[[Page 12189]]

FUNDING AVAILABILITY FOR THE RURAL HOUSING AND ECONOMIC DEVELOPMENT
PROGRAM

Program Overview

    Purpose of Program: The purpose of the Rural Housing and Economic
Development (RHED) program is to build capacity at the State and local
level for rural housing and economic development and to support
innovative housing and economic development activities in rural areas.
The funds made available under this program will be awarded
competitively, through a selection process conducted by HUD in
consultation with the United States Department of Agriculture (USDA).
    Available Funds: Approximately $24 million in Fiscal Year (FY) 2001
funding. Adjustments to Funding. HUD reserves the right to utilize this
year's funding to fund previous year's errors prior to rating and
ranking this year's applications. HUD reserves the right to reallocate
funds between categories to achieve the maximum allocation of funds in
both categories.
    Eligible Applicants: Local rural non-profit organizations,
community development corporations, Indian tribes, State housing
finance agencies, and State economic development or community
development agencies.
    Application Deadline: April 6, 2001.
    Match: None.

Additional Information

    If you are interested in applying for funding under this program,
please review carefully the General Section of this SuperNOFA and
application submission requirements. You should note that the total
narrative response to all rating factors described under Section V(C)
should not exceed 15 pages, and must be submitted on 8.5" by 11" paper
using a 12 point size, with lines double spaced and printed only on one
side. Please note that although submitting pages in excess of the page
limit will not disqualify your application, HUD will not consider the
information on any excess pages, which may result in a lower score or
failure to meet a threshold. In addition, please review the following
information:

I. Application Due Date, Further Information and Technical
Assistance

    Application Due Date: Completed applications (one original and two
copies) must be submitted on or before 12:00 midnight, Eastern time, on
April 6, 2001, to the HUD Headquarters address shown below.
    See the General Section of this SuperNOFA for specific procedures
governing the form of application submission (e.g. mailed applications,
express mail, overnight delivery, or hand carried).
    Address for Submitting Applications: Completed applications (one
original and two copies) must be submitted to: Processing and Control
Unit, Room 7255, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 Seventh Street, SW,
Washington, DC 20410; ATTN: Office of Rural Housing and Economic
Development. When submitting your application, please include your
name, mailing address (including zip code), telephone number, and fax
number (including area code).
    For Application Kits. An application kit is not necessary for
submitting an application in response to this announcement. This
announcement contains all the information necessary for the submission
of your application for the Rural Housing and Economic Development
Program.
    For Further Information and Technical Assistance. All information
and materials required to submit an application for funding under the
HUD Rural Housing and Economic Development program are included in the
Appendix to this NOFA.
    For information concerning the HUD Rural Housing and Economic
Development program, contact Mr. Marty Horwath, Community Planning and
Development Specialist, Office of Rural Housing and Economic
Development (RHED), Office of Economic Development, Office of Community
Planning and Development (CPD), Department of Housing and Urban
Development, 451 7th Street, SW, Room 7136, Washington, DC 20410;
telephone (202) 708-2035 (this is not a toll-free number). Persons with
speech or hearing impairments may access this number via TTY by calling
the toll-free Federal Information Relay Service at 1-800-877-8339.
    Satellite Broadcast. HUD will hold an information broadcast via
satellite for potential applicants to learn more about the program and
preparation of an application. For more information about the date and
time of this broadcast, you should consult the HUD web site at http://
www.hud.gov.
    Prior to the application deadline, HUD staff at the numbers above
and local CPD field office Economic Development (ED) Specialists will
be available to provide general guidance, but not guidance in actually
preparing the application. Following selection, but prior to award, HUD
staff will be available to assist in clarifying or confirming
information that is a prerequisite to the offer of an award by HUD.

II. Amount Allocated

    (A) Available Funds. Approximately $24 million in Fiscal Year (FY)
2001 funding is being made available through this program section of
the SuperNOFA. The breakdown for this funding is discussed below.
    (B) The FY 2001 HUD Appropriations Act. The Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 2001 (Pub. L. 106-377 approved October 27, 2000 )
(the ``FY 2001 HUD Appropriations Act'') made $25 million in FY 2001
funds available under the Rural Housing and Economic Development
program.
    (C) Funding Categories/ Maximum Award Amounts. HUD will award up to
approximately $24 million on a competitive basis in the following
funding categories.
    (1) Capacity Building. HUD will award up to approximately $12
million to build capacity. This amount will go directly to local rural
nonprofits, community development corporations (CDCs) and Indian tribes
to support innovative housing and economic development activities to
increase capacity. The maximum amount awarded to a successful applicant
in this category will be $150,000. If you received a RHED grant in
either FY 1999 or FY 2000 for capacity building, the maximum amount you
can receive in this category will be $100,000.
    (2) Support for Innovative Housing and Economic Development
Activities. HUD will award up to approximately $12 million to Indian
tribes, State Housing Finance Agencies (HFA)s, state community and/or
economic development agencies, local rural non-profits and CDCs to
support innovative housing and economic development activities in rural
areas. The maximum amount awarded to a successful applicant in this
category will be $400,000.

III. Program Description; Eligible Applicants; Eligible Activities

    (A) Program Description. (1) Background. There is a great need for
expanding the supply of housing in rural America, particularly
affordable housing for low income families and individuals. There are a
number of rural areas which have experienced rapid in-migration as a
result of a growth in employment opportunities, but which have a
shortage of affordable housing. In addition, because of out-migration
from rural areas, and other factors causing

[[Page 12190]]

economic dislocation, many rural areas suffer from severe economic
distress. There has been a growing national recognition of the need to
enhance the capacity of Indian tribes, local rural nonprofits, CDCs,
and State community and economic development agencies to expand the
supply of affordable housing and to engage in economic development
activities in rural areas.
    A number of resources are available from the Federal government to
address these problems, including programs of the United States
Department of Agriculture (USDA), the Economic Development
Administration (EDA), the Appalachian Regional Commission (ARC), the
Department of Interior (for Indian Tribes) and HUD. The Rural Housing
and Economic Development program has been developed to supplement these
resources and to focus specifically on capacity building and innovative
approaches to housing and economic development in rural areas. In
administering these funds, HUD will encourage coordination between all
Federal agencies in support of the program objectives.
    (2) Definitions. Appalachia's Distressed Counties means those
counties in Appalachia that the Appalachian Regional Commission (ARC)
has determined to have unemployment and poverty rates that are 150
percent of the respective U.S. rates and per capita income that is less
than 67 percent of the U.S. per capita income, and counties with 200
percent of the U.S. poverty rate and one other indicator. Appendix B to
this notice identifies the ARC's list of distressed counties.
    Colonia means any identifiable community that:
    (i) Is located in the State of Arizona, California, New Mexico, or
Texas;
    (ii) Is located in the U.S.-Mexico border region (that is, within
150 miles of the border between the U.S. and Mexico);
    (iii) Meets objective criteria, including lack of potable water
supply, lack of adequate sewage systems, and lack of decent, safe,
sanitary, and accessible housing
    Farmworker means a farm employee of an owner, tenant, labor
contractor, or other operator raising or harvesting agricultural or
aquacultural commodities; or a worker in the employment of a farm
operator, handling, planting, drying, packing, grading, storing,
delivering to storage or market, or carrying to market agricultural or
aquacultural commodities produced by the operator. Seasonal farmworkers
are those farm employees who typically do not have a constant year
round salary. Migrant farmworkers are those farm employees whose work
requires travel that prevents the employee from returning to his or her
permanent place of residence within the same day.
    A firm commitment means the agreement by which an applicant's
partner agrees to perform an activity specified in the application and
demonstrates the financial capacity to deliver the resources necessary
to carry out the activity, and commits the resources to the activity
either in cash or through in-kind contributions and is irrevocable,
subject only to approval and receipt of a FY 2001 RHED grant. Each
letter of commitment should include the organization's name, the
applicant's name, the proposed program, the proposed total level of
commitment and responsibilities as they relate to the proposed program.
The commitment must also be signed by an official of the organization
legally able to make commitments on behalf of the organization and
dated not earlier than the date of publication of this NOFA. In
documenting a firm commitment, the applicant's partner must:
    (i) Specify the authority by which the commitment is made, the
amount of the commitment and the use of funds. If the committed
activity is to be self-financed, the applicant's partner must evidence
its financial capability through a corporate or personal financial
statement or other appropriate means. If any portion of it is to be
financed through a lending institution, the participant must evidence
the institution's commitment to fund the loan;
    (ii) State the amount and use of the commitment, and the
relationship of the commitment to the proposed investment; and
    (iii) Affirm that the commitment is not contingent upon another
program or other pending commitments, and state a willingness on the
part of the signatory to sign a legally binding commitment (conditioned
on HUD environmental review and approval of a property, where
applicable) upon award of the grant.
    Indian tribe means any entity eligible to apply for funding under
the Indian Community Development Block Grant (ICDBG) program (see 24
CFR 1003.5(a)). The list of federally recognized Indian tribes can be
found notice published by the Department of the Interior on March 13,
2000, at 65 FR 13299, and is also available from HUD.
    Innovative housing activities means projects, techniques, methods,
combinations of assistance, construction materials, and financing
institutions or sources new to the eligible area, or its population.
The innovative activities can also build upon and enhance a model that
already exists.
    Local rural non-profit or community development corporation means
either:
    (i) Any private entity with tax exempt status recognized by the
Internal Revenue Service (IRS) which serves the eligible rural area
involved in the application (including local affiliates of national
organizations that provide technical and capacity building assistance
in rural areas); or
    (ii) Any public non-profit such as a Council of Governments that
will serve specific local non-profit organizations in the eligible
area.
    Lower Mississippi Delta Region means the seven state, 219 county/
parish region defined by Congress in the Lower Mississippi Delta
Development Act, Pub.L. 100-460. Appendix C to this notice identifies
the counties referenced in the Act.
    Rural area may be defined in one of five ways:
    (i) A place having fewer than 2,500 inhabitants (within or outside
of metropolitan areas).
    (ii) A county with no urban population of 20,000 inhabitants or
more.
    (iii) Territory, persons, and housing units in the rural portions
of ``extended cities.'' The U.S. Census Bureau identifies the rural
portions of extended cities in the United States.
    (iv) Open country which is not part of or associated with an urban
area. The United States Department of Agriculture (USDA) describes
``open country''as a site separated by open space from any adjacent
densely populated urban area. Open space includes undeveloped land,
agricultural land, or sparsely settled areas, but does not include
physical barriers (such as rivers and canals), public parks, commercial
and industrial developments, small areas reserved for recreational
purposes, and open space set aside for future development.
    (v) Any place with a population not in excess of 20,000 and not
located in a Metropolitan Statistical Area.
    State economic development or community development agency means
any state agency which has promotion of statewide or local community/
economic development as its primary purpose.
    State Housing Finance Agency means any state agency created to
assist local communities and housing providers with financing
assistance for development of housing in rural areas, particularly for
low and moderate income people.

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    (3) Eligible applicants. Eligible applicants for each of the
funding categories are as follows:
    (a) For capacity building funding. If you are a local rural non-
profit, CDC, or Indian tribe, you are eligible for capacity building
funding to carry out innovative housing and economic development
activities which may also enable an applicant to become self-sustaining
in the future.
    (b) For support for innovative housing and economic development
activities funding. If you are a local rural non-profit, CDC, Indian
tribe, State HFA, or State economic development or community
development agency, you may apply for funding to support innovative
housing and economic development activities in rural areas.
    (4) Eligible activities. The following are examples of eligible
activities under the Rural Housing and Economic Development program.
These examples are illustrative and are not meant to limit the
activities that you may propose in your application. Any activity that
meets the objective of the Rural Housing and Economic Development
program will be considered eligible.
    (a) For capacity building funding. Capacity building for innovative
rural housing and economic development involves the enhancement of
existing organizations to carry out new functions and/or perform more
effectively existing functions. For organizations, this could also
include ``up front'' money for acquiring space and support facilities,
as well as other types of administrative expenses. This should also
focus on activities which enable the applicant to become self-
sustaining in the future.
    Activities in connection with strengthening existing organizations
include hiring qualified staff, supporting and training existing staff,
providing software and other tools to provide networking and research
capability, and obtaining expertise from outside sources. They also
include training to improve management capability, including
development of accounting systems, Management Information Systems (MIS)
support, apprenticeship programs and related activities. Eligible
activities also include arranging for technical assistance to conduct
need assessments, conduct asset inventories, and develop strategic
plans. These activities also include the promotion of fair housing by
training specific local organizations and residents in fair housing
issues, and by helping them to file fair housing complaints with HUD,
when warranted.
    (b) For support of innovative housing and economic development
activities. (i) This category is intended to support, but not be
limited to, other costs for innovative housing and economic development
activities. Eligible activities include preparation of plans,
architectural and engineering drawings and reports, financial
assistance for acquisition of land and buildings, demolition, provision
of infrastructure, purchase of materials, construction costs, the use
of local labor markets, and job training.
    Additionally, eligible activities include homeownership counseling,
application of innovative construction methods encouraging building
design which reflects terrain, weather, and availability of indigenous
materials. Besides meeting applicable civil rights requirements such as
the Americans with Disabilities Act, section 504 of the Rehabilitation
Act of 1973, and the Federal Fair Housing Act (42 U.S.C. 3601 et seq.),
HUD also strongly recommends that all housing designs be made
``accessible and visitable.'' In addition, HUD encourages the use of
universal design in designing and constructing units so that the
housing can meet the needs of the largest number of individuals.
    (ii) Other eligible activities include establishing Community
Development Financial Institutions (CDFIs), lines of credit, revolving
loan funds, microenterprises, small business incubators, provision of
direct financial assistance to homeowners/businesses/developers, etc.
This can be in the form of establishing default reserves, pooling/
securitization mechanisms, loans, grants, etc. Grantees should
demonstrate that their activities will continue to serve the
populations that are in need and that beneficiaries will have a choice
of innovative housing and economic development opportunities as a
result of these activities.

IV. Program Requirements

    (A) General. To be eligible for funding under this program section
of this SuperNOFA, you must meet the requirements and procedures
applicable to all programs set forth in Section II of the General
Section of the SuperNOFA, and particularly the civil rights threshold
requirements set forth in Section II(B) of the General Section. In
addition to these general requirements, you must meet the following
program specific requirements.
    (B) Accounting System Requirements. RHED requires that successful
applicants have in place an accounting system that meets the policies,
guidance, and requirements as described in the following applicable OMB
Circulars and Code of Federal Regulations:
    (1) OMB Circular No. A-87 (Cost Principles Applicable to Grants,
Contracts and Other Agreements with State and Local Governments);
    (2) OMB Circular No. A-122 (Cost Principles for Nonprofit
Organizations), OMB Circular No. A-133 (Audits of States, Local
Governments, and Non-Profit Organizations);
    (3) 24 CFR part 84 (Grants and Agreements with Institutions of
Higher Education, Hospitals, and other Non-Profit Organizations); and
    (4) 24 CFR part 85 (Administrative Requirements for Grants and
Cooperative Agreements to State, Local, and Federally recognized Indian
tribal governments).
    These documents apply to the award, acceptance and use of
assistance under the Rural Housing and Economic Development program
NOFA, and to the remedies for noncompliance, except when inconsistent
with the provisions of the FY 2001 HUD Appropriations Act, other
Federal statutes or the provisions of this NOFA.
    (C) 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 (including establishing lines of
credit that permit financing of such activities or making commitments
for loans that would finance such activities from a revolving loan fund
capitalized from funds under this NOFA) prior to HUD approval of
specific properties or areas. Each application shall contain an
assurance that you, 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, not commit or expend HUD or local funds for these program
activities with respect to any eligible property, until HUD approval of
the property is received. In supplying HUD with environmental
information, grantees are to use the same guidance as provided in the
HUD Handbook entitled ``Field Environmental Review Processing for HUD
Colonias Initiative (HCI) grants'' issued January 27, 1998.

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    (D) Grant Period. Recipients will have 36 months from the date of
funding to complete all project activities except the final evaluation
and reporting, fulfillment and audit requirements and final project
close-out.
    (E) Lead-Based Paint Hazard Control. All property assisted under
the Rural Housing and Economic Development program is covered by the
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) and
HUD's implementing regulations at 24 CFR part 35.

V. 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.
    (2) Rating. All applicants for funding will be evaluated against
the criteria below.
    (3) Ranking. Applicants will be ranked separately within each of
the two funding categories. Applicants will be selected for funding in
accordance with their rank order in each category. If two or more
applications are rated fundable and have the same score, but there are
insufficient funds to fund all of them, the applications(s) with the
highest score for Rating Factor 2 (Need and Extent of the Problem)
shall be selected. If applications still have the same score, the
highest score in the following factors will be selected sequentially
until one highest score can be determined, Rating Factor 3 (Soundness
of Approach), Rating Factor 1 (Capacity and Experience), Rating Factor
5 (Comprehensiveness and Coordination) and Rating Factor 4 (Leveraging
of Resources). To be eligible for funding in the Innovative category,
an application must have a minimum score of 25 points for the total
combined number of points for Rating Factors 1 and 3. To be eligible
for funding in the Capacity Building category, an application must have
a minimum score of 20 points for Rating Factor 3.
    (B) Initial screening. During the period immediately following the
application deadline, HUD will screen each application to determine
eligibility. Applications will be rejected if they:
    (1) Are submitted by ineligible applicants (including applicants
and subrecipients that do not meet the fair housing and civil rights
threshold requirement described in Section II(B) of the General Section
of the SuperNOFA);
    (2) Do not serve an eligible rural area; or
    (3) Propose a program for which significant activities are
ineligible. Such activities may include, but are not limited to, use of
RHED grant funds for income payments to subsidize individuals or
families, political activities, or general governmental expenses other
than expenses related to the administrative cost of the grant.
    (C) Rating Factors for Award Used to Evaluate and Rate
Applications. The factors for rating and ranking applicants, and
maximum points for each factor, are provided below. The maximum number
of points for this program is 102. This includes two EZ/EC bonus
points, as described in the General Section of the SuperNOFA.
    (D) Notification of Approval and Disapproval. HUD will notify you
whether or not you have been selected for an award. If you are
selected, HUD's notice to you of the amount of the grant award based on
the approved application will constitute HUD's preliminary approval,
subject to negotiation and execution of the grant agreement by HUD.

Rating Factor 1--Capacity of the Applicant and Relevant
Organizational Experience (15 points)

    This rating factor addresses the extent to which you have the
organizational resources necessary to successfully implement your
proposed work plan as further described in Rating Factor 3 in a timely
manner within the 36 month award period.
    Rating standards applicable to individual funding categories. The
two funding categories have different objectives. Accordingly, in
addition to the generally applicable rating standard discussed above,
different standards will be used to judge the experience and
qualifications of the applicants and any partners for each of the two
funding categories. HUD fully supports emerging organizations who
desire to develop internal capacity. Therefore, the following
categories will be evaluated:
    (1) For Capacity Building. (15 points) Team members, composition,
experience, organizational structure and management capacity. HUD will
evaluate the experience of your project director, core staff, any
outside consultants, contractors, subrecipients, and members of
coalitions to implement all of the work activities in your workplan as
they relate to innovative housing and economic development activities.
In evaluating your capacity to do the work, HUD will assess the recent
and relevancy of the prior work experience of each of the parties
listed above to execute the prescribed activities; the services the
consultants or other parties will provide which fill gaps in your
staffing structure to enable you to carry out the proposed workplan;
the experience of your project director in managing projects of similar
size, scope, and dollar amount; the lines of authority and procedures
that you have in place for ensuring that consultants and workplan goals
and objectives are being met and that beneficiaries are being
adequately served. In judging your response to this factor, HUD will
only consider work experience gained within the last 3 years. When
responding, please be sure to provide the dates, job titles and
relevancy of the past experience to work undertaken by the employee or
contractor under your proposed RHED application. The more recent,
relevant, and successful the experience is of your team members in
relationship to the workplan activities, the greater the number of
points that you will receive.
    (2) For Support for Innovative Rural Housing and Economic
Development Activities. (15 points)
    (a) (5 points) Team members, composition, and experience. HUD will
evaluate the experience of your project director, core staff, any
outside consultants, contractors, subrecipients, and members of
coalitions to implement all of the work activities in your workplan. In
evaluating your capacity to do the work, HUD will assess the recent and
relevancy of the prior work experience of each of the parties listed
above, to execute the prescribed activities; the services the
consultants or other parties will provide which fill gaps in your
staffing structure to enable you to carry out the proposed workplan;
the experience of your project director in managing projects of similar
size, scope, and dollar amount; the lines of authority and procedures
that you have in place for ensuring that consultants and workplan goals
and objectives are being met and that beneficiaries are being
adequately served. In judging your response to this factor, HUD will
only consider work experience gained within the last 7 years. When
responding, please be sure to provide the dates, job titles and
relevancy of the past experience to work undertaken by the employee or
contractor under your proposed RHED application. The more recent,
relevant, and successful the experience is of your team members in
relationship to the workplan activities, the greater the number of
points that you will receive.
    (b) (5 points) Organizational structure and management capacity.
HUD will evaluate the extent to which you can

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demonstrate your ability to manage a workforce composed of full time
and/or part-time staff as well as consultant staff and your ability to
work with community-based groups or organizations in resolving issues
related to affordable housing and economic development. In evaluating
this sub-factor, HUD will take into account your experience in working
with community-based organizations to design and implement programs
which address the above housing and economic development issues. The
more recent, relevant, and successful the experience is of your
organization and any participating entities, the greater the number of
points that you will receive.
    (c) (5 points) Experience with performance based funding
requirements. HUD will evaluate your experience in producing timely
products and reports in any previous grant programs undertaken with HUD
funds or other Federal, state, local or non-profit or for-profit
organization funds. In assessing points for this sub-factor, HUD
reserves the right to take into account your past performance in
meeting performance and reporting goals on any previous HUD awards.
Specific outcomes will be measured in terms of the number of living
wage jobs created or retained, housing units rehabilitated or
constructed and made available for low and moderate income persons, or
other relevant objective performance measures related to your previous
job experience and/or grant programs. Applicants that can demonstrate a
closer and greater linkage between the expected outcomes and the
previously generated outcomes will receive higher points for this sub-
factor.

Rating Factor 2--Need and Extent of the Problem (40 points)

    The Rural Housing and Economic Development program has been
designed to address the problems of rural poverty, inadequate housing
and lack of economic opportunity. This Factor addresses the extent to
which there is need for funding the proposed activities based on levels
of distress, and an indication of the urgency of meeting the need/
distress in the applicant's target area. In responding to this Factor,
applications will be evaluated on the extent to which the level of need
for the proposed activity and the urgency in meeting the need are
documented and compared, vis-a-vis, the target area, the county(ies)
and national data.
    (1) In applying this Factor, HUD will compare current levels of
need for the following areas affected by the project: first, in the
area (i.e. Census Tract(s) or Block Groups), immediately surrounding
the project site or the target area to be served by the proposed
project; second, in the county in which the project is to be located,
and third, in the nation. This means that an application that provides
data that show levels of need in the project area and the county,
expressed as a percent greater than the national average, will be rated
higher under this Factor. Notwithstanding the above, an applicant
proposing a project to be located outside the target area could still
receive points under the Need Factor if a clear rationale and linkage
is provided linking the proposed project location and the benefits to
be derived by persons living in more distressed area(s) of the
applicant's target area.
    (2) Applicants should provide data that address indicators of need
as follows:
    (a) Poverty Rate (15 points)--data should be provided in both
absolute and percentage form (i.e., whole numbers and percents) for
both the target area(s) and the county; an application that compares
the local poverty rate in the following manner to the national average
at the time of submission will receive points under this section as
follows:
    (i) Equal to but less than twice the national average = 5 points;
    (ii) Twice but less than three times the national average = 10
points;
    (iii) Three or more times the national average = 15 points.
    (b) Unemployment (10 points)--for both the target area and county:
    (i) Equal to but less than twice the national average = 2 points;
    (ii) Twice but less than three times the national average = 4
points;
    (iii) Three but less than four times the national average = 6
points;
    (iv) Four but less than five times the national average = 8 points;
    (v) Five or more times the national average = 10 points.
    (c) Other indicators of social and/or economic decline that best
capture the applicant's local situation (5 points)--examples that could
be provided under this section are information on the community's
stagnant or falling tax base, including recent commercial or industrial
closings, housing conditions, such as the number and percentage of
substandard and/or overcrowded units, rent burden (defined as average
housing cost divided by average income) for both the target area and
county, local crime statistics, etc. To the extent that the applicant's
Consolidated Plan, its Analysis of Impediments to Fair Housing choice
(AI), and/or its Anti-Poverty Strategy identify the level of distress
in the community and the neighborhood in which the project is to be
carried out, references to such documents should be included in
preparing the response to this Factor.
    (3) In rating applications under this Factor, HUD reserves the
right to consider sources of available objective data other than, or in
addition to, those provided by applicants, and to compare such data to
those provided by applicants and local crime statistics for both the
project site and the county, etc.
    (a) HUD requires use of sound and reliable data (e.g., U.S. Census
data, State statistical reports, university studies/reports that are
verifiable) to support distress levels cited in each application. A
source for all information along with the publication or origination
date must also be provided.
    (b) Updated Census data are available as follows for the listed
indicators:
    (i) Unemployment rate--estimated monthly for counties, with a two-
month lag;
    (ii) Population--estimated for incorporated places and counties,
through 1999;
    (c) Poverty rate--estimated every two years, with a three-year lag,
with 1997 data being the most recent available.
    (d) Demographics of Distress--Special Factors (10 points). Because
of the concern of HUD with meeting the needs of certain underserved
areas, you will be awarded a total of ten points if you are located in
or propose to serve one or more of the following populations, your
application demonstrates that 100 percent of the beneficiaries as
supported by RHED funds are one or more of the following populations,
and you specifically identify how they will be served, provided that
the proposed service area meets the definition of ``eligible rural
area'' as described in Section III(A)(2) of this NOFA:
    (i) Areas with very small populations in non-urban areas (2,500
population or less);
    (ii) Migrant and seasonal farmworkers;
    (iii) Indian Tribes;
    (iv) Colonias;
    (v) Appalachia's Distressed Counties; or
    (vi) the Lower Mississippi Delta Region (7 States and 219 counties/
parishes). For these underserved areas, you should ensure that the
populations that you serve and the documentation that you provide is
consistent with the information described in the above paragraphs under
this rating factor.

Rating Factor 3--Soundness of Approach (30 points)

    This factor addresses the overall quality of your proposed
workplan,

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taking into account the project and the activities proposed to be
undertaken; the cost-effectiveness of your proposed program; and the
linkages between identified needs, the purposes of this program and
your proposed activities and tasks. In addition, this factor addresses
your ability to ensure that a clear linkage exists between innovative
rural housing and economic development. In assessing cost-
effectiveness, HUD will take into account staffing levels,
beneficiaries to be served, a timetable for delivery of products and
reports and anticipated products. HUD is also interested in applicants
becoming self-sustaining so that activities can continue in the future
without relying on further assistance from the Department. You will
receive a greater number of points if your workplan is consistent with
the purpose of the RHED program, your program goals and the resources
provided.
    (a) (10 points) Management Plan. A clearly defined management plan
which identifies each of the projects and activities you will carry out
to further the objectives of this program; describes the linkage
between rural housing and economic development activities; and
addresses the needs identified in Factor 2, including needs that had
been previously identified in a statewide or local Analysis of
Impediments to Fair Housing Choice (AI) or Consolidated Plan. The
populations which were described in demographics that documented need
should be the same populations which will receive the primary benefit
of the activities, both immediately and in the long run. You should
address the timetable with measurable goals and objectives for carrying
out these activities; the method you will use for evaluating and
monitoring program progress on the activities and ensuring that the
activities will be completed on time and within your proposed budget
estimates. Applicants that have a clearly defined management plan and
which can produce results in less than 36 months will receive higher
rating points for this sub-factor. Your management plan should include
the budget breakout for each line item. You are required to provide
documented projected cost estimates from outside sources. Applicants
should submit their workplan on a spreadsheet showing each project,
activities under the project, and tasks (to the extent necessary or
appropriate) in your workplan with your associated budget estimate per
activity/task. Your workplan should provide the rationale for your
proposed activities and any assumptions used in determining your
project timeline and budget estimates. Failure to provide your
rationale may result in an application receiving zero points for lack
of clarity in the proposed management plan. Applicants that propose as
part of their workplan activities that address and support HUD's policy
priority areas for using technology advances in the construction or
design of homes produced with these funds, incorporates accessibility,
visitability and universal design principles in the design,
construction, or rehabilitation of home produced with these funds; or
creates and uses apprenticeship programs to create long term career
path opportunities for community residents, will receive higher rating
points under this sub-factor.
    (b) (10 points) Expected Outcomes. HUD will be assessing outcomes
resulting from your proposed workplan for the likelihood it will result
in measurable and achievable outcomes that will alleviate or address
the needs described in Rating Factor 2. You must include in this sub-
factor a qualitative or quantitative description of estimated outcomes
in order to receive points for this sub-factor. Outcomes may be
described in terms of the estimated number of new units constructed or
units rehabilitated; jobs retained or created with accompanying living
wages; loans financed; individuals trained, counseled or assisted; and/
or number of persons on welfare or under-employed trained in a career
path or apprenticeship program. The exact nature of the expected
outcomes will vary according to your proposed workplan. Applicants that
can demonstrate clearly identified outcomes and the means for ensuring
that outcomes will be tracked and are likely to be achieved will
receive a greater number of points. Applicants that propose activities
to increase their capacity to carry out innovative rural housing and
economic development activities should include among their projected
outcomes performance measures for maintaining the financial health and
integrity of the organization. Your proposed workplan and budget should
demonstrate a decreasing amount of RHED program funds over the life of
your program as a percentage of the total operating budget and should
include alternate sources of funding for producing desired outcomes.
Applicants that demonstrate a reduced dependence on RHED funding over
the life of their award will receive a greater number of rating points
for this sub-factor.
    (c) (10 points) Self-monitoring and Program Evaluation. Your
workplan will be evaluated to ensure that you have a mechanism for
monitoring and self-assessing your progress in meeting program goals
and objectives, ensuring that the integrity of the use of funds is in
accordance with OMB Cost Principles and record-keeping requirements and
the approved program budget. Therefore, your workplan should describe
and identify the specific steps that you will take to carry out a self-
monitoring function that meets these requirements. Applicants that
clearly define roles and responsibilities and steps to be taken to meet
this requirement will receive a greater number of rating points in the
evaluation.

Rating Factor 4--Leveraging Resources (10 points)

    This factor addresses the extent to which applicants for any of the
two funding categories have obtained firm commitments of financial or
in-kind resources from other Federal, State, local, and private sources
in an amount of at least fifty percent (50%) of the total project
budget. For every RHED dollar anticipated, you should provide the
specific amount of dollars leveraged. In assigning points for this
criterion, HUD will consider the level of outside resources obtained
for cash or in-kind services that support activities proposed in your
application. Fewer points will be awarded depending on the extent of
the percentage of leveraging in comparison with the total project
budget. This criterion is applicable to both funding categories under
this NOFA. The level of outside resources for which commitments are
obtained will be evaluated based on their importance to the total
program. You must provide evidence of leveraging by including in the
application letters of firm commitment to participate from any entity,
including your own organization, that will be providing matching funds
to the project. Each commitment described in the narrative of this
factor must be in accordance with the definition of ``firm commitment''
as defined in Section III(A)(2) of this NOFA.

Rating Factor 5--Comprehensiveness and Coordination (5 points)

    This factor addresses the extent to which your proposed program is
coordinated with other ongoing and related activities in the area you
propose to serve as well as your future strategy for continuing this
activity. The purpose of this factor is to ensure that whenever
possible, activities are not operated in isolation, but rather are
linked with related activities and organizations to

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improve the overall effectiveness of all efforts being undertaken as
part of your total effort. In evaluating this factor, HUD will consider
the extent to which you have coordinated your activities with other
known organizations, have participated or promoted participation in the
state or relevant jurisdiction's Consolidated Planning process and/or a
statewide or local Analysis of Impediments to Fair Housing Choice, and
have addressed your described need in a holistic and comprehensive
manner through linkages with other activities in the area or approved
plans and programs funded by other local organizations, state or local
governments, national non-profits or foundations. The more
comprehensive and relevant your activities are coordinated with other
ongoing and related innovative rural housing and economic development
activities in your service area, the more points you will receive.
    (a) (3 points) Describe the coordination of your proposed plan of
activities or future strategies for this proposed project with other
groups or organizations in order to best complement and mutually
support others' ongoing efforts or programs.
    (b) (2 points) Identify specific actions that have been taken or
will be taken to coordinate comprehensive solutions through meetings,
outreach efforts, information networks, planning processes and other
mechanisms with:
    (i) Other HUD funded projects/activities; and
    (ii) Other Federal, State or locally funded activities, including
those proposed or ongoing in the area.

EZ/EC Bonus Points (2 points)

    HUD will award two bonus points to all applications that include
documentation stating that the proposed eligible activities/projects
will be located in and serve Federally designated Rural Empowerment
Zones or Enterprise Communities (Rural EZs/ECs). A listing of Federally
designated Rural EZs and ECs is available on the Internet at http://
www.ezec.gov.

VI. Application Submission Requirements

    (A) Form of Application. You must submit a separate and distinct
application for each funding category for which you are applying under
this NOFA. All pages of the application shall be numbered sequentially.
Your application must include an original and two copies of the items
listed below.
    (B) Application Items. Your application must contain the items
listed in this section. These items include the standard forms,
certifications, and assurances listed in Section II(G) of the General
Section of the SuperNOFA that are applicable to this funding
(collectively, referred to as the ``standard forms''). The remaining
application items are forms (i.e., excluding such items as narratives),
referred to as the ``nonstandard'' forms, that can be found in the
Appendices to this program section of the SuperNOFA. The items are as
follows:
    (1) A transmittal letter;
    (2) A table of contents;
    (3) A signed SF-424 (application form);
    (4) A budget for all funds (Federal and Non-Federal) and a
breakdown of all Federal funds requested, in the format provided in the
Appendix to this NOFA;
    (5) Documentation of funds pledged in support of Rating Factor 4--
``Leveraging Resources'' (which will not be counted in the 15 page
limitation);
    (6) The required certifications (signed, as appropriate, and
attached as an Appendix);
    (7) Acknowledgment of the Application Receipt form (submitted with
application and returned to you as verification of timely receipt).
    (8) If you are a private nonprofit organization, a copy of your
organization's IRS ruling providing tax-exempt status under section 501
of the IRS Code of 1986, as amended.
    (9) The attached forms specifying:
    (a) Which category of funds, as described in Section II(C), you are
applying for. You must submit a separate and distinct application in
each category for which you applied;
    (b) Which of the five definitions of the term ``rural area'' set
forth in Section III(A)(2) of this NOFA applies to the proposed service
area and accompanying documentation as indicated on the form; and
    (c) Which special populations, as set forth in Rating Factor 2(d),
you intend to serve.
    (10) The Environmental Review Assurance.
    (11) Narrative Response to Factors for Award.
    (a) You must describe your organization and the assignment of
responsibilities for the work to be carried out under the grant (Rating
Factor 1).
    (b) You must describe the need and extent of the problem (Rating
Factor 2).
    (i) If you propose to create a new organization or institution
under the capacity building funding category, you must provide evidence
documenting that no existing organization or institution exists which
serves the need identified in the area.
    (c) You must submit a workplan which describes your soundness of
approach and the clear linkage between rural housing and economic
development (Rating Factor 3). In addressing this submission
requirement, you must:
    (i) Describe the activities you propose to undertake to address the
needs which have been identified, the linkage between rural housing and
economic development, and describe the specific outcomes you expect to
achieve.
    (ii) Include a management plan which identifies the specific
actions you will take to complete the proposed activities on time and a
budget in the format provided which explains the uses of both Federal
and non-Federal funds and the period of performance under the grant and
your ability to be self-sustaining, should you not be funded by HUD in
future RHED competitions.
    (iii) Include a discussion of the process by which the work
accomplished with the grant will be evaluated to determine if the
objectives of the grant were met. Be specific regarding the
qualifications of the evaluator and the process to be used.
    (d) You must identify the resources which will be leveraged by the
amount of this grant's funding that you are requesting and explain
their importance to the program (Rating Factor 4). To receive the
maximum number of points under Rating Factor 4 you must provide
evidence of firm commitments. The commitment can be contingent upon HUD
site approval following environmental review.
    (e) You must describe the extent to which your program reflects a
coordinated, community based process of identifying needs and building
a system to address these needs (Rating Factor 5).
    The total narrative response to all factors should not exceed 15
pages and must be submitted on 8.5" by 11" paper, using a 12 point
size, with lines double spaced and printed only on one side. Please
note that although submitting pages in excess of the page limit will
not disqualify your application, HUD will not consider or review the
information on any excess pages, which may result in a lower score or
failure to meet a threshold.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for
corrections to deficient applications.

VIII. Environmental Requirements

    Applications under this program NOFA are subject to the National

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Environmental Policy Act of 1969 and applicable related Federal
environmental authorities. (See 24 CFR part 50, as applicable). An
environmental review will be completed by HUD before the award of any
grant under this program.

IX. Authority

    The Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2001 Pub. L.
106-377, approved October 27, 2000).

Appendix A

    The non-standard forms, which follow are required for your RHED
application.
BILLING CODE 4210-32-P