Notice of Funding Availability for Revitalization of Severely Distressed Public Housing HOPE VI Revitalization Grants Fiscal Year 2005, 16554-16690 [05-6238]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 70, Number 61 (Thursday, March 31, 2005)]
[Notices]
[Pages 16554-16690]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-6238]



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Part II





Department of Housing and Urban Development





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Notice of Funding Availability for Revitalization of Severely 
Distressed Public Housing HOPE VI Revitalization Grants Fiscal Year 
2005; Notice

Federal Register / Vol. 70, No. 61 / Thursday, March 31, 2005 / 
Notices

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4982-N-01]


Notice of Funding Availability for Revitalization of Severely 
Distressed Public Housing HOPE VI Revitalization Grants Fiscal Year 
2005

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Notice of funding availability.

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Overview Information

    A. Federal Agency Name. Department of Housing and Urban 
Development, Office of Public and Indian Housing.
    B. Funding Opportunity Title. Revitalization of Severely Distressed 
Public Housing HOPE VI Revitalization Grants Fiscal Year 2005.
    C. Announcement Type. Initial announcement.
    D. Funding Opportunity Number. The Federal Register number for this 
NOFA is: FR-4982-N-01. The OMB approval number for this program is: 
2577-0208.
    E. Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA 
number for this NOFA is 14-866, ``Demolition and Revitalization of 
Severely Distressed Public Housing (HOPE VI).''
    F. Dates. 1. Application Submission Date: The application 
submission date shall be June 29, 2005. See the General Section for 
application submission and timely receipt requirements.
    2. Estimated Grant Award Date: The estimated award date will be 
approximately September 27, 2005.
    G. Optional, Additional Overview Content Information. 1. Available 
Funds. This NOFA announces the availability of approximately $110 
million in FY2005 funds for HOPE VI Revitalization Program grants, plus 
approximately $25 million additional for grantees' first-year, grant-
related housing choice voucher (HCV) assistance.
    2. Proposed Rescission of Funds. The public is hereby notified that 
although this NOFA announces the availability of FY 2005 HOPE VI Funds, 
the FY 2006 proposed budget includes the rescission of the FY 2005 HOPE 
VI Appropriation. Therefore, this NOFA may be cancelled at a later date 
and applications made under this NOFA may not be funded.
    3. The maximum amount of each grant award is $20 million. It is 
anticipated that six grant awards will be made.
    4. Housing choice voucher assistance is available to successful 
applicants that receive the revitalization grant awards. The dollar 
amount of HCV assistance is in addition to the $20 million maximum 
award amount and will be based upon resident relocation needs.
    5. All non-troubled public housing authorities (PHAs) with severely 
distressed public housing are eligible to apply. Troubled PHAs must 
have received HUD approval to be considered eligible to apply. PHAs 
that manage only a HCV program, tribal PHAs and tribally-designated 
housing entities are not eligible.
    6. A match of at least five percent is required.
    7. Each applicant may submit only one HOPE VI revitalization 
application.
    8. Application materials may be obtained from the Federal Register 
or over the Internet from https://www.grants.gov/FIND. Technical 
corrections will be published in the Federal Register. Both technical 
corrections and frequently asked questions will be posted on the 
grants.gov website.
    9. HUD's general policy requirements apply to all HUD Federal 
financial assistance NOFAs for Fiscal Year (FY) 2005. These policies 
cover those NOFAs issued under HUD's Super Notice of Funding 
Availability (SuperNOFA) General Section (70 FR 13576), published in 
the Federal Register on March 21, 2005, as well as those issued after 
the General Section is published in the Federal Register.

Full Text of Announcement

I. Funding Opportunity Description

    A. Program Description. In accordance with Section 24(a) of the 
United States Housing Act of 1937 (1937 Act) (42 U.S.C. 1437v), the 
purpose of HOPE VI revitalization grants is to assist PHAs to: 1. 
Improve the living environment for public housing residents of severely 
distressed public housing projects through the demolition, 
rehabilitation, reconfiguration, or replacement of obsolete public 
housing projects (or portions thereof);
    2. Revitalize sites (including remaining public housing dwelling 
units) on which such public housing projects are located and contribute 
to the improvement of the surrounding neighborhood;
    3. Provide housing that will avoid or decrease the concentration of 
very low-income families; and
    4. Build sustainable communities.
    B. Authority. 1. The funding authority for HOPE VI revitalization 
grants under this HOPE VI NOFA is provided by the Consolidated 
Appropriations Act, 2005 (Pub. L. 108-447, approved December 8, 2004) 
under the heading ``Revitalization of Severely Distressed Public 
Housing (HOPE VI).''
    2. The program authority for the HOPE VI program is Section 24 of 
the 1937 Act, as amended by Section 402 of the HOPE VI Program 
Reauthorization and Small Community Mainstreet Rejuvenation and Housing 
Act of 2003 (Pub. L. 108-186, approved December 16, 2003).
    C. Definitions. 1. Developer. A developer is an entity contracted 
to develop (and possibly operate) a mixed finance development that 
includes public housing units, pursuant to 24 CFR part 941, subpart F. 
A developer most often has an ownership interest in the entity that is 
established to own and operate the replacement units (e.g., as the 
general partner of a limited partnership).
    2. Public Housing Project. A public housing project is a group of 
assisted housing units that has a single Project Number assigned by the 
Director of Public Housing of a HUD Field Office and has, or had (in 
the case of previously demolished units) housing units under an Annual 
Contributions Contract.
    3. Replacement Housing. Under this HOPE VI NOFA, a HOPE VI 
replacement housing unit shall be deemed to be any combination of 
public housing rental units, eligible homeownership units under Section 
24(d)(1)(J) of the 1937 Act, and HCV assistance that does not exceed 
the number of units demolished and disposed of at the targeted severely 
distressed public housing project.
    4. Severely Distressed. a. In accordance with section 24(j)(2) of 
the 1937 Act, the term ``severely distressed public housing'' means a 
public housing project (or building in a project) that:
    (1) Requires major redesign, reconstruction, or redevelopment--or 
partial or total demolition--to correct serious deficiencies in the 
original design (including inappropriately high population density), 
deferred maintenance, physical deterioration or obsolescence of major 
systems, and other deficiencies in the physical plan of the project;
    (2) Is a significant contributing factor to the physical decline 
of, and disinvestment by public and private entities in, the 
surrounding neighborhood;
    (3) (a) Is occupied predominantly by families who are very low-
income families with children, have unemployed members, and are 
dependent on various forms of public assistance; (b) has high rates of 
vandalism and criminal activity

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(including drug-related criminal activity) in comparison to other 
housing in the area; or (c) is lacking in sufficient appropriate 
transportation, supportive services, economic opportunity, schools, 
civic and religious institutions, or public services, resulting in 
severe social distress in the project;
    (4) Cannot be revitalized through assistance under other programs, 
such as the Capital Fund and Operating Fund programs for public housing 
under the 1937 Act, or the programs under Sections 9 or 14 of the 1937 
Act (as in effect before the effective date under Section 503(a) of the 
Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, 
approved October 21, 1998), because of cost constraints and inadequacy 
of available amounts; and
    (5) In the case of an individual building that currently forms a 
portion of the public housing project targeted by the application to 
this NOFA:
    (a) Is sufficiently separable from the remainder of the project of 
which the building is part, such that the revitalization of the 
building is feasible; or
    (b) Was part of the targeted public housing project that has been 
legally vacated or demolished, but for which HUD has not yet provided 
replacement housing assistance (other than tenant-based assistance). 
``Replacement housing assistance'' is defined as funds that have been 
furnished by HUD to perform major rehabilitation on, or reconstruction 
of, the public housing units that have been legally vacated or 
demolished.
    b. A severely distressed project that has been legally vacated or 
demolished (but for which HUD has not yet provided replacement housing 
assistance, other than tenant-based assistance) must have met the 
definition of physical distress not later than the day the demolition 
application approval letter was dated by HUD.
    5. Targeted Project. The targeted project is the current public 
housing project that will be revitalized with funding from this NOFA. 
The targeted project may include more than one public housing project 
or be a part of a public housing project. See Section III.C.1. of this 
NOFA for eligibility of multiple public housing projects and 
separability of a part of a public housing project.
    6. Temporary Relocation. There are no provisions for ``temporary 
relocation'' under the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act Of 1970 (URA). See Notice CPD 04-2, ``Guidance 
on the Application of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act Of 1970 (URA), As Amended, in HOPE VI 
Projects,'' paragraph IV.A.2. for the definition of ``temporary 
relocation'' as it applies to HOPE VI projects. The Notice can be 
obtained through HUDClips at https://www.hudclips.org/.
    D. Eligible Revitalization Activities. HOPE VI Revitalization 
grants may be used for activities to carry out revitalization programs 
for severely distressed public housing in accordance with Section 24(d) 
of the 1937 Act. Revitalization activities approved by HUD must be 
conducted in accordance with the requirements of this NOFA. The 
following is a list of eligible activities.
    1. Relocation. Relocation, including reasonable moving expenses, 
for residents displaced as a result of the revitalization of the 
project. See Sections III.C.4. and V.A.6. of this NOFA for relocation 
requirements.
    2. Demolition. Demolition of dwelling units or non-dwelling 
facilities, in whole or in part, although demolition is not a required 
element of a HOPE VI Revitalization Plan.
    3. Disposition. Disposition of a severely distressed public housing 
site, by sale or lease, in whole or in part, in accordance with Section 
18 of the 1937 Act and implementing regulations at 24 CFR part 970. A 
lease of one year or more that is not incident to the normal operation 
of a project is considered a disposition that is subject to Section 18 
of the 1937 Act.
    4. Rehabilitation and Physical Improvement. Rehabilitation and 
physical improvement of:
    a. Public housing; and
    b. Community facilities, provided that the community facilities are 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the public housing project and 
residents of off-site replacement housing, in accordance with 24 CFR 
968.112(b), (d), (e), and (g)-(o) and 24 CFR 968.130 and 968.135(b) and 
(d) or successor regulations, as applicable.
    5. Development. Development of:
    a. Public housing replacement units; and
    b. Other units (e.g., market-rate units), provided a need exists 
for such units and such development is performed with non-public 
housing funds.
    6. Homeownership Activities. Assistance involving the 
rehabilitation and development of homeownership units. Assistance may 
include:
    a. Down payment or closing cost assistance;
    b. Hard or soft second mortgages; or
    c. Construction or permanent financing for new construction, 
acquisition, or rehabilitation costs related to homeownership 
replacement units.
    7. Acquisition. Acquisition of:
    a. Rental units and homeownership units;
    b. Land for the development of off-site replacement units and 
community facilities (provided that the community facilities are 
primarily intended to facilitate the delivery of community and 
supportive services for residents of the public housing project and 
residents of off-site replacement housing);
    c. Land for economic development-related activities, provided that 
such acquisition is performed with non-public housing funds.
    8. Management Improvements. Necessary management improvements, 
including transitional security activities.
    9. Administration, Planning, Etc. Administration, planning, 
technical assistance, and other activities (including architectural and 
engineering work, program management, and reasonable legal fees) that 
are related to the implementation of the Revitalization Plan, as 
approved by HUD. See Cost Control Standards in Section IV.E. of this 
NOFA.
    10. Community and Supportive Services (CSS).
    a. The CSS component of the HOPE VI program encompasses all 
activities that are designed to promote upward mobility, self-
sufficiency, and improved quality of life for the residents of the 
public housing project involved.
    b. CSS activities. CSS activities may include, but are not limited 
to:
    (1) Educational activities that promote learning and serve as the 
foundation for young people from infancy through high school 
graduation, helping them to succeed in academia and the professional 
world. Such activities, which include after-school programs, mentoring, 
and tutoring, must be created with strong partnerships with public and 
private educational institutions.
    (2) Adult educational activities, including remedial education, 
literacy training, tutoring for completion of secondary or 
postsecondary education, assistance in the attainment of certificates 
of high school equivalency, and English as a Second Language courses, 
as needed.
    (3) Readiness and retention activities, which frequently are key to 
securing private sector commitments to the provision of jobs.
    (4) Employment training activities that include results-based job 
training, preparation, counseling, development, placement, and follow-
up assistance after job placement.

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    (5) Programs that provide entry-level, registered apprenticeships 
in construction, construction-related, maintenance, or other related 
activities. A registered apprenticeship program is a program that has 
been registered with either a State Apprenticeship Agency recognized by 
the Department of Labor's (DOL) Office of Apprenticeship Training, 
Employer and Labor Services (OATELS) or, if there is no recognized 
state agency, by OATELS. See also DOL regulations at 29 CFR part 29.
    (6) Training on topics such as parenting skills, consumer 
education, family budgeting, and credit management.
    (7) Homeownership counseling that is scheduled to begin promptly 
after grant award so that, to the maximum extent possible, qualified 
residents will be ready to purchase new homeownership units when they 
are completed. The Family Self-Sufficiency program can also be used to 
promote homeownership, providing assistance with escrow accounts and 
counseling.
    (8) Coordinating with health care providers or providing on-site 
space for health clinics, doctors, wellness centers, dentists, etc. 
that will primarily serve the public housing residents. HOPE VI funds 
may not be used to provide direct medical care to residents.
    (9) Substance and alcohol abuse treatment and counseling.
    (10) Activities that address domestic violence treatment and 
prevention.
    (11) Child care services that provide sufficient hours of operation 
to facilitate parental access to education and job opportunities, serve 
appropriate age groups, and stimulate children to learn.
    (12) Transportation, as necessary, to enable all family members to 
participate in available CSS activities and to commute to their places 
of employment.
    (13) Entrepreneurship training and mentoring, with the goal of 
establishing resident-owned businesses.
    11. Leveraging. Leveraging other resources, including additional 
housing resources, supportive services, job creation, and other 
economic development uses on or near the project that will benefit 
future residents of the site.
    12. General Section Reference. Section I, ``Funding Opportunity 
Description,'' of the Notice of HUD's Fiscal Year 2005 Notice of 
Funding Availability (NOFA) Policy Requirements and General Section to 
the Super NOFA for HUD's Discretionary Programs (General Section), 
Docket No. FR-4950-N-01, published in the Federal Register on March 21, 
2005, is hereby incorporated by reference.

II. Award Information

A. Availability of HOPE VI Funds

    1. Proposed Rescission of Funds. The public is hereby notified that 
although this NOFA announces the availability of FY 2005 HOPE VI Funds, 
the FY 2006 proposed budget includes the rescission of the FY 2005 HOPE 
VI Appropriation. Therefore, this NOFA may be cancelled at a later date 
and applications made under this NOFA may not be funded.

------------------------------------------------------------------------
                                                         Funds available
                                                          for award in
                  Type of assistance                      this HOPE VI
                                                              NOFA
                                                          (approximate)
------------------------------------------------------------------------
Revitalization Grants.................................      $110,000,000
Housing Choice Voucher Assistance.....................        25,000,000
                                                       -----------------
    Total.............................................       135,000,000
------------------------------------------------------------------------

    2. Revitalization Grants. Approximately $110 million of the FY2005 
HOPE VI appropriation has been allocated to fund HOPE VI Revitalization 
grants and will be awarded in accordance with this NOFA. There will be 
approximately six awards.
    3. The maximum amount you may request in your application for grant 
award is limited to $20 million or the sum of the amounts in Section 
IV.E.5. below, whichever is lower. HCV assistance is in addition to 
this amount.
    4. Housing Choice Voucher Assistance. Approximately $25 million of 
the HOPE VI appropriation will be allocated for Housing Choice Voucher 
(HCV) assistance. HCV assistance will be provided to HOPE VI 
Revitalization NOFA awardees. If $25 million is more than the amount 
necessary to fund the HOPE VI grantee's HCV needs, the remaining funds 
will be used for other eligible activities under Section 24 of the 1937 
Act.
    5. Grant term. The period for completion shall not exceed 54 months 
from the date the NOFA award is executed by HUD.

III. Eligibility Information

A. Eligible Applicants

    1. PHAs that have severely distressed housing in their inventory 
and are otherwise in conformance with the threshold requirements 
provided in Section III.C. of this NOFA. See Section IV.B.4. of this 
NOFA for threshold documentation requirements.
    2. Housing Choice Voucher Programs Only and Tribal Housing 
Agencies. PHAs that only administer HCV programs, e.g., Section 8, HCV, 
and tribal PHAs and tribally-designated housing entities, are not 
eligible to apply.
    3. Troubled Status. If HUD has designated your housing authority as 
troubled pursuant to Section 6(j)(2) of the 1937 Act, HUD will use 
documents and information available to it to determine whether you 
qualify as an eligible applicant. In accordance with Section 24(j) of 
the 1937 Act, the term ``applicant'' means:
    a. Any PHA that is not designated as ``troubled'' pursuant to 
Section 6(j)(2) of the 1937 Act;
    b. Any PHA for which a private housing management agent has been 
selected, or a receiver has been appointed, pursuant to Section 6(j)(3) 
of the 1937 Act; and
    c. Any PHA that is designated as ``troubled'' pursuant to Section 
6(j)(2) of the 1937 Act and that:
    (1) Is designated as troubled principally for reasons that will not 
affect its capacity to carry out a revitalization program;
    (2) Is making substantial progress toward eliminating the 
deficiencies of the agency that resulted in its troubled status;
    (3) Has not been found to be in non-compliance with fair housing or 
other civil rights requirements; or
    (4) Is otherwise determined by HUD to be capable of carrying out a 
revitalization program.

B. Cost Sharing or Matching

1. Match Requirements
    a. Revitalization Grant Match. HUD is required by the 1937 Act (42 
U.S.C. 1437v(c)(1)(A)) to include the requirement for matching funds 
for all HOPE VI-related grants. You are required to have in place a 
match in the amount of five percent of the requested grant amount in 
cash or in-kind donations. Applications that do not demonstrate the 
minimum 5 percent match will not be considered for funding.
    b. Additional Community and Supportive Services (CSS) Match. (1) In 
accordance with the 1937 Act (42 U.S.C. 1437v(c)(1)(B)), in addition to 
the 5 percent revitalization grant match in Section a. above, you may 
be required to have in place a CSS match. Funds used for the 
Revitalization grant match cannot be used for the CSS match.
    (2) If you are selected for funding through this NOFA, you may use 
up to 15 percent of your grant for CSS activities. However, if you 
propose to use more than 5 percent of your HOPE VI grant for CSS 
activities, you must have in place funds from sources other than HOPE 
VI, that match the amount between 5 and 15 percent of the grant that 
you will use for CSS activities.

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    c. No HOPE VI Funding in Match. In accordance with Section 24(c) of 
the Act, for purposes of calculating the amount of matching funds 
required by Sections a. and b. above, you may not include amounts from 
HOPE VI program funding, including HOPE VI Revitalization, HOPE VI 
Demolition, HOPE VI Neighborhood Networks or HOPE VI Main Street 
grants. You may include funding from other public housing sources 
(e.g., Capital Funds), other federal sources, any state or local 
government source and any private contributions. You may also include 
the value of donated material or buildings, the value of any lease on a 
building, the value of the time and services contributed by volunteers, 
and the value of any other in-kind services or administrative costs 
provided.
    d. Firmly and Irrevocably Committed. (1) Match donations must be 
firmly committed. ``Firmly committed'' means that the amount of match 
resources and their dedication to HOPE VI Revitalization activities 
must be explicit, in writing, and signed by a person authorized to make 
the commitment. See Section IV.F. of the General Section for 
instructions on how to electronically submit third party documents.
    (2) Match donations must be irrevocably committed. See Section 
VI.B.5.a. of this NOFA.
    e. Matching funds must be directly applicable to the revitalization 
of the targeted project and the transformation of the lives of 
residents.
    f. The PHA's staff time is not an eligible cash or in-kind match.
    g. See Section IV.B.3 of this NOFA for match documentation 
requirements.

C. Other

1. Thresholds
    If you have not met a threshold, or, when required by this NOFA, 
have not included in the application the complete, correct, required 
documentation that demonstrates the threshold has been met, the 
application will not be considered for funding. Threshold insufficiency 
cannot be cured after the application submission date. See Section 
IV.B. of this NOFA for documentation requirements.
    a. One application. Each applicant may submit only one HOPE VI 
Revitalization application as described in this NOFA. If a single 
applicant submits more than one application, all applications will be 
disqualified and no application will be eligible for funding.
    b. Appropriateness of Proposal. In accordance with Section 24(e)(1) 
of the 1937 Act, each application must demonstrate the appropriateness 
of the proposal (revitalization plan) in the context of the local 
housing market relative to other alternatives. You must discuss other 
possible alternatives in the local housing market and explain why the 
housing envisioned in the application is more appropriate. This is a 
statutory requirement and an application threshold. If you do not 
demonstrate the appropriateness of the proposal (revitalization plan) 
in the context of the local housing market relative to other 
alternatives, your application will not be considered for funding. 
Examples of alternative proposals may include:
    (1) Rebuilding or rehabilitating an existing project or units at an 
off-site location that is in an isolated, non-residential, or otherwise 
inappropriate area;
    (2) Proposing a range of incomes, housing types (rental, 
homeownership, market-rate, public housing, townhouse, detached house, 
etc.), or costs which cannot be supported by a market analysis; or
    (3) Proposing to use the land in a manner that is contrary to the 
goals of your agency.
    (4) See Section IV.B.4.a. of this NOFA for documentation 
requirements.
    c. Contiguous, Single, and Scattered-Site Projects. Except as 
provided in sections (1) and (2) below, each application must target 
one severely distressed public housing project.
    (1) Contiguous Projects. Each application may request funds for 
more than one project if those projects are immediately adjacent to one 
another or within a quarter-mile of each other. If you include more 
than one project in your application, you must provide a map that 
clearly indicates that the projects are within a quarter-mile of each 
other. If HUD determines that they are not, your application will not 
be considered for funding.
    (2) Scattered Site Projects. Your application may request funds to 
revitalize a scattered site public housing project. The sites targeted 
in an application proposing to revitalize scattered sites (regardless 
of whether the scattered sites are under multiple project numbers) must 
fall within an area with a one-mile radius. You may identify a larger 
site if you can show that all of the targeted scattered site units are 
located within the hard edges (e.g., major highways, railroad tracks, 
lakeshore, etc.) of a neighborhood. If you propose to revitalize a 
project that extends beyond a one-mile radius or is otherwise beyond 
the hard edges of a neighborhood, your application will not be 
considered for funding. See Section IV.B.4.b. of this NOFA for 
documentation requirements.
    d. Desegregation Orders. You must be in full compliance with any 
desegregation or other court order, and voluntary compliance agreements 
related to Fair Housing (e.g., Title VI of the Civil Rights Act of 
1964, the Fair Housing Act, and Section 504 of the Rehabilitation Act 
of 1973) that affects your public housing program and that is in effect 
on the date of application submission. If you are not in full 
compliance with any desegregation or other court orders, your 
application will be ineligible for funding.
    e. Non-Public Housing Funding for Non-Public Housing or Replacement 
Units. If the application demonstrates that you are planning to use 
public housing funds, which include HOPE VI funds, to develop: Retail 
or commercial space; economic development space; or housing units that 
are not Replacement Housing (See Section I.C. of this NOFA), your 
application will not be considered for funding. See Section IV.B.4.c. 
for documentation requirements regarding this threshold.
    f. Open Inspector General Audits. (1) If you have an open Inspector 
General (IG) audit finding that has not been resolved to HUD's 
satisfaction before the submission date of this NOFA, the application 
will not be considered for funding.
    (2) HUD's decision regarding whether a charge, lawsuit, or a letter 
of findings has been satisfactorily resolved will be based on whether 
appropriate actions have been taken to address the findings.
    g. Performance of Existing HOPE VI Grantees. (1) The application 
will not be considered for funding if you have an existing HOPE VI 
Revitalization grant, and
    (a) The grant development is delinquent due to actions or inactions 
that are not beyond the control of the grantee; and
    (b) The grantee is not making substantial progress toward 
eliminating the delinquency.
    (2) ``Delinquent'' means that resident relocation, unit demolition, 
unit construction, unit rehabilitation, unit occupancy, or unit re-
occupancy have not occurred in accordance with the grantee's current 
Revitalization Plan.
    (3) Reasons that are beyond the control of the grantee include, but 
are not limited to, the following:
    (a) Litigation;
    (b) Court Orders;
    (c) Unforeseen environmental conditions; and
    (d) Emergency and natural disasters.
    (4) HUD will use documents and information available to it to 
determine

[[Page 16558]]

whether the grant is delinquent due to reasons that are beyond the 
control of the grantee and whether the grantee is making substantial 
progress toward eliminating the delinquency.
    h. Previously Funded Sites. You may submit a Revitalization 
application that targets part of a project that is being revitalized or 
replaced under an existing HOPE VI Revitalization grant. You may not 
apply for new HOPE VI Revitalization funds for units in that project 
that were funded by the existing HOPE VI Revitalization grant or other 
HUD funds which are used to achieve significant revitalization of units 
(as opposed to regular upkeep), even if those funds are inadequate to 
pay the costs to revitalize or replace all of the targeted units. 
However, Replacement Housing Factor funds will not be considered as 
funds which are used to achieve significant revitalization of units. 
For example, if a project has 700 units and you were awarded a HOPE VI 
Revitalization grant or other HUD public housing funds to address 300 
of those units, you may submit an FY-2005 HOPE VI Revitalization 
application to revitalize the remaining 400 units. You may not apply 
for funds to supplement work on the original 300 units. If you request 
funds to revitalize units or buildings that have been funded by an 
existing HOPE VI Revitalization grant or other HUD funds, your 
application will not be considered for funding.
    i. Program Schedule. Your application must contain a program 
schedule that provides a feasible plan to meet the schedule 
requirements of Section VI.B.2. of this NOFA, with no impediments such 
as litigation that would prevent timely startup. The program schedule 
must indicate the date on which the development proposal for each phase 
of the revitalization plan will be submitted to HUD. A development 
proposal may by for a mixed-finance development, homeownership 
development, etc., will be submitted to HUD. If your application does 
not contain a program schedule, as described above, the application 
will not be considered for funding. See Section IV.B.4.d. of this NOFA 
for documentation requirements.
    j. Separability. In accordance with Section 24(j)(2)(A)(v) of the 
1937 Act, if you propose to target only a portion of a project for 
revitalization, you must:
    (1) Demonstrate to HUD's satisfaction that the severely distressed 
public housing is sufficiently separable from the remainder of the 
project of which the building is part to make use of the building 
feasible for revitalization. Separations may include a road, berm, 
catch basin, or other recognized neighborhood distinction.
    (2) Demonstrate that the site plan and building designs of the 
revitalized portion will provide defensible space for the occupants of 
the revitalized building(s) and that the properties that remain will 
not have a negative influence on the revitalized buildings(s), either 
physically or socially.
    (3) If your application does not demonstrate separability, your 
application will not be considered for funding.
    k. Severe Distress of Targeted Project. The targeted public housing 
project must be severely distressed. See Section I.C. of this NOFA for 
the definition of ``severely distressed.'' If the targeted project is 
not severely distressed, your application will not be considered for 
funding. See Section IV.B.5.a. of this NOFA for documentation 
requirements.
    l. Site Control. (1) If you propose to develop off-site housing in 
any phase of your proposed revitalization plan, you MUST provide 
evidence in your application that you (not your developer) have site 
control of the property(ies).
    (2) Site control may only be contingent upon:
    (a) The receipt of the HOPE VI grant;
    (b) Satisfactory compliance with the environmental review 
requirements of this NOFA; and
    (c) The site and neighborhood standards in Section III.C.4.n.(1) of 
this NOFA.
    (3) If you demonstrate site control through an option to purchase, 
the option must extend for at least 180 days after the application 
submission date.
    (4) If you propose to develop off-site housing and you do not 
provide acceptable evidence of site control, your ENTIRE application 
will not be considered for funding.
    (5) See Section IV.B.4.e. of this NOFA for documentation 
requirements.
    m. Zoning Approval. (1) If you are proposing to use off-site 
parcels of land for housing development or other uses that, until this 
point in time, have been zoned for a purpose different than the one 
proposed in your revitalization plan, your application must include the 
documentation described in Section IV.B.4.f. of this NOFA:
    (2) If zoning approval/certification is not properly included in 
your application, the application will not be considered for funding.
    n. Compliance with Fair Housing and Civil Rights Laws. (1) All 
applicants must comply with all applicable fair housing and civil 
rights requirements in 24 CFR 5.105(a), as applicable.
    (2) If you, the applicant:
    (a) Have been charged with an on-going systemic violation of the 
Fair Housing Act; or
    (b) Are a defendant in a Fair Housing Act lawsuit filed by the 
Department of Justice alleging an on-going pattern or practice of 
discrimination; or
    (c) Have received a letter of findings identifying ongoing systemic 
noncompliance under Title VI of the Civil Rights Act of 1964, Section 
504 of the Rehabilitation Act of 1973, or Section 109 of the Housing 
and Community Development Act of 1974; and
    (d) The charge, lawsuit or letter of findings referenced in subpart 
(a), (b) or (c) above has not been resolved to HUD's satisfaction 
before the application deadline, then the application will not be 
considered for funding. See Section III.C.2.c. of the General Section.
    o. Requirements and Procedures Applicable to All Programs:
    (1) General Section References. The following subsections of 
Section III.C. of the General Section are hereby incorporated by 
reference:
    (a) Dun and Bradstreet Data Universal Numbering System (DUNS) 
Number Requirement;
    (b) Compliance with Fair Housing and Civil Rights Laws;
    (c) Conducting Business In Accordance with Core Values and Ethical 
Standards;
    (d) Delinquent Federal Debts;
    (e) Name Check Review;
    (f) False Statements;
    (g) Prohibition Against Lobbying Activities;
    (h) Debarment and Suspension.
    (i) Statutory and Regulatory Requirements; and
    (j) Ineligible Applicants.
    (2) Salary Limitation for Consultants. FY-2005 funds may not be 
used to pay or to provide reimbursement for payment of the salary of a 
consultant whether retained by the federal government or the grantee at 
more than the daily equivalent of the rate paid for level IV of the 
Executive Schedule, unless specifically authorized by law.
2. Thresholds--Applicant Certifications
    a. Standard Form 424. By signing and submitting the Application for 
Federal Assistance, Standard Form 424, you are certifying to all of the 
thresholds listed in this section. A false statement in an application 
is grounds for denial or termination of an award and grounds for 
possible punishment as provided in 18 U.S.C. 1001, 1010, and 1012, and 
32 U.S.C. 3729 and 3802. See Section IV.B. of this NOFA for any 
documentation requirements related to these certifications.

[[Page 16559]]

    b. Non-Curable Certifications. If you have not met a threshold on 
or before the application submission date, or have not included in the 
application the complete, correct, required documentation that 
demonstrates the threshold has been met, the application will not be 
considered for funding. For these thresholds, insufficiency cannot be 
cured after the application submission date. See Section IV.B. of this 
NOFA for documentation requirements.
    (1) Selection of Developer. You must certify that:
    (a) You have initiated an RFQ by the application submission date 
for the competitive procurement of a developer for your first phase of 
construction, in accordance with 24 CFR 85.36 and 24 CFR 941.602(d) (as 
applicable). If you change developers after you are selected for 
funding, HUD reserves the right to rescind the grant; or
    (b) You will act as your own developer for the proposed project. If 
you change your plan and procure an outside developer after you are 
selected for funding, HUD reserves the right to rescind the grant.
    (2) See Section IV.B.5.g. of this NOFA for documentation 
requirements.
    c. Curable Certifications. Omission of, or error in the signature 
of, any of the mandatory documentation (as listed in Section IV.B. of 
this NOFA) related to the items listed below is considered a Technical 
Deficiency and must be cured (corrected) within the cure period stated 
in Section V.B. of the General Section. Applications that remain 
deficient after the cure period ends will not be considered for 
funding.
    (1) Operation and Management Principles and Policies Certification. 
You must certify that you will implement the Operation and Management 
Principles and Policies stated in Section III.C.4. of this NOFA. See 
Section IV.B.5.c. of this NOFA for documentation requirements.
    (2) Relocation Plan Certification.
    (a) You must certify that the HOPE VI Relocation Plan has been 
completed and:
    (i) That it conforms to the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA) requirements; and
    (ii) That it implements HOPE VI relocation goals, as described in 
Section V.A.6. of this NOFA.
    (b) If relocation was completed (i.e., the targeted public housing 
site is vacant) as of the application submission date, rather than 
certifying that the HOPE VI Relocation Plan has been completed, you 
must certify that the relocation was completed in accordance with URA 
requirements.
    (c) See Section IV.B.5.d. of this NOFA for documentation 
requirements.
    (3) Resident Involvement in the Revitalization Program 
Certification. You must certify that you have involved affected public 
housing residents at the beginning and during the planning process for 
the revitalization program, prior to submission of your application. If 
you have not included affected residents in the planning process, your 
application will not be considered for funding. See Section III.C.4. of 
this NOFA for minimum training and meeting requirements and Section 
IV.B.5.e. of this NOFA for documentation requirements.
    (4) Standard Certifications. The last part of your application will 
be comprised of standard certifications common to many HUD programs. 
Required forms must be included in the HOPE VI application and will be 
available over the Internet at https://www.hud.gov/offices/adm/grants/
fundsavail.cfm. See Section IV.B.5.i. of this NOFA for documentation 
requirements.
3. Thresholds--Third-Party Certifications
    The following third-party certifications must be included in your 
application.
    a. Non-Curable. If you have not included in the application, on or 
before the application submission date, the complete, correct, required 
documentation that demonstrates the threshold has been met, the 
application will not be rated or ranked and will be either ineligible 
for funding or have its funding limited, based upon the threshold. For 
these thresholds, insufficiency regarding these thresholds cannot be 
cured after the application submission date. See Section IV.B. of this 
NOFA for any documentation requirements related to these 
certifications.
    (1) Cost Control Standards.
    Your cost estimates must be certified to meet the cost control 
standards stated in Section IV.E. The certification must be made by an 
independent cost estimator, architect, engineer, contractor, or other 
qualified third party professional. If your costs are not certified, 
your application will not be considered for funding. See Section 
IV.B.5.h. of this NOFA for documentation requirements.
    (2) Severely Distressed Certification. Your application must 
include a certification that the targeted project is severely 
distressed. See Section IV.B.5.g. for documentation requirements.
    b. Curable. Omission of any of the mandatory documentation listed 
in this section is considered a technical deficiency and must be cured 
(corrected) within the cure period stated in Section V.B. of the 
General Section. Applications that remain deficient after the cure 
period will not be considered for funding. See Section IV.B. of this 
NOFA for any documentation requirements related to these 
certifications.
    (1) Market Assessment Certification for Market-Rate Housing. If you 
include market-rate housing, economic development, or retail structures 
in your Revitalization Plan, you must provide a certification by an 
independent, third party, credentialed market research firm, or 
professional that describes its assessment of the demand and associated 
pricing structure for the proposed residential units, economic 
development or retail structures, based on the market and economic 
conditions of the project area. See Section IV.B.5.a. of this NOFA for 
documentation requirements.
    (2) HOPE VI Revitalization Applicant Certifications. You must 
include in your application a certification from the Chairman of your 
Board of Commissioners to the requirements listed in the HOPE VI 
Revitalization Applicant Certifications. See Section IV.B.5.b. of this 
NOFA for documentation requirements.
4. Program Requirements
    a. Demolition
    (1) You may not carry out nor permit others to carry out the 
demolition of the targeted project or any portion of the project until 
HUD approves, in writing, one of the following ((a)-(c)), and until HUD 
has also I) approved a Request for Release of Funds submitted in 
accordance with 24 CFR part 58, or, II) if HUD performs an 
environmental review under 24 CFR part 50, approved the property for 
demolition, in writing, following its environmental review.
    (a) Information regarding demolition in your HOPE VI Revitalization 
Application, along with Supplemental Submissions requested by HUD after 
the award of the grant. Section 24(g) of the 1937 Act provides that 
severely distressed public housing that is demolished pursuant to a 
Revitalization Plan is not required to be approved through a demolition 
application under Section 18 of the 1937 Act or regulations at 24 CFR 
part 970. If you do not receive a HOPE VI Revitalization grant, the 
information in your

[[Page 16560]]

application will not be used to process a request for demolition;
    (b) A demolition application under Section 18 of the 1937 Act. 
While a Section 18 approval is not required for HOPE VI related 
demolition, you will not have to wait for demolition approval through 
your supplemental submissions, as described in Section (a) above; or
    (c) A Section 202 Mandatory Conversion Plan, in compliance with 
regulations at 24 CFR part 971 and other applicable HUD requirements, 
if the project is subject to Mandatory Conversion (Section 202 of the 
Omnibus Consolidated Rescissions and Appropriations Act of 1996 Pub. L. 
104-134, approved on April 26, 1996). A Mandatory Conversion Plan 
concerns the removal of a public housing project from a PHA's 
inventory.
    b. Development
    (1) For any standard (non-mixed finance) public housing development 
activity (whether on-site reconstruction or off-site development), you 
must obtain HUD approval of a standard development proposal submitted 
under 24 CFR part 941 (or successor part).
    (2) For mixed-finance housing development, you must obtain HUD 
approval of a mixed finance proposal, submitted under 24 CFR part 941, 
subpart F (or successor part and subpart).
    (3) For new construction of community facilities primarily intended 
to facilitate the delivery of community and supportive services for 
residents of the project and residents of off-site replacement housing, 
you must comply with 24 CFR part 941 (or successor part). Information 
required for this activity must be included in either a standard or 
mixed finance development proposal, as applicable.
    c. Homeownership
    (1) For homeownership replacement units developed under a 
Revitalization Plan, you must obtain HUD approval of a homeownership 
proposal. Your homeownership proposal must conform to either:
    (a) Section 24(d)(1)(J) of the 1937 Act; or
    (b) Section 32 of the 1937 Act (see 24 CFR part 906). Additional 
information on this option may be found at www.hud.gov/offices/pih/
centers/sac/homeownership.
    (2) The homeownership proposal must be consistent with the Section 
8 Area Median Income (AMI) limitations (80 percent of AMI) and any 
other applicable provisions under the 1937 Act. (HUD publishes AMI 
tables for each family size in each locality annually. The income limit 
tables can be found at https://www.huduser.org/datasets/il/il05/
index.html.)
    d. Acquisition
    (1) Acquisition Proposal. Before you undertake any acquisition 
activities with HOPE VI or other public housing funds, you must obtain 
HUD approval of an acquisition proposal that meets the requirements of 
24 CFR 941.303.
    (2) Rental Units. For acquisition of rental units in existing or 
new apartment buildings, single family subdivisions, etc., with or 
without rehabilitation, for use as public housing replacement units, 
you must obtain HUD approval of a Development Proposal in accordance 
with 24 CFR 941.304 (conventional development) or 24 CFR 941.606 (mixed 
finance development).
    (3) Land for Off-Site Replacement Units. For acquisition of land 
for public housing or homeownership development, you must comply with 
24 CFR part 941 or successor part.
    (4) Land for Economic Development-Related Activities.
    (a) Acquisition of land for this purpose is eligible only if the 
economic development-related activities specifically promote the 
economic self-sufficiency of residents.
    (b) Limited infrastructure and site improvements associated with 
developing retail, commercial, or office facilities, such as rough 
grading and bringing utilities to (but not on) the site are eligible 
activities with prior HUD approval.
    e. Leverage
    (1) You must actively enlist other stakeholders who are vested in 
and can provide significant financial assistance to your revitalization 
effort, both for physical development and CSS.
    (2) Types of Leverage Resources. HUD seeks to fund mixed-finance 
developments that use HOPE VI funds to leverage the maximum amount of 
other funds, particularly from private sources, that will result in 
revitalized public housing, other types of assisted and market-rate 
housing, and private retail and economic development. There are four 
types of Leverage: Development, CSS, Anticipatory, and Collateral. 
Development and CSS leverage are program requirements and will be 
described here. Anticipatory and Collateral leverage are included only 
in the Leverage rating factor and are described in Section V.A.3. of 
this NOFA.
    (3) Development Leverage.
    (a) Development resources include:
    (i) Private mortgage-secured loans and other debt.
    (ii) Insured loans.
    (iii) Donations and contributions.
    (iv) Housing trust funds.
    (v) Net sales proceeds from a homeownership project. Down payments 
from homebuyers will not be counted. Down payment assistance may be 
counted as a physical development resource if it is provided by a third 
party entity not related to the homebuyer.
    (vi) Funds committed to build private sector housing in direct 
connection with the HOPE VI Revitalization plan.
    (vii) Tax Increment Funding (TIF).
    (viii) Tax Exempt Bonds. Your application must include a 
description of the use and term.
    (ix) Other Public Housing Funds. Other public housing sources 
include HOPE VI Revitalization funds from other grants, HOPE VI 
Demolition funds, Capital Fund program funds, and proposals to use 
operating subsidy for debt service. These HUD public housing funds will 
not be counted for points under CSS, Development and Collateral 
leverage in this NOFA. However, they can be used as part of your 
revitalization plan. Other public housing sources, except for HOPE VI 
Revitalization funds, will be counted toward your leverage rating for 
anticipatory leverage and may be used toward your match requirement.
    (x) Other Federal Funds. Other Federal sources may include non-
public housing funds provided by HUD.
    (xi) Sale of Land. The value of land may be included as a 
development resource only if this value is a sales proceed. Absent a 
sales transaction, the value of land may not be counted.
    (xii) Donations of Land. Donations of land may be counted as a 
development resource, only if the donating entity owns the land to be 
donated. Donating entities may include a city, county/parish, church, 
community organization, etc. The application must include documentation 
of this ownership, signed by the appropriate authorizing official.
    (xiii) Low-Income Housing Tax Credits (LIHTC). Low-Income Tax 
Credits are authorized by Section 42 of the IRS Code which allows 
investors to receive a credit against federal tax owed in return for 
providing funds to developers to help build or renovate housing that 
will be rented only to lower-income households for a minimum period of 
15 years. There are two types of credits, both of which are available 
over a 10-year period: a nine percent credit on construction/rehab 
costs, and a four percent credit on acquisition costs and all 
development costs financed partially with below-market Federal loans 
(e.g., tax exempt bonds). Tax credits are generally reserved annually 
through State

[[Page 16561]]

Housing Finance Agencies, a directory of which can be found at https://
www.ncsha.org/ncsha/public/statehfadirectory/index.htm.
    (b) Sources of Development Leverage. Sources of Development 
Leverage may include:
    (i) Public, private, and nonprofit entities, including LIHTC 
purchasers;
    (ii) State and local housing finance agencies;
    (iii) Local governments;
    (iv) The city's housing and redevelopment agency or other 
comparable agency. HUD will consider this to be a separate entity with 
which you are partnering if your PHA is also a redevelopment agency or 
otherwise has citywide responsibilities.
    (A) You are strongly urged to seek a pledge of Community 
Development Block Grant (CDBG) funds for improvements to public 
infrastructure such as streets, water mains, etc. related to the 
revitalization effort. CDBG funds are awarded by HUD by formula to 
units of general local government and to states, which may then award a 
grant or loan to a PHA, a partnership, a nonprofit organization, or 
other entity for revitalization activities, including loans to a 
project's for-profit partnership. More information about the CDBG 
Program can be found at https://www.hud.gov/offices/cpd/index.cfm.
    (B) The city, county/parish, or state may provide HOME funds to be 
used in conjunction with HOPE VI funds. The Home Investment Partnership 
program provides housing funds that are distributed from HUD to units 
of general local governments and states. Funds may be used for new 
construction, rehabilitation, acquisition of standard housing, 
assistance to homebuyers, and tenant-based rental assistance. Current 
legislation allows HOME funds to be used in conjunction with HOPE VI 
funds, but they may not be used in conjunction with public housing 
capital funds under Section 9(d) of the 1937 Act. Information about the 
HOME program can be found at: https://www.hud.gov/offices/cpd/
affordablehousing/programs/home/index.cfm.
    (v) Foundations;
    (vi) Government Sponsored Enterprises such as the Federal Home Loan 
Bank, Fannie Mae, and Freddie Mac;
    (vii) HUD and other Federal agencies;
    (viii) Financial institutions, banks, or insurers; and
    (ix) Other private funders.
    (4) Community and Supportive Services Leverage.
    (a) HUD seeks to fund mixed-finance developments that use HOPE VI 
funds to leverage the maximum amount of other resources to support CSS 
activities in order to ensure the successful transformation of the 
lives of residents and the sustainability of the revitalized public 
housing development. Leveraging HOPE VI CSS funds with other funds and 
services is critical to the sustainability of CSS activities so that 
they will continue after the HOPE VI funds have been expended. 
Commitments of funding or in-kind services related to the provision of 
CSS activities may be counted as CSS resources and toward the 
calculation of CSS leverage. See Section V.A.3. of this NOFA.
    (b) Types of CSS Leverage.
    Types of resources include, but are not limited to:
    (i) Materials;
    (ii) A building;
    (iii) A lease on a building;
    (iv) Other infrastructure;
    (v) Time and services contributed by volunteers;
    (vi) Staff salaries and benefits;
    (vii) Supplies; and
    (viii) Other types of CSS resources as described in Section 
III.C.4.l. of this NOFA.
    (c) TANF cash benefits themselves will not be counted as leverage.
    (d) ONLY funds and in-kind services that will be newly generated 
for HOPE VI activities in this NOFA are considered CSS leverage.
    (5) Sources of CSS Leverage. In order to achieve quantifiable self-
sufficiency results, you must form partnerships with organizations that 
are skilled in the delivery of services to residents of public housing 
and that can provide commitments of resources to support those 
services. You must actively enlist as partners other stakeholders who 
are vested in and can provide commitments of funds and in-kind services 
for the CSS portion of your revitalization effort. See Section 
III.C.4.m. for a list of the kinds of organizations, agencies, and 
other providers that may be used as sources of CSS leverage.
    f. Access to Services
    For both on-site and any off-site units, your overall 
Revitalization Plan must result in increased access to municipal 
services, jobs, mentoring opportunities, transportation, and 
educational facilities; i.e., the physical plan and self-sufficiency 
strategy must be well-integrated and strong linkages must be 
established with the appropriate federal, state, and local agencies, 
nonprofit organizations, and the private sector to achieve such access.
    g. Building Standards
    (1) Building Codes. All activities that include construction, 
rehabilitation, lead-based paint removal, and related activities must 
meet or exceed local building codes. You are encouraged to read the 
policy statement and final report of the HUD Review of Model Building 
Codes that identifies the variances between the design and construction 
requirements of the Fair Housing Act and several model building codes. 
That report can be found on the HUD Web site at https://www.hud.gov/fhe/
modelcodes.
    (2) Deconstruction. HUD encourages you to design programs that 
incorporate sustainable construction and demolition practices, such as 
the dismantling or ``deconstruction'' of public housing units, 
recycling of demolition debris, and reusing of salvage materials in new 
construction. ``A Guide to Deconstruction'' can be found at 
www.hud.gov/deconstr.pdf.
    (3) Partnership for Advancing Technology in Housing (PATH). HUD 
encourages you to use PATH technologies in the construction and 
delivery of replacement housing. PATH is a voluntary initiative that 
seeks to accelerate the creation and widespread use of advanced 
technologies to radically improve the quality, durability, 
environmental performance, energy efficiency, and affordability of our 
Nation's housing.
    (a) PATH's goal is to achieve dramatic improvement in the quality 
of American housing by the year 2010. PATH encourages leaders from the 
home building, product manufacturing, insurance and financial 
industries, and representatives from federal agencies dealing with 
housing issues to work together to spur housing design and construction 
innovations. PATH will provide technical support in design and cost 
analysis of advanced technologies to be incorporated in project 
construction.
    (b) Applicants are encouraged to employ PATH technologies to exceed 
prevailing national building practices by:
    (i) Reducing costs;
    (ii) Improving durability;
    (iii) Increasing energy efficiency;
    (iv) Improving disaster resistance; and
    (v) Reducing environmental impact.
    (c) More information, the list of technologies, the latest PATH 
Newsletter, results from field demonstrations, and PATH projects can be 
found at www.pathnet.org.
    (4) Energy Efficiency.
    (a) New construction must comply with the latest HUD-adopted Model 
Energy Code issued by the Council of American Building Officials.
    (b) HUD encourages you to set higher standards for energy and water

[[Page 16562]]

efficiency in HOPE VI new construction, which can achieve utility 
savings of 30 to 50 percent with minimal extra cost.
    (c) You are encouraged to negotiate with your local utility company 
to obtain a lower rate. Utility rates and tax laws vary widely 
throughout the country. In some areas, PHAs are exempt or partially 
exempt from utility rate taxes. Some PHAs have paid unnecessarily high 
utility rates because they were billed at an incorrect rate 
classification.
    (d) Local utility companies may be able to provide grant funds to 
assist in energy efficiency activities. States may also have programs 
that will assist in energy efficient building techniques.
    (e) You must use new technologies that will conserve energy and 
decrease operating costs where cost effective. Examples of such 
technologies include:
    (i) Geothermal heating and cooling;
    (ii) Placement of buildings and size of eaves that take advantage 
of the directions of the sun throughout the year;
    (iii) Photovoltaics (technologies that convert light into 
electrical power);
    (iv) Extra insulation;
    (v) Smart windows; and
    (vi) Energy Star appliances.
    (5) Universal Design. HUD encourages you to incorporate the 
principles of universal design in the construction or rehabilitation of 
housing, retail establishments, and community facilities, or when 
communicating with community residents at public meetings or events. 
Universal design is the design of products and environments to be 
usable by all people, to the greatest extent possible, without the need 
for adaptation or specialized design. The intent of universal design is 
to simplify life for everyone by making products, communications, and 
the built environment more usable by as many people as possible at 
little or no extra cost. Universal design benefits people of all ages 
and abilities. Examples include designing wider doorways, installing 
levers instead of doorknobs, and putting bathtub/shower grab bars in 
all units. Computers and telephones can also be set up in ways that 
enable as many residents as possible to use them. The Department has a 
publication that contains a number of ideas about how the principles of 
Universal Design can benefit persons with disabilities. To order a copy 
of Strategies for Providing Accessibility and Visitability for HOPE VI 
and Mixed Finance Homeownership, go to the publications and resource 
page of the HOPE VI Web site at https://www.huduser.org/publications/
pubasst/strategies.html.
    (6) Energy Star. HUD has adopted a wide-ranging energy action plan 
for improving energy efficiency in all program areas. As a first step 
in implementing the energy plan, HUD, the Environmental Protection 
Agency (EPA), and the Department of Energy (DoE) have signed a joint 
partnership to promote energy efficiency in HUD's affordable housing 
efforts and programs. The purpose of the Energy Star partnership is to 
promote energy efficiency of the affordable housing stock, but also to 
help protect the environment. Applicants constructing, rehabilitating, 
or maintaining housing or community facilities are encouraged to 
promote energy efficiency in design and operations. They are urged 
especially to purchase and use Energy Star-labeled products. Applicants 
providing housing assistance or counseling services are encouraged to 
promote Energy Star building by homebuyers and renters. Program 
activities can include developing Energy Star promotional and 
information materials, outreach to low- and moderate-income renters and 
buyers on the benefits and savings when using Energy Star products and 
appliances, and promoting the designation of community buildings and 
homes as Energy Star compliant. For further information about Energy 
Star, see https://www.energystar.gov or call 888-STAR-YES (888-782-
7937), or for the hearing-impaired, call 888-588-9920 TTY. See also the 
energy efficiency requirements in Section III.C.4.g.(4) above. See 
Section V.9.f. of this NOFA for the Energy Star Rating Factor.
    (7) Lead-Based Paint. You must comply with lead-based paint 
evaluation and reduction requirements as provided for under the Lead-
Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.). You 
also must comply with regulations at 24 CFR part 35, 24 CFR 965.701, 
and 24 CFR 968.110(k), as they may be amended or revised from time to 
time. Unless otherwise provided, you will be responsible for lead-based 
paint evaluation and reduction activities. The National Lead 
Information Hotline is 800-424-5323.
    h. Labor Standards
    The following standards must be implemented as appropriate in 
regard to HOPE VI grants.
    (1) Labor Standards.
    (a) Davis-Bacon wage rates apply to development of any public 
housing rental units or homeownership units developed with HOPE VI 
grant funds and to demolition followed by construction on the site. 
Davis-Bacon rates are ``prevailing'' minimum wage rates set by the 
Secretary of Labor that all laborers and mechanics employed in the 
development, including rehabilitation, of a public housing project must 
be paid, as set forth in a wage determination that the PHA must obtain 
prior to bidding on each construction contract. The wage determination 
and provisions requiring payment of these wage rates must be included 
in the construction contract;
    (b) HUD-determined wage rates apply to:
    (i) Operation (including nonroutine maintenance) of revitalized 
ho