Notice of Funding Opportunity (NOFA) for the Brownfields Economic Development Initiative for Fiscal Year 2007, 54324-54339 [07-4702]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 72, Number 184 (Monday, September 24, 2007)]
[Notices]
[Pages 54324-54339]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-4702]



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Part II





Department of Housing and Urban Development





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Notice of Funding Opportunity (NOFA) for the Brownfields Economic 
Development Initiative for Fiscal Year 2007; Notice

Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / 
Notices

[[Page 54324]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5142-N-01]


Notice of Funding Opportunity (NOFA) for the Brownfields Economic 
Development Initiative for Fiscal Year 2007

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice of funding availability (NOFA).

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SUMMARY: Purpose of Program: The purpose of the Brownfields Economic 
Development Initiative (BEDI) program is to enhance the security of a 
loan guaranteed by HUD under Section 108 of the Housing and Community 
Development Act of 1974, as amended, for the same brownfields economic 
development project, or to improve the viability of a brownfields 
economic development project financed with the Section 108-guaranteed 
loan, in order to stimulate economic development by local governments 
and private sector parties at brownfields sites and to return those 
sites to productive, economic use. All BEDI grants must be used in 
conjunction with a new Section 108-guaranteed loan commitment.

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Community Planning and Development.
    B. Funding Opportunity Title: Brownfields Economic Development 
Initiative.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number is FR-
5142-N-01. The OMB approval number is 2506-0153.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 
Brownfields Economic Development Initiative (BEDI), 14.246.
    F. Dates: The application deadline date is December 24, 2007. 
Applications must be received and validated by https://www.grants.gov/
gov/applicants/apply_for_grants.jsp no later than 11:59:59 pm on the 
application deadline date. Please see the Notice of HUD's FY2007 NOFA 
Policy Requirements and General Section to the FY2007 SuperNOFA for 
HUD's Discretionary Programs (General Section) published on January 18, 
2007 (72 FR 2396) for information on electronic deadline and timeliness 
requirements.
    G. Additional Overview Content Information: BEDI funds are used to 
enhance the security of a loan guaranteed by HUD under Section 108 of 
the Housing and Community Development Act of 1974, as amended, for the 
same brownfields economic development project, or to improve the 
viability of a brownfields economic development project financed with 
the Section 108-guaranteed loan, in order to stimulate economic 
development by local governments and private sector parties at 
brownfields sites and to return those sites to productive economic use. 
All BEDI grants must be used in conjunction with a new Section 108-
guaranteed loan commitment.
    HUD encourages brownfields economic development projects that 
propose the redevelopment of a brownfield site through new investments 
by identified private sector parties in addition to BEDI/Section 108 
financing and that will directly result in new business or job 
creation, increases in the local tax base or other near-term, 
measurable economic benefits.
    Those interested in applying for funding under this program should 
review carefully the General Section of the SuperNOFA published on 
January 18, 2007 (72 FR 2396), the Introduction to the FY2007 SuperNOFA 
published on March 13, 2007 (72 FR 11434) and the Fiscal Year 2007 
SuperNOFA for HUD's Discretionary Programs; Supplementary Information 
and Technical Corrections published on May 11, 2007 (72 FR 27032) and 
the following additional information.

Full Text of Announcement

I. Funding Opportunity Description

A. Authority

    BEDI is authorized pursuant to Section 108(q), Title I of the 
Housing and Community Development Act of 1974, as amended (42 U.S.C. 
5301).

B. Program Description

    BEDI is designed to help local governments redevelop brownfields, 
defined in this NOFA as abandoned, idled, or underutilized real 
property, including industrial and commercial facilities, where 
expansion or redevelopment is complicated by the presence or potential 
presence of environmental contamination. A BEDI grant award will be 
conditioned upon, and must be used in conjunction with, a new (i.e., 
not previously approved) Section 108-guaranteed loan commitment. Both 
Section 108 loan guarantee proceeds and BEDI grant funds are initially 
made available by HUD to units of general local government eligible for 
assistance under HUD's Community Development Block Grant (CDBG) program 
(specifically, the Entitlement and State programs, certain 
jurisdictions in the state of Hawaii under the Small Cities program, 
and the insular areas of Guam, American Samoa, the Northern Mariana 
Islands, and the Virgin Islands). A local government may re-loan the 
Section 108 loan proceeds and provide BEDI funds to a business or other 
public entity eligible to carry out a specific approved brownfields 
economic development project, or the public entity may carry out the 
eligible project itself. In either case, BEDI grant funds and the 
Section 108 proceeds must be used to support the same eligible BEDI 
project.
    Under this program, CDBG entitlement and non-entitlement grantees 
(and states for state-assisted non-entitlement jurisdictions) pledge 
their continuing CDBG allocations as security for the Section 108 loans 
guaranteed by HUD. BEDI grant funds are intended to reduce grantees' 
potential loss of future CDBG allocations by:
    1. Strengthening the economic feasibility of a project financed 
with Section 108 funds (and thereby increasing the probability that the 
project will generate enough cash to repay the guaranteed loan);
    2. Directly enhancing the security of the Section 108-guaranteed 
loan; or
    3. Employing a combination of these or other risk mitigation 
techniques.
    BEDI funds must be used as the stimulus for local governments and/
or private sector parties to commence redevelopment or continue phased 
redevelopment efforts of brownfields sites where contamination is 
present or potentially present and a redevelopment plan exists. HUD 
desires to see BEDI and Section 108 funds used to finance projects and 
activities that involve investment in the brownfields site by an 
identified private sector party that will provide near-term results and 
measurable economic benefits, such as job creation and increases in the 
local tax base.

C. Program Definitions

    Unless otherwise defined herein, terms defined in this NOFA shall 
have the same respective meanings as provided for in 24 CFR part 570.
    Act means Title I of the Housing and Community Development Act of 
1974 (42 U.S.C. 5301 et seq.).
    Application means a single set of documents, including a request 
for Section 108 loan guarantee assistance, submitted by an eligible 
applicant for BEDI grant funds, in accordance with the provisions of 
this NOFA, to finance a brownfields economic development

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project. Section IV.B.1.c. of this NOFA provides additional information 
on the nature and forms of Section 108 loan guarantee requests that 
must be submitted to HUD along with each BEDI application.
    Brownfields means abandoned, idled, or under-used real property 
(including industrial and commercial facilities) where expansion or 
redevelopment is complicated by the presence or potential presence of 
contamination.
    Brownfields Economic Development Initiative (BEDI) funds means the 
appropriated funds made available for the competition under this NOFA 
from any available appropriation.
    Brownfields Economic Development Initiative (BEDI) project or 
brownfields economic development project means a single activity or a 
group of activities constituting a planned, continuous, single 
undertaking that is eligible under Section 108(q) of the Act and under 
24 CFR 570.703 and projected to create or retain businesses or jobs, 
provide area or housing benefit to low- and moderate-income persons, 
redevelop blighted areas or sites, or otherwise lead to measurable 
economic benefits from redevelopment of one or more brownfields sites 
within five years.
    CDBG funds means those funds collectively so defined at 24 CFR 
570.3, including grant funds received pursuant to Section 108(q) and 
this NOFA.
    Economic Development Initiative (EDI) grant means the provision of 
economic development grant assistance under Section 108(q) of the Act, 
as authorized by Section 232 of the Multifamily Housing Property 
Disposition Reform Act of 1994 (Pub. L. 103-233, approved April 11, 
1994).
    EPA means the U.S. Environmental Protection Agency.
    Firm Commitment means either a written agreement or letter of 
understanding by which an applicant or a third party:
    (1) Agrees to perform an activity or provide resources as specified 
in the application, and demonstrates their relationship to the proposed 
BEDI/Section 108 project;
    (2) Specifies the dollar value of the commitment and demonstrates 
that it has the financial and organizational capacity to deliver the 
resources necessary to successfully complete the activity; and
    (3) Irrevocably commits the resources to the activity either 
through cash or in-kind services or contributions; if any portion is to 
be financed through a grant or loan from another public or private 
organization, that institution's grant or loan commitment must be 
firmly committed as well.
    Any such agreement or letter of understanding shall be understood 
as being contingent upon receipt of the BEDI grant. Funds expended 
prior to the submission of the BEDI application will not be considered 
as firmly committed funds for purposes of this NOFA.
    Additional information related to firm commitments of other 
resources is provided in Section V.A.2.d. of this NOFA, Rating Factor 4 
(Leveraging of Other Financial Resources). See Section IV.B.3.c. of the 
General Section for instructions on how third party documents are to be 
submitted electronically.
    Showcase Community means an applicant chosen by the federal 
government's Brownfields National Partnership for inclusion in the 
federal government's Brownfields Showcase Communities program. A list 
of the federally designated Brownfield Showcase Communities is provided 
on the HUD Web site at https://www.epa.gov/swerosps/bf/html-doc/
showfact.ftm.
    Strategic Plan means a strategy or course of action developed and 
agreed to by the nominating local government(s) and state(s) and 
submitted in partial fulfillment of the application requirements for an 
Empowerment Zone, Enterprise Community, or a Renewal Community, 
designated pursuant to 24 CFR parts 597, 598 or 599.

D. Program Background

    HUD has multiple programs that are intended to stimulate economic 
and community development and promote economic revitalization of 
distressed areas, and which can be effectively employed to address and 
remedy brownfields conditions. Primary among HUD's resources are the 
Community Development Block Grant (CDBG) program and the Section 108 
loan guarantee program.
    1. CDBG. The CDBG program provides grant funds by formula to local 
governments (either directly or through states) to carry out community 
and economic development activities ($3.7 billion appropriated in 
FY2007). The Section 108 loan guarantee program provides CDBG-eligible 
communities with a source of financing for economic development, public 
facilities, and other eligible large-scale physical development 
projects. HUD is authorized pursuant to Section 108 to guarantee notes 
issued by CDBG entitlement communities and non-entitlement units of 
general local government eligible to receive funds under the CDBG 
States' program, as well as certain non-entitlement units of general 
local government in the state of Hawaii funded under 24 CFR part 570, 
subpart F. The Section 108 program is subject to the regulations 
applicable to the CDBG program at 24 CFR part 570 as described in 24 
CFR part 570, subpart M.
    2. Section 108 Loan Guarantees. The loan guarantee authority for 
the Section 108 program is estimated at $137 million in loan guarantee 
authority for FY2007.
    Under this program, communities (states and insular areas, as 
applicable) are required to pledge their continuing CDBG allocations as 
security for loans guaranteed by HUD. The Section 108 program, however, 
does not require CDBG funds to be escrowed for loan repayment (unless 
such an arrangement is specifically negotiated as loan security and 
included in the applicable ``Contract for Loan Guarantee Assistance''). 
This means that a community can ordinarily continue to spend its 
existing allocation for other CDBG purposes, unless needed for loan 
repayment.
    3. Additional Security for Section 108 Loan Guarantees. Applicants 
should be aware of the need to provide additional security for the 
Section 108 loan guarantee pursuant to 24 CFR 570.705(b)(3). Although a 
public entity (and the corresponding state for a state-assisted non-
entitlement entity) is required by the Act to pledge its current and 
future CDBG allocations as security for the Section 108 loan guarantee, 
it will usually be required to furnish additional collateral. In most 
cases, the additional collateral consists (in whole or in part) of the 
asset financed with the Section 108 loan funds (e.g., a loan made to a 
business as part of an economic development project and the related 
mortgage from the business). Applications proposing uses for BEDI 
funding that directly enhance the value of the asset(s) securing the 
Section 108 loan will help ensure that the project-based asset(s) will 
satisfy the additional collateral requirements.
    4. Integration of Other Government Economic Development and 
Brownfields Programs. HUD encourages local governments which are 
assisted by (a) other federal or state economic development programs, 
(b) other federal brownfields programs (e.g., the federal Brownfields 
Showcase Community program, EPA's Assessment, Revolving Loan Fund 
Cleanup or Grant programs, or (c) state-supported brownfields programs 
to integrate efforts arising from those programs in developing projects 
for assistance under HUD's BEDI and Section 108 programs. Applicants 
should elaborate upon these

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ties in their response to the appropriate rating factors in Section 
V.A.2. of this NOFA (e.g., ``Capacity of the Applicant,'' ``Soundness 
of Approach,'' or ``Leveraging Resources''--Rating Factors 1, 3, and 4, 
respectively.)

II. Award Information

A. Available Funds

    HUD has available approximately $32.9 million for grant awards 
under this BEDI NOFA, consisting of $9.9 million through appropriations 
under the Revised Continuing Appropriations Resolution, 2007 (Pub. L. 
110-5), February 15, 2007 (these funds are authorized by Section 108(q) 
of the Act as described above) and $23 million of deobligated and 
recaptured funds from previous BEDI awards. If any additional funds 
become available for the BEDI program during FY2007, including through 
the further deobligation and recapture of previous BEDI awards, HUD may 
either fund additional applicants in accordance with this NOFA, or may 
add these funds to funds available for future competitions pursuant to 
Section 108(q) of the Act.

B. Maximum Award

    The maximum amount of a BEDI award under this competition is $2 
million per project. An application in excess of $2 million will be 
reduced to the extent HUD determines that such a reduction is 
appropriate and the project remains feasible.

C. Limitations on Grant Amounts

    1. Ratio of Section 108-Guaranteed Loan to BEDI Grant. HUD expects 
to approve BEDI grant amounts for approvable applications with a range 
of ratios of BEDI grant funds awarded to new Section 108-guaranteed 
loan commitments for the same project, but the minimum ratio must be 
$1.00 of Section 108-guaranteed loan commitments for every $1.00 of 
BEDI grant funds in order to receive consideration for funding. Section 
V.A.2.d., Rating Factor 4 (Leveraging of Resources), provides 
additional information on the required ratio of BEDI to Section 108 
funds.
    2. Reduction or Deobligation of BEDI Grant Award.
    a. After selection, but prior to grant award, if HUD determines 
that an application can be funded at a lesser BEDI grant amount than 
requested and still be feasible and consistent with the proposed plan 
and the purposes of the Act, it reserves the right to reduce the amount 
of the BEDI award and/or increase the required Section 108 loan 
guarantee commitment.
    b. In the event a BEDI grant is awarded and has been reduced below 
the original request (e.g., the application contained some activities 
that were ineligible, exceeded the $2 million cap, or there were 
insufficient funds to fund the last competitive application at the full 
amount requested), the applicant will be required to modify the project 
plans and application to conform to the terms of HUD approval before 
HUD will execute a grant agreement.
    c. HUD also may proportionately reduce or deobligate the BEDI award 
if a grantee does not submit an approvable Section 108 loan guarantee 
application, issue Section 108-guaranteed obligations, and receive loan 
guarantee proceeds on a timely basis (including any extension 
authorized by HUD) in the amount required by the BEDI/108 leveraging 
ratio, which will be approved by HUD as a special condition of the BEDI 
grant award (see Section IV.B.1.c.(2) of this NOFA).
    3. Increased Request for Section 108 Loan Guarantee Assistance. In 
the case of a requested increase in guarantee assistance for a project 
with a previously approved Section 108 loan guarantee commitment (as 
further discussed in Section IV.B.1.(4)), the BEDI assistance approved 
will be based only on the additional amount of Section 108 loan 
guarantee assistance requested.

III. Eligibility Information

A. Eligible Applicants

    Any public entity eligible to apply for Section 108 loan guarantee 
assistance in accordance with 24 CFR 570.702, including Guam, the 
Northern Marianas, American Samoa, and the Virgin Islands for FY2007, 
may apply for BEDI grant assistance under Section 108(q). Eligible 
applicants are CDBG entitlement units of general local government and 
non-entitlement units of general local government eligible to receive 
loan guarantees under 24 CFR part 570, subpart M. Urban Counties, as 
defined at 24 CFR 570.3 and 570.307, are eligible applicants for BEDI 
funds; units of general local government that participate in an Urban 
County program are not independently eligible applicants. For non-
entitlement applicants other than those subject to 24 CFR part 570, 
subpart F (which applies only to the state of Hawaii), applicants are 
required to provide evidence in the BEDI application from an authorized 
official of the state agency responsible for administering the State 
CDBG program stating that it supports the related Section 108 loan with 
a pledge of its CDBG allocations pursuant to the requirements of 24 CFR 
570.705(b)(2). Such evidence must be provided by form HUD-40122, titled 
``SECTION 108 LOAN GUARANTEE: State Certifications Related to Non-
entitlement Public Entities.'' This form may be downloaded as part of 
the application package from the Internet at https://www.grants.gov/
applicants/apply_for_grants.jsp. Non-entitlement public entities in 
49 states and Puerto Rico are eligible to participate in the Section 
108 and BEDI programs, with assistance of the state's or commonwealth's 
pledge of CDBG allocations. The non-entitlement entities in Hawaii are 
able to make their own repayment pledge since they receive a fixed 
amount of annual CDBG funding.

B. Cost Sharing or Matching

    As described further in Section V.A.2.d. of this NOFA, under Rating 
Factor 4 (Leveraging of Resources), applications which evidence a 
greater level of other funds firmly committed to the BEDI project will 
receive more points under Rating Factor 4. In addition, a BEDI grant 
must be used with at least an equal amount of Section 108 loan 
guarantee proceeds for the same brownfields economic development 
project.

C. Other

1. Eligible Activities and National Objectives
    a. Applicants for BEDI grant funds and Section 108 loan guarantee 
funds must demonstrate that funds will be used for activities listed at 
24 CFR 570.703 and carried out as part of a BEDI project as defined in 
this NOFA and meet the CDBG requirements at 24 CFR Sections 570.200, 
570.208 and 570.209, as applicable. All applicants must clearly 
identify in their narrative response to Rating Factor 3 (Soundness of 
Approach) in Section V.A.2.c. of this NOFA each of the eligible 
activities that will be carried out under 24 CFR 570.703.
    With respect to BEDI projects that include a housing component, 
applicants are cautioned that the eligible activities at 24 CFR 570.703 
do not allow BEDI and Section 108 funds to be used to finance the costs 
of the construction of housing, unless such construction is undertaken 
by a Community Based Development Organization (CBDO) or a not-for-
profit organization serving the development needs of a community in a 
non-entitlement area as part of a community economic development 
project, in accordance with 24 CFR 570.703(i)(2) and 24 CFR 
570.204(a)(2). Provisions of

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24 CFR 570.703(j) that authorized the use of BEDI or Section 108 funds 
for housing construction have expired and are no longer applicable, as 
the statute referenced therein is no longer in effect. For projects 
that include the construction of housing, BEDI and Section 108 funds 
may be used to finance activities necessary to construct such housing, 
such as acquisition and related demolition and clearance on the 
acquired site, site improvements, public facilities and other eligible 
activities subject to each of the eligible activity provisions at 24 
CFR 570.703; and
    b. Applicants must demonstrate that each activity assisted with 
Section 108 loan guarantee or BEDI funds will meet a national objective 
of the CDBG program as described in 24 CFR 570.208. All applicants must 
clearly identify in their narrative response to Rating Factor 3 
(Soundness of Approach) in Section V.A.2.c. of this NOFA, the CDBG 
national objective to be achieved by the proposed project and provide 
the appropriate CDBG national objective regulatory citation found at 24 
CFR 570.208. Applicants must also address, when applicable, how the 
proposed activities will comply with the public benefit standards of 
the CDBG program as reflected in the regulation at 24 CFR 570.209.
    c. A grantee's aggregate use of its CDBG funds, including any 
Section 108 loan guarantee proceeds and Section 108(q) (BEDI) funds 
provided pursuant to this NOFA, must comply with the CDBG primary 
objective requirements as described in Section 101(c) of the Act and 24 
CFR 570.200(a)(3) for entitlement grantees, or 24 CFR 570.484 in the 
case of a recipient under a state's program, requiring that, over the 
period of time specified in the applicant's (or State's) CDBG 
certification, not less than 70 percent of the aggregate expenditures 
of CDBG funds be expended for activities benefiting low- and moderate-
income persons under the criteria of 24 CFR 570.208(a) or 570.208(d)(5) 
or (6).
2. Brownfields Redevelopment
    As described further in Section V.A.2.c. of this NOFA, in the 
narrative response to Rating Factor 3 (Soundness of Approach) 
applicants must: (1) Describe the nature and extent of the brownfields 
problem(s) actually or potentially affecting the site and/or 
structure(s) already on the site; and (2) how the proposed activities 
will contribute to redevelopment of the site and/or structures.
3. General Section Threshold Requirements
    a. Applicants should carefully review the threshold requirements 
found in Section III.C. of the General Section that could result in the 
failure to receive funding under this program. Applicants for BEDI 
grant funds must comply with the statutory, regulatory, threshold, and 
public policy requirements listed in the General Section, except as 
otherwise specifically provided in this NOFA. In particular, applicants 
should carefully review those provisions that could result in the 
failure to receive funding, including the DUNS Number Requirement, 
Compliance with Fair Housing and Civil Rights Laws, provisions relating 
to Delinquent Federal Debts, and the Name Check Review.
    b. The Dun and Bradstreet Universal Numbering System (DUNS) Number 
Requirement. Refer to the General Section for information regarding the 
DUNS requirement. You will need to obtain a DUNS number to receive an 
award from HUD. You will also need a DUNS number to complete your 
electronic application as it is a mandatory field on the electronic 
application. The Grants.gov registration also requires use of the DUNS 
number which is used to match with Central Contractor Registration 
(CCR) and Internal Revenue Service Records. Please see the General 
Section for more information. If there is a discrepancy between the 
DUNS number, CCR and IRS information, the Grants.gov registration 
process cannot be completed until the discrepancy is cleared. 
Applicants should immediately start or update their Grants.gov 
registration with the publication of this NOFA.
    c. The maximum number of points to be awarded under this NOFA is 
104. To be eligible for funding, a BEDI application must obtain a total 
score of at least 75 points. All applications meeting program 
requirements and General Section thresholds will be rated under the 
selection criteria provided in Section V.A.2. below.
    d. Federal Debt. In addition to the requirements in the General 
Section, applicants at the time of award that have Federal debt or are 
in default of an agreement with the 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.
4. Other Program Requirements
    a. BEDI Funding Request. A single BEDI application must contain a 
request for funds for a single BEDI/108 project. The application must 
propose activities expected to result in redevelopment of one or more 
brownfields sites. An applicant may submit an additional application 
for each additional unrelated BEDI/108 project, but in no event will 
HUD rate and rank more than one BEDI project per application.
    b. Related Section 108 Loan Guarantee Request. The request for 
Section 108 Loan Guarantee assistance must provide for a minimum ratio 
of $1.00 of requested Section 108 loan guarantee commitments for every 
$1.00 of BEDI grant funds requested, or a higher ratio, as needed for 
the project.
    c. Nonentitlement Applications. Applications submitted by 
nonentitlement public entities (except for those in Hawaii and the 
insular areas which now receive fixed amounts of CDBG funds annually) 
must provide for the state's or commonwealth's certification agreeing 
to pledge its CDBG allocations to receive funding consideration, as 
evidenced by form HUD-40122. See the General Section of the SuperNOFA 
instructions for submission of third party documents.
    d. Narrative Response to Rating Factors. Each BEDI application must 
provide narrative statements in response to each of the rating factors 
below in Section V.A.2. of this NOFA.
    e. Time Frame for Submission of Section 108 Applications. All 
applications for Section 108 Loan Guarantee Assistance required for 
approved BEDI projects must be submitted within 60 days of written 
notice of BEDI selection, as provided for in Section IV.B.1.c.(2) of 
this NOFA.
    f. HUD Environmental Requirements. Beginning with the submission of 
a BEDI application through and after HUD's award of BEDI grant funds, 
pursuant to 24 CFR 570.604, each project or activity assisted under 
this program is subject to the provisions of 24 CFR part 58. This 
includes limitations on the commitment of HUD and non-HUD funds by the 
BEDI applicant or grantee and Section 108 public entity, as well as 
other participants in the development process, prior to the completion 
of environmental review, notification, and release of funds. Neither 
grant nor loan funds can be disbursed by HUD until a request for 
release of funds is submitted and the requirements of 24 CFR part 58 
have been met. All public entities, including non-entitlement public 
entities, shall submit the request for release of funds and related 
certification, required pursuant to 24 CFR part 58, to the appropriate 
HUD

[[Page 54328]]

field office for each project to be assisted.
    g. Compliance with Environmental and Other Laws. An award of BEDI 
funding does not, in any way, relieve the applicant or third party 
users of BEDI funds from compliance with all applicable federal, state, 
and local laws and regulations, particularly those addressing the 
environment. Applicants are further advised that HUD may require 
evidence that any project involving remediation has been or will be 
carried out in accordance with applicable law, including voluntary 
clean up programs.
    h. CDBG Program Regulations. In addition to 24 CFR 570.701 
(Definitions), 570.702 (Eligible applicants), and 570.703 (Eligible 
activities), the CDBG regulatory requirements cited in 24 CFR 570.707, 
including subparts J (Grant Administration), K (Other Program 
Requirements), and O (Performance Reviews), also govern the use of BEDI 
funds, as applicable.
    i. Obligation to Affirmatively Further Fair Housing. All BEDI 
grantees are obliged to affirmatively further fair housing, even when 
the proposed activities do not appear to be directly related to 
housing. Therefore, applicants that propose to use BEDI funds must 
include in their applications an explanation of how they propose to 
further fair housing opportunities for persons on the basis of race, 
color, national origin, sex, religion, familial status, or disability. 
Applicants should respond to this requirement in Section V.A.2.c. of 
this NOFA, under Rating Factor 3, subfactor (1)(b). Affirmative 
activities include, but are not limited to: Initial and periodic 
assessments of the extent to which affordable and accessible housing 
opportunities are provided or denied to persons by race, color, 
national origin, sex, religion, familial status, or disability; 
outreach to persons in underserved population groups or advocacy 
organizations representing such persons; affirmative fair marketing of 
job or housing opportunities; furthering housing choice; addressing 
environmental justice concerns; ensuring nondiscrimination and 
accessibility for the physically handicapped; ensuring consistency with 
the consolidated plan; or ensuring that employment, housing and other 
benefits of the BEDI grant are made available to those individuals and 
families living at or near the brownfields site prior to its 
redevelopment.
    j. Policy Priorities. Applicants are reminded of the Department's 
Policy Priorities for FY2007 found in Section V.B. of the General 
Section, several of which apply to this NOFA, as described in Section 
V.A.2.e. below, under Rating Factor 5 (Achieving Results and Program 
Evaluation).
    k. Ineligible Sites. Applicants must propose sites that currently 
meet the definition of brownfields in this program NOFA. Applicants may 
not propose projects on sites which are: (i) Listed or proposed to be 
listed on EPA's National Priority List (NPL); (ii) subject to 
unilateral administrative orders, court orders, administrative consent 
orders or judicial consent decrees issued or entered into by parties 
under the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (CERCLA), as amended; or (iii) subject to the 
jurisdiction, custody, or control of the United States Government. In 
order to be eligible to receive an award under this program, applicants 
will be required in Section V.A.2.c., Rating Factor 3, Soundness of 
Approach, to indicate that the proposed BEDI project will not be 
undertaken at an ineligible site as provided herein.
    l. Prior Approved Section 108-Guaranteed Loans. BEDI grant 
assistance cannot be used to leverage a Section 108 loan guarantee 
approved prior to the date of HUD's announcement of a BEDI grant 
pursuant to this NOFA, unless the applicant requests to deobligate 
previously approved commitment authority as provided in Section 
IV.B.1.c.(5) of this NOFA. In no event, however, may a previously 
approved Section 108 commitment to be used with a prior BEDI or EDI 
award be subject to such deobligation.
    m. Use of Section 108 Solely for Security. A BEDI award will not be 
made if the Section 108 request contained in the application (See 
Section IV.B.1.c. of this NOFA) calls for the use of the Section 108-
guaranteed obligation solely as security for other financing on the 
project.

IV. Application and Submission Information

A. Addresses To Request Application Package

    1. Copies of the published NOFAs and application forms for HUD 
programs announced through NOFA may be downloaded from the Grants.gov 
Web site at https://www.grants.gov/find_grant_opportunities.jsp; if 
you have difficulty accessing the information you may receive customer 
support from Grants.gov by calling their Support Desk at (800) 518-
GRANTS, or sending an e-mail to support@grants.gov. The operators will 
assist you in accessing the information. The hours of the Support Desk 
are 7 a.m. to 9 p.m. Eastern time.
    2. Satellite Broadcasts. HUD will hold informational broadcasts via 
satellite for potential applicants to learn more about the BEDI program 
and the preparation of BEDI application(s). For more information about 
the date and time of the broadcast, consult the Web site https://
www.hud.gov/offices/adm/grants/nofa07/snbroadcast.doc.

B. Content and Form of Application Submission

1. Content of Application
    A complete application for a BEDI grant under this NOFA must 
contain the items listed below. Applicants by signing the SF-424 are 
also agreeing to the Certifications and Assurances found in the General 
Section and this NOFA. All forms required for application submission 
can be found in the application and instruction downloads for the BEDI 
program on https://www.grants.gov/applications/apply_for_grants.jsp.
    a. Checklist and Submission Table of Contents indicating the 
submission items included in the application can be found in Section 
VIII, Appendix A, of this NOFA. Applicants are not required to submit 
the Checklist but are encouraged to review it to ensure that they have 
submitted a complete application.
    b. EDI/BEDI/Section 108 Funding Eligibility Statement. A completed 
EDI/BEDI/Section 108 Funding Eligibility Statement (Exhibit D of form 
HUD-40123).
    c. Request for Loan Guarantee Assistance. A request for loan 
guarantee assistance under Section 108, with the project name clearly 
identified (and the same name of the BEDI project being applied for), 
as further described below. Full application requirements for the 
Section 108 program are found at 24 CFR 570.704. Non-entitlement 
applicants (except those in Hawaii and the insular areas) must 
accompany this request with the State Certifications Related to 
Nonentitlement Public Entities (form HUD-40122) in order to be 
considered for BEDI funding.
    The request for loan guarantee assistance may take any of the five 
forms defined in paragraphs (1), (2), (3), (4), or (5) below. 
Notwithstanding the form of the request for new Section 108 loan 
guarantee assistance, the applicant must include citations to the 
specific regulatory subsection supporting activity eligibility and 
National Objectives compliance for the Section 108 funds described in 
the application.

[[Page 54329]]

(See Section III.C.1. of this NOFA.) Both the BEDI and Section 108 
funds must be used in conjunction with the same BEDI project. 
Applicants are encouraged to consult with HUD's Financial Management 
Division in Headquarters CPD, at (202) 708-1871, before submission of 
108 and/or BEDI applications if unsure of CDBG national objectives, 
eligibility of activities, program benefits citations and the tests 
thereof. The request for new Section 108 guarantee assistance may be 
presented in any of the following ways:
    (1) Concurrent Application Submitted Under Separate Cover. A 
complete application for a new Section 108 loan guarantee(s), including 
the documents listed at 24 CFR 570.704(b), must be submitted under 
separate cover in accordance with the procedures in Section IV.F.3 
below. Any full application for loan guarantee assistance under Section 
108 must also be submitted to the appropriate HUD field office 
concurrently with its submission to Headquarters. As described further 
in Section V.A.2.c., in Rating Factor 3 (Soundness of Approach), two 
points will be awarded for the submission of a full Section 108 loan 
guarantee application with a BEDI application. Please refer to section 
IV.F.3. of this NOFA for further explanation of how to properly submit 
a concurrent Section 108 loan guarantee application.
    (2) Subsequent Application. A brief description (not to exceed 
three pages) of the project to be applied for in a subsequent new 
Section 108 loan guarantee application(s). Such a 108 application(s) 
shall be submitted within 60 days of written notice of BEDI selection, 
with HUD reserving the right to extend such period on a case-by-case 
basis where HUD determines there is evidence of good cause. BEDI awards 
will be conditioned on approval of actual Section 108 loan commitments 
and loan guarantee proceeds in a specific ratio of BEDI funds to 
Section 108 funds as approved by HUD in the BEDI award. The description 
provided in the BEDI application must be sufficient to support the 
basic eligibility of the proposed project and activities for Section 
108 assistance. (See Section III.C.1. of this NOFA.)
    (3) Pending, Unapproved Application. A request to use the BEDI 
grant award in conjunction with a pending, unapproved Section 108 loan 
guarantee application. The request must identify the project name 
associated with the pending application and the date of submission. Any 
proposed amendment to the pending Section 108 application must be 
submitted under separate cover, as provided for in Section IV.F.3. 
below. An applicant's request to use the BEDI award in conjunction with 
a pending application shall be deemed by HUD to constitute a request to 
suspend separate processing of the Section 108 application. The Section 
108 application will not be approved until, on, or after the date of 
the related BEDI award.
    (4) Increase to a Project Assisted Under a Previously Approved 
Application. A request for Section 108 loan guarantee assistance 
(analogous to Section IV.B.1c.(1) or (2) above of this section) may 
propose new Section 108 guarantee assistance in addition to the amount 
of Section 108 assistance for a project assisted under a previously 
approved Section 108 application. However, any amount of Section 108 
loan guarantee authority approved before HUD's announcement of a BEDI 
grant for the same project is not eligible to be used in conjunction 
with a BEDI grant under this NOFA.
    (5) Deobligation of Previously Approved Section 108 Authority Plus 
a New Request. A request to deobligate a previous commitment of Section 
108 loan guarantee authority to the applicant that is no longer to be 
used by the applicant (except for an amount required as a condition of 
a previously approved BEDI or EDI award), combined with a new request 
or application for Section 108 loan guarantee assistance. Such request 
or application may be a full application as provided for in paragraph 
(1) above, a request for 108 assistance submitted within 60 days as 
provided for in paragraph (2) above, a pending unapproved application 
as provided for in paragraph (3) above, or an increase to a project 
assisted under a previously approved application as provided in 
paragraph (4) above.
    (6) In no event may a Section 108 loan guarantee amount that is 
required to be used in conjunction with a previously approved BEDI or 
EDI grant award as of the date of the submission of the application, 
whether or not the Section 108 loan guarantee has been approved as of 
the date of this NOFA, be used in conjunction with a new BEDI award 
under this NOFA. For example, if a public entity has a previously 
approved Section 108 loan guarantee commitment of $12 million, even if 
none of the funds have been utilized, or if the public entity had 
previously been awarded a BEDI grant of $1 million and had agreed to 
submit a Section 108 loan application for $10 million in support of 
that BEDI grant, the public entity's application under this NOFA must 
propose to increase the amount of its total Section 108 loan guarantee 
commitments beyond those amounts to which it has previously agreed 
(i.e., the $12 million or $10 million Section 108 loan guarantee 
commitments in this example).
    d. Narrative Responses to Factors for Award (not to exceed 15 
double-spaced, 8\1/2\ x 11 inch single-sided pages, with one-inch 
margins on all sides, for all responses):
    (1) Rating Factor 1: Capacity and Relevant Organizational 
Experience. Provide a narrative indicating the capacity of the 
applicant's organization and staff and any known third parties to 
perform the work for which it is requesting funding.
    (2) Rating Factor 2: Need Statement Identifying the Level of 
Distress/Extent of the Problem. Provide a narrative statement including 
any documentation supporting the statement of need, accompanied by a 
completed Exhibit A of form HUD-40123. (See the General Section for 
instructions for submitting documentation found in the download 
instructions.)
    (3) Rating Factor 3: Soundness of Approach. Include the CDBG 
eligible activities, the CDBG National Objective, the source and nature 
of the present or potential environmental contamination, the budget, 
and the time frame for conducting activities and providing project 
benefits to address the needs identified in Rating Factor 2 in the 
narrative response, accompanied by Exhibits B and C of form HUD-40123.
    (4) Rating Factor 4: Leveraging Resources. The response to this 
factor should include any letters of firm commitment as defined in 
Section I.C. of this NOFA, and any evidence of financial capacity or 
CDBG resolutions, as appropriate. Such letters, evidence or resolution 
must be submitted under the procedures provided for in Section 
IV.B.3.c. of the General Section.
    (5) Rating Factor 5: Achieving Results and Program Evaluation. 
Provide a narrative response to this factor, accompanied by the logic 
model provided in the instructions download for the BEDI application on 
Grants.gov (Form HUD-96010) and, if applicable, form HUD-27300, 
relating to the removal of regulatory barriers to affordable housing, 
with required documentation.
2. Forms, Certifications, and Assurances
    a. In addition to any forms submitted in response to Section 
IV.B.1. above, the following forms and certifications must also be 
submitted in accordance with the General Section:
    (1) Application for Federal Assistance (SF-424);
    (2) Applicant/Recipient Disclosure/Update Report, HUD-2880 (``HUD

[[Page 54330]]

Applicant Recipient Disclosure Report'' on Grants.gov); and,
    (3) Certification of Consistency with RC/EZ/EC-II Strategic Plan, 
HUD-2990, if applicable;
    (4) Certification of Consistency with the Consolidated Plan (HUD-
2991) if applicable;
    (5) Disclosure of Lobbying Activities (SF-LLL), if applicable;
    (6) Acknowledgement of Application Receipt (HUD-2993) (For use with 
paper application submissions);
    (7) You Are Our Client! Grant Applicant Survey (HUD-2994-A) 
(Optional);
    (8) Program Outcome Logic Model (HUD-96010);
    (9) Questionnaire for HUD's Initiative on Removal of Regulatory 
Barriers (HUD-27300) (HUD Communities Initiative Form on Grants.gov) 
with supporting documentation or URL references;
    (10) Facsimile Transmittal (HUD-96011) (Facsimile Transmittal Form 
on Grants.gov) (For use with electronic applications to provide third 
party letters and other documentation in accordance with the 
instructions found in the General Section);
    (11) Section 108 Loan Guarantee (State Certifications Related to 
Non-entitlement Public Entities) (HUD-40122), if applicable; and
    (12) Responses to BEDI Application Rating Factors (HUD-40123, 
Exhibits A through D).

C. Submission Dates and Times

1. Application Submission Date
    Applications submitted through https://www.grants.gov/applicants/
apply_for_grants.jsp must be received and validated by Grants.gov no 
later than 11:59:59 p.m. Eastern time on the application deadline date. 
If an applicant receives a waiver of the electronic application 
requirement, the paper application must be received by the application 
deadline date. The approval to submit a paper copy application will 
provide detailed submission instructions. Paper applications will not 
be accepted unless the applicant has received a waiver of the 
electronic submission requirement. Please see the General Section for 
further information on application submission and timely receipt 
requirements.
    Be sure to provide a Project Name in Line 11 of the SF-424 
(Application for Federal Assistance), and all references to the related 
Section 108 application should use the same project title. Be sure to 
complete the SF-424 cover page first, as the information from the cover 
page will be pre-populated. In addition a brief (one or two paragraph) 
description of all the activities (not just those to be funded with 
BEDI and 108 funds) comprising the proposed project should be provided, 
preceding the narrative statements in response to the Rating Factors. 
This project description does not count against the 15-page overall 
limitation.
    Applicants should be sure to use the applicant legal name as used 
when registered with DUN and Bradstreet for the DUNS number, CCR and 
IRS, on the BEDI and Section 108 Loan applications. If there is a 
discrepancy in the legal name registered the applicant must resolve the 
discrepancy prior to submitting an application.
2. Proof of Timely Submission
    Please see Section IV.C.4. of the General Section of the SuperNOFA 
for information regarding proof of timely submission.

D. Intergovernmental Review

    BEDI is not subject to the provisions of Executive Order 12372, 
``Intergovernmental Review of Federal Programs.''

E. Funding Restrictions

1. Repayment of Section 108 Principal
    The planned use of BEDI funds for the specific purpose of repayment 
of the principal amount of a Section 108-guaranteed loan is not an 
eligible activity under 24 CFR. 570.703 and therefore should not be 
proposed in a BEDI application. Under the ``debt service reserve'' 
eligible activity at 24 CFR 570.703(k), however, the planned use of a 
limited amount of BEDI funds for the repayment of the principal of a 
Section 108-guaranteed loan is permissible if justified and approved by 
HUD under a particular application. Such a debt service reserve may be 
justified in the context of a loan loss reserve set up to support a 
``loan pool'' consisting of a number of smaller third party loans. For 
example, the corresponding principal amount of the Section 108 loan 
might be repaid from a debt service reserve when a third party loan 
defaults and liquidation of security for the third party loan by or on 
behalf of the Section 108 borrower/BEDI grantee does not yield enough 
cash to redeem or defease the amount of Section 108 principal 
corresponding to the defaulted third party loan. A debt service reserve 
may also be proposed and set up in an amount reasonable to pay 
principal and/or interest on a Section 108-guaranteed loan for a 
limited period, such as the start up period for an assisted business, 
or a construction period, when the cash flow resulting from the primary 
Section 108 or BEDI-funded activity would not be sufficient to support 
repayment. HUD requires the applicant to provide information sufficient 
to support the reasonableness of the amount of a debt reserve in 
relation to its purpose. For any Section 108- and BEDI-assisted 
project, HUD will have rights under the Section 108 Contract for Loan 
Guarantee Assistance to use undisbursed BEDI funds, together with other 
pledged CDBG funds, to make payment on, or to defease, the Section 108 
loan if HUD deems that action necessary in order to avoid the need for 
HUD to make a payment under its Section 108 loan guarantee.
2. Subordination of Section 108 Obligations
    Section 108 loan obligations may not be subordinated, directly or 
indirectly, to federally tax exempt obligations. Pursuant to Office of 
Management and Budget (OMB) Circular A-129 (Rev.) Appendix A, Sections 
II.2.c. and d., (Policies for Federal Credit Programs and Non-Tax 
Receivables), Section 108-guaranteed loan funds may not, directly or 
indirectly, support federally tax-exempt obligations.
3. Remediation by Responsible Parties
    BEDI grant funds shall not be used in any manner by grantees to 
provide public or private sector entities with funding to remediate 
conditions caused by their own actions, where the public entity (or 
other known prospective beneficiary of the proposed BEDI grant) has 
been determined responsible for causation and remediation by order of a 
court or a federal, state, or local regulatory agency, or is 
responsible for the remediation as part of a settlement approved by 
such a court or agency. Applicants will be required under Rating Factor 
3, Soundness of Approach, to indicate that the proposed BEDI project 
will not be used to provide such assistance.
4. Denial of Funding for Lack of Prior Performance
    HUD may deny funding consideration to all applicants that fail to 
submit a full and complete Section 108 loan application pursuant to 24 
CFR 570.704(b) in connection with a prior award of BEDI or competitive 
EDI grants on or before the application submission deadline under this 
NOFA.

F. Other Submission Requirements

    1. Application Submission and Receipt Procedure. HUD requires

[[Page 54331]]

applicants to submit applications electronically through https://
www.grants.gov/applicants/apply_for_grants.jsp. Applicants must 
submit their applications electronically via the Web site https://
www.grants.gov/applicants/apply_for_grants.jsp unless you request and 
are granted a waiver to the electronic submission requirements. This 
site has easy to follow step-by-step instructions that will enable you 
to apply for HUD assistance.
    Please read the General Section carefully and completely for the 
submission and receipt procedures for all applications because failure 
to comply may disqualify your application.
    2. Waiver of Electronic Submission Requirements. Applicants 
interested in applying for funding under this NOFA must submit their 
applications electronically or request a waiver from the Office of 
Community Planning and Development. Applicants should submit their 
waiver requests in writing by e-mail. Waiver requests must be submitted 
no later than 15 days prior to the application deadline date and should 
be submitted to David Kaminsky at David--Kaminsky@hud.gov. Instructions 
regarding the number of copies to submit and the address where they 
must be submitted will be contained in any approval of the waiver 
request. Paper submissions must be received at the appropriate HUD 
office(s) no later than the deadline date. Please refer to Section 
IV.F.of the General Section for additional instructions on how to seek 
a waiver to the electronic submission requirement.
    3. Submission of Concurrent Section 108 Application Under Separate 
Cover. Applicants that apply via Grants.gov should submit the Section 
108 Loan Guarantee application using the mailing instructions below.
    a. The Section 108 Loan Guarantee application should have the same 
Project Title in Box 11 of the SF-424 as the related BEDI project.
    b. Concurrent Section 108 Application deadline date. Applications 
from applicants choosing to submit a concurrent and complete Section 
108 application as provided for in Section IV.B.1.c. of this NOFA 
above, must be received no later than the BEDI application deadline 
date, to the addresses shown below, in order to receive points under 
Section V.A.2.c., Rating Factor 3, of this NOFA.
    The required number of copies should be sent to the locations 
indicated below. If HUD receives at least one completed concurrent 
Section 108 application at either HUD Headquarters or the appropriate 
HUD Field Office, HUD will utilize the complete application for its 
review purposes, provided it meets the deadline and timely submission 
requirements.
    c. Proof of Timely Submission of concurrent Section 108 
applications. Proof of timely submission of a concurrent Section 108 
application in accordance with these requirements consists of the 
Certificate of Mailing (USPS Form 3817) or electronic receipt showing 
the date and time and location of the mailing, provided by the United 
States Post Office showing mailing of the application with sufficient 
time for it to be received by HUD by the application due date. In the 
case of packages submitted to HUD via DHL, FedEx, or UPS, documentary 
proof of timely submission will be the delivery service receipt 
indicating the application was submitted to the delivery service with 
sufficient time for it to be received by HUD by the application 
deadline date. Applicants using delivery services other than DHL, 
FedEx, or UPS do so at their own risk as HUD cannot guarantee delivery 
due to its Security procedures. Proof of timely submission to HUD field 
offices will be the Certificate of Mailing (USPS Form 3817) or 
electronic receipt showing the date, time and location of the U.S. 
Postal Facility or receipts from the delivery service consistent with 
the information provided above.
    Please remember that mail to federal facilities is screened and 
irradiated prior to delivery, a process that can take several days. 
Please allow ample time for your package to be delivered. If an 
application does not meet the filing requirements it will not receive 
funding consideration. If you mail your application to the wrong 
location and the office designated for receipt in accordance with these 
submission requirements does not receive it, your application will be 
considered late and not be considered for funding. HUD will not be 
responsible for directing it to the appropriate office.
    You, the applicant, must submit a complete Section 108 application 
and the required number of copies to the locations identified in this 
Program NOFA. Address and labeling requirements are listed directly 
below in Section IV.F.3.d.
    d. Address for Submitting Concurrent Section 108 Applications to 
HUD Headquarters. Submit the concurrent Section 108 application to: HUD 
Headquarters; Robert C. Weaver Federal Building; 451 Seventh Street, 
SW., Room 7251; Washington, DC 20410, Attention: BEDI/Section 108 
Application.
    When submitting the concurrent Section 108 application, please 
specify BEDI/Section 108 Application on any label or mailing container, 
and include the applicant's name, mailing address (including zip code), 
street address (if different from mailing address), and zip code, and 
voice and facsimile telephone numbers (including area code), along with 
the contact person's name, and voice and facsimile telephone numbers 
(including area code), and e-mail address, if available.
    e. Concurrent Section 108 Applications to HUD Field Offices. At the 
same time the concurrent Section 108 application is submitted to HUD 
Headquarters, an additional copy should be submitted to the Community 
Planning and Development Division of the appropriate HUD field office 
for the applicant's jurisdiction. A listing of CPD Offices and mailing 
addresses can be found on HUD's Web site at https://www.hud.gov/offices/
cpd/about/staff/fodirectors/.

V. Application Review Information

A. Criteria

1. Factors for Award Used to Evaluate and Rate Applications
    a. Response to Factors for Award. The applicant must provide in 
narrative form responses to each of the rating factors below. HUD will 
evaluate all applications for funding assistance based on the following 
factors, the responses to which demonstrate the quality of the proposed 
project or activities, and the applicant's capacity and commitment to 
use the BEDI funds in accordance with the purposes of the Act. As part 
of the application review, HUD reserves the right to contact its local 
field offices for the purpose of verifying information submitted by the 
applicant.
    b. Responses to Rating Factors 1-5. Responses to Rating Factors 1-5 
below shall not exceed 15 double-spaced, 8\1/2\ x 11 inch single-sided 
pages, with one-inch margins on all sides, for all responses.
2. Rating Factors for Award
a. Rating Factor 1: Capacity of the Applicant and Relevant 
Organizational Experience (20 Points Maximum)
    This Factor addresses the extent to which the applicant has the 
organizational resources necessary to successfully implement the 
proposed activities in a timely manner. The rating of the applicant 
will include any subcontractors, consultants, and sub-recipients that 
are firmly committed to participate in the activities described in

[[Page 54332]]

the application. In responding to subfactors (1) and (2) of this 
Factor, applications that merely summarize the amount of funds 
received, spent, or managed will receive fewer points than those 
providing specific measurable information on program activities 
undertaken, outcomes of these activities and their accomplishments. In 
rating this Factor, HUD will consider the following:
    (1) Applicant Capacity (Up to 10 points). The applicant should 
demonstrate that it has the organization, the staff, and the financial 
resources in place to implement the specific steps required to 
successfully carry out its proposed BEDI/Section 108 project. The 
applicant should offer evidence of this capacity through a description 
that includes:
    (a) Performance in the administration of its CDBG, HOME, or other 
HUD programs, including a description of successfully completed 
projects and other outcomes or accomplishments under these programs. In 
addition to citing specific projects, outcomes, or accomplishments, 
CDBG entitlement recipients must also indicate the extent to which the 
applicant has met the HUD standard that the total amount of its 
undisbursed entitlement grant funds may not be more than 1.5 times the 
entitlement grant amount for the current program year (see 24 CFR 
570.902(a)(1)(i)). All applicants must also identify any unresolved 
monitoring or audit findings by HUD with respect to the applicant's 
administration of HUD programs.
    (b) Performance, if any, in carrying out economic development 
projects similar to that proposed, including brownfields economic 
development or redevelopment projects, if any, and if applicable, the 
ability to conduct prudent underwriting;
    (c) If an applicant has received a federal Renewal Community/
Empowerment Zone/Enterprise Community designation (including Enhanced 
Enterprise Community (EEC) designation), it must provide information on 
the status of its capacity to achieve state and local commitments 
identified in its local implementation plan, including maximizing the 
federal tax benefits made available. Applicants that have been 
designated as a Renewal Community (RC), Empowerment Zone (EZ), or 
Enterprise Community (EC/EEC) must respond to this subfactor even if 
the proposed brownfields economic development project is not to be 
located within the boundaries of the designated RC/EZ/EC-II; and
    (d) An applicant that has previously received a BEDI or a 
competitive EDI grant award or, within the past five years, a Section 
108-guaranteed loan commitment, must describe the status of the 
implementation of those project(s) assisted with any BEDI or 
competitive EDI funds or with any Section 108-guaranteed loan funds so 
approved within the last five years. An applicant must address any 
delays that have been encountered and the actions it is taking to 
overcome any such delays in carrying out the project(s) in a timely 
manner.
    If HUD has not applied the performance standard applicable to all 
previous BEDI grantees referenced in Section III.C.1.c., then for any 
such previously funded BEDI or competitive EDI grant projects, or for 
those Section 108-guaranteed loan projects committed within the past 
five years, HUD will award more rating points for applications 
providing evidence of achievement of specific measurable outcomes in 
carrying out approved activities funded with such guaranteed loan or 
grant funds.
    If any of the rating criteria listed under (a) through (d) above do 
not apply to an application, the rating for this subfactor (1) shall be 
based solely upon the other applicable criteria. If the applicant has 
no prior relevant experience, the rating for this Factor shall be based 
on the capacity of its partner(s), if any, as stated below.
    (2) Partner Capacity (Up to 10 points). In response to this 
subfactor (2), the applicant should describe the experience and 
performance of subrecipients, private developers and other businesses, 
nonprofit organizations (including grassroots, faith-based and other 
community-based organizations), and other entities, if any, that have a 
role in implementing the proposed BEDI/108 program. Applicants are 
encouraged to identify specific economic development or other projects 
undertaken by each entity, which reflect the capacity of each entity to 
fulfill its responsibilities under the proposed brownfields economic 
development project, including the location, scale, and timeframe for 
completion of other relevant projects. If there are no third parties 
participating with the applicant in the proposed project, the 10 points 
available under this subfactor (2) will be added to the 10 points 
available under subfactor (1), with a maximum of 20 possible points 
then available under subfactor (1).
    Experience will be judged in terms of recent (i.e., within the past 
5 years) and successful performance of activities relevant to those 
proposed in the BEDI application. The more recent and extensive the 
positive experience, the greater the number of points that will be 
awarded for this Factor.
    In addition to the application, HUD also may rely on information at 
hand or available from public sources such as newspapers, from 
performance and/or monitoring reports, Inspector General or Government 
Accounting Office reports or findings, hotline complaints that have 
been proven to have merit, audit reports, and other reliable public 
information in rating this Factor.
b. Rating Factor 2: Distress/Extent of the Problem (15 Points Maximum)
    This Factor addresses the extent to which there is need for funding 
the proposed activities based on levels of distress in both the 
jurisdiction of the public entity that is the applicant and the 
geographic or target area that will benefit from the project. 
Applications will be evaluated on the extent to which the level of 
distress for the target area is documented and compared with national 
data and data for the jurisdiction.
    In applying this Factor, HUD will consider current