Fiscal Year 2006 SuperNOFA for HUD's Discretionary Programs

[Federal Register: March 8, 2006 (Volume 71, Number 45)]
[Notices]
[Page 12011-12060]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08mr06-149]

[[pp. 12011-12060]]
Fiscal Year 2006 SuperNOFA for HUD's Discretionary Programs

[[Continued from page 12010]]

[[Page 12011]]

Conversion program is covered elsewhere in this NOFA.
The announcement of the availability of funds for Emergency Capital
Repairs, the Section 202 Demonstration Planning Grant program, and the
Section 202 Demonstration Program for Elderly Housing for
Intergenerational Families will be addressed in a future Federal
Register.
In accordance with the waiver authority provided in the Department
of Housing and Urban Development Appropriations Act, 2006, the
Secretary is waiving the following statutory and regulatory provision:
The term of the project rental assistance contract is reduced from 20
years to 3 years. HUD anticipates that at the end of the contract
terms, renewals will be approved subject to the availability of funds.
In addition to this provision, HUD will reserve project rental
assistance contract funds based on 75 percent rather than on 100
percent of the current operating cost standards for approved units in
order to take into account the average tenant contribution toward rent.
The allocation formula used for Section 202 reflects the ``relevant
characteristics of prospective program participants,'' as specified in
24 CFR 791.402(a). The FY2006 formula consists of one data element from
the 2000 Census: Number of one-person elderly renter households
(householder age 62 and older) with incomes at or below the applicable
Section 8 very low-income limit, and with housing conditions. Housing
conditions are defined as paying more than 30 percent of income for
gross rent, or occupying a unit lacking some or all kitchen or plumbing
facilities, or occupying an overcrowded unit (1.01 persons per room or
more).
Under Section 202, 85 percent of the total capital advance amount
is allocated to metropolitan areas and 15 percent to nonmetropolitan
areas. In addition, each local HUD office jurisdiction receives
sufficient capital advance funds for a minimum of 20 units in
metropolitan areas and 5 units in nonmetropolitan areas. The total
amount of capital advance funds to support these minimum set-asides are
subtracted from the respective (metropolitan or nonmetropolitan) total
capital advance amounts available. The remainder is fair shared to each
local HUD office jurisdiction whose fair share exceeds the minimum set-
aside based on the allocation formula fair share factors described below.

Note: The allocations for metropolitan and nonmetropolitan
portions of the local HUD office jurisdictions reflect the
definitions of metropolitan and nonmetropolitan areas as of the June
2003 definitions by the Office of Management and Budget.

A fair share factor is developed for each metropolitan and
nonmetropolitan portion of each local HUD office jurisdiction by
dividing the number of elderly renter households in the respective
metropolitan and nonmetropolitan portion of the jurisdiction by the
total number of elderly rental households in the metropolitan and
nonmetropolitan portions of the United States. The resulting percentage
for each local HUD office jurisdiction is then adjusted to reflect the
relative cost of providing housing among the local HUD office
jurisdictions. The adjusted needs percentage for the applicable
metropolitan or nonmetropolitan portion of each jurisdiction is then
multiplied by the respective total remaining capital advance funds
available nationwide. Based on the allocation formula, HUD has
allocated the available capital advance funds as shown on the following
chart:

FY 2006 Section 202 Allocations by Field Office
----------------------------------------------------------------------------------------------------------------
Metropolitan Nonmetro Totals
--------------------------------------------------------------------------
Offices Capital Capital Capital
Units advance Units advance Units advance
----------------------------------------------------------------------------------------------------------------
Boston Hub
----------------------------------------------------------------------------------------------------------------
Boston............................... 129 $15,564,417 5 $601,448 134 $16,165,865
Hartford............................. 65 7,946,297 9 1,052,092 74 8,998,389
Manchester........................... 40 3,881,135 23 2,157,316 63 6,038,451
Providence........................... 40 4,827,240 ....... .............. 40 4,827,240
--------------------------------------------------------------------------
Total............................ 274 32,219,089 37 3,810,856 311 36,029,945
----------------------------------------------------------------------------------------------------------------
New York Hub
----------------------------------------------------------------------------------------------------------------
New York............................. 310 38,617,068 5 622,188 315 39,239,256
----------------------------------------------------------------------------------------------------------------
Buffalo Hub
----------------------------------------------------------------------------------------------------------------
Buffalo.............................. 87 9,248,360 25 2,640,360 112 11,888,720
----------------------------------------------------------------------------------------------------------------
Philadelphia Hub
----------------------------------------------------------------------------------------------------------------
Charleston........................... 20 1,814,715 11 992,898 31 2,807,613
Newark............................... 146 17,993,806 ....... .............. 146 17,993,806
Philadelphia......................... 126 14,572,884 18 2,023,930 144 16,596,814
Pittsburgh........................... 64 6,318,624 14 1,417,082 78 7,735,706
--------------------------------------------------------------------------
Total............................ 356 40,700,029 43 4,433,910 399 45,133,939
----------------------------------------------------------------------------------------------------------------
Baltimore Hub
----------------------------------------------------------------------------------------------------------------
Baltimore............................ 63 6,064,734 5 482,196 68 6,546,930
Washington........................... 60 6,431,887 ....... .............. 60 6,431,887
Richmond............................. 58 5,137,294 15 1,282,127 73 6,419,421
----------

[[Page 12012]]

Total............................ 181 17,633,915 20 1,764,323 201 19,398,238
----------------------------------------------------------------------------------------------------------------
Greensboro Hub
----------------------------------------------------------------------------------------------------------------
Columbia............................. 43 4,026,055 13 1,193,046 56 5,219,101
Greensboro........................... 64 7,164,349 29 3,254,193 93 10,418,542
--------------------------------------------------------------------------
Total............................ 107 11,190,404 42 4,447,239 149 15,637,643
----------------------------------------------------------------------------------------------------------------
Atlanta Hub
----------------------------------------------------------------------------------------------------------------
Atlanta.............................. 66 5,652,196 20 1,724,942 86 7,377,138
Knoxville............................ 20 1,638,428 9 727,670 29 2,366,098
Louisville........................... 42 3,792,284 20 1,855,095 62 5,647,379
Nashville............................ 43 3,654,088 14 1,216,238 57 4,870,326
San Juan............................. 36 3,600,655 5 505,528 41 4,106,183
--------------------------------------------------------------------------
Total............................ 207 18,337,651 68 6,029,473 275 24,367,124
----------------------------------------------------------------------------------------------------------------
Jacksonville Hub
----------------------------------------------------------------------------------------------------------------
Birmingham........................... 47 3,868,900 17 1,367,390 64 5,236,290
Jackson.............................. 20 1,607,319 18 1,413,145 38 3,020,464
Jacksonville......................... 186 15,229,308 12 950,260 198 16,179,568
--------------------------------------------------------------------------
Total............................ 253 20,705,527 47 3,730,795 300 24,436,322
----------------------------------------------------------------------------------------------------------------
Chicago Hub
----------------------------------------------------------------------------------------------------------------
Chicago.............................. 150 17,751,418 23 2,707,777 173 20,459,195
Indianapolis......................... 69 6,295,375 19 1,696,015 88 7,991,390
--------------------------------------------------------------------------
Total............................ 219 24,046,793 42 4,403,792 261 28,450,585
----------------------------------------------------------------------------------------------------------------
Columbus Hub
----------------------------------------------------------------------------------------------------------------
Cincinnati........................... 51 4,627,889 5 451,086 56 5,078,975
Cleveland............................ 81 7,867,659 14 1,374,696 95 9,242,355
Columbus............................. 40 3,575,488 15 1,339,012 55 4,914,500
--------------------------------------------------------------------------
Total............................ 172 16,071,036 34 3,164,794 206 19,235,830
----------------------------------------------------------------------------------------------------------------
Detroit Hub
----------------------------------------------------------------------------------------------------------------
Detroit.............................. 85 8,911,136 10 1,014,397 95 9,925,533
Grand Rapids......................... 42 3,774,205 14 1,291,955 56 5,066,160
--------------------------------------------------------------------------
Total............................ 127 12,685,341 24 2,306,352 151 14,991,693
----------------------------------------------------------------------------------------------------------------
Minneapolis Hub
----------------------------------------------------------------------------------------------------------------
Minneapolis.......................... 63 6,942,229 23 2,522,537 86 9,464,766
Milwaukee............................ 73 7,717,849 23 2,469,528 96 10,187,377
--------------------------------------------------------------------------
Total............................ 136 14,660,078 46 4,992,065 182 19,652,143
----------------------------------------------------------------------------------------------------------------
Ft. Worth Hub
----------------------------------------------------------------------------------------------------------------
Ft. Worth............................ 94 7,432,879 24 1,909,424 118 9,342,303
Houston.............................. 61 4,744,124 9 731,223 70 5,475,347
Little Rock.......................... 20 1,482,881 17 1,244,128 37 2,727,009
New Orleans.......................... 50 4,065,695 14 1,127,289 64 5,192,984
San Antonio.......................... 52 3,896,212 10 763,615 62 4,659,827
--------------------------------------------------------------------------
Total............................ 277 21,621,791 74 5,775,679 351 27,397,470
----------------------------------------------------------------------------------------------------------------
Kansas City Hub
----------------------------------------------------------------------------------------------------------------
Des Moines........................... 20 1,638,428 20 1,631,262 40 3,269,690
Kansas City.......................... 54 4,853,142 20 1,757,253 74 6,610,395
Oklahoma City........................ 38 3,043,259 16 1,292,764 54 4,336,023

[[Page 12013]]

Omaha................................ 20 1,814,715 14 1,229,339 34 3,044,054
St. Louis............................ 45 4,665,792 14 1,466,969 59 6,132,761
--------------------------------------------------------------------------
Total............................ 177 16,015,336 84 7,377,587 261 23,392,923
----------------------------------------------------------------------------------------------------------------
Denver Hub
----------------------------------------------------------------------------------------------------------------
Denver............................... 76 7,176,367 31 2,474,938 107 9,651,305
----------------------------------------------------------------------------------------------------------------
San Francisco Hub
----------------------------------------------------------------------------------------------------------------
San Francisco........................ 148 17,605,317 10 1,124,640 158 18,729,957
Honolulu............................. 20 3,733,128 5 933,282 25 4,666,410
Phoenix.............................. 56 4,678,191 9 780,333 65 5,458,524
Sacramento........................... 49 5,819,931 9 1,082,051 58 6,901,982
--------------------------------------------------------------------------
Total............................ 273 31,836,567 33 3,920,306 306 35,756,873
----------------------------------------------------------------------------------------------------------------
Los Angeles Hub
----------------------------------------------------------------------------------------------------------------
Los Angeles.......................... 235 26,686,926 5 567,747 240 27,254,673
----------------------------------------------------------------------------------------------------------------
Seattle Hub
----------------------------------------------------------------------------------------------------------------
Seattle.............................. 75 8,227,226 13 1,398,338 88 9,625,564
Anchorage............................ 20 3,733,128 5 933,282 25 4,666,410
Portland............................. 55 5,279,867 18 1,681,124 73 6,960,991
--------------------------------------------------------------------------
Total............................ 150 17,240,221 36 4,012,744 186 21,252,965
--------------------------------------------------------------------------
National Total............... 3,617 376,692,499 696 66,475,148 4,313 443,167,647
----------------------------------------------------------------------------------------------------------------

B. Type of Award. Capital Advance and Project Rental Assistance
Contract Funds for new Section 202 applications.
C. Type of Assistance Instrument. The Agreement Letter stipulates
the terms and conditions for the Section 202 fund reservation award as
well as the submission requirements following the fund reservation
award. The duration of the fund reservation award for the capital
advance is 18 months from the date of issuance of the fund reservation.
D. Anticipated Start and Completion Date. Immediately upon your
acceptance of the Agreement Letter, you are expected to begin work
toward the submission of a Firm Commitment Application, which is the
next application submission stage. You are required to submit a Firm
Commitment Application to the local HUD office within 180 days from the
date of the Agreement Letter. Initial closing of the capital advance
and start of construction of the project are expected to be
accomplished within the duration of the fund reservation award period
as indicated in the above paragraph regarding the Type of Assistance
Instrument. Final closing of this capital advance is expected to occur
no later than six months after completion of project construction.

III. Eligibility Information

A. Eligible Applicants. Private nonprofit organizations and
nonprofit consumer cooperatives who meet the threshold requirements
contained in the General Section and Section III.C.2. of this NOFA are
the only eligible applicants under this Section 202 program. Neither a
public body nor an instrumentality of a public body is eligible to
participate in the program.
Applicant eligibility for purposes of applying for a Section 202
fund reservation under this NOFA has not changed; i.e., all Section 202
Sponsors and Co-Sponsors must be private nonprofit organizations and
nonprofit consumer cooperatives. However, the Owner corporation, when
later formed by the Sponsor, may be (1) a single-purpose private
nonprofit organization that has tax-exempt status under Section
501(c)(3) or Section 501(c)(4) of the Internal Revenue Code of 1986,
(2) nonprofit consumer cooperative, or (3) for purposes of developing a
mixed-finance project pursuant to the statutory provision under Title
VIII of the American Homeownership and Economic Opportunity Act of
2000, a for-profit limited partnership with a private nonprofit
organization as the sole general partner.
See Section III.C.3.b. regarding limits on the total number of
units and projects for which you may apply for funding.
B. Cost Sharing or Matching. No cost sharing or match is required;
however, you are required to make a commitment to cover the estimated
start-up expenses, the minimum capital investment of one-half of one
percent of the HUD-approved capital advance, not to exceed $10,000 or
for a national Sponsor not to exceed $25,000, and any funds required in
excess of the capital advance, including the estimated cost of any
amenities or features (and operating costs related thereto) which are
not covered by the capital advance. You make such a commitment by
signing the Form HUD-92042, Sponsor's Resolution for Commitment to
Project in Exhibit 8(g) of the application found in Section IV.B.
C. Other. 1. Eligible Activities. Section 202 capital advance funds
must be used to finance the development of housing through new
construction, rehabilitation, or acquisition with or without
rehabilitation. Capital advance funds may also be used in combination

[[Page 12014]]

with other non-Section 202 funding sources leveraged by a for-profit
limited partnership (of which a single-purpose private nonprofit
organization is the sole general partner) to develop a mixed-finance
project, including a mixed-finance project for additional units for the
elderly over and above the Section 202 units. The development of a
mixed-use project in which the Section 202 units are mortgaged
separately from the other uses of the structure is not considered a
mixed-finance project. Project rental assistance funds are provided to
cover the difference between the HUD-approved operating costs and the
amount the residents pay (each resident pays 30 percent of adjusted
income) as well as to provide supportive services to frail elderly
residents.

Note: For purposes of approving Section 202 capital advances,
HUD will consider proposals involving mixed-financing for additional
units over and above the Section 202 units. However, you must obtain
funds to assist the additional units with other than PRAC funds. HUD
will not provide PRAC funds for non-Section 202 units.

A portion of the PRAC funds (not to exceed $15 per unit/per month)
may be used to cover some of the cost of any supportive services for
those frail elderly or those elderly determined to be at-risk of being
institutionalized. The balance of the cost for services must be paid
for from sources other than the capital advance or PRAC funds. Also,
the cost of employing a service coordinator for those projects serving
principally the frail elderly (when at least 25 percent of the
residents will be frail or determined to be at-risk of being
institutionalized) is an eligible use of PRAC funds. Section 202
projects receiving Congregate Housing Services assistance under Section
802 of the National Affordable Housing Act are not eligible to use
capital advance or PRAC funds for supportive services or the cost of a
service coordinator.
2. Threshold Requirements for Funding Consideration. In addition to
the threshold criteria outlined in the General Section, the following
threshold requirements must be met:
a. Non-Responsive Application. Your application will be considered
non-responsive to the NOFA and will not be accepted for processing if you:
(1) Requested and received approval to submit a paper application
and you submit less than the required number of paper copies (an
original and four copies) are required. Refer to the General Section
for information on application submission and receipt procedures;
(2) submit paper copies of the application if you have not received
approval from HUD for a waiver of the electronic submission
requirements;
(3) submit a substantially deficient application (i.e., a majority
of the required exhibits, are not submitted with your application,
particularly, but not limited to, those exhibits which are not
curable). HUD reserves the right to determine whether your application
is substantially deficient for purposes of determining whether the
application is non-responsive to the NOFA. Refer to Section IV.B.,
Content of Form of Application Submission, for information on the
required exhibits for submission with your application to ensure that
your application is complete at time of submission;
(4) request more units than were allocated in either the
metropolitan or nonmetropolitan allocation category to the local HUD
office that will be reviewing your application or 125 units, whichever
is less (see the allocation chart in Section II.A. above);
(5) request less than the minimum number of 5 units per site;
(6) request assistance for an ineligible activity as defined in
Section IV.E., Funding Restrictions, of this program NOFA; or
(7) are an ineligible applicant (see Section III.A, Eligible
Applicants of this program NOFA).
b. Other Criteria. (1) You, or a co-Sponsor, must have experience
in providing housing or services to elderly persons.
(2) You and any co-Sponsor must be eligible private nonprofit
organizations or nonprofit consumer cooperatives with tax exempt status
under Internal Revenue Service code.
(3) Your application must contain acceptable evidence of the
following:
(a) Evidence of Site Control. You must provide evidence of site
control as described in this section and Exhibit 4(d)(i) of Section
IV.B. of this NOFA).
(b) Historic Preservation. You are required to send a letter to the
State/Tribal Historic Preservation Officer (SHPO/THPO) that attempts to
initiate consultation with their office and requests their review of
your determinations and findings with respect to the historical
significance of your proposed project. A sample letter to the SHPO/THPO
that you may adapt for your use, if you so choose, is available on
HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
You must include a copy of your letter to the SHPO/THPO in your
application and a statement that you have not received a response
letter(s) from the SHPO/THPO or a copy of the response letter(s)
received from the SHPO/THPO.
(c) Contamination. HUD must determine if a proposed site contains
contamination and, if so, HUD must be satisfied that it is eliminated
to the extent necessary to meet non site-specific federal, state or
local health standards. You must assist HUD by doing the following:
(i) Phase I Environmental Site Assessment (ESA). You must undertake
and submit a Phase I ESA, prepared in accordance with the ASTM
Standards E 1527-05, as amended, completed or updated no earlier than
six months prior to the application deadline date. The Phase I ESA must
be completed and submitted with the application. Therefore, it is
important that you start the Phase I ESA process as soon after
publication of the SuperNOFA as possible. To help you choose an
environmentally safe site, HUD invites you to review the documents
``Choosing an Environmentally Safe Site'' and ``Supplemental Guidance,
Environmental Information'', which are available on the HUD Web site at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
(ii) Phase II ESA. If the Phase I ESA indicates the possible
presence of contamination and/or hazards, you must decide whether to
continue with this site or choose another site. Should you choose
another site, the same Phase I ESA process identified above must be
followed for the new site. However, if you choose to continue with the
original site on which the Phase I ESA indicated contamination or
hazards, you must undertake a detailed Phase II ESA by an appropriate
professional. In order for your application to be considered for review
under this FY2006 funding competition, the Phase II must be received by
the local HUD office on or before July 3, 2006.
(iii) Clean-up--If the Phase II ESA reveals site contamination, the
extent of the contamination and a plan for clean-up of the site must be
submitted to the local HUD office. The plan for clean-up must include a
contract for remediation of the problem(s) and an approval letter from
the applicable federal, state, and/or local agency with jurisdiction
over the site. In order for your application to be considered for
review under this FY2006 funding competition, this information must be
received by the local HUD office on or before July 3, 2006. If the
above information is not received by the local HUD office by that date,
the application will be rejected.

Note: Clean-up could be an expensive undertaking. You must pay
for the cost of any

[[Page 12015]]

clean-up and/or remediation. If the application is approved, clean-
up must be completed prior to initial closing. Completion of clean-
up means that hud must be satisfied that the contamination has been
eliminated to the extent necessary to meet non site-specific
federal, state or local health standards, with no active or passive
remediation still taking place, no capping over of any
contamination, and no monitoring wells. However, it is acceptable if
contamination remains solely in groundwater that is at least 25 feet
below the surface.

(d) Asbestos. Asbestos is a hazardous substance commonly used in
building products until the late 1970s. Therefore, you must submit one
of the following with your application:
(i) If there are no pre-1978 structures on the site or if there are
pre-1978 structures, that most recently consisted of solely four or
fewer units of single-family housing including appurtenant structures
thereto, a statement to this effect, or
(ii) If there are pre-1978 structures on the site, other than for a
site that most recently consisted of solely four or fewer units of
single-family housing including appurtenant structures thereto, a
comprehensive building asbestos survey that is based on a thorough
inspection to identify the location and condition of asbestos
throughout any structures. In those cases where suspect asbestos is
found, it would either be assumed to be asbestos or would require
confirmatory testing. If the asbestos survey indicates the presence of
asbestos or the presence of asbestos is assumed, and if the application
is approved, HUD will condition the approval on an appropriate mix of
asbestos abatement and an asbestos Operations and Maintenance Plan.
(4) There must be a market need for the number of units proposed in
the area of the project location.
(5) You are required to include a Supportive Services Plan that
describes the supportive services proposed to be provided to the
anticipated occupants, including a description of the public or private
funds that are expected to fund the proposed services and the manner in
which the services will be provided to the proposed residents (see
Exhibit 5 in Section IV.B. of this NOFA). You must not require
residents to accept any supportive services as a condition of occupancy
or admission.
(6) Delinquent Federal Debt. Refer to the General Section for
information regarding delinquent federal debt.
3. Program Requirements. By signing Form HUD-92015-CA, Supportive
Housing for the Elderly Section 202, Application for Capital Advance
Summary Information, you are certifying that you will comply with all
program requirements listed in the General Section as well as the
following requirements:
a. Statutory and Regulatory Requirements. In addition to the
statutory, regulatory, threshold and public policy requirements listed
in the General Section, you must comply with all statutory and
regulatory requirements listed in Sections I and III of this NOFA.
b. Application/Project Size Limits.
(1) Application Limits Applicable to Sponsors or Co-Sponsors. A
Sponsor or Co-sponsor may not apply for more than 200 units of housing
for the elderly in a single Hub or more than 10 percent of the total
units allocated to all HUD offices. Affiliated entities (organizations
that are branches or offshoots of a parent organization) that submit
separate applications are considered a single entity for the purpose of
this limit.
(2) Maximum Project Size. No single application may propose the
development of a project for more than the number of units allocated to
a local HUD office (in either the metropolitan or nonmetropolitan
allocation category, depending on the location of your proposed
project) or 125 units, whichever is less. For example, the local HUD
office, which has jurisdiction over the area of your proposed project,
was allocated 80 units (metropolitan) and 20 units (nonmetropolitan)
for a total of 100 units. You cannot apply for more than 80 units if
your proposed project is in a metropolitan area and no more than 20
units if the project is in a nonmetropolitan area.
(3) Minimum Project Size. The minimum number of units that can be
applied for in one application is five units. If the proposed project
will be a scattered-site development, the five-unit minimum requirement
will apply to each site.
c. Minimum Capital Investment. If selected, you must provide a
minimum capital investment of one-half of one percent of the HUD-
approved capital advance amount, not to exceed $10,000 in accordance
with 24 CFR 891.145, with the following exception. If you, as Sponsor
or Co-Sponsor, have one or more Section 202 or one or more Section 811
project(s) under reservation, construction, or management in two or
more different HUD geographical regions (Hubs), the minimum capital
investment shall be one half of one percent of the HUD-approved capital
advance amount, not to exceed $25,000.
d. Accessibility. Your project must meet accessibility requirements
published at 24 CFR 891.120, 24 CFR 891.210, and Section 504 of the
Rehabilitation Act of 1973 and its implementing regulations at 24 CFR
Part 8, and, if new construction, the design and construction
requirements of the Fair Housing Act and HUD's implementing regulations
at 24 CFR part 100. In addition, 24 CFR 8.4(b)(5) prohibits the
selection of a site or location which has the purpose or effect of
excluding persons with disabilities from the federally assisted program
or activity. Refer to Section V.A. below and the General Section for
information regarding the policy priority of encouraging accessible design.
e. Conducting Business in Accordance with HUD Core Values and
Ethical Standards. You are not subject to the requirements of 24 CFR
parts 84 and 85 as outlined in the General Section, except that the
disposition of real property may be subject to 24 CFR part 84. However,
you are still subject to the core values and ethical standards as they
relate to the conflict of interest provisions in 24 CFR 891.130. To
ensure compliance with the program's conflict of interest provisions,
you are required to sign a Conflict of Interest Resolution and include
it in your Section 202 application. Further, if awarded a Section 202
fund reservation, the officers, directors, board members, trustees,
stockholders and authorized agents of the Section 202 Sponsor and Owner
entities will be required to submit to HUD individual certifications
regarding compliance with HUD's conflict of interest requirements.
f. National Environmental Policy Act. You must comply with the
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and
applicable related environmental authorities at 24 CFR 50.4, HUD's
programmatic implementing regulations at 24 CFR part 50 and 24 CFR
891.155(b), especially, but not limited to, the provision of
information to HUD at 24 CFR 50.31(b) and you must comply with any
environmental ``conditions and safeguards'' at 24 CFR 50.3(c).
Under 24 CFR Part 50, HUD has the responsibility for conducting the
environmental reviews. HUD cannot approve any site unless it first
completes the environmental review. In rare cases where HUD is not able
to complete the environmental review, it is due to a complex
environmental issue that could not be resolved during the time period
allocated for application processing. Thus, HUD requires you to attempt
to obtain comments from the State/Tribal Historic Preservation Officer
(see Exhibit 4(d)(ix) of Section IV.B. below) to help HUD complete the
environmental review on time. It is also why HUD may contact you for

[[Page 12016]]

additional environmental information. So that you can review the type
of information that HUD needs for its preparation of the environmental
review as well as the type of information requests that HUD may make to
you, you are invited to go to the following Web site to view the HUD
form 4128, including the Sample Field Notes Checklist, which HUD uses
to record the environmental review: http://www.hud.gov/utilities/intercept.cfm?/
offices/cpd/energyenviron/environment/compliance/forms/4128.pdf.
g. Executive Order 13202, Preservation of Open Competition and
Government Neutrality Towards Government Contractors' Labor Relations
on Federal and Federally Funded Construction Projects. Refer to the
General Section.
h. Fair Housing Requirements. Refer to the General Section for
information regarding fair housing requirements.
i. Economic Opportunities for Low and Very Low-Income Persons
(Section 3). You 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) and its implementing regulations at 24
CFR part 135. You must ensure that training, employment and other
economic opportunities shall, to the greatest extent feasible, be
directed toward low and very low-income persons, particularly those who
are recipients of government assistance for housing and to business
concerns which provide economic opportunities to low and very low-
income persons. To comply with Section 3 requirements you are hereby
certifying that you will strongly encourage your general contractor and
subcontractors to participate in local apprenticeship programs or
training programs registered or certified by the Department of Labor's
Office of Apprenticeship, Training, Employer and Labor Services or
recognized State Apprenticeship Agency. Although not a NOFA
requirement, you are encouraged to submit with your application a
description on how you plan to incorporate the Section 3 requirements
into your proposed project with goals for expanding training and
employment opportunities for low and very low-income (Section 3)
residents as well as business concerns. You will receive up to two (2)
points if you provide a description of your plans for doing so under
Exhibit 3(k) of this program NOFA.
j. Design and Cost Standards. You must comply with HUD's Section
202 design and cost standards (24 CFR 891.120 and 891.210), the Uniform
Federal Accessibility Standards (24 CFR 40.7), Section 504 of the
Rehabilitation Act of 1973 and HUD's implementing regulations at 24 CFR
part 8, and for covered multifamily dwellings designed and constructed
for first occupancy after March 13, 1991, the design and construction
requirements of the Fair Housing Act and HUD's implementing regulations
at 24 CFR part 100, and, where applicable, the Americans with
Disabilities Act of 1990.
HUD has adopted a wide-ranging energy action plan for improving
energy efficiency in all program areas. As a first step in implementing
the energy plan, HUD, the Environmental Protection Agency (EPA) and the
Department of Energy (DoE) have signed a joint partnership to promote
energy efficiency in HUD's affordable housing efforts and programs. The
purpose of the Energy Star partnership is not only to promote energy
efficiency of the affordable housing stock, but also to help protect
the environment.
k. Formation of Owner Corporation. You must form an Owner entity
(in accordance with 24 CFR 891.205) after issuance of the capital
advance fund reservation and must cause the Owner entity to file a
request for determination of eligibility and a request for capital
advance, and must provide sufficient resources to the Owner entity to
ensure the development and long-term operation of the project,
including capitalizing the Owner entity at firm commitment processing
in an amount sufficient to meet its obligations in connection with the
project over and above the capital advance amount.
l. Davis-Bacon. You must comply with the Davis-Bacon requirements
(12 U.S.C. 1701q(j)(5)) and the Contract Work Hours and Safety
Standards Act in accordance with 24 CFR 891.155(d).
4. Energy Efficiency. Although it is not a requirement, you are
encouraged to promote energy efficiency in design and operation of your
proposed project and your application will receive one (1) point if you
describe your plans for doing so in the proposed project. You are urged
especially to purchase and use Energy Star-labeled products. For
further information about Energy Star, see http://www.energystar.gov
or call 1-888-STAR-YES (1-888-782-7937) or for the hearing-impaired, 1-
888-588-9920 TTY.

IV. Application and Submission Information

Applicants are required to submit an electronic application unless
they receive a waiver of the requirement. See the General Section for
information on electronic application submission, procedures for
requesting a waiver, and timely submission and receipt requirements.
A. Address to Request Application Package. All information required
to complete and return a valid application is included in the General
Section and this NOFA, including other related documents. Applicants
may download the application and instructions from the Grants.gov Web
site at http://www.Grants.gov/Apply. If you have difficulty accessing
the information you may call the Grants.gov Support Desk toll free 800-
518-GRANTS or e-mail your questions to Support@Grants.gov. See the
General Section for information regarding the registration process or
ask for registration information from the Grants.gov Support Desk.
Copies of the General Section, this program section, and the required
forms are available and may be downloaded from the Grants.gov Web site
at http://www.Grants.gov.
You may request general information, copies of the General Section
and NOFA (including related documents ), from the NOFA Information
Center (800-HUD-8929 or 800-HUD-2209 (TTY)) Monday through Friday,
except on federal holidays. When requesting information, please refer
to the name of the program you are interested in.
B. Content and Form of Application Submission. The exhibits to be
included in your application are contained in the body of this NOFA.
Before preparing your application, you should carefully review the
requirements of the regulations (24 CFR part 891) and general program
instructions in Handbook 4571.3 REV-1, Section 202 Capital Advance
Program for Housing the Elderly. Note: Section 1001 of Title 18 of the
United States Code (Criminal Code and Criminal Procedure, 72 Stat. 967)
applies to all information supplied in the application submission. (18
U.S.C. 1001, among other things, provides that whoever knowingly and
willfully makes or uses a document or writing containing any false,
fictitious, fraudulent statement or entry, in any matter within the
jurisdiction of any department or agency of the United States, shall be
fined not more than $10,000 or imprisoned for not more than five years,
or both.)
The Application for a Section 202 Capital Advance consists of four
parts with a total of eight Exhibits. Included with the eight Exhibits
are prescribed forms, certifications and resolutions. The components of
the Application are:

Part 1--Application Form for Section 202 Supportive Housing--Capital
Advance (Exhibit 1)

[[Page 12017]]

Part 2--Your Ability to Develop and Operate the Proposed Project
(Exhibits 2 and 3)
Part 3--The Need for Supportive Housing for the Target Population in
the Area to be Served, Site Control and Suitability of Site, Adequacy
of the Provision of Supportive Services and of the Proposed Project
(Exhibits 4 and 5)
Part 4--General Application Requirements, Certifications and
Resolutions (Exhibits 6 through 8).

The following additional information, which may assist you in
preparing your application, is available on HUD's Web site at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

Listing of Local HUD Offices
Letter Requesting SHPO/THPO Review
Choosing an Environmentally Safe Site
Supplemental to Choosing an Environmentally Safe Site

Your application must include all of the information, materials,
forms, and exhibits listed below (unless you were selected for a
Section 202 fund reservation within the last three funding cycles). If
you qualify for this exception, you are not required to submit the
information described in Exhibits 2(a), (b), and (c), which are the
articles of incorporation, (or other organizational documents), by-
laws, and the IRS tax exemption, respectively. If there has been a
change in any of these documents since your previous HUD approval, you
must submit the updated information in your application. The local HUD
office will verify your previous HUD approval by checking the project
number and approval status with the appropriate local HUD office based
on the information submitted.
In addition to this relief of paperwork burden in preparing
applications, you will be able to use information and exhibits
previously prepared for prior applications under Section 202, Section
811, or other funding programs. Examples of exhibits that may be
readily adapted or amended to decrease the burden of application
preparation include, among others, those on previous participation in
the Section 202 or Section 811 programs, your experience in the
provision of housing and services, supportive services plans, community
ties, and experience serving minorities.
For programmatic information, you MUST contact the appropriate
local HUD office about the submission of applications within the
jurisdiction of that Office. A listing of the local HUD offices is
available on HUD's Web site at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
Please submit your application using the following format provided
in this NOFA. For applications to be submitted electronically, in which
you have created files to be attached to the electronic application,
you should number the pages of the attached file and include a header
that identifies the exhibit that it relates to.
For applicants that have received a waiver of the electronic
application submission, you must number the pages of each file,
narratives and other attached files. Include the name of your
organization, your DUNS number, and the exhibit number that you are
responding to on the header of each document.
1. Table of Contents (This is also to be used as a checklist to
assist you in submitting a complete application. For applicants who
received a waiver of the electronic application submission, after your
application is complete, you must insert the page number after each
Exhibit or portion of the Exhibit item listed below.)
a. Part I--Application Form for Section 202 Supportive Housing--Capital
Advance
(1) Exhibit 1: Form HUD-92015-CA, Supportive Housing for the Elderly:

Section 202, Application for Capital Advance Summary Information
b. Part II--Your Ability To Develop and Operate the Proposed Project
(1) Exhibit 2: Your Legal Status
(a) Articles of Incorporation (or other organizational documents);
(b) By-laws;
(c) IRS Tax Exemption Ruling.

[Exception: See exhibit to determine if you may be exempt from
submitting these documents.]

(2) Exhibit 3: Your purpose, community ties and experience:
(a) Purpose(s), current activities, how long you have been in
existence;
(b) Ties to the community at large, to the target population, and
description of geographic areas served;
(c) Local government support for project;
(d) Letters of support for your organization and for the proposed
project;
(e) Housing and/or supportive services experience;
(f) Efforts to involve target population;
(g) Description of practical solutions to be implemented;
(h) Project Development Timeline;
(i) Description of how project will remain viable, including:
(i) If service funds are depleted;
(ii) For State-funded services, if State changes policy;
(iii) If the need for project changes;
(j) Description of efforts to remove barriers to affordable housing;
(k) Description of your plans to incorporate Section 3
requirements, Economic Opportunities for Low- and Very Low-Income
Persons, in proposed project (optional, but required to received up to
2 points).
c. Part III--The Need for Supportive Housing for the Target Population
in the Area To Be Served, Site Control and Suitability of Site,
Adequacy of the Provision of Supportive Services and of the Proposed
Project
(1) Exhibit 4: Project information including:
(a) Evidence of need for project;
(b) How project will benefit target population and community;
(c) A narrative description of the project, including:
(i) Building design;
(ii) Whether and how project will promote energy efficiency;
(iii) If applicable, description of plans and actions to create a
mixed-finance project for additional units and the number of additional
units;
(d) Evidence of site control and permissive zoning;
(i) Site control document(s);
(ii) Evidence site is free of limitations, restrictions, or reverters;
(iii) Evidence of permissive zoning or statement of proposed action
required to make project permissible;
(iv) Evidence of compliance with the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970, as amended (URA)
site notification requirement;
(v) Narrative topographical/demographic description of site/area
suitability, how site will promote greater housing opportunities for
minorities/target population;
(vi) Racial composition/concentration map of site;
(vii) Phase I Environmental Site Assessment;
(viii) Asbestos Statement or Survey;
(ix) Letter to State/Tribal Historic Preservation Officer (SHPO/
THPO) and a statement that SHPO/THPO failed to respond to you OR a copy
of the response letter received from SHPO/THPO.
(2) Exhibit 5: Supportive Services Plan:
(a) Description of services;
(b) Public/private funding sources for proposed services;
(c) Manner in which services will be provided.

[[Page 12018]]

d. Part IV--General Application Requirements, Certifications and Resolutions
(1) Exhibit 6: Other Applications:
(a) A list of applications, if any, you are submitting to any other
local HUD Office in response to the FY 2006 Section 202 or Section 811
NOFA, and required information about each;
(b) A list of all FY 2005 and prior years Section 202 or Section
811 projects to which you are a party and the required information
about each.
(2) Exhibit 7: A statement that:
(a) Identifies all persons occupying property on application
submission date;
(b) Indicates estimated cost of relocation payments/other services;
(c) Identifies staff organization that will carry out relocation
activities;
(d) Identifies all persons who have moved from site within past 12
months.
(3) Exhibit 8: Standard Forms, Certifications and Resolutions:
(a) Standard Form 424, Application for Federal Assistance with copy
of the letter you sent to the State Point of Contact, if applicable;
(b) Standard Form 424 Supplement, Survey on Ensuring Equal
Opportunity for Applicants;
(c) Standard Form LLL, Disclosure of Lobbying Activities, if
applicable;
(d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report;
(e) Form HUD-2991, Certification of Consistency with the
Consolidated Plan;
(f) Form HUD-92041, Sponsor's Conflict of Interest Resolution;
(g) Form HUD-92042, Sponsor's Resolution for Commitment to Project;
(h) Form HUD-2990, Certification of Consistency with the RC/EZ/EC-
II Strategic Plan, if applicable;
(i) Form HUD-96010, Program Outcome Logic Model;
(j) Form HUD-27300, Questionnaire for HUD's Initiative on Removal
of Regulatory Barriers (optional form, but required to receive up to 2
points);
(k) Form HUD-96011, Facsimile Transmittal, must be used as the
cover page to any facsimile submitted using the facsimile solution
(i.e., for faxing third party letters and other documents for your
electronic application in accordance with the instructions in the
General Section;
(l) Form HUD-2994-A, You Are Our Client/Grant Applicant Survey
(optional).

2. Programmatic Applications Requirements

a. Part I--Application Form for Section 202 Supportive Housing--Capital
Advance
(1) Exhibit 1: Form HUD-92015-CA, Supportive Housing for the
Elderly Section 202, Application for Capital Advance Summary
Information. A copy of this form is available at the Grants.gov Web
site at http://www.grants.gov.
b. Part II--Your Ability To Develop and Operate the Proposed Project
(1) Exhibit 2: Evidence of your legal status (Private nonprofit or
nonprofit consumer cooperative (If another organization(s) is co-
sponsoring the application with you, each co-Sponsor must also submit
the following):
(a) Articles of Incorporation, constitution, or other
organizational documents;
(b) By-laws;
(c) IRS tax exemption ruling (this must be submitted by all
Sponsors, including churches).

Note: Based on a HUD review of your articles of incorporation,
constitution, or other organizational documents, HUD must determine,
among other things, that (1) you are an eligible private nonprofit
entity and are not a public body or an instrumentality of a public
body, (2) your corporate purposes are sufficiently broad to provide
you the legal authority to sponsor the proposed project for the
elderly, to assist the Owner, and to apply for a capital advance,
(3) no part of the Sponsor's net earnings inures to the benefit of
any private party, and (4) that you are not controlled by or under
the direction of persons seeking to derive profit or gain therefrom.
[Exception: If you received a section 202 fund reservation
within the last three funding cycles, you are not required to submit
the documents described in (A), (B), and (C) above. Instead, submit
the project number of the latest application and the local HUD
office to which it was submitted. If there have been any
modifications or additions to the subject documents, indicate such,
and submit the new material.]

(2) Exhibit 3: Your purpose, community ties and experience:
(a) A description of your purpose(s), current activities, including
your ability to enlist volunteers and raise private local funds, and
how long you have been in existence.
(b) A description of your ties to the community in which your
project will be located and to the minority and elderly communities in
particular, including a description of the specific geographic area(s)
in which you have served.
(c) A description of local government support for the project
(including financial assistance, donation of land, provision of
services, etc.).
(d) Letters of support for your organization and for the proposed
project from organizations familiar with the housing and supportive
services needs of the target population that you expect to serve in the
proposed project.
(e) A description of your housing and/or supportive services
experience. The description should include any rental housing projects
and/or supportive services facilities that you sponsored, own and/or
operate, your past or current involvement in any programs other than
housing that demonstrates your management capabilities (including
financial management) and experience, your experience in serving the
target population (the elderly and/or families and minorities); and the
reasons for receiving any increases in fund reservations for developing
and/or operating previously funded Section 202 or Section 811 projects.
The description should include data on the facilities and services
provided, the racial/ethnic composition of the populations served, if
available, and information and testimonials from residents or community
leaders on the quality of the activities. Examples of activities that
could be described include housing counseling, nutrition and food
services, special housing referral, screening and information projects.
(f) A description of your efforts to involve members of the target
population (elderly persons, including minority elderly persons) in the
development of the application as well as your intent to involve the
target population in the development and operation of the project.
(g) A description of the practical solutions you will implement
which will enable residents of your project to achieve independent
living. In addition, describe the educational opportunities you will
provide for the residents and how you will provide them. This
description should include any activities that will enhance the quality
of life for the residents. And, finally, describe how your proposed
project will be an improved living environment for the residents when
compared to their previous place of residence.
(h) Describe your plan for completing the proposed project. Include
a project development timeline which lists the major development stages
for the project with associated dates that must be met in order to get
the project to initial closing and start of construction within the 18-
month fund reservation period as well as the full completion of the
project, including final closing.

[[Page 12019]]

Completion of Exhibit 8(i), Program Outcome Logic Model, will assist
you in completing your response to this Exhibit.
(i) Describe how you will ensure that your proposed project will
remain viable as housing with the availability of supportive services
for the target population for the 40-year capital advance period. This
description should address the measures you would take should any of
the following occur:
(i) Funding for any of the needed supportive services becomes depleted;
(ii) If, for any state-funded services for your project, the state
changes its policy regarding the provision of supportive services to
projects such as the one you propose; or
(iii) If the need for housing for the population you will be
serving wanes over time, causing vacancies in your project.
(j) A description of the successful efforts the jurisdiction in
which your project will be located has taken in removing regulatory
barriers to affordable housing. To obtain up to 2 points for this
policy priority, you must complete the optional Form HUD-27300,
``Questionnaire for HUD's Initiative on Removal of Regulatory
Barriers'' in Exhibit 8(j) of the application AND provide the necessary
URL references or submit the documentary evidence.
(k) A description on how you plan to incorporate the Section 3
requirements into your proposed project with goals for expanding
training and employment opportunities for low- and very low-income
(Section 3) persons as well as business concerns. This exhibit is
optional, but to obtain up to 2 points for this policy priority, you
must submit this exhibit and adequately address your plans to provide
opportunities to train and employ low- and very low-income residents of
the project area and award substantial contracts to persons residing in
the project area.
c. Part III--The Need for Supportive Housing for the Target Population,
Site Control and Suitability of Site, Adequacy of the Provision of
Supportive Services and of the Proposed Project
(1) Exhibit 4: Need and Project Information
(a) Evidence of need for supportive housing. Include a description
of the category or categories of elderly persons the housing is
intended to serve and evidence demonstrating sustained effective demand
for supportive housing for that population in the market area to be
served, taking into consideration the occupancy and vacancy conditions
in existing federally assisted housing for the elderly (HUD and the
Rural Housing Service (RHS)) e.g., public housing, state or local data
on the limitations in activities of daily living among the elderly in
the area; aging in place in existing assisted rentals; trends in
demographic changes in elderly population and households; the numbers
of income eligible elderly households by size, tenure and housing
condition; the types of supportive services arrangements currently
available in the area; and the use of such services as evidenced by
data from local social service agencies or agencies on aging. Also, a
description of how information in the community's or (where applicable)
the state's Consolidated Plan, Analysis of Impediments to Fair Housing
Choice (AI) or other planning document that analyzes fair housing
issues was used in documenting the need for the project.
(b) A description of how the proposed project will benefit the
target population and the community in which it will be located.
(c) Description of the project.
(i) Narrative description of the building design including a
description of the number of units with bedroom distribution, any
special design features, including any features that incorporate
visitability standards and universal design, amenities, and/or
commercial and community spaces, and how this design will facilitate
the delivery of services in an economical fashion and accommodate the
changing needs of the residents over the next 10-20 years.

Note: If the community spaces, amenities, or features do not
comply with the project design and cost standards of 24 CFR
891.120(a) and (c), the special standards of 24 CFR 891.210, and the
limitation on bedroom unit sizes as required by paragraph 1-11.B.4.
of HUD Handbook 4571.3 REV-1, you must demonstrate your ability and
willingness to contribute both the incremental development cost and
continuing operating cost associated with the community spaces,
amenities, or features;

(ii) Describe whether and how the project will promote energy
efficiency (in accordance with the requirements set forth in Section
III.C.3.j. and III.C.4.of this NOFA), including any plans to
incorporate energy efficiency features in the operation of the project
through the use of Energy Star labeled products and appliances and, if
applicable, innovative construction or rehabilitation methods or
technologies to be used that will promote efficient construction.
(iii) If you are proposing to develop a mixed-finance project by
developing additional units for the elderly (i.e., in addition to the
202 units), a description of any plans and actions you have taken to
create such a mixed-finance project with the use of Section 202 capital
advance funds, in combination with other funding sources. Provide the
number of non-Section 202 units to be included in the mixed-finance
project (also provide the number of additional units in the appropriate
space on Form HUD-92015-CA). Also, provide copies of any letters you
have sent seeking outside funding for the non-Section 202 units and any
responses thereto. You also must demonstrate your ability to proceed
with the development of a Section 202 project that will not involve
mixed-financing, as proposed in your application, in the event you are
later unable to obtain the necessary outside funding or HUD disapproves
your proposal for a mixed-finance project for additional non-Section
202 units for the elderly.

(d) Evidence of site control and permissive zoning.
(i) Acceptable evidence of site control is limited to any one of
the following:
(A) Deed or long-term leasehold which evidences that you have title
to or a leasehold interest in the site. If a leasehold, the term of the
lease must be at least 50 years with renewable provisions for 25 years,
except for sites on Indian trust land, in which case, the term of the
lease must be at least 50 years with no requirement for extensions;
(B) Contract of sale for the site that is free of any limitations
affecting the ability of the seller to deliver ownership to you after
you receive and accept a notice of Section 202 capital advance. (The
only condition for closing on the sale can be your receipt and
acceptance of the capital advance.) The contract of sale cannot require
closing earlier than the Section 202 closing;
(C) Option to purchase or for a long-term leasehold, which must
remain in effect for six months from the date on

[[Page 12020]]

which the applications are due, must state a firm price binding on the
seller, and be renewable at the end of the six-month period. The only
condition on which the option may be terminated is if you are not
awarded a fund reservation;
(D) If the site is covered by a mortgage under a HUD program,
(e.g., a previously funded Section 202 or Section 811 project or an
FHA-insured mortgage) you must submit evidence of site control as
described above and evidence that consent to release the site from the
mortgage has been obtained or has been requested from HUD (all required
information in order for a decision on the request for a partial
release of security must have been submitted to the local HUD office)
and from the mortgagee, if other than HUD. Approval to release the site
from the mortgage must be done before the local HUD office makes its
selection recommendations to HUD Headquarters. Refer to Chapter 16 of
HUD Handbook 4350.1 REV-1, Multifamily Asset Management and Project
Servicing, for instructions on submitting requests to the local HUD
office for partial release of security from a mortgage under a HUD
program; or
(E) For sites to be acquired from a public body, evidence is needed
that the public body possesses clear title to the site and has entered
into a legally binding agreement to lease or convey the site to you
after you receive and accept a notice of Section 202 capital advance.
Where HUD determines that time constraints of the funding round will
not permit you to obtain all of the required official actions (e.g.,
approval of Community Planning Boards) that are necessary to convey
publicly-owned sites, you may include in your application a letter from
the mayor or director of the appropriate local agency indicating that
conveyance or leasing of the site is acceptable without imposition of
additional covenants or restrictions, and only contingent on the
necessary approval action. Such a letter of commitment will be
considered sufficient evidence of site control.
(ii) Whether you have title to the site, a contract of sale, an
option to purchase, or are acquiring a site from a public body, you
must provide evidence (a current title policy or other acceptable
evidence) that the site is free of any limitations, restrictions, or
reverters which could adversely affect the use of the site for the
proposed project for the 40-year capital advance period under HUD's
regulations and requirements (e.g., reversion to seller if title is
transferred). If the title evidence contains restrictions or covenants,
copies of the restrictions or covenants must be submitted with the
application. If the site is subject to any such limitations,
restrictions, or reverters, the application will be rejected. Purchase
money mortgages that will be satisfied from capital advance funds are
not considered to be limitations or restrictions that would adversely
affect the use of the site. If the contract of sale or option agreement
contains provisions that allow a Sponsor not to purchase the property
for reasons such as environmental problems, failure of the site to pass
inspection, or the appraisal is less than the purchase price, then such
provisions are not objectionable and a Sponsor is allowed to terminate
the contract of sale or the option agreement.

Note: A proposed project site may not be acquired or optioned
from a general contractor (or its affiliate) that will construct the
Section 202 project or from any other development team member.

(iii) Evidence that the project, as proposed, is permissible under
applicable zoning ordinances or regulations or a statement of the
proposed action required to make the proposed project permissible and
the basis for the belief that the proposed action will be completed
successfully before the submission of the firm commitment application
(e.g., a summary of the results of any requests for rezoning and/or the
procedures for obtaining special or conditional use permits on land in
similar zoning classifications and the time required for such rezoning,
or preliminary indications of acceptability from zoning bodies, etc.).
(iv) Evidence of compliance with the URA requirement that the
seller has been provided, in writing, with the required information
regarding a voluntary, arm's length purchase transaction (i.e., (1)
applicant does not have the power of eminent domain and, therefore,
will not acquire the property if negotiations fail to result in an
amicable agreement, and (2) of the estimate of the fair market value of
the property).

Note: This information should have been provided before making
the purchase offer. However, in those cases where there is an
existing option or contract, the seller must be provided the
opportunity to withdraw from the agreement or transaction, without
penalty, after this information is provided.

(v) Narrative describing topographical and demographic aspects of
the site, the suitability of the site and area (as well as a
description of the characteristics of the neighborhood), how use of the
site will promote greater housing opportunities for minority elderly
and elderly persons with disabilities, and how use of the site will
affirmatively further fair housing.

Note: You can best demonstrate your commitment to affirmatively
furthering fair housing by describing how your proposed activities
will assist the jurisdiction in overcoming impediments to fair
housing choice identified in the applicable jurisdiction's Analysis
of Impediments (AI) to Fair Housing Choice, which is a component of
the jurisdiction's Consolidated Plan or any other planning document
that addresses fair housing issues. The applicable Consolidated Plan
and AI may be the community's, the county's, or the state's, to
which input should have been provided by local community
organizations, agencies in the community and residents of the
community. Alternatively, a document that addresses fair housing
issues and remedies to barriers to fair housing in the community
that was previously prepared by a local planning, or similar
organization, may be used. Applicable impediments could include the
need for improved housing quality and services for elderly minority
families, lack of affirmative marketing and outreach to minority
elderly persons, and the need for quality eldercare services within
areas of minority concentration when compared with the type and
quality of similar services and housing in nonminority areas.

(vi) A map showing the location of the site, the racial composition
of the neighborhood, and any areas of racial concentration.

(vii) A Phase I Environmental Site Assessment (ESA), in accordance
with the ASTM Standards E 1527-05, as amended, must be undertaken and
completed by you and submitted with the application. In order for the
Phase I ESA to be acceptable, it must have been completed or updated no
earlier than six months prior to the application deadline date.
Therefore, it is important to start the site assessment process as soon
after the publication of the NOFA as possible.
If the Phase I ESA indicates possible presence of contamination
and/or hazards, you must decide whether to continue with this site or
choose another site. Should you choose another site, the same Phase I
ESA process identified above must be followed for the new site. If the
property is to be acquired from the FDIC/RTC, include a copy of the
FDIC/RTC prepared

[[Page 12021]]

Transaction Screen Checklist or Phase I ESA and applicable
documentation, per the FDIC/RTC Environmental Guidelines. If you choose
to continue with the original site on which the Phase I ESA indicated
contamination or hazards, you must undertake a detailed Phase II ESA by
an appropriate professional. If the Phase II Assessment reveals site
contamination, you must submit the extent of the contamination and a
plan for clean-up of the site including a contract for remediation of
the problem(s) and an approval letter from the applicable federal,
state, and/or local agency with jurisdiction over the site to the local
HUD office. The Phase II ESA and any necessary plans for clean-up do
not have to be submitted with the application but must be received by
the local HUD office by July 3, 2006. If it is not received by that
date, the application will be rejected.

Note: You must pay for the cost of any clean-up or remediation,
which can be very expensive. See NOTE at Section
III.C.2.b.(3)(c)(iii).

(viii) You must submit one of the following:
(A) If there is no pre-1978 structures on the site or if there are
pre-1978 structures, that most recently consisted of solely four or
fewer units of single-family housing including appurtenant structures
thereto, a statement to this effect, or
(B) If there are pre-1978 structures on the site, other than for a
site that most recently consisted of solely four or fewer units of
single-family housing including appurtenant structures thereto, a
comprehensive building asbestos survey that is based on a thorough
inspection to identify the location and condition of asbestos
throughout any structures.

Note: In those cases where suspect asbestos is found, it would
either be assumed to be asbestos or would require confirmatory
testing. If the asbestos survey indicates the presence of asbestos,
or the presence of asbestos is assumed, and if the application is
approved, HUD will condition the approval on an appropriate mix of
asbestos abatement and an asbestos Operations and Maintenance Plan.

Note: You may not require residents, as a condition of admission
or occupancy, to accept any supportive services.

d. Part IV--General Application Requirements, Certifications and
Resolutions
(1) Exhibit 6: Other Applications
(a) A list of the applications, if any, you are submitting to any
other local HUD office in response to the FY2006 Section 202 or Section
811 NOFA. Indicate by local HUD office, the proposed location by city
and state and the number of units requested for each application.
(b) Include a list of all FY2005 and prior years Section 202 and
Section 811 capital advance projects to which you are a party. Identify
each by project number and local HUD office and include the following
information:
(1) Whether the project has initially closed and, if so, when;
(2) If the project was older than 24 months when it initially
closed (specify how old) or if older than 24 months now (specify how
old) and has not initially closed, provide the reasons for the delay in
closing;
(3) Whether amendment money was or will be needed for any project
in (2) above; and, (4) Those projects that have not been finally closed.
(2) Exhibit 7: A statement that:
(a) Identifies all persons (families, individuals, businesses and
nonprofit organizations) by race/minority group, and status as owners
or tenants occupying the property on the date of submission of the
application for a capital advance.
(b) Indicates the estimated cost of relocation payments and other
services.
(c) Identifies the staff organization that will carry out the
relocation activities.
(d) Identifies all persons that have moved from the site within the
past 12 months.

Note: If any of the relocation costs will be funded from sources
other than the Section 202 capital advance, you must provide
evidence of a firm commitment of these funds. When evaluating
applications, HUD will consider the total cost of proposals (i.e.,
cost of site acquisition, relocation, construction and other project costs).

(3) Exhibit 8: Standard Forms, Certifications and Resolutions. You
are required to submit completed copies of the following forms which
are available on the Grants.gov Web site at http://www.grants.gov.
(a) Standard Form 424--Application for Federal Assistance,
including a DUNS number, an indication of whether you are delinquent on
any federal debt, and compliance with Executive Order 12372 (a
certification that you have submitted a copy of your application, if
required, to the State agency (Single Point of Contact/(SPOC)) for
state review in accordance with Executive Order 12372). If the SPOC
requires a review of your application, you must include in your Section
202 application, a copy of the cover letter sent to the SPOC. Refer to
Section IV.D. of this NOFA for additional information on compliance
with Executive Order 12372. Note: For Section 202 program purposes, in
Item 12, Areas Affected by Project, of SF-424, provide the names of the
City, County and State where the project will be located (not the
largest political entities as indicated on the instructions page of SF-424).
(b) Standard Form 424 Supplement, Survey on Ensuring Equal
Opportunity for Applicants. Although the information on this form will
not be considered in making funding decisions, it will assist the
federal government in ensuring that all qualified applicants have an
equal opportunity to compete for federal funding.
(c) Standard Form LLL--Disclosure of Lobbying Activities (if
applicable). A disclosure of activities conducted to influence any
federal transactions.
(d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report,
including Social Security and Employee Identification Numbers. A
disclosure of assistance from other government sources received in
connection with the project.
(e) Form HUD-2991, Certification of Consistency with the
Consolidated Plan (Plan) for the jurisdiction in which the proposed
project will be located. The certification must be made by the unit of
general local government if it is required to have, or has, a complete
Plan. Otherwise, the certification may be made by the state or by the
unit of general local government if the project

[[Page 12022]]

will be located within the jurisdiction of the unit of general local
government authorized to use an abbreviated strategy, and if it is
willing to prepare such a Plan. All certifications must be made by a
public official responsible for submitting the Plan to HUD. The
certifications must be submitted as part of the application by the
application submission deadline date set forth in the NOFA. The Plan
regulations are published in 24 CFR part 91.
(f) Form HUD-92041, Sponsor's Conflict of Interest Resolution. A
certified Board Resolution that no officer or director of the Sponsor
or Owner has or will have any financial interest in any contract with
the Owner or in any firm or corporation that has or will have a
contract with the Owner, including a current listing of all duly
qualified and sitting officers and directors by title and the beginning
and ending dates of each person's term.
(g) Form HUD-92042, Sponsor's Resolution for Commitment to Project.
A certified Board Resolution acknowledging responsibilities of
sponsorship, long-term support of the project(s), your willingness to
assist the Owner to develop, own, manage and provide appropriate
services in connection with the proposed project, and that it reflects
the will of your membership. Also, it shall indicate your willingness
to fund the estimated start-up expenses, the Minimum Capital Investment
(one-half of one-percent of the HUD-approved capital advance, not to
exceed $10,000 or for national Sponsors, not to exceed $25,000), and
the estimated cost of any amenities or features (and operating costs
related thereto) that would not be covered by the approved capital advance.
(h) Form HUD-2990, Certification of Consistency with the RC/EZ/EC-
II Strategic Plan. A certification that the project is consistent with
the RC/EZ/EC-IIs strategic plan, is located within the RC/EZ/EC-II, and
serves RC/EZ/EC-II residents. (This certification is not required if
the project site(s) will not be located in a RC/EZ/EC-II.)
(i) Form HUD-96010, Program Outcome Logic Model. In addition to the
Project Development Timeline to be submitted in Exhibit 3(h) above, the
information provided in the Logic Model will be used in rating your
application for Rating Factor 5, Achieving Results and Program Evaluation.
(j) Form HUD-27300, Questionnaire for HUD's Initiative on Removal
of Regulatory Barriers (optional form). To receive up to 2 points, you
must submit this form and provide a reference, URL or brief statement
documenting the successful efforts in removing barriers to affordable
housing by the jurisdiction in which your project will be located. This
Questionnaire will be considered in the rating of your application for
Rating Factor 3.j.
(k) Form HUD-96011, Facsimile Transmittal, is only required if you
are using the facsimile method to fax third party letters and other
documents for your electronic application in accordance with the
instructions in the General Section.

Note: HUD will not accept entire applications by fax. If you
submit the application entirely by fax, it will be disqualified.

(l) Form HUD-2994-A, You Are Our Client Grant Applicant Survey.
This is an optional form, which may be used to provide suggestions and
comments to the Department regarding your application submission experience.
C. Submission Dates and Time. Your application must be received and
validated electronically by Grants.gov no later than 11:59:59 p.m.
Eastern time on the application deadline date of June 2, 2006, unless a
waiver of the electronic delivery process has been approved by HUD.
Please refer to the General Section for instructions on applying for a
waiver. HUD strongly recommends that applicants that are unable to
submit its application electronically and must seek a waiver of the
electronic grant submission requirement, submit its waiver request to
the Assistant Secretary for Housing at the following address no later
than 15 days before the application deadline date. Brian D. Montgomery,
Assistant Secretary for Housing-Federal Housing Commissioner,
Department of Housing and Urban Development, 451 Seventh Street, SW.,
Room 9100, Washington, DC 20410-8000.
If a waiver is granted, you must mail copies of the application so
that it can be received at the appropriate local HUD office no later
than 11:59:59 p.m. on the application deadline date of June 2, 2006.
The letter granting the waiver will provide instructions regarding the
number of copies and where the application must be sent.
D. Intergovernmental Review. 1. State Review. This funding
opportunity is subject to Executive Order (EO) 12372,
``Intergovernmental Review of Federal Programs.'' You must contact your
State's Single Point of Contact (SPOC) to find out about and comply
with the state's process under EO 12372. The names and addresses of the
SPOCs are listed in the Office of Management and Budget's home page at
http://www.whitehouse.gov/omb/grants/spoc.html. If required by the
state, the submission to the state needs to occur before the Section
202 application deadline date, but in no event later than the
application deadline date. It is recommended that you provide the state
with sufficient time to review the application. Therefore, it is
important that you consult with the SPOC for State review timeframes
and take that into account when submitting the application. If the SPOC
requires a review of your application, you must include a copy of the
cover letter you sent to the SPOC in Exhibit 8(a) of your Section 202
application.
2. HUD/RHS Agreement. HUD and the Rural Housing Service (RHS) have
an agreement to coordinate the administration of the agencies'
respective rental assistance programs. As a result, HUD is required to
notify RHS of applications for housing assistance it receives. This
notification gives RHS the opportunity to comment if it has concerns
about the demand for additional assisted housing and possible harm to
existing projects in the same housing market area. HUD will consider
RHS' comments in its review and application selection process.
E. Funding Restrictions.
1. Ineligible Activities. Section 202 funds may not be used for:
a. Nursing homes;
b. Infirmaries;
c. Medical facilities;
d. Mobile homes;
e. Community centers;
f. Headquarters for organizations for the elderly;
g. Nonhousekeeping accommodations (e.g., central dining, but
without private kitchens and/or bathrooms in the residential units);
h. Refinancing of sponsor-owned facilities without rehabilitation,
i. Housing that you currently own or lease that is occupied by
elderly persons; and
j. Projects licensed or to be licensed as assisted living facilities.

Note: You may propose to rehabilitate an existing currently-
owned or leased structure that does not already serve elderly
person, except that the refinancing of any federally-funded or
assisted project or project insured or guaranteed by a federal
agency is not permissible under this Section 202 NOFA. HUD does not
consider it appropriate to utilize scarce program resources to
refinance projects that have already received some form of
assistance under a federal program. (For example, Section 202 or
Section 202/8 direct loan projects cannot be refinanced with capital
advances and project rental assistance.)

2. Application Limits (Units/Projects). Refer to Section III.C. of
this NOFA for

[[Page 12023]]

information applicable to the limitations on the number of units you
may apply for in a single application and the project sizes.
3. Development Cost Limits. a. The following development cost
limits, adjusted by locality as described in Section IV.E.3.b. below
must be used to determine the capital advance amount to be reserved for
projects for the elderly.

Note: The capital advance funds awarded for this project are to
be considered the total amount of funds that the Department will
provide for the development of this project. Amendment funds will
only be provided in exceptional circumstances (e.g., to cover
increased costs for construction delays due to litigation or
unforeseen environmental issues resulting in a change of sites) that
are clearly beyond your control. Otherwise, you are responsible for
any costs over and above the capital advance amount provided by the
Department as well as any costs associated with any excess amenities
and design features.

(1) The capital advance amount for the project attributable to
dwelling use (less the incremental development cost and the capitalized
operating costs associated with any excess amenities and design
features and other costs you must pay for) may not exceed:
Non-elevator structures:

$42,980 per family unit without a bedroom;
$49,557 per family unit with one bedroom;
$59,766 per family unit with two bedrooms;

For elevator structures:

$45,232 per family unit without a bedroom;
$51,849 per family unit with one bedroom;
$63,049 per family unit with two bedrooms.

(2) These cost limits reflect those costs reasonable and necessary
to develop a project of modest design that complies with HUD minimum
property standards; the accessibility requirements of Sec. 891.120(b);
and the project design and cost standards of Sec. 891.120 and Sec.
891.210.
b. Increased development cost limits. (1) HUD may increase the
development cost limits set forth above, by up to 140 percent in any
geographic area where the cost levels require, and may increase the
development cost limits by up to 160 percent on a project-by-project
basis. This increase may include covering additional costs to make
dwelling units accessible through rehabilitation.

Note: In applying the applicable high cost percentage, the local
HUD Office may use a percentage that is higher or lower than that
which is assigned to the local HUD Office if it is needed to provide
a capital advance amount that is comparable to what it typically
costs to develop a Section 202 project in that area.

(2) If HUD finds that high construction costs in Alaska, Guam, the
Virgin Islands, or Hawaii make it infeasible to construct dwellings,
without the sacrifice of sound standards of construction, design, and
livability, within the development cost limits provided in sections
IV.E.3.a.(1) and IV.E.3.b.(1) above, the amount of the capital advances
may be increased to compensate for such costs. The increase may not
exceed the limits established under this section (including any high
cost area adjustment) by more than 50 percent.
4. Commercial Facilities. A commercial facility for the benefit of
the residents may be located and operated in the Section 202 project.
However, the commercial facility cannot be funded with the use of
Section 202 capital advance or PRAC funds. The maximum amount of space
permitted for a commercial facility cannot exceed 10 percent of the
total project cost. An exception to this 10 percent limitation is if
the project involves acquisition or rehabilitation and the additional
space was incorporated in the existing structure at the time the
proposal was submitted to HUD. Commercial facilities are considered
public accommodations under Title III of the Americans with
Disabilities Act of 1990 (ADA), and thus must comply with all the
accessibility requirements of the ADA.
5. Expiration of Section 202 Funds. The Department of Housing and
Urban Development Appropriations Act, 2006, requires HUD to obligate
all Section 202 funds appropriated for FY 2006 by September 30, 2009.
Under 31 U.S.C. Section 1551, no funds can be disbursed from this
account after September 30, 2014. Under Section 202, obligation of
funds occurs for both capital advances and project rental assistance
upon fund reservation and acceptance. If all funds are not disbursed by
HUD and expended by the project Owner by September 30, 2014, the funds,
even though obligated, will expire and no further disbursements can be
made from this account. In submitting an application you need to
carefully consider whether your proposed project can be completed
through final capital advance closing no later than September 30, 2014.
Furthermore, all unexpended balances, including any remaining balance
on PRAC contracts, will be cancelled as of October 1, 2014. Amounts
needed to maintain PRAC payments for any remaining term on the affected
contracts beyond that date will have to be funded from other current
appropriations.
F. Other Submission Requirements:
1. Address for Submitting Applications. Applications must be submitted
electronically through the http://www.grants.gov Web site,
unless the applicant receives a waiver from the electronic application
submission requirement. See the General Section, Application Submission
and Receipt Procedures, for information on applying online. If you
apply for and receive a waiver from the electronic application
requirement, you must submit an original and four copies of your
completed application to the Director of the appropriate local HUD
office. Refer to HUD's Web site at http://www.hud.gov/offices/adm/
grants/fundsavail.cfm for a listing of local HUD offices. The
applications submitted electronically via http://www.Grants.gov
will be downloaded and forwarded to the appropriate local HUD office.
2. Special Instructions for Section 202 Applications That Will Have
More Than One Applicant, i.e., Co-Sponsors. The applicants must
designate a single individual to act as the authorized representative
for all co-Sponsors of the application. The designated authorized
representative of the organization submitting the application must be
registered with Grants.gov, the Federal Central Contractor Registry and
with the credential provider for E-Authentication. Information on the
Grants.gov registration process is found at HUD's Web site at http://
www.hud.gov/offices/adm/grants/fundsavail.cfm. (Ours are
clearer instructions.) When the application is submitted through Grants.gov,
the name of the designated authorized representative will be inserted
into the signature line of the application. Please note that the
designated authorized representative must be able to make legally
binding commitments for each co-Sponsor to the application.
Each co-Sponsor must complete the documents required of all co-
sponsoring organizations to permit HUD to make a determination on the
eligibility of the co-Sponsor(s) and the acceptability of the
application based on the assistance and commitments the co-Sponsor(s)
has pledged to the project. Therefore, each co-Sponsor must submit the
following information using the scanning and/or faxing method described
in Section IV. of the General Section: Standard Form-424, Application
for Federal Assistance; Standard Form-424 Supplement, Survey on
Ensuring Equal Opportunity for Applicants; Standard Form LLL,
Disclosure of Lobbying Activities (if

[[Page 12024]]

applicable); Form HUD-92015-CA, Section 202 Application for Capital
Advance, Summary Information; Form HUD-92041, Sponsor's Conflict of
Interest Resolution; and Form HUD-92042, Sponsor's Resolution for
Commitment to Project. The forms identified above are discussed in the
Program instructions package and can be downloaded from Grants.gov
under the program application download at http://www.grants.gov. The
downloaded and completed forms should be saved as separate electronic
files and attached to the electronic application submission following
the requirements of Section IV.
As stated in the General Section, Section IV, scanning documents to
create electronic files increases the size of the file. Therefore,
applicants may not submit scanned files unless using the facsimile
method as stated in the General Section will not work due to the nature
of the document. If the facsimile method does not work, forms and other
documents from co-Sponsors may be scanned to create an electronic file
and submitted as an attachment to the application. These documents
should be labeled and numbered so the HUD reviewer can identify the
file and its contents. If the applicant is creating an electronic file,
the file should contain a header that identifies the name of the
Sponsor submitting the electronic application, that Sponsor's DUNS
number, and the unique ID that is found at the top of the Facsimile
Transmission form found in the electronic application package. The
naming convention for each electronic file should correspond to the
labeling convention used in the application Table of Contents found in
Section IV.B.1. of this program NOFA. For example, the organizational
documents of a co-Sponsor would be included under Part II, Exhibit 2(a)
of the Section 202 application.
The signed documents and other information required to be submitted
with the electronic application should be transmitted via fax using
Form HUD-96011, Facsimile Transmittal found in the electronic
application package. Co-Sponsors should use the form HUD-96011 provided
by the Sponsor that is submitting the electronic application. The
submitting Sponsor should fill in the SF-424 form prior to giving the
Form HUD-96011 to the co-Sponsors. By following these directions, the
Form HUD-96011 will be pre-populated with the submitting Sponsor's
organizational information exactly as the submitting Sponsor has
provided it on the electronic application. In addition, HUD will be
using the unique identifier associated to the downloaded application
package as a means of matching the faxes submitted with the
applications received via Grants.gov. The Facsimile Transmittal form
also has space to provide the number of pages being faxed and
information on the type of document. Co-Sponsors or the submitting
applicant can insert the document name in the space labeled Program
Component.

Note: Do not insert any additional or other cover pages as it
will cause problems in electronically matching the pieces of the
application.

V. Application Review Information

A. Criteria

Policy Priorities. HUD encourages applicants to undertake specific
activities that will assist the Department in implementing its policy
priorities and which help the Department achieve its strategic goals
for FY 2006. Refer to the General Section for information regarding
HUD's Strategic Goals and Policy Priorities. For the Section 202
program, applicants who include work activities that specifically
address the policy priorities of encouraging accessible design features
by incorporating visitability standards and universal design, removing
barriers to affordable housing, promoting energy efficiency in design
and operations, and expanding training and employment opportunities for
low- and very low-income persons and business concerns (Section 3
requirements), will receive additional points. A Notice pertaining to
the removal of barriers to affordable housing was published in the
Federal Register and may be downloaded from the HUD Web site at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
Rating Factors. HUD will rate applications that successfully
complete technical processing using the Rating Factors set forth below
and in accordance with the application submission requirements in this
NOFA. The maximum number of points an application may receive under
this program is 102. This includes two (2) RC/EZ/EC-II bonus points, as
described in the General Section and Section V.A.6. below.
1. Rating Factor 1: Capacity of the Applicant and Relevant
Organizational Staff (23 Points)
This factor addresses the extent to which you have the
organizational resources to successfully implement the proposed
activities in a timely manner. Submit information responding to this
factor in accordance with Application Submission Requirements in
Exhibits 3(a), 3(b), 3(e), 5 and 6 of Section IV.B. of this NOFA. In
rating this factor, HUD will consider the extent to which your
application demonstrates your ability to develop and operate the
proposed housing on a long-term basis, considering the following:
a. (13 points). The scope, extent, and quality of your experience
in providing housing or related services to those proposed to be served
by the project and the scope of the proposed project (i.e., number of
units, services, relocation costs, development, and operation) in
relationship to your demonstrated development and management capacity
as well as your financial management capability.
b. (10 points). The scope, extent and quality of your experience in
providing housing or related services to minority persons or minority
families and your ties to the community at large and to the minority
and elderly communities in particular.
(1) (5 points). The scope, extent, and quality of your experience
in providing housing or related services to minority persons or
minority families.
(2) (5 points). The scope, extent, and quality of your ties to the
community at large and to the minority and elderly communities in
particular.
To earn the maximum number of points under sub-criteria (b)(1)
above, you must describe significant previous experience in providing
housing and/or supportive services to minorities generally and to
minority elderly in particular. For the purpose of this competition,
``significant previous experience'' means that the previous housing
assistance or related services to minorities (i.e., the percentage of
minorities being provided housing or related services in your current
developments) was equal to or greater than the percentage of minorities
in the housing market area where the previous housing or services
occurred. To earn the maximum number of points under sub-criteria
(b)(2) above, you should submit materials that demonstrate your efforts
to make housing available to the community at large and the minority
and elderly communities in particular and your relationships over time
with the minority and elderly communities. Examples of documents that
may be submitted to earn the maximum number of points under sub-
criteria (b)(2) include letters of support from community leaders
(including minority community leaders) that give information about the
applicant's relationship over time with the community (including the
minority community). You may also submit copies of your affirmative
marketing

[[Page 12025]]

plan and the advertising/outreach materials you utilize to attract
minority communities (including limited English proficient
communities), elderly communities and the community at large. Regarding
your advertising/outreach materials, you should identify when
advertising/outreach materials are circulated, whom they are circulated
to, where they are circulated and how they are circulated. Descriptions
of other advertising/outreach efforts to the minority (including
limited English proficient communities) and elderly communities and the
dates and places of such advertising/outreach efforts should also be
included.
c. (-3 to -5 points). HUD will deduct (except if the delay was
beyond your control) 3 points if a fund reservation you received under
either the Section 202 Program of Supportive Housing for the Elderly or
the Section 811 Program of Supportive Housing for Persons with
Disabilities in FY 2001 or later has been extended beyond 24 months, 4
points if beyond 36 months, or 5 points if beyond 48 months. Examples
of such delays beyond your control include, but are not limited to,
initial closing delays that are: (1) directly attributable to HUD, (2)
directly attributable to third party opposition, including litigation,
and (3) due to a disaster, as declared by the President of the United
States.
d. (-3 to -5 points). HUD will deduct from 3 points to 5 points if
amendment money was required in connection with a fund reservation you
received under either the Section 202 Program of Supportive Housing for
the Elderly or the Section 811 Program of Supportive Housing for
Persons with Disabilities in FY 2001 or later based on the following.
(1) (-3 points). The amount of the amendment money required was 25%
or less of the original capital advance amount approved by HUD.
(2) (-4 points). The amount of the amendment money required was
between 26% and 50% of the original capital advance amount approved by
HUD.
(3) (-5 points). The amount of the amendment money required was
over 50% of the original capital advance amount approved by HUD.
2. Rating Factor 2: Need/Extent of the Problem (13 Points)
This factor addresses the extent to which there is a need for
funding the proposed activities to address a documented problem in the
target area. Submit information responding to this factor in accordance
with Application Submission Requirements in Exhibits 4(a) and 4(b) of
Section IV.B. of this NOFA. HUD will take into consideration the
following in evaluating this factor:
The extent of the need for the project in the area based on a
determination by the local HUD Office. In making this determination,
HUD will consider your evidence of need in the area, as well as other
economic, demographic, and housing market data available to the local
HUD office. The data should include a general assessment of the current
conditions in the market for the type of housing proposed, an estimate
of the demand for additional housing of the type proposed in the
applicable housing market area; as well as, information on the numbers
and types of existing comparable federally assisted housing units for
the elderly (HUD and RHS), current occupancy in such housing and recent
market experience, comparable assisted housing for the elderly under
construction or for which fund reservations have been issued, and, in
accordance with an agreement between HUD and RHS, comments from RHS on
the demand for additional comparable subsidized housing and the
possible harm to existing projects in the same housing market areas.
The Department will also review more favorably those applications that
establish a connection between the proposed project and the community's
Analysis of Impediments to Fair Housing Choice (AI) or other planning
document that analyzes fair housing issues and is prepared by a local
planning or similar organization. You must show how your proposed
project will address an impediment to fair housing choice described in
the AI or meet a need identified in the other type of planning document.
For all Section 202 projects that are determined to have sufficient
demand, HUD will rate your application based on the ratio of the number
of units in the proposed project to the estimate of unmet need for
housing assistance by the income eligible elderly households with
selected housing conditions. Unmet need is defined as the number of
very low-income elderly one-person renter households age 75 and older
with housing conditions problems, as of the 2000 Census minus the
number of project-based subsidized rental housing units (HUD, RHS, or
LIHTC) that are affordable to very low-income elderly provided in the
area since 1999. Units to be occupied by resident managers are not
counted. After HUD determines the estimate of unmet need and whether a
connection has been made between the project and community's
Consolidated Plan, Analysis of Impediments to Fair Housing Choice, or
other planning document, HUD will rate your application as follows:
a. (10 points). The area of the project has an unmet needs ratio of
15 percent or less; or
(5 points). The area of the project has an unmet needs ratio of
greater than 15 percent; or
(0 points). The area of the proposed project has no unmet needs for
housing assistance.
b. (3 points). The extent that a connection has been established
between the project and the community's Consolidated Plan, Analysis of
Impediments to Fair Housing Choice (AI) or other planning document that
analyzes fair housing issues and is prepared by a local planning or
similar organization.
3. Rating Factor 3: Soundness of Approach (47 Points)
This factor addresses the quality and effectiveness of your
proposal and the extent to which you involved elderly persons,
including elderly minority persons, in the development of the
application and will involve them in the development and operation of
the project, whether the jurisdiction in which your project will be
located has undertaken successful efforts to remove regulatory barriers
to affordable housing, whether you will promote energy efficiency in
the design and operation of the proposed housing, and your plans to
expand economic opportunities for low- and very low-income persons as
well as business concerns (Section 3 requirements). There must be a
clear relationship between your proposed design, proposed activities,
the community's needs and purposes of the program funding for your
application to receive points for this factor. Submit information
responding to this factor in accordance with Application Submission
Requirements in Exhibits 3(f), 3(j), 3(k), 4(c)(i), 4(c)(ii),
4(d)(iii), 4(d)(v), 4(d)(vi), 5, and 8(j) of Section IV.B. of this
NOFA. In evaluating this factor, HUD will consider the following:
a. (20 points). The proximity or accessibility of the site to
shopping, medical facilities, transportation, places of worship,
recreational facilities, places of employment, and other necessary
services to the intended occupants; adequacy of utilities and streets;
freedom of the site from adverse environmental conditions; compliance
with site and neighborhood standards (24 CFR 891.125(a), (d) and (e)).
b. (-1 point). The site(s) is not permissively zoned for the
intended use.

[[Page 12026]]

c. (10 points). The suitability of the site from the standpoints of
promoting a greater choice of housing opportunities for minority
elderly persons/families, and affirmatively furthering fair housing. In
reviewing this criterion, HUD will assess whether the site meets the
site and neighborhood standards at 24 CFR 891.125(b) and (c) by
examining relevant data in your application or in the local HUD Office.
Where appropriate, HUD may visit the site.
(1) The site will be deemed acceptable if it increases housing
choice and opportunity by expanding housing opportunities in non-
minority neighborhoods (if located in such a neighborhood). The term
``nonminority area'' is defined as one in which the minority population
is lower than 10 percent. If the site will be in a minority
neighborhood, the site will be deemed acceptable if it contributes to
the revitalization of and reinvestment in the minority neighborhood,
including improvement of the level, quality and affordability of
services furnished to minority elderly. You should refer to the Site
and Neighborhood Standards provisions of the regulations governing the
Section 202 Supportive Housing for the Elderly program (24 CFR
891.125(b) and (c)) when considering sites for your project.
(2) For the purpose of this competition, the term ``minority
neighborhood (area of minority concentration)'' is defined as one where
any one of the following statistical conditions exists:
(a) The percentage of persons of a particular racial or ethnic
minority is at least 20 points higher than the minority's or
combination of minorities' percentage in the housing market area as a
whole;
(b) The neighborhood's total percentage of minority persons is at
least 20 points higher than the total percentage of minorities for the
housing market as a whole; or,
(c) In the case of a metropolitan area, the neighborhood's total
percentage of minority persons exceeds 50 percent of its population.
d. (2 points). The extent to which your proposed design will meet
the special physical needs of elderly persons.
e. (2 points). The extent to which the proposed size and unit mix
of the housing will enable you to manage and operate the housing
efficiently and ensure that the provision of supportive services will
be accomplished in an economical fashion.
f. (2 points). The extent to which the proposed design of the
housing will accommodate the provision of supportive services that are
expected to be needed, initially and over the useful life of the
housing, by the category or categories of elderly persons the housing
is intended to serve.
g. (3 points). The extent to which the proposed supportive services
meet the identified needs of the anticipated residents and that the
identified supportive services will be provided on a consistent, long-
term basis.
h. (1 point). The extent to which the proposed design incorporates
visitability standards and/or universal design in the construction or
rehabilitation of the project. Refer to the General Section for further
information.
i. (2 points). Your involvement of elderly persons, particularly
minority elderly persons, in the development of the application and
your intent to involve elderly persons, particularly minority elderly
persons, in the development and operation of the project.
j. (2 points). The extent to which the jurisdiction in which your
project will be located has undertaken successful efforts to remove
regulatory barriers to affordable housing. (Note: To receive up to 2
points, the applicant must have submitted the optional Form HUD-27300,
Questionnaire for HUD's Initiative on Removal of Regulatory Barriers,
AND provided URL references or submitted the required documentary
evidence.) Refer to the General Section for further information.
k. (1 point). The extent to which you will promote energy
efficiency in the design and operation of the proposed housing. Refer
to Section III.C.3.j. of this NOFA.
l. (2 points). The extent to which you have described your plans
for expanding economic opportunities for low- and very-low income
persons (provisions of Section 3). Note: To receive up to 2 points, the
applicant must have adequately addressed the following in Exhibit 3(k)
of the application. Refer to the General Section for further information.
(1) (1 point). Provide opportunities to train and employ low- and
very low-income residents of the project area.
(2) (1 point). Award substantial contracts to persons residing in
the project area.
4. Rating Factor 4: Leveraging Resources (5 Points)
This factor addresses your ability to secure other funding sources
and community resources that can be combined with HUD's program
resources to achieve program purposes. Submit information responding to
this factor in accordance with Application Submission Requirements in
Exhibits 3(a), 3(b), 3(c), 3(d), 3(e), and 5(b) of Section IV.B. of
this NOFA.
a. (0 point). The application contains general support and/or
written evidence of firm commitments towards the development and
operation of the proposed project (including, financial assistance,
donation of land, provision of services, etc.) from other funding
sources (e.g., private local community and government sources) where
the dollar value totals 5% or less of the capital advance amount as
determined by HUD.
b. (1 point). The application contains written evidence of firm
commitments towards the development and operation of the proposed
project (including, financial assistance, donation of land, provision
of services, etc.) from other funding sources (e.g., private local
community and government sources) where the dollar value total between
6% and 10% of the capital advance amount as determined by HUD.
c. (2 points). The application contains written evidence of firm
commitments towards the development and operation of the proposed
project (including, financial assistance, donation of land, provision
of services, etc.) from other funding sources (e.g., private local
community and government sources) where the dollar value totals 11% and
15% of the capital advance amount as determined by HUD.
d. (3 points). The application contains written evidence of firm
commitments towards the development and operation of the proposed
project (including, financial assistance, donation of land, provision
of services, etc.) from other funding sources (e.g., private local
community and government sources) where the dollar value totals between
16% and 20% of the capital advance amount as determined by HUD.
e. (4 points). The application contains written evidence of firm
commitments towards the development and operation of the proposed
project (including, financial assistance, donation of land, provision
of services, etc.) from other funding sources (e.g., private local
community and government sources) where the dollar value totals between
21% and 25% of the capital advance amount as determined by HUD.
f. (5 points). The application contains written evidence of firm
commitments towards the development and operation of the proposed
project (including, financial assistance, donation of land, provision
of services, etc.) from other funding sources (e.g., private local
community and government sources) where the dollar value totals over 25%

[[Page 12027]]

of the capital advance amount as determined by HUD.
5. Rating Factor 5: Achieving Results and Program Evaluation (12
Points)
This factor reflects HUD's goal to embrace high standards of
ethics, management and accountability and, as such, emphasizes HUD's
commitment to ensuring that you keep the promises made in your
application. This factor requires that you clearly identify the
benefits or outcomes of your project and develop an evaluation plan to
measure performance, which includes what you are going to measure, how
you are going to measure it, and the steps you will have in place to
make adjustments to your project development timeline should you not be
able to achieve any of the major milestones. Completion of Exhibit
8(i), Project Outcome Logic Model, will assist you in completing your
response to this rating factor. This rating factor also addresses the
extent to which your project will implement practical solutions that
result in residents achieving independent living, educational
opportunities, and improved living environments. Finally, this factor
addresses the extent to which the long-term viability of your project
will be sustained for the duration of the 40-year capital advance
period. Submit information responding to this factor in accordance with
Application Submission Requirements in Exhibits 3(e), 3(g), 3(h), 3(i),
6(b) and 8(i) of Section IV.B.
a. (5 points). The extent to which your project development
timeline is indicative of your full understanding of the development
process and will, therefore, result in the timely development of your
project.
b. (2 points). The extent to which your past performance evidences
that the proposed project will result in the timely development of the
project. Evidence of your past performance could include the
development of previous construction projects, including but not
limited to Section 202 and Section 811 projects.
c. (2 points). The extent to which your project will implement
practical solutions that will result in assisting residents in
achieving independent living, educational opportunities, outreach
regarding telemarketing fraud, and improved living environments.
d. (3 points). The extent to which you demonstrated that your
project will remain viable as housing with the availability of
supportive services for very low-income elderly persons for the 40-year
capital advance period.
6. Bonus Points (2 Bonus Points)
Location of proposed site in an RC/EZ/EC-II area, as described in
the General Section. Submit the information responding to the bonus
points in accordance with the Application Submission Requirements in
Exhibit 8(h) of Section IV.B. of this NOFA.

B. Reviews and Selection Process

1. Review for Curable Deficiencies. Upon receipt of the application
by HUD staff, HUD will screen all applications to determine if there
are any curable deficiencies. For applicants receiving a waiver to
submit a paper application, submitting fewer than the required original
and four copies of the application is not a curable deficiency and will
cause your application to be considered non-responsive to the NOFA and
returned to you. A curable deficiency is a missing Exhibit or portion
of an Exhibit that will not affect the rating of the application. Refer
to the General Section for additional information regarding procedures
for corrections to deficient applications. The following is a list of
the only deficiencies that will be considered curable in a Section 202
application:

------------------------------------------------------------------------
Exhibit Description
------------------------------------------------------------------------
1...................................... Form 92015-CA (Application
Form).*
2(a)................................... Articles of Incorporation.*
(b).................................... By-laws.*
(c).................................... IRS tax exemption ruling.*
4(c)(iii).............................. Description of mixed-financing
plans for additional units, if
applicable.
4(d)(i)................................ Evidence of site control.
(d)(ii)................................ Evidence site is free of
limitations, restrictions or
reverters.
(d)(iv)................................ Evidence of compliance with URA
site notification requirement.
(d)(vii)............................... Phase I ESA.
(d)(viii).............................. Asbestos Statement or Survey.
(d)(ix)................................ Letter to the State/Tribal
Historic Preservation Officer.
(SHPO/THPO) and a statement
that the SHPO/THPO failed to
respond; or the Letter from
the SHPO/THPO.
7...................................... Relocation.
8(a)................................... Standard Form 424, Application
for Federal Assistance, Letter
sent to the State Point of
Contact (SPOC).*
(b).................................... Standard Form 424 Supplement,
Survey on Ensuring Equal
Opportunity for Applicants.
(c).................................... Standard Form LLL, Disclosure
of Lobbying Activities, if
applicable.
(d).................................... Form HUD-2880, Applicant/
Recipient Disclosure/Update
Report.
(e).................................... Form HUD-2991, Certification of
Consistency with Consolidated
Plan.
(f).................................... Form-HUD-92041, Sponsor's
Conflict of Interest
Resolution.
(g).................................... Form HUD-92042, Sponsor's
Resolution for Commitment to
Project.*
------------------------------------------------------------------------

[[Page 12028]]

place them in rank order per metropolitan or nonmetropolitan
allocation. These applications, after adding any bonus points for RC/
EC/EZ-II, will be selected based on rank order, up to and including the
last application that can be funded out of each HUD Multifamily Program
Center's metropolitan or nonmetropolitan allocation. HUD Multifamily
Program Centers will not skip over any applications in order to select
one based on the funds remaining. After making the initial selections
in each allocation area, however, HUD Multifamily Program Centers may
use remaining available funds to select the next rank-ordered
application by reducing the number of units by no more than 10 percent,
rounded to the nearest whole number, provided the reduction will not
render the project infeasible. For this purpose, however, HUD will not
reduce the number of units in projects of five units or less.
Once this process has been completed, HUD Multifamily Program
Centers may combine their unused metropolitan and nonmetropolitan funds
in order to select the next highest ranked application in either
category, using the unit reduction policy described above, if necessary.
After the HUD Multifamily Program Centers have funded all possible
projects based on the process above, combined metropolitan and
nonmetropolitan residual funds from all HUD Multifamily Program Centers
within each Multifamily Hub will be combined. First, these funds will
be used to restore units to projects reduced by HUD Multifamily Program
Centers based on the above instructions. Second, additional
applications within each Multifamily Hub will be selected in Hub-wide
rank order with only one application selected per HUD Multifamily
Program Center. More than one application may be selected per HUD
Multifamily Program Center if there are no approvable applications in
other HUD Multifamily Program Centers within the Multifamily Hub. This
process will continue until there are no more approvable applications
within the Multifamily Hub that can be selected with the remaining
funds. Applications may not be skipped over to select one based on
funds remaining. However, the Multifamily Hub may use any remaining
residual funds to select the next highest rated application by reducing
the number of units by no more than 10 percent rounded to the nearest
whole number, provided the reduction will not render the project
infeasible or result in the project being less than five units.
Funds remaining after the Multifamily Hub selection process is
completed will be returned to Headquarters. HUD Headquarters will use
these residual funds first to restore units to projects reduced by HUD
Multifamily Program Centers or Multifamily Hubs as a result of the
instructions for using their residual funds. Second, HUD Headquarters
will use these funds for selecting applications based on HUD
Multifamily Program Centers' rankings, beginning with the highest rated
application nationwide. However, after restoring units to projects
where necessary, priority will be given to those applications for
projects in non-metropolitan areas, if necessary to meet the statutory
requirement of Section 202 of the Housing Act of 1959 pertaining to
Section 202 funding in nonmetropolitan areas. Only one application will
be selected per HUD Multifamily Program Center from the national
residual amount. If there are no approvable applications in other HUD
Multifamily Program Centers, the process will begin again with the
selection of the next highest rated application nationwide. This
process will continue until all approvable applications are selected
using the available remaining funds. HUD Headquarters may skip over a
higher-rated application in order to use as much of the available
remaining funds as possible.
5. HUD Error. In the event HUD commits an error that, when
corrected, would have resulted in the selection of an otherwise
eligible applicant during the funding round of this NOFA, HUD may
select that applicant when sufficient funds become available.

VI. Award Administration Information

A. Award Notices

1. Agreement Letter. If you are selected to receive a Section 202
fund reservation, you will receive an Agreement Letter that stipulates
the terms and conditions for the Section 202 fund reservation award as
well as the submission requirements following the fund reservation
award. The duration of the fund reservation award for the capital
advance is 18 months from the date of issuance of the fund reservation.
Immediately upon your acceptance of the Agreement Letter, you are
expected to begin work towards the submission of a Firm Commitment
Application, which is the next application submission stage. You are
required to submit a Firm Commitment Application to the local HUD
office within 180 days from the date of the Agreement Letter. Initial
closing of the capital advance and start of construction of the project
are expected to be accomplished within the duration of the fund
reservation award. Final closing of the capital advance is expected to
occur no later than six months after completion of project construction.
2. Non-Selection Letter. If your application is approvable but
unfunded due to insufficient funds or receives a rating that is below
the minimum threshold score established for funding eligibility, you
will receive a letter to this effect.
3. Debriefing. Refer to the General Section for further information
regarding debriefings, except that the request for a debriefing must be
made to the Director of Multifamily Housing in the appropriate local
HUD office.

B. Administrative and National Policy Requirements

1. Ensuring the Participation of Small Businesses, Small
Disadvantaged Businesses, and Women-Owned Businesses. Although the
Section 202 program is not subject to the provisions of 24 CFR 85.36(e)
as described in the corresponding paragraph in the General Section, you
are required to comply with Executive Order 12432, Minority Business
Enterprise Development and Executive Order 11625, Prescribing
Additional Arrangements for Developing and Coordinating a National
Program for Minority Business Enterprise as they relate to the
encouragement of HUD grantees to utilize minority business enterprises.
2. Acquisition and Relocation. You must comply with the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970, as amended (49 CFR part 24, and 24 CFR 891.155(e)) (URA), which
covers the acquisition of sites, with or without existing structures,
and with 24 CFR 8.4(b)(5) of the Section 504 regulations which
prohibits discrimination based on disability in determining the site or
location of a federally-assisted facility. However, you are exempt from
complying with the site acquisition requirements of the URA if you do
not have the power of eminent domain and prior to entering into a
contract of sale, option to purchase or any other method of obtaining
site control, you inform the seller of the land in writing (1) that you
do not have the power of eminent domain and, therefore, you will not
acquire the property if negotiations fail to result in an amicable
agreement, and (2) of the estimate of the fair market value of the
property. An appraisal is not required to meet this requirement,
however, your files must include an explanation (with reasonable
evidence) of the basis for the estimate. Evidence of

[[Page 12029]]

compliance with this advance notice requirement must be included in
Exhibit 4(d)(iv) of your application.
3. Flood Disaster Protection Act of 1973 and Coastal Barrier
Resources Act. You must comply with the requirements under the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4001-4128) and the Coastal
Barrier Resources Act (16 U.S.C. 3601).

C. Reporting

1. The Program Outcome Logic Model (Form HUD-96010) must be
completed indicating the results achieved against the proposed output
goal(s) and proposed outcome(s) which you stated in your approved
application and agreed upon by HUD. Based on the information you
provided in the Program Outcome Logic Model, you also are required to
submit to HUD a statement reporting the Return on Investment as a
result of HUD's Section 202 funding award to you to develop and operate
a Section 202 housing project with supportive services for the very
low-income elderly. The Return on Investment requirement is a
comparison of the cost of the acquisition, construction, or
rehabilitation of housing with supportive services for elderly persons,
including the frail elderly, 62 years of age and over, with the value
of maintaining an elderly person, including a frail elderly person, in
their own home and avoiding placement into a long-term care facility.
These reporting requirements are to be submitted to HUD as follows:
a. Program Outcome Logic Model. You, as the Sponsor, and the Owner,
when formed, are required to report annually, beginning from the date
of the Agreement Letter, on the results achieved against the output
goal(s) and outcome(s), which you proposed in the Program Outcome Logic
Model that was submitted in your application. 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.
2. The Regulatory Agreement (Form HUD-92466-CA) requires the Owner
of the Section 202 project to submit an annual financial statement for
the project. This financial statement must be audited by an Independent
Public Accountant who is a Certified Public Accountant or other person
accepted by HUD and filed electronically with HUD's Real Estate
Assessment Center (REAC) through the Financial Assessment Subsystem for
Multifamily Housing (MF-FASS). The submission of annual financial
statements is required throughout the 40-year term of the mortgage.

VII. Agency Contact(s)

For Technical Assistance. For technical assistance in downloading
an application package from http://www.grants.gov, contact the
Grants.gov help desk at 800-518-Grants or by sending an e-mail to support@grants.gov.

For programmatic information, you may contact the appropriate local HUD
office, or Evelyn Berry at HUD Headquarters at (202) 708-3000 (this is
not a toll-free number), or access the Internet at http://www.hud.gov/offices/
adm/grants/fundsavail.cfm. Persons with hearing and speech
impairments may access the above number via TTY by calling the Federal
Relay Service at 1-800-877-8339 (this is a toll-free number).

VIII. Other Information

A. Field Office Workshop. HUD encourages minority organizations and
grassroots organizations (e.g., civic organizations, faith-communities
and grassroots faith-based and other community-based organizations) to
participate in this program and strongly recommends that prospective
applicants attend the local HUD office workshop. At the workshops, HUD
will explain application procedures and requirements, as well as
address concerns such as local market conditions, building codes and
accessibility requirements, contamination identification and
remediation, historic preservation, floodplain management, other
environmental requirements, displacement and relocation, zoning, and
housing costs. If you are interested in attending the workshop, make
sure that your name, address and telephone number are on the
appropriate local HUD office's mailing list so that you will be
informed of the date, time and place of the workshop. Persons with
disabilities should call the appropriate local HUD Office to assure
that any necessary arrangements can be made to enable their attendance
and participation in the workshop.
If you cannot attend the workshop, call the appropriate local HUD
office if you have any questions concerning the submission of
applications to that particular office and to request any materials
distributed at the workshop.
B. Satellite Broadcast. HUD will hold an information broadcast via
satellite for potential applicants to learn more about the program and
preparation of the application. It is strongly recommended that
potential applicants, especially those who may be applying for Section
202 funding for the first time, tune in to this broadcast, if at all
possible. Copies of the broadcast tapes are also available from the
NOFA Information Center. For more information about the date and time
of the broadcast, you should consult the HUD Web site at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
C. Related Programs. Funding for a related program, Section 202
Demonstration Planning Grant Program, is available to provide
predevelopment grants to private nonprofit organizations and consumer
cooperatives in connection with the development of housing under the
Section 202 program. The announcement of the availability of funding
under this program will be addressed in a separate NOFA. Also, funding
was made available for the Department to carry out a Section 202
Demonstration Program for Elderly Housing for Intergenerational
Families. The announcement of the availability of funds for this
demonstration program will be addressed in a future Federal Register.
D. 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 2502-0267. 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 37.42 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. 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 derived.

BILLING CODE 4210-01-P

[[Page 12030]]
[GRAPHIC]
[TIFF OMITTED]
TN08MR06.030
[[Page 12031]]

Section 811 Program of Supportive Housing for Persons With Disabilities
(Section 811 Program)

Overview Information

A. Federal Agency Name: Department of Housing and Urban
Development, Office of Housing.
B. Funding Opportunity Title: Section 811 Supportive Housing for
Persons with Disabilities.
C. Announcement Type: Initial announcement.
D. Funding Opportunity Number: OMB Approval Number: 2502-0462. The
Federal Register number is: FR-5030-N-21.
E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.181,
Section 811 Supportive Housing for Persons with Disabilities.
F. Dates: Application deadline date: May 26, 2006. Refer to Section
IV. below and the General Section for information on application
submission requirements.
G. Optional, Additional Overview Content Information: 1. Purpose of
the Program. This program provides funding for the development and
operation of supportive housing for very low-income persons with
disabilities who are at least 18 years old. If you receive funding
through this program, you must assure that supportive services are
identified and available.
2. Available Funds. Approximately 90.3 million in capital advance
funds, plus associated project rental assistance contract (PRAC) funds
and any carryover funds available.
3. Types of Funds. Capital advance funds will cover the cost of
developing the housing. PRAC funds will cover the difference between
the HUD-approved operating costs of the project and the tenants'
contributions toward rent (30 percent of their adjusted monthly income).
4. Eligible Applicants. Nonprofit organizations that have a section
501(c)(3) tax exemption from the Internal Revenue Service. (See Section
VI.B.6. below of this NOFA for further details and information
regarding the formation of the Owner corporation.)
5. Eligible Activities. New construction, rehabilitation, or
acquisition (with or without rehabilitation) of housing. (See Section
III.C.1. below of this NOFA for further information.)
6. Match Requirements. None required.
7. Local HUD Offices. The local HUD office structure, for the
purpose of implementing the Section 811 program, consists of 18
Multifamily Hub Offices. Within the Multifamily Hubs, there are
Multifamily Program Centers with the exception of the New York Hub, the
Buffalo Hub, the Denver Hub and the Los Angeles Hub. All future
references shall use the term ``local HUD office'' unless a more
detailed description is necessary as in Limitations on Applications and
Ranking and Selection Procedures, below.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description. HUD provides capital advances and contracts
for project rental assistance in accordance with 24 CFR part 891.
Capital advances may be used for the construction or rehabilitation of
a structure or acquisition of a structure with or without
rehabilitation (including structures from the Federal Deposit Insurance
Corporation (FDIC)), to be developed into a variety of housing options
described in Section III.C. Capital advance funds bear no interest and
are based on development cost limits in Section IV.E.3. Repayment of
the capital advance is not required as long as the housing remains
available for occupancy by very low-income persons with disabilities
for at least 40 years. PRAC funds are used to cover the difference
between the tenants' contributions toward rent (30 percent of adjusted
income) and the HUD-approved cost to operate the project.
B. Authority. 42 U.S.C. 8013 (Section 811 of the Cranston-Gonzalez
National Affordable Housing Act (Pub. L. 101-625, approved November 28,
1990)(NAHA), as amended by the Housing and Community Development Act of
1992) (Pub. L. 102-550, approved October 28, 1992)(HCD Act of 1992);
the Rescissions Act (Pub. L. 104-19, approved July 27, 1995); the
American Homeownership and Economic Opportunity Act of 2000 (Pub. L.
106-569, approved December 27, 2000) and the Department of Housing and
Urban Development Appropriations Act, 2006, (Pub. L.109-115, approved
November 30, 2005) and the Government-wide Rescissions pursuant to the
Department of Defense Appropriations Act, 2006 (Pub. L. 109-148,
approved December 30, 2005) authorized a new supportive housing program
for persons with disabilities, and replaced assistance for persons with
disabilities previously covered by section 202 of the Housing Act of
1959 (section 202 continues, as amended by section 801 of the NAHA, and
the HCD Act of 1992, to authorize supportive housing for the elderly).
C. Eligible Occupancy. You may propose a Section 811 project to
serve persons with physical disabilities, developmental disabilities,
chronic mental illness, or any combination of the three as defined in
24 CFR 891.305. In addition, you may request HUD approval to restrict
occupancy to a subcategory of one of these three defined categories
(e.g., HIV/AIDS is a subcategory of physical disability). If restricted
occupancy is approved, however, you cannot deny occupancy to any
otherwise qualified person that meets the definition of the overall
category of disability under which the subcategory falls.
D. Calculation of Fund Reservation. If selected, you will receive a
fund reservation that will consist of both a reservation of capital
advance funds and a reservation of three years for project rental
assistance.
1. Capital advance funds. The reservation of capital advance funds
is based on a formula which, for an independent living project
(including condominiums), takes the development cost limit for the
appropriate building type (elevator, non-elevator) and unit size(s) and
multiplies it by the number of units of each size (including a unit for
a resident manager, if applicable) and then multiplies the result by
the high cost factor for the area. For a group home, the formula is
based on the number of persons with disabilities in the appropriate
disability category (excluding any unit for a resident manager since
such a unit is already incorporated in the development cost limit)
multiplied by the high cost factor for the area. The development cost
limits can be found in Section IV.E.3. of this NOFA.
2. PRAC funds. The initial PRAC award covers three years. The
amount awarded is determined by multiplying the number of units for
residents with disabilities in an independent living project or the
number of residents with disabilities in a group home by the
appropriate operating cost standard times 3. The operating cost
standards will be published by Notice.

II. Award Information

A. Available Funds. For FY 2006, $90,302,844 million is available
for capital advances for the Section 811 Program of Supportive Housing
for Persons with Disabilities. The Department of Housing and Urban
Development Appropriations Act, 2006 (Pub. L. 109-115, approved
November 30, 2005) provides $239,000,000 for capital advances,
including amendments to capital advance contracts, for supportive
housing for persons with disabilities as authorized by section 811 of
the National Affordable Housing Act of 1990

[[Page 12032]]

(NAHA); for project rental assistance for supportive housing for
persons with disabilities under section 811 of the NAHA, including
amendments to contracts for such assistance and renewal of expiring
contracts for such assistance for up to a one-year term and for tenant-
based rental assistance contracts and renewal of expiring contracts for
such assistance entered into pursuant to section 811 of the NAHA, and
$400,000 to be transferred to the Working Capital Fund, all of which is
subject to a 1 percent across-the-board rescission pursuant to Public
Law 109-148. $5,000,000 will be provided for tenant-based rental
assistance for persons with disabilities administered through public
housing agencies (PHAs) and nonprofit organizations under the
Mainstream Housing Opportunities for Persons with Disabilities Program
and $78,300,000 will be provided for one-year renewal costs of Section
811 rental assistance.
In accordance with the waiver authority provided in the Department
of Housing and Urban Development Appropriations Act, 2006, the
Secretary is waiving the following statutory and regulatory provision:
The term of the project rental assistance contract is reduced from 20
years to 3 years. HUD anticipates that at the end of the contract
terms, renewals will be approved subject to the availability of funds.
In addition to this provision, HUD will reserve project rental
assistance contract funds based on 75 percent rather than on 100
percent of the current operating cost standards for approved units in
order to take into account the average tenant contribution toward rent.
The allocation formula used for Section 811 reflects the ``relevant
characteristics of prospective program participants,'' as specified in
24 CFR 791.402(a). The FY2006 formula consists of the following data
element from the 2000 Census: the number of non-institutionalized
persons age 16 to 64 with a disability. The data on disability status
were derived from answers to a two-part question that asked about the
existence of the following long-lasting conditions: (a) Blindness,
deafness, or a severe vision or hearing impairment (sensory
disability), and (b) a condition that substantially limits one or more
basic physical activities, such as walking, climbing stairs, reaching,
lifting, or carrying (physical disability); and a four-part question
that asked if the individual had a physical, mental, or emotional
condition lasting 6 months or more that made it difficult to perform
certain activities. The four activity categories were: (a) Learning,
remembering, or concentrating (mental disability); (b) dressing,
bathing, or getting around inside the home (self-care disability); (c)
going outside the home alone to shop or visit a doctor's office (going
outside the home disability); and (d) working at a job or business
(employment disability).
Under the Section 811 Program, each local HUD office jurisdiction
receives sufficient capital advance funds for a minimum of 10 units.
The total amount of capital advance funds to support this minimum set-
aside is then subtracted from the total capital advance available. The
remainder is fair shared to each local HUD office jurisdiction whose
fair share would exceed the set-aside based on the allocation formula
fair share factors describe below.
The fair share factors were developed by taking the count of
disabilities in the data element for each state, or state portion, of
each local HUD office jurisdiction as a percent of the data element
from the 2000 Census, described above, for the total United States. The
resulting percentage for each local HUD office is then adjusted to
reflect the relative cost of providing housing among the local HUD
office jurisdictions. The adjusted needs percentage for each local HUD
office is then multiplied by the total amount of capital advance funds
available nationwide.
The Section 811 capital advance funds have been allocated, based on
the formula above, to 51 local HUD offices as shown on the following chart:

FY 2006 Section 811 Allocations for Supportive Housing for Persons With
Disabilities
------------------------------------------------------------------------
Capital
Offices Units advance
------------------------------------------------------------------------
Boston Hub
------------------------------------------------------------------------
Boston......................................... 20 $2,303,897
Hartford....................................... 10 1,177,474
Manchester..................................... 10 937,874
Providence..................................... 10 1,168,554
------------------------
Total...................................... 50 5,587,799
------------------------------------------------------------------------
New York Hub
------------------------------------------------------------------------
New York....................................... 34 4,079,464
------------------------------------------------------------------------
Buffalo Hub
------------------------------------------------------------------------
Buffalo........................................ 19 1,961,030
------------------------------------------------------------------------
Philadelphia Hub
------------------------------------------------------------------------
Charleston..................................... 10 883,106
Newark......................................... 22 2,622,563
Philadelphia................................... 23 2,599,492
Pittsburgh..................................... 15 1,473,111
------------------------
Total...................................... 70 7,578,272
------------------------------------------------------------------------
Baltimore Hub
------------------------------------------------------------------------
Baltimore...................................... 15 1,455,965
Richmond....................................... 18 1,576,619

[[Page 12033]]

Washington..................................... 15 1,616,012
------------------------
Total...................................... 48 4,648,596
------------------------------------------------------------------------
Greensboro Hub
------------------------------------------------------------------------
Columbia....................................... 18 1,610,633
Greensboro..................................... 24 2,631,484
------------------------
Total...................................... 42 4,242,117
------------------------------------------------------------------------
Atlanta Hub
------------------------------------------------------------------------
Atlanta........................................ 24 1,974,924
Knoxville...................................... 10 832,557
Louisville..................................... 18 1,558,073
Nashville...................................... 16 1,339,069
San Juan....................................... 19 1,839,670
------------------------
Total...................................... 87 7,544,293
------------------------------------------------------------------------
Jacksonville Hub
------------------------------------------------------------------------
Birmingham..................................... 18 1,480,947
Jackson........................................ 16 1,214,171
Jacksonville................................... 38 3,021,346
------------------------
Total...................................... 72 5,716,464
------------------------------------------------------------------------
Chicago Hub
------------------------------------------------------------------------
Chicago........................................ 28 3,191,666
Indianapolis................................... 19 1,720,040
------------------------
Total...................................... 47 4,911,706
------------------------------------------------------------------------
Columbus Hub
------------------------------------------------------------------------
Cincinnati..................................... 10 880,132
Cleveland...................................... 18 1,710,077
Columbus....................................... 10 861,301
------------------------
Total...................................... 38 3,451,510
------------------------------------------------------------------------
Detroit Hub
------------------------------------------------------------------------
Detroit........................................ 20 2,019,247
Grand Rapids................................... 15 1,329,464
------------------------
Total...................................... 35 3,348,711
------------------------------------------------------------------------
Minneapolis Hub
------------------------------------------------------------------------
Minneapolis.................................... 16 1,708,402
Milwaukee...................................... 17 1,719,424
------------------------
Total...................................... 33 3,427,826
------------------------------------------------------------------------
Ft. Worth Hub
------------------------------------------------------------------------
Ft. Worth...................................... 30 2,211,919
Houston........................................ 20 1,514,450
Little Rock.................................... 15 1,113,202
New Orleans.................................... 18 1,414,339
San Antonio.................................... 19 1,400,829

Total...................................... 102 7,654,739
------------------------------------------------------------------------
Kansas City Hub
------------------------------------------------------------------------
Des Moines..................................... 10 796,877
Kansas City.................................... 17 1,495,773
Oklahoma City.................................. 16 1,233,530

[[Page 12034]]

Omaha.......................................... 10 883,106
St. Louis...................................... 10 1,008,981
------------------------
Total...................................... 63 5,418,267
------------------------------------------------------------------------
Denver Hub
------------------------------------------------------------------------
Denver......................................... 23 2,005,360
------------------------------------------------------------------------
San Francisco Hub
------------------------------------------------------------------------
San Francisco.................................. 29 3,344,550
Honolulu....................................... 10 1,784,052
Phoenix........................................ 18 1,462,681
Sacramento..................................... 16 1,783,920
------------------------
Total...................................... 73 8,375,203
------------------------------------------------------------------------
Los Angeles Hub
------------------------------------------------------------------------
Los Angeles.................................... 45 4,986,788
------------------------------------------------------------------------
Seattle Hub
------------------------------------------------------------------------
Seattle........................................ 19 2,018,070
Anchorage...................................... 10 1,784,052
Portland....................................... 17 1,562,577
------------------------
Total...................................... 46 5,364,699
========================
National Total......................... 927 90,302,844
------------------------------------------------------------------------

B. Type of Award. Capital Advance and Project Rental Assistance
Contract Funds for new Section 811 applications.
C. Type of Assistance Instrument. The Agreement Letter stipulates
the terms and conditions for the Section 811 fund reservation award as
well as the submission requirements following the fund reservation
award. The duration of the fund reservation award for the capital
advance is 18 months from the date of issuance of the fund reservation.
D. Anticipated Start and Completion Date. Immediately upon your
acceptance of the Agreement Letter, you are expected to begin work
toward the submission of a Firm Commitment Application, which is the
next application submission stage. You are required to submit a Firm
Commitment Application to the local HUD office within 180 days from the
date of the Agreement Letter. Initial closing of the capital advance
and start of construction of the project are expected to be
accomplished within the duration of the fund reservation award as
indicated in the above paragraph regarding the Type of Assistance
Instrument. Final closing of this capital advance is expected to occur
no later than six months after completion of project construction.

III. Eligibility Information

A. Eligible Applicants: Nonprofit organizations with a section
501(c)(3) tax exemption from the Internal Revenue Service and who meet
the threshold requirements contained in the General Section NOFA and
Section III.C.2 below are the only eligible applicants for this program.
Applicant eligibility for purposes of applying for a Section 811
fund reservation under this NOFA has not changed; i.e., all Section 811
Sponsors and Co-Sponsors must be nonprofit organizations. However, the
Owner corporation, when later formed by the Sponsor, may be (1) a
single-purpose nonprofit organization that has tax-exempt status under
Section 501(c)(3) of the Internal Revenue Code (IRS) of 1986, or (2)
for purposes of developing a mixed-finance project pursuant to the
statutory provision under Title VIII of the American Homeownership and
Economic Opportunity Act of 2000, a for-profit limited partnership with
a nonprofit organization that has tax-exempt status under Section
501(c)(3) of the IRS code as the sole general partner.
See Section IV.E.2 below regarding limits on the total number of
units and projects for which you may apply for funding.
B. Cost Sharing or Matching: No cost sharing or match is required;
however, you are required to make a commitment to cover the estimated
start-up expenses, the minimum capital investment of one half of one
percent of the HUD-approved capital advance, not to exceed $10,000, and
any funds required in excess of the capital advance, including the
estimated cost of any amenities or features (and operating costs
related thereto) which are not covered by the capital advance. You must
make such a commitment by signing the form HUD-92042, Sponsor's
Resolution for Commitment to Project, in Exhibit 8(g) of the
application found in Section IV.B. below.
C. Other: 1. Eligible Activities. Section 811 capital advance funds
must be used to finance the development of housing through new
construction, rehabilitation, or acquisition with or without
rehabilitation. Capital advance funds may also be used in combination
with other non-Section 811 funding sources leveraged by a for-profit
limited partnership (of which a single-purpose nonprofit organization
with a 501(c)(3) tax exemption is the sole general partner) to develop
a mixed-finance project, including a mixed-finance project for
additional units over and above the Section 811 units. The

[[Page 12035]]

development of a mixed-use project in which the Section 811 units are
mortgaged separately from the other uses of the structure is not
considered a mixed-finance project. Project rental assistance funds are
provided to cover the difference between the HUD-approved operating
costs and the amount the residents pay (each resident pays 30 percent
of adjusted income). The types of housing that can be developed with
Section 811 capital advance funds include independent living projects,
dwelling units in multifamily housing developments, condominium and
cooperative housing and small group homes.

Note: For purposes of approving Section 811 capital advances,
HUD will consider proposals involving mixed-financing for additional
units over and above the Section 811 units if you have legal control
of an approvable site and the additional units do not cause the
project, as a whole, to exceed the project size limits if the
additional units will also house persons with disabilities (unless
your project will be an independent living project and you request
and receive HUD approval to exceed the project size limits (See
IV.B.2.c.(1)(d)(xii)). However, you must obtain funds to assist the
additional units with other than PRAC funds. HUD will not provide
PRAC funds for non-Section 811 units.

2. Threshold Criteria for Funding Consideration. In addition to the
threshold criteria outlined in the General Section of the SuperNOFA,
the following threshold requirements must be met:
a. Non-Responsive Application. Your application will be considered
non-responsive to the NOFA and will not be accepted for processing if you:
(1) Submit less than the required number of copies (an original and
four copies are required) if you requested and received approval for a
waiver of the electronic submission requirement. Refer to the General
Section for information on application submission and receipt procedures;
(2) Submit paper copies of the application if you have not received
approval from HUD for a waiver of the electronic submission requirements;
(3) Submit a substantially deficient application (i.e., a majority
of the required exhibits are not submitted with your application,
particularly, but not limited to, those exhibits which are not
curable). HUD reserves the right to determine whether your application
is substantially deficient for purposes of determining whether the
application is non-responsive to the NOFA. Refer to Section IV.B.,
Content and Form of Application Submission, for information on the
required exhibits for submission with your application to ensure that
your application is complete at time of submission;
(4) Request more units than were allocated to the local HUD office
that will be reviewing your application (See the allocation chart in
Section II.A. above);
(5) Request less than the minimum number of units for persons with
disabilities in an independent living project (5 units) or a group home
(2 units);
(6) Request more than the maximum number of units for a group home
(6 units); or
(7) Request assistance for housing that you currently own or lease
that has been occupied by people with disabilities for longer than one
year prior to the application deadline date;
(8) Request assistance for an ineligible activity as defined in
Section IV.E., Funding Restrictions, of this program NOFA;
(9) Are an ineligible applicant (see Section III.A., Eligible
Applicants of this program NOFA).
b. Other Criteria. (1) You, or a Co-Sponsor, must have experience
in providing housing or services to persons with disabilities.
(2) You and any Co-Sponsor must be eligible nonprofit organizations
with tax-exempt status under Section 501(c)(3) of the Internal Revenue
Service code.
(3) Your application must contain evidence of site control or the
identification of a site. Section 811(d)(3) of the National Affordable
Housing Act requires you to provide either evidence of site control or
a reasonable assurance that you will have control of a site within six
months of the date of the Agreement Letter notifying you that you have
been selected to receive a Section 811 fund reservation. Accordingly,
you must include in your application, the required information
specified below for evidence of site control, or the required
information specified below under site identification as a reasonable
assurance that site control will be obtained within six months of the
date of the Agreement Letter. If you submit the required information
for an identified site(s), you must include a specific street address
for each identified site or the application will be rejected.
(a) Evidence of Site Control--If you have control of a site at the
time you submit your application, you must provide the information in
Exhibit 4(d) in IV.B. of this NOFA relative to site control, or
(b) Site Identification--If you do not have site control of one or
more of your sites, you must provide the information required in
Exhibit 4(e) in IV.B. of this NOFA under ``Identification of a Site''
for any site not under control as a reasonable assurance that site
control will be obtained within six months of fund reservation
notification.
If your application contains evidence of site control where either
the evidence or the site is not approvable, your application will not
be rejected provided you indicate in your application that you are
willing to seek an alternate site and provide an assurance that site
control will be obtained within six months of fund reservation
notification. During the selection process, all applications with
acceptable evidence of site control for all proposed sites and all
proposed sites that have been found approvable will be grouped in
Category A. All applications that are submitted as ``site identified''
as well as those that are submitted with site control but the evidence
of control and/or site(s) are not approvable (if the Sponsor indicates
that it is willing to seek a different site if the proposed site is
unapprovable) will be grouped in Category B. All applications in
Category A will be selected before any applications are selected from
Category B. See Section V.B.4. for further information on the selection
process.
(c) Historic Preservation. If you submit an application with
evidence of site control, you are required to send a letter to the
State/Tribal Historic Preservation Officer (SHPO/THPO) that attempts to
initiate consultation with their office and requests their review of
your determinations and findings with respect to the historical
significance of your proposed project. A HUD's website at http://www.hud.gov/
offices/adm/grants/fundsavail.cfm contains a sample letter
to the SHPO/THPO that you may adapt for your use, if you so choose. You
must include a copy of your letter to the SHPO/THPO in your
application. You must then also include in your application either:
(i) The response letter(s) from the SHPO/THPO, or
(ii) A statement from you that you have not received a response
letter(s) from the SHPO/THPO.
(d) Contamination. HUD must determine if a proposed site contains
contamination and, if so, HUD must be satisfied that it is eliminated
to the extent necessary to meet non site-specific Federal, State or
local health standards. If you submit an application with evidence of
site control, you must assist HUD by doing the following:
(i) Phase I Environmental Site Assessment (ESA)--You must submit a
Phase I ESA, prepared in accordance with the ASTM Standards E 1527-05, as

[[Page 12036]]

amended, completed or updated no earlier than six months prior to the
application deadline date, in order for the application to be
considered as an application with site control. The Phase I ESA must be
completed and included in your application. Therefore, it is important
that you start the Phase I ESA process as soon after publication of the
SuperNOFA as possible. To help you choose an environmentally safe site,
HUD invites you to review the document ``Choosing An Environmentally
Safe Site'' and ``Supplemental Guidance, Environmental Information'',
which are available on HUD's website at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
(ii) Phase II ESA--If the Phase I ESA indicates the possible
presence of contamination and/or hazards, you must decide whether to
continue with this site or choose another site. Should you choose
another site, the same Phase I ESA process identified above must be
followed for the new site. However, if you choose to continue with the
original site on which the Phase I ESA indicated contamination or
hazards, you must undertake a detailed Phase II ESA by an appropriate
professional. In order for your application to be considered as an
application with site control, the Phase II must be received in the
local HUD office on or before the deadline date of June 26, 2006.
(iii) Clean-up--If the Phase II ESA reveals site contamination, the
extent of the contamination and a plan for clean-up of the site must be
submitted to the local HUD office. The plan for clean-up must include a
contract for remediation of the problem(s) and an approval letter from
the applicable federal, state, and/or local agency with jurisdiction
over the site. In order for your application to be considered as an
application with site control, this information must be received by the
appropriate local HUD office on or before the application deadline date
of June 26, 2006.

Note: Clean-up could be an expensive undertaking. You must pay
for the cost of any clean-up and/or remediation. If the application
is approved, clean-up must be completed prior to initial closing.
Completion of clean-up means that hud must be satisfied that the
contamination has been eliminated to the extent necessary to meet
non site-specific federal, state or local health standards, with no
active or passive remediation still taking place, no capping over of
any contamination, and no monitoring wells. however, it is
acceptable if contamination remains solely in groundwater that is at
least 25 feet below the surface.

(e) Asbestos. asbestos is a hazardous substance commonly used in
building products until the late 1970s. Therefore, if you submit an
application with evidence of site control, you must submit one of the
following with your application:
(i) If there is no pre-1978 structure on the site, a statement to
this effect, or
(ii) If there is a pre-1978 structure on the site, an asbestos
report which is based on a thorough inspection to identify the location
and condition of asbestos throughout any structures. In those cases
where suspect asbestos is found, it would either be assumed to be
asbestos or would require confirmatory testing. If the asbestos report
indicates the presence of asbestos or the presence of asbestos is
assumed, and if the application is approved, HUD will condition the
approval on an appropriate mix of asbestos abatement and an asbestos
Operations and Maintenance Plan.
(4) There must be a market need for the number of units proposed in
the area of the project location.
(5) Your application must contain a Supportive Services Plan and a
Certification from the appropriate state or local agency that the
Supportive Services Plan is well designed to address the individual
health, mental health and other needs of persons with disabilities who
will live in your proposed project. Exhibit 5 in Section IV.B. below
outlines the information that must be in the Supportive Services Plan.
You must submit one copy of your Supportive Services Plan to the
appropriate State or local agency well in advance of the application
submission deadline date for the state or local agency to review your
Supportive Services Plan and complete the Supportive Services
Certification and return it to you so that you can include it in the
application you submit to HUD.
(i) HUD will reject your application if the Supportive Services
Certification:
A Is not submitted with your application and is not submitted to
HUD within the 14-day cure period; or
B Indicates that the provision of supportive services is not well
designed to address the individual health, mental health and other
needs of persons with disabilities who will live in your project; or
C Indicates that the provision of supportive services will not
enhance independent living success or promote the dignity of the
persons with disabilities who will live in your proposed project.
(ii) In addition, if the agency completing the certification will
be a major funding or referral source for your proposed project or be
responsible for licensing the project, HUD will reject your application
if either the agency's Supportive Services Certification indicates--or,
where the agency fails to complete item 3 or 4 of the certification,
HUD determines that:
A You failed to demonstrate that supportive services will be
available on a consistent, long-term basis; and/or
B The proposed housing is not consistent with state or local agency
plans/policies addressing the housing needs of people with
disabilities.
Any prospective resident of a Section 811 project who believes he/
she needs supportive services must be given the choice to be
responsible for acquiring his/her own services or to take part in your
Supportive Services Plan which must be designed to meet the individual
needs of each resident.
You must not require residents to accept any supportive services as
a condition of occupancy or admission.
(6) Delinquent Federal Debt. Refer to the General Section for
information regarding delinquent federal debt.
3. Program Requirements. By signing Form HUD-92016-CA, Supportive
Housing for Persons with Disabilities Section 811, Application for
Capital Advance Summary Information, you are certifying that you will
comply with the program requirements listed in the General Section as
well as the following requirements:
a. Statutory and Regulatory Requirements. In addition to the
statutory, regulatory, threshold and public policy requirements listed
in the General Section, you must comply with all statutory and
regulatory requirements listed in Sections I and III of this NOFA.
b. Project Size Limits.
(1) Independent living project. The minimum number of units for
persons with disabilities that can be applied for in one application is
five units for persons with disabilities. All of the units are not
required to be in one structure and they may be on scattered sites. The
maximum number of persons with disabilities that can be housed in an
independent living project on one or adjacent sites is 14 plus one
additional one-or two-bedroom unit for a resident manager, if
necessary. If the proposed independent living project will be located
on a site already containing housing for persons with disabilities or
on an adjacent site containing such housing, the total number of
persons with disabilities housed in both the existing and the proposed
project cannot exceed 14.
(2) Exception to project size limit for an independent living
project. If you are submitting an application for an independent living
project with site

[[Page 12037]]

control, you may request an exception to the above project size limit
by providing the information required in Exhibit 4(d)(xii) of Section
IV.B. below NOFA.
(3) Group home. The minimum number of persons with disabilities
that can reside in a group home is two, and the maximum number is six.
There are no exceptions to the maximum project size limit for a group
home. An additional one-bedroom unit can be provided for a resident
manager. Only one person per bedroom is allowed, unless two residents
choose to share one bedroom or a resident determines he/she needs
another person to share his/her bedroom. If you are applying for more
than one group home, they cannot be located on the same or adjacent sites.
(4) Condominium Units. Condominium units are treated the same as
units in an independent living project except that you cannot request
an additional condominium unit for a resident manager.
c. Minimum Capital Investment. If selected, you must provide a
minimum capital investment of one-half of one percent of the HUD-
approved capital advance amount, not to exceed a maximum of $10,000 in
accordance with 24 CFR 891.145.
d. Accessibility. Your project must meet accessibility requirements
published at 24 CFR 891.120, 24 CFR 891.310 and Section 504 of the
Rehabilitation Act of 1973, and, if new construction, the design and
construction requirements of the Fair Housing Act and HUD's
implementing regulations at 24 CFR part 100. In addition, 24 CFR
8.4(b)(5) prohibits the selection of a site or location which has the
purpose or effect of excluding persons with disabilities from the
Federally assisted program or activity. Refer to Section V.A. below and
the General Section for information regarding the policy priority of
encouraging accessible design.
e. Conducting Business in Accordance With Core Values and Ethical
Standards. You are not subject to the requirements of 24 CFR parts 84
and 85 as outlined in the General Section except for the disposition of
real property, which may be subject to 24 CFR Part 84. However, you are
still subject to the core values and ethical standards as they relate
to the conflict of interest provisions in 24 CFR 891.130. To ensure
compliance with the program's conflict of interest provisions, you are
required to sign a Conflict of Interest Resolution and include it in
your Section 811 application. Further, if awarded a Section 811 fund
reservation, the officers, directors, board members, trustees,
stockholders and authorized agents of the Section 811 Sponsor and Owner
entities will be required to submit to HUD individual certifications
regarding compliance with HUD's conflict of interest requirements.
f. National Environmental Policy Act. You must comply with the
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and
applicable related environmental authorities at 24 CFR 50.4, HUD's
programmatic implementing regulations at 24 CFR part 50 and 24 CFR
891.155(b), especially, but not limited to, the provision of
information to HUD at 24 CFR 50.31(b), and you must comply with any
environmental ``conditions and safeguards'' at 24 CFR 50.3(c).
Under 24 CFR Part 50, HUD has the responsibility for conducting the
environmental reviews. HUD cannot approve any site for which you have
site control unless it first completes the environmental review. In
rare cases where HUD is not able to complete the environmental review,
it is due to a complex environmental issue that could not be resolved
during the time period allocated for application processing. Thus, if
you submit an application with evidence of site control, HUD requires
you to attempt to obtain comments from the State/Tribal Historic
Preservation Officer (see Exhibit 4(d)(ix) of Section IV.B. below) to
help HUD complete the environmental review on time. It is also why HUD
may contact you for additional environmental information. So that you
can review the type of information that HUD needs for its preparation
of the environmental review as well as the type of information requests
that HUD may make to you, you are invited to go to the following
website to view the HUD form 4128, including the Sample Field Notes
Checklist, which HUD uses to record the environmental review:
http://www.hud.gov/utilities/intercept.cfm?/offices/cpd/energyenviron/
environment/compliance/forms/4128.pdf.
g. Lead-Based Paint. You must comply with the requirements of the
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) and
implementing regulations at 24 CFR part 35.
h. Executive Order 13202, Preservation of Open Competition and
Government Neutrality Towards Government Contractors' Labor Relations
on Federal and Federally Funded Construction Projects. Refer to the
General Section.
i. Fair Housing Requirements. Refer to the General Section.
j. Economic Opportunities for Low and Very Low-Income Persons
(Section 3). You must comply with Section 3 of the Housing and Urban
Development Act of 1968, U.S.C. 1701u (Economic Opportunities for Low
and Very Low-Income Persons) and its implementing regulations at 24 CFR
part 135. You must ensure that training, employment and other economic
opportunities shall, to the greatest extent feasible, be directed
toward low and very low-income persons, particularly those who are
recipients of government assistance for housing and to business
concerns which provide economic opportunities to low and very-low
income persons. To comply with Section 3 requirements you are hereby
certifying that you will strongly encourage your general contractor and
subcontractors to participate in local apprenticeship programs or
training programs registered or certified by the Department of Labor's
Office of Apprenticeship, Training, Employer and Labor Services or
recognized State Apprenticeship Agency. Although not a NOFA
requirement, you are nonetheless encouraged to submit with your
application a description on how you plan to incorporate the Section 3
requirements into your proposed project with goals for expanding
training and employment opportunities for low and very low-income
(Section 3) residents as well as business concerns. You will receive up
to two (2) points if you provide a description of your plans for doing
so under Exhibit 3(m) of this program NOFA.
k. Design and Cost Standards. You must comply with HUD's Section
811 project design and cost standards (24 CFR 891.120 and 891.310), the
Uniform Federal Accessibility Standards (24 CFR 40.7), Section 504 of
the Rehabilitation Act of 1973 and HUD's implementing regulations at 24
CFR part 8, and for covered multifamily dwellings designed and
constructed for first occupancy after March 13, 1991, the design and
construction requirements of the Fair Housing Act and HUD's
implementing regulations at 24 CFR part 100, and, where applicable, the
Americans with Disabilities Act of 1990.
HUD has adopted a wide-ranging energy action plan for improving
energy efficiency in all program areas. As a first step in implementing
the energy plan, HUD, the Environmental Protection Agency (EPA) and the
Department of Energy (DoE) have signed a joint partnership to promote
energy efficiency in HUD's affordable housing efforts and programs. The
purpose of the Energy Star partnership is not only to promote energy
efficiency of the affordable housing stock, but also to help protect
the environment. Although

[[Page 12038]]

it is not a requirement, you are nonetheless encouraged to promote
energy efficiency in design and operations and your application will
receive one (1) point if you describe your plans for doing so in the
proposed project. You are especially urged to purchase and use Energy
Star-labeled products. For further information about Energy Star, see
http://www.energystar.gov or call 888-STAR-YES (1-888-782-7937) or for
the hearing-impaired, 888-588-9920 TTY.
l. Formation of Owner Corporation. You must form an ``Owner''
entity (in accordance with 24 CFR 891.305) after issuance of the
capital advance fund reservation and must cause the Owner entity to
file a request for determination of eligibility and a request for
capital advance, and must provide sufficient resources to the Owner
entity to ensure the development and long-term operation of the
project, including capitalizing the Owner entity at firm commitment
processing in an amount sufficient to meet its obligations in
connection with the project over and above the capital advance amount.
m. Davis-Bacon. You must comply with the Davis-Bacon Requirements
(42 U.S.C. 8013(j)(6)) and the Contract Work Hours and Safety Standards
Act in accordance with 24 CFR 891.155(d).

IV. Application and Submission Information

A. Address to Request Application Package. All information required
to complete and return a valid application is included in the General
Section and this NOFA, including other related documents. Copies of the
General Section, this NOFA, the required forms, and other related
documents are available and may be downloaded from the Grants.gov Web
site at http://www.Grants.gov. Search for the program using the CFDA
Number, Competition ID OR Funding Opportunity Number.
You may request general information, copies of the General Section
and this NOFA (including related documents), and required forms from
the NOFA Information Center (800-HUD-8929 or 800-HUD-2209 (TTY)) Monday
through Friday, except on federal holidays. When requesting
information, please refer to the name of the program you are interested
in.
B. Content and Form of Application Submission. The exhibits to be
included in your application are contained in the body of this NOFA
below. Before preparing your application, you should carefully review
the requirements of the regulations (24 CFR Part 891) and general
program instructions in Handbook 4571.2, Section 811 Capital Advance
Program for Housing Persons with Disabilities. Note: Section 1001 of
Title 18 of the United States Code (Criminal Code and Criminal
Procedure, 72 Stat. 967) applies to all information supplied in the
application submission. (18 U.S.C. 1001, among other things, provides
that whoever knowingly and willfully makes or uses a document or
writing containing any false, fictitious, fraudulent statement or
entry, in any matter within the jurisdiction of any department or
agency of the United States, shall be fined not more than $10,000 or
imprisoned for not more than five years, or both.)
The Application for a Section 811 Capital Advance consists of four
parts with a total of eight Exhibits. Included with the eight Exhibits
are prescribed forms, certifications and resolutions. The components of
the Application are:
Part 1--Application Form for Section 811 Supportive Housing--
Capital Advance (Exhibit 1).
Part 2--Your Ability to Develop and Operate the Proposed Project
(Exhibits 2 and 3).
Part 3--The Need for Supportive Housing for the Target Population
in the Area to be Served, Site Control and/or Identification of Site,
Suitability of Site, Adequacy of the Provision of Supportive Services
and of the Proposed Project (Exhibits 4 and 5).
Part 4--General Application Requirements, Certifications and
Resolutions (Exhibits 6 through 8).
The following additional information, which may assist you in
preparing your application, is available on HUD's Web site at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

? Listing of Local HUD Offices
? Letter Requesting SHPO/THPO Review
? Choosing an Environmental Safe Site
? Supplemental to Choosing An Environmentally Safe Site
Your application must include all of the information, materials,
forms, and exhibits listed below (unless you were selected for a
Section 811 fund reservation within the last three funding cycles). If
you qualify for this exception, you are not required to submit the
information described in Exhibit 2(a), (b), and (c), which are the
articles of incorporation (or other organizational documents), by-laws,
and the IRS tax exemption, respectively. If there has been a change in
any of these documents since your previous HUD approval, you must
submit the updated information in your application. The local HUD
office will verify your previous HUD approval by checking the project
number and approval status with the appropriate local HUD office based
on information submitted.
In addition to this relief of paperwork burden in preparing
applications, you are able to use information and exhibits previously
prepared for prior applications under Section 811, Section 202, or
other funding programs. Examples of exhibits that may be readily
adapted or amended to decrease the burden of application preparation
include, among others, those on previous participation in the Section
202 or Section 811 programs, your experience in the provision of
housing and services, supportive services plans, community ties, and
experience serving minorities.
For programmatic information, you MUST contact the appropriate
local HUD office about the submission of applications within the
jurisdiction of that Office. A listing of the local HUD offices is
available on HUD's Web site at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
Please submit your application using the following format provided
in this NOFA. You are strongly encouraged to submit your application
electronically via Grants.gov as it is a goal of the Department to
increase the number of successfully submitted electronic applications
for FY 2006. For applications to be submitted electronically, in which
you have created files to be attached to the electronic application,
you should number the pages of the attached file and include a header
that identifies the exhibit that it relates to. For applicants that
received a waiver of the electronic application submission requirement,
you must number the pages of each file, narratives and other attached
files. Include the name of your organization and your DUNS number, and
the exhibit number that you are responding to on the header of each
document.
1. Table of Contents (This is also to be used as a checklist to
assist you in submitting a complete application. For applicants who
received a waiver of the electronic application submission, after your
application is complete, you must insert the page number after each
Exhibit or portion of the Exhibit item listed below.)
a. Part I--Application Form for Section 811 Supportive Housing--Capital
Advance
(1) Exhibit 1: Form HUD-92016-CA, Supportive Housing for Persons
with Disabilities Section 811, Application for Capital Advance Summary
Information.

[[Page 12039]]

b. Part II--Your Ability to Develop and Operate the Proposed Project
(1) Exhibit 2: Your Legal Status:

(a) Articles of Incorporation (or other organizational documents)
(b) By-laws
(c) IRS Tax Exemption Ruling

[Exception: See Exhibit to determine if you may be exempt from
submitting these documents.]

(d) The number of people on your board and the number of board members
who have disabilities
(2) Exhibit 3: Your purpose, community ties, and experience:
(a) Purpose(s), current activities, how long you have been in existence
(b) Ties to the community at large, to the target population, and
description of geographic areas served
(c) Local government support for project
(d) Letters of support for your organization and for the proposed project
(e) Housing and/or supportive services experience
(f) Efforts to involve target population
(g) Description of practical solutions to be implemented
(h) Project Development Timeline
(i) Description of how project will remain viable including:
(i) If service funds are depleted
(ii) For State-funded services, if State changes policy
(iii) If the need for project changes
(j) Identification/coordination with other organizations
(k) Description of consultation with Continuum of Care organizations
(l) Description of efforts to remove barriers to affordable housing
(m) Description of your plans to incorporate Section 3 requirements,
Economic Opportunities for Low and Very-Low Income Persons, in proposed
project (optional, but required to receive up to 2 points)
c. Part III--The Need for Supportive Housing for the Target Population
in the Area To Be Served, Site Control and/or Identification of Site
and Suitability of Site, Adequacy of the Provision of Supportive
Services and of the Proposed Project
(1) Exhibit 4: Project information including:

(a) Evidence of need for project
(b) How project will benefit target population and community
(c) A narrative description of the project, including:
(i) Building design
(ii) Whether and how project will promote energy efficiency
(iii) If applicable, description of plans and actions to create a
mixed-finance project for additional units and the number of additional
units
Evidence of Site Control
(d) Evidence of site control and permissive zoning (If you do not have
site control, skip to (e), Identification of a Site, below):
(i) Site control document(s)
(ii) Evidence site is free of limitations, restrictions, or reverters
(iii) Evidence of permissive zoning or statement of proposed action
required to make project permissible
(iv) Evidence of compliance with the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, as amended (URA) site
notification requirement
(v) Narrative topographical/demographic description of site/area
suitability, how site will promote greater housing opportunities for
minorities/target population
(vi) Racial composition/concentration map of site
(vii) Phase I Environmental Site Assessment
(viii) Asbestos Statement or Report
(ix) Letter to State/Tribal Historic Preservation Officer (SHPO/THPO)
and a statement that SHPO/THPO failed to respond to you OR a copy of
the response letter received from SHPO/THPO
(x) Willingness to seek an alternate site
(xi) Request for exception to project size limits (if applicable)--why
site was selected and (ILP with site control only):
(A) Preference/acceptance of people with disabilities to live in
proposed housing
(B) Increased number of people warranted by market conditions in area
(C) Compatibility of project with other residential development and
population density of the area
(D) Increased number of people will not prohibit successful integration
into the community
(E) Marketability of project in the community
(F) Project size consistent with State and/or local policies governing
similar housing
(G) Willingness to have application processed at project size limit
(e) Identification of a Site:
(i) Location of site
(ii) Steps undertaken to identify site; what must be done to obtain
site control
(iii) Whether site is properly zoned
(iv) Status of the sale of the site
(v) Whether the site would involve relocation

(2) Exhibit 5: Supportive Services Plan:

(a) Description of occupancy
(b) Request for approval to limit occupancy, if applicable, including:
(i) Description of population to which occupancy will be limited
(ii) Why it is necessary to limit occupancy, including:
(A) How Section 811 program goals will still be achieved
(B) Why housing and services needs cannot be met in a more integrated
setting
(iii) Experience in providing housing and/or supportive services to
proposed population
(iv) How you will ensure occupants will be integrated into neighborhood
and community
(c) Supportive services needs of proposed population
(d) List of community service providers with letters of intent
(e) Evidence of each service provider's capability and experience
(f) Extent of State and local agency involvement in project
(g) Letter indicating your commitment to make services available or
coordinate their availability
(h) How residents will be afforded employment opportunities
(i) Whether project will include manager's unit
(j) Statement that you will not condition occupancy on the resident's
acceptance of supportive services
d. Part IV--General Application Requirements, Certifications and
Resolutions
(1) Exhibit 6: Other Applications
(a) A list of applications, if any, you are submitting to any other
local HUD Office in response to the FY 2006 Section 202 or Section 811
NOFA, and required information about each.
(b) A list of all FY 2005 and prior year Section 202 or Section 811
projects to which you are a party and the required information about each.
(2) Exhibit 7: Applies to applications with site control only a
statement that:

(a) Identifies all persons occupying property on application submission
date
(b) Indicates estimated cost of relocation payments/other services
(c) Identifies staff organization that will carry out relocation
activities
(d) Identifies all persons who have moved from site within past 12
months

(3) Exhibit 8: Standard Forms, Certifications and Resolutions:

(a) Standard Form 424, Application for Federal Assistance with a copy
of the letter you sent to the State Point of Contact, if applicable

[[Page 12040]]

(b) Standard Form 424 Supplement, Survey on Ensuring Equal Opportunity
for Applicants
(c) Standard Form LLL, Disclosure of Lobbying Activities, if applicable
(d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report
(e) Form HUD-2991, Certification of Consistency with the Consolidated
Plan
(f) Form HUD-92041, Sponsor's Conflict of Interest Resolution
(g) Form HUD-92042, Sponsor's Resolution for Commitment to Project
(h) Form HUD-2990, Certification of Consistency with the RC/EZ/EC-II
Strategic Plan, as applicable
(i) Form HUD-92043, Certification for Provision of Supportive Services
(j) Form HUD-96010, Program Outcome Logic Model
(k) Form HUD-27300, Questionnaire for HUD's Initiative on Removal of
Regulatory Barriers, including any required documentation or URL
references (optional form, but required in order to receive up to 2
policy priority points)
(l) Form HUD-96011, Facsimile Transmittal, must be used as the cover
page for any facsimile submitted using the facsimile solution. See the
General Section for instructions
(m) HUD-2994-A, You Are Our Client Survey (optional)

2. Programmatic Applications Requirements

a. Part I--Application Form for Section 811 Supportive Housing--Capital
Advance
(1) Exhibit 1--Form HUD-92016-CA, Supportive Housing for Persons
with Disabilities Section 811 Application for Capital Advance Summary
Information. Found in the instruction download at http://www.grants.gov.

b. Part II--Your Ability To Develop and Operate the Proposed Project
(1) Exhibit 2--Evidence of your legal status (Nonprofit with
501(c)(3) IRS tax exemption) (If another organization(s) is co-
sponsoring the application with you, each Co-Sponsor must also submit
the following):

(a) Articles of Incorporation, constitution, or other organizational
documents
(b) By-laws
(c) IRS tax exemption ruling (this must be submitted by all Sponsors,
including churches)

Note: Based on a HUD review of your articles of incorporation,
constitution, or other organizational documents, HUD must determine,
among other things, that (1) you are an eligible nonprofit entity
with a 501(c)(3) IRS tax exemption status, (2) your corporate
purposes are sufficiently broad to provide you the legal authority
to sponsor the proposed project for the disabled, to assist the
Owner, and to apply for a capital advance, (3) no part of the
Sponsor's net earnings inures to the benefit of any private party,
and (4) that you are not controlled by or under the direction of
persons seeking to derive profit or gain there from. [Exception: If
you received a Section 811 Fund Reservation within the last three
funding cycles, you are not required to submit the documents
described in (a), (b), and (c) above. Instead, submit the project
number of the latest application and the local HUD office to which
it was submitted. If there have been any modifications or additions
to the subject documents, indicate such, and submit the new material.]

(d) The number of people on your board and the number of board
members who have disabilities.
(2) Exhibit 3--Your purpose, community ties, and experience:
(a) A description of your purpose(s), current activities, including
your ability to enlist volunteers and raise private local funds and how
long you have been in existence.
(b) A description of your ties to the community in which your
project will be located and to the minority and disability communities
in particular, including a description of the specific geographic
area(s) in which you have served.
(c) A description of local government support for the project
(including financial assistance, donation of land, provision of
services, etc.).
(d) Letters of support for your organization and for the proposed
project from organizations familiar with the housing and supportive
services needs of the target population (e.g., the local center for
independent living, the Statewide Independent Living Council) that you
expect to serve in the proposed project.
(e) A description of your housing and/or supportive services
experience. The description should include any rental housing projects
(including any integrated housing developments) and/or supportive
services facilities that you sponsored, own and/or operate, your past
or current involvement in any programs other than housing that
demonstrates your management capabilities (including financial
management) and experience, your experience in serving the target
population (persons with disabilities and minorities); and the reasons
for receiving any increases in fund reservations for developing and/or
operating previously funded Section 202 or Section 811 projects. The
description should include data on the facilities and services
provided, the racial/ethnic composition of the populations served, if
available, and information and testimonials from residents or community
leaders on the quality of the activities. Examples of activities that
could be described include housing counseling, nutrition and food
services, special housing referral, screening and information projects.
(f) A description of your efforts to involve members of the target
population (persons with disabilities including minority persons with
disabilities and persons with disabilities similar to those of the
prospective residents) in the development of the application as well as
your intent to involve the target population in the development and
operation of the project.
(g) A description of the practical solutions you will implement
which will enable residents of your project to achieve independent
living and economic empowerment. In addition, describe the educational
opportunities you will provide for the residents and how you will
provide them. This description should include the activities you will
undertake to improve computer access, literacy and employment
opportunities (e.g., provide programs that can teach residents how to
use computers to become educated as well as achieve economic self-
sufficiency through job training and placement). And, finally, describe
how your proposed project will be an improved living environment for
the residents when compared to their previous place of residence.
(h) Describe your plan for completing the proposed project. Include
a project development timeline which lists the major development stages
for the project with associated dates that must be met in order to get
the project to initial closing and start of construction within the 18-
month fund reservation period as well as the full completion of the
project, including final closing. Completion of Exhibit 8(j), Logic
Model, will assist you in completing your response to this Exhibit.
(i) Describe how you will ensure that your proposed project will
remain viable as housing with the availability of supportive services
for the target population for the 40-year capital advance period. This
description should address the measures you would take should any of
the following occur:
(i) Funding for any of the needed supportive services becomes depleted;
(ii) If, for any state-funded services for your project, the state
changes its policy regarding the provision of supportive

[[Page 12041]]

services to projects such as the one you propose; or
(iii) If the need for housing for the population you will be
serving wanes over time, causing vacancies in your project.
(j) A description of the steps you took to coordinate your
application with other organizations (e.g., the local center for
independent living) that will not be directly involved in your project
but with which you share common goals and objectives, to complement
and/or support the proposed project so that the project will provide a
comprehensive and holistic solution to the needs of persons with
disabilities.
(k) A description of your efforts to consult with Continuum of Care
organizations in the community where the project will be located about
the ways you can assist persons with disabilities who are chronically
homeless as defined in the General Section.
(l) A description of the successful efforts the jurisdiction in
which your project will be located has taken in removing regulatory
barriers to affordable housing. To obtain up to 2 points for this
policy priority, you must complete the optional Form HUD-27300,
``Questionnaire for HUD's Initiative on Removal of Regulatory
Barriers'' in Exhibit 8(k) of the application AND provide the necessary
URL references or submit the documentary evidence.
(m) A description on how you plan to incorporate the Section 3
requirements into your proposed project with goals for expanding
training and employment opportunities for low and very low-income
(Section 3) persons as well as business concerns. This exhibit is
optional, but to obtain up to 2 points for this policy priority, you
must submit this exhibit and adequately address your plans to provide
opportunities to train and employ low and very low-income residents of
the project area and award substantial contracts to persons residing in
the project area.
c. Part III--The Need for Supportive Housing for the Target Population,
Site Control and/or Identification of Site and Suitability of Site,
Adequacy of the Provision of Supportive Services and of the Proposed
Project
(1) Exhibit 4--Need and Project Information:
(a) Evidence of need for supportive housing. Include a description
of the proposed population and evidence demonstrating sustained
effective demand for supportive housing for the proposed population in
the market area to be served, taking into consideration the occupancy
and vacancy conditions in existing comparable subsidized housing for
persons with disabilities, state or local needs assessments of persons
with disabilities in the area, the types of supportive services
arrangements currently available in the area, and the use of such
services as evidenced by data from local social service agencies. Also,
a description of how information in the community's or (where
applicable) the State's Consolidated Plan, Analysis of Impediments to
Fair Housing Choice (AI) or other planning document that analyzes fair
housing issues was used in documenting the need for the project.
(b) A description of how the proposed project will benefit the
target population and the community in which it will be located.
(c) Description of the project.
(i) Narrative description of the building(s) including the number
and type of structure(s), number of units with bedroom distribution if
independent living units including dwelling units in multifamily
housing developments, condominiums and cooperatives, number of bedrooms
if group home, number of residents with disabilities, and any resident
manager per structure; identification of all commercial and community
spaces, amenities or features planned for the housing and a description
of how the spaces, amenities, or features will be used, and the extent
to which they are necessary to accommodate the needs of the proposed
residents. A narrative description of the building design (both
interior and exterior), including any special design features, as well
as any features that incorporate visitability standards and universal
design. Also include a description of how the design of the proposed
project will facilitate the integration of the residents into the
surrounding community and promote the ability of the residents to live
as independently as possible.

Note: If the community spaces, amenities, or features do not
comply with the project design and cost standards of 24 CFR 891.120
(a) and (c), the special project standards of 24 CFR 891.310 (a),
and the limitations on bedroom sizes as required by paragraph 1-
11.E.2.a of HUD Handbook 4571.2 REV-1, you must demonstrate your
ability and willingness to contribute both the incremental
development cost and continuing operating cost associated with the
community spaces, amenities, or features.

(ii) Describe whether and how the project will promote energy
efficiency (in accordance with the requirements set forth in Section
III.C.3.k. of this NOFA), including any plans to incorporate energy
efficiency features in the operation of the project through the use of
Energy Star labeled products and appliances and, if applicable,
innovative construction or rehabilitation methods or technologies to be
used that will promote efficient construction.
(iii) For site control applications, if you are proposing to
develop a mixed-finance project by developing additional units (i.e.,
in addition to the 811 units), a description of any plans and actions
you have taken to create such a mixed-finance project with the use of
Section 811 capital advance funds, in combination with other funding
sources. Provide the number of non-Section 811 units to be included in
the mixed-finance project (also provide the number of additional units
in the appropriate space on Form HUD-92016-CA). Also, provide copies of
any letters you have sent seeking outside funding for the non-Section
811 units and any responses thereto. You must also demonstrate your
ability to proceed with the development of a Section 811 project that
will not involve mixed-financing, as proposed in your application, in
the event you are later unable to obtain the necessary outside funding
or HUD disapproves your proposal for a mixed-finance project for
additional non-Section 811 units for persons with disabilities.

Notes: (1) A proposal to develop a mixed-finance project for
additional units must occur at the application for fund reservation
stage. You cannot decide after selection that you want to do a
mixed-finance project for additional units. (2) Section 811 capital
advance amendment money will not be approved for projects proposing
mixed-financing. (3) If approved for a reservation of capital
advance funds, you will be required to submit with your Firm
Commitment Application, the additional documents required by HUD for
mixed-finance proposals. (4) A mixed-finance project does not
include the development of a mixed-use project in which the Section
811 units are mortgaged separately from the other uses of the
structure. (5) For a Section 811 mixed-finance project, the
additional units cannot cause the project to exceed the project size
limit for the type of project proposed, unless you request and
receive HUD approval to exceed the project size limit if the project
will be an independent living project (See IV.B.2.c.(1)(d)(xii)) or
the additional units will house people who do not have a disability.

(d) Evidence of site control and permissive zoning.

Note: If you are applying for Section 811 funding without
control of any or all of your proposed sites, you must provide the
information under (e), Identification of a Site, below for any site
you are submitting without evidence of control of that site.

[[Page 12042]]

(i) Acceptable evidence of site control is limited to any one of
the following:
(A) Deed or long-term leasehold which evidences that you have title
to or a leasehold interest in the site. If a leasehold, the term of the
lease must be 50 years with renewable provisions for 25 years except
for sites on Indian trust land, in which case, the term of the lease
must be at least 50 years with no requirements for extensions;
(B) Contract of sale for the site that is free of any limitations
affecting the ability of the seller to deliver ownership to you after
you receive and accept a notice of Section 811 capital advance. (The
only condition for closing on the sale can be your receipt and
acceptance of the capital advance.) The contract of sale cannot require
closing earlier than the Section 811 closing;
(C) Option to purchase or for a long-term leasehold, which must
remain in effect for six months from the date on which the applications
are due, must state a firm price binding on the seller, and be
renewable at the end of the six-month period. The only condition on
which the option may be terminated is if you are not awarded a fund
reservation;
(D) If the site is covered by a mortgage under a HUD program,
(e.g., a previously funded Section 202 or Section 811 project or an
FHA-insured mortgage) you must submit evidence of site control as
described above AND evidence that consent to release the site from the
mortgage has been obtained or has been requested from HUD (all required
information in order for a decision on the request for a partial
release of security must have been submitted to the local HUD office)
and from the mortgagee, if other than HUD Approval to release the site
from the mortgage must be done before the local HUD office makes its
selection recommendations to HUD Headquarters. Refer to Chapter 16 of
HUD Handbook 4350.1 Rev-1, Multifamily Asset Management and Project
Servicing, for instructions on submitting requests to the local HUD
Office for partial release of security from a mortgage under a HUD
program; or
(E) For sites to be acquired from a public body, evidence is needed
that the public body possesses clear title to the site and has entered
into a legally binding agreement to lease or convey the site to you
after you receive and accept a notice of Section 811 capital advance.
Where HUD determines that time constraints of the funding round will
not permit you to obtain all of the required official actions (e.g.,
approval of Community of Planning Boards) that are necessary to convey
publicly-owned sites, you may include in your application a letter from
the mayor or director of the appropriate local agency indicating that
conveyance or leasing of the site is acceptable without imposition of
additional covenants or restrictions, and only contingent on the
necessary approval action. Such a letter of commitment will be
considered sufficient evidence of site control.
(ii) Whether you have title to the site, a contract of sale, an
option to purchase, or are acquiring a site from a public body, you
must provide evidence (a current title policy or other acceptable
evidence) that the site is free of any limitations, restrictions, or
reverters which could adversely affect the use of the site for the
proposed project for the 40-year capital advance period under HUD's
regulations and requirements (e.g., reversion to seller if title is
transferred). If the title evidence contains restrictions or covenants,
copies of the restrictions or covenants must be submitted with the
application. If the site is subject to any such limitations,
restrictions, or reverters, the site will be rejected and the
application will be considered a ``site identified'' application.
Purchase money mortgages that will be satisfied from capital advance
funds are not considered to be limitations or restrictions that would
adversely affect the use of the site. If the contract of sale or option
agreement contains provisions that allow a Sponsor not to purchase the
property for reasons such as environmental problems, failure of the
site to pass inspection, or the appraisal is less than the purchase
price, then such provisions are not objectionable and a Sponsor is
allowed to terminate the contract of sale or the option agreement.

Note: A proposed project site may not be acquired or optioned
from a general contractor (or its affiliate) that will construct the
Section 811 project or from any other development team member.

(iii) Evidence that the project, as proposed, is permissible under
applicable zoning ordinances or regulations, or a statement of the
proposed action required to make the proposed project permissible AND
the basis for the belief that the proposed action will be completed
successfully before the submission of the firm commitment application
(e.g., a summary of the results of any requests for rezoning and/or the
procedures for obtaining special or conditional use permits on land in
similar zoning classifications and the time required for such rezoning,
or preliminary indications of acceptability from zoning bodies, etc.).

Note: You should be aware that under certain circumstances the
Fair Housing Act requires localities to make reasonable
accommodations to their zoning ordinances or regulations to offer
persons with disabilities an opportunity to live in an area of their
choice. If you are relying upon a theory of reasonable accommodation
to satisfy the zoning requirement, then you must clearly articulate
the basis for your reasonable accommodation theory.

(iv) Evidence of compliance with the URA requirement that the
seller has been provided, in writing, with the required information
regarding a voluntary, arm's length purchase transaction (i.e., (1)
applicant does not have the power of eminent domain and, therefore,
will not acquire the property if negotiations fail to result in an
amicable agreement, and (2) of the estimate of the fair market value of
the property).

(v) Narrative describing topographical and demographic aspects of
the site, the suitability of the site and area (as well as a
description of the characteristics of the neighborhood), how use of the
site will promote greater housing opportunities for minority persons
with disabilities, and how use of the site will affirmatively further
fair housing.

Note: You can best demonstrate your commitment to affirmatively
furthering fair housing by describing how your proposed activities
will assist the jurisdiction in overcoming impediments to fair
housing choice identified in the applicable jurisdiction's Analysis
of Impediments (AI) to Fair Housing Choice, which is a component of
the jurisdiction's Consolidated Plan or any other planning document
that addresses fair housing issues. The applicable Consolidated Plan
and AI may be the community's, the county's, or the state's, to
which input should have been provided by local community
organizations, agencies in the community and residents of the
community. Alternatively, a document that addresses fair housing
issues and remedies to barriers to fair housing in the community
that was previously prepared by a local planning, or similar
organization, may be used. Applicable impediments could include a
lack of units that are accessible to persons with disabilities, a
lack of transportation services or other assistance that would serve
persons with disabilities, or the need for improved quality and
services for all persons with disabilities.

(vi) A map showing the location of the site, the racial composition
of the neighborhood, and any areas of racial concentration.

[[Page 12043]]

Note: For this competition, when determining the racial and
ethnic composition of the neighborhood surrounding the proposed
site, use data from the 2000 Census of Population. Data from the
2000 Census may be found at
http://www.factfinder.census.gov/servlet/BasicFactsServlet.
(vii) A Phase I Environmental Site Assessment (ESA), in accordance
with the ASTM Standards E 1527-05, as amended, must be completed and
submitted with the application. In order for the Phase I ESA to be
acceptable, it must have been completed or updated no earlier than six
months prior to the application deadline date. Therefore, it is
important to start the site assessment process as soon after the
publication of the NOFA as possible.
If the Phase I ESA indicates possible presence of contamination
and/or hazards, you must decide whether to continue with this site or
choose another site. Should you choose another site, the same Phase I
ESA process identified above must be followed for the new site. If the
property is to be acquired from the FDIC/RTC, include a copy of the
FDIC/RTC prepared Transaction Screen Checklist or Phase I ESA and
applicable documentation, per the FDIC/RTC Environmental Guidelines. If
you choose to continue with the original site on which the Phase I ESA
indicated contamination or hazards, you must undertake a detailed Phase
II ESA by an appropriate professional. If the Phase II Assessment
reveals site contamination, you must submit the extent of the
contamination and a plan for clean-up of the site including a contract
for remediation of the problem(s) and an approval letter from the
applicable federal, state and/or local agency with jurisdiction over
the site to the local HUD office. The Phase II ESA and any necessary
plans for clean-up do not have to be submitted with the application but
must be received in the local HUD office by June 26, 2006. If it is not
received by that date, the site will be rejected and the application
will be placed in Category B for selection purposes.

Note: You must pay for the cost of any clean-up or remediation
which can be very expensive. [See NOTE at Section III.C.2.ciii.]

(viii) If you submit an application with evidence of site control,
you must submit one of the following:
(A) If there is no pre-1978 structure on the site, a statement to
this effect, or
(B) If there is a pre-1978 structure on the site, an asbestos
report which is based on a thorough inspection to identify the location
and condition of asbestos throughout any structures.

Note: In those cases where suspect asbestos is found, it would
either be assumed to be asbestos or would require confirmatory
testing. If the asbestos report indicates the presence of asbestos,
or the presence of asbestos is assumed, and if the application is
approved, HUD will condition the approval on an appropriate mix of
asbestos abatement and an asbestos Operations and Maintenance Plan.

(ix) The letter you sent to the State/Tribal Historic Preservation
Officer (SHPO/THPO) initiating consultation with their office and
requesting their review of your determinations and findings with
respect to the historical significance of your proposed project. A
sample letter that you may adapt and send to the SHPO/THPO can be found
on HUD's Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm
under the Section 811 Supportive Housing for Persons
with Disabilities Program.
(x) The SHPO/THPO response to your letter or a statement that you
have not received a response letter from the SHPO/THPO.
(xi) A statement that you are willing to seek a different site if
the preferred site is unapprovable and that site control will be
obtained within six months of notification of fund reservation.
(xii) If an exception to the project size limits is being
requested, describe why the site was selected and demonstrate the
following: (Only for applications for independent living projects and
condominium units [not group homes]
with site control)
(A) People with disabilities have indicated their acceptance or
preference to live in housing with as many units/people as proposed for
the project.
(B) The increased number of units/people is warranted by the market
conditions in the area in which the project will be located.
(C) Your project is compatible with other residential development
and the population density of the area in which the project is to be
located.
(D) The increased number of people will not prohibit their
successful integration into the community.
(E) The project is marketable in the community.
(F) The size of the project is consistent with state and/or local
policies governing similar housing for the proposed population.
(G) A statement that you are willing to have your application
processed at the project size limit should HUD not approve the exception.
(e) Identification of a Site. If you have identified a site, but do
not have it under control, you must submit the following information:

Note: If an application is submitted without evidence of site
control and does not provide a specific street address for the
identified site(s) (e.g., only an indication that the project will
be developed in a particular part of town but a site(s) has not been
chosen) the application will be rejected.

(i) A description of the location of the site, including its street
address or block and lot number(s), its unit number (if condominium),
neighborhood/community characteristics (to include racial and ethnic
data), amenities, adjacent housing and/or facilities, how the site will
promote greater housing opportunities for minority persons with
disabilities and affirmatively further fair housing. You can best
demonstrate your commitment to affirmatively furthering fair housing by
describing how your proposed activities will assist the jurisdiction in
overcoming impediments to fair housing choice identified in the
community's AI or any other planning document that addresses fair
housing issues. Examples of the applicable impediments include the need
for improved housing quality and services for minority persons with
disabilities and the need for quality services for persons with
disabilities within the type and quality of similar services and
housing in minority areas.
(ii) A description of the activities undertaken to identify the
site, as well as what actions must be taken to obtain control of the
site, if approved for funding.
(iii) An indication as to whether the site is properly zoned. If it
is not, an indication of the actions necessary for proper zoning and
whether these can be accomplished within six months of fund reservation
award, if approved for funding.
(iv) A status of the sale of the site.
(v) An indication as to whether the site would involve relocation.
(2) Exhibit 5--Supportive Services Plan:

Note: Your supportive services plan and the Supportive Services
Certification (Exhibit 8(k)) must be sent to the appropriate state
or local agency (identified by the local HUD office) far enough in
advance of the application deadline date so that the agency can
review the plan, complete the certification and return both to you
for inclusion in your application to HUD.

(a) A detailed description of whether the housing is expected to
serve persons with physical disabilities, developmental disabilities,
or chronic mental illness or any combination of the three. Include how
and from whom/where persons will be referred and admitted for occupancy
in the project. You may, with the approval of the

[[Page 12044]]

Secretary, restrict occupancy within housing developed under this NOFA
to a subcategory of one of the three main categories of disability
noted above (e.g., AIDS is a subcategory of physical disability).
However, the Owner must permit occupancy by any qualified person with a
disability that qualifies under the applicable main category of disability.
(b) If requesting approval to restrict occupancy, also submit the
following:
(i) A description of the population of persons with disabilities to
which occupancy will be limited.
(ii) An explanation of why it is necessary to restrict occupancy of
the proposed project(s) to the population described in (i) above,
including the following:
(A) An explanation of how restricting occupancy to a subcategory of
persons with disabilities promotes the goals of the Section 811 program.
(B) An explanation of why the housing and/or service needs of this
population cannot be met in a more integrated setting.
(iii) A description of your experience in providing housing and/or
supportive services to proposed occupants.
(iv) A description of how you will ensure that occupants of the
proposed project will be integrated into the neighborhood and community.
(c) A detailed description of the supportive service needs of the
persons with disabilities that the housing is expected to serve.
(d) A list of community service providers, (including consumer-
controlled providers), including letters of intent to provide services
to proposed residents from as many potential providers as possible.
(e) The evidence of each service provider's capability and
experience in providing such supportive services (even if you will be
the service provider).
(f) Identification of the extent of state and/or local agency
involvement in the project (i.e., funding for the provision of
supportive services, referral of residents, or licensing the project).
If there will be any state or local agency involvement, a description
of the state/local agency's philosophy/policy concerning housing for
the population to be served and a demonstration that your application
is consistent with state and/or local agency plans and policies
governing the development and operation of housing for persons with
disabilities.
(g) If you will be making any supportive services available to the
residents or will be coordinating the availability of any supportive
services, a letter providing:
(i) A description of the supportive services that you will make
available to the residents or, if you will be coordinating the
availability of any supportive services, a description of the
supportive service(s) and how the coordination will be implemented;
(ii) An assurance that any supportive services that you will make
available to the residents will be based on their individual needs; and
(iii) A commitment to make the supportive services available or
coordinate their availability for the life of the project.
(h) A description of how the residents will be afforded
opportunities for employment.
(i) An indication as to whether the project will include a unit for
a resident manager.
(j) A statement that you will not condition admission or occupancy
on the resident's acceptance of any supportive services.
d. Part IV--General Application Requirements, Certifications and
Resolutions
(1) Exhibit 6: Other Applications:
(a) A list of the applications, if any, you are submitting to any
other local HUD office in response to the FY 2006 Section 202 or
Section 811 NOFA. Indicate by local HUD office, the proposed location
by city and state and the number of units requested for each application.
(b) Include a list of all FY2005 and prior year Section 202 and
Section 811 capital advance projects to which you are a party. Identify
each by project number and local HUD office and include the following
information:
(1) Whether the project has initially closed and, if so, when;
(2) If the project was older than 24 months when it initially
closed (specify how old) or if older than 24 months now (specify how
old) and has not initially closed, provide the reasons for the delay in
closing;
(3) Whether amendment money was or will be needed for any project
in (2) above; and,
(4) Those projects which have not been finally closed.
(2) Exhibit 7: A statement that: (applicable to applications with
site control only)
(a) Identifies all persons (families, individuals, businesses and
nonprofit organizations) by race/minority group, and status as owners
or tenants occupying the property on the date of submission of the
application for a capital advance.
(b) Indicates the estimated cost of relocation payments and other
services.
(c) Identifies the staff organization that will carry out the
relocation activities.
(d) Identifies all persons that have moved from the site within the
past 12 months.

Note: If any of the relocation costs will be funded from sources
other than the Section 811 capital advance, you must provide
evidence of a firm commitment of these funds. When evaluating
applications, HUD will consider the total cost of proposals (i.e.,
cost of site acquisition, relocation, construction and other project costs).

(3) Exhibit 8: Certifications and Resolutions--You are required to
submit completed copies of the following forms which are included
either in the General Section or with this NOFA and copies of the forms
are available on http://www.hud.gov/offices/adm/grants/fundsavail.cfm:
(a) Standard Form 424--Application for Federal Assistance,
including a DUNS number, an indication of whether you are delinquent on
any federal debt, and compliance with Executive Order 12372 (a
certification that you have submitted a copy of your application, if
required, to the State agency (Single Point of Contact) for state
review in accordance with Executive Order 12372). If required by the
State's Single Point of Contact (SPOC), a copy of your application
needs to be submitted to the SPOC before the application deadline date,
but in no event later than the application deadline date. Refer to the
General Section and Section IV.D. of this program NOFA to find out if
your State has a SPOC and additional information on compliance with
Executive Order 12372.

Note: For Section 811 program purposes, item 12, Areas Affected
by Project, of SF-424, provide the names of the City, County and
State where the project will be located (not the largest political
entities as indicated on the instructions page of SF-424).

(b) Standard Form 424 Supplement, Survey on Ensuring Equal
Opportunity for Applicants. Although the information on this form will
not be considered in making funding decisions, it will assist the
federal government in ensuring that all qualified applicants have an
equal opportunity to compete for federal funding.
(c) Standard Form LLL--Disclosure of Lobbying Activities (if
applicable). A disclosure of activities conducted to influence any
federal transactions.
(d) Form HUD-2880, Applicant/Recipient Disclosure/Update Report,
including Social Security and Employee Identification Numbers. A
disclosure of assistance from other government

[[Page 12045]]

sources received in connection with the project.
(e) Form HUD-2991, Certification of Consistency with the
Consolidated Plan (Plan), for the jurisdiction in which the proposed
project will be located. The certification must be made by the unit of
general local government if it is required to have, or has, a complete
Plan. Otherwise, the certification may be made by the state, or by the
unit of general local government if the project will be located within
the jurisdiction of the unit of general local government authorized to
use an abbreviated strategy, and if it is willing to prepare such a
Plan. All certifications must be made by a public official responsible
for submitting the Plan to HUD. The certifications must be submitted as
part of the application by the application submission deadline date set
forth in this NOFA. The Plan regulations are published in 24 CFR part 91.
(f) Form HUD-92041, Sponsor's Conflict of Interest Resolution. A
certified Board Resolution that no officer or director of the Sponsor
or Owner has or will have any financial interest in any contract with
the Owner or in any firm or corporation that has or will have a
contract with the Owner, including a current listing of all duly
qualified and sitting officers and directors by title and the beginning
and ending dates of each person's term.
(g) Form HUD-92042, Sponsor's Resolution for Commitment to Project.
A certified Board Resolution acknowledging responsibilities of
sponsorship, long-term support of the project(s), your willingness to
assist the Owner to develop, own, manage and provide appropriate
services in connection with the proposed project, and that it reflects
the will of your membership. Also, it shall indicate your willingness
to fund the estimated start-up expenses, the Minimum Capital Investment
(one-half of one-percent of the HUD-approved capital advance, not to
exceed $10,000), and the estimated cost of any amenities or features
(and operating costs related thereto) that would not be covered by the
approved capital advance.
(h) Form HUD-2990, Certification of Consistency with the RC/EZ/EC
Strategic Plan. A certification that the project is consistent with the
RC/EZ/EC-IIs strategic plan, is located within the RC/EZ/EC-II, and
serves RC/EZ/EC-II residents. (This certification is not required if
the project site(s) will not be located in an RC/EZ/EC-II.) A copy of
the RC/EZ/EC-II Certification form is contained in the online
application; and
(i) Form HUD-92043, Certification for Provision of Supportive
Services. A certification from the appropriate state or local agency
(identified in the application or obtained from the local HUD office),
indicating whether the:
(i) Provision of supportive services is well designed to serve the
needs of persons with disabilities the housing is expected to serve;
(ii) The provision of supportive services will enhance independent
living success and promote the dignity of those who will access your
proposed project;
(iii) Supportive services will be available on a consistent, long-
term basis; and
(iv) Proposed housing is consistent with state or local plans and
policies addressing the housing needs of people with disabilities if
the state or local agency will provide funding for the provision of
supportive services, refer residents to the project or license the
project. (The name, address, and telephone number of the appropriate
agency can also be obtained from the appropriate local HUD Office.)
(j) Form HUD-96010, Program Outcome Logic Model. In addition to the
Project Development Timeline to be submitted in Exhibit 3(h) above, the
information provided in the Logic Model will be used in rating your
application for Rating Factor 5, Achieving Results and Program Evaluation.
(k) Form HUD-27300, Questionnaire for HUD's Initiative on Removal
of Regulatory Barriers (optional form). To receive up to 2 points, you
must submit this form and provide a reference, URL or brief statement
documenting the successful efforts in removing barriers to affordable
housing by the jurisdiction in which your project will be located. This
Questionnaire will be considered in the rating of your application for
Rating Factor 3.j.
(l) Form HUD-96011, Facsimile Transmittal to be used for faxing
third party letters and other documents for your electronic
applications in accordance with the instructions in the General Section.

Note: HUD will not accept entire applications by fax. If you
submit the application entirely by fax, it will be disqualified.

(m) Form HUD-2994-A, You Are Our Client Survey. This is an optional
form that may be used to provide suggestions and comments to the
Department regarding your application submission experience.
C. Submission Dates and Time. Your application must be received and
validated electronically by Grants.gov no later than 11:59:59 PM
eastern time on the application deadline date of May 26, 2006, unless a
waiver of the electronic delivery process has been approved by HUD.
Please refer to the General Section for instructions on applying for a
waiver. If you are seeking a waiver of the electronic submission
requirement, you must submit the waiver request to the following HUD
official and address: Brian D. Montgomery, Assistant Secretary for
Housing-Federal Housing Commissioner, Department of Housing and Urban
Development, 451 Seventh Street, SW., Room 9100, Washington, DC 20410-
8000, Telephone Number: (202) 708-2601. Applicants that are granted a
waiver of the electronic submission requirement will not be afforded
additional time to submit their applications. Therefore, HUD strongly
recommends that you submit your waiver request to the above address
approximately 15 days before the application deadline date. If a waiver
is granted, you may submit copies of the application through the United
States Postal Service or other type of mail service so that it can be
received at the appropriate local HUD office no later than 11:59:59
p.m. on the application deadline date of May 26, 2006. The letter
granting the waiver will provide instructions regarding the number of
copies and where they must be sent. HUD will accept hand delivery of
applications.
D. Intergovernmental Review. 1. State Review. This funding
opportunity is subject to Executive Order (EO) 12372,
``Intergovernmental Review of Federal Programs.'' You must contact your
State's Single Point of Contact (SPOC) to find out about and comply
with the state's process under EO 12372. The names and addresses of the
SPOCs are listed in the Office of Management and Budget's Web site at
http://www.whitehouse.gov/omb/grants/spoc.html. If required by the
state, the submission to the state needs to occur before the Section
811 application deadline date, but in no event later than the
application deadline date. It is recommended that you provide the state
with sufficient time to review the application. Therefore, it is
important that you consult with the SPOC for state review time frames
and take that into account when submitting the application. If the SPOC
requires a review of your application, you must include a copy of the
cover letter you sent to the SPOC in Exhibit 8(a) of your Section 811
application.
2. HUD/RHS Agreement. HUD and the Rural Housing Service (RHS) have
an agreement to coordinate the administration of the agencies'

[[Page 12046]]

respective rental assistance programs. As a result, HUD is required to
notify RHS of applications for housing assistance it receives. This
notification gives RHS the opportunity to comment if it has concerns
about the demand for additional assisted housing and possible harm to
existing projects in the same housing market area. HUD will consider
RHS comments in its review and application selection process.
E. Funding Restrictions: 1. Ineligible Activities. Section 811
funds may not be used for any of the following:
a. Supportive Services
b. Housing that you currently own or lease that has been occupied
by people with disabilities for longer than one year prior to the
application deadline date;
c. Nursing homes, infirmaries and medical facilities;
d. Transitional housing;
e. Mobile homes;
f. Intermediate care facilities;
g. Assisted living facilities;
h. Community centers, with or without special components for use by
persons with disabilities;
i. Sheltered workshops and centers for persons with disabilities;
j. Headquarters for organizations for persons with disabilities;
and
k. Refinancing of Sponsor-owned facilities without rehabilitation.

Note: You may propose to rehabilitate an existing currently-
owned or leased structure (if the structure already serves persons
with disabilities, it cannot have operated as housing for persons
with disabilities for longer than one year prior to the application
deadline date); however, the refinancing of any federally funded or
assisted project or project insured or guaranteed by a federal
agency is not permissible under this Section 811 NOFA. HUD does not
consider it appropriate to utilize scarce program resources to
refinance projects that have already received some form of
assistance under a federal program or that have been operating as
housing for persons with disabilities for longer than one year prior
to the application deadline date. (For example, Section 202, Section
202/8 or Section 202/PAC direct loan projects cannot be refinanced
with capital advances and project rental assistance.)

2. Application Limits (Units/Projects). A Sponsor or Co-Sponsor may
not apply for more than 70 units of housing or 4 projects (whichever is
less) for persons with disabilities in a single Hub or more than 10
percent of the total units allocated to all local HUD offices.
Affiliated entities (organizations that are branches or offshoots of a
parent organization) that submit separate applications are considered a
single entity for the purpose of these limits. In addition, no single
application may propose more units in a given local HUD office than
allocated for the Section 811 program in that local HUD office. If the
proposed project will be an independent living project, your
application must request at least five units for persons with
disabilities, not necessarily in one structure. If your proposed
project will be a group home, you must request at least two units for
persons with disabilities per group home. If your proposed project will
be a combination of an independent living project and a group home,
your application must request at least the minimum number of units for
each project type (i.e., 5 units for an independent living project and
2 units for a group home).
3. Development Cost Limits. a. The following development cost
limits, adjusted by locality as described in Section IV.E.3.b. below
must be used to determine the capital advance amount reserved for
projects for persons with disabilities.

(1) For independent living projects and dwelling units in
multifamily housing developments, condominium and cooperative housing:
The capital advance amount for the project attributable to dwelling use
(less the incremental development cost and the capitalized operating
costs associated with any excess amenities and design features and
other costs you must pay for) may not exceed:
Non-elevator structures:

$42,980 per family unit without a bedroom
$49,557 per family unit with one bedroom
$59,766 per family unit with two bedrooms
$76,501 per family unit with three bedrooms
$85,225 per family unit with four bedrooms

For elevator structures:

$45,232 per family unit without a bedroom
$51,849 per family unit with one bedroom
$63,049 per family unit with two bedrooms
$81,563 per family unit with three bedrooms
$89,531 per family unit with four bedrooms

(2) For group homes only (the development cost limits are capped by
type of occupancy and number of person with disabilities):

Type of Disability
------------------------------------------------------------------------
Physical/ Chronic mental
Residents developmental illness
------------------------------------------------------------------------
2....................................... $172,303 $166,325
3....................................... 185,287 178,860
4....................................... 198,273 189,995
5....................................... 211,257 201,130
6....................................... 224,228 212,265
------------------------------------------------------------------------

(3) These cost limits reflect those costs reasonable and necessary
to develop a project of modest design that complies with HUD minimum
property standards; the minimum group home requirements of 24 CFR
891.310(a) (if applicable); the accessibility requirements of 24 CFR
891.120(b) and 891.310(b); and the project design and cost standards of
24 CFR 891.120. b. Increased development cost limits.
(1) HUD may increase the development cost limits set forth above,
by up to 140 percent in any geographic area where the cost levels
require, and may increase the development cost limits by up to 160
percent on a project-by-project basis. This increase may include
covering additional costs to make dwelling units accessible through
rehabilitation.

[[Page 12047]]

Note: In applying the applicable high cost percentage, the local
HUD office may use a percentage that is higher or lower than that
which is assigned to the local HUD office if it is needed to provide
a capital advance amount that is comparable to what it typically
costs to develop a Section 811 project in that area.

(2) If HUD finds that high construction costs in Alaska, Guam, the
Virgin Islands or Hawaii make it unfeasible to construct dwellings,
without the sacrifice of sound standards of construction, design, and
livability, within the development cost limits provided in Section
IV.E.3.a.(1) and IV.E.3.b.(1) above, the amount of capital advances may
be increased to compensate for such costs. The increase may not exceed
the limits established under this section (including any high cost area
adjustment) by more than 50 percent.
(3) For group homes only, local HUD offices may approve increases
in the development cost limits in Section IV.E.3.a.(2), above, in areas
where you can provide sufficient documentation that high land costs
limit or prohibit project feasibility. An example of acceptable
documentation is evidence of at least three land sales that have
actually taken place (listed prices for land are not acceptable) within
the last two years in the area where your project is to be built. The
average cost of the documented sales must exceed ten percent of the
development cost limit for your project in order for an increase to be
considered.
4. Commercial Facilities. A commercial facility for the benefit of
the residents may be located and operated in the Section 811 project.
However, the commercial facility cannot be funded with the use of
Section 811 capital advance or PRAC funds. The maximum amount of space
permitted for a commercial facility cannot exceed 10 percent of the
total project cost. An exception to this 10 percent limitation is if
the project involves acquisition or rehabilitation and the additional
space was incorporated in the existing structure at the time the
proposal was submitted to HUD. Commercial facilities are considered
public accommodations under Title III of the Americans with
Disabilities Act of 1990 (ADA), and thus must comply with all the
accessibility requirements of the ADA.
5. Expiration of Section 811 Funds. The Department of Housing and
Urban Development Appropriations Act, 2006, requires HUD to obligate
all Section 811 funds appropriated for FY 2006 by September 30, 2009.
Under 31 U.S.C. 1551, no funds can be disbursed from this account after
September 30, 2014. Under Section 811, obligation of funds occurs for
both capital advances and project rental assistance upon fund
reservation and acceptance. If all funds are not disbursed by HUD and
expended by the project Owner by September 30, 2014, the funds, even
though obligated, will expire and no further disbursements can be made
from this account. In submitting an application, you need to carefully
consider whether your proposed project can be completed through final
capital advance closing no later than September 30, 2014. Furthermore,
all unexpended balances, including any remaining balance on PRAC
contracts, will be cancelled as of October 1, 2014. Amounts needed to
maintain PRAC payments for any remaining term on the affected contracts
beyond that date will have to be funded from other current
appropriations.
F. Other Submission Requirements: 1. Address for Submitting
Applications. Applications must be submitted electronically through the
http://www.Grants.gov Web site, unless the applicant receives a waiver
from the electronic submission requirement. See the General Section for
information on applying online and requesting a waiver from the
electronic application requirement. The applications submitted
electronically via Grants.gov will be downloaded and forwarded to the
appropriate local HUD Office for processing and review. If you apply
for and receive a waiver from the electronic application requirement,
you must submit an original and four copies of your completed
application to the Director of the appropriate local HUD office. Refer
to HUD's website at http://www.hud.gov/offices/adm/grants/fundsavail.cfm
for a listing of local HUD offices. The applications
submitted electronically via http://www.Grants.gov will be downloaded
and forwarded to the appropriate local HUD office.
2. For Section 811 applications that have more than one applicant,
i.e., Co-Sponsors. The applicants must designate a single individual to
act as the authorized representative for all Co-Sponsors of the
application. The designated authorized representative of the
organization submitting the application must be registered with
Grants.gov, the Federal Central Contractor Registry and with the
credential provider for E-Authentication. Information on the Grants.gov
registration process is found at http://www.grants.gov/GetStarted.
When the application is submitted through Grants.gov, the name of the
designated authorized representative will be inserted into the
signature line of the application. Please note that the designated
authorized representative must be able to make legally binding
commitments for each Co-Sponsor to the application.
Each Co-Sponsor must complete the documents required of all co-
sponsoring organizations to permit HUD to make a determination on the
eligibility of the Co-Sponsor(s) has pledged to the project. Therefore,
each Co-Sponsor must submit the following information using the
scanning and/or faxing method described in Section IV. of the General
Section: Standard Form 424, Application for Federal Assistance;
Standard Form 424 Supplement, Survey for Ensuring Equal Opportunity for
Applicants; Standard Form LLL, Disclosure of Lobbying Activities (if
applicable); Form HUD-92016-CA, Section 811 Application for Capital
Advance, Summary Information; Form HUD-92041, Sponsor's Conflict of
Interest Resolution; Form HUD-92042, and Sponsor's Resolution for
Commitment to Project. The forms identified above are discussed in the
Program instructions package and can be downloaded from HUD's Website
at http://www.hud.gov/offices/adm/grants/nofa06/snofaforms.cfm. The
downloaded and completed forms should be saved as separate electronic
files and attached to the electronic application submission following
the requirements of Section IV.
As stated in Section IV of the General Section, scanning documents
to create electronic files increases the size of the file. Therefore,
applicants may not submit scanned files unless using the facsimile
method as stated in the General Section. If the facsimile method does
not work, forms and other documents from Co-Sponsors may be scanned to
create an electronic file and submitted as an attachment to the
application. These documents should be labeled and numbered so the HUD
reviewer can identify the file and its contents. If the applicant is
creating an electronic file, the file should contain a header that
identifies the name of the Sponsor submitting the electronic
application, that Sponsor's DUNS Number, and the unique ID that is
found at the top of the Facsimile Transmission form found in the
electronic application package. The naming convention for each
electronic file should correspond to the labeling convention used in
the application Table of Contents found in Section IV.B.1. of this
NOFA. For example, the organizational documents of a Co-Sponsor would
be included under Part II, Exhibit 2(a) of the Section 811 application.
The signed documents and other information required to be submitted

[[Page 12048]]

with the electronic application should be transmitted via fax, using
Form HUD-96011, Facsimile Transmittal as the cover page to the
facsimile. The Form HUD-96011 is found in the electronic application
package. Co-Sponsors should use the Form HUD-96011 provided by the
Sponsor that is submitting the electronic application. The submitting
Sponsor should fill in the SF 424 form prior to giving the Form 96011
to the Co-Sponsors. By following these directions, the Form HUD-96011
will be pre-populated with the submitting Sponsor's organizational
information exactly as the submitting Sponsor has provided it on the
electronic application. In addition, HUD will be using the unique
identifier associated to the downloaded application package as a means
of matching the faxes submitted with applications received via
Grants.gov. The Facsimile Transmittal form also has space to provide
the number of pages being faxed and information on the type of
document. Co-Sponsors or the submitting applicant can insert the
document name in the space provided labeled Program Component and
should ensure that the form that is used is the cover sheet to the
facsimile transmittal.
Do not insert any additional or other cover pages as it will cause
problems in electronically matching the pieces of the application.

V. Application Review Information

A. Criteria

Policy Priorities. HUD encourages applicants to undertake specific
activities that will assist the Department in implementing its policy
priorities and which help the Department achieve its strategic goals
for FY2006. Refer to the General Section for information regarding
HUD's Strategic Goals and Policy Priorities. For the Section 811
program, applicants who include work activities that specifically
address the policy priorities of encouraging accessible design features
by incorporating visitability standards and universal design, ending
chronic homelessness, removing barriers to affordable housing,
promoting energy efficiency in design and operations, and expanding
training and employment opportunities for low and very low-income
persons and business concerns (Section 3 requirements) will receive
additional points. A Notice pertaining to the removal of barriers to
affordable housing was published in the Federal Register and may be
downloaded from the HUD website at
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
Rating Factors. HUD will rate applications that successfully
complete technical processing using the Rating Factors set forth below
and in accordance with the application submission requirements in this
NOFA. The maximum number of points an application may receive under
this program is 102. This includes two (2) RC/EZ/EC-II bonus points, as
described in the General Section of the SuperNOFA and Section V.A.6 below.
1. Rating Factor 1: Capacity of the Applicant and Relevant
Organizational Staff (28 Points). This factor addresses the extent to
which you have the organizational resources to successfully implement
the proposed activities in a timely manner. Submit information
responding to this factor in accordance with Application Submission
Requirements in Exhibits 3(a), 3(b), 3(e), 5 and 6 of Section IV.B. of
this NOFA. In rating this factor, HUD will consider the extent to which
your application demonstrates your ability to develop and operate the
proposed housing on a long-term basis, considering the following:
a. (13 points) The scope, extent, and quality of your experience in
providing housing or related services to those proposed to be served by
the project and the scope of the proposed project (i.e., number of
units, services, relocation costs, development, and operation) in
relationship to your demonstrated development and management capacity
as well as your financial management capability.
b. (10 points) The scope, extent, and quality of your experience in
providing housing or related services to minority persons or minority
families and your ties to the community at large and to the minority
and disability communities in particular.
(1) (5 points) The scope, extent, and quality of your experience in
providing housing or related services to minority persons or families.
(2) (5 points) The scope, extent, and quality of your ties to the
community at large and to the minority and disability communities in
particular.
To earn the maximum number of points under subcriteria (b)(1)
above, you must describe significant previous experience in providing
housing and/or supportive services to minorities generally and to
minority persons with disabilities, in particular. For the purpose of
this competition, ``significant previous experience'' means that the
previous housing assistance or related services to minorities, i.e.,
the percentage of minorities being provided housing or related services
in your current developments, was equal to or greater than the
percentage of minorities in the housing market area where the previous
housing or services occurred. To earn the maximum number of points
under subcriteria (b)(2) above, you should submit materials that
demonstrate your efforts to make housing available to the community at
large and the minority and disability communities in particular and
your relationships over time with the community, including the minority
and disability communities. Examples of documents that may be submitted
to earn the maximum number of points under subcriteria (b)(2), include
letters of support from community leaders (including minority and
disability community leaders) that give information about applicant's
relationship over time with the community (including the minority and
disability community). You may also submit copies of your affirmative
marketing plan and the advertising/outreach materials you utilize to
attract minority communities (including limited English proficient
communities), disabled community and the community at large. Regarding
your advertising/outreach materials, you should identify when
advertising/outreach materials are circulated, whom they are circulated
to, where they are circulated, and how they are circulated.
Descriptions of other advertising/outreach efforts to the minority
(including limited English proficient communities) and disabled
communities and the dates and places of such advertising/outreach
efforts should also be included.
c. (-3 to -5 points) HUD will deduct (except if the delay was
beyond your control) 3 points if a fund reservation you received under
either the Section 811 program of Supportive Housing for Persons with
Disabilities or the Section 202 program of Supportive Housing for the
Elderly in FY2000 or later has been extended beyond 24 months, 4 points
if beyond 36 months, and 5 points if beyond 48 months. Examples of
delays beyond your control include, but are not limited to, initial
closing delays that are: (1) directly attributable to HUD, (2) directly
attributable to third party opposition, including litigation, and (3)
due to a disaster, as declared by the President of the United States.
d. (-3 to -5 points). HUD will deduct from 3 points to 5 points if
amendment money was required in connection with a fund reservation you
received under either the Section 202 Program of Supportive Housing for
the Elderly or the Section 811 Program of Supportive Housing for
Persons with

[[Page 12049]]

Disabilities in FY 2001 or later based on the following.
(1) (-3 points). The amount of the amendment money required was 25%
or less of the original capital advance amount approved by HUD.
(2) (-4 points). The amount of the amendment money required was
between 26% and 50% of the original capital advance amount approved by HUD.
(3) (-5 points). The amount of the amendment money required was
over 50% of the original capital advance amount approved by HUD.
e. (5 points) You have experience in developing integrated housing
and/or the proposed project will be an integrated housing model (e.g.,
condominium units scattered within one or more buildings or non-
contiguous independent living units on scattered sites).
2. Rating Factor 2: Need/Extent of the Problem (13 Points). This
factor addresses the extent to which there is a need for funding the
proposed activities to address a documented problem in the target area.
Submit information responding to this factor in accordance with
Application Submission Requirements in Exhibits 4(a) and 4(b) of
Section IV.B. of this NOFA. HUD will consider the following in
evaluating this factor:
The extent of the need for the project in the area based on a
determination by the local HUD office. In making this determination,
HUD will consider your evidence of need in the area, as well as other
economic, demographic, and housing market data available to the local
HUD office. The data should include a general assessment of the current
conditions in the market for the type of housing proposed, an estimate
of the demand for additional housing of the type proposed in the
applicable housing market area; as well as, information on the numbers
and types of existing comparable subsidized housing for persons with
disabilities, current occupancy in such housing and recent market
experience, comparable subsidized housing for persons with disabilities
under construction or for which fund reservations have been issued,
and, in accordance with an agreement between HUD and RHS, comments from
RHS on the demand for additional comparable subsidized housing and the
possible harm to existing projects in the same housing market area. The
Department also will review more favorably those applications which
establish a connection between the proposed project and the community's
Analysis of Impediments to Fair Housing Choice (AI) or other planning
document that analyzes fair housing issues and is prepared by a local
planning or similar organization. You must show how the proposed
project will address an impediment to fair housing choice described in
the AI or meet a need identified in the other type of planning document.
If a determination has been made that there is sufficient
sustainable long-term demand for additional supportive housing for
persons with disabilities in the area to be served, the project is to
be awarded 10 points. If not, the project is to be awarded 0 points. No
other point values are allowed.
3. Rating Factor 3: Soundness of Approach (42 Points). This factor
addresses the quality and effectiveness of your proposal, the extent to
which you involved persons with disabilities, including minority
persons with disabilities, in the development of the application and
will involve them in the development and operation of the project, the
extent to which you coordinated your application with other
organizations, including local independent living centers, with which
you share common goals and objectives and are working toward meeting
these objectives in a holistic and comprehensive manner, whether you
consulted with Continuum of Care organizations to address efforts to
assist persons with disabilities who are chronically homeless as
defined in the General Section, whether the jurisdiction in which your
project will be located has undertaken successful efforts to remove
regulatory barriers to affordable housing, whether you will promote
energy efficiency in the design and operation of the proposed housing,
and your plans to expand economic opportunities for low and very low-
income persons as well as business concerns (Section 3). There must be
a clear relationship between the proposed design, the proposed
activities, the community's needs and purposes of the program funding
for your application to receive points for this factor. Submit
information responding to this factor in accordance with Application
Submission Requirements in Exhibits 2(d), 3(f), 3(j), 3(k), 3(l), 3(m),
4(c)(i), 4(c)(ii), 4(d)(iii), 4(d)(v), 4(d)(vi), 4(e)(i), 5, and 8(l)
of Section IV.B. of this NOFA. In evaluating this factor, HUD will
consider the following:
a. (14 points) Site approvability--The proximity or accessibility
of the site to shopping, medical facilities, transportation, places of
worship, recreational facilities, places of employment, and other
necessary services to the intended occupants; adequacy of utilities and
streets, and freedom of the site from adverse environmental conditions
(based on site visit for site control projects only); and compliance
with site and neighborhood standards in 24 CFR 891.125(a), (d), and (e)
and 24 CFR 891.320. Sites where amenities are accessible other than by
project residence or private vehicle will be rated more favorably;
b. (-1 point) One or more of your proposed sites is not
permissively zoned for the intended use.
c. (10 points) The suitability of the site from the standpoints of
promoting a greater choice of housing opportunities for minorities and
persons with disabilities and affirmatively furthering fair housing. In
reviewing this criterion, HUD will assess whether the site meets the
site and neighborhood standards at 24 CFR 891.125(b) and (c) by
examining relevant data in your application or in the local HUD office.
If appropriate, HUD may visit the site.
(1) The site will be deemed acceptable if it increases housing
choice and opportunity by expanding housing opportunities in non-
minority neighborhoods (if located in such a neighborhood). The term
``non-minority area'' is defined as one in which the minority
population is lower than 10 percent. If the site will be in a minority
neighborhood, the site will be deemed acceptable if it contributes to
the revitalization of and reinvestment in the minority neighborhood,
including improvement of the level, quality and affordability of
services furnished to minority persons with disabilities. You should
refer to the Site and Neighborhood Standards provisions of the
regulations governing the Section 811 Supportive Housing Program (24
CFR 891.125(b) and (c)) when considering sites for your projects.
(2) For the purpose of this competition, the term ``minority
neighborhood (area of minority concentration)'' is defined as one where
any one of the following statistical conditions exists:
(a) The percentage of persons of a particular racial or ethnic
minority is at least 20 points higher than the minority's or
combination of minorities' percentage in that housing market as a whole;
(b) The neighborhood's total percentage of minority persons is at
least 20 points higher than the total percentage of minorities for the
housing market area as a whole; or
(c) In the case of a metropolitan area, the neighborhood's total
percentage of minority persons exceeds 50 percent of its population.

[[Page 12050]]

d. (2 points) Site and Neighborhood Standards and Persons with
Disabilities: The extent to which the proposed design of the project
(exterior and interior) and its placement in the neighborhood will meet
the individual needs of the residents and will facilitate their
integration into the surrounding community and promote their ability to
live as independently as possible.
e. (1 point) The extent to which the proposed design incorporates
visitability standards and universal design in the construction or
rehabilitation of the project. Refer to the General Section for further
information.
f. (4 points) Your board is comprised of persons with disabilities.
g. (3 points) You involved persons with disabilities (including
minority persons with disabilities) in the development of the
application, and will involve persons with disabilities (including
minority persons with disabilities) in the development and operation of
the project.
h. (2 points) The extent to which you coordinated your application
with other organizations (including local independent living centers; a
list of such can be obtained from the local HUD office) that will not
be directly participating in your project, but with which you share
common goals and objectives and are working toward meeting these goals
and objectives in a holistic and comprehensive manner.
i. (1 point) You consulted with the Continuum of Care organizations
in the community in which your proposed project will be located and
have developed ways in which the proposed project will assist persons
with disabilities who have been experiencing chronic homelessness
become more productive members of society. Refer to the General Section
for further information.
j. (2 points) The extent to which the jurisdiction in which your
project will be located has undertaken successful efforts to remove
regulatory barriers to affordable housing. (NOTE: To receive up to 2
points, the applicant must have submitted the optional Form HUD-27300,
Questionnaire for HUD's Initiative on Removal of Regulatory Barriers,
AND provided URL references or submitted the required documentary evidence.)
k. (1 point) The extent to which you will promote energy efficiency
in the design and operation of the proposed housing. (NOTE: Optional,
but to receive the 1 point, the applicant must have adequately
addressed their plans to promote energy efficiency in the design and
operation of the proposed project.) Refer to Section III.C.3.k. of this
NOFA.
l. (2 points). The extent to which you have described your plans
for expanding economic opportunities for low and very low-income
persons (provisions of Section 3). NOTE: To receive up to 2 points, the
applicant must have adequately addressed the following in Exhibit 3(m)
of the application. Refer to the General Section for further information.
(1) (1 point). Provide opportunities to train and employ low and
very low-income residents of the project area.
(2) (1 point). Award substantial contracts to persons residing in
the project area.
4. Rating Factor 4: Leveraging Resources (5 Points). This factor
addresses your ability to secure other funding sources and community
resources that can be combined with HUD's program resources to achieve
program purposes. Submit information responding to this factor in
accordance with Application Submission Requirements in Exhibits 3(a),
3(b), 3(c), 3(d), 3(e), and 5(f) of Section IV.B. of this NOFA.
a. (0 point). The application contains general support and/or
written evidence of firm commitments towards the development and
operation of the proposed project (including, financial assistance,
donation of land, provision of services, etc.) from other funding
sources (e.g., private local community and government sources) where
the dollar value totals 5% or less of the capital advance amount as
determined by HUD.
b. (1 point). The application contains written evidence of firm
commitments towards the development and operation of the proposed
project (including, financial assistance, donation of land, provision
of services, etc.) from other funding sources (e.g., private local
community and government sources) where the dollar value totals between
6% and 10% of the capital advance amount as determined by HUD.
c. (2 points). The application contains written evidence of firm
commitments towards the development and operation of the proposed
project (including, financial assistance, donation of land, provision
of services, etc.) from other funding sources (e.g., private local
community and government sources) where the dollar value totals between
11% and 15% of the capital advance amount as determined by HUD.
d. (3 points). The application contains written evidence of firm
commitments towards the development and operation of the proposed
project (including, financial assistance, donation of land, provision
of services, etc.) from other funding sources (e.g., private local
community and government sources) where the dollar value totals between
16% and 20% of the capital advance amount as determined by HUD.
e. (4 points). The application contains written evidence of firm
commitments towards the development and operation of the proposed
project (including, financial assistance, donation of land, provision
of services, etc.) from other funding sources (e.g., private local
community and government sources) where the dollar value totals between
21% and 25% of the capital advance amount as determined by HUD.
f. (5 points). The application contains written evidence of firm
commitments towards the development and operation of the proposed
project (including, financial assistance, donation of land, provision
of services, etc.) from other funding sources (e.g., private local
community and government sources) where the dollar value totals over
25% of the capital advance amount as determined by HUD.
5. Rating Factor 5: Achieving Results and Program Evaluation (12
Points). This factor reflects HUD's goal to embrace high standards of
ethics, management and accountability and, as such, emphasizes HUD's
commitment to ensuring that you keep the promises made in your
application. This factor requires that you clearly identify the
benefits or outcomes of your project and develop an evaluation plan to
measure performance, which includes what you are going to measure, how
you are going to measure it, and the steps you will have in place to
make adjustments to your project development timeline should you not be
able to achieve any of the major milestones. Completion of Exhibit
8(j), Program Outcome Logic Model, will assist you in completing your
response to this rating factor. This rating factor also addresses the
extent to which your project will implement practical solutions that
result in residents achieving independent living, economic empowerment,
educational opportunities and improved living environments. Finally,
this factor addresses the extent to which the long-term viability of
your project will be sustained for the duration of the 40-year capital
advance period. Submit information responding to this factor in
accordance with Application Submission Requirements in Exhibits 3(e),
3(g), 3(h), 3(i), 6(b), and 8(k) of Section IV.B. of this NOFA.
a. (5 points) The extent to which your project development timeline
is indicative of your full understanding of the development process and
will,

[[Page 12051]]

therefore, result in the timely development of your project.
b. (2 points) The extent to which your past performance evidences
that the proposed project will result in the timely development of the
project. Evidence of your past performances could include the
development of previous construction projects, including but not
limited to Section 202 or Section 811 projects.
c. (2 points) The extent to which your project will implement
practical solutions that will result in assisting residents in
achieving independent living, economic empowerment, educational
opportunities, and improved living environments (e.g., activities that
will improve computer access, literacy and employment opportunities).
d. (3 points) The extent to which you demonstrated that your
project will remain viable as housing with the availability of
supportive services for very low income persons with disabilities for
the 40-year capital advance period.
6. Bonus Points (2 bonus points) Location of proposed site in an
RC/EZ/EC-II area, as described in the General Section. Submit the
information responding to the bonus points in accordance with the
Application Submission Requirements in Exhibit 8(i) of Section IV.B. of
this NOFA.
B. Reviews and Selection Process: 1. Review for Curable
Deficiencies. Upon receipt of the application by HUD staff, HUD will
screen all applications to determine if there are any curable
deficiencies. For applicants receiving a waiver to submit a paper
application, submitting fewer than the required original and four
copies of the application is not a curable deficiency and will cause
your application to be considered non-responsive to the NOFA and
returned to you. A curable deficiency is a missing Exhibit or portion
of an Exhibit that will not affect the rating of the application. Refer
to the General Section for additional information regarding procedures
for corrections to deficient applications. The following is a list of
the only deficiencies that will be considered curable in a Section 811
application:

------------------------------------------------------------------------
Exhibit Description
------------------------------------------------------------------------
1...................................... Form 92016-CA (Application
Form)*.
2(a)................................... Articles of Incorporation*.
2(b)................................... By-laws*.
2(c)................................... IRS tax exemption ruling*.
4(d)(i)................................ Evidence of site control.
4(d)(ii)............................... Evidence site is free of
limitations, restrictions or
reverters.
4(d)(iv)............................... Evidence of compliance with URA
site notification requirement.
4(d)(vii).............................. Phase I ESA.
4(d)(viii)............................. Asbestos Statement or Survey.
4(d)(ix)............................... Letter to the State/Tribal
Historic Preservation Officer
(SHPO/THPO) and a statement
that the SHPO/THPO failed to
respond OR the letter from the
SHPO/THPO.
4(d)(x)................................ Willingness to seek an
alternate site.
4(d)(xi)............................... Exception to project size
limit.
4(e)(ii)............................... Steps undertaken to identify
site.
4(e)(iv)............................... Status of the sale of the site.
4(e)(v)................................ Whether the site would involve
relocation.
5...................................... Supportive Services Plan.
7...................................... Relocation.
8(a)................................... Standard Form 424, Application
for Federal Assistance, Letter
sent to the State Point of
Contact (SPOC)*.
8(b)................................... Standard Form 424 Supplement,
Survey on Ensuring Equal
Opportunity for Applicants
Standard Form LLL, Disclosure
of Lobbying Activities (if
applicable).
8(c)................................... Form HUD-2880, Applicant/
Recipient Disclosure/Update
Report.
8(d)................................... Form HUD-2991, Certification of
Consistency with Consolidated
Plan.
8(e)................................... Form HUD-92041, Sponsor's
Conflict of Interest
Resolution.
8(f)................................... Form HUD-92042, Sponsor's
Resolution for Commitment to
Project*.
8(g)................................... Form HUD-92043, Supportive
Services Certification.
8(i)................................... ...............................
------------------------------------------------------------------------

The local HUD office will notify you in writing if your application
is missing any of the above exhibits or portions of exhibits and will
provide you with a specified deadline to submit the information
required to cure the noted deficiencies. The items identified by an
asterisk (*) must be dated on or before the application submission
date. If an Exhibit or portion of an Exhibit listed above as curable is
not discovered as missing until technical processing, HUD will provide
you with a deadline to cure the deficiency.
2. Rating. HUD will review and rate your application in accordance
with the Reviews and Selection Process in the General Section except as
described in ``3. Appeal Process'' below. Your application will be
either rated or technically rejected at the end of technical review. If
your application meets all program eligibility requirements after
completion of technical review, it will be rated according to the
rating factors in Section V.A. above.
3. Appeal Process. HUD will not reject your application based on
technical review without notifying you of the rejection with all the
reasons for rejection and providing you an opportunity to appeal. You
will have 14 calendar days from the date of HUD's written notice to
appeal a technical rejection to the local HUD office. In HUD's review
of any appeal, it should be noted that in conformance with its
regulations at 24 CFR part 4, subpart B, HUD will not consider any
unsolicited information that you, the applicant, may want to provide.
The local HUD office will make a determination on any appeals before
making its selection recommendations.
4. Ranking and Selection Procedures. Applications that have a total
base score of 75 points or more (without the addition of RC/EC/EZ-II
bonus points) and meet all of the applicable threshold requirements in
the General Section and this NOFA will be eligible for selection and
will be placed in rank order in two categories; Category A and Category
B. Category A will consist of approvable applications that contain
acceptable evidence of control of all proposed sites and all proposed
sites have been found approvable. Category B will consist of the
following approvable applications: (a) Those that were submitted with
identified sites; (b) those that were submitted with evidence of site
control where the evidence and/or any of the proposed sites were found
unapprovable provided you indicate your willingness to locate another
site(s) should the proposed site(s) be found unapprovable; and (c)
those that were submitted with a combination of sites under control and
identified sites. Each HUD Multifamily Program Center will select
applications, after adding any bonus points for RC/EC/EZ-II, based on
rank order, from Category A first that most closely approximates the
capital advance authority available in its allocation. If capital
advance authority remains after selecting all approvable applications
from Category A, each HUD Multifamily Program Center shall then select
applications, in rank order, from Category B that most closely

[[Page 12052]]

approximates the capital advance authority remaining in its allocation.
HUD Multifamily Program Centers will not skip over any applications in
order to select one based on the funds remaining. After making the
initial selections from the applicable category, however, HUD
Multifamily Program Centers may use remaining available funds to select
the next rank-ordered application in that category by reducing the
number of units by no more than 10 percent, rounded to the nearest
whole number, provided the reduction will not render the project
unfeasible. For this purpose, however, HUD will not reduce the number
of units in projects of five units or less.
After the HUD Multifamily Program Centers have funded all possible
projects based on the process above, residual funds from all HUD
Multifamily Program Centers within each Multifamily Hub will be
combined. First, these funds will be used to restore units to projects
reduced by HUD Multifamily Program Centers based on the above
instructions. Second, additional approvable applications within each
Multifamily Hub will be selected in Hub-wide rank order, first from
Category A, and if sufficient funds remain, from Category B, with only
one application selected per HUD Multifamily Program Center. More than
one application may be selected per HUD Multifamily Program Center if
there are no approvable applications in other HUD Multifamily Program
Centers within the Multifamily Hub. This process will continue until
there are no more approvable applications within the Multifamily Hub
that can be selected with the remaining funds. Applications may not be
skipped over to select one based on funds remaining. However, the
Multifamily Hub may use any remaining residual funds to select the next
rank-ordered application in the applicable category by reducing the
number of units by no more than 10 percent rounded to the nearest whole
number, provided the reduction will not render the project infeasible
or result in the project being less than 5 units.
Funds remaining after the Multifamily Hub selection process is
completed will be returned to Headquarters. HUD Headquarters will use
these residual funds first to restore units to projects reduced by HUD
Multifamily Program Center or Multifamily Hub as a result of the
instructions for using their residual funds. Second, HUD Headquarters
will use these funds for selecting applications based on HUD Program
Centers' rankings, beginning with the highest rated application
nationwide in Category A. Only one application will be selected per HUD
Multifamily Program Center in Category A from the national residual
amount. Headquarters may skip over a higher rated Category A
application to ensure that only one application is selected from each
HUD Multifamily Program Center. This process will continue until the
remaining available funds are used to select Category A applications,
to the maximum extent possible. If all Category A applications are
selected, Category B applications will then become eligible for
selection in rank order, beginning with the highest rated application.
Only one Category B application per HUD Multifamily Program Center will
be selected from the remaining national residual amount. Headquarters
may skip over a higher rated Category B application in order to ensure
that only one application is selected from each HUD Multifamily Program
Center. This process will continue until the remaining available funds
are used to select approvable applications. If there are no approvable
applications in Category A in other HUD Multifamily Program Centers,
then the next highest rated application in Category B in another HUD
Multifamily Program Center will be selected.
5. HUD Error. In the event HUD commits an error that, when
corrected, would have resulted in the selection of an otherwise
eligible applicant during the funding round of this NOFA, HUD may
select that applicant when sufficient funds become available.

VI. Award Administration Information

A. Award Notices

1. Agreement Letter. If you are selected to receive a Section 811
fund reservation, you will receive an Agreement Letter that stipulates
the terms and conditions for the Section 811 fund reservation award as
well as the submission requirements following the fund reservation
award. The duration of the fund reservation award for the capital
advance is 18 months from the date of issuance of the fund reservation.
Immediately upon your acceptance of the Agreement Letter, you are
expected to begin work towards the submission of a Firm Commitment
Application, which is the next application submission stage. You are
required to submit a Firm Commitment Application to the local HUD
office within 180 days from the date of the Agreement Letter. Initial
closing of the capital advance and start of construction of the project
are expected to be accomplished within the duration of the fund
reservation award. Final closing of the capital advance is expected to
occur no later than six months after completion of project construction.
2. Non-selection Letter. If your application is approvable but
unfunded due to insufficient funds or receives a rating that is below
the minimum threshold score established for funding eligibility, you
will receive a letter to this effect.
3. Debriefing. Refer to the General Section for further information
regarding debriefings except that the request must be made to the
Director of Multifamily Housing in the appropriate local HUD office.

B. Administrative and National Policy Requirements

1. Ensuring the Participation of Small Businesses, Small
Disadvantaged Businesses, and Women-Owned Businesses. Although the
Section 811 program is not subject to the provisions of 24 CFR 85.36(e)
as described in the corresponding paragraph in the General Section you
are required to comply with Executive Order 12432, Minority Business
Enterprise Development and Executive Order 11625, Prescribing
Additional Arrangements for Developing and Coordinating a National
Program for Minority Business Enterprise as they relate to the
encouragement of HUD grantees to utilize minority business enterprises.
2. Acquisition and Relocation. You must comply with the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970, as amended (49 CFR part 24 and 24 CFR part 891.155(e)) (URA),
which covers the acquisition of sites, with or without existing
structures, and with 24 CFR 8.4(b)(5) of the Section 504 regulations
which prohibits discrimination based on disability in determining the
site or location of a federally-assisted facility. However, you are
exempt from complying with the site acquisition requirements of the URA
if you do not have the power of eminent domain and prior to entering
into a contract of sale, option to purchase or any other method of
obtaining site control, you inform the seller of the land in writing:
(1) That you do not have the power of eminent domain and, therefore,
you will not acquire the property if negotiations fail to result in an
amicable agreement, and (2) of the estimate of the fair market value of
the property. An appraisal is not required to meet this requirement;
however, your files must include an explanation (with reasonable
evidence), of the basis for the estimate. Evidence of compliance with
this advance notice requirement must be included in Exhibit 4(d)(iv) of
your application.

[[Page 12053]]

3. Flood Disaster Protection Act of 1973 and Coastal Barriers
Resources Act. You must comply with the requirements under the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4001-4128) and the Coastal
Barrier Resources Act (16 U.S.C. 3601).

C. Reporting

The Program Outcome Logic Model (Form HUD-96010) must be completed
indicating the results achieved against the proposed output goal(s) and
proposed outcome(s) which you stated in your approved application and
agreed upon by HUD. Based on the information you provided in the
Program Outcome Logic Model. These reporting requirements are to be
submitted to HUD as follows:
Program Outcome Logic Model. You, as the Sponsor, and the Owner,
when formed, are required to report annually, beginning from the date
of the Agreement Letter, on the results achieved against the output
goal(s) and outcome(s), which you proposed in the Program Outcome Logic
Model that was submitted in your application. 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.
2. The Regulatory Agreement (Form HUD-92466-CA) requires the Owner
of the Section 811 project to submit an annual financial statement for
the project. This financial statement must be audited by an Independent
Public Accountant who is a Certified Public Accountant or other person
accepted by HUD and filed electronically with HUD's Real Estate
Assessment Center (REAC) through the Financial Assessment Subsystem for
Multifamily Housing (MF-FASS). The submission of annual financial
statements is required throughout the 40-year term of the mortgage.

VII. Agency Contact(s)

Technical Assistance. For technical assistance in downloading an
application package from http://www.grants.gov/Apply, contact the Grants.gov
help desk at 800-518-Grants or by sending an email to
support@grants.gov.
Programmatic Information. For programmatic information, you may
contact the appropriate local HUD office, or Frank Tolliver at HUD
Headquarters at (202) 708-3000 (this is not a toll-free number), or
access the Internet at: http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
Persons with hearing and speech impairments may access
the above number via TTY by calling the toll-free Federal Relay Service
at 800-877-8339.

VIII. Other Information

A. Field Office Workshop. HUD encourages minority organizations and
grassroots organizations (e.g., civic organizations, faith-communities
and grassroots faith-based and other community-based organizations) to
participate in this program and strongly recommends prospective
applicants attend the local HUD office workshop. At the workshops, HUD
will explain application procedures and requirements, as well as
address concerns such as local market conditions, building codes and
accessibility requirements, contamination identification and
remediation, historic preservation, floodplain management, other
environmental requirements, displacement and relocation, zoning, and
housing costs. If you are interested in attending the workshop, make
sure that your name, address and telephone number are on the
appropriate local HUD office's mailing list so that you will be
informed of the date, time and place of the workshop. Persons with
disabilities should call the appropriate local HUD office to assure
that any necessary arrangements can be made to enable their attendance
and participation in the workshop.
If you cannot attend the workshop, call the appropriate local HUD
office if you have any questions regarding the submission of
applications to that particular office and to request any materials
distributed at the workshop.
B. Satellite Broadcast. HUD will hold an information broadcast via
satellite for potential applicants to learn more about the program and
preparation of the application. It is strongly recommended that
potential applicants, especially those who may be applying for Section
811 funding for the first time, tune in to this broadcast, if at all
possible. Copies of the broadcast tapes are also available from the
NOFA Information Center. For more information about the date and time
of the broadcast, you should consult the HUD website at:
http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
C. Related Programs. Section 811 funding for tenant-based
assistance is administered by public housing agencies and nonprofit
organizations through the Mainstream Housing Opportunities for Persons
with Disabilities Program.
D. 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 2502-0462. 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
number. Public reporting burden for the collection of information is
estimated to average 35.92 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. 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 derived.

BILLING CODE 4210-01-C

[[Page 12054]]
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[[Page 12055]]

Continuum of Care (COC) Program

Overview Information

A. Federal Agency Name: Department of Housing and Urban
Development, Office of Community Planning and Development.
B. Funding Opportunity Title: Funding Availability for Continuum of
Care (CoC) Homeless Assistance Programs.
C. Announcement Type: Initial Announcement.
D. Funding Opportunity Number: The Federal Register number is FR-
5030-N-32. The OMB Approval number is pending.
E. Catalog of Federal Domestic Assistance (CFDA) Numbers:
1. 14.235, Supportive Housing Program (SHP)
2. 14.238, Shelter Plus Care (S+C) and
3. 14.249, Section 8 Moderate Rehabilitation Single Room Occupancy
(SRO).
F. Dates: Application Deadline Date: Applications should be
submitted no later than May 25, 2006. Please see Section IV of this
NOFA for application submission and timely receipt requirements.
G. Additional Overview Content Information: 1. Purpose of the
Programs: The purpose of the CoC Homeless Assistance Programs is to
assist homeless persons to move to self-sufficiency and permanent
housing.
2. Available Funds: Approximately $1.2 billion is available for
funding.
3. Eligible Applicants: The program summary chart in Section
III.A.3 identifies the eligible applicants for each of the three
programs under the CoC Homeless Assistance Programs.
4. Match: Matching funds are required from local, state, federal or
private resources.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description

1. Overview. The purpose of the CoC Homeless Assistance Programs is
to reduce the incidence of homelessness in CoC communities by assisting
homeless individuals and families to move to self-sufficiency and
permanent housing. CoCs and their projects that sustain current
successful interventions and advance the goals of ending chronic
homelessness will be scored higher.
2. The authorizing legislation and implementing regulations for all
programs covered by this NOFA are outlined on the chart in Section III.A.3.
3. Changes for 2006. This list includes all major changes to the
CoC NOFA:
a. Chart format--The 2006 CoC application has eliminated many
required narratives and replaced them with tables that gather the same
or similar information. This will reduce the time that CoCs and project
sponsors will need to fill out the application, and it prepares for an
electronic application in 2007. Because of the chart format, there is
no longer a page limit on Exhibit 1. Tables have replaced narratives in
the following areas of Exhibit 1:
(1) The CoC's planning process;
(2) The CoC's past performance in addressing chronic homelessness,
and long-term strategy for ending chronic homelessness;
(3) The CoC's coordination with other state and local plans;
(4) The community's methods for conducting the unsheltered count,
collecting annual data for the Housing Inventory Chart and Populations
and Subpopulations Chart, and describing the basis for its
determination of unmet need;
(5) The CoC's project review and selection process; and
(6) The CoC's progress and strategies for implementation of an HMIS
in the community.
b. The 2006 application has consolidated Exhibits 2, 2R, 3, 3R, and
4 into a single Exhibit 2. This streamlined format will make it easier
for project sponsors to complete the required forms.
c. Exhibit 1 has been reorganized into four major divisions: Part
I: CoC Organizational Structure, Part II: CoC Housing and Service
Needs, Part III: CoC Strategic Planning, and Part IV: CoC Performance.
Scoring of these sections will allocate 8, 12, 10, and 18 points to
each part, respectively.
d. Checkboxes regarding the frequency of meetings in the new
``Groups and Meetings Chart'' in Exhibit 1 (CoC-C) replace the required
listing of all CoC meeting dates.
e. A new chart in Exhibit 1, ``CoC Governing Process'' focuses on
the planning and decision-making structure of the CoC. HUD has
requested that Congress pass legislation to consolidate the three CoC
programs, and additional governance is intended to help CoCs implement
this new legislation.
f. The Project Leveraging Chart (CoC-S) in Exhibit 1 chart requires
that CoCs enter a single number--the total leveraging amount requested
by all projects on the priority chart. Each project will now submit
specific leveraging amounts and details in Exhibit 2.
g. The Chronic Homeless Progress Chart (CoC-V) in Exhibit 1
emphasizes HUD's goal to end chronic homelessness by asking CoCs to
provide information on funding of beds for the chronically homeless.
h. The CoC 10-Year Plan Chart in Exhibit 1 eliminates narrative
discussion of long-term planning and replaces it with a chart
containing five HUD/national objectives. The chart is called the CoC
10-Year Plan, Objectives, and Action Steps Chart. CoCs will list their
action steps and measurable achievements for 1, 5, and 10 years with
respect to these objectives.
i. The Achievements Chart (CoC-U) in Exhibit 1 requires CoCs to
report on their achievements with respect to their 2005 goals. In the
2007 application, CoCs will be reporting on their achievements with
respect to the five HUD/national objectives and action steps contained
in the 2006 application.
j. The CoC Section 3 Employment Policy Chart (CoC-AB) in Exhibit 1
requires CoCs to identify the employment policies of projects in the
Continuum to whom Section 3 of the Housing and Urban Development Act of
1968 applies.
k. Housing Emphasis points will be calculated using Shelter Plus
Care renewal amounts as well as the housing activities in transitional
and other permanent housing requests.
l. HUD has streamlined this NOFA and removed those portions not
immediately pertaining to the selection process. These include: program
requirements upon conditional award (relating to coordination of
mainstream resources and prevention strategies/discharge policies);
renewals of Shelter Plus Care SRO projects expiring in 2006; and
information about Annual Progress Reports. These sections are now
located on the HUD web site at: http://www.hud.gov.
m. The ``Questions and Answers Supplement'' contains additional
information and should be thoroughly reviewed. It is now available on
the web at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.
4. Developing and Coordinating CoC Systems: Developing a CoC system
should be an inclusive process that brings together participants from
the state, local, private and nonprofit sectors to reduce homelessness.
This NOFA emphasizes HUD's determination to integrate and align plans,
including U.S. Interagency Council on Homelessness-sponsored
jurisdictional state and city ten-year plans (jurisdictional ten-year
plans) and Consolidated Plans, into the CoC plans. These plans serve as
the vehicle for a community to comprehensively identify each of its
needs and to coordinate a plan of action for addressing them. For a
community to successfully address the complex and interrelated problems

[[Page 12056]]

related to homelessness, the community must marshal its varied
resources--community and economic development resources, social service
resources, business, health care, philanthropy, law enforcement, and
housing and homeless assistance resources--and use them in a
coordinated and effective manner.
5. CoC Components. A CoC system consists of five basic components,
as follows:
a. A system of outreach, engagement, and assessment for determining
the needs and conditions of an individual or family who is homeless,
and necessary support to identify, prioritize, and respond to persons
who are chronically homeless;
b. Emergency shelters with appropriate supportive services to help
ensure that homeless individuals and families receive adequate
emergency shelter and referral to necessary service providers or
housing search counselors;
c. Transitional housing with appropriate supportive services to
help homeless individuals and families prepare to make the transition
to permanent housing and independent living; and
d. Permanent housing, or permanent supportive housing, to help meet
the long-term needs of homeless individuals and families.
e. Prevention strategies play an integral role in a community's
plan to eliminate homelessness by effectively intervening for persons
in public systems--e.g., corrections, foster care, mental health, and
other institutions--so that they do not enter the homeless system. By
law, prevention activities are ineligible activities in the three
programs for which funds are awarded in this competition but are
eligible for funding under the Emergency Shelter Grants block grant
program.
6. CoC Planning Process. A CoC system is developed through a
community-wide or region-wide process involving nonprofit organizations
(including those representing persons with disabilities), government
agencies, public housing agencies, community and faith-based
organizations, other homeless providers, service providers, housing
developers, private health care organizations, businesses and business
associations, law enforcement and corrections agencies, school systems,
private funding providers, and homeless or formerly homeless persons. A
CoC system should address the specific needs of each homeless
subpopulation: those experiencing chronic homelessness, veterans,
persons with serious mental illnesses, persons with substance abuse
issues, persons with HIV/AIDS, persons with co-occurring diagnoses (may
include diagnoses of multiple physical disabilities or multiple mental
disabilities or a combination of these two types), victims of domestic
violence, youth, and any others. To ensure that the CoC system
addresses the needs of homeless veterans, it is particularly important
that you involve veteran service organizations with specific experience
in serving homeless veterans.
7. CoC Funding is provided through the programs briefly described
below. Please refer to the CoC Homeless Assistance Programs Chart in
Section III.A.3 for a more detailed description of each program:
a. The Supportive Housing Program (SHP) provides funding for the
development of transitional and permanent supportive housing and
services that help homeless persons transition from homelessness to
living as independently as possible. Some services are also funded to
assist in achieving the goal of self-sufficiency.
b. The Shelter Plus Care (S+C) Program provides funding for rental
assistance and requires grantees to identify service dollars. This
gives applicants flexibility in devising appropriate housing and
supportive services for homeless persons with disabilities.
c. The Section 8 Moderate Rehabilitation Single Room Occupancy
(SRO) Program provides rental assistance on behalf of homeless
individuals in connection with the moderate rehabilitation of SRO dwellings.
8. Glossary of Terms. a. Applicant. An entity that applies to HUD
for funds. See the CoC Homeless Assistance Programs Chart in Section
III.A.3 for a list of entities that are eligible. An applicant must
submit a SF-424. If selected for funding, the applicant becomes the
grantee and is responsible for the overall management of the grant,
including drawing grant funds and distributing them to project
sponsors. The applicant is also responsible for supervision of project
sponsor compliance with grant requirements. The applicant may also be a
project sponsor.
b. Applicant Certification. The form, required by law, in which an
applicant certifies that it will adhere to certain statutory
requirements, such as the Civil Rights Act of 1964.
c. Chronically Homeless Person. An unaccompanied homeless
individual with a disabling condition who has either been continuously
homeless for a year or more OR has had at least four (4) episodes of
homelessness in the past three (3) years. A disabling condition is
defined as ``a diagnosable substance use disorder, serious mental
illness, developmental disability, or chronic physical illness or
disability, including the co-occurrence of two or more of these
conditions.'' In defining the chronically homeless, the term
``homeless'' means ``a person sleeping in a place not meant for human
habitation (e.g., living on the streets) or in an emergency homeless
shelter.''
d. Consolidated Plan. A long-term housing and community development
plan developed by state and local governments and approved by HUD. The
Consolidated Plan contains information on homeless populations and
should be coordinated with the CoC plan. It can be a source of
information for the Unmet Need sections of the Housing Activities
Chart. The plan contains both narratives and maps, the latter developed
by localities using software provided by HUD.
e. Consolidated Plan Certification. The form, required by law, in
which a state or local official certifies that the proposed activities
or projects are consistent with the jurisdiction's Consolidated Plan
and, if the applicant is a state or unit of local government, that the
jurisdiction is following its Consolidated Plan.
f. Continuum of Care (CoC). A collaborative funding approach that
helps communities plan for and provide a full range of emergency,
transitional, and permanent housing and service resources to address
the various needs of homeless persons.
g. Continuum of Care Hold Harmless Amount. This is the total of the
one-year amount of all SHP projects eligible for renewal. CoCs shall
receive the higher of: (1) The preliminary pro rata need (PRN) or (2)
the CoC hold harmless amount. CoCs receiving the CoC hold harmless
amount have the opportunity to reallocate their PRN funds in order to
create new permanent supportive housing projects.
h. Current Inventory. A complete listing of the community's
existing beds and supportive services.
i. Homeless Management Information Systems (HMIS). An HMIS is a
computerized data collection application designed to capture client-
level information over time on the characteristics and service needs of
men, women, and children experiencing homelessness, while also
protecting client confidentiality. It is designed to aggregate client-
level data to generate an unduplicated count of clients served within a
community's system of homeless services. An HMIS may also cover a
statewide or regional area, and include several CoCs. The HMIS can

[[Page 12057]]

provide data on client characteristics and service utilization.
j. Homeless Person means a person sleeping in a place not meant for
human habitation or in an emergency shelter; and a person in
transitional housing for homeless persons who originally came from the
street or an emergency shelter. For a more detailed discussion, see the
Questions and Answers Supplement available on the web at http://www.hud.gov/
offices/adm/grants/fundsavail.cfm. The programs covered by this
NOFA are not for populations who are at risk of becoming homeless.
k. NOFA. Notice of Funding Availability, published in the Federal
Register to announce available funds and application requirements.
l. Private Nonprofit Status. Private nonprofit status is documented
by submitting either: (1) A copy of the Internal Revenue Service (IRS)
ruling providing tax-exempt status under Section 501(c)(3) of the IRS
Code; or (2) documentation showing that the applicant is a certified
United Way agency; or (3) a certification from a designated official of
the organization that no part of the net earnings of the organization
inures to the benefit of any member, founder, contributor, or
individual; that the organization has a voluntary board; that the
organization practices nondiscrimination in the provision of
assistance; and that the organization has a functioning accounting
system that provides for each of the following (mention each in the
certification):
(1) Accurate, current and complete disclosure of the financial
results of each federally sponsored project.
(2) Records that identify adequately the source and application of
funds for federally sponsored activities.
(3) Effective control over and accountability for all funds,
property and other assets.
(4) Comparison of outlays with budget amounts.
(5) Written procedures to minimize the time elapsing between the
transfer of funds to the recipient from the U.S. Treasury and the use
of the funds for program purposes.
(6) Written procedures for determining the reasonableness,
allocability and allowability of costs.
(7) Accounting records, including cost accounting records, which
are supported by source documentation.
m. Project Sponsor. The organization that is responsible for
carrying out the proposed project activities. A project sponsor does
not submit a SF-424, unless it is also the applicant. To be eligible to
be a project sponsor, you must meet the same program eligibility
standards as applicants do, as outlined in Section III.A.3, except in
the Sponsor-based rental assistance (SRA) component of the S+C Program.
Eligible sponsors for the SRA component are statutorily precluded from
applying for S+C funding.
n. Public Nonprofit Status. Public nonprofit status is documented
for community mental health centers by including a letter or other
document from an authorized official stating that the organization is a
public nonprofit organization.
o. SF 424. The application cover sheet required to be submitted by
applicants requesting HUD Federal Assistance.
p. Safe Haven. A Safe Haven is a form of supportive housing funded
and administered under the Supportive Housing Program serving hard-to-
reach homeless persons with severe mental illness and other
debilitating behavioral conditions who are on the streets and have been
unwilling or unable to participate in supportive services. Safe Havens
may be transitional supportive housing, or permanent supportive housing
if it has the characteristics of permanent housing and requires
participants to sign a lease.
q. Samaritan Housing Initiative. The Samaritan Initiative (formerly
known as the Permanent Housing Bonus) will be integrated into this NOFA
as part of the larger CoC process and is only for projects serving
exclusively chronically homeless persons. It is 15 percent of a CoC's
preliminary pro rata need amount or $6 million, whichever is less.
Applicants may use no more than 20 percent of this bonus for case
management costs to enable program participants to remain successfully
housed. See Section V.A.2.b(3) for additional information on this subject.
9. Applicant Roles and Responsibilities. An applicant will be
responsible for the overall management and administration of a
particular grant, including drawing down the grant funds from HUD,
distributing them to the project sponsors, overseeing project sponsors,
reporting to HUD, providing performance data to the CoC for community-
level analysis, and collecting information to provide the CoC with
counts of the homeless through HMIS. Applicants can submit applications
for projects on behalf of project sponsors, who will actually carry out
the proposed project activities. Applicants can also carry out their
own projects. In these cases, the applicant is responsible for both
administering and managing a grant (as the grantee) and carrying out
the project activities (as the project sponsor).

II. Award Information

A. Amount Allocated. Approximately $1.2 billion is available for
this CoC competition in FY 2006. Any unobligated funds from previous
CoC competitions or additional funds that may become available as a
result of deobligations or recaptures from previous awards or budget
transfers may be used in addition to FY 2006 appropriations to fund
applications submitted in response to this NOFA. The FY 2006 HUD
Appropriations Act requires HUD to obligate all CoC homeless assistance
funds by September 30, 2008. These funds will remain available for
expenditure for five (5) years following that date. The only exception
is that $20 million will remain available until expended for 10-year
term projects.
1. Distribution of Funds: HUD will not specify amounts for each of
the three programs. Instead, the distribution of funds among the three
programs will depend largely on locally determined priorities and
overall demand.
a. Permanent Housing Requirement. Local priorities notwithstanding,
the FY 2006 HUD Appropriations Act requires that not less than 30
percent of this year's Homeless Assistance Grants (HAG) appropriation,
excluding amounts provided for one-year renewals under the Shelter Plus
Care Program, must be used for permanent housing projects for all
homeless populations.
b. Chronic Homelessness Requirement. The Administration has
established as a policy priority the goal of ending chronic
homelessness. CoCs are strongly encouraged to use the funds available
in this NOFA to target persons experiencing chronic homelessness in
their communities. HUD encourages communities to select projects that
will contribute to the achievement of this important goal. The CoC
strategy to end chronic homelessness is now referred to as the CoC Ten-
Year Plan (see Chart N in Exhibit 1), and the 2006 application adds
annual action plans and performance measures into the plan. CoCs should
integrate their CoC 10-year plans with other plans, including
jurisdictional ten-year plans and applicable Consolidated Plans. To
work towards this goal, HUD is targeting the Samaritan Initiative for
projects that exclusively serve individuals who are experiencing
chronic homelessness. In addition, at least 10 percent of the
appropriation will be awarded to new or renewal, transitional or
permanent housing projects where at least 70 percent of the project's
clients are expected to be chronically homeless (as defined by HUD)
immediately prior to

[[Page 12058]]

entry into the project. Housing projects include: SHP transitional
housing, permanent housing and Safe Havens; S+C; and SRO projects.
Since the housing funding allocation set-aside requirements are
expected to continue in future competitions and may affect project
funding selections, you are strongly encouraged to begin planning for
new housing projects, particularly those serving individuals
experiencing chronic homelessness, and include them as part of your
submission in this competition. See Sections V.B.3.a and V.B.3.b of
this NOFA for additional information on the permanent housing and
chronic homeless requirements.
c. Lower-rated SHP Renewals. HUD reserves the authority to
conditionally select for one year of funding lower-rated eligible SHP
renewal projects that are assigned 40 need points in a CoC application
receiving at least 25 points under the CoC scoring factor that would
not otherwise receive funding for these projects. (See Sections V.A.2.a
and V.A.2.b of this NOFA for information on project rating and
scoring.) Therefore, the projects must receive a minimum score of 65
points. Although these lower-rated SHP renewal projects will have
scored below the otherwise recognized funding line, their funding
allows homeless persons to continue to be served and move towards self-
sufficiency. Not renewing these projects would likely result in the
closure of these projects and displacement of the homeless people being
served.
2. Prioritizing Projects for Funding. Project priority decisions
are best made by members of the local community, including local
government and community and faith-based organizations, which represent
the various economic, housing and social resources within that
community. For example, if HUD has funds available only to award 8 of
10 proposed projects, then it will award funding to the first 8
eligible projects listed, except as may be necessary to achieve the 30
percent overall permanent housing and the 10 percent chronic
homelessness requirements; see Sections V.B.3.a. and V.B.3.b. of this
NOFA for additional information. In such cases, higher priority non-
permanent housing projects may be de-selected to fund lower priority
permanent housing projects and housing projects predominantly serving
those persons experiencing chronic homelessness.
3. Grant Term. See chart in Section III.A.3. of this NOFA for
information on the term of assistance for each of the three CoC
programs covered in this NOFA.

III. Eligibility Information

A. Eligible Applicants

1. Eligible applicants for each program are those identified in the
following chart.
2. Renewal Applicants. As a project applicant, you are eligible to
apply for renewal of a grant only if you have executed a grant
agreement for the project directly with HUD for SHP or S+C programs
under a CoC NOFA. If you are a project sponsor or sub-recipient who has
not signed such an agreement, you are not eligible to apply for renewal
of these projects.

3. Continuum of Care Homeless Assistance Programs
----------------------------------------------------------------------------------------------------------------
Elements Supportive housing Shelter plus care Section 8 SRO
----------------------------------------------------------------------------------------------------------------
Authorizing legislation.............. Subtitle C of Title IV Subtitle F of Title IV Section 441 of the
of the McKinney-Vento of the McKinney-Vento McKinney-Vento
Homeless Assistance Homeless Assistance Homeless Assistance
Act, 42 U.S.C. 11381. Act, 42 U.S.C. 11403. Act, 42 U.S.C. 11401.
Implementing regulations............. 24 CFR part 583........ 24 CFR part 582........ 24 CFR part 882,
subpart H, except that
all persons receiving
rental assistance must
meet the McKinney-
Vento definition of
homelessness.
Eligible applicant(s)................ ? States........ ? States........ ? PHAs
? Units of ? Units of ? Private
general local general local nonprofit
government. government. organizations.
? Special ? PHAs..........
purpose units of
government, e.g. PHAs.
? Private
nonprofit
organizations.
? Community
Mental Health Centers
that are public
nonprofit
organizations.
Eligible components.................. ? Transitional ? Tenant-based ? SRO housing
housing. housing.
? Permanent ? Sponsor-based
housing for disabled housing.
persons only. ? Project-based
housing.
? Supportive ? SRO-based
services not in housing.
conjunction with
supportive housing.
? Safe Havens...
? Innovative
supportive housing.
? Homeless Mngt.
Info. System (HMIS).
Eligible activities See footnotes 1, ? Acquisition... ? Rental ? Rental
2 and 3. ? Rehabilitation assistance. assistance.
? New
construction.
? Leasing.......
? Operating
costs.
? Supportive
services.
Eligible populations See footnote 2.. ? Homeless ? Homeless ? Homeless
individuals and disabled individuals. individuals.
families. ? Homeless
disabled individuals &
their families.
Populations given special ? Homeless Homeless persons who N/A.
consideration. persons with are seriously mentally
disabilities. ill.
? Homeless Have chronic problems
families with children. with alcohol and/or
drugs.
....................... Have AIDS & related
diseases.

[[Page 12059]]

Initial term of assistance........... 2 or 3 years for new 5 years: TRA, SRA, and 10 years.
SHP. PRA without rehab.
1, 2 or 3 years for new 10 years: SRO, and PRA
HMIS. with rehab .
----------------------------------------------------------------------------------------------------------------
Footnote 1: Homeless prevention activities are statutorily ineligible under these programs.
Footnote 2: Persons at risk of homelessness are statutorily ineligible for assistance under these programs.
Footnote 3: Acquisition, construction, rehabilitation, leasing, and operating costs for emergency shelters are
statutorily ineligible for assistance under Shelter Plus Care and Section 8 SRO.

B. Matching (Cost Sharing)

You must match Supportive Housing Program funds provided for
acquisition, rehabilitation, and new construction with an equal amount
of cash from other sources. Since SHP by statute can pay no more than
75 percent of the total operating budget for supportive housing, you
must provide at least a 25 percent cash match of the total annual
operating costs. In addition, for all SHP funding for supportive
services and Homeless Management Information Systems (HMIS) you must
provide a 25 percent cash match. This means that of the total
supportive services budget line item, no more than 80 percent may be
from SHP grant funds. The cash source may be your agency, other Federal
programs, state and local governments, or private resources.
You must match rental assistance provided through the Shelter Plus
Care Program in the aggregate with supportive services. Shelter Plus
Care requires a dollar for dollar match; the recipient's match source
can be cash or in kind.
Documentation of the match requirement must be maintained in the
grantee's financial records on a grant-specific basis.

C. Other

1. Eligible Activities. Eligible activities for the SHP, S+C, and
SRO Programs are outlined in the preceding CoC Homeless Assistance
Programs Chart at Section III.A.3.
2. Threshold Requirements.
a. Project Eligibility Threshold. HUD will review projects to
determine if they meet the following eligibility threshold
requirements. If HUD determines that these standards are not met by a
specific project or activity, the project or activity will be rejected
from the competition.
(1) Applicants and sponsors must meet the eligibility requirements
of the specific program as described in program regulations and provide
evidence of eligibility and appropriate certifications as specified by
the attachments in Section VIII.
(2) The population to be served must meet the eligibility
requirements of the specific program as described in the program
regulations, and the application must clearly establish eligibility of
program participants to be served pertaining to homelessness and
disability status.
(3) The only persons who may be served by new and renewal permanent
housing projects are those who come from the streets, emergency
shelters, or transitional housing who originally came from the streets
or emergency shelter. As participants leave currently operating
projects, participants who meet this new eligibility standard must
replace them.
(4) Projects that involve rehabilitation or new construction must
meet the accessibility requirements of Section 504 of the
Rehabilitation Act of 1973, the design and construction requirements of
the Fair Housing Act and the accessibility requirements of the
Americans with Disabilities Act, as applicable.
(5) The project must be cost-effective, including costs associated
with construction, operations and supportive services with such costs
not deviating substantially from the norm in that locale for the type
of structure or kind of activity.
(6) For those applicants applying for the Innovative component of
SHP, whether or not a project is considered innovative will be
determined on the basis that the particular approach proposed is new
and can be replicated.
(7) Renewal applications should be submitted as part of a CoC
application, and must either be listed on the priority list or
accompanied by a certification from the CoC saying that they have
determined that the project is still needed.
(8) Under the Sponsor-based rental assistance S+C component, an
applicant must subcontract the funding awarded with an eligible
sponsor: a private nonprofit organization or a community mental health
agency established as a public nonprofit organization, that owns or
leases the housing where participants will reside.
(9) For the Section 8 SRO program, only individuals meeting HUD's
definition of homeless are eligible to receive rental assistance.
Therefore, any individual occupying a unit at commencement of the
unit's rehabilitation will not receive rental assistance if they return
to their unit (or any other) upon completion of its rehabilitation.
(10) Applicants agree to participate in a local HMIS system when it
is implemented in their community.
b. Project Quality Threshold. HUD will review projects to determine
if they meet the following quality threshold requirements with clear
and convincing evidence. A S+C or SHP project renewal will be
considered as having met these requirements through its previously
approved grant application unless information to the contrary is
received. The housing and services proposed must be appropriate to the
needs of the program participants and the community. HUD will assess
the following:
(1) The type, scale and general location of the housing fit the
needs of the participants and that the housing is readily accessible to
community amenities.
(2) That all of the proposed participants come from the streets,
homeless shelters or transitional housing for homeless persons.
(3) The type, scale and location of the supportive services fit the
needs of the participants and the mode of transportation to those
services is described.
(4) The specific plan for ensuring clients will be individually
assisted to obtain the benefits of the mainstream health, social
service, and employment programs for which they are eligible is
provided.
(5) How participants are helped to obtain and remain in permanent
housing is described.
(6) How participants are assisted to both increase their incomes
and live independently using mainstream housing and service programs is
described.
(7) Applicants and sponsors must evidence satisfactory performance
for existing grant(s).
c. Project Renewal Threshold. Your local needs analysis process must

[[Page 12060]]

consider the need to continue funding for projects expiring in calendar
year 2007. HUD will not fund competitive renewals out of order on the
priority list except as may be necessary to achieve the 30 percent
overall permanent housing requirement and the 10 percent requirement
for individuals experiencing chronic homelessness requirement. It is
important that SHP renewals and S+C non-competitive renewals meet
minimum project eligibility, capacity and performance standards
identified in this NOFA or they will be rejected from consideration for
either competitive or non-competitive funding.
d. Civil Rights Thresholds: Applicants and the project sponsors
must be in compliance with the threshold requirements of the General
Section.
3. Program Requirements.
a. Projects funded under this NOFA shall operate in a fashion that
complies with applicable civil rights laws and Executive Orders,
including the requirement to Affirmatively Further Fair Housing (AFFH),
and does not deprive any individual of any right protected by the Fair
Housing Act (42 U.S.C. 3601-19), Section 504 of the Rehabilitation Act
of 1973 (29 U.S.C. 794), the Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.), Title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d), Section 109 of Title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5309), or the Age Discrimination Act
of 1975 (42 U.S.C. 6101).
b. Local Resident Employment. To the extent that any housing
assistance (including rental assistance) funded through this NOFA is
used for housing rehabilitation (including reduction and abatement of
lead-based paint hazards, but excluding routine maintenance, repair,
and replacement) or housing construction, then it is subject to section
3 of the Housing and Urban Rehabilitation Act of 1968, and the
implementing regulations at 24 CFR part 135. Section 3, as amended,
requires that economic opportunities generated by certain HUD financial
assistance for housing and community development programs shall, to the
greatest extent feasible, be given to low- and very low-income persons,
particularly those who are recipients of government assistance for
housing, and to businesses that provide economic opportunities for
these persons.
c. Relocation. The SHP, S+C, and SRO programs are subject to the
requirements of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (URA). These requirements
are explained in HUD Handbook 1378, Tenant Assistance, Relocation and
Real Property Acquisition. Also see General Section.
d. Environmental Reviews. All CoC assistance is subject to the
National Environmental Policy Act and applicable related Federal
environmental authorities. Conditional selection of projects under the
CoC Homeless Assistance competition is subject to the environmental
review requirements of 24 CFR 582.230, 583.230 and 882.804(c), as
applicable. The recipient, its project partners and their contractors
may not acquire, rehabilitate, convert, lease (under S+C/TRA where
participants are required to live in a particular structure or area as
described in Section III.C.3.h(3)(a)), repair, dispose of, demolish or
construct property for a project under this CoC NOFA, or commit or
expend HUD or local funds for such eligible activities, until the
responsible entity has completed the environmental review procedures
required by Part 58 and the environmental certification and Request for
Release of Funds (RROF) have been approved or HUD has performed an
environmental review under Part 50 and the recipient has received HUD
approval of the property. The expenditure or commitment of Continuum of
Care assistance or nonfederal funds for such activities prior to this
HUD approval may result in the denial of assistance for the project
under consideration.
e. CoC Geographic Area. In deciding what geographic area you will
cover in your CoC strategy, you should be aware that the single most
important factor in being awarded funding under this competition will
be the strength of your CoC strategy when measured against the CoC
rating factors described in this NOFA. When you determine what
jurisdictions to include in your CoC strategy area, include only those
jurisdictions that are fully involved in the development and
implementation of the CoC strategy.
The more jurisdictions you include in the CoC strategy area, the
larger the pro rata need share that will be allocated to the strategy
area (as described in Section V.B.2.b. of this NOFA). If you are a
rural county, you may wish to consider working with larger groups of
contiguous counties to develop a region-wide or multi-county CoC
strategy covering the combined service areas of these counties. The
areas covered by CoC strategies should not overlap.
f. Expiring/Extended Grants. If your SHP or S+C Program grant will
be expiring in calendar year 2007, or if your S+C Program grant has
been extended beyond its original five-year term and is projected to
run out of funds in FY 2007, you may apply as a renewal under this CoC
NOFA to get continued funding.
g. Participation in Energy Star. In keeping with the
Administration's policy priority of promoting energy efficient housing
while protecting the environment, applicants applying for new
construction or rehabilitation funding, who maintain housing or
community facilities or provide services in those facilities, are
encouraged to promote energy efficiency and are specifically encouraged
to purchase and use Energy Star-labeled products. All applicants must
complete the questions on the Energy Star Chart (Chart CoC-AA) in
Exhibit 1. Refer to the General Section for detailed information about
this requirement.
h. Program-Specific Requirements. Please be advised that where an
applicant for the SHP funding is a state or unit of general local
government that utilizes one or more nonprofit organizations to
administer the homeless assistance project(s), administrative funds
provided as part of the SHP grant must be passed on to the nonprofit
organization(s) in proportion to the administrative burden borne by
them for the SHP project(s). HUD will consider states or units of
general local government that pass on at least 50 percent of the
administrative funds made available under the grant as having met this
requirement. This requirement does not apply to either the SRO Program,
since only PHAs administer the SRO rental assistance, or to the S+C
Program, since paying the costs associated with the administration of
these grants is ineligible by regulation.
HUD will not award funds to rehabilitate leased property. In
addition, SHP funds may not be used to lease units or structures owned
by the project sponsor, the selectee, or their parent organizations.
This includes organizations that are members of a general partnership
where the general partnership owns the structure.
(1) SHP--New Projects:
(a) Please note that the grant term for new SHP projects is two (2)
or three (3) years.
(b) HUD will require recordation of a HUD-approved use and
repayment covenant (a form may be obtained from your field office) for
all grants of funds for acquisition, rehabilitation or new
construction. The covenant will enforce the use and repayment
requirements found at section 423(b)(1) and (c) of the McKinney-Vento
Act and must be approved by HUD counsel before execution and
recordation. Proof of

[[Continued on page 12061]]

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