[Federal Register: July 15, 1998 (Volume 63, Number 135)] [Notices] [Page 38251-38275] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr15jy98-127] [[Page 38251]] _______________________________________________________________________ Part VI Department of Housing and Urban Development _______________________________________________________________________ Funding Availability for the HUD Colonias Initiative (HCI), Fiscal Year 1998; Notice [[Page 38252]] ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR-4380-N-01] Notice of Funding Availability for the HUD Colonias Initiative (HCI), Fiscal Year 1998 AGENCY: Office of the Assistant Secretary for Community Planning and Development, HUD. ACTION: Notice of funding availability (NOFA). ----------------------------------------------------------------------- SUMMARY: This NOFA announces the availability of $5 million for assistance to organizations serving colonia residents. Of this amount, up to $4 million will be provided to carry out development projects in colonias. One grant of $1 million may be provided to one or more private intermediary organization(s) (for profit and nonprofit) that would provide capacity-building loans, grants, or technical assistance to local nonprofit organizations serving colonias residents. This document sets forth the application instructions for the development grants and capacity-building grants made available under the NOFA. As indicated in the body of this NOFA, applicants may use either of two definitions for the term ``rural county.'' APPLICATION DUE DATES: Completed applications (one original and two copies) must be submitted no later than 12:00 midnight, Eastern time, on August 14, 1998, to the address shown below. The above-stated application deadline is firm as to date and hour. In the interest of fairness to all applicants, HUD will treat as ineligible for consideration any application that is not received before the application deadline. Applicants should submit their materials as early as possible to avoid any risk of loss of eligibility because of unanticipated delays or other delivery-related problems. HUD will not accept, at any time during the NOFA competition, application materials sent by facsimile (FAX) transmission. ADDRESSES AND APPLICATION SUBMISSION PROCEDURES: Addresses: Completed applications (one original and two copies) must be submitted to: Department of Housing and Urban Development, 451 Seventh Street, SW, Room 7184, Washington, DC 20410; ATTN: HUD Colonias Initiative. Applications Procedures. Mailed Applications. Applications will be considered timely filed if postmarked on or before 12:00 midnight on the application due date and received at the address above on or within five (5) days of the application due date. Applications Sent by Overnight/Express Mail Delivery. Applications sent by overnight delivery or express mail will be considered timely filed if received before or on the application due date, or upon submission of documentary evidence that they were placed in transit with the overnight delivery service by no later than the specified application due date. Hand Carried Applications. Hand carried applications delivered before and on the application due date must be brought to the specified location and room number between the hours of 8:45 am to 5:15 pm, Eastern time. Applications hand carried on the application due date will be accepted in the South Lobby of the HUD Headquarters Building at the above address from 5:15 pm until 12:00 midnight, Eastern time. FOR APPLICATION KITS, FURTHER INFORMATION, AND TECHNICAL ASSISTANCE: All information and materials required to submit an application for funding under the HUD Colonias Initiative are included in the appendix to this notice. For information concerning the HUD Colonias Initiative, and technical assistance, contact Yvette Aidara, Office of Block Grant Assistance, Department of Housing and Urban Development, 451 7th Street, SW, Room 7184, Washington, DC 20410; telephone (202) 708-1322 (this is not a toll-free number). Persons with speech or hearing impairments may access this number via TTY by calling the toll-free Federal Information Relay Service at 1-800-877-8339. All program documents referred to in this NOFA are accessible through HUD's web site at http://www.hud.gov. SUPPLEMENTAL INFORMATION: I. Authority; Definitions; Background; Purpose; Amount Allocated; Eligibility (A) Authority Title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 (Pub.L. 105-65, 111 Stat. 1357, approved October 27, 1997) (FY 1998 HUD Appropriations Act). (B) Definitions Capacity-building is the transferring of skills and knowledge in planning, developing and administering activities funded under this NOFA. For purposes of this NOFA, capacity-building may include provision of loans and grants as well as training and technical assistance activities. Colonia means any identifiable community that: (a) Is located in the State of Arizona, California, New Mexico, or Texas; (b) Is located in the U.S.-Mexico border region (that is, within 150 miles of the border between the U.S. and Mexico); and (c) Meets objective criteria, including lack of potable water supply, lack of adequate sewage systems, and lack of decent, safe, sanitary, and accessible housing. Although section 916(e)(4) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 5306(e)(4)) included the notation that a colonia must have been in existence and generally recognized as such prior to its enactment, HUD recognizes that additional identifiable colonias have come into existence, in the near-decade since the enactment, and are in need of assistance to the same extent as older colonias. These newer colonias are eligible for assistance under this NOFA. Rural County may be defined in either of two ways: (a) Bureau of the Census Definition. A rural county is a place having fewer than 2,500 inhabitants (within or outside of metropolitan areas). (b) Department of Agriculture's Beale Code Definition. A rural county is a county with no urban population (i.e., city) of 20,000 inhabitants or more. Visitability means at least one entrance at grade (no steps), approached by an accessible route such as a sidewalk; the entrance door and all interior passage doors provide a minimum 2 feet 10 inches (34- inch) clear opening. Allowing use of 2'10'' doors is consistent with the Fair Housing Act (at least for the interior doors), and may be more acceptable than requiring the 3 foot doors that are required in fully accessible areas under the Uniform Federal Accessibility Standards for a small percentage of units. (C) Background (1) Colonias eligible for assistance under this NOFA are any of the severely distressed, rural, unplanned, predominantly unincorporated settlements located along the 2,000 mile United States-Mexico border. Due to a lack of affordable housing in this area, many colonias came into existence as a result of developers selling unimproved lots, to buyers with extremely limited means, under high-interest bearing contracts for deed (i.e., the developers retain title to the land until the debt is fully paid). Due to the nature of land contract sales, buyers typically could not secure mortgage-secured loans to build standard housing. As a consequence, they often constructed [[Page 38253]] whatever limited dwellings or shelters they could afford. Thus, most colonias developed without regard to local zoning or other laws or covenants, adequate roads and drainage, and non-existent water and/or sewer facilities. The majority of housing in colonias is sub-standard and not in accordance with building codes. (2) One response to these needs was passage of Section 916 of the Cranston-Gonzalez National Affordable Housing Act which required the States of Arizona, California, New Mexico, and Texas to set aside ten percent of their Fiscal Year 1991 State Community Development Block Grant allocations to assist colonias. Subsequent years required colonias to be assisted at up to ten percent (California has been funded at two percent), as determined by HUD to be appropriate. Texas, with the largest population of colonia residents, accounts for approximately two-thirds of the set-aside in any given year. (3) Due to the limited State CDBG colonias set-asides in relation to the overwhelming needs, funding has generally been given to infrastructure activities, with special consideration to water and sewer services. The provision of housing has not been a primary focus of the limited CDBG funds available to colonias. This current initiative, in an effort to address the continuing need for decent, safe, sanitary, and accessible housing for colonias residents, is designed to encourage the production of decent, safe, sanitary, and accessible affordable housing for colonia residents. (D) Purpose The FY 1998 HUD Appropriations Act provided $25 million to test comprehensive approaches to developing a job base through economic development, developing affordable low- and moderate-income rental and homeownership housing, and increasing the investment of both private and nonprofit capital in rural and tribal areas of the US. Of that amount, $5 million has been targeted for this initiative to support assistance to organizations administering projects to address the housing needs of colonia residents in rural areas. HUD anticipates making grants totaling $4 to 5 million to address housing needs in the four border States where colonias are found (California, Arizona, New Mexico, and Texas). Of the $5 million, $1 million may be provided to one or more private intermediary organization(s) (for profit and nonprofit) that would provide capacity-building loans, grants, or technical assistance to local nonprofit organizations serving colonia residents. The intermediary organization would demonstrate experience in providing technical assistance in housing development to colonias or areas with similar economic and social conditions that exist in colonias and the capacity to administer a program to increase the capacity of colonia-based organizations to address local housing needs. (E) Amounts Allocated This NOFA makes available a total of $5 million in FY 1998 funding. Of this amount, HUD expects to allocate a total of $4 to 5 million for programs administered by competitively selected grantees in each of the four colonias border states. It is expected that applicants serving colonias residents in the State of Texas will receive a greater portion of the funds available under this NOFA since Texas has the largest population of colonia residents. Based on final negotiations of budgets and project plans, the Department reserves the right to award grants of up to $800,000 per applicant in each of the four states. The Department also reserves the right to provide multiple grants in each state, with multiple awards likely in Texas. Additionally, of the total $5 million available, HUD may award up to $1 million to one or more private organizations (for profit and nonprofit) for the purpose of building capacity among locally-based nonprofit organizations meeting the affordable housing needs of colonia residents. Preference will be given to applicants with the ability to serve the broadest area of the colonias region, and with the ability to serve colonia residents with disabilities. Note that if there are insufficient fundable applications for the capacity-building competition (i.e., scoring a minimum of 70 points), HUD reserves the right to shift the balance (including up to the full $1 million) to the housing development category to allow full utilization of the funding targeted for this initiative. (F) Eligible Applicants/Recipients Private (for profit and nonprofit) entities currently providing assistance to and for residents of colonias, including in any of the four colonia States (Arizona, California, New Mexico, and Texas) are eligible to apply for funds under the development activities portion of this NOFA to undertake activities within their respective States. Private (for profit and nonprofit) with the ability to provide capacity-building resources and technical assistance to locally-based nonprofit organizations serving colonias in the four-State colonias region are eligible to compete for the capacity-building funds. For- profit organizations are eligible to apply for funding under this NOFA with the stipulation that compensation be provided in accordance with Federal procurement guidelines (i.e., payment will be on a cost reimbursement basis without profit). (G) Eligible Activities (1) General. HUD Colonias Initiative (HCI) funds are to be used to address the housing and related needs of residents of colonias. The Department is especially interested in supporting self-help housing construction, homeownership opportunities, and rehab of units (where rehab is a viable alternative to new construction) for current residents of colonias. In undertaking activities under this NOFA, applicants must comply with applicable provisions of the Americans with Disabilities Act and should design construction, rehabilitation or modifications to buildings and facilities to be accessible and visitable for persons with disabilities and others who may also benefit, such as mothers with strollers or persons delivering appliances. In providing technical assistance and other educational opportunities, training and informational materials related to program activities should be made available in languages appropriate to the residents served or in video or audio formats. Use of intermediaries and collaborative partnerships, to the greatest extent possible, and leveraging of the funds provided under this NOFA to achieve the maximum positive impact is encouraged. (2) Primary Activities. It is expected that the majority of funding for each proposed project will be budgeted for the following primary housing activities that will result in decent, safe, sanitary, and accessible affordable housing: (a) New housing construction, including self-help, energy-efficient and innovative housing design initiatives. Housing may be single- or multi-family, owner- or renter-occupied; (b) Self-help construction training for residents and prospective owners/tenants; (c) Homeownership assistance; (d) Rehabilitation of existing permanent housing structures to meet local codes; (e) Construction of additions onto existing permanent housing structures, such as to provide for bathroom facilities or to reduce overcrowding, where cost-effective; (f) Installation of water wells or septic systems for individual permanent housing structures; [[Page 38254]] (g) Refinancing of existing landowner/homeowner debt to convert contracts-for-deed into mortgages; (h) Acquisition of land from existing owners or deed-holders, for resale to colonias residents; (i) Surveying and replatting of existing subdivisions; (j) Acquisition of land, relocation payments to residents and costs of developing new subdivisions, where existing development sites have been determined to be legally or environmentally inappropriate for habitation; and (k) Tenant-based assistance. (3) Other Related Activities to Support Housing Development. Applicants may propose other activities (public improvements, economic development, public services, administrative costs), that directly support the housing activities listed above, providing such activities do not constitute more than thirty percent (30%) of the budget in the aggregate, and clearly support and serve the same general population as the housing activities. Such activities may include: (a) Construction of publicly- or privately-owned utilities needed to serve the housing site(s) for which primary activities are funded, such as water supply/distribution systems, sewage collection/treatment systems, electricity or gas distribution lines; (b) Construction of public facilities such as libraries, parks and recreation centers, fire stations (including purchase of fire trucks and other equipment), or community centers; (d) Provision of financial or technical assistance to start or expand businesses, for purposes of creating jobs or providing goods or services for colonias residents living in or near the proposed housing site(s); (e) Funding microenterprise assistance programs to enable colonias residents to start their own businesses or to expand existing businesses; (f) Provision of public services which are directly supportive of the housing activities proposed, including but not limited to legal assistance, housing counseling, classes on purchasing a home, home maintenance and repair training, tenant services, education, health services, recreation programs, day care, transportation services, or costs of operating recreation centers, libraries or community centers; and (g) Recipient costs of administering the funding and carrying out of activities, to the extent allowed at 24 CFR part 84, but at a rate not to exceed 10% of the funds provided. (4) Capacity-Building Funds. Applicants for Capacity-Building funds (not to exceed $1 million) will provide loans, grants or technical assistance to regionally or locally-based nonprofit organizations working in colonias to meet housing and related needs. The nonprofit organizations may use the assistance for: (a) Provision of planning, training, and pre-development assistance to existing nonprofit organizations to expand their scope of expertise, to implement larger-scale projects, and/or enhance existing projects; (b) Self-help assistance, including skill in fiscal management, for colonias residents; (c) Dissemination of capacity-building information and citizen participation activities; and (d) Coordination of existing resources to maximize housing or economic opportunities funded under the provisions of this NOFA. (H) Ineligible Activities The following activities are not eligible for funding under this NOFA: (1) Acquisition, construction or rehabilitation of buildings for the general conduct of government, such as city halls, county courthouses, county jails, etc.; (2) General government expenses required to carry out the regular responsibilities of a unit of general local government; (3) Political activities; and (4) Provision of technical assistance to staff of award recipients. II. Program Requirements (A) Compliance With Fair Housing and Civil Rights Laws All applicants must comply with all Fair Housing and civil rights laws, statutes, regulations and executive orders as enumerated in 24 CFR Sec. 5.105(a). (B) Additional Nondiscrimination Requirements Applicants must also comply with the Americans with Disabilities Act, and Title IX of the Education Amendments Act of 1972. (C) Affirmatively Furthering Fair Housing Recipients will have a duty to affirmatively further fair housing. Applicants should include in their work plan the specific steps that they will take to (1) address the elimination of impediments to fair housing that were identified in the jurisdiction's Analysis of Impediments (AI) to Fair Housing Choice; (2) remedy discrimination in housing; or (3) promote fair housing rights and fair housing choice. Further, applicants have a duty to carry out the specific activities cited in their responses to the Factors for Award that address affirmatively furthering fair housing. (D) Economic Opportunities for Low and Very Low-Income Persons (Section 3) Recipients of HUD assistance 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 the HUD regulations at 24 CFR part 135, including the reporting requirements subpart E. Section 3 provides that recipients shall ensure that training, employment and other economic opportunities, to the greatest extent feasible, be directed to: (1) low and very low income persons, particularly those who are recipients of government assistance for housing; and (2) business concerns which provide economic opportunities to low and very low income persons. (E) Relocation Any person (including individuals, partnerships, corporations or associations) who moves from real property or moves personal property from real property as a direct result of a written notice to acquire or the acquisition of the real property, in whole or in part, for a HUD- assisted activity is covered by acquisition policies and procedures and the relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and the implementing governmentwide regulation at 49 CFR part 24. Any person who moves permanently from real property or moves personal property from real property as a direct result of rehabilitation or demolition for an activity undertaken with HUD assistance is covered by the relocation requirements of the URA and the governmentwide regulation. (F) OMB Circulars The policies, guidances, and requirements of OMB Circular No. A-122 (Cost Principles for Nonprofit Organizations) and 24 CFR part 84 (Grants and Agreements with Institutions of Higher Education, Hospitals, and other Non-Profit Organizations) apply to the award, acceptance and use of assistance under this NOFA, and to the remedies for noncompliance, except when inconsistent with the provisions of the FY 1998 HUD Appropriations Act, other Federal statutes or the provisions of this NOFA. Copies of the OMB Circular may [[Page 38255]] be obtained from EOP Publications, Room 2200, New Executive Office Building, Washington, DC 10503, telephone (202) 395-7332 (this is not a toll free number). (G) Conflicts of Interest Consultants or experts assisting HUD in rating and ranking applicants for funding under this NOFA are subject to 18 U.S.C. 208, the Federal criminal conflict of interest statute, and to the Standards of Ethical Conduct for Employees of the Executive Branch regulation published at 5 CFR part 2635. As a result, individuals who have assisted or plan to assist applicants with preparing applications for this NOFA may not serve on a selection panel or as a technical advisor to HUD for this NOFA. All individuals involved in rating and ranking this NOFA, including experts and consultants, must avoid conflicts of interest or the appearance of conflicts. If the selection or non- selection of any applicant under this NOFA affects the individual's financial interests set forth in 18 U.S.C. 208 or involves any party with whom the individual has a covered relationship under 5 CFR 2635.502, that individual must, prior to participating in any matter regarding this NOFA, disclose this fact to the General Counsel or the Ethics Law Division. (H) Eligible Populations to be Served The HCI is designed to serve colonias in rural areas in the States of Arizona, California, New Mexico, and Texas. See definitions of ``colonias'' and ``rural county'' above. (I) Grant Amounts In the event an applicant is awarded an HCI grant that has been reduced (e.g. the application contained some activities that were ineligible or budget information did not support the request), the applicant will be required to modify its project plans and application to conform to the terms of HUD's approval before execution of a grant agreement. HUD reserves the right to reduce or de-obligate the HCI award if approvable modifications to the proposed project are not submitted by the awardee in the required amounts in a timely manner. Any modifications must be within the scope of the original HCI application. HUD reserves the right not to make awards under this NOFA. (J) Grant Period Recipients will have 36 months from the date of funding award to complete all project activities except the final evaluation and reporting, fulfillment of audit requirements and final project close- out. (K) Leveraging of Other Resources (1) A key component of the HCI is the leveraging of other sources of capital to significantly expand the scope of accomplishments to be realized with this funding. (2) Potential recipients must demonstrate the commitment of additional resources to support their proposed projects. Sources of this other funding can be other public (Federal, State or local) agencies, private funding or internal resources. In-kind services, ``sweat equity'' and commitments of funds for activities which are already being implemented may be counted toward the leveraging requirements. Funding for which commitments were received prior to publication of this NOFA may be counted, provided that the commitment is still valid, is for the project activities proposed, and that implementation of the activity had not yet begun. Final negotiation of budgets and implementation schedules may be conditioned upon evidence that leveraging requirements have been met. (L) Negotiations After all applications have been rated and ranked and a selection has been made, HUD may require that awardees participate in negotiations to determine the specific tasks and grant budget. Where a specific area or one or more specific sites for project activities are identified in an application or during negotiations, HUD may undertake and complete its environmental review during negotiations. In cases where HUD cannot successfully conclude negotiations or a selected applicant fails to provide HUD with requested information, or if the reduced amount of funding makes the project infeasible, awards will not be made. In such instances, HUD will offer an award to the next highest ranking applicant and proceed with negotiations with that next highest ranking applicant. (M) Adjustments to Funding (1) HUD reserves the right to fund less than the full amount requested in any application to ensure the purpose of the initiative is met. HUD may not fund portions of the applications that are ineligible for funding under applicable program statutory or regulatory requirements, or which do not meet the requirements of this NOFA, but may fund eligible portions of the applications. (2) If funds remain after funding the highest ranking applications in each State, HUD may fund part of the next highest ranking application in the same category (i.e., development or capacity- building). If the applicant turns down the award offer, or if the project is not feasible at the proposed funding level, HUD will make the same determination for the next highest ranking applications in each category. (N) Environmental Review Selection for award does not constitute approval of any proposed sites. Following selection for award, HUD will perform an environmental review of activities proposed for assistance under this part, in accordance with 24 CFR part 50. The results of the environmental review may require that proposed activities be modified or that proposed sites be rejected. Applicants are particularly cautioned not to undertake or commit funds for acquisition or development of proposed properties prior to HUD approval of specific properties or areas. Each application shall contain an assurance that the applicant will assist HUD to comply with part 50; will supply HUD with all available, relevant information to perform an environmental review for each proposed property; will carry out mitigating measures required by HUD or select alternate property; and will not acquire, rehabilitate, convert, lease, repair or construct property, nor commit HUD or local funds for these program activities with respect to any eligible property, until HUD approval of the property is received. III. Application Selection Process (A) Rating and Ranking (1) General. To review and rate applications, HUD may establish panels including outside experts or consultants to obtain certain expertise and outside points of view, including views from other Federal agencies. A total of 100 points is possible. For the capacity- building category, a minimum score of 70 points must be achieved to be considered for funding. (2) Rating. All applicants for funding under this NOFA will be evaluated against the criteria below. The rating of the ``applicant'' or the ``applicant's organization and staff'' for technical merit or threshold compliance, unless otherwise specified, will include any sub- contractors, consultants, sub-recipients, and members of consortia which are firmly committed to the project. (3) Ranking. Applicants will be ranked within each of the two set- aside program areas: housing development activities and capacity- building. Applicants will be ranked only against [[Page 38256]] others in the separate set-aside program areas. Once scores are assigned, all applications will be ranked in order of points assigned, with the applications receiving more points ranking above those receiving fewer points. The highest ranking applications in each State area will be funded; the highest ranking capacity-building application will be funded, provided it has achieved a score of at least 70 points. As noted above, if the highest ranking application in the capacity- building category may be funded at an amount less than $1 million, additional grants may be made to the extent funds and fundable applicants remain. (4) If HUD determines that an application rated, ranked and fundable could be funded at a lesser HCI grant amount than requested consistent with feasibility of the funded project or activities and the purposes of this NOFA, HUD reserves the right to reduce the amount of the HCI grant award and fund the next ranking application in that State if sufficient funds remain to undertake a feasible project in the scope of that application. Any remaining amounts may be pooled to fund the next highest ranked application in any of the four states. (B) Threshold Requirements HUD will review each application to determine whether the application meets all of the threshold criteria described for program funding made available under this NOFA. Applications that meet the threshold criteria will be eligible to be rated and ranked, based on the criteria described, and the total number of points to be awarded. The threshold criteria are: (1) An applicant must be a private for-profit or nonprofit entity organized according to State law where situated. (2) If an applicant (a) has been charged with a violation of the Fair Housing Act by the Secretary; (b) is the defendant in a Fair Housing Act lawsuit filed by the Department of Justice; (c) has received a letter of noncompliance findings under Title VI of the Civil Rights Act or Section 504 of the Rehabilitation Act; or (d) has been debarred, the applicant is not eligible to apply for funding under this NOFA until the applicant resolves such charge, lawsuit, letter of findings, or debarment to the satisfaction of the Department. (C) Narrative Statement Each applicant shall provide: (1) a narrative statement describing the activities that will be carried out with the HCI grant funds; and (2) an explanation of how the use of HCI grant funds meets the rating factors identified below. The description of activities should include a statement of how the proposed uses of HCI funds will meet the objectives of this initiative. The application as a whole (narrative and responses to the Factors for Award, below) shall not exceed 25 8.5'' by 11'' pages. Applicants may also submit videotapes and/or photographs of the area or neighborhood that would be assisted by grant funds under this NOFA. The applicant must indicate which factor(s) the photographs and/or video tapes address. (D) Factors for Award All applicants will be considered for selection based on the following factors that demonstrate the need for the proposed project or activities, and the applicant's creativity, capacity and commitment to provide the maximum benefit to the residents of the colonias areas served and the extent to which the proposed project will increase the supply of decent, safe, sanitary, and accessible affordable housing in colonias. The maximum points awarded for the factors total 100. Rating Factor 1: Capacity of the Applicant and Relevant Organizational Staff (20 points). This factor addresses the applicant's organizational experience in administering similar types of funding, and the demonstrated capacity to carry out the proposed activities. Applicants must demonstrate previous relevant experience working in colonias. When responding to this factor, the applicant should identify the number of projects undertaken, the type of project, and the number of units of affordable housing developed, as applicable. The response should include a discussion of how housing units were made affordable for low-income persons. The rating of the applicant or the applicant's organization and staff for technical merit will include any faculty, subcontractors, consultants, subrecipients, and members of consortia which are firmly committed (i.e. has a written agreement or a signed letter of understanding with the applicant agreeing in principle to its participation and role in the project). HUD will also consider past performance in carrying out HUD-funded or other projects, including projects similar in size and scope to the project proposed, and the extent to which projects encourage and incorporate collaborative and partnership relationships in serving colonia residents. Rating Factor 2: Need/Extent of the Problem (20 points). This factor addresses the extent of colonia need(s) for housing, including accessible housing, and related investments, including a description of physical and social conditions. In applying this factor, HUD will consider current levels of distress in the immediate community to be served by the project. Level of distress will be indicated most directly by data on the size and condition of the existing housing stock, homeownership and land tenure, availability of housing finance, and rental assistance need. Additional indicators of distress may include: infrastructure and community facility needs, education and employment of residents, and the need for legal or other assistance. HUD requires that applicants use sound, reliable and verifiable data to support the level of distress claimed in the application. Rating Factor 3: Soundness of Approach (40 points). This factor addresses the appropriateness and effectiveness of the proposed activities in substantially addressing identified needs. HUD will consider the extent to which the plan is logical, feasible, and substantially likely to achieve its stated purpose and provides benchmarks to measure actual increase in the number of decent, safe, sanitary, and accessible affordable housing units. HUD's desire is to fund projects and activities which will quickly produce demonstrable results and advance the public interest including the number of colonia residents to be assisted and the impact of the projects and activities on the distress factors indicated by the applicant's response to Factor 2. An applicant must demonstrate that it has an understanding of the steps required to implement its project, the actions that it and others responsible for implementing the project must complete and shall include a reasonable time schedule for carrying out the project. In considering this factor, HUD will take into account the cost per unit for construction or rehab of housing units. Rating Factor 4: Financial Feasibility/Leveraging Resources (20 points). This factor addresses the extent to which the proposed project will leverage the use of other public and private financial resources to provide a fiscally sound project. A minimum ratio of RDDC funds in any project is not specified. However, applicants that have the greatest ratio of other funds or in-kind services to RDDC funds will receive a greater number of points for leveraging resources. Documentation of funds pledged and in-kind services to be provided must be submitted with the application to be considered. This documentation might include letters of financial commitment or verifiable evidence of other loan or grant [[Page 38257]] assistance to address the housing development needs of the colonia project area and residents. Also considered in determining the points for this factor must be the extent to which project costs (as evidenced by a complete budget-by-task) are reasonable and financially feasible. IV. Application Submission Requirements The application must include an original and two copies of the items listed below: (A) Transmittal letter from applicant; (B) Table of contents; (C) A signed SF-424 (application form); (D) A narrative statement as described above; (E) Responses to each of the Factors for Award; (F) Written agreements or signed letters of understanding in support of Rating Factor 1: ``Capacity of the Applicant and Relevant Organizational Staff''; (G) Documentation of funds pledged in support of Rating Factor 4: ``Financial Feasibility/Leveraging Resources''; (H) A budget-by-task to accompany Factor 4; (I) Required certifications (signed, as appropriate, and attached as an appendix); and (J) Acknowledgment of Application Receipt form (submitted with application and returned to applicant as verification of timely receipt). V. Corrections to Deficient Applications After the application due date, HUD may not, consistent with 24 CFR part 4, subpart B, consider unsolicited information from an applicant. HUD may contact an applicant, however, to clarify an item in the application or to correct technical deficiencies. Applicants should note, however, that HUD may not seek clarification of items or responses that improve the substantive quality of the applicant's response to any eligibility or selection criterion. Examples of curable technical deficiencies include failure to submit an application containing an original signature by an authorized official. In each case, HUD will notify the applicant in writing by describing the clarification or technical deficiency. HUD will notify applicants by facsimile or by return receipt requested mail. Applicants must submit clarifications or corrections of technical deficiencies in accordance with the information provided by HUD within 7 calendar days of the date of receipt of the HUD notification. If the deficiency is not corrected within this time period, HUD will reject the application as incomplete. VI. Findings and Certifications (A) Paperwork Reduction Act Statement The information collection requirements contained in this NOFA have been submitted to the Office of Management and Budget (OMB) for approval in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The OMB approval number, once assigned, will be published in the Federal Register. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a valid control number. (B) Environmental Impact A Finding of No Significant Impact with respect to the environment has been made in accordance with HUD regulations at 24 CFR part 50, implementing section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332). The Finding of No Significant Impact is available for public inspection during business hours in the Office of the Rules Docket Clerk, Room 10276, Department of Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410-0500. (C) Federalism Impact The General Counsel, as the Designated Official under section 6(a) of Executive Order 12612, Federalism, has determined that the policies contained in this NOFA will not have substantial direct effects on States or their political subdivisions, or the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government. As a result, the notice is not subject to review under the Order. This notice is a funding notice and does not substantially alter the established roles of HUD, the States, and local governments. (D) Accountability in the Provision of HUD Assistance Section 102 of the Department of Housing and Urban Development Reform Act of 1989 (HUD Reform Act) and the regulations in 24 CFR part 4, subpart A contain a number of provisions that are designed to ensure greater accountability and integrity in the provision of certain types of assistance administered by HUD. On January 14, 1992 (57 FR 1942), HUD published a notice that also provides information on the implementation of section 102. HUD will comply with the documentation, public access, and disclosure requirements of section 102 with regard to the assistance awarded under this NOFA, as follows: (1) Documentation and public access requirements. HUD will ensure that documentation and other information regarding each application submitted pursuant to this NOFA are sufficient to indicate the basis upon which assistance was provided or denied. This material, including any letters of support, will be made available for public inspection for a 5-year period beginning not less than 30 days after the award of the assistance. Material will be made available in accordance with the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing regulations at 24 CFR part 15. In addition, HUD will include the recipients of assistance pursuant to this NOFA in its Federal Register notice of all recipients of HUD assistance awarded on a competitive basis. (2) Disclosures. HUD will make available to the public for 5 years all applicant disclosure reports (HUD Form 2880) submitted in connection with this NOFA. Update reports (also Form 2880) will be made available along with the applicant disclosure reports, but in no case for a period less than 3 years. All reports--both applicant disclosures and updates--will be made available in accordance with the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing regulations at 24 CFR part 15. (E) Section 103 HUD Reform Act HUD will comply with section 103 of the Department of Housing and Urban Development Reform Act of 1989 and HUD's implementing regulations in subpart B of 24 CFR part 4 with regard to the funding competition announced today. These requirements continue to apply until the announcement of the selection of successful applicants. HUD employees involved in the review of applications and in the making of funding decisions are limited by section 103 from providing advance information to any person (other than an authorized employee of HUD) concerning funding decisions, or from otherwise giving any applicant an unfair competitive advantage. Persons who apply for assistance in this competition should confine their inquiries to the subject areas permitted under section 103 and subpart B of 24 CFR part 4. Applicants or employees who have ethics related questions should contact the HUD Office of Ethics (202) 708-3815. (This is not a toll- free number.) [[Page 38258]] (F) Prohibition Against Lobbying Activities Applicants for funding under this NOFA are subject to the provisions of section 319 of the Department of Interior and Related Agencies Appropriation Act for Fiscal Year 1991 (31 U.S.C. 1352) (the Byrd Amendment) and to the provisions of the Lobbying Disclosure Act of 1995 (Pub. L. 104-65; approved December 19, 1995). The Byrd Amendment, which is implemented in regulations at 24 CFR part 87, prohibits applicants for Federal contracts and grants from using appropriated funds to attempt to influence Federal executive or legislative officers or employees in connection with obtaining such assistance, or with its extension, continuation, renewal, amendment, or modification. The Byrd Amendment applies to the funds that are the subject of this NOFA. Therefore, applicants must file a certification stating that they have not made and will not make any prohibited payments and, if any payments or agreement to make payments of nonappropriated funds for these purposes have been made, a form SF-LLL disclosing such payments must be submitted. The certification and the SF-LLL are included in the application. The Lobbying Disclosure Act of 1995 (Pub. L. 104-65; approved December 19, 1995), which repealed section 112 of the HUD Reform Act, requires all persons and entities who lobby covered executive or legislative branch officials to register with the Secretary of the Senate and the Clerk of the House of Representatives and file reports concerning their lobbying activities. Dated: July 10, 1998. Saul N. Ramirez, Jr., Assistant Secretary for Community Planning and Development. Appendix--Checklist, Forms and Certifications Page No. ______ 1. Transmittal Letter ______ 2. Checklist and Submission Table of Contents ______ 3. Standard Form for Application for Federal Assistance (SF- 424) ______ 4. Narrative Statement ______ 5. Response to Factors for Award ______ 6. Written Agreements/Signed Letters of Understanding in Support of Rating Factor 1 ______ 7. Budget-by-Task and Benchmarks in Support of Rating Factor 3 ______ 8. Documentation of Funds/In-Kind Services Pledged in Support of Rating Factor 4 ______ 9. Required Certifications (signed) ______ a. Certification for a Drug-Free Workplace (HUD-50070) ______ b. Certification of Payments to Influence Federal Transactions (HUD-50071) (See 24 CFR part 87, Appendix A) ______ c. If required, Disclosure of Lobbying Activities (SF- LLL) (See 24 CFR part 87, Appendix B) ______ d. Applicant/Recipient Disclosure/Update Report (HUD- 2880) ______ e. Applicant Nondiscrimination Certifications ______ f. Certification Regarding Debarment & Suspension (HUD- 2992) ______ 10. Acknowledgement of Application Receipt (to be returned to applicant) BILLING CODE 4210-29-P [[Page 38259]] [GRAPHIC] [TIFF OMITTED] TN15JY98.005 [[Page 38260]] [GRAPHIC] [TIFF OMITTED] TN15JY98.006 [[Page 38261]] [GRAPHIC] [TIFF OMITTED] TN15JY98.007 [[Page 38262]] [GRAPHIC] [TIFF OMITTED] TN15JY98.008 [[Page 38263]] [GRAPHIC] [TIFF OMITTED] TN15JY98.009 [[Page 38264]] [GRAPHIC] [TIFF OMITTED] TN15JY98.010 [[Page 38265]] [GRAPHIC] [TIFF OMITTED] TN15JY98.011 [[Page 38266]] [GRAPHIC] [TIFF OMITTED] TN15JY98.012 [[Page 38267]] [GRAPHIC] [TIFF OMITTED] TN15JY98.013 [[Page 38268]] [GRAPHIC] [TIFF OMITTED] TN15JY98.014 [[Page 38269]] [GRAPHIC] [TIFF OMITTED] TN15JY98.015 [[Page 38270]] [GRAPHIC] [TIFF OMITTED] TN15JY98.016 [[Page 38271]] [GRAPHIC] [TIFF OMITTED] TN15JY98.017 [[Page 38272]] [GRAPHIC] [TIFF OMITTED] TN15JY98.018 [[Page 38273]] [GRAPHIC] [TIFF OMITTED] TN15JY98.019 [[Page 38274]] [GRAPHIC] [TIFF OMITTED] TN15JY98.020 [[Page 38275]] [GRAPHIC] [TIFF OMITTED] TN15JY98.021 [FR Doc. 98-18932 Filed 7-13-98; 11:31 am] BILLING CODE 4210-29-C