Funding Availability for the Fair Housing Initiatives Program

the Program. To increase compliance with the Fair
Housing Act (the Act) and with substantially equivalent State and local
fair housing laws.
    Available Funds. Approximately $15,000,000 is allocated as follows:

A. Private Enforcement Initiative (PEI)...................    $9,300,000      4,500,000
C. Fair Housing Organizations Initiative (FHOI)...........      1,200,000

    Eligible Applicants. Qualified Fair Housing Organizations (QFHOs);
Fair Housing Organizations (FHOs); public or private non-profit
organizations or institutions and other public or private entities that
are working to prevent or eliminate discriminatory housing practices;
State and local governments; and Fair Housing Assistance Program
Agencies (FHAP) (as defined in Section IV.(A)(13), Program Definitions,
and described in detail under the initiatives that follow).
    Application Deadline. April 27, 1999.
    Match: None.

Additional Information

    If you are interested in applying for funding under this program,
please review carefully the General Section of this SuperNOFA and the
following additional information.

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

    Application Due Date. You must submit completed applications for
all Initiatives/Components on or before 12:00 midnight, Eastern time on
April 27, 1999 at HUD Headquarters.
    See the General Section of this SuperNOFA for specific procedures
governing the form of application submission (e.g., mailed
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. You must submit completed
applications (one original and five copies) to: FHIP SuperNOFA '99,
[Specify Initiative/Component], FHIP/FHAP Support Division, Fair
Housing and Equal Opportunity, U.S. Department of Housing and Urban
Development, 451 Seventh Street, SW, Room 5234, Washington, DC 20410.
    When you submit your application, please provide your name, mailing
address (including zip code) and telephone number (including area code)
on the front of the mailing envelope.
    For Application Kits. For an application kit and supplemental
information, please call the HUD SuperNOFA Information Clearinghouse at
1-800-HUD-8929. If you have a hearing or speech impairment, you may use
the Center's TTY at 1-800-HUD-2209. When requesting an application kit,
please refer to FHIP SuperNOFA '99, and provide your name, address
(including zip code), and telephone number (including area code).
Application kits also will be available on the Internet at: http://
www.hud.gov.
    For Further Information and Technical Assistance. For answers to
your technical questions, you may contact Ivy L. Davis, Director, FHIP/
FHAP Support Division at 202-708-0800 ext. 7028 (this is not a toll-
free number). If you prefer to use a TTY telephone, you may call 1-800-
290-1617.

II. Amount Allocated

    The amount of $23,500,000 has been appropriated for the Fair
Housing Initiatives Program in FY 1999. Approximately $15,000,000 is
being made available for National and Regional/Local/Community-Based
activities on a competitive basis to eligible organizations responding
to this SuperNOFA. The remaining approximately $8,500,000 will be made
available through separate Requests for Proposals.
    The amount available for each initiative is divided as follows:
    (A) Private Enforcement Initiative (PEI). The objective of this
initiative is to support private fair housing enforcement organizations
in their investigations of alleged violations of the Fair Housing Act
and substantially equivalent State and local fair housing laws.
Approximately $9,300,000 is allocated as follows:
    (1) General Multi-Year Component. $7,800,000; award cap: $300,000
for single projects, $600,000 for partnership projects; project
duration 24-36 months.
    (2) Joint Enforcement Project Component. $1,500,000; award cap:
$300,000; project duration 24-36 months.
    (B) Education and Outreach Initiative (EOI). The objective of this
initiative is to assist projects which inform the public about their
rights and obligations under the Fair Housing Act and substantially
equivalent State and local fair housing laws, to educate the public
about the procedures for filing claims with HUD, and to increase the
referrals of credible, legitimate fair housing cases (complaints) and
other information to HUD. Approximately $4,500,000 is allocated for 18
month projects; of this, $450,000 is allocated for the National Program
and $4,050,000 is allocated for the Regional/Local/Community-Based
Program as follows:
    (1) Regional/Local/Community-Based Program.
    (a) General Component. $2,550,000; award cap: $300,000.
    (b) Homeownership Component. $750,000; award cap: $150,000.
    (c) Disability Component. $750,000; award cap: $150,000.
    (2) National Program. Best Practices Component. $450,000; award
cap: $225,000.
    (C) Fair Housing Organizations Initiative (FHOI). The objective of
this initiative is to establish new fair housing enforcement
organizations and to build the capacity of fair housing enforcement
organizations to carry out enforcement activities. Approximately,
$1,200,000 is allocated for the following components:
    (1) Establishing New Organizations Component (ENOC). $800,000;
award cap: $400,000; project duration 24-36 months.
    (2) Continued Development Component (CDC). $400,000; award cap:
$200,000; project duration 24 months. Under this component, your award
may not exceed 50 percent of the operating budget of your organization
for one year. Operating budget means your organization's total planned
budget expenditures from all sources, including the value of in-kind
and monetary contributions, in the 24 months for which funding is
received.

III. Program Descriptions; Eligible Applicants; Eligible Activities

    The Fair Housing Initiatives Program (FHIP) assists projects and
activities that increase compliance with the Fair Housing Act and
substantially equivalent State and local fair housing laws. In
September 1997, HUD announced a ``crackdown on housing discrimination''
pledging to substantially increase its enforcement actions. The
activities funded under this SuperNOFA are expected to contribute to
the accomplishment of this pledge.
    Immigrant populations are increasingly responsible for new
household formations in the United States and they often face
formidable barriers because of discriminatory housing practices. As the
President has stated, these unlawful barriers hinder the goal of ``One
America.'' It is imperative that fair housing efforts be directed to
educating immigrant populations about their fair housing rights and
ensuring that enforcement mechanisms address the specific types of
discrimination they encounter on a

[[Page 9680]]

national, regional, local or community basis. Therefore, activities
under the following components should address the fair housing needs of
these and other ``underserved populations:'' (1) the General Component
of the Private Enforcement Initiative; (2) the General Component of the
Regional/Local/Community-Based Education and Outreach Initiative; and,
(3) the Best Practices Component of the Education and Outreach
Initiative National Program.

(A) Private Enforcement Initiative (PEI)

    (1) PEI-General Multi-Year Component. (a) Component Description. If
you apply for this component, you must place special emphasis on the
fair housing enforcement needs of new immigrant groups and other
underserved populations, as defined in the introductory paragraph of
Section III. of this program section of the SuperNOFA. The objective of
this component is to carry out audits, tests, and other investigative
activities which:
    (i) Determine compliance with accessibility requirements;
    (ii) Discover and remedy discrimination in the public and private
real estate markets;
    (iii) Propose and undertake activities to detect and remedy more
subtle and sophisticated forms of discriminatory practices; and
    (iv) Reduce the incidence of steering and other practices
perpetuating segregation.
    (b) Eligible Applicants. (i) Eligible organizations are FHOs with
at least one year of experience in complaint intake, complaint
investigation, testing for fair housing violations, and meritorious
claims; and QFHOs.
    (ii) If you are currently receiving PEI Multi-Year funding awarded
to you under a previous NOFA, and, as of the date of this SuperNOFA,
your funding expires after June 30, 2000, you are not eligible to apply
for this General Multi-Year Component under this SuperNOFA. You are,
however, eligible to apply for funding under any other initiative/
component.
    (iii) Your proposal will be considered either as a single or
partnership project (see Section IV.(C)(3), Program Requirements, for
more details). If you are submitting a partnership proposal, although
your award will be made to a single organization, all members of your
partnership must meet the eligibility requirements of this initiative.
    (c) Eligible Activities. Eligible activities include:
    (i) Complaint intake of allegations of housing discrimination,
testing, evaluating testing results, or providing other investigative
and complaint support for administrative and judicial enforcement of
fair housing laws;
    (ii) Investigations of individual complaints and systemic housing
discrimination for further enforcement processing by HUD, through
testing and other investigative methods;
    (iii) Mediation or otherwise voluntarily resolving allegations of
fair housing discrimination after a complaint has been filed; and
    (iv) Costs and expenses of litigating fair housing cases, including
expert witness fees.
    (2) Joint Enforcement Project Component (JEP). (a) Component
Description. This component promotes partnerships between private fair
housing enforcement organizations, FHAP agencies and/or traditional
civil rights organizations to focus on systemic investigations of
housing discrimination. As set forth in Rating Factor 3: Soundness of
Approach, these partnerships are expected to result in enforcement
proposals being filed with HUD or sufficient information being provided
to HUD for the filing of Secretary-initiated complaints or other use by
the Department.
    (b) Eligible Applicants. If you are a QFHO or FHO, you are eligible
for funding under this component and may subcontract with other
organizations to carry out Joint Enforcement Project Components.
Subcontracts should be discussed in accordance with Rating Factor 3:
Soundness of Approach.
    (c) Eligible Activities. Eligible activities include:
    (i) Conducting joint investigations;
    (ii) Conducting joint investigative activities through testing,
review of property records, development of strategies, interviews,
etc.;
    (iii) Developing complaints for referral to HUD for action; and
    (iv) Sharing information with HUD regarding potential violations
for investigation based upon complaints, data, or other sources.

(B) Education and Outreach Initiative (EOI)

    (1) General. (a) Initiative Description. This initiative assists
projects which inform and educate the public about their rights and
obligations under the Fair Housing Act and substantially equivalent
State and local fair housing laws, and educate the public about the
procedures for filing claims with HUD. The activities funded under this
initiative are expected to result in an increased number of referrals
of credible, legitimate fair housing claims and other information
regarding discriminatory practices.
    (b) Eligible Applicants. QFHOs; FHOs; public and private non-profit
organizations or institutions and other public or private entities that
are formulating or carrying out programs to prevent or eliminate
discriminatory housing practices; State or local governments; and FHAP
Agencies. If you are a traditional civil rights organization, you are
encouraged to apply under this initiative.
    (c) Eligible Activities. The following activities are eligible for
all components under this initiative, unless otherwise noted under the
specific component: holding educational symposia; duplicating existing
fair housing materials for distribution throughout your project area;
conducting outreach and providing information on fair housing through
printed and electronic media; and providing outreach to persons with
disabilities and/or their support organizations and service providers,
housing providers, and the general public on the rights of persons with
disabilities under the Fair Housing Act. Regional/Local/Community-Based
activities must use existing locally available materials. You may not
develop new fair housing materials except as a supplement to existing
materials and/or in languages other than English or Braille.
    (2) Regional/Local/Community-Based Program.
    (a) General Component. (i) Component Description. This component
places special emphasis on the fair housing needs of new immigrant
groups and other underserved populations.
    (ii) Eligible Applicants. Are the same as described in Section
III.(B)(1)(b), above.
    (iii) Eligible Activities. Are the same as described in Section
III.(B)(1)(c), above.
    (b) Homeownership Component. (i) Component Description. This
component focuses on education and outreach activities that improve
access to homeownership for racial/ethnic minorities by addressing
multiple barriers to fair housing choice (e.g., mortgage lending
discrimination) and education and outreach aimed at reducing racial and
other housing segregation.
    (ii) Eligible Applicants. Are the same as described in Section
III.(B)(1)(b), above.
    (iii) Eligible Activities. Are the same as described in Section
III.(B)(1)(c), above.
    (c) Disability Component. (i) Component Description. This component
focuses on the education and outreach efforts of organizations

[[Page 9681]]

that assist persons with disabilities to understand their fair housing
rights and the forms of discrimination they confront.
    (ii) Eligible Applicants. Are the same as described in Section
III.(B)(1)(b), above.
    (iii) Eligible Activities. Are the same as described in Section
III.(B)(1)(c), above.
    (3) National Program. (a) Best Practices Component. (i) Component
Description. This component will fund a Best Practices Campaign for
Fair Housing Enforcement and Education to collect prototypes of
successful fair housing education and enforcement business practices
and techniques which benefit underserved populations making them
available to State and local governments and others.
    (ii) Eligible Applicants. Are the same as described in Section
III.(B)(1)(b), above.
    (iii) Eligible Activities. Your program must include: (1)
collecting examples of good fair housing enforcement, business
practices and education techniques which benefit underserved
populations, particularly non-English speaking persons and new
immigrants, and (2) disseminating these best practices for use by State
and local governments, fair housing organizations, housing industry
groups and others. The Department encourages you to address at least
one of the following statutory objectives: cooperation with real estate
industry organizations; and/or dissemination of educational information
and technical assistance to support compliance with the housing
adaptability and accessibility guidelines contained in the Fair Housing
Amendments Act of 1988.

(C) Fair Housing Organizations Initiative (FHOI)

    (1) Establishing New Organizations Component (ENOC).
    (a) Component Description. The objective of this component is to
establish new fair housing enforcement organizations in underserved
areas.
    (b) Eligible Applicants. Only QFHOs are eligible to apply under
this component.
    (c) Eligible Activities. You must propose the establishment of a
new fair housing organization in an underserved area.
    (2) Continued Development Component (CDC)
    (a) Component Description. The objective of this component is to
provide support to build the enforcement capacity of newly established
fair housing enforcement organizations created under past FHOI-ENOC
awards (new organizations).
    (b) Eligible Applicants. Only new organizations previously funded
as new organizations through FHOI-ENOC grants that will have expired as
of June 30, 2000, are eligible for funding under this component. A list
of these organizations is provided in the FHIP Appendix at the end of
this program section of the SuperNOFA.
    (c) Eligible Activities. Your application must build your
enforcement capacity by proposing all or some of the following
activities:
    (i) Complaint intake of allegations of housing discrimination;
testing, evaluating testing results or providing other investigative
and complaint support for administrative and judicial enforcement of
fair housing laws;
    (ii) Investigations of individual complaints and systemic housing
discrimination for further enforcement processing by HUD, through
testing and other investigative methods;
    (iii) Mediation or otherwise voluntarily resolving allegations of
fair housing discrimination after a complaint has been filed; and
    (iv) Costs and expenses of litigating fair housing cases, including
expert witness fees.

IV. Program Requirements

(A) Requirements for All Initiatives/Components.

    In addition to the requirements listed in Section II of the General
Section of this SuperNOFA, you must also meet the following application
requirements:
    (1) Performance Measures and Deliverables. Your application must
demonstrate how your program activities will support HUD goals,
identify performance measures/outcomes in support of those goals, and
identify current (baseline) conditions and target level of the
performance measure that you plan to achieve. Your proposal also must
contain a strategy for achieving project deliverables, with related
timelines and milestones. If you are selected, your final performance
measures and deliverables will be negotiated between you and HUD as
part of your executed grant agreement, based upon your proposal.
    (2) Reports and Meetings On Performance Measures and Deliverables.
In your final grant report, you must describe the status of performance
measures in a spreadsheet format or other manner specified by the
Department [also see the reporting requirements for PEI and FHOI grants
at Section IV.(B)(9), below, of this program section of the SuperNOFA].
You are required to report quarterly on the status of project
deliverables against your approved milestones and timelines and meet at
least semi-annually with HUD to ensure that project activities satisfy
grant requirements.
    (3) Single Award Limitation/Preference Must be Stated. (a) Except
as provided in paragraph (b) of this section, you may apply for funding
under more than one component for which you are an eligible applicant,
but you may receive only one award under this program section of the
SuperNOFA. If you apply for funding under more than one component, you
must state your priority for selection and submit your preference in
your application. If you fail to submit your preference, your
application will be ineligible.
    (b) The requirements of paragraph (a) of this section do not apply
to the components listed in this paragraph. In addition to the single
award for which you are eligible under paragraph (a) of this section,
if you are an eligible applicant for the following components, you may
also apply for, and are eligible to receive:
    (i) An FHOI-Establishing New Organizations Component (ENOC) award,
and/or
    (ii) One EOI-National Program award.
    (4) Independence of Awards. Although there is no limitation on the
number of applications that you may submit, each project or activity
proposed in an application must be independent and capable of being
implemented without reliance on the selection of other applications
submitted by you or other applicants. This provision does not preclude
you from submitting a proposal which includes other organizations as
sub-recipient.
    (5) Project Starting Period. For planning purposes, assume a start
date no later than September 30, 1999.
    (6) Page Limitation. The narrative response for each of the five
rating factors for award is limited to ten pages (this does not include
forms or documents which are required under each factor). Pages
exceeding that limit will not be evaluated. Furthermore, unrequested
items, such as brochures and news articles, will not be considered. You
should respond to each factor. Failure to provide narrative responses
to all factors will result in your application not receiving points for
the information omitted, which may significantly affect your
application score.
    (7) Training. Your proposed budget must include a training set-
aside of $3,000 for single-year projects and $6,000 for multi-year
projects. HUD will permit recipients to use these funds to

[[Page 9682]]

attend both HUD-sponsored and HUD-approved training.
    (8) Payment Contingent on Completion. Payments including multi-year
award increments, are contingent on the satisfactory completion of your
project activities and deliverables as called for in your grant
agreement.
    (9) Accessibility Requirements. All activities and materials funded
by this Program must be accessible to persons with disabilities [24 CFR
8.4, 8.6, and 8.54].
    (10) Copyright Materials. You may copyright any work that is
subject to copyright; however, HUD reserves the right to reproduce,
publish, or otherwise use your work for Federal purposes, and to
authorize others to do so as outlined in 24 CFR 84.36.
    (11) Ineligible Applications.
    (a) If you fail to meet the requirements set forth in Section II of
the General Section of this SuperNOFA, your application will be
ineligible for funding.
    (b) Award Caps. If you exceed the award cap for the component for
which you are requesting funding, your application will be ineligible.
    (c) Research Activities. Projects aimed solely or primarily at
research or dependent upon such data-gathering, including but not
limited to surveys and questionnaires, are not eligible for funding.
    (d) Non-Profit Status. If you are applying under the PEI and FHOI
Initiatives, you must submit documentation with your application that,
as of the application due date of this program section of the
SuperNOFA, you are a 501(c)(3) tax-exempt organization as determined by
the Internal Revenue Service. Failure to submit this documentation with
your application will be treated as a technical deficiency as discussed
in Section V of the General Section of this SuperNOFA.
    (e) JEP Component. You must include in your JEP application a
memorandum of understanding (MOU) from all project participants
describing the signatories's duties and responsibilities. The MOU must
be signed by an official of each project organization who is authorized
to make commitments on behalf of the participating organization. If you
fail to submit this documentation with your application, you will be
ineligible.
    (f) Single Award Limitation/Preference Must be Stated. If your
application does not state a funding preference as required by Section
IV.(A)(3), above, of this program section of the SuperNOFA, your
application will be ineligible.
    (12) Ineligible Activities.
    (a) Fair Housing and Free Speech. None of the amounts made
available under this SuperNOFA may be used to investigate or prosecute
under the Fair Housing Act any otherwise lawful activity engaged in by
one or more persons, including the filing or maintaining of a non-
frivolous legal action, that is engaged in solely for the purpose of
achieving or preventing action by a government official or entity, or a
court of competent jurisdiction.
    (b) Suits Against the United States. No recipient of assistance
under this program may use any funds provided by HUD for the payment of
expenses in connection with litigation against the United States (24
CFR 125.104(f)).
    (13) Program Definitions. The definitions that apply to this FHIP
section of the SuperNOFA are as follows:
    Enforcement actions includes charges issued under the Fair Housing
Act, settlements with relief equivalent to or greater than what HUD
would seek had a charge been issued; settlements with relief for a
broad class of victims; referrals to the Department of Justice (DOJ)
where it has legal authority to take further action: zoning and land
use cases (42 U.S.C. 3614(b)); pattern and practice cases [42 U.S.C.
3614(a)]; requests for prompt judicial action; [42 U.S.C. 3610(e)]; and
allegations of criminal violations of the Fair Housing Act (42 U.S.C.
3631).
    Enforcement proposals are potential complaints under the Fair
Housing Act which are timely, jurisdictional, and well developed which
could reasonably be expected to become an enforcement action if an
impartial investigation finds evidence supporting the allegations and
the case proceeds to a resolution with HUD involvement.
    Fair Housing Assistance Program (FHAP) Agencies means State and
local agencies which administer laws substantially equivalent to the
Fair Housing Act, as described in 24 CFR part 115.
    Fair Housing Enforcement Organization (FHO) means an organization
engaged in fair housing activities as defined in 24 CFR 125.103.
    Meritorious Claims means enforcement activities by an organization
as defined in 24 CFR 125.103.
    Qualified Fair Housing Enforcement Organization (QFHO) means an
organization engaged in fair housing activities as defined in 24 CFR
125.103.
    Regional/Local/Community-Based Activities are defined at 24 CFR
125.301(d).
    Traditional Civil Rights Organizations means non-profit
organizations or institutions and/or private entities with a history
and primary mission of securing Federal civil rights protection for
groups and individuals protected under the Fair Housing Act and
substantially equivalent State or local laws and which are engaged in
programs to prevent or eliminate discriminatory housing practices.
    Underserved areas means jurisdictions where no public or private
fair housing enforcement organizations exist or which are not
sufficiently served by one or more public or private enforcement fair
housing organizations, and which contain large concentrations of
protected classes.
    Underserved populations means protected class members among new
immigrant populations (especially ethnic minorities who are not English
speaking) rural populations, persons with disabilities and the homeless
that can be documented as historically not having been the focus of
Federal, State or local fair housing enforcement efforts.
    (B) Requirements For Private Enforcement Initiative and Fair
Housing Organizations Initiative
    (1) Broad-Based and Full Service Projects. If you are applying
under the Private Enforcement Initiative (PEI) and Fair Housing
Organizations Initiative (FHOI), your activities must be broad-based
and full service enforcement projects that address discrimination
against persons protected by the Fair Housing Act. Furthermore, your
activities must contribute in measurable ways to HUD's commitment to
increase its number of enforcement actions. Full service projects must
include more than one type of the following enforcement related
activities in your project proposal: interviewing potential victims of
discrimination; analyzing housing-related issues; intaking complaints;
testing; evaluating testing results; conducting preliminary
investigations; conducting mediation; enforcing meritorious claims
through litigation or referral to administrative enforcement agencies;
and disseminating information about fair housing laws. ``Broad-based''
projects are not limited to a single fair housing issue, instead they
cover multiple issues related to housing discrimination covered under
the Fair Housing Act, such as: rental, sales and financing of housing.
    (2) Non-Profit Status. If you are applying under the PEI and FHOI
Initiatives, you must submit documentation with your application that,
as of the application due date of this program section of the
SuperNOFA, you are a 501(c)(3) tax-exempt organization as determined by
the Internal Revenue Service. Failure to

[[Page 9683]]

submit this documentation with your application will be treated as a
technical deficiency as described in Section V. of the General Section
of this SuperNOFA.
    (3) Mandatory Referrals. You are required to refer to HUD all cases
arising from FHIP-funded audit testing. In all FHIP-funded cases where
you find a basis for filing a complaint with a bona fide complainant
other than your organization, you must file the complaint with HUD
unless, consistent with the Act, the complainant refuses, in writing,
to do so. In addition to filing with HUD, a bona fide complainant may
file in Federal or State Court.
    (4) Outreach Expenses. Your budget may designate up to 5% of
requested funds for education and outreach to promote awareness of
services available, if the education activities are necessary for the
successful implementation of your project.
    (5) Tester Requirements. Testers in your FHIP-funded testing
activities must not have prior felony convictions or convictions of
crimes involving fraud or perjury. All testers must receive training or
be experienced in testing procedures and techniques. Testers and the
organizations conducting tests, and the employees and agents of these
organizations may not:
    (a) Have an economic interest in the outcome of the test, without
prejudice to the right of any person or entity to recover damages for
any cognizable injury;
    (b) Be a relative of any party in a case;
    (c) Have had any employment or other affiliation, within one year,
with the person or organization to be tested; or
    (d) Be a licensed competitor of the person or organization to be
tested in the listing, rental, sale, or financing of real estate.
    (6) Testing Experience. When proposing testing other than rental or
accessibility testing, you must document, to HUD's satisfaction, that
at minimum you have conducted successful rental testing. Documentation
of your experience must include, a general description of: when and
where tests occurred, the entities tested, and the overall results of
the tests, including complaints filed and settlements or remedies
secured. You must include copies of testing methodologies and training
materials used. The testing methodology and procedures will remain
confidential for enforcement purposes.
    (7) Review and Approval of Testing Methodology. If your Statement
of Work proposes testing, other than rental testing, HUD reserves the
right to require as a deliverable to be reviewed and approved by HUD
prior to your carrying out the testing activities: (a) The testing
methodology to be used, and (b) the training to be provided to testers.
Your testing methodology and procedures will remain confidential for
enforcement purposes.
    (8) Conflict of Interest and Use of Settlement Funds
Certifications.
    (a) You must certify you will not solicit funds from or seek to
provide fair housing educational or other services or products for
compensation, directly or indirectly, to any person or organization
which has been the subject of FHIP-funded testing by you during the 12
month period following the test. This does not preclude settlement
based on investigative findings. HUD reserves the right to negotiate
with awardees additional provisions addressing potential conflicts of
interest.
    (b) You must certify that any compensation you receive directly or
indirectly from a settlement, conciliation, or award of damages as a
result of activities funded under this SuperNOFA, will be used only to
carry out activities specifically authorized under your cooperative
agreement/grant agreement or to carry out other activities approved by
HUD.
    (9) Reports. You must provide reports in a format (which may be
computer generated), at a frequency and with contents specified by HUD.
Your report must include: the number and basis of claims/complaints
filed with HUD or in Federal/State court, the number and terms of
settlements or other outcomes achieved. The terms of settlements
ordered by a court or other tribunal to be kept confidential need not
be produced.
    (10) Enforcement Log. You are required to record information about
the funded project in a case tracking log (or Fair Housing Enforcement
Log) to be supplied by HUD. Such information must include: the number
of complaints of possible discrimination you have received; the
protected basis of these complaints; the issue, test type, and number
of tests utilized in the investigation of each allegation; the
respondent type and testing results; the time for case processing,
including administrative or judicial proceedings; the cost of testing
activities and case processing; to whom the case was referred; and the
resolution and type of relief sought and received. You must agree to
make this log available to HUD. This log will be considered
confidential for enforcement purposes.
    (C) Additional Requirements for Private Enforcement Initiative
    (1) Your proposal must include a description of the enforcement
proposals to be referred to HUD to increase enforcement actions.
Therefore, you must state what information you intend to collect and
analyze, the kind and number of complaints you anticipate referring to
HUD for enforcement purposes, and a method for referring such
complaints. Your application should explain how you plan to structure
tests, train investigators, conduct investigations, etc. This
description should make clear the safeguards to be used to ensure that
complaints referred to HUD for enforcement action are fully
jurisdictional under the Act and supported by credible and legitimate
evidence that the Act has been violated.
    (2) Neither you nor any sub-recipient are permitted to charge or
claim credit for any activities performed under the FHIP Program toward
any other Federal project/funds. For example: If you receive a PEI-JEP
award and you are a FHAP agency, you will not be able to count any
cases/referrals arising under an approved project toward your FHAP case
processing calculations.
    (3) PEI-General Multi-Year Component. If you apply for this
component as a single or partnership project the amount awarded will
vary as noted in Section II.(A)(1), Amount Allocated, above in this
program section of the SuperNOFA. A higher award cap is allocated for
partnership projects. If you are submitting a partnership proposal you
must meet the following requirements:
    (a) You must designate a single organization with responsibility
for administering the grant and overseeing project activities which
must be the organization submitting the application.
    (b) All members of your partnership must be identified in your
application with the duties and responsibilities for each partner
described fully,
    (c) All partnership members must meet the eligibility requirements
of this initiative (see Section III.(A)(1)(b), eligible applicants for
PEI), and
    (d) Your application must make clear you are submitting a
partnership proposal.
    (D) Additional Requirements for Education and Outreach Initiative
National Program and Regional/Local/Community-Based Program
    (1) All projects must address housing discrimination based on race,
color, religion, sex, disability, familial status, or national origin.
    (2) Your proposal must contain a description of how your activities
or your final products can be used by other agencies and organizations.
If modifications are necessary for use by others, describe the
modifications.

[[Page 9684]]

    (3) Your proposal must describe the referral process and list in
the Statement of Work the projected referrals to be submitted to HUD.
    (E) Additional Requirements for Fair Housing Organizations
Initiative: Establishing New Organizations Component ENOC. You must
propose the establishment of a new fair housing enforcement
organization in an underserved area. You must provide a justification
for why the target project area is underserved. Your justification must
include data and studies that indicate the presence of housing
discrimination, segregation and/or other indices of discrimination in
the locality based upon race, color, religion, sex, national origin,
familial status, or disability.

V. Application Selection Process

(A) Rating and Ranking

    (1) Your application for funding will be evaluated competitively
under one of the following components:
    (a) Private Enforcement Initiative (PEI):
    (i) General Multi-Year Component;
    (ii) Joint Enforcement Project Component;
    (b) Education and Outreach Initiative (EOI):
    (i) Regional/Local/Community-Based Program:
    (1) General Component;
    (2) Homeownership Component;
    (3) Disability Component;
    (ii) National Program:
    (1) Best Practices Component;
    (c) Fair Housing Organizations Initiative (FHOI):
    (i) Establishing New Organizations Component;
    (iii) Continuing Development Component.
    (2) You will be awarded points and assigned a score based on the
Factors for Award. After eligible applications are evaluated against
the factors for award and assigned a score, they will be ranked in
order by score. A minimum score will be established below which
applications will not be considered to be of sufficient quality for
funding. This score (based upon review of the applications by applying
the factors for award) will identify applications that will not
effectively achieve the objectives of this SuperNOFA. This score will
vary based upon the overall quality of the proposals received in each
program or component, but will be set within 30 percentage points of
the average score of all proposals that are scored in that program or
component. The Rating Factor requirements listed in the General Section
of this SuperNOFA are applicable to applicants applying for funding
under this Program.
    (3) Tie Breaking. When there is a tie in the overall score, the
applicant with the higher score under Rating Factor 3: Soundness of
Approach will be ranked higher. If the applications are equal in this
respect, the application that receives a total higher number of points
under Rating Factor 1: Capacity of the Applicant and Relevant
Organizational Experience will be ranked higher. If these scores are
identical then the applicant with the lower request for FHIP funding
will be ranked higher.

(B) Selections

    (1) In General. Except as noted in paragraph (2) ``Achieving
Diversity of Awards,'' proposals of sufficient quality to be funded
will be funded in rank order until all available funds have been
obligated or until no applications of sufficient quality remain. The
final decision rests with the selecting official--the Assistant
Secretary for Fair Housing and Equal Opportunity, or designee.
    (2) Achieving Diversity of Awards. The selecting official shall
have discretion to pass over applicants in funding a component in
accordance with the funding diversity or geographic diversity procedure
or both procedures. If the selecting official decides to use any of
these procedures, the selecting official shall apply that procedure
equally to all applicants. If the selecting official opts to use both
procedures, he/she will use the funding diversity procedure first, and
then apply the geographic diversity procedure. These procedures are
applied component-by-component. No shifting of leftover funds from a
component will occur until all applications of sufficient quality in
that component are awarded funds.
    (a) Funding Diversity. The selecting official may pass over
applicants to provide broader representation among funded entities. For
any component in which the Selecting Official decides to use this
procedure, the selecting official will pass over applicants who have
received two FHIP SuperNOFA grants in the past five years in favor of
lower ranked applications of sufficient quality to be funded who have
not received two FHIP SuperNOFA grants in the past five years. Prior
receipt of an ENOC award will not be included in determining whether an
applicant received two grants in the past five years. Passed over
applications of sufficient quality will be placed at the bottom of the
ranking list of applications of sufficient quality for the component,
but will be placed in rank order among passed over applications. Once
applications of sufficient quality to be funded are reordered to
reflect the funding diversity procedure, the selecting official shall
proceed in one of two ways:
    (i) The selecting official may apply the geographic diversity
procedure to all applications of sufficient quality, or
    (ii) The selecting official may not apply geographic diversity and
award funds to applicants based on their rank order except that passed
over applicants are funded in rank order after all other applicants of
sufficient quality are funded, until funds are exhausted or there are
no more applications of sufficient quality to be funded.
    (b) Geographic Diversity. To provide for broader geographic
representation among funded projects, the selecting official will have
the discretion to pass over an applicant where there is more than one
applicant located in a Metropolitan Statistical Area (MSA), as defined
by the Bureau of the Census. If the selecting official decides to use
this procedure in a component, the selecting official will select from
the applications of sufficient quality to be funded the highest ranked
applicant in each MSA, once applications of sufficient quality have
been reordered to reflect the funding diversity procedure. If funding
diversity has been applied, this is the highest ranked applicant in
each MSA that was not passed over in that procedure. Passed over
applications of sufficient quality will go to the bottom of the ranking
list of applications of sufficient quality to be funded for the
component, but will be placed in rank order among passed over
applications, whether passed over for funding or geographic diversity.
If additional funds remain in the component after funding the highest
ranked applicant in each MSA, the selecting official shall proceed in
one of two ways:
    (i) The selecting official may decide to apply geographic diversity
to the passed over applicants, to the extent that additional funds
remain. If, after applying geographic diversity a second time,
additional funds still remain, the remaining funds will be awarded
based on the rank order of any remaining applications of sufficient
quality to be funded, irrespective of MSA.
    (ii) If the selecting official opts not to apply geographic
diversity a second time, then remaining funds shall be awarded to
passed over applicants based on their rank order until funds are
exhausted.

(C) Priority for Shifting Left Over Funds

    If after all applications within funding range have been selected
in a initiative/component and leftover funds remain

[[Page 9685]]

available, the selecting official or designee will have the discretion
to shift leftover funds in rank order within and between initiatives/
components as follows:
    (1) First, within initiatives:
    (a) For PEI and EOI, leftover funds from any component will be
shifted to the General Component;
    (b) For FHOI, leftover funds from ENOC will be shifted to CDC.
    (2) Second, between initiatives: if after shifting funds, as noted
above, leftover funds remain, those funds will be shifted to the PEI-
Multi-Year General Component.

(D) Factors for Award Used To Evaluate and Rate All Applications Except
the National Program of the Education and Outreach Initiative

    The factors for rating and ranking applicants and the maximum
points for each factor, are provided below. The maximum number of
points to be awarded any application is 102. This includes two EZ/EC
bonus points, as described in the General Section of the SuperNOFA.
Rating Factor 1: Capacity of Applicant and Relevant Organizational
Experience (20 Points)
    This factor addresses the extent to which you have the
organizational resources necessary to successfully implement your
proposed activities in a timely manner. In rating this factor HUD will
consider the extent to which your proposal demonstrates:
    (1) (10 points) Specific Description of Staff for Proposed
Activities.
    (a) The knowledge and experience of your proposed project director
and staff, including the day-to-day program manager, consultants and
contractors in planning and managing programs for which you're
requesting funding. Experience will be judged in terms of recent,
relevant and successful experience of you and your staff to undertake
eligible program activities.
    (b) Whether there is sufficient personnel or you will be able to
quickly access qualified experts or professionals to deliver the
proposed activities in a timely and effective fashion, and your
readiness and ability to immediately begin your proposed work program.
To demonstrate there is sufficient personnel, you must submit the
proposed number of staff years for your proposed employees and experts,
the titles and relevant professional background and experience of each
employee and expert proposed, and the roles to be performed by each.
You should identify the key personnel in your Statement of Work, as
discussed in Rating Factor 3: Soundness of Approach.
    (2) (10 points for either (a) or (b)) Specific Description of
Experience Relevant to the Proposed Activities.
    (a) Your past grant experience in terms of your ability to attain
demonstrated measurable progress in the implementation of your most
recent activities where performance has been assessed as measured by
expenditures and progress in achieving the purpose of the activities.
HUD will also consider any evidence it has in its files of your failure
under past awards to comply with grant award provisions; or
    (b) If you have not received funding in the past, your
demonstration of experience in managing programs, and carrying out
management responsibilities for programs similar in scope or nature to
the work activities proposed. Therefore, if you have managed large,
complex, interdisciplinary programs, or work similar in scope or
complexity to your proposed program, you should include that
information in your response.
Rating Factor 2: Need/Distress/Extent of the Problem (25 Points)
    This factor addresses the extent to which there is a need to fund
your proposed activities and an indication for the urgency of meeting
the need in your target area. In addition, if you are applying under
the General Components of PEI and/or EOI, you should address the fair
housing needs of new immigrants and other underserved populations as
defined in Section IV.(A)(11) of this program section of the SuperNOFA.
In rating this factor, HUD will consider the extent to which you
demonstrate:
    (1) (15 points) Documentation of Need. The level of need for your
project activities in your target area, including the needs of new
immigrants and other underserved populations (under the EOI-General and
PEI-General Components), and the urgency in meeting the need using
statistics and analyses contained in a data source(s) that is sound and
reliable. You should analyze the level of need for your proposed
activities and document the level of need in the specific area where
your activities will be carried out. Attention must be paid to
documenting need where activities will be targeted, rather than the
entire locality or State. If your target area is an entire locality or
State, then documenting need at this level is appropriate. Your
proposal may reference the extent to which your community's
Consolidated Plan (CP) and Analysis of Impediments to Fair Housing
Choice (AI) identify the level of the problem and urgency of need. In
addition, your proposal should reference the extent to which project
activities will affirmatively further fair housing (AFFH), by
describing how proposed activities will assist in overcoming
impediments to fair housing choice identified in the jurisdiction's AI
(Analysis of Impediments to Fair Housing Choice), which is a component
of the jurisdiction's Consolidated Plan (CP), or other planning
document that addresses fair housing issues. Additional examples of how
you may document need may be obtained from Chapter 5 of the ``Fair
Housing Planning Guide, Vol. 1,'' use of HUD reports and analyses,
relevant economic and/or demographic data including indices of
segregation in areas by race or national origin, government or
foundation reports and studies, news articles, and other information
which relate to your proposed activities.
    In evaluating this sub-factor for applications submitted under the
General Components of PEI and EOI, five of the 15 points will be
awarded to proposals which address the needs of underserved
populations, as defined in Section IV.(A)(11) of this program section
of the SuperNOFA. When describing the need of underserved populations,
you should include: (a) the extent to which there is an urgent and/or
unmet need for undertaking eligible activities aimed at underserved
populations in the area to be served, and (b) a strategy for providing
fair housing services to these populations.
    (2) (10 points) Rationale for Proposed Activities and Methods. The
extent to which your proposal provides a rationale for how the proposed
activities and methods most effectively deal with the need you
described in responding to the preceding sub-factor. You should discuss
how you took into account existing and planned efforts of government
agencies, community-based organizations, faith-based institutions, for-
profit firms, and other entities to address such needs in the
community(ies) to be served, how the proposed program complements or
supplements existing efforts and why additional funds are being
requested.
Rating Factor 3: Soundness of Approach (35 Points)
    This factor addresses the quality and cost-effectiveness of your
proposed Statement of Work. You must show a clear relationship between
your proposed activities, community needs and the purpose of the
program funding in order to receive points for this factor. In
addition, HUD has pledged to substantially increase its enforcement

[[Page 9686]]

actions, and all projects funded under this SuperNOFA shall contribute
to the accomplishment of this goal. In evaluating your response to this
rating factor, HUD will consider the extent to which your proposal
demonstrates:
    (1) (15 points) Description of Proposed Activities. How your
proposed activities will result in the referral of enforcement
proposals to HUD as demonstrated by the number projected in your
proposal and method used to obtain that projection. Specifically, your
projection should relate to cases being referred to HUD during the
period of performance of the grant from activities you will perform
under your award. In responding to this factor, describe the methods to
be developed or used to identify and refer enforcement proposals to
HUD, how you derived your projected number of referrals and the
relationship to your proposed activities. If your past activities have
resulted in successful enforcement proposals being referred to HUD,
describe these actions and the outcome of such referrals.
    Examples of enforcement proposals include:
    (i) Allegations that are supported by evidence that meet the
requirements for a filed complaint under the Fair Housing Act,
including prima facie evidence, with or without related testing
evidence;
    (ii) Results of testing or audits demonstrating potential housing
discrimination;
    (iii) Well-developed analysis of data including Home Mortgage
Disclosure Act (HMDA), Community Reinvestment Act (CRA) Analyses,
Census data, current studies of residential segregation, or other
similar documentation supporting allegations of discrimination; and
    (iv) Referrals of claims to HUD on behalf of individuals or groups
other than your organization.
    (b) Your application must provide a basis for your specific
activities relating to enforcement proposal referrals to HUD and your
projected number of enforcement proposal referrals that are described
in your Statement of Work. Your final performance measures for
enforcement proposal referrals will be negotiated between you and HUD
as part of the executed grant agreement and will be based upon your
proposal.
    (2) (10 points) Statement of Work. Additionally, HUD is looking for
an efficient, effective and feasible Statement of Work that:
    (a) Describes in broad terms the design and objectives of your
proposal, including the geographic area to be served; the protected
classes to be served; end product(s); program improvements to be
achieved; total number of staff needed to complete all proposed
activities and projected referrals to HUD; key personnel by years of
experience, name and function; and the number of referrals for
enforcement you expect to refer to HUD. You must also describe how
program objectives for the component for which you are seeking funding
will be met (e.g., enforcement efforts (PEI); education and outreach
(EOI); creating or building a fair housing capacity organization
(FHOI));
    (b) Outline in chronological order your administrative and program
tasks to be performed and the duration of the project. Your outline
should identify all tasks and sub-tasks to be performed and by whom,
i.e., you or a sub-recipient; deliverables which will be provided to
HUD and when; and technically competent methodologies you will use to
carry out these tasks.
    (3) (10 points) Budget and Financial Controls. HUD also will assess
the soundness of your approach by evaluating the following:
    (a) The quality, thoroughness and reasonableness of the cost
estimates provided. As part of your response, a summary budget should
be provided which identifies costs by category in accordance with the
following:
    (i) Direct Labor by position or individual, indicating the
estimated hours per position, the rate per hour, estimated cost per
staff position and the total estimated direct labor costs;
    (ii) Fringe Benefits by staff position, identifying the rate, the
salary base the rate was computed on, estimated cost per position, and
the total estimated fringe benefit cost;
    (iii) Material Costs indicating the item, unit cost per item, the
number of items to be purchased, estimated cost per item, and the total
estimated material costs;
    (iv) Transportation Costs, as applicable. Where a local private
vehicle is proposed to be used, costs should indicate the proposed
number of miles, rate per mile of travel identified by item, and
estimated total private vehicle costs. Where air transportation is
proposed, costs should identify the destination(s), number of trips per
destination, estimated air fare and total estimated air transportation
costs. If other transportation costs are listed, you should identify
the other method of transportation selected, the number of trips to be
made and destination(s), the estimated cost, and the total estimated
costs for other transportation costs;
    (v) Per diem, as applicable. You should identify per diem or
subsistence costs per travel day and the number of travel days
included, the estimated costs for per diem/subsistence and the total
estimated transportation costs. You should use the Federal Travel
Regulation for per diem rate for cities listed under ``Transportation
Costs'' in your cost estimate;
    (vi) Equipment charges, if any. Equipment charges should identify
the type of equipment, quantity, unit costs and total estimated
equipment costs;
    (vii) Consultant Costs, if applicable. Indicate the type, estimated
number of consultant days, rate per day, total estimated consultant
costs per consultant and total estimated costs for all consultants;
    (viii) Subcontract Costs, if applicable. Indicate each proposed
individual subcontract and amount. Each proposed subcontract should
include a separate budget which identifies proposed costs by cost
categories. In addition, your project budget should include any costs
related to subcontract(s) with FHAP agencies and traditional civil
rights organizations which account for activities related to the sub-
recipient's role in the project. A separate detailed budget for each
subcontract should be included in the application. If you have selected
sub-recipients or are submitting a joint application with one partner
serving as a lead applicant, you must provide the actual subcontract
costs;
    (ix) Other Direct Costs listed by item, quantity, unit cost, total
for each item listed, and total direct costs for the award;
    (x) Indirect Costs should identify the type, approved indirect cost
rate, base to which the rate applies and total indirect costs.
    (b) The rationale used to determine costs and validation of fringe
and indirect cost rates, if you are not using an accepted, Federally
negotiated indirect cost rate;
    (c) The extent to which your program is cost effective in achieving
the anticipated results of your proposed activities as well as in
achieving significant community impact; and
    (d) The extent to which you demonstrate capability in handling
financial resources with adequate financial control procedures and
accounting procedures. HUD will consider items such as findings
identified in your most recent audits, internal consistency in the
application of numeric quantities, accuracy of mathematical
calculations and other available information on financial management
capability.

[[Page 9687]]

Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure community resources
(Note: financing is a community resource) which can be combined with
HUD's program resources to achieve program purposes. In other words, to
what extent can you get groups in the community to work with you. In
evaluating this factor HUD will consider:
    (1) (5 points) Extent to Which Applicant Has Secured Other
Resources. The extent to which local groups will provide additional
resources to increase the effectiveness of the proposed activities.
Resources may include funding or in-kind contributions, such as
services or equipment, allocated to the purpose(s) of your proposal.
Resources may be provided by governmental entities, public or private
non-profit organizations, for-profit private organizations, or other
entities willing to work with you. You may also work with other FHIP-
funded recipients to coordinate the use of resources in your project
area.
    (2) (5 points) Evidence of Firm Commitment of Leveraging. The
extent to which there is evidence of leveraging. You can establish this
by providing letters of firm commitment; memoranda of understanding
(MOU); or agreements to participate from those entities identified as
partners in your application. Each letter of commitment, memorandum of
understanding, or agreement to participate should: (a) identify the
organization, (b) describe the proposed level of commitment, (c)
outline the responsibilities as they relate to your proposal, and (d)
be signed by an official of the organization legally able to make
commitments on behalf of the organization. If you are applying under
the PEI-JEP you must submit a memorandum of understanding in support of
your leveraged partnership.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you coordinate your
activities with other organizations in the project area, participate or
promote participation in the project area's Consolidated Planning
process (including Analysis of Impediments to Fair Housing Choice), and
are creating linkages with other activities in the community. In other
words, to what extent are you working with others to address community
needs in your project area. In evaluating this factor, HUD will
consider the extent to which you demonstrate:
    (1) Project activities will reach your targeted audience. This
includes a discussion of how: (a) your methods or approaches will
ensure that project activities and materials are made available to
local groups and organizations, and (b) the project can enhance the
activities or work in tandem with such groups or organizations in your
project area. At a minimum, your application should discuss procedures
you will use to promote awareness of the services provided by your
proposal.
    (2) Project activities will make communities and organizations in
your project area aware of opportunities for linking activities with:
    (a) Other proposed or on-going HUD-funded program activities;
    (b) Other proposed or on-going State, Federal, local or privately
funded activities which, taken as a whole, support and sustain a
comprehensive system to address the purpose of these programs; and
    (c) Other activities being undertaken to address barriers to
housing choice identified in the Consolidated Plan's Analysis of
Impediments to fair housing choice.

(E) Factors for Award Used To Evaluate and Rate Applications for the
National Education and Outreach Initiative Program

    The factors for rating and ranking applicants and the maximum
points for each factor, are provided below. The maximum number of
points to be awarded any application is 102. This includes two EZ/EC
bonus points, as described in the General Section of the SuperNOFA.
Rating Factor 1: Capacity of Applicant and Relevant Organizational
Experience (20 Points)
    This factor addresses the extent to which you have the
organizational resources necessary to successfully implement your
proposed activities in a timely manner, and your ability to collect or
make available prototypes of successful fair housing education and
enforcement business practices and techniques, as appropriate, on a
national scale. The rating of your organization and staff for technical
merit or threshold compliance, unless otherwise specified, will include
any consultants, sub-recipients, and partners that are firmly committed
to the project. In rating this factor, HUD will consider the extent to
which your application demonstrates:
    (1) (5 points) General Description of Applicant Organization and
Relevant Experience.
    (a) The eligibility and qualifications of your organization; the
type of organization (e.g., public, private, non-profit, for profit);
and your general areas of activity or line of business;
    (b) Your management of large, complex, interdisciplinary projects;
    (c) Awards and major accomplishments of your organization. HUD may
also consider any documented evidence, such as performance reviews,
newspaper articles, or monitoring findings, that may reflect positively
or negatively upon your ability and the proposed staff's ability to
perform the work;
    (d) Your ability to handle financial resources with adequate
financial control procedures and accounting procedures. In addition,
HUD will consider findings identified in your most recent audits;
internal consistency in the application of numeric quantities; accuracy
of mathematical calculations; and other available information on
financial management capability.
    (2) (10 points) Specific Description of Staff for Proposed
Activities. Whether you have sufficient personnel or will be able to
quickly access qualified experts or professionals to deliver your
proposed activities in a timely and effective fashion, including your
readiness and ability to immediately begin your proposed work program;
the knowledge and experience of your overall proposed project director
and staff, including the day-to-day program manager, consultants and
sub-recipients in planning and managing programs for which funding is
being requested. To demonstrate that you have sufficient personnel, you
must submit the proposed number of staff hours for your employees and
experts allocated to your project, the titles and relevant professional
background and experience of each employee and expert proposed to be
assigned to your project, and the roles to be performed by each
identified employee and expert. Experience will be judged in terms of
at least two years' worth of recent and relevant experience to
undertake eligible program activities or projects similar in scope or
nature and directly relevant to your work activities proposed.
    (3) (5 points) Specific Description of Experience Relevant to the
Proposed Activities. Demonstrated past experience(s) in collecting,
analyzing and making available prototypes of successful fair housing
education and enforcement business practices and techniques, as
appropriate, on a national scale. You must describe your ability to
understand fair housing enforcement-related issues/policies/practices
which influence discriminatory housing

[[Page 9688]]

practices. In responding to this rating factor, it will be especially
helpful to describe your past experiences with developing and
implementing innovative strategies and the results of those efforts.
The rating of this factor for technical merit will include any
consultants, sub-recipients, and partners that are identified as
participants in your project. If you have or are currently receiving
funding under FHIP, you should list and provide the status of your
previous referrals of enforcement proposals to HUD, especially those
made during FY 1998 and a list of cases referred to HUD for joint
enforcement.
Rating Factor 2: Need/Distress/Extent of the Problem (25 Points)
    This factor addresses the extent to which you document and address
the national need for educating immigrant and other underserved
populations about their fair housing rights and ensure that enforcement
mechanisms address the specific types of discrimination they encounter.
You should state which activities and methods you intend to address,
and how your proposal offers the most effective approach for dealing
with that national need. In responding to this factor, you will be
evaluated on the following:
    (1) (15 points) Documentation of Need. The extent to which you
describe and document the national need you intend to address, and
demonstrate a grasp of the elements of the problem and its
pervasiveness at the national level. Your description of the national
need will be used to evaluate the depth of your understanding of the
problem as an indication of your ability to address the problem; and
    (2) (10 points) Rationale for Proposed Activities and Methods. The
extent to which you provide a rationale for how your proposed
activities and methods most effectively deal with the national need
described in response to sub-factor (1), above.
Rating Factor 3: Soundness of Approach (35 Points)
    This factor addresses the quality and cost-effectiveness of your
proposed Statement of Work. In evaluating this factor, HUD will
consider the extent to which:
    (1) (15 Points) Description of Proposed Activities. Your proposed
activities will be conducted in a manner (e.g., languages, formats,
locations, distribution, use of minority media) to reach and benefit
all members of the public, especially underserved populations; and
proposed activities will yield long-term results and innovative
strategies or ``best practices'' that can be readily disseminated to
other organizations and State and local governments.
    (2) (10 Points) Statement of Work. Applications include Statement
of Work that:
    (a) Clearly describe your specific tasks and sub-tasks to be
performed; the sequence in which the tasks are to be performed, noting
areas of work which must be performed simultaneously; estimated
completion dates; and program deliverables to be completed within the
grant period, including specific numbers of quantifiable end products
and program improvements you intend to deliver by the end of the award
agreement period as a result of the work performed;
    (b) Provide national coverage and identify the protected class
focus of the project, and serve the needs of new immigrants and
underserved populations; and
    (c) Describe the immediate benefits of your proposal and how you
will measure the benefits. You must describe the methods you will use
to determine the effectiveness of your proposed activities and benefits
achieved to receive points.
    (3) (10 Points) Budget and Financial Controls. You must include
proposed budgets that demonstrate:
    (a) Cost estimates, salary levels, staff assignments, number of
staff hours, and other budget items are reasonable, allowable, and
appropriate for your proposed activities.
    (b) Your proposed program is cost effective in achieving its
anticipated results, as well as in achieving significant impact.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure community resources
(Note: financing is a community resource) which can be combined with
HUD's program resources to achieve program purposes. In other words, to
what extent can you get others to work with you. In evaluating this
factor HUD will consider:
    (1) (5 points) Extent to Which Applicant has Secured Other
Resources. The extent to which others will provide additional resources
to increase the effectiveness of your proposed project activities.
Resources may include funding or in-kind contributions, such as
services or equipment allocated to the purpose(s) of your proposal.
Resources may be provided by governmental entities, public or private
non-profit organizations, for-profit private organizations, or other
entities willing to work with you. You may also work with other FHIP-
funded recipients to coordinate the use of resources in the project
area.
    (2) (5 points) Evidence of Firm Commitment of Leveraging. The
extent to which there is evidence of leveraging. You can establish this
by providing letters of firm commitment; memoranda of understanding; or
agreements to participate from those entities identified as partners in
your application. Each letter of commitment, memorandum of
understanding, or agreement to participate should: (a) identify the
organization, (b) describe the proposed level of commitment, (c)
outline the responsibilities as they relate to the proposed project,
and (d) be signed by an official of the organization legally able to
make commitments on behalf of the organization.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you coordinate your
activities with other organizations in your project area, and are
creating linkages with other activities in your project area. In other
words, to what extent are you working with others to address needs in
your project area. In evaluating this factor, HUD will consider the
extent to which you demonstrate:
    (1) Project activities will reach your targeted audience. This
includes a discussion of how: (a) your methods or approaches will
ensure that project activities and materials are made available to
local groups and organizations, and (b) the project can enhance the
activities or work in tandem with such groups or organizations in your
project area. At a minimum, your application should discuss procedures
you will use to promote awareness of services provided by your proposed
project.
    (2) Project activities will make communities and organizations in
your project area aware of opportunities for linking activities with:
    (a) Other HUD-funded programs activities, proposed or on-going; or
(b) Other proposed or on-going State, Federal, local or privately
funded activities which, taken as a whole, support and sustain a
comprehensive system to address the purpose of these programs.

(F) Applicant Notification and Award Procedures

    (1) Notification. No information will be available to you during
the period of HUD evaluation, approximately 90 days, except for
notification in writing or by telephone if HUD determines your

[[Page 9689]]

application is ineligible or has correctable deficiencies (as described
in Section V. of the General Section of the SuperNOFA). Selections will
be announced by HUD upon completion of the evaluation process and will
be subject to final award negotiations of award.
    (2) Negotiations. After HUD has ranked the applications and
provided notifications to those selected, HUD will require selected
applicants to participate in negotiations to determine the specific
terms of the cooperative or grant agreement. HUD will follow the
negotiation procedures described in Section III.(D) of the General
Section of the SuperNOFA.
    (3) Funding Instrument. HUD expects to award a cost reimbursable or
fixed-price cooperative or grant agreement to each successful
applicant. HUD reserves the right, however, to use the form of
assistance agreement determined to be most appropriate after
negotiation with the selected applicants.
    (4) Adjustments to Grant Amounts. As provided in Section III.(E) of
the General Section of the SuperNOFA, HUD may approve an application
for an amount lower than the amount requested, fund only portions of an
application, withhold funds after approval, and/or require that special
conditions be added to the grant agreement, in accordance with 24 CFR
84.14, the requirements of this SuperNOFA, or where:
    (a) HUD determines the amount requested for one or more eligible
activity is unreasonable or unnecessary;
    (b) An ineligible activity is proposed in an otherwise eligible
project;
    (c) Insufficient amounts remain to fund the full amount requested
in the application, and HUD determines that partial funding is a viable
option; or
    (d) An applicant has demonstrated an inability to manage HUD
grants, particularly FHIP grants.
    (5) Performance Sanctions. A grantee or sub-recipient, failing to
comply with the procedures set forth in its grant agreement will be
liable for such sanctions as may be authorized by law, including
repayment of improperly used funds, termination of further
participation in the FHIP, and denial of further participation in
programs of HUD or any Federal agency.

VI. Application Submission Requirements

    In addition to the statements, forms, certifications and assurances
required by Section II(G) of the General Section of the SuperNOFA and
by the Program Requirements in Section IV. of this program section of
the SuperNOFA, your application must, at a minimum, contain the
following items:
    (A) Transmittal Letter. Your letter must identify: (1) the dollar
amount requested for each component, (2) the specific FHIP initiative
and component under which your application is submitted, and (3) in the
case of the EOI, whether it is the Regional/Local/Community Based
Program or the National Program.
    (B) Narrative Statement. Your narrative statement must address, and
should be numbered to track, the Factors for Award in Section V.(D),
above, of this FHIP section of the SuperNOFA.
    (C) Financial Management and Audit Information. You must submit a
certification from an Independent Public Accountant or the cognizant
government auditor, stating that the financial management system
employed by you meets proscribed standards for fund control and
accountability required by: OMB Circular A-133, Audits of States, Local
Governments and Non-Profit Organizations; OMB Circular A-110 (as
codified at 24 CFR part 84), Uniform Administrative Requirements for
Grants and Agreements With Institutions of Higher Education, Hospitals,
and other Non-Profit Organizations; and/or OMB Circular A-102 (as
codified at 24 CFR Part 85) Uniform Administrative Requirements for
Grants and Cooperative Agreements to State, Local and Federally
Recognized Indian Tribal Governments. This information should contain
the name and telephone number of the Independent Auditor, cognizant
Federal auditor, or other audit agency, as applicable.
    (D) Non-Profit Status. If you are applying under the PEI and FHOI
Initiatives, you must submit documentation with your application that,
as of the closing date of this FHIP section of the SuperNOFA, you are a
501(c)(3) tax-exempt organization as determined by the Internal Revenue
Service. Failure to submit this documentation with your application
will be treated as a technical deficiency as discussed in Section V. of
the General Section of this SuperNOFA.
    (E) JEP Component. If you are submitting a JEP application, your
application must include a memorandum of understanding (MOU) from all
project participants describing the signatories' duties and
responsibilities. The MOU must be signed by an official of the
partnership organization authorized to make commitments on behalf of
the organization. If you fail to submit this documentation with your
application, your application will be ineligible.
    (F) Preference for Award Must Be Stated. If your application does
not state a funding preference as required by Section IV.(A)(3), above,
of this program section of the SuperNOFA, your application will be
ineligible.

VII. Corrections to Deficient Applications

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

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(9) and (12) of HUD regulations,
activities assisted under this program are categorically excluded from
the requirements of the National Environmental Policy Act and are not
subject to environmental review under related laws and authorities.

IX. Authority

    Section 561 of the Housing and Community Development Act of 1987
(42 U.S.C. 3616 note, established the Fair Housing Initiatives Program
(FHIP)) and the implementing regulations are found at 24 CFR part 125.

      FHIP Appendix--New Organizations Established Under FHIP ENOC
------------------------------------------------------------------------
     Name and address of new organization              Area served
------------------------------------------------------------------------
The Fair Housing Continuum, 846 N. Cocoa       Brevard County, Florida.
Blvd., Cocoa, FL 32922.
North Carolina Fair Housing Center, 101 St.    State of North Carolina.
Mary Street, Raleigh, NC 27609.
Southern Center of Civil Rights Enforcement,   Areas in Georgia,
1083 Austin Ave, NE, Atlanta, GA 31107.         Arkansas, Mississippi
                                                and South Carolina.
Central Alabama Fair Housing Center, 207       Central and Southern
Montgomery St. Suite 725, Montgomery, AL       Alabama.
36104.
Arkansas Fair Housing Organization, 2101       Central Arkansas.
South Main Street, Little Rock, AR 72206.
Arkansas Fair Housing Council, 103 West        Arkansas Congressional
Capitol, #1115, Little Rock, AR 72201.          Districts #1, 2 and 4.
Fair Housing Action Center, 938 Lafayette      Greater Metropolitan New
St., #413, New Orleans, LA 70113.               Orleans.

[[Page 9690]]

Legal Aid Society of Albuquerque, 121           State of New Mexico.
Tijereas, NE, #3100, Albuquerque, NM 87102.
Louisiana Fair Housing Organization, 1624      Southern Louisiana.
Elysian Fields, Ave., New Orleans, LA 70117.
New Mexico Fair Housing Organization, 918      Central New Mexico
Silver SW, Albuquerque, NM 87102.               (primarily Albuquerque
                                                and Santa Fe).
Fair Housing Center of Nebraska, 2522 N. 24th  Omaha, Nebraska and South
St., #103, Omaha, NE 68110.                     Sioux City.
Kansas City Fair Housing Center, 3033           Metropolitan Kansas City,
Prospect Ave., Kansas City, MO 64128.           Missouri.
Metro St. Louis Equal Housing Opportunity      Metropolitan St. Louis,
Center, 1027 VanDerventer Ave., 4th Floor,     Missouri.
St. Louis, MO 63110.
North Dakota Fair Housing Council, 533          State of North Dakota.
Airport Rd, Suite B, Bismark, ND 58504.
Greater Nevada Fair Housing Council, 410 East  Northern Nevada.
John Street, Carson City, NV 89706.
Nevada Fair Housing Center, 2725 East Desert   Southern Nevada.
Inn Road, Suite 180, Las Vegas, NV 89121.
Fair Housing Council of Fresno County, 2014    Fresno, California.
Tulane St., #413, Fresno, CA 93721.
Idaho Fair Housing Council, 310 N. 5th          State of Idaho.
Street, Boise, ID 83702.
Northwest Fair Housing Alliance, 1613 West     Eastern Washington.
Gardner Ave., Spokane, WA 99201.
Fair Housing Council of South Puget Sound,     Puget Sound.
8815 S. Tacoma Way, Suite 211, Tacoma, WA
98499.
Asian Americans for Equality FH Cntr.........  Queens, NY.
San Antonio Fair Housing Center..............  San Antonio, TX.
Fair Housing Center of Houston...............  Houston, TX.
------------------------------------------------------------------------

BILLING CODE 4210-32-P

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    [GRAPHIC] [TIFF OMITTED] TN26FE99.025

BILLING CODE 4210-32-C

[[Page 9693]]

Funding Availability for the Housing Counseling Program

Program Overview

    Purpose of the Program. The purpose of this program is to provide
comprehensive housing counseling through national, regional, multi-
State housing counseling agencies, State housing finance agencies, and
local HUD-approved housing counseling agencies. Counseling assists
homebuyers, homeowners, and tenants to meet their housing needs and
resolve their housing problems.
    Available Funds. Approximately $16.6 million.
    Eligible Applicants. (1) HUD-approved national, regional, or multi-
State intermediaries; (2) HUD-approved local housing counseling
agencies; and (3) State housing finance agencies.
    Application Deadline. May 25, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program,
please review carefully the General Section of this SuperNOFA and the
following additional information.

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

    Application Due Date. You must submit a completed application on or
before 12:00 midnight, Eastern time on May 25, 1999 to the addresses
shown below.
    See the General Section of this SuperNOFA for specific procedures
governing the form of application submission (e.g., mailed
applications, express mail, overnight delivery, or hand carried).
    Addresses for Submitting Applications. If you are a Local Housing
Counseling Agencies or State Housing Finance Agencies: Send an original
and two copies of your completed application to the respective HUD
Homeownership Center (HOC) having jurisdiction over the locality, area
or State in which your proposed program is located. Your application
should be sent to the attention of the Program Support Division
Director, and the envelope should be clearly marked ``FY 1999 Housing
Counseling Application''. A list of the HUD Homeownership Centers,
including their jurisdictions, and the Program Support Division
Directors appears below and in the Application Kit.

------------------------------------------------------------------------
                                                      Office
------------------------------------------------------------------------
Philadelphia Homeownership Center:
    Mr. Michael Perretta, The Wanamaker  Albany, Baltimore, Boston,
     Building, 100 Penn Square East,       Buffalo, Camden, Cleveland,
     Philadelphia, PA 19107-3380,          Charleston, Cincinnati
     Contact: Robert Wright Flint,         Columbus, Detroit, Grand
     (215) 656-0527 x3406.                 Rapids, Hartford, Manchester,
                                          New York, Newark Philadelphia,
                                          Pittsburgh, Providence,
                                          Richmond, District of
                                          Columbia.
Atlanta Homeownership Center:
    Ms. Gayle Knowlson, Richard B.        Atlanta, Birmingham, Caribbean,
     Russell Federal Building, 75          Chicago and Springfield,
     Spring Street, S.W., Room 572,        Columbia, Coral Gables,
     Atlanta, GA 30303-3308, Contact:      Greensboro, Indianapolis,
     Fellece Sawyer-Coleman (404) 331-    Jackson, Jacksonville,
     5001 x2675.                           Knoxville, Louisville,
                                          Memphis, Nashville, Orlando,
                                          Tampa.
Denver Homeownership Center:
    Ms. Jane Hall First Interstate        Albuquerque, Denver, (Casper,
     Tower North, 633 17th Street,         Fargo, Sioux Falls), Dallas,
     Denver, CO 80202-3607, Contact:      Des Moines, Denver, Ft. Worth,
     Lorraine Griscavage-Frisbee (303)    Helena, Houston, Kansas City,
     672-5216 x1515.                       Little Rock, Lubbock,
                                          Milwaukee, Minneapolis, New
                                          Orleans, Oklahoma City, Omaha,
                                          Salt Lake City, San Antonio,
                                          Shreveport, St. Louis, Tulsa.
Santa Ana Homeownership Center:
    Mr. Jerrold Mayer, 1600 N.            Anchorage, Boise, Fresno,
     Broadway, Suite 100, Santa Ana, CA   Honolulu, Las Vegas and Reno,
     92706-3927, Contact: Rhonda J.        Los Angeles, Phoenix,
     Rivera, Chief, x3210, 1-888-827-      Portland, Sacramento, San
     5605, (714) 796-1200.                 Diego, San Francisco, Santa
                                          Ana, Seattle, Spokane, Tucson.
------------------------------------------------------------------------

    If you are a National, Regional or Multi-State Housing Counseling
Intermediary, send an original and two copies of the completed
application to Director, Program Support Division, Office of Single
Family Housing, HUD Headquarters, 451 7th Street, S.W., Washington, DC
20410, Room 9166. The envelope should be clearly marked, ``FY 1999
Intermediary Application''. If you submit an application to HUD using
the above procedures, you will avoid having your application
disqualified.
    Application Kits. For an application kit and any supplemental
information, please call the SuperNOFA Information Center at 1-800-HUD-
8929. Persons with hearing or speech impairments may call the Federal
Information Relay Service at 1-800-877-8339. The application kit also
will be available on the Internet through the HUD web site at http://
www.HUD.gov. When requesting an application kit, please refer to the
Housing Counseling Program. The SuperNOFA Information Center can
provide you with assistance in determining which HUD locations should
receive a copy of your application.
    For Further Information and Technical Assistance. If you are a
local housing counseling agency or State housing finance agency, you
may call the HUD Homeownership Center serving your area. If you are a
national, regional, or multi-State intermediary, you may call HUD
Headquarters. Please see above and your application kit for a list of
offices and telephone numbers you can call to receive assistance.
Before the application deadline, HUD staff will be available to provide
general guidance.

II. Amount Allocated

    Under this SuperNOFA, $16.6 million of the $17.5 million
appropriated is made available for eligible applicants. An allocation
of $900,000 of the $17.5 million total in program funding has been set
aside for Housing Counseling support, which may include continuation of
the Housing Counseling Clearinghouse, and/or HUD counseling
initiatives.
    The estimated amount of funds available for sub-allocation is as
follows:

--Local Housing Counseling Agencies (LHCA). Approximately $ 5.6 million
has been made available for grants to local HUD-approved housing
counseling agencies. Funding is allocated to each of the HUD
Homeownership Centers by a formula that reflects the increased emphasis
on the expansion of homeownership opportunities for first-time
homebuyers and HUD's intent to ensure appropriate geographical
distribution of program funds. For FY 1999, no individual local housing

[[Page 9694]]

counseling agency may be awarded more than $100,000.
--National, Regional, and Multi-State Intermediaries. Approximately
$7.5 million is being set aside to fund HUD-approved national, regional
and multi-State intermediaries that apply for funding under this
SuperNOFA. There is no longer any cap on the amount that national,
regional, or multi-State intermediaries may receive.
--State Housing Finance Agencies (SHFA). Approximately $3.5 million is
being set aside to fund State housing finance agencies. HUD will fund
State housing finance agencies according to the budget submitted with
the application, in an amount not to exceed $500,000.

    The amount of funding available to each of the four HUD
Homeownership Center jurisdictions for allocation to local housing
counseling agencies and State housing finance agencies is:

------------------------------------------------------------------------
                                              Funding          Funding
          Homeownership center               allocation*     allocation**
                                              (LHCA)           (SHFA)
------------------------------------------------------------------------
Atlanta, GA.............................      $1,200,000         $890,000
Denver, CO..............................       1,400,000          890,000
Philadelphia, PA........................       1,700,000          935,000
Santa Ana, CA...........................       1,300,000         785,000
------------------------------------------------------------------------
* Each HOC has been allocated a minimum of $1 million, with the balance
  being distributed to each HOC based on the number of clients counseled
  within its jurisdiction during FY 1998.
** Each HOC has been allocated a minimum of $750,000, with the balance
  being distributed to each HOC based on the number of SHFAs funded
  within its jurisdiction under the FY 1998 SuperNOFA.

    Remaining and Deobligated Funds/Reallocations. If funds remain
after HUD has funded all approvable grant applications in its
Homeownership Center jurisdictions, or Headquarters, or if any funds
become available due to deobligation, that amount will be retained by
HUD Headquarters for future housing counseling use.
    Funding Levels. The Factors for Award will be used to evaluate your
application for funding. If you are a successful applicant, HUD
requires that you participate in negotiations to determine the specific
grant amount and the terms of the grant agreement. HUD will follow the
negotiation procedures described in Section III(D) of the General
Section of the SuperNOFA. Housing Counseling grants are fundable for a
period of twelve (12) calendar months. This period may begin from the
date that your award is executed by HUD, or not more than 90 days prior
to your award execution date.

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    HUD-approved housing counseling agencies provide counseling and
advice to tenants and homeowners on property maintenance, financial
management, and other matters appropriate to assist tenants and
homeowners in improving their housing conditions and meeting
responsibilities of tenancy and homeownership. In addition, HUD-
approved housing counseling agencies conduct community outreach
activities and provide counseling to individuals, including persons
with visual or hearing impairments or other disabilities, with the
objective of increasing awareness of homeownership opportunities and
improving access of low and moderate income households to sources of
mortgage credit. HUD believes that this activity is key to the
revitalization and stabilization of low income and minority
neighborhoods. Agencies assist first-time homebuyers by offering
Homebuyer Education and Learning Program (HELP) training sessions.
Agencies also meet the counseling needs of eligible persons 62 or older
who desire to use the Home Equity Conversion Mortgage (HECM) to convert
their equity into a lump sum payment or an income stream that can be
used for home improvements, medical costs, and/or living expenses.

(B) Eligible Applicants

    Under the housing counseling program, HUD contracts with qualified
public or private nonprofit organizations to provide housing counseling
services. There are three categories of applicants eligible to submit
applications:
--HUD-approved national, regional, or multi-State intermediaries.

    If you are a HUD-approved national, regional, or multi-State
intermediary, your primary activity is to manage the use of HUD housing
counseling funds. This includes the distribution of housing counseling
funding to affiliated local housing counseling agencies. Your local
affiliates are eligible to undertake any or all of the housing
counseling activities, described for HUD-approved local housing
counseling agencies. Local affiliates receiving funding through your
organization do not need to be HUD-approved in order to receive funds
from you. However, your intermediary organization must be HUD-approved
as of the date of this SuperNOFA. You must identify all of your
proposed affiliates in your application. An affiliate of your
organization may also apply to a State housing finance agency for a
sub-grant, whether or not it received a sub-grant from you. However, if
your affiliate is not HUD-approved, you must certify the quality of
services provided will meet, or exceed, standards for local HUD-
approved housing counseling agencies.
    As a selected intermediary, you must distribute the majority of
your award funds to your housing counseling affiliates. HUD will give
you wide discretion to implement your housing counseling program with
your affiliates. You must execute sub-grant agreements with your
affiliates that clearly delineate the mutual responsibilities for
program management and appropriate time frames for reporting results to
HUD.
    You can decide how to allocate funding among your affiliates with
the understanding that a written record must be kept of how you
determined your funding levels. This record must be made available to
your affiliates and to HUD. You should budget an amount which reflects
your best estimate of the cost to oversee and fund the housing
counseling efforts of your affiliates. You must seek other private and
public sources of funding to supplement HUD funding. HUD does not
intend for its counseling grant funds to cover all costs incurred by an
agency participating in this program.
    Your organization, as well as all your affiliates, must meet the
Civil Rights Threshold requirements that are listed in Paragraph II.(B)
of the General Section of the SuperNOFA.

    Note: If you are a national, regional, or multi-State intermediary,
you must assure that your proposed affiliates are unique to your team,
and will not undertake a separate application for

[[Page 9695]]

funds. Should any duplication occur, both your intermediary
organization and the local housing counseling agency requesting
separate funds will automatically be ineligible for further
consideration to receive FY 1999 housing counseling funds.

--HUD-approved local housing counseling agencies

    These agencies are private and public non-profit organizations,
approved by HUD to provide housing counseling services directly to
clients. If you are a HUD-approved private or public non-profit
organization, HUD will fund your local housing counseling agency
activities according to the budget submitted with your application. The
amounts you request should reflect anticipated operating needs for your
housing counseling activities, based upon your counseling experience
during the previous fiscal year and your current agency capacity.
    You may also apply for a sub-grant to a State housing finance
agency, whether or not you have a housing counseling grant from HUD.
However, you must disclose all funding sources to HUD. If you are a
local housing counseling agency that is not currently HUD-approved, you
may receive FY 1999 funding only as an affiliate of a HUD-approved
national, regional, or multi-State intermediary; or State housing
finance agency.

--State housing finance agencies
    Your primary activity as a State housing finance agency is to
provide housing counseling services as a local housing counseling
agency and/or manage the use of HUD housing counseling funds, including
the distribution of counseling funding to your affiliated local housing
counseling organizations. You and your local affiliates are eligible to
undertake any or all of the housing counseling activities described for
HUD-approved local housing counseling agencies. As either a housing
counseling agency or intermediary, you and your local affiliates do not
need to be HUD-approved in order to receive these funds. As a State
housing finance agency, you can operate as a housing counseling agency
and/or as an intermediary for affiliates that perform housing
counseling functions in your State or territory. As an intermediary,
you must identify all your proposed affiliates in your application. The
amount you request should reflect anticipated operating needs for
housing counseling activities, based upon the counseling experience
during FY 1998 and your current capacity. In your role as an
intermediary, the amount you request should reflect your best estimate
of costs to oversee and fund your housing counseling affiliates. HUD
will give you wide discretion to implement your housing counseling
program with your affiliates. As a State intermediary, you must execute
sub-grant agreements with your affiliates that clearly delineate the
mutual responsibilities for program management, including appropriate
time frames for reporting results to HUD. Your affiliate may be a local
housing counseling agency. Local housing counseling agencies may also
be affiliates of national, regional, or multi-State intermediaries. You
must decide how to allocate funding among your affiliates with the
understanding that a written record will be kept of how your
determination was made. This record must be made available to the
affiliates and to HUD. You must certify that, if your affiliate is not
HUD-approved, the quality of services provided will meet, or exceed,
standards for local HUD-approved housing counseling agencies.
    You must seek other private and public sources of funding to
supplement HUD funding. HUD does not expect its counseling grant funds
to cover all costs incurred by your organization's participation in
this program. You may use the HUD grant to undertake any of the
eligible counseling activities.

(C) Eligible Activities.

    If you are a housing counseling agency funded under this SuperNOFA,
you may use HUD funds to deliver comprehensive housing counseling, or
you may specialize in delivering of particular housing counseling
services. Either way, your activities must reflect the housing needs
you submitted in your funding application for your target area and
identified in your plan. You may conduct a wide range of housing
counseling services that are eligible under this program, including:
    (1) Homebuyer Education Programs where HUD's Homebuyer Education
and Learning Program (HELP) materials are used in sessions consisting
of approximately sixteen (16) hours of training. Completion of the
training allows graduates to receive first-time homebuyer incentives,
such as a reduction in their FHA insurance premium. HUD staff at each
HUD Homeownership Center will be available to provide you with the HELP
materials.
    (2) Pre-purchase Homeownership Counseling covering purchase
procedures, mortgage financing, down payment/closing cost fund
accumulation, accessibility requirements, and if appropriate, credit
improvement, and debt consolidation.
    (3) Post-purchase Counseling including property maintenance, and
personal money management.
    (4) Mortgage delinquency and default resolution counseling
including restructuring debt, arrangement of reinstatement plans, loan
forbearance, and loss mitigation.
    (5) Home Equity Conversion Mortgage (HECM) counseling to assist
clients who are 62 years old or older with the complexities of
converting the equity in their homes to income to pay living expenses
or medical expenses.
    (6) Loss Mitigation Counseling for clients who may be facing
default and foreclosure, and need mortgage default resolution and
foreclosure avoidance counseling.
    (7) Marketing and Outreach Initiatives including providing general
information about housing opportunities within your target area and
providing housing counseling services and information to persons with
disabilities. Under this program, you are required to extend marketing
and outreach services to all segments of the population.
    (8) Renter Assistance Counseling including information about rent
subsidy programs, rights and responsibilities of tenants, and lease and
rental agreements.
    (9) Fair Housing Assistance including:
    (a) Advocating with lenders, appraisers and developers on behalf of
clients to recognize the value of non-traditional lending standards,
the vitality of housing values in all areas, and the added value of
accessible housing design; and
    (b) Advising clients on how to recognize discriminatory acts, and
how to file a Fair Housing complaint. (This will require being familiar
with the provisions of the Fair Housing Act).
    You may elect to offer your services to a wide range of clients, or
serve a more limited audience, provided your limited services do not
constitute discrimination on the basis of race, color, religion, sex,
national origin, disability or familial status. Your potential clients
include: first-time homebuyers, homebuyers and homeowners eligible for,
and applying for, HUD, VA, FmHA (or its successor agency), State,
local, or conventionally financed housing or housing assistance; or
persons who occupy such housing and seek the assistance of a housing
counseling agency to resolve a housing need. You may elect to offer
this assistance in conjunction with any HUD housing program; however,
to do this, you must be familiar with FHA's single

[[Page 9696]]

family and multifamily housing programs.

IV. Program Requirements

(A) General Requirements.

    The requirements listed in Section II of the General Section of the
SuperNOFA apply to this program.

(B) Requirements Applicable to Religious Organizations.

    Where your organization is, or you propose to contract with, a
primarily religious organization, or a wholly secular organization
established by a primarily religious organization, to provide, manage,
or operate a housing counseling program, you must undertake your
responsibilities in accordance with the following principles:
    (1) You will not discriminate against any segment of the
population;
    (2) You will not provide religious instruction or religious
counseling, conduct religious services or worship, engage in religious
proselytizing, and exert religious influence in the provision of
assistance under your Housing Counseling Program.
    (3) You will make counseling offices and services accessible to
persons with a wide range of disabilities and help such persons locate
suitable housing in locations throughout your community, target area or
metropolitan area.

(C) Performance Measurement.

    You are required to complete and submit a form HUD-9902, Fiscal
Year Activity Report. The information compiled from this report
provides HUD with its primary means of measuring your program
performance and program effectiveness.

V. Application Selection Process

(A) General

    Your application will be evaluated competitively, and ranked
against all other applicants that applied in the same funding category.
However, after selection, the actual amount funded will be based on
successful completion of negotiations. National, regional, and multi-
State applications will be rated and ranked in HUD Headquarters, and
selected for funding in rank order. Local agency and State Housing
Finance Agency applications will be rated and ranked by the HUD
Homeownership Centers and selected for funding in rank order.

(B) Factors for Award Used To Rate and Rank Applications.

    The factors for rating and ranking applicants, and maximum points
for each factor, are provided below. The maximum number of points for
each applicant is 102. This includes two EZ/EC bonus points, as
described in the General Section of the SuperNOFA.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational
Experience (20 Points)
    This factor addresses the extent to which you have the
organizational resources necessary to successfully implement your
proposed activities in a timely manner. Your rating or the rating of
your organization and staff for technical merit will include any
subcontractors, consultants, subrecipients, and members of consortia
that are identified as participants in your proposal. In rating this
factor, HUD will consider the extent to which your proposal
demonstrates:
    (1) (10 points) The knowledge and experience of your proposed
project director and staff, including the day-to-day program manager,
consultants and contractors in planning and managing programs for which
you are requesting funding. Your experience will be judged in terms of
recent, relevant and successful experience of your staff to undertake
eligible program activities. You are expected to have sufficient
personnel, or be able to quickly access qualified experts or
professionals, to deliver the proposed activities in a timely and
effective fashion. HUD will assess the readiness and ability of your
organization to immediately begin your proposed work program. To
demonstrate that you have sufficient personnel, you must submit the
proposed number of staff for each task to be conducted, by the
employees and experts allocated to each activity you plan to undertake
in your program. You must identify their titles and relevant
professional background and experience related to the tasks they are to
perform. In addition, you must allocate the staff hours for each task
of these employees and experts.
    (2) (10 points) Your past experience in terms of your ability to
attain measurable progress in the implementation of your most recent
activities where your performance has been assessed. HUD will consider
your performance as measured by your expenditures and demonstrated
progress in achieving the purpose of the activities. HUD will also
consider any documented evidence, such as form HUD-9902, of your
failure under past awards to comply with grant award provisions.
Rating Factor 2: Need/Extent of the Problem (20 Points)
    This factor addresses the extent to which there is a need for
funding your proposed program activities to address a documented
problem in your target area. To the extent that the community served by
your housing counseling organization has documented the need in the
community's Consolidated Plan or Analysis of Impediments to Fair
Housing Choice (AI); or requirements of court orders or consent
decrees, settlements and voluntary compliance agreements, references to
these documents should be included in the response. If your proposed
activities are not covered under the scope of the Consolidated Plan or
AI, you should indicate such and use other sound data sources to
identify the level of need for your proposed program of activities.
    In responding to this factor, you will be evaluated on the extent
to which you document a critical level of need for your proposed
activities in the area where activities will be carried out. The
documentation of need should demonstrate the extent of the problem
addressed by the proposed activities. Examples of data that might be
used to demonstrate need, include economic and demographic data
relevant to the target area and your proposed activities. There must be
a clear relationship between the proposed activities, community needs
and the purposes of this program for an applicant to receive points for
this factor.
Rating Factor 3: Soundness of Approach (40 Points)
    This factor addresses the quality and effectiveness of your
proposed work plan. In rating this factor, HUD will consider the
following:
    (1) The extent to which the design and scope of your activities
provide for geographic coverage for target areas as well as persons
traditionally underserved, including identification of immediate
benefits to be achieved and indicators by which these benefits will be
measured;
    (2) The extent to which you have a clear agenda and identify
specific activities to be performed, such as:
    (a) Screening interviews with clients;
    (b) Setting up a client file with intake information and counseling
plan; and
    (c) Having the client sign an agreement accepting the counseling
plan and making a commitment to attend the required counseling
sessions;
    (3) The extent to which your proposed tasks use documented,
technically competent methodologies for conducting the work to be
performed.

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HUD will assess the extent to which your proposed work plan identifies
documented, proven methodologies for the types of services to be
performed.
    (4) The extent to which you demonstrate the relationship between
the proposed activities, community needs and the purposes of this
program.
    (5) The extent to which your proposed activities undertake
affirmatively furthering fair housing (AFFH). Affirmatively furthering
fair housing may be undertaken in a variety of ways, as appropriate to
your target area. The following are some suggestions for all housing
counseling agencies:
    (a) Implementing affirmative marketing strategies to attract all
segments of the population regardless of race, color, religion,
national origin, sex, familial status, and disability, especially those
least likely to request housing counseling services to purchase or
retain their homes.
    (b) Being pro-active in reducing concentrations of poverty and/or
minority populations in the target area. This could include working
with, or adopting the counseling practices of, agencies which conduct
housing opportunity counseling to encourage low-income and minority
persons to move to low-concentration areas, and helping to locate
suitable housing in such areas.
    (c) Working with local lenders to develop alternative lending
criteria. For instance, you may make referrals to lenders of clients
with good credit and payment histories, but who do not fit the standard
profiles for lending practices, or advocate with financial institutions
on behalf of clients with financial patterns which reflect cultural
differences (such as family savings pools, which are common among some
Asian populations). Your activities should also focus on finding
appropriate housing, free from environmental hazards, for all segments
of the population in neighborhoods with good transportation, schools,
employment opportunities, and other services.
    (b) The following are some suggested activities for national,
regional, or multi-State intermediaries and State Housing Finance
Agencies:
    (i) Training affiliates in Fair Housing issues.
    (ii) Making national or regional agreements with lenders, insurers,
and organizations which train appraisers and loan appraisers on fair
housing requirements, accessibility, and financing methods which
support your organization's fair housing and housing opportunity
efforts.
Rating Factor 4: Leveraging Resources (10 Points)
    This factor addresses your ability to secure community resources
which can be combined with HUD's program resources to achieve your
program purposes. In evaluating this factor HUD will consider:
    (1) The extent to which you have partnered with other entities to
secure additional resources to increase the effectiveness of your
proposed program activities. Resources may include funding or in-kind
contributions, such as services or equipment, allocated to the
purpose(s) of your program. Resources may be provided by governmental
entities, public or private nonprofit organizations, for-profit private
organizations, or other entities willing to partner with you. You may
also partner with other program funding recipients to coordinate the
use of housing counseling and support services in your target area.
    (2) You must provide evidence of leveraging/partnerships by
including in your application letters of firm commitments, memoranda of
understanding, or agreements to participate from entities identified as
partners in your application. Each letter of commitment, memoranda of
understanding, or agreement to participate should include the
partnering organization's name, proposed level of commitment and
responsibilities as they relate to your proposed program. The
commitment letter must also be signed by an official of the
organization legally able to make commitments on behalf of the
partnering organization.
    If you are a local counseling agency, you are expected to seek
other private and public sources of funding to supplement HUD funding.
HUD never intends for its counseling grant funds to cover all costs
incurred by an agency participating in the program.
    If you are a local housing counseling agency, you may use your HUD
grant to undertake any of the eligible housing counseling activities
described in this Housing Counseling Program section of the SuperNOFA.
All of your proposed activities and the activities of your partners
must be included in your HUD-approved plan. NOTE: HUD housing
counseling funding is not intended to fully fund either an
intermediary's housing counseling program, or the housing counseling
programs of the its local affiliates. All intermediaries and their
local affiliates are expected to seek other private and public sources
of funding for housing counseling to supplement HUD funding.
Rating Factor 5: Comprehensiveness and Coordination (10 Points)
    This factor addresses the extent to which you have coordinated your
activities with other known organizations, participated or promoted
participation in a community's Consolidated Planning process and are
working towards addressing identified needs in a holistic and
comprehensive manner through linkages with other activities in your
community. In evaluating this factor, HUD will consider the extent to
which you can demonstrate you have:
    (1) Coordinated your proposed activities with those of other groups
or organizations prior to submission in order to best complement,
support and coordinate all known activities; and, if funded, the
specific steps you will take to share information on solutions and
outcomes with others. Any written agreements or memoranda of
understanding in place should be described.
    (2) Taken or will take specific steps to become active in the
Consolidated Planning process (including the Analysis of Impediments to
Fair Housing Choice) established in your target area to identify and
address needs/problems related to the activities you propose in your
application. If you reported in your FY 1998 application that you
``will take specific steps'', describe what steps you have taken.
    (3) Taken or will take specific steps to develop linkages to
coordinate comprehensive solutions through meetings, information
networks, planning processes or other mechanisms with:
    (a) Other HUD-funded projects/activities outside the scope of those
covered by the target area's Consolidated Plan; and
    (b) Other Federal, State or locally funded activities, including
those proposed or on-going in your target area.
    If you reported in your FY 1998 application that you ``will take
specific steps'', describe what steps you have taken.

VI. Application Submission Requirements

(A) General.

    The contents of your application will differ if you are a local
housing counseling agency; or a national, regional, or multi-State
intermediary; or a State housing finance agency. However, all
applicants are expected to submit the forms, certifications and
assurances set forth in the General Section of the SuperNOFA. Copies of
all form/documents required to be

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completed can be found in the application kit. In addition to these
certifications and assurances the following are required to be part of
your housing counseling application:
    (1) Narrative statement addressing the five Rating Factors in
Section V.(B) of this program section of the SuperNOFA. Your narrative
response should be numbered in accordance with the rating factors and
subfactors identified in Section V.(B) of this program section of the
SuperNOFA.
    (2) Form HUD-9902, Housing Counseling Agency Fiscal Year Activity
Report, for fiscal year October 1, 1997 through September 30, 1998. If
you did not participate in HUD's Housing Counseling Program during FY
1998, this report should be completed to reflect your counseling
workload during that period. This form must be fully completed and
submitted by every applicant for FY 1999 HUD funding;
    (3) Budget Work Sheet. A proposed budget for use of the requested
HUD funds;
    (4) Evidence of Housing Counseling Funding Sources (required by all
applicants);
    (5) You must provide a descriptive narrative that sets forth your
prior fiscal year's performance as related to its goals, objectives and
mission. Your narrative must describe the most recent operational and
program activities of your organization;
    (6) Current Housing Counseling Plan. Your Housing Counseling Plan
must describe your housing counseling needs, goals, and objectives
related to the scope of services you propose to provide, including a
description of all counseling activities to be performed.
    (7) Direct-labor and Hourly-labor rate and Counseling Time Per
Client for proposed tasks;
    (8) The Congressional District in which your proposed activities
are to occur;
    (9) If you are a State housing finance agency, you must submit your
statutory authority to operate as a State housing finance agency.

(B) National, Regional, and Multi-State Intermediaries; and State
Housing Finance Agencies.

    If you are a national, regional, or multi-State intermediary or a
State housing finance agency, you must submit an application which
covers both your network organization and your affiliated agencies.
Your application must include:
    (1) A description of your affiliated agencies. For each affiliated
agency, list the following information:
    (a) Organization name;
    (b) Address;
    (c) Director and contact person (if different);
    (d) Phone/FAX numbers (including TTY, if available);
    (e) Federal tax identification number;
    (f) ZIP code service areas;
    (g) Number of staff providing counseling;
    (h) Type of services offered (defined by homebuyer education
programs, pre-purchase counseling, post-purchase counseling, mortgage
default and delinquency counseling, HECM counseling, outreach
initiatives, renter assistance, and other);
    (i) Number of years of housing counseling experience.
    (2) Relationship with Affiliates. You must briefly describe your
relationship with your affiliates (i.e. membership organization, field
or branch office, subsidiary organization, etc.).
    (3) Oversight System. You must briefly describe the process that
will be used to determine affiliate funding levels, distribute funds,
and monitor affiliate performance.

VII. Corrections to Deficient Applications

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

VIII. Environmental Requirements

    In accordance with 24 CFR 50.19(b)(9) and (12) of the HUD
regulations, activities assisted under this program are categorically
excluded from the requirements of the National Environmental Policy Act
and are not subject to environmental review under the related laws and
authorities.

IX. Authority

    HUD's Housing Counseling Program is authorized by section 106 of
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x), and is
generally governed by HUD Handbook 7610.1, REV-4, dated August 9, 1995.

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