Supplement to the Fiscal Year (FY) 2006 SuperNOFA for HUD's Discretionary Programs: NOFAs for the HOPE VI Revitalization Grants Program and HOPE VI Main Street Grants Program, 18496-18560 [06-3431]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 71, Number 69 (Tuesday, April 11, 2006)]
[Notices]
[Pages 18496-18560]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-3431]



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Part IV





Department of Housing and Urban Development





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Supplement to the Fiscal Year (FY) 2006 SuperNOFA for HUD's 
Discretionary Programs: NOFAs for the HOPE VI Revitalization Grants 
Program and HOPE VI Main Street Grants Program; Notice

Federal Register / Vol. 71, No. 69 / Tuesday, April 11, 2006 / 
Notices

[[Page 18496]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5053-N-01; FR-5059-N-01]


Supplement to the Fiscal Year (FY) 2006 SuperNOFA for HUD's 
Discretionary Programs: NOFAs for the HOPE VI Revitalization Grants 
Program and HOPE VI Main Street Grants Program

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of HUD's Fiscal Year (FY) 2006 Notice of Funding 
Availability (SuperNOFA) for HUD's Discretionary Programs: HOPE VI 
Revitalization Grants Program and HOPE VI Main Street Grants Program.

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SUMMARY: On March 8, 2006, HUD published its FY2006 SuperNOFA for HUD's 
Discretionary Programs, which contained 39 funding opportunities. 
Today's publication supplements the SuperNOFA by adding funding 
opportunities for the HOPE VI Main Street and HOPE VI Revitalization 
programs. Since these NOFAs are part of the SuperNOFA, the NOFAs 
published today are governed by the information and instructions found 
in the Notice of Funding Availability Policy Requirements and General 
Section (General Section) to the SuperNOFA that HUD published on 
January 20, 2006, and the Introduction published on March 8, 2006.

DATES: The key dates that apply to the HOPE VI Main Street and HOPE VI 
Revitalization programs are found in the individual program NOFAs 
published today and which are part of this notice.

FOR FURTHER INFORMATION CONTACT: The individual program NOFAs will 
identify the applicable agency contacts for each program. Questions 
regarding today's Introduction, the General Section of January 20, 
2006, or the Introduction of March 8, 2006, should be directed to the 
NOFA Information Center between the hours of 10 a.m. and 6:30 p.m. 
Eastern Time at (800) HUD-8929. Hearing-impaired persons may call 800-
HUD-2209. Questions regarding specific program requirements should be 
directed to the agency contacts identified in each program NOFA.

SUPPLEMENTARY INFORMATION: Today's publication follows the publication 
of the General Section of the FY2006 SuperNOFA on January 20, 2006 (71 
FR 3382), and the SuperNOFA for HUD's Discretionary Programs on March 
8, 2006 (71 FR 11712), and presents two funding opportunities that 
supplement HUD's FY2006 SuperNOFA. Specifically, through today's 
publication, HUD is making available approximately $76.9 million in 
assistance through the FY2006 HOPE VI Main Street and the FY2006 HOPE 
VI Revitalization Grants programs. Today's publication is in addition 
to the $2.2 billion previously made available through the FY2006 
SuperNOFA.
    As is HUD's practice in publishing the SuperNOFA, the NOFAs 
published today provide the statutory and regulatory requirements, 
threshold requirements, and rating factors applicable to funding being 
made available today (through the HOPE VI Revitalization and HOPE VI 
Main Street NOFAs). Notwithstanding, applicants for the two HOPE VI 
NOFAs must also refer to the January 20, 2006, General Section of the 
FY2006 SuperNOFA for important application information and 
requirements, including submission requirements, which have changed 
this year.
    In FY2006, HUD intends to continue to require its applicants to 
submit their applications electronically through https://www.grants.gov. 
If applicants have questions concerning the registration process, 
registration renewal, assigning a new Authorized Organization 
Representative, or have a question about a NOFA requirement, please 
contact HUD staff identified in the program NOFAs that are part of this 
notice. HUD staff cannot help you write your application, but can 
clarify requirements that are contained in this Notice and HUD's 
registration materials.
    New applicants should note that they are required to complete a 
five-step registration process in order to submit their applications 
electronically. The registration process is outlined in HUD's Notice of 
Opportunity to Register Early for Electronic Submission of Grant 
Applications for Funding Opportunities, published in the Federal 
Register on December 9, 2006 (70 FR 73332), and the brochure entitled, 
``STEP BY STEP: Your Guide to Registering for Grant Opportunities,'' 
located at https://www.hud.gov/offices/adm/grants/fundsavail.cfm. HUD 
also has a new brochure titled, ``Finding and Applying for Grant 
Opportunities,'' dated February 2006, which walks you through the 
process of finding and applying for grant opportunities. This brochure 
also contains Registration Tips that will help applicants who 
successfully submitted a grant application last year to determine if 
their registration is active and if they are ready to submit a grant 
application to https://www.grants.gov.
    The March 8, 2006, FY2006 SuperNOFA publication included a 
clarification of the Logic Model discussed in Section VI.C. entitled 
``Reporting'' of the January 20, 2006, General Section (see 71 FR 
3398). Although the Logic Model is to be completed by applicants, the 
Return on Investment (ROI) Statement referenced in the discussion of 
the Logic Model applies only to grantees, i.e., applicants selected for 
funding under the NOFAs. Applicants are not to complete the ROI 
statement. Additionally, for FY2006, the ROI statement is a new concept 
for the Logic Model. HUD is considering this new concept and will issue 
a separate notice within the next few weeks of today's announcement, to 
further address the ROI concept.
    Applications and Instructions are posted to https://www.grants.gov 
as soon as HUD finalizes them. HUD encourages applicants to subscribe 
to the Grants.gov free notification service. By doing so, applicants 
will receive an e-mail notification as soon as items are posted to the 
Web site. The address to subscribe to this service is https://
www.grants.gov/search/email.do. By joining the notification service, if 
a modification is made to the NOFA, applicants will receive an e-mail 
notification that a change has been made.
    HUD reiterates its hope that applicants benefit from the steps HUD 
has taken to provide early information to them on the funding process 
and requirements for the FY2006 SuperNOFA.

    Dated: April 3, 2006.
Roy A. Bernardi,
Deputy Secretary.
BILLING CODE 4210-01-P

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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 2006.
    C. Announcement Type. Initial announcement.
    D. Funding Opportunity Number. The Federal Register number for this 
NOFA is: FR-5053-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 deadline date is 
July 10, 2006. Electronic applications must be received and validated 
by Grants.gov by the deadline date. See the HUD's Super Notice of 
Funding Availability (SuperNOFA) General Section (71 FR 3382), 
published in the Federal Register on January 20, 2006 for application 
submission and timely receipt requirements.
    2. Estimated Grant Award Date: The estimated award date will be 
approximately September 15, 2006.
    G. Optional, Additional Overview Content Information.
    1. Available Funds. This NOFA announces the availability of 
approximately $71.9 million in FY 2006 funds for HOPE VI Revitalization 
Program grants.
    2. Proposed Rescission of Funds. The public is hereby notified that 
although this NOFA announces the availability of Fiscal Year (FY) 2006 
HOPE VI Funds, the FY 2007 budget proposes the rescission of the FY 
2006 HOPE VI Appropriation. Please note, therefore, that if Congress 
adopts this portion of the President's budget, this NOFA may be 
cancelled at a later date and awards made under this NOFA may not 
ultimately be funded.
    3. The maximum amount of each grant award is $20 million. It is 
anticipated that four grant awards will be made.
    4. Housing choice voucher (HCV) assistance is available from the 
tenant protection voucher fund 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. Applicants must prepare their housing 
choice voucher assistance applications for the targeted project in 
accordance with the requirements of Notice PIH 2005-15 (and any 
reinstatement of or successor to that Notice) and submit it in its 
entirety with the HOPE VI Revitalization Application. HUD will process 
the housing choice voucher assistance applications for funded HOPE VI 
applicants.
    5. All non-troubled public housing authorities (PHAs) with severely 
distressed public housing are eligible to apply, subject to the 
requirements under Section III of this NOFA. 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 https://
www.Grants.gov/Apply. Any technical corrections will be published in 
the Federal Register and posted to Grants.gov. Frequently asked 
questions will be posted on HUD's Web site at https://www.hud.gov/
offices/adm/grants/otherhud.cfm and https://www.hud.gov/offices/pih/
programs/ph/hope6/.
    9. General Section Reference. Section I, ``Funding Opportunity 
Description,'' of the Notice of HUD's Fiscal Year 2006 Notice of 
Funding Availability (NOFA) Policy Requirements and General Section to 
the Super NOFA for HUD's Discretionary Programs (General Section), 
Docket No.FR-5030 N 01, published in the Federal Register on January 
20, 2006, and the Introduction to the SuperNOFA issued in the Federal 
Register on March 8, 2006, is hereby incorporated by reference.

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 (42 U.S.C. 1437v) (1937 Act), 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, 
2006 (Pub. L. 109-115, approved November 30, 2005) 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 Main Street Rejuvenation and 
Housing Act of 2003 (Pub. L. 108-186, approved December 16, 2003).

C. Definitions

    1. CSS Team. The term ``CSS Team'' refers to PHA staff members and 
any consultants who will have the responsibility to design, implement, 
and manage your CSS program.
    2. CSS Partners. The term ``CSS Partners'' refers to the agencies 
and organizations that you will work with to provide supportive 
services for residents. A partner could be a local service organization 
such as a Boys or Girls Club that donates its building and staff to the 
program, or an agency such as the local Temporary Assistance for Needy 
Families (TANF) agency that works with you to ensure that their 
services are coordinated and comprehensive.
    3. 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).
    4. 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.
    5. 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.

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    6. 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.
    7. 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 (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.
    8. 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. of this 
NOFA for eligibility of multiple public housing projects and 
separability of a part of a public housing project.
    9. Team. The term ``your Team'' includes PHA staff who will be 
involved in HOPE VI grant administration, and any alternative 
management entity that will manage the revitalization process, be 
responsible for meeting construction time tables, and obligating 
amounts in a timely manner. This team includes any developer partners, 
program managers, property managers, subcontractors, consultants, 
attorneys, financial consultants, and other entities or individuals 
identified in the application who are proposed to carry out program 
activities.
    10. 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/.
    11. Universal Design. 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.

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 Fiscal Year (FY) 2006 
HOPE VI Funds, the FY 2007 budget proposes the rescission of the FY 
2006 HOPE VI Appropriation. Please note, therefore, that if Congress 
adopts this portion of the President's budget, this NOFA may be 
cancelled at a later date and awards made under this NOFA may not 
ultimately be funded.
    2. Revitalization Grants. Approximately $71.9 million of the FY2006 
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 four awards. 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. below, whichever is lower. HCV assistance is 
in addition to this amount.
    3. Housing Choice Voucher Assistance. Housing choice voucher (HCV) 
assistance is available from the tenant protection voucher fund 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. 
Applicants must prepare their housing choice voucher assistance 
applications for the targeted project in accordance with the 
requirements of Notice PIH 2005-15 (and any reinstatement of or 
successor to that Notice) and submit it in its entirety with the HOPE 
VI Revitalization Application. HUD will process the housing choice 
voucher

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assistance applications for funded HOPE VI applicants.
    4. Grant term. The period for completion shall not exceed 54 months 
from the date the NOFA award is executed by HUD, as described in the 
grant agreement.

III. Eligibility Information

A. Eligible Applicants

    1. Only 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 are eligible to 
apply.
    2. Housing Choice Voucher Programs Only, Tribal Housing Agencies, 
and Others. PHAs that only administer HCV/Section 8 programs, tribal 
housing agencies and tribally-designated housing entities, are not 
eligible to apply. Non-profit organizations, for-profit organizations, 
and private citizens and entrepreneurs 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 (cash or in-kind donations) 
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. These 
resources do not need to be new commitments in order to be counted for 
match.
    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, ROSS 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 Committed. Match donations must be firmly committed. See 
the Definitions section for more information.
    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 III, Program Requirements, (including Program 
Requirements that Apply to Match and Leverage and Program Requirements 
that Apply to Match) for match documentation requirements.

C. Other

    1. 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.
    a. Relocation. Relocation, including reasonable moving expenses, 
for residents displaced as a result of the revitalization of the 
project. See Sections III.C. and V.A. of this NOFA for relocation 
requirements.
    b. 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.
    c. 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.
    d. Rehabilitation and Physical Improvement. Rehabilitation and 
physical improvement of:
    1. Public housing; and
    2. 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.
    e. Development. Development of:
    1. Public housing replacement units; and
    2. Other units (e.g., market-rate units), provided a need exists 
for such units and such development is performed with non-public 
housing funds.
    f. Homeownership Activities. Assistance involving the 
rehabilitation and development of homeownership units. Assistance may 
include:
    1. Down payment or closing cost assistance;
    2. Hard or soft second mortgages; or
    3. Construction or permanent financing for new construction, 
acquisition, or rehabilitation costs related to homeownership 
replacement units.
    g. Acquisition. Acquisition of:
    1. Rental units and homeownership units;

[[Page 18501]]

    2. 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);
    3. Land for economic development-related activities, provided that 
such acquisition is performed with non-public housing funds.
    h. Management Improvements. Necessary management improvements, 
including transitional security activities.
    i. 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 the Program Requirements 
section of this NOFA.
    j. Community and Supportive Services (CSS).
    1. 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.
    2. CSS activities. CSS activities may include, but are not limited 
to:
    (a) 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.
    (b) 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.
    (c) Readiness and retention activities, which frequently are key to 
securing private sector commitments to the provision of jobs.
    (d) Employment training activities that include results-based job 
training, preparation, counseling, development, placement, and follow-
up assistance after job placement.
    (e) 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.
    (f) Training on topics such as parenting skills, consumer 
education, family budgeting, and credit management.
    (g) 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.
    (h) 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.
    (i) Substance and alcohol abuse treatment and counseling.
    (j) Activities that address domestic violence treatment and 
prevention.
    (k) 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.
    (l) Transportation, as necessary, to enable all family members to 
participate in available CSS activities and to commute to their places 
of employment.
    (m) Entrepreneurship training and mentoring, with the goal of 
establishing resident-owned businesses.
    k. 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.
    2. Threshold Requirements. Applications must meet all threshold 
requirements in order to be rated and ranked. If an application does 
not meet all threshold requirements, HUD will not consider the 
application as eligible for funding and will not rate and rank it. HUD 
will screen for technical deficiencies and administer a cure period. 
The subsection entitled, ``Corrections to Deficient Applications,'' in 
Section V.B. of the General Section is incorporated by reference and 
applies to this NOFA, except that clarifications or corrections of 
technical deficiencies in accordance with the information provided by 
HUD must be submitted within 7 calendar days of the date of receipt of 
the HUD notification. The thresholds listed below can be cured for 
technical deficiencies except for those indicated as non-curable. If an 
applicant does not cure all its technical deficiencies that relate to 
threshold requirements within the cure period, HUD will consider the 
threshold(s) in question to be failed, will not consider the 
application as eligible for funding and will not rate and rank it. 
Applicants MUST review and follow documentation requirements provided 
in this Thresholds Requirements Section and the Program Requirements of 
Section III.C. A false statement (or certification) in an application 
is grounds for denial or termination of an award and grounds for 
possible prosecution as provided in 18 U.S.C. 1001, 1010, and 1012, and 
32 U.S.C. 3729 and 3802. Required forms, certifications and assurances 
must be included in the HOPE VI application and will be available over 
the Internet at https://www.hud.gov/offices/adm/grants/otherhud.cfm, 
https://www.hud.gov/offices/pih/programs/ph/hope6/ and https://
www.grants.gov.
    a. Curable Thresholds. The following thresholds may be cured in 
accordance with the criteria above. Examples of curable (correctable) 
technical deficiencies include but are not limited to inconsistencies 
in the funding request, failure to submit the proper certifications 
(e.g., HUD-2880), and failure to submit a signature and/or date of 
signature on a certification.
    (1) 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. Applicants must use the severe distress 
certification form provided with this NOFA and place it in your 
attachments. The certification must be signed by an engineer or 
architect licensed by a state licensing board. The license does not 
need to have been issued in the same state as the severely distressed 
project. The engineer or architect must include his or her license 
number and state of registration on the certification. The engineer or 
architect may not be an employee of the housing authority or the city.
    (2) Site Control. 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 
EVERY property. If you propose to develop off-site housing and you do 
not provide acceptable evidence of site control, your

[[Page 18502]]

ENTIRE application will be disqualified from further consideration for 
funding.
    (1) Site control documentation 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. of this 
NOFA.
    (d) Standard underwriting procedures.
    (2) If you demonstrate site control through an option to purchase, 
the option must extend for at least 180 days after the application 
submission date.
    (3) Evidence may include an option to purchase the property, a 
sales agreement, a land swap, or a deed. Evidence may NOT include a 
letter from the Mayor or other official, letters of support from 
members of the appropriate municipal entities, or a resolution 
evidencing the PHA's intent to exercise its power of eminent domain.
    (4) You must include evidence/documentation of site control in your 
attachments.
    (3) Land Use. Your application must include a certification from 
the appropriate local official (not the Executive Director) documenting 
that all required land use approvals for developed and undeveloped land 
have been secured for any off-site housing and other proposed uses, or 
that the request for such approval(s) is on the agenda for the next 
meeting of the appropriate authority in charge of land use. In the case 
of the latter, the certification must include the date of the meeting. 
You must include this certification in your attachments.
    (4) Selection of Developer. You must assure 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.
    (c) You must demonstrate compliance with this threshold through 
completion and inclusion of the Assurances for HOPE VI Application 
document.
    (5) Relocation Plan Assurance. (a) If you have not yet relocated 
residents, you must assure that
    (i) A HOPE VI Relocation Plan was completed as of the application 
due date (to learn more about HOPE VI Relocation Plans, applicants may 
review Notice CPD 04-02, ``Revision to Notice CPD 02-8, Guidance on the 
Application of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA), as Amended, in HOPE VI 
Projects'';
    (ii) That it conforms to the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA) requirements; and
    (iii) That it implements HOPE VI relocation goals, as described in 
Section V.A. of this NOFA. This means your plan must describe how the 
HOPE VI Relocation Plan incorporates the HOPE VI relocation goals in 
Section V.A.
    (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 assure that the relocation was completed in accordance with URA 
and/or section 18 requirements (depending on which of these 
requirements applied to the demolition in question).
    (c) You must demonstrate compliance with this threshold through 
completion and inclusion of the Assurances for HOPE VI Application 
document.
    (6) Resident Involvement in the Revitalization Program Assurance. 
You must assure 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. You MUST follow the 
resident involvement requirements listed in the Program Requirements 
section, Section III.C. of this NOFA. You must demonstrate compliance 
with this threshold through completion and inclusion of the Assurances 
for HOPE VI Application document.
    (7) Standard Forms and Certifications. The last part of your 
application will be comprised of standard certifications common to many 
HUD programs. For the HOPE VI application, the required standard forms 
and certifications are:
    a. Application for Federal Assistance (SF-424); this will be placed 
at the front of your application;
    b. Acknowledgment of Application Receipt (HUD-2993), applicable 
ONLY if the applicant obtains a waiver from the electronic submission 
requirement; this will be placed at the front of your application;
    c. Disclosure of Lobbying Activities (SF-LLL), if applicable;
    d. Applicant/Recipient Disclosure/Update Report (HUD-2880);
    e. Program Outcome Logic Model (HUD-96010);
    f. America's Affordable Communities Initiative (HUD-27300), if 
applicable;
    g. Funding Application (developed in accordance with PIH Notice 
2005-15 or successor), including the Section 8 Tenant-Based Assistance 
Rental Certificate Program, Rental Voucher Program, form HUD-52515, if 
applicable; and
    h. Facsimile Transmittal (HUD-96011).
    (8) 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. You must include this 
certification in your attachments.
    b. Non-Curable Thresholds. The following thresholds may NOT be 
cured in accordance with the criteria referenced in III.C.2 above.
    (1) One application. Each applicant may submit only one HOPE VI 
Revitalization application, in accordance with the criteria of this 
NOFA. If HUD receives multiple applications electronically, HUD will 
rate and rank the last application received and validated by Grants.gov 
by the application deadline. All other applications will not be 
considered eligible.
    (1) HUD will not consider applications sent entirely by facsimile 
(See General Section).
    (2) HUD will not accept for review or evaluation any videos 
submitted as part of the application or appendices.
    (3) HUD will not consider any application that does not meet the 
timely submission requirements for electronic submission, in accordance 
with the criteria of the General Section.
    (2) 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

[[Page 18503]]

application will not be considered for funding. Applicants must 
demonstrate compliance with this threshold in their narrative. 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.
    (3) 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. You must provide a city 
map illustrating the current targeted site(s), whether contiguous, 
single, or scattered-site projects.
    (1) Contiguous Projects. Each application may request funds for 
more than one project if those projects are immediately (a) adjacent to 
one another or (b) 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 either adjacent or 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. If you propose to revitalize a scattered site 
public housing project, you must provide a map that clearly indicates 
that the projects fall within an area with a one-mile radius or, if 
larger, are located within the hard edges (e.g., major highways, 
railroad tracks, lakeshore, etc.) of a neighborhood.
    (4) Sites Previously Funded by HOPE VI Revitalization grants. You 
may submit a Revitalization application that targets part of a project 
that is being, or has been, revitalized or replaced under a HOPE VI 
Revitalization grant awarded in previous years. 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. 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-2006 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/replace the units not funded by the previous HOPE 
VI Revitalization grant, you must provide a listing of which units were 
funded by the previous grant and which units are being proposed for 
funding under the current grant application. You must demonstrate 
compliance with this threshold in your narrative (including the above 
listing as relevant). If you request funds to revitalize units or 
buildings that have been funded by an existing HOPE VI Revitalization 
grant, your application will not be considered for funding.
    (5) 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, in your narrative 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 a part, to make use of the building feasible for 
revitalization. Separations may include a road, berm, catch basin, or 
other recognized neighborhood distinction; and (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. You must 
demonstrate compliance with this threshold in your narrative. If you do 
not propose to target only a portion of a project for revitalization, 
you may indicate, ``n/a'' in your narrative.
    (6) 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, your application will be ineligible for funding. HUD will 
evaluate your compliance with this threshold.
    (7) Dun and Bradstreet Data Universal Numbering System (DUNS) 
Number Requirement. This threshold is hereby incorporated from the 
General Section. All applicants seeking funding directly from HUD must 
obtain a DUNS number and include the number in its Application for 
Federal Assistance submission. Failure to provide a DUNS number will 
prevent you from obtaining an award, regardless of whether it is a new 
award or renewal of an existing award. This policy is pursuant to the 
Office of Management and Budget (OMB) policy issued in the Federal 
Register on June 27, 2003 (68 FR 38402). HUD published its regulation 
implementing the DUNS number requirement on November 9, 2004 (69 FR 
65024). A copy of the OMB Federal Register notice and HUD's regulation 
implementing the DUNS number can be found on HUD's Web site at https://
www.hud.gov/offices/adm/grants/duns.cfm. Applicants cannot submit 
applications electronically without a DUNS number entry. Applicants 
must carefully enter the DUNS number on the application package, making 
sure it is identical to the DUNS number under which the Authorized 
Organization Representative is registered to submit an application.
    (8) Compliance with Fair Housing and Civil Rights Laws. This 
threshold is hereby incorporated from the General Section. (a) With the 
exception of federally recognized Indian tribes and their 
instrumentalities, applicants must comply with all applicable fair 
housing and civil rights requirements in 24 CFR 5.105(a). If you are a 
federally recognized Indian tribe, you must comply with the 
nondiscrimination provisions enumerated at 24 CFR 1000.12, as 
applicable.
    (b) If you, the applicant: (i) Have been charged with an ongoing 
systemic violation of the Fair Housing Act; or (ii) Are a defendant in 
a Fair Housing Act lawsuit filed by the Department of Justice alleging 
an ongoing pattern or practice of discrimination; or (iii) 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

[[Page 18504]]

1973, or section 109 of the Housing and Community Development Act of 
1974, and the charge, lawsuit, or letter of findings referenced in 
subparagaph (i), (ii), or (iii) above has not been resolved to HUD's 
satisfaction before the application deadline, then you are ineligible 
and HUD will not rate and rank your application. HUD will determine if 
actions to resolve the charge, lawsuit, or letter of findings taken 
before the application deadline are sufficient to resolve the matter.
    Examples of actions that would normally be considered sufficient to 
resolve the matter include, but are not limited to: (i) A voluntary 
compliance agreement signed by all parties in response to a letter of 
findings; (ii) A HUD-approved conciliation agreement signed by all 
parties; (iii) A consent order or consent decree; or (iv) An issuance 
of a judicial ruling or a HUD Administrative Law Judge's decision.
    (9) Delinquent Federal Debts. This threshold is hereby incorporated 
from the General Section. Consistent with the purpose and intent of 31 
U.S.C. 3720B and 28 U.S.C. 3201(e), HUD will not award federal funds to 
an applicant that has an outstanding delinquent federal debt unless (1) 
the delinquent account is paid in full, (2) a negotiated repayment 
schedule is established and the repayment schedule is not delinquent, 
or (3) other arrangements satisfactory to HUD are made prior to the 
deadline date.
    (10) Debarment and Suspension. This threshold is hereby 
incorporated from the General Section. In accordance with 24 CFR part 
24, no award of federal funds may be made to applicants that are 
presently debarred or suspended, or proposed to be debarred or 
suspended from doing business with the federal government.
    3. 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 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 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 https://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).
    (2) 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.
    (3) 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. Match. See Section III.B. and III.C.3, Program Requirements that 
Apply to Match and Leverage.
    f. Leverage. See Section III.C.3, Program Requirements that Apply 
to Match and 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) 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.
    (3) 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

[[Page 18505]]

Collateral leverage are included only in the Leverage rating factor and 
are described in Section V. of this NOFA.
    (4) See the Program Requirements that Apply to Match and Leverage 
in this section.
    g. 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.
    h. 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 https://
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 https://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, where cost 
effective, for energy and water 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.
    (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-