Notice of Funding Availability (NOFA) for the Enhancement of Public Housing HOPE VI Communities Through Mentoring Demonstration Program Grants, 23676-23687 [05-8851]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 70, Number 85 (Wednesday, May 4, 2005)]
[Notices]
[Pages 23676-23687]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-8851]



[[Page 23675]]

-----------------------------------------------------------------------

Part III





Department of Housing and Urban Development





-----------------------------------------------------------------------



Notice of Funding Availability (NOFA) for the Enhancement of Public 
Housing HOPE VI Communities Through Mentoring Demonstration Program 
Grants; Notices

Federal Register / Vol. 70, No. 85 / Wednesday, May 4, 2005 / 
Notices

[[Page 23676]]


-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4979-N-01]


Notice of Funding Availability (NOFA) for the Enhancement of 
Public Housing HOPE VI Communities Through Mentoring Demonstration 
Program Grants

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

ACTION: Notice of funding availability.

-----------------------------------------------------------------------

Overview Information

    A. Federal Agency Name. Department of Housing and Urban 
Development, Office of Public and Indian Housing.
    B. Funding Opportunity Title. Notice of Funding Availability (NOFA) 
for the Enhancement of Public Housing HOPE VI communities through 
Mentoring Demonstration Program grants.
    C. Announcement Type. Initial announcement.
    D. Funding Opportunity Number. The Federal Register number for this 
NOFA is: FR-4979-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, for the ``Enhancement of Public Housing 
HOPE VI communities through Mentoring demonstration program.''
    F. Dates.
    1. Application Submission Date: The application submission date 
shall be July 7, 2005. See the General Section of the SuperNOFA (70 FR 
13576) for application submission, and timely receipt requirements.
    2. Estimated Grant Award Date: The estimated award date will be 
approximately September 1, 2005.
    G. Additional Overview Content Information.
    1. This NOFA announces the availability of $525,000 for HOPE VI 
grantees to create Mentoring demonstration programs.
    2. The maximum amount of each grant award is $175,000. It is 
anticipated that approximately 4 grant awards will be made.
    3. All public housing authorities (PHAs) with HOPE VI 
Revitalization Grants are eligible to apply. PHAs that do not have a 
HOPE VI Revitalization grant or manage only a HCV program, tribal PHAs 
and tribally-designated housing entities are not eligible. PHAs that 
administer Family Self Sufficiency Programs are encouraged to apply.
    4. The HOPE VI Mentoring demonstration program is a demonstration 
program that will assist HUD in determining if a Mentoring assistance 
model improves the results of self-sufficiency type programs (e.g., 
Family Self Sufficiency and HOPE VI Community Supportive Services) for 
participating residents.
    5. There must be two separate, equally sized groups of resident 
families, a group that receives Mentoring services and a control group 
that does not.
    6. Through these mentoring demonstration programs, PHAs with HOPE 
VI Revitalization grants will partner with grassroots, faith-based and 
other community-based organizations (FB&CBOs) that provide services to 
transitioning families (i.e., families transitioning from traditional 
Public Housing to re-developed Mixed-Income communities). Through these 
partnerships, PHAs and FB&CBOs will match participating residents with 
mentors from the FB&CBO who will assist the residents to achieve their 
goals/benchmarks. The FB&CBOs will receive grant funds on a fee-for-
service basis according to the number of benchmarks completed by 
participating HOPE VI residents.
    7. A match of five percent of the total grant request is required.
    8. Each applicant may submit only one application.
    9. Application materials may be obtained over the Internet from the 
Grants.gov web site. Technical corrections and frequently asked 
questions will also be posted on this web site.
    10. 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) (70 FR 13576, published March 21, 2005) as 
well as those issued after publication of the SuperNOFA.

Full Text of Announcement

I. Funding Opportunity Description

A. Program Description

    1. HOPE VI grantees are encouraged to work cooperatively with 
grassroots, faith-based and other community-based organizations as part 
of their Community and Supportive Services programs. FB&CBOs are vital 
entities in local neighborhoods and too often their strengths are not 
tapped as HOPE VI grantees work to help their residents achieve 
economic self-sufficiency. This NOFA will provide additional funding to 
HOPE VI grantees to study the development of innovative supportive 
service delivery through grassroots, faith-based and other community-
based organizations.
    2. The HOPE VI Mentoring demonstration program is a demonstration 
program that will assist HUD in determining if a mentoring assistance 
model improves the results of self-sufficiency type programs (e.g. HOPE 
VI Community Supportive Services (CSS) and Family Self Sufficiency 
(FSS)) for participating residents. Specifically, the grant awards will 
be awarded to Public Housing Authorities (PHAs) with current HOPE VI 
Revitalization grants in order to determine if providing mentoring 
services to residents already participating in self-sufficiency 
programs (e.g., CSS) increases their likelihood of achieving self-
sufficiency, as compared to residents participating in self-sufficiency 
programs who do not receive mentoring services. The likelihood of 
achieving self-sufficiency will be evaluated primarily by certain 
outcome measures: Net change in earnings and a net change in the 
participant's credit rating, as well as residents' accomplishment of 
their other goals/benchmarks.
    3. There must be two separate, equally-sized groups of resident 
families, a group that receives Mentoring services and a control group 
that does not. All participants in both groups will be chosen by random 
sampling of the current CSS-eligible participants.
    4. Through these demonstration programs, PHAs with HOPE VI 
Revitalization grants will partner with grassroots, faith-based and 
other community-based organizations (FB&CBOs) that provide services to 
transitioning families (i.e., families transitioning from traditional 
Public Housing to re-developed Mixed-Income communities). Through these 
partnerships, PHAs and FB&CBOs will match participating residents with 
mentors from the FB&CBO who will assist the residents to achieve 
various self-sufficiency benchmarks (e.g., increasing their income, 
improving their credit rating, obtaining a job, achieving a GED, 
purchasing a home). The FB&CBOs will receive grant funds on a fee-for-
service basis according to the number of benchmarks completed by 
participating HOPE VI residents. As the public housing resident family 
achieves each individual goal, payment for service will go to the 
sponsoring FB&CBO.
    5. Each HOPE VI grantee shall partner with at least two FB&CBOs.
    6. Examples of HOPE VI grantee/FB&CBO partnership. A typical family 
might have five benchmarks, and as the family reaches each benchmark, 
the FB&CBO will be paid for that

[[Page 23677]]

achievement. Payment would not go to the individual mentor. A PHA might 
randomly select 20 public housing families participating in its CSS 
program to take part in the demonstration program and to receive 
mentoring services (as opposed to the control group which would not 
receive mentoring services), and the partnering FB&CBO would select 20 
people to become mentors. For every goal met by the family from the 
group receiving mentoring services, the FB&CBO would receive one unit 
of funding from the PHA. Assuming that each family would have to meet 
five established goals, the FB&CBO would be paid for 100 units of 
service. (20 families x 5 benchmarks = 100 units of service.)
    7. The programs will be evaluated with the University or other 
research facility presently partnering with the PHA to evaluate the 
HOPE VI Revitalization program. The evaluation will entail outcome 
measures of a net change in earnings and a net change in the 
participant's credit rating, based on the resident's Fair Isaac 
Corporation (FICO) score from Equifax, Experian, and TransUnion.

B. Authority

    The program authority for the HOPE VI Program is section 24 of the 
1937 Act (42 U.S.C. 1437v). The funding authority for the Mentoring 
demonstration program comes from the several Appropriations Acts, from 
1997 to 2001, (Public Laws 104-204, 105-65, 105-276, 106-74, and 106-
377), under, ``Revitalization of Severely Distressed Public Housing'' 
(HOPE VI).

C. Definition of Terms

    1. Community and Supportive Services. 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 (e.g., employment 
training, credit counseling, educational activities, homeownership 
counseling, transportation assistance, etc.). For purposes of this 
grant, the relevant CSS activities are those in the applicant's CSS 
Plan, as approved by HUD.
    2. Match. Means at least five percent (5%) of the requested grant 
amount is required to be donated from sources other than federal 
funding for Mentoring demonstration program uses. Community Development 
Block Grant (CDBG) funds are considered local funds, not federal funds. 
This match may be measured by in-kind services. If volunteer time is 
being committed it should be calculated using the number of hours to be 
committed multiplied by the normal professional rate for the local area 
or, if these are not applicable, the national minimum wage rate. The 
commitment must be viewed as in-kind services to the program.
    3. Mentoring Program Coordinator is a PHA staff person who is 
responsible for coordinating the activities proposed for this 
application to ensure that their implementation will achieve the 
overall grant goals and objectives.
    4. Nonprofit organization. A nonprofit organization is an 
organization that is exempt from federal taxation. A nonprofit can be 
organized for the following purposes: Charitable, religious, 
educational, scientific, literary, and other purposes. In order to 
qualify to become a nonprofit, an organization must be a corporation, 
community chest, fund, or foundation. An individual or partnership will 
not qualify. To obtain nonprofit status, qualified organizations must 
file an application with the Internal Revenue Service (IRS) and receive 
designation as such by the IRS. For more information, go to https://
www.irs.gov. Proposed sub-grantees that are in the process of applying 
for nonprofit status, but have not yet received nonprofit designation 
from the IRS on the application submission date, will not be considered 
nonprofit organizations and will not be considered for mentoring 
demonstration program grants.
    5. Mentor is the designee from the faith-based or community 
organization who will assist the public housing family (for the 
duration of the grant) to successful completion of each benchmark.
    6. Person with disabilities means a person who:
    a. Has a condition defined as a disability in section 223 of the 
Social Security Act;
    b. Has a developmental disability as defined in section 102 of the 
Developmental Disabilities Assistance Bill of Rights Act; or
    c. Is determined to have a physical, mental, or emotional 
impairment which:
    (1) Is expected to be of long-continued and indefinite duration;
    (2) Substantially impedes his or her ability to live independently; 
and
    (3) Is of such a nature that such ability could be improved by more 
suitable housing conditions.
    d. The term ``person with disabilities'' does not exclude persons 
who have acquired immunodeficiency syndrome AIDS) or any conditions 
arising from the etiologic agent for AIDS. In addition, no individual 
shall be considered a person with disabilities, for purposes of 
eligibility for low-income housing, solely because of any drug or 
alcohol dependence.
    e. The definition provided above for persons with disabilities is 
the proper definition for determining program qualifications. However, 
the definition of a person with disabilities contained in section 504 
of the Rehabilitation Act of 1973 and its implementing regulations must 
be used for purposes of reasonable accommodations.

II. Award Information

    A. A total of $525,000 is available for funding. HUD anticipates 
awarding up to four (4) grants as a part of this initial announcement. 
Each applicant may request up to $175,000. If funds remain after all 
grants are awarded, HUD may divide these funds equally among the grant 
recipients. This may result in grant amounts larger than $175,000. HUD 
reserves the right to award less than the requested amount of funds.
    B. The grant term for funding shall be 18 months.

III. Eligibility Information

A. Eligible Applicants

    Eligible applicants include, and are limited to PHAs with current 
HOPE VI Revitalization grants that include Community and Supportive 
Services components and other economic development activities that 
promote the economic self-sufficiency of residents under the 
revitalization program, in accordance with Section 24(d)(1)(G) of the 
United States Housing Act of 1937 (42 U.S.C. 1437, et seq.). Eligible 
applicants must already have a relationship established with the 
FB&CBO(s) described in the application, or have identified and 
committed the FB&CBO(s) they will partner with as of the application 
submission date. PHAs that administer Family Self Sufficiency Programs 
are encouraged to apply. See Section IV. for documentation of 
commitment. If the applicant is not eligible, its application will not 
be considered for funding.

B. Cost Sharing or Matching

    Match. Applicants must have a match requirement equal to 5% of the 
award amount (see definition in Section I). This match may be measured 
by in-kind services. If volunteer time is being committed it should be 
calculated using the number of hours to be committed multiplied by the 
normal professional rate for the local area or, if these are not 
applicable, the national minimum wage rate should be used. The 
commitment must be viewed as in-kind services to the program. If the 
application does not include sufficient Match donations, the

[[Page 23678]]

application will not be considered for funding.

C. Other

    1. Threshold Criteria:
    If you have not met a threshold, 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.
    a. Evaluation by Higher Education or Research Facility. The 
applicant must have an active agreement as of the publication date of 
this NOFA with a University or other research facility to review and 
evaluate results achieved by the applicant's HOPE VI Revitalization 
grant(s). The applicant must use the same University or other research 
facility to review and evaluate a grant from this NOFA. See Section 
IV.B. of this NOFA for required documentation.
    b. Other Requirements and Procedures Applicable to All Program: The 
requirements and procedures listed in Section III.C. of the General 
Section apply to this NOFA.
    2. Program Requirements:
    a. Demonstration. The HOPE VI Mentoring demonstration program is a 
demonstration program that will assist HUD in determining if a 
Mentoring assistance model improves the results of self-sufficiency 
type programs (e.g. Family Self Sufficiency and HOPE VI Community 
Supportive Services) for participating residents. Applicants must 
propose a demonstration program that addresses this purpose.
    b. Random Sampling. There must be two separate, equally sized 
groups of resident families, a group that receives Mentoring services 
and a control group that does not. The two groups of residents must be 
chosen, at random, from an initial pool of residents that need similar 
levels of, and types of, FSS or CSS services. To the greatest extent 
possible, the initial pool of residents must be representative of the 
resident community as a whole, i.e., the initial pool should not 
include only residents that are more likely to succeed at self-
sufficiency efforts that the typical HOPE VI resident.
    c. Services to Residents. Mentoring demonstration programs under 
this NOFA should be developed to assist residents pursue their goals of 
increasing their income and improving their FICO credit rating through 
FSS and CSS programs, along with other goals such as: Participating in 
job training opportunities; gaining employment; achieving promotions in 
the workplace; completing GED, college, and other educational programs; 
participating in homeownership programs; graduating from HUD subsidized 
low-rent programs, or other indices of progress towards self-
sufficiency.
    d. Resident Assessment. Applicants must have a case management 
system in place that has assessed residents'' needs and interests so 
that program activities and benchmarks can be designed to address their 
needs.
    e. Goals and Outcomes. The Demonstration will compare five (5) 
specific indicators (i.e., goals and outcomes) for each of the above 
participant groups. Two of the indicators are mandatory for grants from 
this NOFA and three will be at the discretion of the applicant. 
Grantees will be required to gather this indicator information from the 
participants and report on them to the evaluator and ultimately to HUD. 
The two mandatory indicators are:
    (1) Change in adjusted family income, adjusted for family size and 
other factors as established by HUD, and including factors specifically 
related to the applicant's FSS program (provided such factors apply to 
all participants, in both the Mentored and Control resident groups.). 
The HUD form 50058, ``Family Report,'' will be used in evaluation of 
this indicator; and
    (2) Change in FICO credit rating. The FICO score to be tracked 
shall be the middle score of the scores assigned by each of the three 
major U.S. credit bureaus: Equifax, Trans Union and Experian.
    f. Payment of Mentor FB&CBOs. The FB&CBOs will receive grant funds 
on a fee-for-service basis according to the number of benchmarks 
completed by participating HOPE VI residents. As the public housing 
resident family achieves each individual goal, payment for service will 
go to the sponsoring FB&CBO. Payment may not go to the individual 
mentor. Mentoring services may be donated or paid for by leverage and 
grant funds. If the Mentoring services are donated, their value as in-
kind services should be included in this application as Leverage 
Resources. If the Mentoring services are to be paid for by leverage 
cash or grant funds, payment must be results-oriented, based upon the 
measured goals and outcomes in Section e. above. See ``Funding 
Restrictions,'' Section IV.E. of this NOFA.
    g. Minimum FB&CBO Partners Required. Each HOPE VI grantee must 
partner with at least two FB&CBOs.
    h. Non FB&CBO partners. Applicants should partner with local 
businesses, schools, libraries, banks, employment agencies, or other 
organizations, that will help mentors in providing support to those 
public housing families they will mentor. These organizations can 
provide additional expertise, volunteers, office supplies, training 
materials, software, equipment, and other resources.
    3. Eligible Activities:
    a. Mentoring demonstration programs and Services. Eligible 
activities for the Mentoring demonstration program are programs and 
services that are designed to meet residents' needs. Eligible 
activities may include, but are not limited to: assisting with job 
training and other employment-related activities in order to increase 
earnings; assisting with activities to improve credit scores; helping 
residents transition from welfare to work; counseling residents in 
attaining homeownership; assisting school-age children and youth with 
homework and other educational activities; providing guidance and 
preparatory programming to high school students (or other interested 
residents) for post-secondary education (college or trade schools); 
assisting adults with adult educational activities; offering training 
on such topics as parenting, consumer education, and family budgeting; 
assisting with transportation needs; and providing other services as 
deemed necessary by results obtained from case managers and resident 
surveys. See applicant's HUD-approved CSS plan for other eligible CSS 
activities. Innovative approaches that promote increased income, 
improved credit scores, sustained employment, homeownership or 
excellence in education will receive higher scores.
    b. Mentoring demonstration program funds may be used to pay for the 
salary of a Mentoring Demonstration Program Coordinator (the PHA staff 
person who coordinates the Mentoring Demonstration Program). See 
section IV.F. for funding restrictions.
    c. The PHA shall be responsible for ensuring that Mentoring 
demonstration program funds are used only for eligible activities. The 
PHA is responsible for ensuring that the mentoring demonstration 
program achieves the goals and objectives stated in this application 
and the subsequent grant agreement (if awarded), including the 
following activities:
    (1) Marketing the program to residents;
    (2) Meeting with case managers to assess participating residents' 
needs for supportive services (e.g. childcare, transportation), 
interests, skills and job readiness;
    (3) Designing and coordinating grant activities based on residents' 
needs;
    (4) Monitoring the progress of program participants and evaluating 
the overall success of the program. A

[[Page 23679]]

portion of the grant funds should be reserved to ensure that an 
evaluation by the partner University or other research facility can be 
completed for all participants who received assistance through this 
program. For more information on how to measure performance, please see 
rating factor four.
    (5) Determining payment levels and timing to FB&CBOs.
    4. General Section References: The following subsections of Section 
III of the General Section are hereby incorporated by reference:
    a. Additional Non-discrimination and Other Requirements;
    (1) Civil Rights Laws, including the Americans with Disabilities 
Act of 1990 (42 U.S.C. 1201 et seq.);
    (2) The Age Discrimination Act of 1974 (42 U.S.C. 6101 et seq.); 
and
    (3) Title IX of the Education Amendments Act of 1972 (20 U.S.C. 
1681 et seq.);
    b. Affirmatively Furthering Fair Housing;
    c. Ensuring the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Women-Owned Businesses;
    d. Executive Order 13166, Improving Access to Services for Persons 
With Limited English Proficiency (LEP);
    e. Executive Order 13279, ``Equal Protection of the Laws for Faith-
Based and Community Organizations;
    f. Procurement of Recovered Materials;
    g. Participation in HUD-Sponsored Program Evaluation;
    h. Salary Limitation for Consultants;
    i. OMB Circulars and Government-wide Regulations Applicable to 
Financial Assistance Programs;
    j. Drug-Free Workplace; and
    k. Safeguarding Resident/Client Files.

IV. Application and Submission Information

A. Addresses to Request Application Package

    This section describes how you may obtain application forms, 
additional information about the General Section, this NOFA, and 
technical assistance.
    1. Copies of this NOFA and related application forms may be 
downloaded from the Grants.gov Web site at https://www.grants.gov/ or if 
you have difficulty accessing the information you may receive customer 
support from Grants.gov by calling their help line at (800) 518-GRANTS 
or sending an e-mail to support@grants.gov. The operators will assist 
you in accessing the information. If you do not have Internet access 
and you need to obtain a copy of this NOFA, you can contact HUD's NOFA 
Information Center toll-free at (800) HUD-8929. Persons with hearing or 
speech impairments may also call toll-free at (800) HUD-2209.
    2. This announcement contains all an applicant will need to apply. 
Application kits will not be used with this NOFA. All the information 
you need to apply will be in the NOFA and available on https://
www.grants.gov.

B. Content and Form of Application Submission

    1. Number of Applications Permitted. Each applicant may submit only 
one application. Joint applications are not permitted. However, as 
described in this NOFA, it is expected that applicants will enter into 
partnerships with FB&CBOs in order to achieve the goals and objectives 
of the proposed mentoring demonstration program.
    2. Documentation, Minimum Proposal Requirements. The only narrative 
portion of the application is the applicant's response to the rating 
factors. Within that narrative, applicants should submit information 
that will clearly describe the proposed mentoring demonstration 
program, including a description of:
    a. How mentors and public housing residents will be recruited.
    b. How mentors will be trained.
    c. The methods of payment disbursements to FB&CBOs.
    d. How the activities of the mentors will be documented.
    e. Description of the voluntary and paid staffing.
    f. How eligible participants will be selected for the mentoring 
demonstration program, including the control group.
    g. How services will be made available to residents who have 
already been relocated, if relocated residents will be included in the 
mentoring and control groups.
    h. How benchmarks will be established and evaluated.
    3. Documentation of Match and Leverage Resources.
    a. Leveraged funds and in-kind services (``Donations'') must be 
firmly committed. ``Firmly committed'' means that the amount of Match 
or leveraged resources and their dedication to the mentoring 
demonstration program activities must be explicit, in writing and 
signed by a person authorized to make the commitment. Letters of 
commitment or Memoranda of Understanding (MOU) must be on organization 
letterhead, and signed by a person authorized to make the stated 
commitment whether it is for cash or in-kind services. The letters of 
commitment or MOU must indicate the annual level and/or amount of 
commitment in dollars, and indicate how the commitment will relate to 
the proposed mentoring demonstration programs program. See Section IV.F 
of the General Section regarding the procedures for submitting third 
party documents.
    b. Commitment documents must be submitted to HUD with the NOFA 
application. If a commitment document is not included in the 
application, the donation will not be counted toward the Match 
threshold or to the Leverage Resources factor. Missing commitment 
documents are not considered ``technical deficiencies'' and cannot be 
submitted after the submission date.
    4. Documentation of Monitoring and Evaluation Partner. The 
application must contain a commitments letter or MOU from the 
University or other research facility partner that is evaluating the 
applicant's HOPE VI Revitalization grant. The letter or MOU must state 
that the University or other research facility is committed to 
providing evaluation of the applicant's Mentoring Demonstration 
program. Letters of commitment or Memoranda of Understanding (MOU) must 
be on organization letterhead, and signed by a person authorized to 
make the stated commitment whether it is for cash or in-kind services. 
(Note that third party documents must be submitted using the process 
described in Section IV.F. of the General Section. Although facsimile 
of the letter or MOU will be accepted by HUD, HUD prefers that the 
letter or MOU be converted into .pdf format and be submitted to 
Grants.gov with the rest of the application.)
    5. Maximum Length of Application. The maximum length of the rating 
factor response portion of the application is 20 pages. A page is 
defined as 23 double-spaced lines with a maximum length of 6\1/2\ 
inches, in Times New Roman 12-point font. Forms or documents required 
by the NOFA, e.g., commitment letters and MOUs, are not included in 
this 20-page limit. Resumes and other staff information are included in 
this 20-page limit. Applicants should make every effort to submit only 
what is necessary in terms of supporting documentation.
    6. Application Format. The only narrative portion of the 
application is the applicant's response to the rating factors. To 
ensure proper credit for information applicable to each rating factor, 
the applicant should include application Section references, with 
searchable key words or phrases, to support the documentation when 
addressing the rating factors, and when

[[Page 23680]]

preparing related forms and supporting documentation. Applicants' 
rating factor responses should be as descriptive as possible, ensuring 
that every requested item is addressed. Applicants should make sure to 
include all requested information, according to the instructions of 
this NOFA. This will help ensure a fair and accurate review of your 
application. Although information from all parts of the application 
will be taken into account in rating the various factors, if supporting 
information cannot be found by the reviewer, it cannot be used to 
support a factor's rating.
    7. Separate Electronic Files. When submitting your application via 
Grants.gov, you should provide the following information as separate 
electronic files. See Section IV.F. for electronic file format. If a 
wavier to the electronic application submission requirement is granted 
by HUD (see Section IV.F. of this NOFA and the General Section for 
details), your application submission should be structured as follows 
using tabs to separate the documents submitted.
    a. TAB 1: Forms Required by HUD:
    (1) Acknowledgement of Application Receipt (HUD-2993) (only use if 
you are granted a waiver to the electronic application submission 
requirement).
    (2) HOPE VI Mentoring Demonstration Program Application Checklist.
    (3) Application for Federal Assistance (SF-424).
    (4) Grant Application Detailed Budget (HUD-424-CB).
    (5) Grant Application Detailed Budget Worksheet (HUD-424-CBW), only 
the following categories: 1., 2., 3.a., 5., 6., 7., 9., and 10.
    (6) Applicant/Recipient Disclosure/Update Report (HUD-2880).
    (7) Disclosure of Lobbying Activities (SF-LLL), if applicable.
    (8) Program Outcome Logic Model (HUD-96010).
    (9) America's Affordable Communities Initiative (HUD-27300), if 
applicable.
    (10) Client Comments and Suggestions (HUD 2994) (Optional).
    (11) Facsimile Transmittal (HUD-96011).
    Copies of these forms are included in Appendix B to the General 
Section.
    b. TAB 2: Executive Summary.
    c. TAB 3: Response for Rating Factor 1.
    d. TAB 4: Response for Rating Factor 2.
    e. TAB 5: Response for Rating Factor 3.
    f. TAB 6: Response for Rating Factor 4.
    g. TAB 7: Response for Rating Factor 5.
    h. TAB 8: Response to Rating Factor 6.
    i. TAB 9: Documentation of Match/Leverage Commitment:
    (1) Letters or MOUs from partners attesting to leveraged donations; 
See Section IV.B. of this NOFA for documentation requirements (note 
that third party documents must be submitted using the process 
described in Section IV.F. of the General Section).
    j. TAB 10: Documentation of evaluation partnership.
    8. Budget Forms: The Grant Application Detailed Budget (HUD-424-CB) 
contains information that will add to your application. To assist you 
in filling out the form, HUD has available for your voluntary use a 
Grant Application Detailed Budget Worksheet (HUD-424-CBW) and Grant 
Application Detailed Budget Worksheet Instructions (HUD-424-CBWI). They 
can be downloaded from https://www.grants.gov.
    9. Application Packaging. If you are granted a waiver to the 
application submission requirement, package the application as securely 
and simply as possible. Two-hole punch the pages at the top with a 2-
\3/4\ center. Do not use a three ring binder.

C. Submission Dates and Times

    Application Submission Date. Mentoring grant application submission 
date is July 7, 2005. If you are granted a waiver to the electronic 
application submission requirements, you must mail your application, 
using the United States Postal Service only, by midnight of the 
application submission date to be considered. Submit your application 
early to avoid missing the deadline and being disqualified by 
unanticipated delays or other related problems.

D. Intergovernmental Review

    Executive Order 12372 was issued to foster intergovernmental 
partnership and strengthen federalism by relying on state and local 
processes for the coordination and review of federal financial 
assistance and direct federal development. The order allows each state 
to designate an entity to perform a state review function. The official 
listing of state points of contact (SPOC) for this review process can 
be found at: https://www.whitehouse.gov/omb/grants/spoc.html. States 
that are not listed on the website have chosen not to participate in 
the intergovernmental review process, and therefore do not have a SPOC. 
If you are located within one of those states, you may send 
applications directly to HUD.
    If your state has a SPOC, you should contact it to see if it is 
interested in reviewing your application prior to submission to HUD. 
Please make sure that you allow ample time for this review process when 
developing and submitting your application.

E. Funding Restrictions

    1. Administrative costs. Administrative costs to the PHA are 
allowable but limited to 15% of the grant amount. For example, 
Mentoring demonstration program funds may be used to pay for the salary 
of a Mentoring Demonstration Program Coordinator (the PHA staff person 
who coordinates the Mentoring Demonstration Program). Administrative 
costs must adhere to OMB Circular A-87. You must use form HUD-424-CBW 
to itemize your administrative costs in your application.
    2. Ineligible Activities.
    a. Payment of wages and/or salaries to participants receiving 
supportive services and/or programs.
    b. Purchase, lease, or rental of land, real property (including 
homeownership housing units) and other space with grant funds, match 
funds or leverage funds.
    c. Purchase, lease, or rental of vehicles.
    d. Purchase, lease, or rental of office equipment.
    e. Cost of application preparation or other pre-award activities.
    f. Construction, rehabilitation, revitalization, or modernization 
of housing units or other physical structures with grant funds, match 
funds or leverage funds.
    g. Payment of Legal Fees.
    h. Incurring other costs that are not allowable under the HOPE VI 
NOFA grant award and are not stated as allowable under this NOFA.
    i. Payment may not go to the individual mentor. Payment may only go 
to the FB&CBO on a fee-for-service basis.
    The FB&CBOs will receive grant funds on a fee-for-service basis 
according to the number of benchmarks completed by participating HOPE 
VI residents. As the public housing resident family achieves each 
individual goal, payment for service will go to the sponsoring FB&CBO. 
Mentoring services may be donated or paid for by leverage and grant 
funds. If the Mentoring services are to be paid for by leverage cash or 
grant funds, payment must be results-oriented, based upon the measured 
goals and outcomes in Section e. above. See ``Funding Restrictions,'' 
Section IV.E. of this NOFA.
    3. Payment of Mentor FB&CBOs. The FB&CBOs will receive grant funds 
on a

[[Page 23681]]

fee-for-service basis according to the number of benchmarks completed 
by participating HOPE VI residents. As the public housing resident 
family achieves each individual goal, payment for service will go to 
the sponsoring FB&CBO. Mentoring services may be donated or paid for by 
leverage and grant funds.
    a. If the Mentoring services are donated, their value as in-kind 
services should be included in this application as Leverage Resources.
    b. If the Mentoring services are to be paid for by leverage cash or 
grant funds, payment must be results-oriented, based upon the five (5) 
measured goals and outcomes referred to in ``Program Requirements,'' 
Section III.C.2. of this NOFA.
    4. Transfer of Funds. HUD does not have the discretion to transfer 
funds available through this NOFA to any other program, grant, or area 
of the applicant's current HOPE VI grant. The funds must be used for 
the HOPE VI Mentoring Demonstration Program for FB&CBOs.
    5. Deobligation of Funds. HUD shall recover (take back) any grant 
funds where the activity has not been initiated or completed within the 
required 18-month grant term, which begins as of the grant agreement 
execution date. The grant agreement will set forth, in detail, 
circumstances under which funds may be recovered and other sanctions 
imposed. The PHA is encouraged to plan for sustainability of successful 
aspects of its mentoring demonstration program. Such sustained 
activities may extend beyond the 18-month grant term (e.g., using other 
funding/in-kind resources).

F. Other Submission Requirements

    This section provides the application submission and receipt 
instructions for HUD program applications. Please read the following 
instructions carefully and completely, as failure to comply with these 
procedures may disqualify your application. See Section IV.F. of the 
General Section for more detailed information.
    1. Electronic Delivery. HUD requires applicants to submit their 
applications electronically through https://www.grants.gov. HUD will not 
accept or consider any applications that have been submitted through 
any other method, unless a waiver is granted.
    2. Electronic Signature. Applications submitted through grants.gov 
constitute submission as electronically signed applications. The 
registration and e-authentication process establishes the Authorized 
Organization Representative. When you submit the application through 
Grants.gov, the name of your authorized organization representative on 
file will be inserted into the signature line of the application. 
Applicants must register the individual who is able to make legally 
binding commitments for the applicant organization as the Authorized 
Organization Representative.
    3. Waiver of Electronic Submission Requirement. HUD will only 
accept electronic applications submitted through https://www.grants.gov 
unless the applicant has received a waiver from the Department. HUD 
regulations at 24 CFR 5.110, permit waivers of regulatory requirements 
to be granted for cause. If you are unable to submit your application 
electronically, you may, in writing, request a waiver from this 
requirement. Your waiver request must state the basis for the request 
and explain why electronic submission is not possible. The basis for 
waivers for cause may include but are not limited to: (a) lack of 
available internet access in the geographic location in which the 
applicant is located or, (b) the physical disability of the applicant 
prevents the applicant from accessing or responding to the electronic 
application. See Section IV.F. of the General Section for more detailed 
information.
    4. No Facsimiles of Entire Application. HUD will not accept fax 
transmissions from applicants who receive a waiver to submit a paper 
copy application. Paper applications must be complete and submitted in 
their entirety, via the USPS Express Mail.

V. Application Review Information

A. Criteria: Factors for Award Used to Evaluate and Rate Mentoring 
Demonstration Programs Applications

    The factors for rating and ranking applicants and maximum points 
for each factor are provided below. The maximum number of points 
available for this program is one hundred.
1. Rating Factor 1: Capacity of the Applicant, FB&CBO and Relevant 
Organizational Staff (32 Points)
    Description. This factor addresses whether the applicant has the 
organizational resources necessary to successfully implement the 
proposed activities within the grant period. In rating this factor, HUD 
will consider the extent to which the proposal demonstrates that the 
applicant will have qualified and experienced staff dedicated to 
administering the program.
a. Proposed Program Staffing. Staff Experience (13 Points)
    (1) This factor evaluates the knowledge and experience of the 
proposed Mentoring Demonstration Program Coordinator, and other HOPE VI 
staff in designing and successfully managing programs similar to the 
program for which funding is being requested. Experience will be judged 
in terms of recent, relevant, and successful experience of the team to 
undertake eligible program activities. In rating this factor, HUD will 
consider experience within the last 5 years to be recent. Experience 
should relate specific activities and specific accomplishments.
    (2) Scoring:
    (a) If the application demonstrates and documents the success of 
the PHA's CSS or comparable program, the application will receive up to 
13 points. Applicants must provide quantifiable evidence to support 
their assertion of success and show how this success is attributable to 
their staffing structure.
    (b) If the application demonstrates and documents the PHA has 
implemented a CSS or comparable program, but do not yet have positive 
results to report, the application will receive up to 8 points. 
Applicants must provide quantifiable evidence to support their 
assertion of results and show how this is related to their staffing 
structure.
    (c) If the application demonstrates the PHA has never implemented a 
CSS or comparable program, the application will receive zero points.
b. FB&CBO Partner Capacity and Experience (15 Points)
    (1) The application will be evaluated based on the capacity of the 
designated partners (FB&CBOs), their experience in implementing similar 
programs, and their ability to assemble a team of mentors who will work 
with HOPE VI families. The application will also be evaluated on 
whether the FB&CBO partners will be able to quickly access enough 
qualified mentors, to deliver the proposed activities in a timely and 
effective fashion.
    (2) Scoring:
    (a) If, as of the application submission date, partners/FB&CBOs 
have staff in place, an identified group of individuals willing to 
become mentors, and have experience in implementing similar programs, 
the application will receive up to a maximum of 15 points;
    (b) If, as of the application submission date, the partner/FB&CBO 
has an identified group of individuals willing to become mentors, but 
lacks either the experience or a staff person to

[[Page 23682]]

coordinate the program, the application will receive up to a maximum of 
8 points;
    (c) If, as of the application submission date, the partner/FB&CBO 
has not identified group of individuals willing to become mentors, the 
application will receive zero points.
c. Program Administration and Fiscal Management (4 Points)
    (1) Describe how the program will be managed; how HUD can be sure 
that there will be program and financial accountability; and describe 
staff or team members'' roles and responsibilities. The applicant must 
provide the following:
    (a) A complete description of the fiscal management structure, 
including fiscal controls that are in place;
    (b) A description of goals, interim and final program outcomes, and 
their timeframes;
    (c) A list of any findings (HUD Inspector General, management 
review, fiscal, etc.), material weaknesses, and methods used to address 
them.
    (2) Scoring:
    (a) If the application shows a fiscal management structure and 
controls that are adequate to manage a grant from this Mentoring NOFA, 
and does not have any outstanding findings, the applicant will receive 
up to 4 points.
    (b) If the application shows a fiscal management structure and 
controls that are adequate to manage a grant from this NOFA, but has 
outstanding findings (or does not address findings), the applicant will 
receive up to 2 points.
    (c) If the applicant does not describe its fiscal management 
structure and show that they are adequate, the applicant will receive 0 
points.
2. Rating Factor 2: Soundness of Approach (25 Points)
    Description. This factor addresses both the quality and cost-
effectiveness of your Mentoring Demonstration Program plan, as proposed 
in your application. Your factor responses must indicate a clear 
relationship between your proposed activities, the targeted 
population's needs, and the purpose of the program funding.
    In rating this factor HUD will consider:
a. Specific Mentoring Services and/or Activities (5 Points)
    (1) Description. Your response must describe in detail the specific 
mentoring services and activities you plan to offer, who will benefit 
from them and how they will benefit from them. You should tie specific 
services or activities to specific sub-groups within your public 
housing resident and low-income communities.
    (2) Scoring:
    (a) If you show a strong, comprehensive network of grassroots, 
faith-based and other community-based organizations that have the 
capacity to provide needed services to the participants, and describe 
how the services will benefit different participant sub-groups, you 
will receive up to 5 points.
    (b) If you show a variety of individual faith-based and community 
organizations, courses or services that will benefit different 
participant sub-groups, but not a network that responds comprehensively 
to the range resident needs, you will receive up to 2 points.
    (c) If you do not show the relationship of FB&CBOs, courses or 
services to planned participant goals and outcomes, you will receive 0 
points.
b. Feasibility (10 Points)
    (1) Description. This factor examines whether your overall 
application is logical, feasible, and likely to achieve its stated 
purpose during the term of the grant. You will be evaluated based on 
whether your application requests funds commensurate with the level of 
effort necessary to accomplish your goals and anticipated results.
    (2) Scoring:
    (a) If the application shows financial feasibility, the ability to 
work with the target group of residents and low-income families, a 
logical plan to provide mentoring services to the participants and that 
the amount of requested funds is commensurate with the level of effort 
necessary to accomplish your goals and anticipated results, the 
applicant will receive up to 10 points.
    (b) If the application shows some but not all of the element 
described in 2.a. above, the applicant will receive up to 6 points.
    (c) If the application shows only one element, or none of the 
elements described in 2.a. above, the applicant will receive up to 2 
points.
    (d) If the application as a whole is not logical and shows poor 
planning, the applicant will receive 0 points.
c. Resident Self Sufficiency (10 Points)
    (1) Description. In order to receive points in this category, 
responses to the factors and Mentoring Demonstration Program plan must 
indicate the types of activities and training programs your FB&CBOs/
mentors will offer which can help residents successfully transition 
from welfare to work and/or complete their desired goal. These 
activities should be geared to all members of the family.
    (2) Scoring:
    (a) If the applicant shows a comprehensive set of goals, courses/
services that considers the needs of the entire family (every member) 
of participants, which may include the attainment of higher earnings, 
improved credit scores, permanent employment, buying a home, changing 
negative behaviors, and improving poor performance in school, the 
application will receive up to 10 points.
    (b) If the applicant proposes goals, courses/services that consider 
the needs of fewer than every family member, the application will 
receive up to 5 points.
    (c) If the applicant does not show that the program will contribute 
to resident self-sufficiency, the application will receive 0 points.
3. Rating Factor 3: Leveraging Resources (20 Points)
    a. Description. This factor addresses your ability to secure 
community resources that can be combined with HUD's grant resources to 
achieve program purposes. In rating this factor, HUD will look at the 
extent to which you and your partner coordinate and leverage your 
services with other organizations serving the same or similar 
populations.
    (1) Leverage may be cash or other resources or services that can be 
donated, and may include: In-kind services, contributions or 
administrative costs provided to the applicant; funds from federal 
sources (not including Public Housing or HOPE VI funds) as allowed by 
statute, including for example CDBG; funds from any state or local 
government sources; and funds from private contributions.
    (2) Leveraged funds and in-kind services (``Donations'') must be 
firmly committed. ``Firmly committed'' means that the amount of 
leveraged resources and their dedication to the Mentoring Demonstration 
Program activities must be explicit, in writing and signed by a person 
authorized to make the commitment.
    (3) Donations that were included in your HOPE VI NOFA application 
may not also be included in your Mentoring Demonstration Program NOFA 
application. In order to be counted toward this rating factor, the 
related commitment document must address services specific to this 
NOFA.
    (4) If volunteer time is being donated, it should be calculated 
using the number of hours to be donated, multiplied by the normal 
professional rate for the local area or, if these are not applicable, 
the national minimum wage

[[Page 23683]]

rate. The commitment must be in place at time of award. Public Housing 
funds of any kind are not an eligible donation. Applicant staff time is 
not an eligible donation. Applicants shall annotate the Form HUD-424-CB 
to list the sources and amount of each donation.
    (5) Points for this factor will be awarded based on the documented 
evidence of partnerships and firm commitments and the ratio of 
requested funding to the total proposed grant budget. See Section IV.B. 
of this NOFA for documentation requirements.
    b. Scoring:
    (1) Applicants that document firm commitments to obtain extra 
funding equal to 50% or more of the requested amount will receive the 
full 20 points.
    (2) Applicants that document firm commitments to obtain extra 
funding equal to from 25% to 49.9% of the requested amount will receive 
10 points.
    (3) Applications that document firm commitments to obtain from 10% 
to 24.9% of the requested amount will receive 5 points
    (4) Applications that document firm commitments to obtain less than 
10% or less of the requested amount will receive 0 points.
4. Rating Factor 4: Achieving Results and Evaluation Methods (20 
Points)
    a. Description. Under this rating factor, applicants must 
demonstrate how they propose to measure their success and outcomes. 
This rating factor requires that the applicant identify goals, interim 
and final program outcomes, and their timeframes. Required outcome 
measures must include, at a minimum:
    (1) Changes in participants' income; and
    (2) Changes in participants' credit ratings.
    Timeframes for outcomes should take into account the due date of 
the required periodic report to HUD and items that will be planned into 
the Mentoring Demonstration Program.
    Performance indicators should be objectively quantifiable and 
should measure actual achievements against anticipated achievements. 
The narrative should identify what you are going to measure, how you 
are going to measure it, and the steps you have in place to adjust your 
plans if outcomes are not met within the established 18-month grant 
term timeframe. The Logic Model will be used as part of the evaluation 
of this rating factor.
    b. Scoring:
    (1) If the applicant shows interim and final measurable outcomes 
and/or benchmarks, with timeframes, and plans for measuring the 
required outcomes in both the Mentored group and control group, and 
shows plans for adjusting the program, the application will receive up 
to 20 points.
    (2) If the applicant shows interim and final measurable outcomes or 
benchmarks, with timeframes, and plans for measuring the required 
outcomes in both the Mentored group and control group but without plans 
for adjusting the program, the application will receive up to 10 
points.
    (3) If the application does not show periodic and final measurable 
outcomes or benchmarks, with timeframes, or does not show plans to 
measure the required outcomes, the application will receive 0 points.
5. Rating Factor 5: Family Self-Sufficiency (2 Points)
    a. Scoring:
    (1) Applicants that can demonstrate that the participants in both 
the Mentored and the control groups will all be also enrolled in the 
PHA's Family Self-Sufficiency program within 60 days after the date of 
notification of grant award, will receive 2 Points.
    (2) Applicants that will not enroll the participants in both the 
Mentored and control groups in a Family Self-Sufficiency program within 
60 days after notification of grant award, will receive 0 points.
6. Rating Factor 6: Energy Star (1 Point)
    a. Description. HUD has adopted a wide-ranging energy action plan 
for improving energy efficiency in all program areas. See, 
``Participation in Energy Star,'' Section V.B.2.h. of the General 
Section of the SuperNOFA. Promotion of Energy Star compliance is a HOPE 
VI Revitalization program requirement. See Section III.C. of this NOFA.
    b. Scoring:
    (1) You will receive 1 Point if your application demonstrates that 
you will include Energy Star in homeownership counseling.
    (2) You will receive 0 Points if your application does not 
demonstrate that you will include Energy Star in homeownership 
counseling.

B. Review and Selection Process

    1. Two levels of review will be conducted:
    a. A technical review by individual reviewers to confirm 
eligibility and rate the application based on the four rating factors 
provided in this section; and,
    b. A technical review by a Review Committee to ensure uniform 
rating treatment by the individual reviewers. HUD will select for grant 
award the highest ranked application first and continue down in ranking 
until funds are exhausted.
    2. Response to Factors as Narrative: The responses to the rating 
factors constitute the narrative portion of the application. The rating 
factor responses should include information and references to the 
Mentoring Demonstration Program Plan and other documentation in the 
application. The factors cover key personnel, target audience, 
services, and activities, how the services or activities match the 
needs of the target audience, program evaluation, and financial 
controls. A narrative separate from the rating factor responses will 
not be reviewed. Repeating information is not necessary.
    3. Corrections to Deficient Applications:
    a. Consistent with its regulations at 24 CFR part 4, subpart B, HUD 
will not consider any unsolicited information, you the applicant may 
want to provide after the application submission date. HUD may contact 
you to clarify an item in your application or to correct technical 
deficiencies. HUD may not seek clarification of items or responses that 
improve the substantive quality of your response to the rating factors. 
In order not to unreasonably exclude applications from being rated and 
ranked, HUD may contact applicants to ensure proper completion of the 
application and will do so on a uniform basis for all applicants. 
Examples of curable (correctable) technical deficiencies include 
failure to submit the proper certifications, failure to submit an 
application that contains a signature or, when required, an original 
signature, by an authorized official. In each case, HUD will notify you 
in writing of a technical deficiency. HUD will notify applicants by 
facsimile or by the United States Postal Service. It is very important 
that the fax number listed on the Application Receipt is correct so 
that the notification gets to the right person on your staff. 
Clarifications or corrections of technical deficiencies in accordance 
with the information requested by HUD must be submitted within seven 
calendar days of the date you receive HUD notification. (If the 
submission date falls on a Saturday, Sunday, or a federal holiday, your 
correction must be received by HUD on the next day that is not a 
Saturday, Sunday, or a federal holiday.) If the deficiency is not 
corrected within this time period, HUD will reject the application as 
incomplete and it will not be considered for funding.
    b. Unacceptable Applications. After the 7-day technical deficiency 
correction period, HUD will disapprove

[[Page 23684]]

all applications that it determines are not acceptable for processing. 
HUD's notification of rejection will state the basis for the decision.

VI. Award Administration Information

A. Award Notices

    1. The HUD Reform Act prohibits HUD from notifying you as to 
whether or not you have been selected to receive a grant until it has 
announced all grant recipients. If your application has been found to 
be ineligible or if it did not receive enough Points to be funded, you 
will not be notified until the successful applicants have been 
notified. HUD will provide written notification to all applicants, 
whether or not they have been selected for funding.
    2. Authorizing Document. The notice of award signed by the 
Assistant Secretary for Public and Indian Housing (grants officer) is 
the authorizing document. This notice will be delivered by fax and the 
U.S. Postal Service.
    3. Grant Agreement. When you are selected to receive a Mentoring 
grant, HUD will send you a Grant Agreement, which constitutes the 
contract between you and HUD to carry out and fund public housing 
revitalization activities. Both you and HUD will sign the cover sheet 
of the grant agreement. It is effective on the date of HUD's signature.
    4. Applicant Debriefing. HUD will provide an applicant a copy of 
the total score received by their application and the score received 
for each rating factor.

B. Administrative and National Policy Requirements

    1. Timeliness of Development Activity. Grantees must proceed within 
a reasonable timeframe, to complete the goals and objectives within the 
18-month grant term. The PHA is encouraged to plan for sustainability 
of successful aspects of its mentoring demonstration program. Such 
sustained activities may extend beyond the 18-month grant term (e.g., 
using other funding/in-kind resources) but the applicant should be 
reminded that the unused grant funds associated with this grant will be 
deobligated after the end of the grant term, as noted under section 
IV.E.
    2. Match.
    a. Grantees will be required to show evidence that matching 
resources were actually received and used for their intended purposes. 
Sources of matching funds may be substituted after grant award, as long 
as the dollar requirement is met.
    b. Grantees must pursue and enforce any commitment (including 
commitments for services) obtained from any public or private entity 
for any contribution or commitment to the project or surrounding area 
that was part of the match amount.
    3. LOCCS Requirements. The grantee must record all obligations and 
expenditures in LOCCS.
    4. Conflict of Interest in Grant Activities.
    a. Prohibition. In addition to the conflict of interest 
requirements in 24 CFR part 85, no person who is an employee, agent, 
consultant, officer, or elected or appointed official of a grantee and 
who exercises or has exercised any functions or responsibilities with 
respect to activities assisted under a HOPE VI grant, or who is in a 
position to participate in a decision-making process or gain inside 
information with regard to such activities, may obtain a financial 
interest or benefit from the activity, or have an interest in any 
contract, subcontract, or agreement with respect thereto, or the 
proceeds thereunder, either for himself or herself or for those with 
whom he or she has family or business ties, during his or her tenure or 
for one year thereafter.
    b. HUD-Approved Exception.
    (1) Standard. HUD may grant an exception to the prohibition in 
Section a. above on a case-by-case basis when it determines that such 
an exception will serve to further the purposes of HOPE VI and its 
effective and efficient administration.
    (2) Procedure. HUD will consider granting an exception only after 
the grantee has provided a disclosure of the nature of the conflict, 
accompanied by:
    (a) An assurance that there has been public disclosure of the 
conflict;
    (b) A description of how the public disclosure was made; and
    (c) An opinion of the grantee's attorney that the interest for 
which the exception is sought does not violate state or local laws.
    (d) Consideration of Relevant Factors. In determining whether to 
grant a requested exception under Section a. above, HUD will consider 
the cumulative effect of the following factors, where applicable:
    (i) Whether the exception would provide a significant cost benefit 
or an essential degree of expertise to the plan and demolition 
activities that would otherwise not be available;
    (ii) Whether an opportunity was provided for open competitive 
bidding or negotiation;
    (iii) Whether the person affected is a member of a group or class 
intended to be the beneficiaries of the plan and the exception will 
permit such person to receive generally the same interests or benefits 
as are being made available or provided to the group or class;
    (iv) Whether the affected person has withdrawn from his or her 
functions or responsibilities, or the decision making process, with 
respect to the specific activity in question;
    (v) Whether the interest or benefit was present before the affected 
person was in a position as described in Section (iii) above;
    (vi) Whether undue hardship will result either to the grantee or 
the person affected when weighed against the public interest served by 
avoiding the prohibited conflict; and
    (vii) Any other relevant considerations.
    5. Final Audit. Recipients who receive $500,000 or more of Federal 
funding in a single year, in aggregate, are required to obtain a 
complete final closeout audit of the recipient's financial statements 
by a certified public accountant (CPA), in accordance with generally 
accepted government audit standards. A written report of the audit must 
be forwarded to HUD within 60 days of issuance. Grant recipients must 
comply with the requirements of 24 CFR part 84 or 24 CFR part 85 as 
stated in OMB Circulars A-110, A-87, and A-122, as applicable.
    6. Policy Requirements.
    a. OMB Circulars and Administrative Requirements. You must comply 
with the following administrative requirements related to the 
expenditure of federal funds. OMB circulars can be found at https://
www.whitehouse.gov/omb/circulars/. Copies of the OMB 
circulars may be obtained from EOP Publications, Room 2200, New 
Executive Office Building, Washington, DC 20503; telephone (202) 395-
7332 (this is not a toll-free number). The Code of Federal Regulations 
can be found at https://www.access.gpo.gov/nara/cfr/.
    (1) Administrative requirements applicable to PHAs are:
    (a) 24 CFR part 85 (Administrative Requirements for Grants and 
Cooperative Agreements to State, Local, and Federally Recognized Indian 
Tribal Governments), as modified by 24 CFR 941 or successor part, 
subpart F, relating to the procurement of partners in mixed finance 
developments.
    (b) OMB Circular A-87 (Cost Principles for State, Local, and Indian 
Trib