Supplement to the Fiscal Year (FY) 2007 SuperNOFA for HUD's Discretionary Programs: NOFA for the HOPE VI Revitalization Grants Program, 41822-41858 [07-3713]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 72, Number 146 (Tuesday, July 31, 2007)]
[Notices]
[Pages 41822-41858]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-3713]



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Part II





Department of Housing and Urban Development





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Supplement to the Fiscal Year (FY) 2007 SuperNOFA for HUD's 
Discretionary Programs: NOFA for the HOPE VI Revitalization Grants 
Program; Notice

Federal Register / Vol. 72, No. 146 / Tuesday, July 31, 2007 / 
Notices

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5140-N-01]


Supplement to the Fiscal Year (FY) 2007 SuperNOFA for HUD's 
Discretionary Programs: NOFA for the HOPE VI Revitalization Grants 
Program

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of HUD's Fiscal Year (FY) 2007 Notice of Funding 
Availability for HUD's Discretionary Programs (SuperNOFA): HOPE VI 
Revitalization Grants Program.

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SUMMARY: On March 13, 2007, HUD published its FY2007 SuperNOFA for 
HUD's Discretionary Programs, which contained 38 funding opportunities. 
Today's publication supplements the SuperNOFA by adding funding 
opportunities for the HOPE VI Revitalization program. Although this 
NOFA was not included in the SuperNOFA announcement, this NOFA is 
governed by the information and instructions found in the Notice of 
HUD's Fiscal Year 2007 Notice of Funding Availability Policy 
Requirements and General Section (General Section) to the SuperNOFA 
that HUD published on January 18, 2007, the Introduction to the 
SuperNOFA published on March 13, 2007; and the Supplementary 
Information and Technical Corrections published on May 11, 2007.

FOR FURTHER INFORMATION CONTACT: Questions regarding specific program 
requirements should be directed to the agency contact identified in 
this program NOFA. Questions regarding the General Section of January 
18, 2007 or the Introduction of March 13, 2007, should be directed to 
the Office of Departmental Grants Management and Oversight at (202) 
708-0667 (this is not a toll-free number) or the NOFA Information 
Center at (800) HUD-8929 (toll-free). Persons with hearing or speech 
impairments may access these numbers via TTY by calling the Federal 
Information Relay Service at (800) 877-8339. The NOFA Information 
Center is open between the hours of 10 a.m. and 6:30 p.m. eastern time, 
Monday through Friday, except federal holidays.

SUPPLEMENTARY INFORMATION: Through today's publication, HUD is making 
available approximately $94.52 million in assistance through the FY2007 
HOPE VI Revitalization Grants program. Today's publication is in 
addition to the $2 billion previously made available through the FY2007 
SuperNOFA.
    As is HUD's practice in publishing the SuperNOFA, the NOFA 
published today provides the statutory and regulatory requirements, 
threshold requirements, and rating factors applicable to funding being 
made available today (through the HOPE VI Revitalization NOFA). 
Applicants for the HOPE VI NOFA must also refer to the January 18, 
2007, General Section of the FY2007 SuperNOFA; the March 13, 2007, 
SuperNOFA; and the May 11, 2007, Supplementary Information and 
Technical Corrections for important application information and 
requirements, including submission requirements, which have changed 
this year.
    In FY2007, 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 this program NOFA. HUD staff cannot 
help you write your application, but can clarify requirements that are 
contained in the General Section to the SuperNOFA, this Notice, and in 
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 General Section to the SuperNOFA included in the 
instructions download materials on Grants.gov provides a step-by-step 
explanation of the registration process, as well as where to find, on 
HUD's Web site, materials prepared by HUD to help guide applicants 
through the registration and application submission process.
    Applications and Instructions are posted to 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 encourages applicants to carefully read the General Section and 
program sections of the NOFA. Carefully following the directions 
provided can make the difference in a successful application 
submission.

    Dated: July 25, 2007.
Orlando J. Cabrera,
Assistant Secretary for Public and Indian Housing.

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 2007.
    C. Announcement Type. Initial announcement.
    D. Funding Opportunity Number. The Federal Register number for this 
NOFA is FR-5140-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.
    Application Deadline Date: The application deadline date is 
November 7, 2007. Electronic applications must be received and 
validated by Grants.gov by 11:59:59 p.m. eastern time on the deadline 
date. See HUD's General Section to the SuperNOFA (FR-5100-N-01), 
published in the Federal Register on January 18, 2007, and Supplemental 
Information and Technical Corrections published on May 11, 2007, for 
application submission, faxing instructions, and timely receipt 
requirements. HUD will not accept an entire application submitted by 
fax.
    G. Additional Overview Content Information.
    1. Available Funds. This NOFA announces the availability of 
approximately $94.52 million in FY 2007 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) 2007 
HOPE VI Funds, the FY 2008 budget proposes the rescission of the FY 
2007 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 or five grant awards will be made.
    4. All non-troubled public housing authorities (PHAs) with severely 
distressed public housing are eligible to apply, subject to the 
requirements under

[[Page 41823]]

Section III of this NOFA. PHAs that manage only a Housing Choice 
Voucher (HCV) program, tribal PHAs, and tribally designated housing 
entities are not eligible.
    5. A match of at least 5 percent is required.
    6. Application materials may be obtained from https://
www.grants.gov/applicants/apply_for_grants.jsp. 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/.
    7. General Section Reference. Section I, ``Funding Opportunity 
Description,'' of the General Section to the SuperNOFA for HUD's 
Discretionary Programs (General Section), Docket No. FR-5100-N-01, 
published in the Federal Register on January 18, 2007, the Introduction 
to the SuperNOFA published in the Federal Register on March 13, 2007, 
and the Supplementary Information and Technical Corrections published 
in the Federal Register on May 11, 2007, are 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 Revised Continuing Appropriations 
Resolution, 2007 (Pub. L. 110-5, approved February 15, 2007) 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 21045 of the Revised Continuing 
Appropriations Resolution, 2007 (Pub. L. 110-5, approved February 15, 
2007).

C. Definitions

    1. 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.
    2. 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.
    3. 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, and 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.
    4. 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.2 of this 
NOFA for eligibility of multiple public housing projects and 
separability of a part of a public housing project.
    5. Temporary Relocation. There are no provisions for ``temporary 
relocation'' under the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA). See Handbook 1378, Chapter 2, 
Section 207 for temporary relocation protections provided under the URA 
regulations and HUD policy. The Handbook can be obtained through 
HUDClips at https://www.hudclips.org/.
    6. 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

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many people as possible at little or no extra cost. A 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 FY 2007 HOPE VI Funds, 
the FY 2008 budget proposes the rescission of the FY 2007 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 $94.52 million of the FY 
2007 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 or five awards.
    3. Requested Amount. 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.3., whichever is lower. HCV assistance is in 
addition to this amount.
    4. Housing Choice Voucher (HCV) 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 HCV assistance applications for the 
targeted project in accordance with the requirements of Notice PIH 
2007-10 (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 HCV assistance applications for funded HOPE VI 
applicants. If you are not funded by this NOFA, the HCV application 
will not be processed. For applicants who are granted a waiver to the 
electronic application process, the HCV request should be located with 
the Standard Forms and Certifications at the back of the application. 
The notice can be found on the Internet at https://www.hudclips.org/cgi/
index.cgi.
    5. Grant term. The period for completion of construction shall not 
exceed 54 months from the date the NOFA award is executed by HUD, as 
described in the grant agreement. See Section IV.E.1. for statutory 
time limits related to the grant and expenditure of funds.

III. Eligibility Information

A. Eligible Applicants

    1. Only PHAs that have severely distressed housing in their 
inventory and that are otherwise in conformance with the threshold 
requirements provided in Section III.C. of this NOFA are eligible to 
apply.
    2. HCV Programs Only, Tribal Housing Agencies, and Others. PHAs 
that administer only HCV/Section 8 programs, tribal housing agencies 
and tribally designated housing entities, are not eligible to apply. 
Nonprofit organizations, for-profit organizations, and private citizens 
and entrepreneurs are not eligible to apply.
    3. Troubled Status. If HUD has designated your PHA 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 noncompliance 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 5 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, Resident Opportunities and Self-Sufficiency 
(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. For match documentation requirements, see section III.C.3.pp, 
Program Requirements that Apply to Match and Leverage.

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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.3. 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 longer 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;
    (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 Section III.C.3.v. 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 provide 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 one 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. The thresholds listed below can be cured for 
technical deficiencies,

[[Page 41826]]

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.3. 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 on the Internet at http:/
/www.grants.gov/applicants/apply_for_grants.jsp.
    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., form 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 their 
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. 
See Section IV.B.3.c. of the General Section for information on 
submitting third party documents.
    (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 ENTIRE 
application will be disqualified from further consideration for 
funding.
    (a) Site control documentation may only be contingent upon:
    (i) The receipt of the HOPE VI grant;
    (ii) Satisfactory compliance with the environmental review 
requirements of this NOFA;
    (iii) The site and neighborhood standards in section III.C.3. of 
this NOFA; and
    (iv) Standard underwriting procedures.
    (b) If you demonstrate site control through an option to purchase, 
the option must extend for at least 180 days after the application 
deadline date.
    (c) 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 relevant municipal entities, or a resolution evidencing 
the PHA's intent to exercise its power of eminent domain.
    (d) If one or more of your off-site parcels is a public housing 
property, you still must provide evidence of site control for those 
properties.
    (e) You must include documented evidence of site control in your 
attachments.
    (f) You must include a cover sheet with your documented evidence of 
site control in the Attachments section. This cover sheet must provide 
a table that matches the off-site parcels proposed in your application 
for housing development to the corresponding documented evidence of 
site control for those parcels. Specifically, this table should provide 
in one column the name of each parcel, as identified in your 
application. A second column should contain the name of the documented 
evidence corresponding to each parcel. A third column should provide 
the location of the documented evidence in the attachment (page number, 
etc.) and any other necessary detail about the evidence. If more than 
one unit will be built on a parcel, this must be identified as well in 
the table. The purpose of this table is to aid reviewers' ability to 
determine whether your application complies with this threshold. 
Accordingly, applicants should provide site control information as 
clearly and consistently as possible.
    (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 a request for quotation (RFQ) by the 
application deadline 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 
deadline date. To learn more about HOPE VI Relocation Plans, applicants 
may review Handbook 1378 and Notice CPD 02-08, ``Guidance on the 
Application of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA), as Amended, in HOPE VI 
Projects'' and Notice 04-02, ``Revision to Notice CPD 02-08, 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.6. of this NOFA. This means your plan must describe how the 
HOPE VI Relocation Plan incorporates the HOPE VI relocation goals 
contained in section V.A.6.
    (b) If relocation was completed (i.e., the targeted public housing 
site is vacant) as of the application deadline 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

[[Page 41827]]

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.3. 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 located in Section IV.B. of this NOFA.
    (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.
    (9) Capital Fund Financing Program (CFFP). This threshold applies 
to any PHA with an approved CFFP proposal or CFFP proposal submitted 
and under review by HUD before the announcement of FY 2007 HOPE VI 
Revitalization grant awards. As the pledges of Capital Funds are 
general in nature and not project-specific, this threshold applies to 
all CFFP proposals approved or submitted and under review by HUD for 
the PHA's public housing portfolio, not just the public housing site 
targeted by this HOPE VI application. HOPE VI Revitalization 
applications may not be from PHAs that have CFFPs approved or in 
process, unless:
    (a) The PHA includes in the application an opinion from its legal 
counsel that the activities proposed under the HOPE VI Revitalization 
application are permitted under the financing documents, or to the 
extent required, any approvals required under the financing documents 
have been obtained; and
    (b) The PHA certifies that, to the extent HUD determines that the 
Capital Fund projections in its CFFP Proposal did not accurately or 
completely incorporate the reduction in public housing units that would 
be caused by the HOPE VI activity, if it receives the HOPE VI 
Revitalization grant, and prior to undertaking the HOPE VI activity, it 
will use Capital Funds, or other eligible funds to defease, redeem, or 
otherwise prepay the CFFP financing. This prepayment must be sufficient 
to maintain the same debt coverage ratio in the year immediately 
following any reduction in annual contribution contract (ACC) Units 
related to the HOPE VI grant (based on the then-current year's capital 
fund allocation, but giving effect to the change in ACC Units in a 
manner acceptable to HUD) as existed prior to any reductions occurring 
as a result of the HOPE VI Revitalization grant. This certification may 
be provided in the form of a letter from the Executive Director.
    (c) HUD will consult internal CFFP records to verify which 
applicants have pending or approved CFFP proposals.
    b. Non-Curable Thresholds. The following thresholds may NOT be 
cured in accordance with the criteria referenced in III.C.2. above.
    (1) Number of Applications. Each applicant may submit a maximum of 
two HOPE VI Revitalization applications, in accordance with the 
criteria of this NOFA. If an applicant submits two applications, each 
application must target a different severely distressed public housing 
project, in accordance with the Contiguous, Single, and Scattered-Site 
Projects threshold requirement below. If HUD receives multiple 
applications electronically, HUD will rate and rank the last 
application for each severely distressed public housing development 
received and validated by Grants.gov by the application deadline. All 
other applications will not be considered eligible. In submitting 
multiple applications, applicants should provide the project name so 
that HUD's system can distinguish one application from another 
submitted by the same organization. If applicants find after submitting 
an application that they want to amend or adjust their application and 
it is prior to the deadline date, applicants should be aware that they 
must resubmit the entire application, including all fax transmissions 
previously sent, to ensure that HUD gets a complete application. HUD 
also recommends that fax transmissions associated to resubmitted 
applications be sent following validation by Grants.gov using the fax 
transmittal cover sheet (form HUD-96011) associated to the application. 
Submitting the fax transmittal after validation will ensure that your 
faxes will be associated to the most recent application and not a 
previously submitted application. HUD's system matches faxes as they 
come into the system and if a previous application exists prior to the 
new application arriving, the fax will be associated to the application 
already in HUD's system. HUD cannot re-associate faxes once they have 
been attached to an application.
    (a) HUD will not consider applications sent entirely by facsimile 
(See the General Section).
    (b) HUD will not accept for review or evaluation any videos 
submitted as part of the application or appendices.
    (c) 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 application will not be 
considered for funding. Applicants must demonstrate compliance with 
this threshold in their narrative. Examples of alternative proposals 
may include:
    (a) Rebuilding or rehabilitating an existing project or units at an 
off-site location that is in an isolated, non-residential, or otherwise 
inappropriate area;
    (b) Proposing a range of incomes, housing types (rental, 
homeownership, market-rate, public housing, townhouse, detached house, 
etc.), or costs that cannot be supported by a market analysis; or
    (c) Proposing to use the land in a manner that is contrary to the 
goals of your PHA.
    (3) Contiguous, Single, and Scattered-Site Projects. Except as 
provided in sections (a) and (b) below, each application must target 
one severely distressed public housing project. The public housing 
project(s) may already be vacated and/or demolished but may not be 
disposed of, as of the application deadline date. You must provide a 
city map at a scale sufficient to illustrate the current targeted 
site(s), whether contiguous, single, or scattered-site projects.

[[Page 41828]]

    (a) Contiguous Projects. Each application may request funds for 
more than one project if those projects are immediately (i) adjacent to 
one another or (ii) 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.
    (b) 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.
    (a) 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, 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 2007 
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 as listed above, 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.
    (b) You may not request HOPE VI Revitalization grant funds for 
units currently under construction, in accordance with the section 
IV(E), Funding Restrictions. You must demonstrate compliance with this 
threshold in your narrative.
    (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,'' for not applicable, in your narrative.
    (6) Desegregation Orders. You must be in full compliance with any 
desegregation or other court order, and with any 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 (Section III.C.2.b.). 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. Applicants 
should read the complete instructions in the General Section for 
completing the Grants.gov registration process. See the General Section 
for additional information regarding this requirement.
    (8) Compliance with Fair Housing and Civil Rights Laws. This 
threshold is hereby incorporated from the General Section (Section 
III.C.2.c.).
    (9) Delinquent Federal Debts. This threshold is hereby incorporated 
from the General Section (Section III.C.2.e). Applicants that at the 
time of award have federal debt or are in default of an agreement with 
the Internal Revenue Service (IRS) will not be funded. Applicants 
selected for funding have an obligation to report to HUD changes in 
status of a current IRS agreement covering federal debt.
    (10) Debarment and Suspension. This threshold is hereby 
incorporated from the General Section (Section III.C.2.j).
    (11) Default. Existing HOPE VI Revitalization Grantees that are in 
default of the HOPE VI Revitalization grant agreement as of the 
application deadline date are not eligible for funding under this NOFA. 
A grantee is in default if it has received a letter from HUD indicating 
its default status and has not resolved the issues to HUD's 
satisfaction.
    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, has 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

[[Page 41829]]

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. Disposition.
    (1) Disposition of a severely distressed public housing site, by 
sale or lease, in whole or in part, may be done in accordance with 
section 18 of the 1937 Act and implementing regulations at 24 CFR part 
970.
    (2) The Grantee will comply with the provisions of section 18 of 
the 1937 Act, 24 CFR part 970, as may be modified or amended from time 
to time, and the provisions of its approved disposition application 
(the approved ``Disposition Application''), unless otherwise modified 
in writing by HUD. The Grantee will also comply with procedures for 
processing dispositions associated with mixed-finance projects as set 
forth by HUD.
    (3) A lease of one year or more that is not incident to the normal 
operation of a development is considered to be a disposition that is 
subject to section 18 of the 1937 Act.
    d. 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/il06/
index.html.)
    e. Acquisition.
    (1) Acquisition Proposal. Before you undertake any acquisition 
activities with HOPE VI or other public housing funds, you must obtain 
HUD approval of an acquisition proposal that meets the requirements of 
24 CFR 941.303.
    (2) Rental Units. For acquisition of rental units in existing or 
new apartment buildings, single family subdivisions, etc., with or 
without rehabilitation, for use as public housing replacement units, 
you must obtain HUD approval of a Development Proposal in accordance 
with 24 CFR 941.304 (conventional development) or 24 CFR 941.606 
(mixed-finance development).
    (3) Land for Off-Site Replacement Units. For acquisition of land 
for public housing or homeownership development, you must comply with 
24 CFR part 941 or successor part.
    (4) Land for Economic Development-Related Activities.
    (a) Acquisition of land for this purpose is eligible only if the 
economic development-related activities specifically promote the 
economic self-sufficiency of residents.
    (b) Limited infrastructure and site improvements associated with 
developing retail, commercial, or office facilities, such as rough 
grading and bringing utilities to (but not on) the site, are eligible 
activities with prior HUD approval.
    f. Access to Services. For both on-site and any off-site units, 
your overall Revitalization plan must result in increased access to 
municipal services, jobs, mentoring opportunities, transportation, and 
educational facilities; i.e., the physical plan and self-sufficiency 
strategy must be well-integrated and strong linkages must be 
established with the appropriate federal, state, and local agencies, 
nonprofit organizations, and the private sector to achieve such access.
    g. Building Standards.
    (1) Building Codes. All activities that include construction, 
rehabilitation, lead-based paint removal, and related activities must 
meet or exceed local building codes. You are encouraged to visit HUD's 
Web site on Accessibility Analysis of Model Building Codes at https://
www.hud.gov/offices/fheo/disabilities/modelcodes/. You are encouraged 
to read the ``Final Report of HUD Review of the Fair Housing 
Accessibility Requirements in the 2003 International Building Code,'' 
which can be accessed from the webpage above, along with other valuable 
information on model codes and fair housing accessibility guidelines.
    (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: An Overview of Destruction 
with a Focus on Community Development Opportunities'' can be found at 
https://www.huduser.org/publications/destech/decon.html.
    (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 U.S. 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.

[[Page 41830]]

    (c) More information, the list of technologies, the latest PATH 
Newsletter, results from field demonstrations, and PATH projects can be 
found at www.pathnet.org.
    (4) Energy Efficiency.
    (a) New construction must comply with the latest HUD-adopted Model 
Energy Code (International Energy Conservation Code (IECC) 2003 or 
successor codes) 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, and the Department of Energy have signed a joint partnership to 
promote energy efficiency in HUD's affordable housing efforts and 
programs. The purposes of the Energy Star partnership are to promote 
energy efficiency in affordable housing stock and to help protect the 
environment. Applicants constructing, rehabilitating, or maintaining 
housing or community facilities are encouraged to promote and adopt 
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 and 
adopt Energy Star building by homebuyers and renters. Program 
activities can include developing Energy Star promotional and 
information materials, outreach to low- and moderate-income renters and 
buyers on the benefits and savings when using Energy Star products and 
appliances, and promoting the designation of community buildings and 
homes as Energy Star-compliant. For further information about Energy 
Star, see https://www.energystar.gov or call 888-STAR-YES (888-782-
7937), or, for the hearing-impaired, call 888-588-9920 TTY. See also 
the energy efficiency requirements in section III.C.3. above. See 
section V.A.9.g. of this NOFA for the Energy Star sub-rating factor.
    (7) Lead-Based Paint. You must comply with lead-based paint 
evaluation and reduction requirements as provided for under the Lead-
Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.). You 
also must comply with regulations at 24 CFR part 35, 24 CFR 965.701, 
and 24 CFR 968.110(k), as they may be amended or revised from time to 
time. Unless otherwise provided, you will be responsible for lead-based 
paint evaluation and reduction activities. The National Lead 
Information Hotline is (800) 424-5323.
    h. Labor Standards. The following standards must be implemented as 
appropriate in regard to HOPE VI grants:
    (1) Labor Standards.
    (a) Davis-Bacon wage rates apply to development of any public 
housing rental units or homeownership units developed with HOPE VI 
grant funds and to demolition followed by construction on the site. 
Davis-Bacon rates are ``prevailing'' minimum wage rates set by the 
Secretary of Labor that all laborers and mechanics employed in the 
development, including rehabilitation, of a public housing project must 
be paid, as set forth in a wage determination that the PHA must obtain 
prior to bidding on each construction contract. The wage determination 
and provisions requiring payment of these wage rates must be included 
in the construction contract;
    (b) HUD-determined wage rates apply to:
    (i) Operation (including nonroutine maintenance) of revitalized 
housing, and
    (ii) Demolition followed only by filling in the site and 
establishing a lawn.
    (2) Exclusions. Under section 12(b) of the 1937 Act, wage rate 
requirements do not apply to individuals who:
    (a) Perform services for which they volunteered;
    (b) Do not receive compensation for those services or are paid 
expenses, reasonable benefits, or a nominal fee for the services; and
    (c) Are not otherwise employed in the work involved (24 CFR part 
70).
    (3) If other federal programs are used in connection with your