection displays a currently valid OMB control number. Public
reporting burden for the collection of information is estimated to
average one hour per annum per respondent for the application and grant
administration. This includes the time for collecting, reviewing, and
reporting the data for the application and other required reporting.
The information will be used for grantee selection and monitoring the
administration of funds. Response to this request for information is
required in order to receive the benefits to be derived.

B. Public Access, Documentation, and Disclosure

See Section VIII. F. of the General Section.

ATTACHMENT A.--PHAs That Operate in Areas Containing Colonia Communities
------------------------------------------------------------------------

------------------------------------------------------------------------
ARIZONA PHAs
------------------------------------------------------------------------
City of Douglas Housing Authority.. City of Nogales Housing Authority
City of Eloy Housing Authority..... City of Yuma Housing Authority.
Cochise County Housing Authority... Yuma County Housing Authority.
Pinal County Housing Authority..... Section 8 Housing for Graham
County, Arizona Department of
Housing.
------------------------------------------------------------------------
CALIFORNIA PHAs
------------------------------------------------------------------------
City of Calexico Housing Authority. Housing Authority of the County of
Riverside
Imperial Valley Housing Authority.
------------------------------------------------------------------------
NEW MEXICO PHAs
------------------------------------------------------------------------
City of Alamogordo Housing City of Las Cruces/Dona Ana County
Authority. Housing Authority
City of Truth or Consequences City of Socorro Housing Authority.
Housing Authority.
Eddy County--Region VI............. Housing Authority of the Village of
Santa Clara.
Lordsburg Housing Authority........ Otero County--Region VI.
Silver City Housing Authority-- Sunland Park Housing Authority.
Region V.
Town of Baynard Housing Authority.
------------------------------------------------------------------------
TEXAS PHAs
------------------------------------------------------------------------
Alamo Housing Authority............ Asherton Housing Authority
Bracketville Housing Authority..... Brownsville Housing Authority.
Cameron County Housing Authority... Carrizo Housing Authority.
Del Rio Housing Authority.......... Dona Housing Authority.
Eagle Pass Housing Authority....... Ed Couch Housing Authority.
Edinburg Housing Authority......... Elsa Housing Authority.
Harlingen Housing Authority........ Hidalgo County Housing Authority.
Laredo Housing Authority........... La Joya Housing Authority.
Los Fresnos Housing Authority...... McAllen Housing Authority.
Mercedes Housing Authority......... Mission Housing Authority.
Pharr Housing Authority............ Port Isabel Housing Authority.
San Benito Housing Authority....... San Juan Housing Authority.
Starr County Housing Authority..... Weslaco Housing Authority.
Willacy County Housing Authority... Uvalde Housing Authority.
Zapata County Housing Authority.
------------------------------------------------------------------------

BILLING CODE 4210-01-P

[[Page 11903]]
[GRAPHIC]
[TIFF OMITTED]
TN08MR06.020
[[Page 11904]]

Rural Housing and Economic Development Program

Overview Information

A. Federal Agency Name: Department of Housing and Urban
Development, Community Planning and Development, Office of Rural
Housing and Economic Development.
B. Funding Opportunity Title: Rural Housing and Economic
Development (RHED) program.
C. Announcement Type: Initial Announcement.
D. Funding Opportunity Number: The Federal Register number is FR
5030-N-04. The OMB approval number is 2506-0169.
E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.250
Rural Housing and Economic Development.
F. Application Due Date: The application deadline date is May 12, 2006.
G. Optional Additional Overview Information: 1. The purpose of the
Rural Housing and Economic Development program is to provide support
for innovative housing and economic development activities in rural
areas. The funds made available under this program will be awarded
competitively through a selection process conducted by HUD in
accordance with the HUD Reform Act.

Full Text of Announcement

I. Funding Opportunity Description

A. Background

There has been a growing national recognition of the need to
provide support for local rural nonprofit organizations, community
development corporations, federally recognized Indian tribes, state
housing finance agencies (HFAs) and state economic development and
community development agencies to expand the supply of affordable
housing and to engage in economic development activities in rural
areas. A number of resources are available from the federal government
to address these problems, including programs of the United States
Department of Agriculture (USDA), the Economic Development
Administration (EDA), the Appalachian Regional Commission (ARC), the
Department of Interior (for Indian tribes), and HUD. The Rural Housing
and Economic Development program was developed to supplement these
resources and to focus specifically on promoting innovative approaches
to housing and economic development in rural areas. In administering
these funds, HUD encourages you to coordinate your activities with
those supported by any of the agencies listed above.

B. Definitions

1. Appalachia's Distressed Counties means those counties in
Appalachia that the Appalachian Regional Commission (ARC) has
determined to have unemployment and poverty rates that are 150 percent
of the respective U.S. rates and a per capita income that is less than
67 percent of the U.S. per capita income, and have counties with 200
percent of the U.S. poverty rate and one other indicator, such as the
percentage of overcrowded housing. Refer to http://www.arc.gov
for a list of ARC distressed counties and more information.
2. Colonia means any identifiable, rural community that:
a. Is located in the state of Arizona, California, New Mexico, or Texas;
b. Is within 150 miles of the border between the U.S. and Mexico;
and
c. Is determined to be a Colonia on the basis of objective need
criteria, including a lack of potable water supply, lack of adequate
sewage systems, and lack of decent, safe, sanitary, and accessible housing.
3. Farm Worker means a farm employee of an owner, tenant, labor
contractor, or other operator raising or harvesting agricultural or
aquacultural commodities; or a worker in the employment of a farm
operator, handling, planting, drying, packing, grading, storing,
delivering to storage or market, or carrying to market agricultural or
aquacultural commodities produced by the operator. Seasonal farm
workers are those farm employees who typically do not have a constant
year-round salary.
4. Firm Commitment means a letter of commitment from a partner by
which an applicant's partner agrees to perform an activity specified in
the application, demonstrates the financial capacity to deliver the
resources necessary to carry out the activity and commits the resources
to the activity, either in cash or through in-kind contributions. It is
irrevocable, subject only to approval and receipt of a FY2006 Rural
Housing and Economic Development grant. Each letter of commitment must
include the organization's name and applicant's name, reference the
Rural Housing and Economic Development program, and describe the
proposed total level of commitment and responsibilities, expressed in
dollar value for cash or in-kind contributions, as they relate to the
proposed program. The commitment must be written on the letterhead of
the participating organization, must be signed by an official of the
organization legally able to make commitments on behalf of the
organization, and must be dated no earlier than the date of publication
of this NOFA. In documenting a firm commitment, the applicant's partner
must:
a. Specify the authority by which the commitment is made, the
amount of the commitment, the proposed use of funds, and the
relationship of the commitment to the proposed investment. If the
committed activity is to be self-financed, the applicant's partner must
demonstrate its financial capability through a corporate or personal
financial statement or other appropriate means. If any portion of the
activity is to be financed through a lending institution, the
participant must provide evidence of the institution's commitment to
fund the loan; and
b. Affirm that the firm commitment is contingent only upon the
receipt of FY2006 Rural Housing and Economic Development funds and
state a willingness on the part of the signatory to sign a legally
binding agreement (conditioned upon HUD's environmental review and
approval of a property where applicable) upon award of the grant.
5. Federally Recognized Indian tribe means any tribal entity
eligible to apply for funding and services from the Bureau of Indian
Affairs by virtue of its status as an Indian tribe. The list of
federally recognized Indian tribes can be found in the notice published
by the Department of the Interior on December 5, 2003 (68 FR 68180) and
is also available from HUD.
6. Innovative Housing Activities means projects, techniques,
methods, combinations of assistance, construction materials, energy
efficiency improvements, or financing institutions or sources new to
the eligible area or to its population. The innovative activities can
also build upon and enhance a model that already exists.
7. Local Rural Nonprofit Organization or Community Development
Corporation means either of the following:
a. Any private entity with tax-exempt status recognized by the
Internal Revenue Service (IRS) which serves the eligible rural area
identified in the application (including a local affiliate of a
national organization that provides technical assistance in rural
areas); or
b. Any public nonprofit entity such as a Council of Governments
that will serve specific local nonprofit organizations in the eligible area.
8. Lower Mississippi Delta Region means the eight-state, 240-
county/parish region defined by Congress in the Lower Mississippi Delta
Development Act,

[[Page 11905]]

Public Law 100-460. Refer to http://www.dra.gov for more information.
9. Eligible Rural Area means one of the following:
a. A non-urban place having fewer than 2,500 inhabitants (within or
outside of metropolitan areas).
b. A county or parish with an urban population of 20,000
inhabitants or less.
c. Territory, including its persons and housing units, in the rural
portions of ``extended cities.'' The U.S. Census Bureau identifies the
rural portions of extended cities.
d. Open country that is not part of or associated with an urban
area. The USDA describes ``open country'' as a site separated by open
space from any adjacent densely populated urban area. Open space
includes undeveloped land, agricultural land, or sparsely settled
areas, but does not include physical barriers (such as rivers and
canals), public parks, commercial and industrial developments, small
areas reserved for recreational purposes, or open space set aside for
future development.
e. Any place with a population not in excess of 20,000 and not
located in a Metropolitan Statistical Area.
10. State Community and/or Economic Development Agency means any
state agency that has promotion of economic development statewide or in
a local community as its primary purpose.
11. State Housing Finance Agency means any state agency created to
assist local communities and housing providers with financing
assistance for development of housing in rural areas, particularly for
low- and moderate-income people.

II. Award Information

A. Amount Allocated

1. Available Funds. Approximately $17 million in Fiscal Year (FY)
2006 funding (plus any additional funds available through recapture)
are being made available through this NOFA.
2. Funding Award Amount. HUD will award up to approximately $17
million on a competitive basis for Support for Innovative Housing and
Economic Development Activities to federally recognized Indian tribes,
state housing finance agencies (HFAs), state community and/or economic
development agencies, local rural nonprofit organizations or community
development corporations to support innovative housing and economic
development activities in rural areas throughout the nation. The
maximum amount awarded to a successful applicant will be $300,000.

B. Grant Amount

In the event, you, the applicant, are awarded a grant that has been
reduced (e.g., the application contained some activities that were
ineligible or budget information did not support the request), you will
be required to modify your project plans and application to conform to
the terms of HUD's approval before execution of the grant agreement.
HUD reserves the right to reduce or de-obligate the award if
suitable modifications to the proposed project are not submitted by the
awardee within 90 days of the request. Any modifications must be within
the scope of the original application. HUD reserves the right to not
make awards under this NOFA.

C. Grant Period

Recipients will have 36 months from the date of the executed grant
agreement to complete all project activities.

D. Notification of Approval or Disapproval

HUD will notify you whether or not you have been selected for an
award. If you are selected, HUD's notice to you concerning the amount
of the grant award (based on the approved application) will constitute
HUD's conditional approval, subject to negotiation and execution of a
grant agreement by HUD.

III. Eligibility Information

A. Eligible Applicants. Eligible applicants for the Rural Housing
and Economic Development program are local rural nonprofit
organizations and community development corporations, federally
recognized Indian tribes, state housing finance agencies and state
community and/or economic development agencies. Also, you must meet all
of the applicable eligibility requirements described in Section III.C
of the General Section.
B. Cost Sharing or Matching. There is no match required under the
Rural Housing and Economic Development program. Applicants that submit
evidence of leveraging dollars under Rating Factor 4 will receive
points according to the scale under that factor.
C. Other. 1. Eligible Activities. The following are examples of
eligible activities under the Rural Housing and Economic Development program.
Permissible activities may include, but are not limited to the following:
a. Cost of using new or innovative construction, energy efficiency,
or other techniques that will result in the design or construction of
innovative housing and economic development projects;
b. Preparation of plans or of architectural or engineering drawings;
c. Preparation of legal documents, government paperwork, and
applications necessary for construction of housing and economic
development activities to occur in the jurisdiction;
d. Acquisition of land and buildings;
e. Demolition of property to permit construction or rehabilitation
activities to occur;
f. Purchase of construction materials;
g. Homeownership counseling, including fair housing counseling,
credit counseling, budgeting, access to credit, and other federal
assistance available;
h. Conducting conferences or meetings with other federal or state
agencies tribes, tribally designated housing entities (TDHE) or
national or regional housing organizations, to inform residents of
programs, rights, and responsibilities associated with homebuying
opportunities;
i. Establishing Community Development Financial Institutions
(CDFIs), lines of credit, revolving loan funds, microenterprises, and
small business incubators; and
j. Provision of direct financial assistance to homeowners/
businesses/developers, etc. This can be in the form of default
reserves, pooling/securitization mechanisms, loans, grants, funding
existing individual development accounts or similar activities.
2. Statutory and Regulatory Requirements. To be eligible for
funding under HUD NOFAs issued during FY2006, you, the applicant, must
meet all statutory and regulatory requirements applicable to this NOFA
as described in the General Section. HUD may also eliminate ineligible
activities from funding consideration and reduce funding amounts accordingly.
3. General HUD Threshold Requirements. You must meet all threshold
requirements described in the General Section.
a. Ineligible Applicants. HUD will not consider an application from
an ineligible applicant.
b. Economic Opportunities for Low- and Very Low-Income Persons
(Section 3). Recipients of assistance under this NOFA must comply with
Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C.
1701u (Economic Opportunities for Low- and Very Low-Income Persons in
Connection with Assisted Projects) and the HUD regulations at 24 CFR
part 135, including the reporting requirements at subpart E. Section 3
requires recipients to ensure that, to the greatest extent

[[Page 11906]]

feasible, training, employment, and other economic opportunities will
be directed to low- and very-low income persons, particularly those who
are recipients of government assistance for housing, and business
concerns that provide economic opportunities to low- and very low-
income persons.
4. Program-Specific Threshold Requirements.
a. The application must receive a minimum rating score of 75 points
to be considered for funding.
b. HUD will only fund eligible applicants as defined in this NOFA
under Section III.A.
c. Applicants must serve an eligible rural area as defined in
section I. of this NOFA.
d. Proposed activities must meet the objectives of the Rural
Housing and Economic Development program.
e. Applicants must demonstrate that their activities will continue
to serve populations that are in need and that beneficiaries will have
a choice of innovative housing and economic development opportunities
as a result of the activities.

IV. Application and Submission Information

A. Address To Request Application Package

This section describes how you may obtain application forms. Copies
of the published Rural Housing and Economic Development NOFA and
application forms may be downloaded from the Grants.gov Web site at
http://www.grants.gov/Apply. You may call the Grants.gov support
desk at 800-518-GRANTS, or email the support desk at Support@Grants.gov. for
assistance in downloading the application. Applicants may request a
waiver of the electronic submission requirement. Paper applications
will not be accepted unless the applicant has received a waiver to the
electronic submission requirement. Instructions regarding the number of
copies to submit and where will be contained in the approval to the
waiver request. Paper submissions must be received at the appropriate
HUD office(s) no later than the deadline date. See Section IV of the
General Section for further information.

B. Content and Form of Application Submission

1. Application Submission Requirements. Be sure to read and follow
the application submission requirements carefully.
a. Page Numbering. All pages of the application must be numbered
sequentially if you are submitting a paper copy application. For
electronic application submission you should follow the directions in
the General Section.
b. Application Items. Your application must contain the items
listed below.
(1) An abstract that must include the dollar amount requested, the
category under which you qualify for demographics of distress special
factor under Rating Factor 2 ``Need and Extent of the Problem,'' which
of the five definitions of the term ``rural area'' set forth in Section
I B.9 of this NOFA applies to the proposed service area, and
accompanying documentation as indicated on the form.
(2) Table of Contents.
(3) A signed SF-424 (application form).
(4) SF-424 Supplement Survey on Equal Opportunity for Applicants
(optional submission).
(5) Facsimile Transmittal (HUD-96011). (This must be used as the
cover page to transmit third party documents as part of your electronic
application.)
(6) Disclosure of Lobbying Activities (SF-LLL).
(7) Applicant/Recipient Disclosure/Update Report (HUD-2880).
(8) You Are Our Client Grant Applicant Survey (HUD 2994-A) (Optional).
(9) Program Outcome Logic Model (HUD-96010).
(10) A budget for all funds (federal and non-federal including HUD-
424CB and HUD 424-CBW).
(11) Certification of Consistency with RC/EZ/EC-II Strategic Plan
(HUD-2990), if applicable.
(12) Certification of Consistency with the Consolidated Plan (HUD-
2991), if applicable.
(13) Documentation of funds pledged in support of Rating Factor 4--
``Leveraging Resources'' (which will not be counted in the 15-page
limitation). Documentation must be in the form of a ``firm commitment''
as defined in Section I.B.4 of this NOFA.
(14) If you are a private nonprofit organization, a copy of your
organization's IRS ruling providing tax-exempt status under section 501
of the Internal Revenue Code of 1986, as amended.
(15) Narrative response to Factors for Award. The total narrative
response to all factors should not exceed 15 pages and should be
submitted in a format that is equal to 8.5 x 11-inch single sided
paper, with 12-point font and double lined spacing. Please note that
although submitting pages in excess of the page limit will not
disqualify your application, HUD will not consider or review the
information on any excess pages, which may result in a lower score or
failure to meet a threshold requirement. In addition, applicants should
be aware that additional pages increase the size of the application and
the length of time it will take to electronically submit the document
and have it electronically received by Grants.gov. Large files result
in slower delivery to Grants.gov.
(16) Questionnaire for HUD's Initiative on Removal of Regulatory
Barriers (HUD 27300). To get the points for this policy priority, you
must include the documentation or references to URLs where the
information can be found.
All applicants are required to use the following format in their
15-page narrative responses to the rating factors included in the
program NOFA:
Factor 1--Relevant Organizational Experience;
Factor 2--Need and Extent of the Problem;
Factor 3--Soundness of Approach;
Factor 4--Leveraging Resources; and
Factor 5--Achieving Results and Program Evaluation.
See Section V. of this NOFA for further details.

C. Submission Dates and Times.

1. Electronic Application Submission. Applications for the Rural
Housing and Economic Development program must be received and validated
by Grants.gov no later than 11:59:59 p.m. eastern time on the
application deadline date. You will receive an acknowledgement of
receipt from Grants.gov when your application has been successfully
received. You will receive an acknowledgement from Grants.gov that your
application has been validated or rejected. Please see the General
Section for more detailed information. If you do not receive the
validation or rejection notice within 24-48 hours, contact the
Grants.gov help desk.
2. Applicants are advised to carefully read the application
submission and timely receipt requirements in the General Section as
they have changed from previous years.
3. Only one application will be accepted from any given
organization. If more than one application is submitted electronically,
the last application submitted prior to the due date and time will be
the one reviewed by HUD. HUD will not accept application addendums
after the deadline unless HUD has specifically asked the applicant for
a correction to a technical deficiency in the application. Responses to
technical deficiencies must be received by HUD within the time
allocated to cure the

[[Page 11907]]

deficiency. Corrections to technical deficiencies are submitted
directly to HUD in accordance with the information provided by the
program office in their cure notification.

D. Intergovernmental Agency Review

Intergovernmental agency review is not required for this program.

E. Funding Restrictions

1. Administrative Costs. Administrative costs for assistance under
the Rural Housing and Economic Development program may not exceed 15
percent of the total HUD Rural Housing and Economic Development grant
award.
2. Ineligible Activities. RHED funds cannot be used for the
following activities:
a. Income payments to subsidize individuals or families;
b. Political activities;
c. General governmental expenses other than expenses related to the
administrative cost of the grant; or
d. Projects or activities intended for personal gain or private use.
HUD reserves the right to reduce or deobligate the award if
suitable modifications to the proposed project are not submitted by the
awardee within 90 days of the request. Any modification must be within
the scope of the original application. HUD reserves the right not to
make awards under this NOFA.

F. Other Submission Requirements

Carefully review the procedures presented in Section IV of the
General Section FY 2006, HUD will only accept electronic applications
submitted through http://www.grants.gov.

V. Application Review Information

A. Criteria

Carefully review all the Application Review procedures in Section V
of the General Section. In addition, the following Rating Factors will
be used to review, evaluate, and rate your application.
1. Rating Factor 1--Capacity of the Applicant and Relevant
Organizational Experience (25 Points)
This rating factor addresses the extent to which you have the
organizational resources necessary to successfully implement your
proposed work plan, as further described in Rating Factor 3, within the
36-month award period.
a. Team members, composition, and experience (10 points). HUD will
evaluate the experience (including its recentness and relevancy) of
your project director, core staff, and any outside consultant,
contractor, subrecipient, or project partner as it relates to
innovative housing and economic development and to the implementation
of the activities in your workplan. HUD also will assess the services
that consultants or other parties will provide to fill gaps in your
staffing structure to enable you to carry out the proposed workplan;
the experience of your project director in managing projects of similar
size, scope, and dollar amount; the lines of authority and procedures
that you have in place for ensuring that workplan goals and objectives
are being met, that consultants and other project partners are
performing as planned, and that beneficiaries are being adequately
served. In judging your response to this factor, HUD will only consider
work experience gained within the last seven years. When responding,
please be sure to provide the dates, job titles and relevancy of the
past experience to work to be undertaken by the employee or contractor
under your proposed Rural Housing and Economic Development award. The
more recent, relevant, and successful the experience of your team
members are in relationship to the workplan activities, the greater the
number of points that you will receive.
b. Organizational structure and management capacity (5 points). HUD
will evaluate the extent to which you can demonstrate your
organization's ability to manage a workforce composed of full-time or
part-time staff, as well as any consultant staff, and your ability to
work with community-based groups or organizations in resolving issues
related to affordable housing and economic development. In evaluating
this subfactor, HUD will take into account your experience in working
with community-based organizations to design and implement programs
that address the identified housing and economic development issues.
The more recent, relevant, and successful the experience of your
organization and any participating entity, the greater the number of
points you will receive.
c. Experience with performance based funding requirements (10
points). HUD will evaluate your performance in any previous grant
program undertaken with HUD funds or other federal, state, local, or
nonprofit or for-profit organization funds. In assessing points for
this sub-factor, HUD reserves the right to take into account your past
performance in meeting performance and reporting goals for any previous
HUD award, in particular whether the program achieved its outcomes. HUD
will deduct one point for each of the following activities related to
previous HUD grant programs for which unsatisfactory performance has
been verified: (1) Mismanagement of funds, including the inability to
account for funds appropriately; (2) untimely use of funds received
either from HUD or other federal, state, or local programs; and (3)
significant and consistent failure to measure performance outcomes.
Among the specific outcomes to be measured are the increases in program
accomplishments as a result of capacity building assistance and the
increase in organizational resources as a result of assistance.
d. Past Rural Housing and Economic Development program performance.
The past performance of previously awarded Rural Housing and Economic
Development grantees will be taken into consideration when evaluating
Rating Factor 1 ``Capacity of the Applicant and Relevant Organizational
Experience.'' Applicants who have been awarded Rural Housing and
Economic Development program funds prior to FY2006 should indicate
fiscal year and funding amount. HUD local field offices may be
consulted to verify information submitted by the applicant as a part of
the review of applications.
2. Rating Factor 2--Need and Extent of the Problem (20 Points)
The Rural Housing and Economic Development program is designed to
address the problems of rural poverty, inadequate housing and lack of
economic opportunity. This factor addresses the extent to which there
is a need for funding the proposed activities based on levels of
distress and the urgency of meeting the need/distress in the
applicant's target area. In responding to this factor, applications
will be evaluated on the extent to which the level of need for the
proposed activity and the urgency in meeting the need are documented
and compared to target area and national data.
a. In applying this factor, HUD will compare the current levels of
need in the area (i.e., Census Tract(s) or Block Group(s) immediately
surrounding the project site or the target area to be served by the
proposed project and the national levels of need. This means that an
application that provides data that show levels of need in the project
area expressed as a percent greater than the national average will be
rated higher under this factor. Applicants should provide data that
address indicators of need as follows:
(1) Poverty Rate (5 points)--Data should be provided in both
absolute and percentage form (i.e., whole numbers and percents) for the
target area(s). An application that compares the local poverty rate in
the following manner to

[[Page 11908]]

the national average at the time of submission will receive points
under this section as follows:
(a) Less than the national average = 0 point;
(b) Equal to but less than twice the national average = 1 points;
(c) Twice but less than three times the national average = 3 points;
(d) Three or more times the national average = 5 points.
(2) Unemployment (5 points)--for the target area:
(a) Less than the national average = 0 point;
(b) Equal to but less than twice the national average = 1 points;
(c) Twice but less than three times the national average = 2 points;
(d) Three but less than four times the national average = 3 points;
(e) Four but less than five times the national average = 4 points;
(f) Five or more times the national average = 5 points.
(3) Other indicators of social or economic decline that best
capture the applicant's local situation (5 points).
(a) Data that could be provided under this section are information
on the community's stagnant or falling tax base, including recent
commercial or industrial closings; housing conditions, such as the
number and percentage of substandard or overcrowded units; rent burden
(defined as average housing cost divided by average income) for the
target area; local crime statistics, falling property values, etc. To
the extent that the applicant's statewide or local Consolidated Plan,
its Analysis of Impediments to Fair Housing Choice (AI), its Indian
housing plan or its anti-poverty strategy identify the level of
distress in the community 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.
(b) 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, and to compare such data to
those provided by applicants for the project site. These may include
U.S. Census data.
(c) HUD requires use of sound, verifiable, and reliable data (e.g.,
U.S. Census data, state statistical reports, university studies/
reports, or Home Mortgage Disclosure Act or Community Reinvestment Act
databases) to support distress levels cited in each application. See
http://www.ffiec.gov/ or http://www.ffiec.gov/webcensus/ffieccensus.htm
for census data. A source for all information along with the
publication or origination date must also be provided.
(d) Updated Census data are available for the following indicators:
(i) Unemployment rate--estimated monthly for counties, with a two-
month lag;
(ii) Population--estimated for incorporated places and counties,
through 2000;
(iii) Poverty rate--through 2000.
(4) Demographics of Distress--Special Factors (5 points). Because
HUD is concerned with meeting the needs of certain underserved areas,
you will be awarded a total of five points if you are located in or
propose to serve one or more of the following populations, or if your
application demonstrates that 100 percent of the beneficiaries
supported by Rural Housing and Economic Development funds are in one or
more of the following populations. You must also specifically identify
how each population will be served and that the proposed service area
meet the definition of ``eligible rural area'' in Section I of this NOFA:
(a) Areas with very small populations in non-urban areas (2,500
population or less);
(b) Seasonal farm workers;
(c) Federally recognized Indian tribes;
(d) Colonias;
(e) Appalachia's Distressed Counties; or
(f) The Lower Mississippi Delta Region (8 states and 240 counties/
parishes).
For these underserved areas, you should ensure that the populations
that you serve and the documentation that you provide are consistent
with the information described in the above paragraph under this rating
factor.
3. Rating Factor 3--Soundness of Approach (21 Points)
This factor addresses the overall quality of your proposed
workplan, taking into account the project and the activities proposed
to be undertaken; the cost-effectiveness of your proposed program; and
the linkages between identified needs, the purposes of this program,
and your proposed activities and tasks. In addition, this factor
addresses your ability to ensure that a clear linkage exists between
innovative rural housing and economic development. In assessing cost-
effectiveness, HUD will take into account your staffing levels;
beneficiaries to be served; and your timetable for the achievement of
program outcomes, the delivery of products and reports, and any
anticipated outcome or product. You will receive a greater number of
points if your workplan is consistent with the purpose of the Rural
Housing and Economic Development program, your program goals, and the
resources provided.
a. Management Plan (13 points). A clearly defined management plan
should be submitted that identifies each of the projects and activities
you will carry out to further the objectives of this program; describes
the linkage between rural housing and economic development activities;
and addresses the needs identified in Factor 2, including needs that
previously were identified in a statewide or local Analysis of
Impediments to Fair Housing Choice (AI) or Consolidated Plan. The
populations that were described in Rating Factor 2 for the purpose of
documenting need should be the same populations that will receive the
primary benefit of the activities, both immediately and over the long
term. The benefits should be affirmatively marketed to those
populations least likely to apply for and receive these benefits
without such marketing. Your timetable should address the measurable
short-term and long-term goals and objectives to be achieved through
the proposed activities based on annual benchmarks; the method you will
use for evaluating and monitoring program progress with respect to
those activities; and the method you will use to ensure that the
activities will be completed on time and within your proposed budget
estimates. Your management plan should also include the budget for your
program, broken out by line item. Documented projected cost estimates
from outside sources are also required. Applicants should submit their
workplan on a spreadsheet showing each project to be undertaken and the
tasks (to the extent necessary or appropriate) in your workplan to
implement the project with your associated budget estimate for each
activity/task. Your workplan should provide the rationale for your
proposed activities and assumptions used in determining your project
timeline and budget estimates. Failure to provide your rationale may
result in your application receiving fewer points for lack of clarity
in the proposed management plan.
This subfactor should include information that indicates the extent
to which you have coordinated your activities with other known
organizations (e.g., through letters of participation or coordination)
that are not directly participating in your proposed work activities,
but with which you share common goals and objectives and that are
working toward

[[Page 11909]]

meeting these objectives in a holistic and comprehensive manner. The
goal of this coordination is to ensure that programs do not operate in
isolation. Additionally, your application should demonstrate the extent
to which your program has the potential to be financially self-
sustaining by decreasing dependence on Rural Housing and Economic
Development funding and relying more on state, local, and private
funding. The goal of sustainability is to ensure that the activities
proposed in your application can be continued after your grant award is
complete.
b. Policy Priorities (8 Points). Policy priorities are outlined in
detail in the General Section. You should document the extent to which
HUD's policy priorities are furthered by the proposed activities.
Applicants that include activities that can result in the achievement
of these departmental policy priorities will receive higher rating
points in evaluating their application for funding. Seven departmental
policy priorities are listed below. When policy priorities are included,
describe in brief detail how those activities will be carried out.
The point values for policy priorities are as follows:
(1) Providing increased homeownership and rental opportunities for
low- and moderate-income persons, persons with disabilities, the elderly,
minorities, and families with limited English proficiency = 1 point;
(2) Improving our Nation's communities = 1 point;
(3) Encouraging accessible design features = 1 point;
(4) Providing full and equal access to grassroots faith-based and
other community-based organizations in HUD program implementation = 1 point;
(5) Ending chronic homelessness within ten years = 1 point;
(6) Removal of barriers to affordable housing = 2 points; and
(7) Promoting Energy Efficiency and Adopting Energy Star = 1 point.
4. Rating Factor 4--Leveraging Resources (10 Points)
This factor addresses the extent to which applicants have obtained
firm commitments of financial or in-kind resources from other federal,
state, local, and private sources. For every Rural Housing and Economic
Development program dollar anticipated, you should provide the specific
amount of dollars leveraged. In assigning points for this criterion,
HUD will consider the level of outside resources obtained in the form
of cash or in-kind goods or services that support activities proposed
in your application. HUD will award a greater number of points based
upon a comparison of the extent of leveraged funds with the requested
Rural Housing and Economic Development award. The level of outside
resources for which commitments are obtained will be evaluated based on
their importance to the total program. Your application must provide
evidence of leveraging in the form of letters of firm commitment from
any entity, including your own organization, which will be providing
the leveraging funds to the project. Each commitment described in the
narrative of this factor must be in accordance with the definition of
``firm commitment,'' as defined in this NOFA. The commitment letter
must be on letterhead of the participating organization, must be signed
by an official of the organization legally able to make commitments on
behalf of the organization, and must not be dated earlier than the date
this NOFA is published.
Points for this factor will be awarded based on the satisfactory
provisions of evidence of leveraging and financial sustainability, as
described above, and the ratio of leveraged funds to requested HUD
Rural Housing and Economic Development funds as follows:
a. 50% or more of requested HUD Rural Housing and Economic
Development funds = 10 points;
b. 49-40% of requested HUD Rural Housing and Economic Development
funds = 8 points;
c. 39-30% of requested HUD Rural Housing and Economic Development
funds = 6 points;
d. 29-20% of requested HUD Rural Housing and Economic Development
funds = 4 points;
e. 19-9% of requested HUD Rural Housing and Economic Development
funds = 2 points;
f. Less than 9% of HUD requested Rural Housing and Economic
Development funds = 0 points.
See the General Section for instructions for submitting third party
letters and other documents with your electronic application.
5. Rating Factor 5--Achieving Results and Program Evaluation (24 Points)
This factor emphasizes HUD's commitment to ensure that applicants
keep promises made in their application. This factor assesses their
performance to ensure that rigorous and useful performance measures are
used and goals are met. Achieving results means you, the applicant,
have clearly identified the benefits or outcomes of your program.
Outcomes are ultimate project end goals. Benchmarks or outputs are
interim activities or products that lead to the ultimate achievement of
your goals. Program evaluation requires that you, the applicant,
identify program outcomes, interim products or benchmarks, and
performance indicators that will allow you to measure your performance.
Performance indicators should be objectively quantifiable and measure
actual achievements against anticipated achievements. Your evaluation
plan should identify what you are going to measure, how you are going
to measure it, and the steps you have in place to make adjustments to
your work plan if performance targets are not met within established
time frames.
Applicants must also complete the ``Logic Model'' HUD Form (HUD-
96010) included in the application instructions at http://www.Grants.gov,
and submit the completed form with their application.
This year, in response to client concerns that the Logic Model was
difficult to complete due to the need to write text into the
appropriate columns, HUD has provided an electronic Logic Model that
will enable applicants to select from lists the appropriate needs
statement(s), activities/outputs and outcomes that the applicant is
proposing in the application submission. The listing of the activities
is referred to as the Master Logic Model List and each list is unique
to the program funding opportunity. The application instructions found
on http://www.Grants.gov/Apply include the eLogic ModelTM
that you can complete and attach to your electronic application
submission. For applicants who do not have Microsoft Excel software,
HUD has provide the Master Logic model list on its Web site at http://
www.hud.gov/offices/adm/grants/fundsavail.cfm, where applicants may
select the items in each column that reflect their activity outputs and
outcomes and copy and paste them into the appropriate column in the
Logic Model form. The form can be printed and sent to HUD via facsimile
using form HUD-96011 as the cover page to the Transmittal. In
completing the Logic Model, applicants are expected to select from the
lists of appropriate outputs and outcomes for their proposed workplan.
The eLogic ModelTM and Master Logic Model listing also
identify the unit of measure that HUD is interested in collecting for
the outputs and outcomes selected. In making the selections, for each
output and outcome, applicants are to complete the appropriate proposed
number of units of measure to be accomplished. The space next to the
output and outcome is to capture the

[[Page 11910]]

anticipated units of measure. Multiple outputs and outcomes may be
selected per project. For FY2006, HUD is considering a new concept for
the Logic Model. The new concept is a Return on Investment statement.
HUD will be publishing a separate notice on the ROI concept.
Under this rating factor, applicants will receive a maximum of 24
points based on how the applicant proposes to effectively address
program goals and performance measures. HUD will evaluate and analyze
how well the applicant implemented the required Rural Housing and
Economic Development output and outcome goals and identified other
stated benefits or outcomes of their program. In order to receive the
highest number of points, applicants should present a clear plan to
address the RHED output and outcome measures.
1. Output Measures are quantifiable. RHED outputs include: Number
of housing units constructed; number of housing units rehabilitated;
Number of jobs created; number of participants trained; number of new
businesses created; and number of existing businesses assisted.
2. Outcomes Measures are benefits accruing to the program
participants and/or communities during or after participation in the
RHED program. RHED outcomes include: Number of housing units
rehabilitated that will be made available to low-to-moderate-income
participants; percentage change in earnings as a result of employment
for those participants; percent of participants trained who find a job;
annual estimated savings for low-income families as a result of energy
efficiency improvements; and increase in organizational resources as a
result of assistance (e.g., dollars leveraged).
You must clearly identify the outcomes to be achieved and measured.
Proposed program benefits should include program activities,
benchmarks, and interim activities or performance indicators with
timelines. Applications should include an evaluation plan that will
effectively measure actual achievements against anticipated achievements.
3. Logic Model. HUD requires RHED applicants to develop an
effective, quantifiable, outcome-oriented evaluation plan for measuring
performance and determining whether goals have been met using the
Master Logic Model for RHED, which can be found in the download
instructions portion of the application at http://www.Grants.gov.
In preparing your logic model first open the form HUD-96010 and go to the
instruction tab and follow the directions in the tab. Your application
must include the Logic Model form (HUD-96010) to receive any points
under this factor.
This rating factor reflects HUD's goal to embrace high standards of
ethics, management, and accountability. HUD will hold a training
broadcast via satellite for potential applicants to learn more about
Rating Factor 5. For more information about the date and time of the
broadcast, consult the HUD Web site at
http://www.hud.gov/grants/index.cfm.
Although the following list is not all inclusive, program outcomes
for the Rural Housing and Economic Development program must include
where applicable:
a. Total number of housing units constructed;
b. Total number of housing units rehabilitated;
c. Number of Housing units rehabilitated that will be made
available to low-to-moderate income participants;
d. Number of Housing units constructed that will be made available
to low-to-moderate income participants;
e. Number of jobs created;
f. Percentage change in earnings as a result of employment for
those participants;
g. Number of participants trained;
h. Percent of participants trained who find a job;
i. Number of new businesses created;
j. Number of existing businesses assisted; and
k. Annual estimated savings for low-income families as a result of
energy efficiency improvements.
l. Increase in program accomplishments as a result of capacity
building assistance (e.g. number of employees hired or retained,
efficiency or effectiveness of services provided); and
m. Increase in organizational resources as a result of assistance
(e.g., dollars leveraged). If you receive an award of funds, you will
be required to use the logic model to report progress against the
proposed outcomes in your approved application and award agreement.
The applicant's proposed budget must reflect a breakdown of
estimated dollar amount of the Rural Housing and Economic Development
grant to be expended on each of the activities/outputs and the
anticipated results included on the HUD-96010 ``Logic Model'' and under
the Rating Factor 5 section of your application.
6. RC/EZ/EC-II Bonus Points (2 Points)
HUD will award two bonus points to all applications that include
documentation stating that the proposed eligible activities/projects
will be located in and serve federally designated renewal community
(RCs), empowerment zone (EZs), or enterprise communities (ECs)
designated by the United States Department of Agriculture (USDA) in
round II RC/EZ/EC. A listing of federally designated RC/EZ/EC-II is
available on the Internet at http://www.hud.gov/crlocator.
This notice contains a certification (HUD-2990) that must be
completed for the applicant to be considered for Rural EZ/Round II EC
bonus points.

B. Review and Selection Process

1. Application Selection Process
a. Rating and Ranking.
(1) General. To review and rate applications, HUD may establish
panels which may include outside experts or consultants to obtain
certain expertise and outside points of view, including views from
other federal agencies.
(2) Rating. All applicants for funding will be evaluated against
applicable criteria. In evaluating applications for funding, HUD will
take into account an applicant's past performance in managing funds,
including the ability to account for funds appropriately; its timely
use of funds received either from HUD or other federal, state or local
programs; its success in meeting performance targets for completion of
activities; and the number of persons to be served or targeted for
assistance. HUD may use information relating to these items based on
information at hand or available from public sources such as
newspapers, Inspector General or Government Accounting Office reports
or findings, hotline complaints that have been found to have merit, or
other such sources of information. In evaluating past performance, HUD
will deduct points from rating scores as specified under Rating Factor 1.
(3) Ranking. Applicants will be selected for funding in accordance
with their rank order. An application must receive a minimum score of
75 points to be eligible for funding. If two or more applications are
rated fundable and have the same score, but there are insufficient
funds to fund all of them, the application(s) with the highest score
for Rating Factor 2 will be selected. If applications still have the
same score, the highest score in the following factors will be selected
sequentially until one highest score can be determined: Rating Factor
3, Rating Factor 1, Rating Factor 5, and Rating Factor 4.
a. Initial screening. During the period immediately following the
application deadline, HUD will screen each

[[Continued on page 11911]]

Notices For
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
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1996
1995
1994

Fiscal Year 2006 SuperNOFA for HUD's Discretionary Programs

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