Funding Availability for the Demolition and Revitalization of Severely Distressed Public Housing (HOPE VI)

Program Overview

Purpose of the Program. The purpose of this program is to provide
Revitalization Grants to enable public housing agencies (PHAs) to severely
distressed public housing projects and Demolition Grants to expedite
the demolition of obsolete and/or severely distressed public housing
units.
Available Funds. Approximately $583 million, as allocated in
accordance with Section II.(A) of this program section of the
SuperNOFA, below.
Eligible Applicants. PHAs that own public housing units, in
accordance with the requirements at Section III.(B) of this program
section of the SuperNOFA, below.
Application Deadlines. Revitalization grant applications are due on
May 27, 1999. Demolition grant applications are due on May 6, 1999.
(See Section V.(D)(2)(c), below, for important information regarding
the application deadline and deficiency cure period for Demolition
grants.)
Match. For Revitalization grants only, 5 percent of total grant
amount plus an additional match for Community and Supportive Services,
as described in Section IV.(B)(4) of this program section of the
SuperNOFA, below. No match is required for Demolition grants.

Additional Information

If you are interested in applying for a HOPE VI grant, please
review the following information, the General Section of this
SuperNOFA, and the HOPE VI Application Kit.

I. Application Due Date, Application Kits, Further Information, and
Technical Assistance

Application Due Date. HUD must receive your Revitalization grant
application at HUD Headquarters no later than 12:00 midnight Eastern
time on May 27, 1999. HUD must receive your Demolition grant
application at HUD Headquarters on or before 12:00 midnight Eastern
time on May 6, 1999. See Section V.(D)(2)(c) below for important
information regarding the application deadline and deficiency cure
period for Demolition grants.
Address for Submitting Applications. Send one copy of your
completed application to HUD Headquarters, 451 Seventh Street, SW, Room
4138, Washington, DC 20410, Attention: Elinor Bacon, Deputy Assistant
Secretary for Public Housing Investments. In addition, send two copies
of your completed application to your local HUD Field Office. HUD will
determine whether your application is timely filed based on the date
and time of receipt at HUD Headquarters, not the date and time that
copies are received in your local Field Office.
Mailed Applications. HUD will consider your application to be
timely filed if it is postmarked no later than 12:00 midnight on the
application due date and if HUD receives it at HUD Headquarters on or
within ten days of the application due date.
Applications Sent by Overnight/Express Mail Delivery. If you send
your application by overnight delivery or express mail, HUD will
consider it to be timely filed if HUD receives it at Headquarters on or
before the application due date. HUD will also consider it to be timely
filed if HUD does not receive it on the due date, but you can provide
documentary evidence that you placed the application in transit with
the overnight delivery service by no later than the application due
date.
Hand Carried Applications. If you wish to hand carry your
application to HUD Headquarters, you may bring it to Room 4138 of the
HUD Headquarters Building in Washington, DC any time between 8:45 am
and 5:45 pm Eastern Time before or on the application due date. You may
also hand carry your application to HUD Headquarters between 5:15 pm
and 12:00 midnight Eastern Time by delivering it to the South Lobby of
the HUD Headquarters Building.
Applications Submitted to HUD Field Offices. If you wish to hand
carry the required two copies of your application to your local HUD
Field Office, you may do so during normal business hours before the
application due date. On the application due date, business hours will
be extended to 6:00 pm. (Please see the Appendix A of the General
Section of the SuperNOFA for the hours of operation of the HUD Field
Offices.)
For Application Kits, Further Information and Technical Assistance.
If you are planning to apply for a HOPE VI grant under this program
section of the SuperNOFA, your application must conform to the
requirements of the Fiscal Year (FY) 1999 HOPE VI application kit. The
kit provides specific instructions, data forms to complete,
certification forms, and other information required in every
application. Each Revitalization application must contain no more than
75 pages of narrative and 100 pages of attachments. HUD will mail a
copy of the application kit to every eligible PHA. You may also obtain
copies of application kits and any supplementary information by
contacting the SuperNOFA Information Center at 1-800-HUD-8929. Persons
with hearing or speech impairments may call the Center's TTY number at
1-800-483-2209. When requesting an application kit, please refer to
HOPE VI and provide your name, address (including zip code), and
telephone number (including area code). The application kit also will
be available on the Internet through the HUD web site at http://
www.hud.gov.
For answers to your questions, you may call Mr. Robert Prescott,
Acting Director, Office of Urban Revitalization, Department of Housing
and Urban Development, 451 Seventh Street, SW, Room 4142, Washington,
DC 20410; telephone (202) 708-2822 (this is not a toll free number).
Persons with hearing or speech impairments may access this number via
TTY by calling the Federal Information Relay Service at 1-800-877-8339.

II. Amount Allocated

------------------------------------------------------------------------
Announced in
Allocation of this program
Type of assistance appropriation section of the
SuperNOFA
------------------------------------------------------------------------
Revitalization...................... $523,050,000 $523,050,000
Demolition.......................... 60,000,000 60,000,000
Section 8........................... 26,950,000 ................
Technical Assistance................ 15,000,000 ................
-----------------------------------
Total........................... 625,000,000 583,050,000
------------------------------------------------------------------------

[[Page 9728]]

(A) Revitalization Grants

Approximately $523 million of the FY 1999 HOPE VI appropriation
has been allocated to fund HOPE VI Revitalization grants and will be
awarded in accordance with this program section of the SuperNOFA. The
total amount you may request is limited to the sum of the amounts in
Section (1) below or the amount in Section (2) below, whichever is
lower.
(1)(a) Total Development Cost. The total cost of development,
including relocation costs, is limited to the sum of:
(i) HUD's Total Development Costs (TDCs) up to 100 percent of HUD's
published TDC limits for the costs of demolition and new construction,
multiplied by the number of HOPE VI Replacement Units; and/or
(ii) 90 percent of the TDC limits, multiplied by the number of
public housing units after substantial rehabilitation and
reconfiguration.
TDCs are limited by the HUD-published TDC Cost Tables, which are
issued for each fiscal year for the building type and bedroom
distribution for the public housing replacement units. You may not
request funds to replace units if you have previously received HOPE VI
or other public housing funds to replace those same units. However, you
may use any non-HUD funds to supplement HUD funds for any project cost.
Your application must disclose all prior HUD grant assistance received
for the project(s) you have targeted for revitalization.
(b) Community and Supportive Services. You may request an amount up
to 15 percent of the total HOPE VI grant to pay the costs of Community
and Supportive Services. These costs are in addition to the TDC
calculation in section II.(A)(1)(a) of this program section of the
SuperNOFA, above.
(c) Demolition and Site Remediation Costs of Unreplaced On-site
Units. You may request an amount necessary for demolition and site
remediation costs of units that will not be replaced on-site. This cost
is in addition to the TDC calculation in section II.(A)(1)(a) of this
program section of the SuperNOFA, above.
(d) Extraordinary Site Costs. You may request an amount necessary
to pay extraordinary site costs necessary to complete the project.
These costs are in addition to the TDC calculation in section
II.(A)(1)(a) of this program section of the SuperNOFA, above.
(2) Total Grant Amount. (a) You may submit one or two separate
Revitalization applications. The total amount you may request in one or
both applications may not exceed $35 million. If you submit two
applications, each application will be reviewed separately.
(b) Each of the one or two applications you submit may request
funds for only one public housing development. For the purposes of this
program section of the SuperNOFA, the definition of one ``development''
may also include more than one project, as long as those projects are
contiguous, immediately adjacent to one another, or within a quarter-
mile of each other at their closest. If you include more than one
project in a single application, you must provide clear documentation
that the projects are within a quarter-mile of each other.
(3) Within the grant limitations above, you may request funds for
as few or as many units as you wish in a single application. HUD will
review requests for small numbers of units on an equal basis with
requests for large numbers of units.
(B) Demolition Grants
Approximately $60 million of the FY 1999 HOPE VI appropriation has
been allocated to fund HOPE VI Demolition grants and will be awarded in
accordance with this program section of the SuperNOFA. If all of these
funds are not needed for demolition of obsolete and/or severely
distressed public housing, unused funds will be reallocated for HOPE VI
Revitalization grants.
(1) You may submit multiple applications;
(2) You may target units in only one public housing project per
application;
(3) You may submit more than one application targeting units in a
single housing project;
(4) You may request funds for as many or as few units in an
application as you wish, subject to the following provisions:
(a) Per Unit Limitation. You may receive no more than:
(i) $5,000 per vacant unit;
(ii) $6,500 per unit occupied as of the date of HOPE VI demolition
funding application submission. This amount includes relocation costs;
and
(iii) Reasonable costs for demolition of significant nondwelling
facilities related to the demolition of dwelling units, such as heating
plants, community buildings, or streets. These costs must be included
in an application for funding of demolition of public housing units;
you may not apply for them in a separate application.
(b) Overall Limitation. The sum of all Demolition funding
applications from a single applicant may not exceed $12.5 million, in
accordance with the evaluation procedures provided in section V.(D) of
this NOFA, below. It is recognized that the HOPE VI grant may not pay
for the total costs of relocation, abatement and demolition in all
cases, and that the PHA may have to provide additional funding from
other sources.
(2) You may apply for both HOPE VI Revitalization and Demolition
funding to demolish the same units. If HUD determines that both
applications are eligible for funding, HUD will use its discretion to
determine whether the demolition will be funded under a Revitalization
or a Demolition grant.
(C) Section 8
If necessary, HUD reserves the right to allocate up to $26,950,000
(approximately 3,500 units) for Section 8 tenant-based assistance for
public housing relocation or public housing replacement (including
units associated with HOPE VI grants). If any funds allocated for
Section 8 tenant-based assistance are not needed for such assistance,
those funds will be reallocated for HOPE VI Revitalization grants. If
you have already received Section 8 assistance to relocate residents
from obsolete or severely distressed units, you may still apply for
HOPE VI funds to physically replace those same units. If you will need
Section 8 assistance in order to carry out the proposed revitalization,
you must indicate the number of certificates needed in your HOPE VI
application. HUD will award Section 8 certificates needed for HOPE VI
sites after the HOPE VI selections have been made.
(D) Technical Assistance. The FY 1999 appropriation allocated $15
million to provide Technical Assistance in the planning, development,
and implementation of the HOPE VI program.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

(1) HOPE VI Revitalization grants enable public housing agencies
(PHAs) to:
(a) Improve the living environment for public housing residents of
severely distressed public housing projects through the demolition,
substantial rehabilitation, reconfiguration, and/or replacement of
severely distressed units;
(b) Revitalize the sites on which severely distressed public
housing projects are located and contribute to the improvement of the
surrounding neighborhood;
(c) Lessen isolation and reduce the concentration of low-income
families;
(d) Build sustainable mixed-income communities; and
(e) Provide well-coordinated, results-based community and
supportive

[[Page 9729]]

services that directly complement housing redevelopment and that help
residents to achieve self-sufficiency, young people to attain
educational excellence, and the community to secure a desirable quality
of life.
(2) HOPE VI Demolition Grants enable PHAs to expedite the
demolition of obsolete and/or severely distressed public housing units.
Any subsequent new construction or revitalization of any remaining
units must be funded from other resources.
(B) Eligible Applicants
An eligible applicant for any HOPE VI grant is:
(1) Any PHA that is not designated as ``troubled'' pursuant to
section 6(j)(2) of the United States Housing Act of 1937 (1937 Act);
(2) Any PHA for which a private housing management agent has been
selected, or a receiver has been appointed, pursuant to section 6(j)(3)
of the 1937 Act; and
(3) Any PHA that is designated as ``troubled'' pursuant to section
6(j)(2) of the 1937 Act and that:
(a) Was designated as troubled principally for reasons that will
not affect its capacity to carry out the proposed revitalization or
demolition;
(b) Is making substantial progress toward eliminating the
deficiencies that resulted in its troubled status; or
(c) Has sufficiently demonstrated to HUD that it is capable of
carrying out the proposed revitalization or demolition.

(C) Eligible Activities

(1) Revitalization Grants. Eligible activities are those eligible
under the Appropriations Acts for the Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies, for the
Fiscal Years 1993, 1994, 1995, 1997, 1998 and 1999; and the Omnibus
Consolidated Rescissions and Appropriations Act of 1996. In addition,
eligible HOPE VI activities are those included in the 1937 Act,
including Section 24 of the 1937 Act, as amended by Section 535 of the
Quality Housing and Work Responsibility Act of 1998 (Pub.L. 105-276,
112 Stat. 2461, approved October 21, 1998) (QHWRA).
Revitalization activities using HOPE VI funds must be for severely
distressed Public Housing projects. Accordingly, certain proposed
activities are subject to statutory requirements applicable to public
housing projects under the 1937 Act, other statutes, and the Annual
Contributions Contract (ACC). Within such restrictions, HUD seeks
innovative solutions to the long-standing problems of severely
distressed public housing projects. You may request, for the
revitalized development, a waiver of HUD regulations (that are not
statutory requirements) governing rents, income eligibility, or other
areas of public housing management that will permit you to undertake
measures that enhance the long-term viability of a development
revitalized under this program.
The following is a list of specific activities that are eligible
using HOPE VI Revitalization grant funds. Other activities may also be
eligible with HUD approval. If HOPE VI Revitalization funds are used
for any of the following activities, you must conduct them in
accordance with the following program requirements unless HUD has
provided written approval to follow other requirements.
(a) Total or partial demolition of buildings. Section 24 of the
1937 Act provides that severely distressed public housing demolished in
conjunction with a revitalization plan with HOPE VI funds is not
subject to Section 18 of the 1937 Act or regulations at 24 CFR Part
970. Instead, if you are selected to receive a HOPE VI Revitalization
grant, HUD will use information in your application to determine
whether the proposed demolition can be approved. If you are not
selected to receive a HOPE VI Revitalization grant, the information in
your application will not be used to process a request for demolition.
Please note that demolition is not a required element of a HOPE VI
Revitalization application.
(b) Disposition of property, in accordance with Section 18 of the
1937 Act and regulations at 24 CFR part 970;
(c) Public housing development through the acquisition of land, or
acquisition of off-site units with or without rehabilitation to be used
as public housing, in accordance with 24 CFR part 941;
(d) Major rehabilitation and other physical improvements of housing
and community facilities primarily intended to facilitate the delivery
of self-sufficiency, economic development, or other community and
supportive service opportunities for residents of the targeted
development, in accordance with 24 CFR 968.112(b), (d), (e), and (g)-
(o), 24 CFR 968.130, and 24 CFR 968.135(b) and (d);
(e) Construction of replacement rental housing, both on-site and
off-site, and community facilities primarily intended to facilitate the
delivery of self-sufficiency, economic development, or other supportive
services for residents of the targeted development and off-site
replacement housing, in accordance with 24 CFR part 941, including
mixed-finance development in accordance with subpart F;
(f) Homeownership activities, including: (i) Development of
replacement homeownership units that meet the regulatory requirements
of the Section 5(h) Program at 24 CFR part 906;
(ii) Development of replacement homeownership units that meet the
statutory requirements of the HOPE II program (42 U.S.C. 12871-80; Pub.
L. 101-625, secs. 421-31; 104 Stat. 4079, 4162-72);
(iii) Development of replacement homeownership units that meet the
statutory requirements of the HOPE III program (42 U.S.C. 12891-98;
Pub.L. 101-625, secs. 441-48; 104 Stat. 4079, 4172-80);
(iv) Replacement homeownership units that are made available
through housing opportunity programs for construction or substantial
rehabilitation of homes meeting essentially the same eligibility
requirements as the Nehemiah Program; and
(v) Other appropriate replacement homeownership activities,
including downpayment assistance for displaced residents and the
provision of closing costs.
(g) Management improvements;
(h) Reasonable costs for administration, planning, and technical
assistance, including fees and costs as specifically approved by HUD;
(i) Well-integrated Community and Supportive Services programs
designed to assist residents to attain educational excellence, gain
employment, and become self-sufficient, and related support programs
such as day care, after school activities, etc.;
(j) Economic development activities, including the costs of
infrastructure and site improvements associated with developing retail/
commercial facilities, but excluding hard development costs;
(k) Leveraging other resources, including additional housing
resources, retail supportive services, jobs, and other economic
development uses on or near the project that will benefit future
residents of the site; and
(1) Relocation, conducted in accordance with 24 CFR 970.5
(demolition) or 24 CFR 968.108 (rehabilitation), as appropriate.
(2) Demolition Grants. The following is a list of specific
activities that are eligible using HOPE VI Demolition grant funds.
Other activities may also be eligible with HUD approval. If HOPE VI
Demolition funds are used for any of the following activities, you must
conduct them in accordance with the following program requirements
unless HUD has provided written approval to follow other requirements.
(a) Demolition, including any required asbestos and/or lead-based
paint abatement, of dwelling units and nondwelling facilities, in
accordance with Section 18 of the 1937 Act and regulations at 24 CFR
part 970;
(b) Minimal site restoration after demolition and subsequent site
improvements to benefit the remaining portion of the project, to
provide project accessibility, or to make the site more saleable;
(c) Demolition of nondwelling facilities, only where related to the
demolition of dwelling units;
(d) Necessary administrative costs; and
(e) Relocation and other assistance related to the permanent
relocation of families under the approved demolition, conducted in
accordance with 24 CFR 970.5.

IV. Program Requirements

In addition to the requirements listed in section II. of the
General Section of this SuperNOFA, you must also meet the following
requirements.

(A) Program Requirements--All HOPE VI Applications

(1) Flood Insurance. In accordance with the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4001-4128), HUD will not approve your
application for a grant that proposes to provide financial assistance
for acquisition or construction (including rehabilitation) of
properties located in an area identified by the Federal Emergency
Management Agency (FEMA) as having special flood hazards, unless:
(a) The community in which the area is situated is participating in
the National Flood Insurance program (see 44 CFR parts 59 through 79),
or less than one year has passed since FEMA notification regarding such
hazards; and
(b) Where the community is participating in the National Flood
Insurance Program, flood insurance is obtained as a condition of
execution of a Grant Agreement and approval of any subsequent
demolition or disposition application.
(2) Coastal Barrier Resources Act. In accordance with the Coastal
Barrier Resources Act (16 U.S.C. 3501), HUD will not approve your grant
application if it targets properties in the Coastal Barrier Resources
System.
(3) Internet Access. If you are selected for funding, you must have
access to the Internet and provide HUD with email addresses of key
staff and contact people.
(4) Labor Standards. Davis-Bacon or HUD-determined wage rates apply
to development or operation of revitalized housing to the extent
required under Section 12 of the U.S. Housing Act of 1937. In the case
of demolition, Davis-Bacon wage rates apply to demolition followed by
construction on the site; HUD-determined wage rates apply to demolition
followed only by filling in the site and establishing a lawn. Under
Section 12, the wage rate requirements do not apply to individuals who:
perform services for which they volunteered; do not receive
compensation for those services or are paid expenses, reasonable
benefits, or a nominal fee for the services; and are not otherwise
employed in the work involved (24 CFR part 70). In addition, if other
Federal programs are used in connection with your HOPE VI Program,
labor standards requirements apply to the extent required by the other
Federal programs, on portions of the project that are not subject to
Davis-Bacon rates under the Act.
(5) Lead-Based Paint Testing and Abatement. All property assisted
under your HOPE VI Program is covered by the Lead-Based Paint Poisoning
Prevention Act (24 U.S.C. 4821 et seq.) and 24 CFR part 35; 24 CFR part
965, subpart H; and 24 CFR 968.110(k).
(6) Building Standards. (a) All activities that include
construction, rehabilitation, lead-based paint removal, and related
activities must meet or exceed local building codes. New construction
must comply with the latest HUD-adopted Model Energy Code issued by the
Council of American Building Officials. In addition, HUD encourages you
to set higher standards for energy and water efficiency in HOPE VI new
construction, which can achieve utility savings of 30 to 50 percent
with minimum extra cost. Upon request, HUD will provide technical
assistance and training in design and financing to assist your
authority, architects, and contractors in improving resource
efficiency.
(b) You are encouraged to design programs that incorporate
sustainable construction and demolition practices, such as the
dismantling or ``deconstruction'' of public housing units, recycling
demolition debris, and reusing salvage materials in new construction.
(7) Program Income. If you expect to receive program-related income
prior to grant closeout (e.g., from sale of homeownership Replacement
Units or the disposition of improved land), this income must be
reflected in your HOPE VI budget and used for program purposes.
(8) Environmental Review. (a) Under 24 CFR part 58, the responsible
entity, as defined in 24 CFR 58.2(a)(7), must assume the environmental
responsibilities for projects being funded by HOPE VI. If your
organization objects to the responsible entity conducting the
environmental review, on the basis of performance, timing or
compatibility of objectives, HUD will review the facts and determine
who will perform the environmental review. At any time, HUD may reject
the use of a responsible entity to conduct the environmental review in
a particular case on the basis of performance, timing or compatibility
of objectives, or in accordance with 24 CFR 58.77(d)(1). If a
responsible entity objects to performing an environmental review, or if
HUD determines that the responsible entity should not perform the
environmental review, HUD may designate another responsible entity to
conduct the review or may conduct the environmental review in
accordance with the provisions of 24 CFR part 50. After selection by
HUD for Joint Review, you must provide any documentation to the
responsible entity (or HUD, where applicable) that is needed to perform
the environmental review.
(b) If the environmental review is completed before HUD approval of
the HOPE VI Revitalization Plan (RP) and you have submitted your
request for release of funds (RROF), the RP approval letter will
require any conditions, modifications, prohibitions, etc. arising from
the environmental review.
(c) If the environmental review is not completed and/or you have
not submitted the RROF before HUD approval of the RP, the RP approval
letter will require you to refrain from undertaking, or obligating or
expending funds on, physical activities or other choice-limiting
actions, until HUD approves your RROF and the related certification of
the responsible entity (or HUD has completed the environmental review).
The RP approval letter will also tell you that the approved RP may be
modified on the basis of the results of the environmental review.

(B) Program Requirements--Revitalization Applications

(l) Severe Distress. The targeted public housing project or
building in a project must be severely distressed. The term ``severely
distressed public housing'' means a public housing project or building
in a project that fits the description of either all of the elements in
paragraph (a) of this section, or is described by paragraph (b) of this
section, as follows:

[[Page 9731]]

(a)(i) The public housing requires major redesign, reconstruction
or redevelopment, or partial or total demolition, to correct serious
deficiencies in the original design (including inappropriately high
population density), deferred maintenance, physical deterioration or
obsolescence of major systems, and other deficiencies in the physical
plant of the project;
(ii) The condition of the public housing project is a significant
contributing factor to the physical decline of and disinvestment by
public and private entities in the surrounding neighborhood;
(iii)(1) The public housing is occupied predominantly by families
who are very low-income families with children, are unemployed, and are
dependent on various forms of public assistance; or
(2) The public housing has high rates of vandalism and criminal
activity (including drug-related criminal activity) in comparison to
other housing in the area;
(iv) The public housing cannot be revitalized with funds from other
programs because the costs are much greater than the amounts that are
available;
(v) If only individual buildings of the project are targeted for
revitalization, they must be sufficiently separated from the remainder
of the project to make use of the building feasible; or
(b) Public housing that has been legally vacated or demolished is
deemed severely distressed if it met the description in paragraph (a)
of this section, above, and has not yet been replaced other than with
Section 8 certificates.
(c) To demonstrate that the targeted public housing project, or
buildings in a project, meets the severe distress requirement you must:
(i) Sign a certification, included in the HOPE VI Revitalization
Certifications as provided in Appendix A below, that the public housing
targeted in the application meets the definition of severe distress
provided in paragraphs (a) or (b) of this section, above; and
(ii) Include in your application a certification by an independent
engineer, signed on or before the application deadline date, that the
project meets the severe distress requirement in paragraph (a)(1) of
this section, above.
(2) Public Meetings. (a) You must conduct at least one training
session for residents on the HOPE VI development process and at least
three public meetings with residents and community members to involve
them in the process of planning the revitalization and preparing the
application. At least one meeting must be held after the publication
date of this HOPE VI NOFA.
(b) You must cover the following issues in the public meetings:
(i) The HOPE VI planning and implementation process;
(ii) The proposed physical plan, including site and unit design;
(iii) The extent of proposed demolition;
(iv) Community and supportive services;
(v) Relocation issues; and
(vi) Other proposed revitalization activities.
(c) To demonstrate that you have conducted the required public
meetings, you must include the following evidence of each meeting in
your application:
(i) The notices announcing the meetings. In addition to other means
of notification, at least one notice for each meeting must be placed in
a commercial newspaper or journal that serves both the public housing
project and the broader community;
(ii) A copy of the meeting sign-in sheets; and
(iii) A signed and notarized copy of the meeting minutes,
describing in detail the resident training and/or discussion regarding
the proposed plan.
(d) Submission of the documentation required of the meetings is a
curable item and is not rated. If you fail to properly document that
you have conducted all of the required meetings, after being provided
with the opportunity to correct any deficiencies in accordance with
section V of the General Section of this SuperNOFA, your application
cannot be considered for funding. You may not conduct a required
meeting after the application due date in order to cure a deficiency
identified by HUD.
(3) Community and Supportive Services.
(a) Each HOPE VI Revitalization application must propose a program
of Community and Supportive Services that meets the needs of residents,
and self-sufficiency programs that are designed to promote upward
mobility, independence, and improved quality of life for residents of
the targeted public housing development.
(b) Community and Supportive Services must be designed to serve
existing residents of the severely distressed project, residents who
have been displaced by revitalization activities, and new residents of
the revitalized units.
(c) Community and Supportive Services may also be provided to non-
public housing residents, as long as the primary users of the services
are residents as described in paragraph (b) of this section, above.
(d) Community and Supportive Service Programs may include, but are
not limited to:
(i) Substance/alcohol abuse treatment and counseling;
(ii) Health care services;
(iii) Domestic violence prevention;
(iv) Transportation as necessary to enable any participating family
member to receive available services or to commute to his or her place
of employment;
(v) On-site credit unions;
(vi) ``Life skills'' courses on topics such as parenting, family
budgeting, consumer education;
(vii) Child care that provides sufficient hours of operation and
serves appropriate ages as needed to facilitate parental access to
education and job opportunities and that stimulates children to learn
and be responsible citizens;
(viii) Employment training and counseling, such as the Step-Up and
Youthbuild Programs, that includes job training, preparation,
counseling, development, placement, and follow-up assistance after job
placement;
(ix) Motivational and self-empowerment training;
(x) Computer skills training;
(xi) Education, including remedial education, literacy training,
completion of secondary or post-secondary education, assistance in the
attainment of certificates of high school equivalency, and the
integration of modern computer technology into the education program;
(xii) Programs that promote learning for children from infancy,
created with strong partnerships with public and private educational
institutions;
(xiii) Mentoring for children, non-literate adults, potential
entrepreneurs, and English as a Second Language (ESL), as needed;
(xiv) Job placements for residents who complete adult education and
job training programs, as provided through partnerships with local
businesses;
(xv) Services and programs provided through results-oriented
partnerships with Empowerment Zones and Enterprise Community Boards and
economic development agencies and non-profit organizations; and
(xvi) Business development training, with the goal of establishing
resident-owned businesses.
(4) Match.
(a) Overall Match. The HOPE VI Revitalization Applicant
Certifications (Appendix A to this NOFA, below) include a certification
that if you are

[[Page 9732]]

selected for funding, you will provide resources other than HOPE VI
funds in an amount that is at least 5 percent of the HOPE VI grant
amount.
(b) Additional Community and Supportive Services Match. In addition
to the match requirement in paragraph (a) of this section, above, if
you use more than 5 percent of the HOPE VI grant for Community and
Supportive Services programs described in section IV.(B)(3) of this
program section of the SuperNOFA, above, you must certify that you will
provide resources other than HOPE VI funds in an amount that is equal
to the amount used over 5 percent.
(c) Matching Funds. Your matching funds may include amounts from
other Federal sources, any State or local government sources, any
private contributions, the value of any donated material or building,
the value of any lease on a building, the value of the time and
services contributed by volunteers, and the value of any other in-kind
services or administrative costs provided. Active involvement of the
city government in your HOPE VI plan is key to the success of the
program. Providing a strong city match is one way for a city to
demonstrate its commitment to the proposed development.
(5) Replacement Units.
(a) Rental units will be deemed Replacement Units and qualify for
operating subsidy only if they are to be placed under Annual
Contributions Contract and operated as Public Housing.
(b) Homeownership units will be deemed Replacement Units only if
they meet the requirements listed in Section III(C)(1)(f) of this
program section of the SuperNOFA, above.
(c) HOPE VI funds may not directly support mixed-finance units,
including tax credit units, which are not themselves to be placed under
ACC or to be sold as homeownership units as specified above.
(6) Timeliness of Construction. If selected, you will be held to
strict schedules and performance measures. If you fail to obligate
construction funds within the timeframes provided below, HUD may
withdraw grant funds. HUD will take into consideration those delays
caused by factors beyond your control when enforcing these schedules.
(a) You must enter into a binding General Contractor (GC) Contract
within 18 months from the date of HUD's approval of the Revitalization
Plan (RP). In no event may this time period exceed 24 months from the
date the Grant Agreement is executed.
(b) You must complete construction under the GC Contract within 48
months from the date of HUD's approval of the RP. In no event may the
time period for completion exceed 54 months from the date the Grant
Agreement is executed.

(C) Program Requirements--Demolition Applications

(1) Eligible Units. Public housing units to be demolished with HOPE
VI Demolition grant funds must meet one of the following criteria:
(a) The units must be targeted in an approved or submitted
Conversion Plan (i.e., a plan for removal of the obsolete and/or
severely distressed project from the public housing inventory in
accordance with the requirements at 24 CFR 971.7(b)). To meet this
requirement, you must have submitted a Conversion Plan to HUD on or
before the HOPE VI Demolition funding application due date. You must
meet the requirements of 24 CFR part 971 to meet this requirement; or
(b) The units must have been targeted in a HOPE VI Demolition
funding application that you submitted in FY 1998 but that HUD did not
fund solely because of a lack of funds; or
(c) The units must be approved by HUD for demolition in accordance
with 24 CFR part 970 on or before the application due date, but the
approved units have not yet been demolished. The demolition application
must be approved:
(i) If you have merely submitted a demolition application, your
HOPE VI application does not meet this requirement.
(ii) If HUD has approved your demolition application but HUD later
rescinded the approval at your request, your HOPE VI application does
not meet this requirement.
(2) Previous Demolition. You must not have an executed demolition
contract for or have previously demolished any of the targeted units.
(3) Previous Funding. You may not submit a HOPE VI Demolition
application for units that have been previously funded for demolition
with HOPE VI funds. HUD will determine whether the units have been
previously funded by looking at the most recent HUD-approved budget for
any HOPE VI Revitalization or Demolition grant for the same
development. If that grant budget shows that HOPE VI funds have been
budgeted for demolition of the units you have targeted in your HOPE VI
Demolition application, even if you have subsequently made an internal
decision not to fund the demolition with HOPE VI funds, your HOPE VI
Demolition application will not be considered for funding.
(4) Timeliness of Demolition. You must procure a demolition
contractor within six months from the date of ACC Amendment execution,
and complete the demolition within two years from the date of ACC
Amendment execution.

V. Application Selection Process

(A) Revitalization Threshold Criteria

In addition to any applicable threshold requirements listed in the
General Section of this SuperNOFA, your application must meet the
following threshold requirements to be considered for funding.
(1) Eligible Applicant. You must be an eligible Public Housing
Agency, as defined in Section III.(B) of this program section of the
SuperNOFA, above. If HUD has designated your housing authority as
troubled pursuant to section 6(j)(2) of the 1937 Act, HUD's Troubled
Agency Recovery Center will use documents and information available to
it to determine whether you meet the eligibility criteria in this
program section of the SuperNOFA.
(2) Severe Distress. The targeted public housing project, or
buildings in a project must be severely distressed, as defined in
section IV.(B)(1) of this program section of the SuperNOFA, above.
(3) Public Meetings. You must conduct at least one training session
and at least three public meetings in accordance with section IV.(B)(2)
of this program section of the SuperNOFA, above.

(B) Revitalization Application Evaluation

HUD's selection process is designed to ensure that HOPE VI
Revitalization grants are awarded to PHAs with the most meritorious
applications.
(1) Threshold and Completeness Review. HUD will screen each
application to determine if it is complete and meets the Threshold
Criteria in Section V.(A) of this program section of the SuperNOFA,
above. If necessary, HUD will contact you to provide missing
information, in accordance with the provisions of section V. of the
General Section of this SuperNOFA.
(2) Preliminary Rating and Ranking. (a) HUD will preliminarily
review, rate and rank each eligible application on the basis of the
rating factors described in Section V.(C) of this program section of
the SuperNOFA, below.
(b) After preliminary review, the following applications will be
deemed ``competitive:''
(i) Applications with a preliminary score above a base score that

[[Page 9733]]

encompasses all applications that represent approximately twice the
amount of funds available, and
(ii) Applications that propose revitalization of public housing
that was targeted in HOPE VI Revitalization applications submitted to
HUD in both the FY 1997 and 1998 HOPE VI Revitalization competitions
but were not selected for funding.
(3) Final Panel Review. (a) A Final Review Panel will:
(i) Assess each competitive application;
(ii) Assign the final scores; and
(iii) Recommend for funding the most highly-rated eligible
applications up to the amount of available funding.
(b) If two or more applications have the same score and there are
insufficient funds to select all of them, HUD will select for funding
the application(s) with the highest score for Rating Factor 3,
Soundness of Approach. If a tie still remains, HUD will select for
funding the application(s) with the highest score for the Capacity
rating factor. HUD will select further tied applications on the basis
of their scores in the Need, Leveraging Resources, and
Comprehensiveness and Coordination rating factors, in that order.
(c) HUD reserves the right to make adjustments to funding in
accordance with Section III.(E) of the General Section of this
SuperNOFA.
(d) HUD may not give competitive advantage to applications that
propose to use HOPE VI grant funds to pay judgments or undertake HOPE
VI revitalization activities in order to settle litigation.

(C) Revitalization Application Rating Factors.

The following are the factors HUD will use to rate and rank your
HOPE VI Revitalization application and the maximum points for each
factor. The maximum number of points for each Revitalization
application is 102, which includes two Empowerment Zone/Enterprise
Community (EZ/EC) bonus points, in accordance with section III.(C)(1)
of the General Section of this SuperNOFA.
Rating Factor 1: Capacity (20 Points Total)
This factor measures the capability and record of the applicant PHA
or any alternative entity you choose to serve as your representative
for managing large-scale redevelopment or substantial rehabilitation
projects and administering Community and Supportive Services and
management improvements. To ensure that revitalization efforts will
take place without delays due to problems in administration and
management, HUD will award the most points to applications that
demonstrate the highest degree of capacity to implement revitalization
in a timely manner upon grant award.
If you are selected for funding, HUD may require you to use an
outside entity as directed by HUD to carry out the revitalization
activities. HUD does not require you to select a developer and/or
Program Manager, if any, prior to submission of your application,
although you may choose to do so. Rather, you must demonstrate (1) your
current capacity to manage a large scale redevelopment and/or
substantial rehabilitation project, or (2) your ability to identify
needs in your current staffing and fill such gaps in order to
successfully implement your proposed program, and/or (3) your proposed
method for securing a program manager, and/or development partner to
implement your plan. The rating of the ``applicant'' or the
``applicant's organization and staff,'' unless otherwise specified,
will include any sub-contractors, consultants, subrecipients, and
members of consortia that are firmly committed to the project.
HUD will evaluate the information you provide in your application
when rating subfactors (1)-(3) below.
(1) Revitalization Capacity and Experience: 7 Points. To receive
maximum points, you and/or your proposed partners, including the
overall proposed development director and staff of the PHA, the
developer (if any), program manager (if any), consultants, and
contractors, must convincingly demonstrate your team's knowledge and
recent, successful experience in planning, implementing, and managing
large scale revitalization activities as described in the first two
paragraphs above, and meeting construction timetables.
(2) Community and Supportive Services Experience: 5 Points. To
receive maximum points, you and/or your proposed partners, including
the overall proposed development director and staff of the PHA, the
developer (if any), program manager (if any), consultants, and
contractors, must convincingly demonstrate your team's knowledge and
recent, successful experience in planning, implementing, and managing
the Community and Supportive Service Programs proposed in your
application.
(3) Property Management Experience: 5 Points. To receive maximum
points, you and/or your proposed partners, including the overall
proposed development director and staff of the PHA, the developer (if
any), program manager (if any), consultants, and contractors, must
convincingly demonstrate your team's knowledge and recent, successful
experience in property management of public housing. You must
thoroughly evaluate the obstacles, if any, that previously prevented
good management, as well as other problems that contributed to the
severe distress of the targeted project, and develop a new management
plan that will protect against such obstacles and problems in the
future and will improve the efficiency and economy of management.
(4) Obligation of Modernization Funds: 3 Points. To receive maximum
points, you must have obligated at least 90 percent of your FY 1997 and
prior year Modernization (e.g., Comprehensive Improvement Assistance
Program or Comprehensive Grant Program) amounts by the HOPE VI
application submission date. HUD will use the LOCCS disbursement system
as of the application due date to verify your obligation rate.
Rating Factor 2: Need (20 Points Total)
This factor addresses the extent to which you have demonstrated
that the targeted public housing project, or portion of the project, is
severely distressed.
To be considered for funding, your application must earn at least
12 of the 14 points available for elements (1)-(4) of this rating
factor, and your application must earn all 5 points for element (1),
Physical Distress.
For all elements under this factor, HUD will consider the extent to
which the information you provide is documented by objective,
measurable indicators.
In rating this factor, HUD will consider:
(1) Physical Distress: 5 Points. To receive maximum points, the
targeted project or portion of the project must be severely distressed
as defined in Section IV.(B)(1) of this SuperNOFA, above. If a targeted
site has been demolished or approved by HUD for demolition (including
sites approved for demolition under 24 CFR Part 970 (demolition) and 24
CFR Part 971 (Mandatory Conversion)) on or before the HOPE VI
application due date, your application will receive full points for
this subfactor. Indications of physical distress may include:
(a) Major structural deficiencies, including settlement, leaking
roofs, electrical systems not meeting code, high levels of lead based
paint, high levels of deferred maintenance, and

[[Page 9734]]

units that do not meet Housing Quality Standards;
(b) Major site deficiencies, including lack of reliable and
efficient heat and hot water, poor soil conditions, inadequate
drainage, deteriorated laterals and sewers, and inappropriate
topography;
(c) Design deficiencies, including inappropriately high population
density, isolation, indefensible space, inaccessibility for persons
with disabilities with regard to individual units, entrance ways, and/
or common areas;
(d) Environmental conditions that make the current site or a
portion of the site and its housing structures unsuitable for
residential use.
(2) Impact on the Neighborhood: 5 Points. To receive maximum
points, the public housing must be a significant current or potential
contributing factor to the physical decline of and disinvestment by
public and private entities in the surrounding neighborhood. If the
surrounding neighborhood is not currently distressed, you must
demonstrate that the targeted project is causing deterioration in the
neighborhood which will become worse if the project remains in its
current condition and that its revitalization would have a positive
effect on the neighborhood. It is critical to show concretely how the
public housing revitalization through HOPE VI will spur reinvestment in
the surrounding community and/or how the redevelopment will positively
impact and support the surrounding community. You should include a
careful strategy for comprehensive revitalization with housing
redevelopment as the impetus.
(3) Demographic Distress: 3 Points. To receive maximum points, the
public housing must:
(a) Be occupied predominantly by families who are very low-income
families with children, are unemployed and dependent on various forms
of public assistance; or
(b) Have high rates of vandalism and criminal activity (including
drug-related criminal activity) in comparison to other housing in the
area.
(4) Need for Funding: 2 Points. To receive maximum points, the
public housing cannot be revitalized with funds from other programs
because the costs are much greater than available funds. Indications
that you have inadequate funds are:
(a) If you receive Comprehensive Grant Program (CGP) funds and you
will use 50 percent or more of your CGP funds for one year to fund a
combination of emergency needs and critical needs at other public
housing projects. A critical need is defined as a modernization need
that is a threat to health and safety of residents but that does not
qualify as an emergency since there is no immediate threat to resident
health or safety. An example of a critical need is the repair of roofs
and plumbing in cases where failure to repair the problem would result
in a significant increase in the expenditure of funds in the future.
(b) If you receive CIAP funds and you do not have adequate leftover
CIAP funds (i.e., funds remaining from previous modernization programs
that are subject to reprogramming after completion of all approved work
items in the program) to perform the revitalization activities without
affecting current emergency or critical needs.
(5) Need for Affordable Housing in the Community: 2 Points. To
receive maximum points, there must be a need for affordable housing in
the community, and there must be an inadequate supply of other housing
available and affordable to accommodate families receiving tenant-based
assistance under Section 8. HUD will make this determination based on
your analysis of the need for affordable housing in the community on
the basis of the rental apartment listings in a newspaper of general
circulation in the community over the most recent complete month prior
to the HOPE VI application deadline, supplemented by additional
relevant data, if any.
(6) Documentation of Need: 3 Points. To receive maximum points, you
must document the level of need for your proposed activities and the
urgency in meeting the need with statistics and analyses contained in a
data source(s) that is sound and reliable. If your community's
Consolidated Plan and Analysis of Impediments to Fair Housing Choice
identify the level of the problem and the urgency in meeting the need,
you must include references to these documents in your response in
order to receive maximum points. If these documents are not applicable
to your jurisdiction or do not address the level of problem and the
urgency in meeting the need, specifically state as such.
If your proposed activities are not covered under the scope of the
Consolidated Plan and Analysis of Impediments to Fair Housing Choice,
explain why they are not covered and use other sound data sources to
identify the level of need and the urgency in meeting the need. Types
of other sources include, but are not limited to, Census reports,
Continuum of Care gaps analysis, law enforcement agency crime reports,
Public Housing Authorities' Five Year Comprehensive Plan, and other
sound and reliable sources.
Rating Factor 3: Soundness of Approach (40 Points Total)
This factor addresses the quality of your design and planning and
the cost-effectiveness of your proposed revitalization activities; your
plan's appropriateness in the context of the broader community; the
degree to which housing and non-housing aspects of your strategy are
integrated and well-segmented; how your plan fits into needs of the
local housing market; and the likelihood that a HOPE VI grant will
result in a revitalized site that will enhance the neighborhood in
which the project is located and enhance economic opportunities for
residents. HUD will award full points to applications that demonstrate
a clear relationship between the proposed activities, community assets
and needs, and the purpose of HOPE VI funding.
(1) Vision: 5 Points. To receive maximum points, you must present
the most innovative physical, social, and economic development approach
possible given your local conditions, constraints, and opportunities.
HUD will evaluate your Executive Summary to make this determination.
(2) Feasibility: 4 Points Total.
(a) Market. 1 Point. To receive this point there must be a
demonstrated considerable market for the revitalized and/or replacement
units of the type and size proposed. HUD will use a preliminary market
assessment letter prepared by an independent, third party, recognized
market resource firm or professional to make this determination.
(b) Development Costs. 2 Points. To receive maximum points, you
must show that:
(i) Hard costs are comparable to industry standards for the kind of
construction to be performed in the proposed geographic area;
(ii) Soft costs (developers' fees, PHA administration costs, legal
fees, program manager's fees, consultants' fees, etc.) are reasonable,
comparable to industry standards, and justified. HUD is particularly
concerned that soft costs be minimized and will review carefully the
proposed soft cost structure (i.e., is your reliance on outside
entities at an appropriate level given the scope of your project and
your in-house capacity), total soft costs as a percentage of overall
development costs, and any innovative means you propose to keep such
costs at a minimum so that as many HOPE VI resources as possible

[[Page 9735]]

can go into hard development and transforming the lives of the
residents;
(iii) Costs are realistic and developed through the use of
technically competent methodologies; and
(iv) Cost estimates represent a cost-effective plan for designing,
organizing and carrying out your proposed activities.
(c) Coherence and Consistency. 1 Point. To receive this point, the
information and strategies described in the application must be
coherent and internally consistent, particularly the data provided for
types and numbers of units, budgets and other financial estimates, and
other numerical information. It is critical that you carefully review
all numbers for unit mix, costs, etc. to make sure that all numbers are
consistent throughout the application. HUD will make this determination
based on your entire application.
(3) Lessen Concentration: 9 Points Total. The activities you
propose must lessen concentration of low-income households, create
opportunities for desegregation, and offer viable housing choices.
(a) Physical Plan and Design. 6 Points. To receive maximum points,
you must show that:
(i) The physical plan and design of the proposed on-site housing
will significantly reduce the isolation of low-income residents and/or
significantly promote mixed-income communities in well-functioning
neighborhoods;
(ii) Any plans for off-site housing will lessen concentration of
low-income residents and create opportunities for desegregation by
actively ensuring that locations of housing will not be in
neighborhoods with high levels of poverty and/or high concentrations of
minorities. (You do not have to have selected the precise location of
off-site units in your application to receive full points for this
element.);
(iii) For both on-site and any off-site units, the plan will
increase access to municipal services, jobs, mentoring opportunities,
transportation, and educational facilities; i.e., the physical plan and
services strategy are integrated;
(iv) Proposed new units and buildings are designed in a creative
way that ensures that they blend into and enrich the surrounding
neighborhood. Design elements and amenities present in houses in the
broader community are incorporated into the revitalized homes and will
appeal to the market segments for which they are intended.
(b) Section 8. 3 Points. To receive maximum points, you must
propose to provide assistance to residents of the targeted development
receiving Section 8 certificates and vouchers with relocation
assistance and smooth the transition from public to private housing for
relocatees and members of their new communities. Such activities
include:
(i) Helping Section 8 assistance holders find housing in non-
poverty areas;
(ii) Conducting programs designed to prepare residents for the
transition to private rental housing;
(iii) Involving faith-based, non-profit and/or other institutions
and/or individual members of the community that relocatees choose to
move into, in order to ease the transition and minimize the impact on
the neighborhood. HUD will view favorably innovative programs such as
community mentors, support groups, and the like;
(iv) Tracking families receiving Section 8 assistance;
(v) Providing Community and Supportive Service program support to
Section 8 relocatees to achieve self-sufficiency;
(vi) Offering eligible residents who have been given Section 8
relocation assistance as a result of HOPE VI revitalization
opportunities to return to the revitalized units.
(4) Community and Supportive Services: 5 Points
This factor evaluates the quality of your proposed Community and
Supportive Services Programs, as required and described in Section
IV.(B)(3) of this program section of the SuperNOFA, above, and gauges
the probability that the Community and Supportive Services Programs you
propose will result in ``living wage'' jobs, economic development, and
educational advancements which are quantifiable and long-lasting. You
are encouraged to be innovative and to create results-based programs
which break new ground and can serve as national models.
You must implement public housing revitalization in tandem with the
principles of welfare reform, self-sufficiency, and educational
achievement. Not only must the physical environment meet the needs of
residents, but the social environment must encourage and enable low-
income residents to achieve long-term self-sufficiency, particularly
for persons enrolled in welfare-to-work programs. To that end, it is
crucial that local welfare agencies are part of your HOPE VI
partnership. Many HOPE VI residents are directly affected by Temporary
Assistance to Needy Families (TANF), making these self-sufficiency
efforts critical to their success. You must design your Community and
Supportive Services Programs not only for residents remaining on-site,
but also for residents who have relocated to other PHA units or to
Section 8 housing, and for new residents of the revitalized units.
To receive maximum points, your proposed Community and Supportive
Services Programs must:
(a) Identify objectives that are results-oriented, with measurable
goals and outcomes that will result in ``living wage'' jobs and
educational advancements;
(b) Demonstrate consistency with state and local welfare reform
requirements and goals;
(c) Be well integrated with the development process, both in terms
of timing and the provision of facilities to house on-site service
programs;
(d) Be of an appropriate scale, type, and variety of services to
meet the needs of residents remaining on-site, residents who have
relocated to other PHA units or Section 8 housing, and new residents of
the revitalized units;
(e) Demonstrate an effective use of technology;
(f) Incorporate the enforcement of Section 3, both in the area of
hiring residents from the HOPE VI site and in contracting with Section
3 firms;
(g) Be developed in response to a rigorous resident needs
identification process and directly respond to the identified needs;
(h) Be coordinated with the efforts of other service providers and
agencies in your locality; and
(i) Be sustainable after the grant term has expired.
(5) Evaluation: 2 Points
To receive maximum points, you must propose to work with local
universities and other institutions of learning, foundations, and/or
others to evaluate the performance and impact of your proposed HOPE VI
revitalization. Where possible, HUD encourages you to form partnerships
with Historically Black Colleges and Universities (HBCUs) and Hispanic-
Serving Institutions (HBIs), Community Outreach Partnership Centers
(COPCs), others in HUD's University Partnerships Program. Areas for
evaluation might include such issues as:
(a) The impact of your HOPE VI effort on the lives of the
residents;
(b) The nature and extent of economic development generated;
(c) The effect of the revitalization effort on surrounding
communities, including spillover revitalization activities, property
values, etc.;
(d) Your success at integrating physical and non-physical
(Services) aspects of your strategy.
(6) Resident and Community Outreach and Involvement: 5 Points

[[Page 9736]]

In addition to the Threshold requirement for public meetings
provided in Section IV.(B)(2) of this program section of the SuperNOFA,
above, this rating subfactor evaluates the nature, extent, and quality
of the resident and community outreach and involvement you have done by
the time your application is submitted, as well as your plans for
continued and/or additional outreach and involvement. HUD will evaluate
your efforts to include affected residents and members of the
surrounding community in the planning and development of your
application.
To receive maximum points, you must demonstrate that you have:
(a) Communicated regularly with affected residents and members of
the surrounding community about your application and that you have:
(i) Included all interested parties, especially affected residents
and members of the surrounding community, in the development of your
application;
(ii) Developed specific plans for continued or different
involvement and participation in the planning and implementation of
revitalization activities if your application is successful;
(iii) Scheduled informational and planning meetings with affected
residents and other interested parties during the development of your
application at frequent and convenient times; and
(iv) Announced meetings in ways that are designed to generate the
most participation. Methods of announcing upcoming meetings include,
but are not limited to:
(1) Publishing notices of meetings in newspapers of local
distribution;
(2) Hand distributing flyers to residences and locations likely to
attract notice;
(3) Posting meeting information in adequate time to allow
participants to plan to attend;
(4) Addressing the language needs of affected residents;
(5) Making meetings and information available to persons with
disabilities.
(b) Communicated effectively with affected residents and members of
the surrounding community and that you have:
(i) Provided training and technical assistance on the HOPE VI
development process and general principles of development to affected
residents to enable them to participate meaningfully in the development
of your application, and developed plans to provide further training
and technical assistance if your application is successful;
(ii) Provided information to affected residents and other
interested parties about your planned revitalization;
(iii) Provided affected residents with substantive opportunities to
participate in the development of your HOPE VI plan;
(iv) Incorporated input and recommendations of interested parties,
especially affected residents, into your application;
(v) Generated support for your application among interested
parties;
(vi) Recognized and addressed dissenting viewpoints among affected
residents and other interested parties. Your application will not lose
points if there has been opposition to your plan, but may lose points
if you do not demonstrate that any such opposition has been addressed;
and
(vii) Provided status reports on the development of your
application.
(7) Operation and Management Principles and Policies: 5 Points.
(a) Self Sufficiency and Economic Diversity. To receive maximum
points, you must propose operation and management principles and
policies to be applied to on-site public housing and any on-site or
adjacent assisted housing that will encourage residents to move in,
move up, and move on. Such principles must:
(i) Complement self-sufficiency programs and result in a mix of
residents in the revitalized development who have a range of incomes,
including substantial numbers of working residents;
(ii) Reward work and promote family stability by promoting positive
incentives such as income disregards and ceiling rents;
(iii) Promote economic and demographic diversity by instituting a
system of local preferences; and
(iv) Encourage self-sufficiency by including lease requirements
that promote resident involvement in the tenants association, community
service, self-sufficiency, and transition from public housing.
(b) Safety and Security. To receive maximum points, you must
demonstrate that your proposed operation and management principles and
policies will provide greater safety and security by:
(i) Instituting tough screening requirements;
(ii) Enforcing tough lease and eviction provisions;
(iii) Enhancing on-going efforts to eliminate drugs and crime from
neighborhoods through collaborative efforts with local law enforcement
agencies and local United States Attorneys and program policy efforts
such as ``One Strike and You're Out,'' the ``Officer Next Door''
initiative, the Department of Justice ``Weed and Seed'' programs, or
HUD's ``Operation Safe Home'' and Drug Elimination programs;
(iv) Improving the safety and security of residents through the
implementation of defensible space principles, anti-crime measures, and
the installation of physical security systems such as surveillance
equipment, control engineering systems, etc.;
(v) Improving the safety of children by promoting the concept of
healthy homes. Healthy homes activities are described in Section VI(D)
of the General Section of this SuperNOFA.
(8) Affirmatively Furthering Fair Housing: 5 Points. To receive
maximum points, you must affirmatively further fair housing through the
physical design of the revitalized units, the location of new units,
and marketing of housing that will encourage diversity. You are
encouraged to work with local advocacy groups which represent
individuals with disabilities, the elderly, and other special needs
populations to further these goals.
(a) Accessibility. (i) Accessibility Requirements. The design of
your proposed new construction and/or rehabilitation of housing must
conform to the civil rights statutes and regulations required in
Section II.(B) of the General Section of this SuperNOFA.
(ii) Accessibility Priorities. HUD encourages you to promote
greater opportunities for housing choice by implementing the following
accessibility activities:
(1) Make at least 5 percent of for-sale units accessible to
individuals with mobility disabilities and 2 percent of for-sale units
accessible to individuals who have visual or hearing disabilities;
(2) Provide one-bedroom accessible rental units for single
individuals with disabilities so that they too can live in the
revitalized community;
(3) Implement innovative designs and room configurations,
particularly for homeownership housing, which are both accessible to
disabled residents and marketable to non-disabled households;
(4) Provide for accessibility modifications, where necessary, to
Section 8 units of residents who have been relocated out of the
targeted project due to revitalization activities.
(iii) Visitability. HUD encourages you to meet the visitability
standards adopted by HUD that apply to units not otherwise covered by
the accessibility requirements. The elements of visitability are
described in Section VI.(C) of the General Section of this

[[Page 9737]]

SuperNOFA and in the HOPE VI Application Kit Glossary.
(iv) Adaptability. HUD encourages you to meet the adaptability
standards adopted by HUD at 24 CFR 8.3 that apply to those units not
otherwise covered by the accessibility requirements. The elements of
adaptability are included in the HOPE VI Application Kit Glossary.
(b) Diversity. To receive maximum points, program activities must
aid a broad diversity of eligible residents, including the elderly, the
disabled, etc. HUD will also evaluate your efforts to increase
community awareness in a culturally sensitive manner through education
and outreach, as applicable. Describe specific steps to address the
elimination of impediments to fair housing that were identified in your
jurisdiction's Analysis of Impediments to Fair Housing Choice, remedy
discrimination in housing, or promote fair housing rights and fair
housing choice. Your marketing and outreach activities should be
targeted to all segments of the population on a nondiscriminatory
basis, promote housing choice and opportunity throughout your
jurisdiction, and contribute to the deconcentration of minority and
low-income neighborhoods.
Rating Factor 4: Leveraging Resources (10 Points Total)
In accordance with Section IV(B)(4) of this program section of the
SuperNOFA, above, all HOPE VI Revitalization grant funds are subject to
a matching requirement. By signing the HOPE VI Revitalization Applicant
Certifications (Appendix A to this NOFA, below), you are certifying
that, if selected, you will provide matching funds which can be
combined with HUD funds to carry out revitalization activities,
including Community and Supportive Services Programs. Although firm
commitments for these matching resources are not required in your
application, if funded you will be required to show evidence of
matching resources through your quarterly reports as your project
proceeds.
Although you will provide evidence of matching resources during the
course of the grant term, you must provide evidence of any currently-
available funds in order to earn points under this rating factor. Your
application will be rated based on the extent to which you have secured
additional resources now for proposed activities which can be added to
HUD funds to achieve program purposes, and will secure additional
resources. It is important that you do not just seek endorsements from
organizations or describe vendor relationships, but actively enlist
individuals and/or entities who will provide significant financial and/
or other assistance to the revitalization effort.
In rating this factor, HUD will evaluate the strength of your
partnerships and relationships with other entities, and the extent
those other entities will provide significant, firm funding commitments
and other resources if HOPE VI funds are awarded.
In your application, you must provide evidence of each proposed
resource by including letters of firm commitments, memoranda of
understanding, agreements to participate, or letters of support. If you
cannot secure firm commitments, the entity must describe why the firm
commitment cannot be made at the current time and affirm that your PHA
and your HOPE VI project meet all eligibility criteria for receiving
the resource. This is particularly important with regard to Low Income
Housing Tax Credits (LIHTC). All such documentation must include the
donor organization's name, the specific resource proposed, and the
purpose of that resource. Letters providing only general support of the
revitalization effort, and letters offering to provide vendor services
will not count toward this rating factor. The commitment must be signed
by an official of the organization legally authorized to make
commitments on behalf of the organization. HUD will evaluate the
strength of commitment that the letters articulate.
If you propose to use Low Income Housing Tax Credits (LIHTC) as a
part of your financing, provide in your application a letter from your
State Housing Finance Agency that provides information from the state
allocation plan regarding the total amount and type (4 percent vs. 9
percent) of tax credits available, any setasides available for PHAs,
per project funding limits, the schedule of funding rounds,
verification that your project meets eligibility criteria, and other
pertinent information.
(1) Development Resources: 6 Points. HUD seeks to fund mixed-
finance development that will use HOPE VI funds to leverage other
development funds, resulting in revitalized public housing, other types
of assisted and market rate housing, and retail and economic
development. To receive full points, you must actively enlist other
stakeholders who are vested in and can provide significant financial
assistance to your revitalization effort. In rating this factor, HUD
will consider the amount, breadth, and firmness of financial
commitments for development purposes.
Sources of development resources may include public and private
non-profit and for-profit entities with experience in the development
and/or management of low- and moderate-income housing; foundations;
LIHTC syndicators; State Housing Finance Agencies; nonprofit
organizations; private debt and equity; and banks or insured loans. If
your PHA is also a redevelopment agency or otherwise has citywide
responsibilities, HUD will consider the City's housing and/or
redevelopment agency or other functional area to be a separate entity
with which you are partnering.
(2) Community and Supportive Services Program Resources: 4 Points.
It is critical that you form partnerships to achieve quantifiable self-
sufficiency goals and that you leverage scarce HOPE VI self-sufficiency
funds with other funds. It is essential that you provide for the
sustainability of Community and Supportive Services programs so that
they may continue after the HUD funds have been expended.
HUD encourages you to create public/private partnerships with hard
commitments from and accountability to organizations skilled in the
delivery of services to residents of public housing. It is particularly
important to create partnerships with local Boards of Education which
will provide the foundation for young people from infancy through high
school graduation to succeed in academia, the professional world, and
mainstream society. You are encouraged to form partnerships with
organizations such as local businesses, faith-based organizations, non-
profit organizations, foundations, banks, welfare departments, Private
Industry Councils, Departments of Transportation, Police, and economic
development agencies, charitable, fraternal, and business
organizations, Weed and Seed programs, and individual employers.
Identify prospective employers, the number and types of jobs they
propose to make available, the kind and level of training needed to
prepare residents for such jobs and how such training will be provided.
Resources may include financial resources such as Federal, State,
or local government grants or private contributions. Resources may also
include in-kind contributions such as the value of any donated material
or building; the value of any lease on a building; the value of the
time and services contributed by volunteers, staff, supplies, municipal
or county

[[Page 9738]]

government services and infrastructure; and the value of any other in-
kind services or administrative costs provided which are critical to
the successful transformation of the project and the lives of its
residents.
In rating this factor, HUD will consider the amount, breadth and
firmness of financial and in-kind commitments for Community and
Supportive Services Programs, and the sustainability of such programs
during the life of the grant and after HOPE VI funds have been
expended.
Rating Factor 5: Comprehensiveness and Coordination (10 Points Total)
This factor evaluates your efforts to address the need for
revitalized public housing in a holistic and comprehensive manner by
creating linkages with other activities in the community, incorporating
the revitalization of public housing into the overall plans for
revitalization of the broader community, and participating or promoting
participation in the community's Consolidated Planning process.
(1) Coordination: 5 Points. To receive maximum points, you must
indicate that you have and/or will:
(a) Coordinate your proposed activities with related activities of
other groups or organizations prior to submission in order to best
complement, support and coordinate all known related activities. For
example, it is important to know about changes in transportation,
infrastructure, land use, and other revitalization issues when planning
the locations of revitalized housing to prevent future site problems.
(b) Take specific steps to share information about solutions and
outcomes with others.
(c) Take specific steps to develop linkages to coordinate
comprehensive solutions through meetings, information networks,
planning processes or other mechanisms with other HUD-funded projects/
activities outside the scope of those covered by the Consolidated Plan,
such as civil rights organizations; Local Area Agency on Aging, if
applicable; local agencies and organizations serving persons with
disabilities; Local Weed and Seed task force if the targeted project is
located in a designated Weed and Seed area; HUD drug elimination,
welfare-to-work, and self-sufficiency programs; other Federal, State or
locally funded activities, including those proposed or on-going in the
community; and Local law enforcement agencies and the local United
States Attorney.
(d) Forge relationships with local Boards of Education,
institutions of higher learning, non-profit or for-profit educational
institutions and public/private mentoring programs that will lead to
new or improved educational facilities and improved educational
achievement of young people in the revitalized development from birth
through higher education.
(2) Community Planning: 5 points. To receive maximum points, you
must indicate that you have or that you will take specific steps to
become active in the community's Consolidated Planning process
(including the Analysis of Impediments to Fair Housing Choice)
established to identify and address the need for revitalized public
housing, that your plans are tied to revitalization plans for the
broader community and the jurisdiction as a whole, and that your plans
are consistent with plans or organizing efforts in the immediate,
surrounding neighborhoods.

(D) Demolition Application Evaluation

(1) Demolition Funding Categories. HUD will select Demolition
applications on a first-come, first-served basis, by an application's
Funding Tier, Priority Group, and Ordinal. Demolition applications are
not rated.
(a) Funding Tiers. If you wish to request more than $7.5 million
for HOPE VI Demolition grants, you must divide your applications and
identify each of your applications as either Tier 1 or Tier 2. If funds
remain after all Tier 1 applications are funded, HUD will begin to fund
Tier 2 applications, in accordance with the procedures in Section
V.(D)(3) of this program section of the SuperNOFA, below.
(i) The total amount requested in all of your Tier 1 applications
may not equal more than $7.5 million.
(ii) The total amount requested in all of your Tier 2 applications
may not equal more than $5 million.
(iii) The total amount requested in all your applications, both
Tier 1 and Tier 2, may not exceed $12.5 million.
(b) Priority Groups. You must also identify each of your
applications by its appropriate Priority Group, as described below.
Each application must target units of a single Priority Group, e.g., do
not include Priority Group I units in the same application as Priority
Group 2 units.
(i) Priority Group 1: HOPE VI Demolition funding applications that
target units included in a Conversion Plan (i.e., plan for removal of
the obsolete and/or severely distressed development from the public
housing inventory in accordance with the requirements at 24 CFR
971.7(d)) that HUD has approved on or before the HOPE VI Demolition
funding application due date under this program section of the
SuperNOFA. Please note that the term ``Conversion Plan'' used in this
program section NOFA is the plan required by 24 CFR part 971.
(ii) Priority Group 2: HOPE VI Demolition funding applications that
target units that were included in a HOPE VI Demolition funding
application that you submitted in FY 1998 and that HUD deemed eligible
for funding, but could not select for lack of sufficient funds.
(iii) Priority Group 3: (1) HOPE VI Demolition funding applications
that target units included in a Conversion Plan (i.e., plan for removal
of the obsolete and/or severely distressed development from the public
housing inventory in accordance with the requirements at 24 CFR
971.7(d)) that you have submitted to HUD on or before the HOPE VI
Demolition funding application due date under this program section of
the SuperNOFA.
(a) If you submit a HOPE VI Demolition funding application for
units that are targeted in a Conversion Plan that was submitted under
24 CFR Part 971 but not yet approved (Priority Group 3), and the
Conversion Plan is subsequently approved (before the application
deadline), you may revise your application and it will be reclassified
as Priority Group 1. HUD will change the Ordinal to the Ordinal
corresponding to the date that the revised application was received.
(b) If you submit a Conversion Plan but you are not eligible under
24 CFR part 971, your HOPE VI Demolition will not be considered to be
in Priority Group 3. Please check with your local HUD Office before
submitting a HOPE VI Demolition funding application based on submission
of a Conversion Plan.
(2) Applications that target units that you included in a HUD-
approved 24 CFR part 970 Demolition Application. If you have submitted
a Part 970 Demolition Application to HUD's Special Applications Center
(SAC) but it has not yet been approved by HUD, your HOPE VI Demolition
application will not be considered complete and you will not receive an
Ordinal until your Part 970 Demolition application is approved.
(c) Ordinals. Upon receipt, HUD will assign each application an
Ordinal (i.e., ranking number) that reflects the date HUD Headquarters
received the application. Ordinals correspond to business days,
starting with the date HUD receives the first Demolition funding
application and ending on the application due date, as specified in
Section I of this program section of the SuperNOFA, above. HUD will
consider all applications received on the same

[[Page 9739]]

date as received at the same time on that date, and those applications
will all be assigned the same Ordinal.
(2) Demolition Screening. (a) Within a day after HUD receives your
application, HUD will screen the application to ensure that it has met
each HOPE VI Demolition funding program requirement listed in Section
IV.(C) of this program section of the SuperNOFA, above, and that it
includes each application submission requirement listed in Section
VI.(B) of this program section of the SuperNOFA, below.
(b) If HUD determines that an application is not eligible for
funding (e.g., the applicant is not a PHA), HUD will not consider the
application further and will immediately notify the applicant that the
application has been rejected.
(c) If HUD determines that an application is eligible but
incomplete, within one day of receipt of the application, HUD will
contact you in writing by fax (followed up with a hard copy by mail) to
request the missing information. If HUD finds your application and
other applications received on the same day to be incomplete, HUD will
notify all such applicants of their missing items on the same day.
Since Demolition funding applications are not rated, you may submit
information to complete your application at any time before the
Demolition funding application deadline date. However, if your
application is received on the deadline date and it is missing a
required submission, you will have no opportunity to submit any missing
item after the deadline date and your application will be ineligible
for funding.

Please Note: This provision means that the nearer to the
deadline you submit your application, the less time you will have to
correct any deficiencies, and if HUD receives your application ON
the deadline date and there is a deficiency, that application will
NOT be considered for funding. You are advised to submit your
application as soon as possible, in the event that HUD identifies a
deficiency that you need to correct.

(d) When HUD receives information in response to its letter asking
for missing information and determines that it completes the
application, HUD will change the application's Ordinal to the Ordinal
corresponding to the date that HUD received the information. If the
information does not make the application complete, HUD will treat the
submitted information in the same manner as a newly-submitted
application and send you another letter requesting the missing
information, up until the deadline date.
(e) Notwithstanding the above, if HUD approves a demolition
application or a conversion plan on the day before or on the
application deadline date, the requirements to provide evidence of
these approvals will be considered to be met and you will not be
required to submit your approval letters from HUD.
(3) Funding. HUD will award HOPE VI Demolition grants in the
following order, based on fund availability.
(a) HUD will fund eligible Tier 1, Priority Group 1 applications by
Ordinal.
(b) If funds remain after HUD has funded all eligible Tier 1,
Priority Group 1 applications, HUD will fund Tier 1, Priority Group 2
applications by Ordinal.
(c) If funds remain after HUD has funded all eligible Tier 1,
Priority Group 2 applications, HUD will fund Tier 1, Priority Group 3
applications by Ordinal.
(d) If funds remain after HUD has funded all eligible Tier 1 HOPE
VI Demolition funding applications, HUD will fund eligible Tier 2
applications, by Priority Group and Ordinal.
(e) If funds remain after all eligible Tier 1 and Tier 2 HOPE VI
Demolition funding applications have been funded, the remaining funds
will be reallocated for HOPE VI Revitalization grants.
(f) At any stage, if there are insufficient funds to fund all
applications with the next Ordinal, HUD will conduct a lottery among
the applications sharing the Ordinal to determine funding. HUD reserves
the right to partially fund the last lottery winner chosen if
insufficient funds remain to fund the entire amount requested, if HUD
deems such partial funding will be a viable alternative to full
funding.

(E) Grant Award Procedures

(1) Notification of Funding Decisions. (a) The HUD Reform Act
prohibits HUD from notifying you as to whether or not you have been
selected to receive a Revitalization grant until it has announced all
HOPE VI Revitalization grant recipients. If your application has been
found to be ineligible or that it did not receive enough points to be
funded, you will not be notified until the successful applicants have
been notified. HUD will provide written notification to all HOPE VI
applicants, whether or not they have been selected for funding.
(b) HUD notification that you have been selected to receive a HOPE
VI grant constitutes only preliminary approval. Grant funds may not be
released until the following activities have been completed:
(i) You or HUD must complete a subsidy layering review pursuant to
24 CFR 941.10(b), if required by HUD;
(ii) You and HUD must execute a HOPE VI Revitalization Grant
Agreement or Demolition ACC Amendment in accordance with Sections (2)
or (3) below, as applicable; and
(iii) The responsible entity has completed an environmental review
and you have submitted and obtained HUD approval of a request for
release of funds and the responsible entity's environmental
certification in accordance with Section IV(A)(8) of this program
section of the SuperNOFA, above.
(2) Revitalization Grant Agreement. When you are selected to
receive a Revitalization grant, HUD will send you a HOPE VI Grant
Agreement, which constitutes the contract between you and HUD to carry
out and fund public housing revitalization activities. Both you and HUD
will sign the cover sheet of the Grant Agreement, and it is effective
on the date of HUD's signature. The Grant Agreement sets forth:
(a) The amount of the grant;
(b) Applicable rules, terms, and conditions, including sanctions
for violation of the Agreement;
(c) The precise schedules of the HOPE VI Program;
(d) Program requirements;
(e) Requirements for implementation of the proposed plan;
(f) Any applicable special conditions that you must meet;
(g) Certifications in which you will agree to:
(i) Carry out the program in accordance with the provisions of this
program section of the SuperNOFA, applicable law, the approved
application, and all other applicable requirements, including
requirements for mixed finance development;
(ii) Comply with any other terms and conditions, including
recordkeeping and reports, that HUD may establish for the purposes of
administering, monitoring, and evaluating the program in an effective
and efficient manner, including full cooperation with HUD's program
oversight contractor;
(iii) Assemble a team to implement the HOPE VI Program that has a
strong management and development track record and is able to start and
carry out a quality HOPE VI program. If you fail to demonstrate your
ability to assemble a competent team to the satisfaction of HUD and its
program oversight manager, HUD will direct corrective

[[Page 9740]]

actions as a condition of retaining the grant;
(iv) Execute a construction contract within 18 months from the date
of HUD's approval of the revitalization Plan (or a period specified in
the Grant Agreement);
(v) Establish interim performance goals and complete the physical
component of the HOPE VI revitalization within 54 months from the date
that HUD executed the Grant Agreement. If you fail to meet this or
other deadlines established in the Grant Agreement, HUD may enforce
default remedies described in the Grant Agreement, up to and including
the withdrawal of grant funding. HUD will take into consideration those
delays caused by factors beyond your control when enforcing these
schedules;
(vi) Execute an ACC Amendment for Mixed-Finance development with
HUD, if required by HUD; and
(vii) Foster the involvement of and gather input and
recommendations from affected residents throughout the entire
development process.
(3) Demolition ACC Amendment. If you are selected to receive a
Demolition grant, HUD will send you an ACC Amendment setting forth the
amount of the grant. Both you and HUD will sign the ACC Amendment, and
it is effective on the date of HUD's signature.
(a) By signing the ACC Amendment, you will agree that:
(i) You will carry out the demolition and relocation work in
accordance with the requirements of this program section of the
SuperNOFA, applicable law including all HUD regulations, the approved
HOPE VI Demolition Funding Application, applicable Demolition
Application approval, and all other applicable requirements; and
(ii) You will procure a demolition contractor within six months
from the date of ACC Amendment execution, and complete the demolition
within two years from the date of ACC Amendment execution; and
(iii) You will comply with such other terms and conditions,
including recordkeeping and reports, as HUD may establish for the
purposes of administering, monitoring, and evaluating the program in an
effective and efficient manner.
(b) Subject to the provisions of Part A of the ACC, and to assist
in the demolition and relocation, HUD will agree to disburse to the PHA
from time to time as needed, up to the amount of funding assistance
awarded.

VI. Application Submission Requirements

(A) Revitalization Application Exhibits

(1) Application Kit. The HOPE VI Application Kit provides explicit,
specific instructions as to the format of a HOPE VI Revitalization
application. Your application must conform to the requirements of this
program section of the SuperNOFA and follow the format described in the
Kit. In addition to the narratives that respond to the rating criteria
in this program section of this SuperNOFA, your application will also
include submissions that provide HUD with detailed information about
your proposed revitalization, including forms and other documentation.
(2) Submissions Required for Rating. HUD will review the following
application submissions and rate them in accordance with the
Revitalization rating factors in section V.(C) of this program section
of the SuperNOFA, above. Because these submissions are rated, they
cannot be improved after submission of the application, and you may not
submit any missing submissions after the deadline date.
(a) An Executive Summary.
(b) A description of your experience and that of your committed
partners in developing and managing housing and providing Community and
Supportive Services Programs.
(c) A description of existing site conditions, which demonstrates
the extent of need for your proposed revitalization.
(d) A description of all predevelopment activities.
(e) A description of all revitalization activities proposed in your
application and details of how the proposed work will be accomplished.
(f) A description of Community and Supportive Services Programs.
(g) A plan for resident and community outreach and involvement in
the planning process.
(h) A description of current or planned coordination with related
activities of other groups or organizations, including any applicable
EZ/EC local empowerment board.
(i) A description of proposed management principles and policies
which will support revitalization efforts, increase safety and security
for residents, affirmatively further fair housing, lessen concentration
of low-income residents and create desegregation opportunities, and
promote mixed-income communities.
(j) Program Resources and Financing: budget, sources and uses,
documentation of resources.
(k) Photographs of distressed public housing and representative
photographs of the neighborhood.
(l) A current site map showing the various buildings of the project
and identifying the buildings to be demolished and/or disposed of.
(m) A relocation plan for relocation not described in a demolition
application.
(n) A city map which clearly identifies key facilities in the
context of existing city streets, the central business district, other
key city sites, and census tracts and which indicates the existing
project, the planned development, and any off-site housing.
(o) A neighborhood map which clearly shows the distance, and
distance scale, between two projects, if the two projects are being
submitted as a single development for HOPE VI funding, pursuant to
Section II.(A)(2)(b), above, of this NOFA.
(p) A proposed site map which indicates where proposed
construction, rehabilitation acquisition, or disposition activities
will take place.
(q) Site and unit design illustrations.
(3) Submissions Required for Completeness. The following
submissions are required in your application but HUD will not use them
for rating purposes. In accordance with section V. of the General
Section of this SuperNOFA, HUD will give you the opportunity to submit
missing submissions. If, after the cure period, HUD has not received
and accepted the missing submissions, your application will not be
eligible for funding.
(a) A certification by an independent engineer that the targeted
public housing project, or buildings in a project, meets the severe
distress requirement described in Section IV.(B)(1)(a)(i) of this
program section of the SuperNOFA, above.
(b) An Implementation Schedule.
(c) Evidence that at least one training session on the HOPE VI
development process and three public meetings were held in accordance
with the requirements of section IV.(B)(2) of this program section of
the SuperNOFA, above.
(d) The HOPE VI Revitalization Applicant Certifications. The text
of the Revitalization Applicant Certifications is included as Appendix
A below, and the actual form to sign is located in the HOPE VI
Application Kit; and
(e) Signed copies of the standard forms, certifications, and
assurances listed in section II.(G) of the General Section of this
SuperNOFA.

[[Page 9741]]

(B) Demolition Application Requirements

The HOPE VI Application Kit provides explicit, specific
instructions as to the format of a HOPE VI Demolition application. Your
application must conform to the requirements of this program section of
the SuperNOFA and follow the format described in the kit. The following
is a summary of the application information required by this program
section of the SuperNOFA. Demolition grants are awarded on a first-
come, first-served basis and HUD does not rate the applications.
Therefore, any missing information may be submitted after the
application is first submitted in accordance with section V.(D) of this
program section of the SuperNOFA, above. HUD will not consider any
application for funding until you submit each of the following
requirements to HUD's satisfaction.
(1) Standard Form 424, Request for Federal Assistance, signed by a
person legally authorized to enter into an agreement with the
Department.
(2) Site Information and Proposed Activities: information and
description of the proposed demolition and related activities.
(3) Documentation of unit eligibility:
(a) Evidence of HUD approval of a demolition/disposition
application (approval letter); or
(b) Approval by HUD or submission to HUD by the HOPE VI demolition
application due date of an obsolete and/or severely distressed public
housing conversion plan in conformance with the requirements of 24 CFR
part 971.
(4) A description of program financing, including a program budget
submitted on Form HUD-52825-A and third-party certification of
reasonable and accurate costs.
(5) A program schedule which clearly shows that you will complete
the proposed demolition within two years from the date your ACC
Amendment is executed.
(6) The HOPE VI Demolition Applicant Certifications. The text of
the Demolition Applicant Certifications is included in Appendix B
below, and the actual form to execute is located in the HOPE VI
Application Kit; and
(7) Signed copies of the standard forms, certifications, and
assurances listed in Section II.(G) of the General Section of this
SuperNOFA.

VII. Corrections to Deficient Applications

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

VIII. Authority

The funding for HOPE VI Revitalization and Demolition grants under
this program section of the SuperNOFA is provided by the FY 1999 HUD
Appropriations Act under the heading ``Revitalization of Severely
Distressed Public Housing (HOPE VI).''

Appendix A--HOPE VI Revitalization Applicant Certifications

The text of the HOPE VI Revitalization Applicant Certifications
is as follows:
Acting on behalf of the Board of Commissioners of the Housing
Authority listed below, as its Chairman, I approve the submission of
the HOPE VI application of which this document is a part and make
the following certifications to and agreements with the Department
of Housing and Urban Development (HUD) in connection with the
application and implementation thereof:
1. The PHA will comply with all policies, procedures, and
requirements prescribed by HUD for the HOPE VI program, including
the implementation of HOPE VI activities in a timely, efficient, and
economical manner.
2. The PHA has not and will not receive assistance from the
Federal government, State, or unit of local government, or any
agency or instrumentality, for the specific activities for which
funding is requested in the application. The PHA has established
controls to ensure that any activity funded by the HOPE VI grant is
not also funded by any other HUD program, thereby preventing
duplicate funding of any activity.
3. The PHA will not provide to any development more assistance
under the HOPE VI Program than is necessary to provide affordable
housing after taking into account other governmental assistance
provided. The PHA could not undertake the activities proposed in the
application without the additional assistance provided by the
requested HOPE VI grant.
4. The PHA will supplement the aggregate amount of the HOPE VI
grant with funds from sources other than HOPE VI in an amount not
less than 5 percent of the amount of HOPE VI grant.
5. In addition to supplemental amounts provided in accordance
with Certification 4 above, if the PHA uses more than 5 percent of
the HOPE VI grant for Community and Supportive Services Programs, it
will provide supplemental funds from sources other than HOPE VI in
an amount equal to the amount used in excess of 5 percent.
6. The PHA has conducted at least one training session for
residents on the HOPE VI development process and three public
meetings with residents and community members to involve them in the
process of planning the revitalization and preparing the
application. At least one meeting was held after the publication
date of the FY 1999 HOPE VI Revitalization NOFA.
7. The PHA does not have any litigation pending which would
preclude timely startup of activities.
8. The application is in full compliance with any desegregation
or other court order related to Fair Housing (e.g., Title VI of the
Civil Rights Act of 1964, the Fair Housing Act, and Section 504 of
the Rehabilitation Act of 1973) that affects the PHA's public
housing program and that is in effect on the date of application
submission.
9. Disposition activity under the grant will be conducted in
accordance with 24 CFR part 970.
10. Acquisition of land, or acquisition of off-site units with
or without rehabilitation to be used as public housing, will be
carried out in accordance with 24 CFR part 941.
11. Major rehabilitation and other physical improvements of
housing and non-dwelling facilities will be carried out in
accordance with 24 CFR 968.112(b), (d), (e), and (g)-(o), 24 CFR
968.130, and 24 CFR 968.135(b) and (d).
12. Construction of replacement rental housing, both on-site and
off-site, economic development, and community facilities, will be
carried out in accordance with 24 CFR part 941, including mixed-
finance development in accordance with subpart F.
13. Replacement housing activity with units acquired or
otherwise provided for homeownership under Section 5(h) of the 1937
Act will be conducted in accordance with 24 CFR part 906.
14. Replacement housing activities provided through housing
opportunity programs of construction or substantial rehabilitation
of homes will meet essentially the same eligibility requirements of
the Nehemiah Program.
15. The administration and operation of units will be in
accordance with all existing public housing rules and regulations.
16. The PHA will comply with the requirements of the Fair
Housing Act (42 U.S.C. 3601-19) and regulations pursuant thereto (24
CFR part 100); Executive Order 11063 (Equal Opportunity in Housing)
and regulations pursuant thereto (24 CFR part 107); the fair housing
poster regulations (24 CFR part 110) and advertising guidelines (24
CFR part 109); Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d) and regulations pursuant thereto (24 CFR part 1).
17. The PHA will comply with the prohibitions against
discrimination on the basis of age pursuant to the Age
Discrimination Act of 1975 (42 U.S.C. 6101-07) and regulations
issued pursuant thereto (24 CFR part 146); the prohibitions against
discrimination against, and reasonable modification and
accommodation and accessibility requirements for, handicapped
individuals under Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794) and regulations issued pursuant thereto (24 CFR part 8);
the Americans with Disabilities Act (42 U.S.C. 12101 et. seq.) and
regulations issued pursuant thereto (28 CFR Part 36); and the
Architectural Barriers Act of 1968, as amended (42 U.S.C. 4151) and
regulations issued pursuant thereto (24 CFR Part 40).
18. The PHA has adopted the goal of awarding a specified
percentage of the dollar value of the total of the HOPE VI contracts
to be awarded during subsequent fiscal years to minority business
enterprises and will take appropriate affirmative action to assist
resident-controlled and women's business enterprises in accordance
with the requirements of Executive Orders 11246, 11625, 12432, and
12138.

[[Page 9742]]

19. The PHA will comply with the requirements of Section 3 of
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u)
(Employment Opportunities for Lower Income Persons in Connection
with Assisted Projects) and its implementing regulation at 24 CFR
part 135.
20. The PHA will comply with Davis-Bacon or HUD-determined
prevailing wage rate requirements to the extent required under
Section 12 of the U.S. Housing Act of 1937.
21. The PHA will comply with the relocation assistance and real
property acquisition requirements of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 and
government-wide implementing regulations at 49 CFR part 24 and will
provide temporary relocation assistance in accordance with 24 CFR
968.108.
22. The PHA will comply with the HOPE VI requirements for
reporting, and for access to records and audits as required in the
HOPE VI Grant Agreement.
23. The PHA will comply with the Lead-Based Paint Poisoning
Prevention Act (42 U.S.C. 4821, et seq.) and is subject to 24 CFR
parts 35 and 965 (subpart H) and Section 968.110(k), as they may be
amended from time to time.
24. The PHA will comply with the policies, guidelines, and
requirements of OMB Circular Nos. A-87 (Cost Principles Applicable
to Grants, Contracts, and Other Agreements with State and Local
Governments) and 24 CFR part 85 (Administrative Requirements for
Grants and Cooperative Agreements to State, Local and Federally
Recognized Indian Tribal Governments), as modified by 24 CFR 941
subpart F relating to the procurement of partners in mixed finance
developments, except when inconsistent with the provisions of the
1998 Appropriations Act or other applicable Federal statutes or the
NOFA pursuant to which the application was submitted.
25. PHA has returned any excess advances received during
development or modernization, or amounts determined by HUD to
constitute excess financing based on a HUD-approved Actual
Development Cost Certificate (ADCC) or Actual Modernization Cost
Certificate (AMCC), or that HUD has approved a pay-back plan.
26. There are no environmental factors, such as sewer
moratoriums, precluding development in the requested locality.
27. The application is consistent with Environmental Justice
Executive Order 12898, in that the proposed public housing will be
developed only in environmentally sound and desirable locations and
will avoid disproportionately high and adverse environmental effects
on minority and low-income communities.
28. The PHA will comply with the provisions of 24 CFR part 24
with regard to the employment, engagement of services, awarding of
contracts, subgrants, or funding of any recipients, or contractors
or subcontractors, during any period of debarment, suspension, or
placement in ineligibility status.
29. The public housing project or building in a project targeted
in this HOPE VI application meets the definition of severe distress
provided in Section IV.(B)(1) of the FY 1999 HOPE VI NOFA.

Appendix B--HOPE VI Demolition Applicant Certifications

The text of the HOPE VI Demolition Applicant Certifications is
as follows:
Acting on behalf of the Board of Commissioners of the Public
Housing Authority (PHA) listed below, as its Chairman, I approve the
submission of the HOPE VI Demolition funding application of which
this document is a part and make the following certifications to and
agreements with the Department of Housing and Urban Development
(HUD) in connection with the application and implementation thereof:
1. The PHA will comply with all policies, procedures, and
requirements prescribed by HUD for the HOPE VI program, including
the implementation of HOPE VI activities in a timely, efficient, and
economical manner.
2. The PHA has not and will not receive assistance from the
Federal government, State, or unit of local government, or any
agency or instrumentality, for the specific activities for which
funding is requested in the application. The PHA has established
controls to ensure that any activity funded by the HOPE VI grant is
not also funded by any other HUD program, thereby preventing
duplicate funding of any activity.
3. The PHA will not provide to any development more assistance
under the HOPE VI Program than is necessary to perform demolition
activities after taking into account other governmental assistance
provided.
4. Disposition activity under the grant will be conducted in
accordance with 24 CFR part 970;
5. The PHA will comply with the requirements of the Fair Housing
Act (42 U.S.C. 3601-19) and regulations pursuant thereto (24 CFR
part 100); Executive Order 11063 (Equal Opportunity in Housing) and
regulations pursuant thereto (24 CFR part 107); the fair housing
poster regulations (24 CFR part 110) and advertising guidelines (24
CFR part 109); Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d) and regulations pursuant thereto (24 CFR part 1).
6. The PHA will comply with the prohibitions against
discrimination on the basis of age pursuant to the Age
Discrimination Act of 1975 (42 U.S.C. 6101-07) and regulations
issued pursuant thereto (24 CFR part 146); the prohibitions against
discrimination against, and reasonable modification and
accommodation and accessibility requirements for, handicapped
individuals under Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794) and regulations issued pursuant thereto (24 CFR part 8);
the Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and
regulations issued pursuant thereto (28 CFR Part 36); and the
Architectural Barriers Act of 1968, as amended (42 U.S.C. 4151) and
regulations issued pursuant thereto (24 CFR Part 40).
7. The PHA will address the elimination of impediments to fair
housing that were identified in the jurisdiction's Analysis of
Impediments to Fair Housing Choice; remedy discrimination in
housing; and promote fair housing rights and fair housing choice.
8. The PHA has adopted the goal of awarding a specified
percentage of the dollar value of the total of the HOPE VI contracts
to be awarded during subsequent fiscal years to minority business
enterprises and will take appropriate affirmative action to assist
resident-controlled and women's business enterprises in accordance
with the requirements of Executive Orders 11246, 11625, 12432, and
12138.
9. The PHA will comply with the requirements of Section 3 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u)
(Employment Opportunities for Lower Income Persons in Connection
with Assisted Projects) and its implementing regulation at 24 CFR
part 135.
10. The PHA will comply with Davis-Bacon or HUD-determined
prevailing wage rate requirements to the extent required under
Section 12 of the U.S. Housing Act of 1937.
11. The PHA will comply with the relocation assistance and real
property acquisition requirements of 24 CFR 970.5.
12. The PHA will keep records in accordance with 24 CFR 85.20
that facilitate an effective audit to determine compliance with
program requirements.
13. The PHA will comply with the Lead-Based Paint Poisoning
Prevention Act (42 U.S.C. 4821, et seq.) and is subject to 24 CFR
parts 35 and 965 (subpart H) and Section 968.110(k), as they may be
amended from time to time.
14. The PHA will comply with the policies, guidelines, and
requirements of OMB Circular Nos. A-87 (Cost Principles for State,
Local and Indian Tribal Governments) and 24 CFR part 85
(Administrative Requirements for Grants and Cooperative Agreements
to State, Local and Federally Recognized Indian Tribal Governments).
15. The PHA does not have any litigation pending which would
preclude timely startup of activities.
16. PHA has returned any excess advances received during
development or modernization, or amounts determined by HUD to
constitute excess financing based on a HUD-approved Actual
Development Cost Certificate (ADCC) or Actual Modernization Cost
Certificate (AMCC), or that HUD has approved a pay-back plan.

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