Notice of Funding Opportunity (NOFA) for Fiscal Year 2007 Demonstration Program for Elderly Housing for Intergenerational Families, 22760-22776 [E8-9042]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 73, Number 81 (Friday, April 25, 2008)]
[Notices]
[Pages 22760-22776]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-9042]



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Part VII





Department of Housing and Urban Development





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Notice of Funding Opportunity (NOFA) for Fiscal Year 2007 Demonstration 
Program for Elderly Housing for Intergenerational Families

Federal Register / Vol. 73, No. 81 / Friday, April 25, 2008 / 
Notices

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5170-N-01]


Notice of Funding Opportunity (NOFA) for Fiscal Year 2007 
Demonstration Program for Elderly Housing for Intergenerational 
Families

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice of funding availability (NOFA).

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SUMMARY: Purpose of Program: This funding opportunity is available for 
a demonstration program to provide assistance for intergenerational 
dwelling units for intergenerational families in connection with the 
supportive housing program under Section 202 of the Housing Act of 1959 
(12 U.S.C. 1701q). The purpose of the program is to expand the supply 
of intergenerational dwelling units for very low-income grandparent(s) 
or relative(s) heads of household 62 years of age or older raising a 
child.

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development.
    B. Funding Opportunity Title: Demonstration Program for Elderly 
Housing for Intergenerational Families.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: FR-5170-N-01; the OMB Approval 
Number is 2502-0571.
    E. Catalog of Federal Domestic Assistance Number: 14.317. 
Demonstration Program for Elderly Housing for Intergenerational 
Families.
    F. Dates: The application deadline is on or before July 2, 2008. 
Applications must be received and validated by Grants.gov no later than 
11:59:59 p.m. eastern time on the application deadline date. Please be 
sure to read the General Section for electronic application submission 
and receipt requirements.
    G. Optional, Additional Overview Content Information:
    1. Purpose of the Program. The purpose of this program is to 
provide assistance for a demonstration program to expand the supply of 
intergenerational dwelling units for very low-income grandparent(s) or 
relative(s) heads of households 62 years of age or older raising a 
child who is not more than 18 years of age or not more than 19 years of 
age and also attending school. The family must meet the age 
requirements to be eligible for an intergenerational dwelling unit.
    2. Available Funds. Funding is available for $3.96 million to 
develop housing for intergenerational families.
    3. Types of Funds. Capital Advance funding is available under this 
NOFA to cover the cost of expanding the supply of intergenerational 
housing. In addition, Project Rental Assistance Contract (PRAC) funds 
are available for Section 202 Capital Advance projects that are funded 
under this program to cover the difference between the HUD-approved 
operating costs of the project and the tenants' contribution toward 
rent (30 percent of their adjusted monthly income). PRAC funds are 
available to cover the difference between the HUD-approved operating 
costs of the project and the tenants' contribution toward rent (30 
percent of their adjusted monthly income) for private nonprofit owners 
of Section 202/8 projects for intergenerational dwelling units 
provided:
    a. Through development of buildings or projects comprised solely of 
intergenerational units; or
    b. Through the development of an annex or addition to an existing 
project assisted under Section 202 of the Housing Act of 1959 (12 
U.S.C. 1701q), that contains intergenerational dwelling units, 
including through the development of elder cottage housing opportunity 
units that are small, freestanding, barrier free, energy efficient, 
removable dwelling units located adjacent to a larger project or 
dwelling. (Converted units that already receive either Section 8 or 
PRAC will not be eligible for PRAC assistance under this NOFA).
    4. Eligible Applicants. Only private nonprofit owners of a Section 
202 project interested in applying for funding under this program 
should carefully review the detailed information listed in this NOFA.
    5. Eligible Activities. This program provides funding to private 
nonprofit owners of a Section 202 project to use only for expanding the 
supply of intergenerational dwelling units.
    6. Match Requirements. None required.

Full Text of Announcement

I. Funding Opportunity Description

    A. Program Description. This funding opportunity is available for a 
demonstration program to provide assistance for intergenerational 
dwelling units for intergenerational families in connection with the 
supportive housing program under Section 202 of the Housing Act of 1959 
(12 U.S.C. 1701q). Repayment of the funding is not required as long as 
the housing remains available for occupancy by very low-income 
intergenerational families for 40 years in the case of a new building 
or annex and 20 years in the case of reconfigured units in an existing 
project.
    For those projects eligible to receive PRAC funds, the funds are 
used to cover the difference between the tenants' contribution toward 
rent (30 percent of adjusted income) and the HUD-approved cost to 
operate the project. The PRAC funds may also be used to provide 
supportive services and to hire a service coordinator in those projects 
selected for assistance. The supportive services must be appropriate to 
the category or categories of residents to be served.
    B. Authority. The Demonstration Program for Elderly Housing for 
Intergenerational Families is authorized by Living Equitably: 
Grandparents Aiding Children and Youth Act of 2003 or the LEGACY Act of 
2003 (Pub. L. 108-186, Title II, Dec. 16, 2003; 117 Stat. 2688). The 
Department of Housing and Urban Development Appropriations Act, 2006 
(Pub. L. 109-115, approved Nov. 30, 2005) provided $3.96 million for a 
Section 202 Demonstration Program for Elderly Intergenerational 
Families pursuant to section 203 of Public Law 108-186.
    C. Calculation of Fund Reservation. If selected, you will receive a 
fund reservation that will consist of:
    1. Demonstration Program Funds. The reservation for funds is based 
on a formula that takes the development cost limit for the appropriate 
building type (elevator, non-elevator, and unit size), multiplies it by 
the number of units of each size (including a unit for a resident 
manager, if applicable), then multiplies the result by the high-cost 
factor for the geographical area. For retrofitting existing units, the 
funds will be available for the costs of physical conversion of the 
units and related community and service space. The development cost 
limits can be found in this NOFA.
    2. PRAC Funds. The initial PRAC award covers 3 years. The amount 
awarded is determined by multiplying the number of revenue units for 
intergenerational families by the appropriate operating cost standard 
times three. Note: PRAC funds will only be awarded to those Section 202 
Capital Advance projects that are currently eligible to receive PRAC 
funds and to Section 202/8 projects for intergenerational dwelling 
units provided through development of buildings or projects comprised 
solely of intergenerational units or through the development of an 
annex or addition to

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an existing project assisted under Section 202 of the Housing Act of 
1959 (12 U.S.C. 1701q), that contains intergenerational dwelling units, 
including through the development of elder cottage housing opportunity 
units that are small, freestanding, barrier free, energy efficient, 
removable dwelling units located adjacent to a larger project or 
dwelling.
    D. Definitions. For purposes of this notice:
    1. Covered Family. A family that:
    a. includes a child; and
    b. has a head of household who is 62 years of age or older who is:
    (1) A grandparent of the child who is raising the child; or
    (2) a relative of the child who is raising the child.
    2. Elderly Person. The term ``elderly person'' is defined as a 
household composed of one or more persons, at least one of whom is 62 
years of age or older at the time of initial occupancy.
    3. Intergenerational family. A covered family that has a head of 
household who is an elderly person, as defined above.
    4. Intergenerational dwelling unit. A qualified dwelling unit that 
is reserved for occupancy only by an intergenerational family.
    5. Child. An individual who is not older than 18 years of age or 
not older than 19 years of age and also attending school.
    6. Grandparent. With respect to a child, an individual who is a 
grandparent or step-grandparent of the child by blood or marriage, 
regardless of the age of such individual. In the case of a child who 
was adopted, the term includes an individual who, by blood or marriage, 
is a grandparent or step-grandparent of the child as adopted.
    7. Relative. With respect to a child, an individual who is not a 
parent of the child by blood or marriage and is a ``relative'' of the 
child by blood or marriage regardless of the age of the individual. In 
the case of a child who was adopted, the term ``relative'' includes an 
individual who, by blood or marriage, is a relative of the family who 
adopted the child.
    8. Raising a child. With respect to an individual, the individual:
    a. Resides with the child; and
    b. Is the primary caregiver for the child: (1) Because the 
biological or adoptive parents of the child do not reside with the 
child or are unable or unwilling to serve as the primary caregiver of 
the child; and (2) regardless of whether the grandparent or other 
relative has a legal relationship to the child (such as guardianship or 
legal custody) or is caring for the child informally and has no such 
legal relationship with the child.
    9. General Section. HUD's Fiscal Year 2008 Notice of Funding 
Availability (NOFA); Policy Requirements and General Section to the 
FY2008 SuperNOFA for HUD's Discretionary Programs; Notice, published 
March 19, 2008 (73 FR 14882).

II. Award Information

    A. Available Funds. The Department of Housing and Urban Development 
Appropriations Act, 2006 (Pub. L. 109-115, approved Nov. 30, 2005) 
provided $4 million for a Section 202 Demonstration Program for Elderly 
Intergenerational Families, pursuant to section 203 of Public Law 108-
186, to expand the supply of intergenerational dwelling units. For 
projects eligible to receive PRAC funds, the funds are available to 
cover the difference between the tenants' contribution toward rent and 
the HUD-approved cost to operate the project. As the result of the 
rescission, $3.96 million is available for distribution under this 
NOFA.
    B. Number of Awards. HUD anticipates awarding two to four project 
awards.
    C. Amount of Award. The maximum amount of award is $2 million.
    D. Type of Assistance Instrument. The Agreement Letter, when fully 
executed, stipulates the terms and conditions for the fund reservation 
award, as well as the submission requirements following the fund 
reservation award. The duration of the fund reservation award for the 
funding is 18 months from the date of issuance of the fund reservation.
    E. Use Agreement. The applicant must enter into a Use Agreement to 
operate the project only as rental housing for very low-income elderly 
intergenerational families for not less than 40 years for a new 
building or annex and for an additional 20 years for existing units 
converted to intergenerational units. If the project is to be located 
on a site not subject to an existing mortgage to HUD, a first mortgage 
for a term of 40 years will be required. All Use Agreements must be 
recorded.
    F. Anticipated Start and Completion Date. Immediately upon your 
acceptance of the Agreement Letter, you are expected to begin work 
toward the submission of a Firm Commitment application, which is the 
next application submission stage. You are required to submit a Firm 
Commitment Application to HUD Headquarters within 180 days from the 
date of the Agreement Letter. Initial closing and start of construction 
of the project are expected to be accomplished within the duration of 
the fund reservation period, as indicated in the above paragraph 
regarding the Type of Assistance Instrument. Final closing is expected 
no later than 6 months after completion of the project construction.

III. Eligibility Information

    A. Eligible Applicants. Only private nonprofit owners of Section 
202 projects may apply for assistance under this NOFA.
    B. Cost Sharing or Matching. No cost sharing or matching is 
required; however, you are required to provide evidence that you have 
sufficient funds available that together with the assistance funds, 
will be sufficient for initial closing and project completion.
    The owner makes a commitment by signing form HUD-92041, Sponsor's 
Conflict of Interest Resolution. The Sponsor will make a commitment by 
signing form HUD-92042, Sponsor's Resolution for Commitment to the 
Project.

C. Other

1. Eligible Uses of Funds
    a. Funds are available only to private nonprofit owners of Section 
202 projects to use in expanding the supply of intergenerational 
dwelling units. These units must be provided:
    (1) By designating and retrofitting, for use as intergenerational 
dwelling units, existing dwelling units that are located within a 
project assisted under Section 202 of the Housing Act of 1959 (12 
U.S.C. 1701q);
    (2) Through development of buildings or projects comprised solely 
of intergenerational dwelling units; or
    (3) Through the development of an annex or addition to an existing 
project assisted under Section 202 of the Housing Act of 1959 (12 
U.S.C. 1701q), that contains intergenerational dwelling units, 
including through the development of elder cottage housing opportunity 
units that are small, freestanding, barrier free, energy efficient, 
removable dwelling units located adjacent to a larger project or 
dwelling.
    b. For those projects eligible to receive PRAC funds, the funds 
will be available to cover the difference between the HUD-approved 
operating costs and the amount the residents pay (each resident pays 30 
percent of adjusted income), as well as the HUD-approved cost to 
operate the project.
    c. A portion of the PRAC funds (not to exceed $15 per unit/per 
month) may be used to cover some of the cost of any supportive services 
for residents. The balance of the cost for services must be

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paid from sources other than the demonstration program funds or PRAC 
funds. Also, the cost of employing a service coordinator for the 
project is an eligible use of PRAC funds. Section 202 projects 
receiving Congregate Housing Services assistance under Section 802 of 
the National Affordable Housing Act are not eligible to use 
demonstration program funds or PRAC funds for supportive services or 
for the cost of a service coordinator.
    2. Threshold Requirements for Funding Consideration. In addition to 
the threshold criteria outlined in the General Section, the following 
threshold requirements must be met. (See Section V.B.2. of this NOFA 
and Section III.C.2. and 3 of HUD's Fiscal Year 2008 Notice of Funding 
Availability (NOFA); Policy Requirements and General Section to the 
FY2008 SuperNOFA for HUD's Discretionary Programs; Notice.)
    a. Nonresponsive Application. Your application will be considered 
nonresponsive to this NOFA and will not be accepted for processing if 
the following threshold requirements are not met:
    (1) You must be an eligible applicant.
    (2) You must have a DUN and Bradstreet Universal Data Numbering 
System (DUNS) number. The DUNS number must be included in the data 
entry field labeled ``organizational DUNS'' on the form SF-424. 
Instructions for obtaining a DUNS number can be found at either https://
www.hud.gov/offices/adm/grants/duns.cfm or in the General Section.
    (3) To have qualified dwelling units for purposes of this notice, 
each unit:
    (a) Shall not have fewer than two separate bedrooms but no more 
than four separate bedrooms;
    (b) Be equipped with design features appropriate to meet the 
special physical needs of elderly persons, as needed; and
    (c) Be equipped with design features appropriate to meet the 
special physical needs of young children, as needed.
    (4) You request less than the minimum of 5 units.
    (5) You submit a substantially deficient application. (A majority 
of the required exhibits are not submitted with your application, 
particularly, but not limited to, those exhibits which are not 
curable.)
    (6) You request more than $2 million in funding.
    (7) You request assistance for an ineligible activity as defined in 
this program NOFA. (Please refer to Part IV.E.2.)
    (8) You submit paper copies of the application, and you have not 
received approval from HUD for a waiver of the electronic submission 
requirements or you submit less than the required number of paper 
copies indicated in your waiver notification.
    b. Other Criteria.
    (1) You must have the experience to develop and operate 
intergenerational dwelling units.
    (2) You must have sufficient funds available to reach initial 
closing and complete the project.
    (3) Your application must contain acceptable evidence of the 
following:
    (a) Evidence of Site Control. You must provide evidence of site 
control as described in section IV.B.2.c.(1)(iv)(d)(i) of this NOFA.
    (b) Historic Preservation. You are required to send to the State/
Tribal Historic Preservation Officer (SHPO/THPO) a letter that attempts 
to initiate consultation with that officer and requests the officer's 
review of your determinations and findings with respect to the 
historical significance of your proposed project. A sample letter to 
the SHPO/THPO that you may adapt for your use, if you so choose, is 
available on HUD's Web site at https://www.hud.gov/offices/adm/grants/
fundsavail.cfm. You must include: (1) A copy of your letter to the 
SHPO/THPO in your application and a statement that you have not 
received a response letter(s) from the SHPO/THPO, or (2) a copy of the 
response letter(s) received from the SHPO/THPO.
    (c) Contamination. HUD must determine if a proposed site contains 
contamination, such as hazardous waste, petroleum, or petroleum 
products, and, if so, HUD must be satisfied that it is eliminated to 
the extent necessary to meet nonsite-specific federal, state, or local 
health standards. You must assist HUD by doing the following:
    (i) Phase I Environmental Site Assessment (ESA). You must undertake 
and submit a Phase I ESA, prepared in accordance with the ASTM Standard 
E 1527-05, as amended, using the table of contents and report format 
specified at Appendix X4 thereto, completed or updated as specified at 
Section 4.6 thereto no earlier than 180 days prior to the application 
deadline date. The Phase I ESA must be completed and submitted with the 
application. Therefore, it is important that you start the Phase I ESA 
process as soon after publication of this NOFA as possible.

    Note: A Phase I ESA that is not properly updated, does not use 
the report format specified at Appendix X4 of ASTM Standard E 1527-
05, or that is prepared in accordance with an older version of ASTM 
E 1527 will result in a technical rejection of your application.

    To help you choose an environmentally safe site, HUD invites you to 
review the documents ``Choosing an Environmentally Safe Site'' and 
``Supplemental Guidance, Environmental Information,'' which are 
available on the HUD Web site at https://www.hud.gov/offices/adm/grants/
fundsavail.cfm.
    (ii) Phase II ESA. If the Phase I ESA indicates the possible 
presence of contamination and/or hazards, you must decide whether to 
continue with this site or choose another site. Should you choose 
another site, the same Phase I ESA process identified above must be 
followed for the new site. However, if you choose to continue with the 
original site on which the Phase I ESA indicated contamination or 
hazards, you must undertake a detailed Phase II ESA by an appropriate 
professional. In order for your application to be considered for review 
under this funding competition, the Phase II must be received by Aretha 
Williams, Director, Grant Policy and Management Division, U.S. 
Department of Housing and Urban Development, 451 7th Street, SW., 
Washington, DC 20410, on or before August 1, 2008.
    (iii) Clean-up. If the Phase II ESA reveals site contamination, the 
extent of the contamination and a plan for clean-up of the site must be 
submitted to HUD Headquarters. The plan for clean-up must include a 
contract for remediation of the problem(s) and an approval letter from 
the applicable federal, state, and/or local agency with jurisdiction 
over the site. In order for your application to be considered for 
review under this funding competition, this information must be 
received by Aretha Williams, Director, Grant Policy and Management 
Division, U.S. Department of Housing and Urban Development, 451 7th 
Street, SW., Washington, DC 20410 on or before August 1, 2008. If the 
above information is not received by that date, the application will be 
rejected.

    Note: Clean-up could be an expensive undertaking. You must pay 
for the cost of any clean-up and/or remediation with sources other 
than the demonstration program funds. If the application is 
approved, clean-up must be completed prior to initial closing. 
Completion of clean-up means that HUD must be satisfied that the 
contamination has been eliminated to the extent necessary to meet 
nonsite-specific federal, state, or local health standards, with no 
active or passive remediation still taking place, no capping over of 
any contamination, and no monitoring wells. However, it is 
acceptable if contamination remains solely in groundwater that is at 
least 25 feet below the surface.

    (d) Asbestos. Asbestos is a hazardous substance commonly used in 
building products until the late 1970s. Therefore,

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you must submit one of the following with your application:
    (i) If there are no pre-1978 structures on the site or if there are 
pre-1978 structures that most recently consisted solely of four or 
fewer units of single-family housing, including appurtenant structures 
thereto, a statement to this effect, or
    (ii) If there are pre-1978 structures on the site, other than for a 
site that most recently consisted of solely four or fewer units of 
single-family housing, including appurtenant structures thereto, a 
comprehensive building asbestos survey that is based on a thorough 
inspection to identify the location and condition of asbestos 
throughout any structures. In those cases where suspect asbestos is 
found, it would either be assumed to be asbestos or would require 
confirmatory testing. If the asbestos survey indicates the presence of 
asbestos or the presence of asbestos is assumed, and if the application 
is approved, HUD will condition the approval on an appropriate mix of 
asbestos abatement and an asbestos Operations and Maintenance Plan.
    (e) Lead-Based Paint. You must comply with the requirements of the 
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the 
Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. 4851 et 
seq.), and implementing regulations at 24 CFR part 35.
    (4) There must be a market need for the number of units proposed in 
the area of the project location. You must provide a copy of a written 
assessment of the intergenerational families' housing needs in the 
relevant community. For the assessment, you should engage the help of 
local child welfare agencies, caregiver support groups, Area Agencies 
on Aging, and other supportive service providers working with the 
families.
    (5) You must provide a copy of a feasibility study on the proposed 
project.
    (6) You must provide commitment and support letters from the 
appropriate organizations, agencies, and businesses. The commitment and 
support letter(s) from the appropriate groups should:
    (a) be submitted by the application submission date as part of your 
application for financial assistance;
    (b) indicate that the intergenerational dwelling units, facilities, 
and supportive services to be provided are designed to meet the needs 
of the residents who will reside in the intergenerational dwelling 
units as defined in this NOFA.
    (7) You are required to include a Supportive Services Plan that 
describes the supportive services proposed to be provided to the 
anticipated occupants, including a description of the public or private 
funds that are expected to fund the proposed services and the manner in 
which the services will be provided to the proposed residents. You must 
not require residents to accept any supportive services as a condition 
of occupancy or admission.
    (8) Delinquent Federal Debt. Refer to the General Section for 
information regarding delinquent federal debt.
    3. Program Requirements. By signing the Demonstration Program 
application, you are certifying that you will comply with all program 
requirements listed in the General Section, as well as the following 
requirements:
    a. Statutory and Regulatory Requirements. In addition to the 
statutory, regulatory, threshold, and public policy requirements listed 
in the General Section, you must comply with all statutory and 
regulatory requirements listed in this NOFA.
    b. Existing Section 202 Developments. If you are designating and 
retrofitting units within an existing Section 202 project or are 
building an annex or addition to an existing Section 202 project:
    (1) Your project must meet HUD's Uniform Physical Conditions 
Standards at 24 CFR part 5, subpart G;
    (2) The project's most recent management review rating must be 
rated as satisfactory or above;
    (3) The project's most recent Real Estate Assessment Center (REAC) 
physical inspection report for the project must be 60 or above;
    (4) The project must be well maintained;
    (5) The project must not have a recent history of mortgage 
defaults; and
    (6) The project owner must not have any material adverse financial 
or managerial actions or omissions with regard to any project that is 
federally assisted and/or financed with a loan or capital advance from 
or any mortgage insured by an agency of the federal government.
    c. Supportive Services Plan. HUD believes that a strong Supportive 
Services component is crucial to the success of your project over the 
next 20 years. It is critical that you develop and maintain solid 
relationships and partnerships with the supportive service providers in 
the community to ensure the provision of services for the 
intergenerational families. In addition, due to the amount of funds 
available under this NOFA for supportive services, it is vital that 
additional resources are found.
    For purposes of this NOFA, you must develop and submit a Supportive 
Services Plan for the services that will be offered on-site and/or off-
site. You must submit one copy of your Supportive Services Plan to each 
appropriate state or local service funding organization well in advance 
of the application deadline, for appropriate review. The state or local 
funding organization(s) should return the Supportive Services Plan to 
you with appropriate comments and an indication of any funding 
commitment, which you will then include with the application you submit 
to HUD.
    d. Prohibition Against Lobbying Activities. The Byrd Amendment 
prohibits recipients of federal contracts, grants, or loans from using 
those funds for lobbying activities.
    e. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). You must comply with Section 3 of the Housing and Urban 
Development Act of 1968, 12 U.S.C. 1701u (Economic Opportunities for 
Low- and Very Low-Income Persons), and implementing regulations at 24 
CFR part 135. You must ensure that training, employment, and other 
economic opportunities shall, to the greatest extent feasible, be 
directed toward low- and very low-income persons, particularly those 
who are recipients of government assistance for housing and to business 
concerns that provide economic opportunities to low- and very low-
income persons, including people with disabilities.
    f. Minimum Project Size. The minimum number of units that can be 
applied for in one application is five units.
    g. Accessibility. Your project must meet accessibility requirements 
published at 24 CFR 891.120, 24 CFR 891.210, and Section 504 of the 
Rehabilitation Act of 1973 and its implementing regulations at 24 CFR 
part 8, and, if your new project is new construction, the design and 
construction requirements of the Fair Housing Act and HUD's 
implementing regulations at 24 CFR part 100. In addition, 24 CFR 
8.4(b)(5) prohibits the selection of a site or location that has the 
purpose or effect of excluding persons with disabilities from the 
federally assisted program or activity. Refer to Section V.A. below and 
the General Section for information regarding the policy-priority of 
encouraging accessible design.
    h. Conducting Business in Accordance with HUD Core Values and 
Ethical Standards. You are not subject to the requirements of 24 CFR 
parts 84 and 85, as outlined in the General Section, except that the 
disposition of real

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property may be subject to 24 CFR part 84. However, you are still 
subject to the core values and ethical standards as they relate to the 
conflict-of-interest provisions in 24 CFR 891.130. To ensure compliance 
with the program's conflict-of-interest provisions, an owner's 
certification of compliance with the conflict-of-interest program 
requirements must be included in your application. The Sponsor of the 
Section 202 applicant project must be committed to the development of 
the intergenerational dwelling units. A sponsor's certification 
supporting the project must be provided in your application. Further, 
if awarded a fund reservation, the officers, directors, board members, 
trustees, stockholders, and authorized agents of the Sponsor and Owner 
entities will be required to submit to HUD individual certifications 
regarding compliance with HUD's conflict-of-interest requirements.
    i. Fair Housing. You must comply with the requirements of the Fair 
Housing Act; Executive Order 11063; Title VI of the Civil Rights Act; 
the Age Discrimination Act of 1975; the affirmative fair housing 
marketing requirements of 24 CFR part 200, subpart M; and the 
implementing regulations at 24 CFR part 108, which require that the 
project be marketed to those least likely to apply. You must also 
comply with any other applicable federal, state, and local laws 
prohibiting discrimination and promoting equal opportunity, including 
affirmatively furthering fair housing, and other certifications listed 
in this application. You must comply with the Uniform Federal 
Accessibility Standards (24 CFR 40.7), section 504 of the 
Rehabilitation Act of 1973, HUD's implementing regulations at 24 CFR 
part 8, and the Americans with Disabilities Act of 1990.
    Refer to the General Section for additional Information on Fair 
Housing Requirements.
    j. Davis Bacon. You must comply with the Davis-Bacon requirements 
(12 U.S.C. 1701q(j)(5)) and the Contract Work Hours and Safety 
Standards Act, in accordance with 24 CFR 891.155(d).
    k. Ensure the Participation of Small Businesses, Small 
Disadvantaged Businesses, and Woman-Owned Businesses. HUD is committed 
to ensuring that small businesses, small disadvantaged businesses, and 
woman-owned businesses participate fully in HUD's direct contracting 
and in contracting opportunities generated by HUD's financial 
assistance.
    l. Executive Order 13166, Improving Access to Persons with Limited 
English Proficiency (LEP). Successful applicants are required to take 
reasonable steps to ensure meaningful access to their programs and 
activities by LEP persons. For further guidance on serving persons with 
limited English proficiency in HUD assisted programs, see ``Final 
Guidance to Federal Financial Assistance Recipients Regarding Title VI 
Prohibition Against National Origin Discrimination Affecting Limited 
English Proficient Persons'' (72 FR 2732, January 22, 2007). Applicants 
must seek to improve access to persons with limited English proficiency 
by providing materials and information in languages other than English. 
Make applications and other materials available in languages other than 
English that are common in the community, if speakers of these 
languages are found in significant numbers and are members of 
intergenerational families. For further guidance on serving persons 
with limited English proficiency in HUD-assisted programs, see the 
recent HUD LEP guidance, ``Notice of Guidance to Federal Assistance 
Recipients Regarding--Title VI Prohibition Against National Origin 
Discrimination Affecting Limited English Proficient Persons,'' 68 FR 
70968 (December 19, 2003).
    m. Executive Order 13279, Equal Protection of the Laws for Faith-
Based and Community Organizations. HUD has undertaken a review of all 
policies and regulations that have implications for faith-based and 
community organizations, and has established a policy priority to 
provide full and equal access to grassroots faith-based and other 
community-based organizations.
    n. Accessible Technology. The Rehabilitation Act Amendments of 1998 
apply to all electronic information technology (EIT) used by a grant 
recipient for transmitting, receiving, using, or storing information to 
carry out the responsibilities of these awards.
    o. Participation in HUD-Sponsored Program Evaluation. As a 
condition of the receipt of funds under this NOFA, recipients are 
required to cooperate with all HUD staff or contractors performing HUD-
funded research and evaluation studies.
    p. Executive Order 13202. Comply with Executive Order 13202, 
Preservation of Open Competition and Government Neutrality toward 
Government Contractors' Labor Relations on Federal and Federally Funded 
Construction Projects.
    q. OMB Circulars and Governmentwide Regulations Applicable to 
Financial Assistance. Applicants are subject to the Administrative 
Requirements of OMB Circular A-133, Audits of States, Local 
Governments, and Non-Profit Organizations; OMB Circular A-122, Cost 
Principles for Non-Profit Institutions; the administrative requirements 
of 24 CFR part 84; and the procurement requirements of 24 CFR 84.44.
    r. National Environmental Policy Act. Your application is subject 
to the National Environmental Policy Act of 1969 and the applicable 
related federal environmental authorities (See 24 CFR part 50, as 
applicable). An environmental review will be completed by HUD before 
awarding any assistance under this program.
    s. Design and Cost Standards. You must comply with HUD's Section 
202 design and cost standards (24 CFR 891.120 and 891.210), the Uniform 
Federal Accessibility Standards (24 CFR 40.7), Section 504 of the 
Rehabilitation Act of 1973, and HUD's implementing regulations at 24 
CFR part 8, and, for covered multifamily dwellings designed and 
constructed for first occupancy after March 13, 1991, the design and 
construction requirements of the Fair Housing Act and HUD's 
implementing regulations at 24 CFR part 100, and, where applicable, the 
Americans with Disabilities Act of 1990.
    t. Ownership of Section 202 projects. Owners of a Section 202 
project can apply for funding under this NOFA. The present single-
purpose regulatory limitation on Section 202 owner provisions of the 
regulations, which restricts ownership of more than one project, is 
waived for applicants applying for funding under this NOFA. This waiver 
will apply only if your proposal for developing intergenerational 
dwelling units is through designating and retrofitting existing units 
in a Section 202 project or through building an annex or addition to an 
existing Section 202 project. If your proposal is for the development 
of buildings or projects solely of intergenerational dwelling units, 
you must form an Owner entity (in accordance with 24 CFR 891.205) after 
issuance of the demonstration program fund reservation and must cause 
the Owner entity to file a request for determination of eligibility and 
a request for demonstration program funds, and must provide sufficient 
resources to the Owner entity to ensure the development and long-term 
operation of the project, including capitalizing the Owner entity at 
firm commitment processing in an amount sufficient to meet its 
obligations in connection with the project over and above the 
demonstration program assistance amount.

[[Page 22765]]

4. Energy Efficiency
    HUD has adopted a wide-ranging energy action plan for improving 
energy efficiency in all HUD 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 
purpose of the Energy Star partnership is not only to promote energy 
efficiency of the affordable housing stock, but also to help protect 
the environment.
    Although it is not a requirement, you are encouraged to promote 
energy efficiency in the design and operation of your proposed project. 
Your application will receive one point if you describe your plans for 
doing so in the proposed project. You are urged especially to purchase 
and use Energy Star-labeled products. For further information about 
Energy Star, see https://www.energystar.gov or call 1-888-STAR-YES (1-
888-782-7937) or, for the hearing-impaired, 1-888-588-9920 TTY.

IV. Application and Submission Information

    Applicants are required to submit an electronic application, unless 
they receive a waiver of the requirement in accordance with the 
procedures in Section IV.C. of this NOFA. See the General Section for 
information on electronic application submission and timely submission 
and receipt requirements.
    A. Addresses to Request Application Package. All information 
required to complete and return a valid application is included in the 
General Section and this NOFA, including other related documents. 
Applicants may download the application and instructions from the 
Grants.gov Web site at https://www.grants.gov/applicants/apply_for_
grants.jsp. If you have difficulty accessing the information, you may 
call the Grants.gov Support Desk toll-free (800-518-GRANTS or 800-518-
4726) or e-mail your questions to support@Grants.gov. See the General 
Section for information regarding the registration process or ask for 
registration information from the Grants.gov Support Desk.
    You may request general information and copies of the General 
Section and NOFA (including related documents) from the NOFA 
Information Center (800-HUD-8929 or 800-483-8929) Monday through 
Friday, except on federal holidays. Persons with hearing and speech 
impairments may access the above number via TTY by calling the toll-
free Federal Information Relay Service at 800-877-8339. When requesting 
information, please refer to the name of the program in which you are 
interested.
    Before the application deadline date, HUD staff is available to 
provide you with general guidance and technical assistance. For 
technical support for obtaining or submitting the application, call 
Aretha Williams at (202) 708-3000 or Claire Trivedi at (202) 402-6634 
(these are not toll-free numbers). HUD staff is not permitted to assist 
in preparing your application.
    B. Content and Form of Application Submission. The exhibits to be 
included in your application are contained in the body of this NOFA.

    Note: Section 1001 of Title 18 of the United States Code 
(Criminal Code and Criminal Procedure, 72 Stat. 967) applies to all 
information supplied in the application submission. Among other 
things, 18 U.S.C. 1001 provides that whoever knowingly and willfully 
makes or uses a document or writing containing any false, 
fictitious, fraudulent statement or entry, in any matter within the 
jurisdiction of any department or agency of the United States, shall 
be fined not more than $10,000 or imprisoned for not more than 5 
years, or both.

    The application consists of four parts with a total of eight 
exhibits. Included with the eight exhibits are prescribed forms, 
certifications, and resolutions. The components of the application are:
     Part 1--(Exhibit 1), Application Form for Demonstration 
Program for Elderly Housing for Intergenerational Families;
     Part 2--Your Ability to Develop and Operate the Proposed 
Project (Exhibits 2 and 3);
     Part 3--The Need for Intergenerational Housing in the Area 
to be Served, Site Control and Suitability of Site (including 
security), and Adequacy of the Provisions of Supportive Services and of 
the Proposed Project (Exhibits 4 and 5);
     Part 4--General Application Requirements, Certifications, 
and Resolutions (Exhibits 6 through 8).
    The following additional information, which may assist you in 
preparing your application, is available on HUD's Web site at https://
www.hud.gov/offices/adm/grants/fundsavail.cfm:
     Letter Requesting SHPO/THPO Review;
     Choosing an Environmentally Safe Site;
     Supplement to Choosing an Environmentally Safe Site; and
     Affordable Housing for Intergenerational Families 
Satellite Broadcast Training May 30, 2007.
    Your application must include all of the information, materials, 
forms, and exhibits listed below (unless you were selected for a 
Section 202 fund reservation within the last three funding cycles). If 
you qualify for this exception, you are not required to submit the 
information described in Exhibits 2(a), (b), and (c), which are the 
articles of incorporation (or other organizational documents), bylaws, 
and the Internal Revenue Service tax exemption, respectively. If there 
has been a change in any of these documents since your previous HUD 
approval, you must submit the updated information in your application. 
Headquarters will verify your previous HUD approval by checking the 
project number and approval status with the appropriate local HUD 
office based on the information submitted.
    Please submit your application using the following format provided 
in this NOFA. For applications to be submitted electronically, in which 
you have created files to be attached to the electronic application, 
you should number the pages of the attached file and include a header 
that identifies the exhibit that it relates to. Please be sure to 
follow the file labeling and file format in the General Section.
    For applicants that have received a waiver of the electronic 
application submission, you must number the pages of each file, 
narratives, and other attached files. Include the name of your 
organization, your DUNS number, and the exhibit number that you are 
responding to on the header of each document.

1. Table of Contents

a. Part I--Application Form
    (1) Exhibit 1: Application Form for Demonstration Program for 
Elderly Housing for Intergenerational Families
b. Part II--Ability to Develop/Operate Project
    (1) Exhibit 2: Legal Status
    (a) Organizational Documents
    (b) Bylaws
    (c) IRS Tax Exemption Ruling
    (2) Exhibit 3: Purpose/Community Ties/Experience with 
Intergenerational Families
    (a) Purpose(s), current activities, etc.
    (b) Community ties, description of area
    (i) Links to the community
    (ii) Efforts to involve elderly and youth
    (c) Form HUD-27300, America's Affordable Communities Initiative/
Removal of Regulatory Barriers with supporting documentation
    (d) Sources and Uses Statement
    (e) Other funding sources
    (f) Section 3 requirements
    (g) Letters of support
    (h) Housing/Services experience
    (i) Practical solutions
    (j) How project will remain viable

[[Page 22766]]

    (i) If services are depleted
    (ii) If State-funded services change
    (iii) If need for project changes
    (k) Project Development Timeline
    (l) Past Performance
c. Part III--Need for Intergenerational Housing, Site Requirements, 
Proposed Services
    (1) Exhibit 4: Project Information
    (a) Evidence of need for project
    (i) Written assessment
    (ii) Target population, demographics, and extent of their need
    (iii) Benefit to population/community
    (b) Feasibility Study
    (c) Narrative project descriptions
    (i) Building design
    (ii) Security
    (iii) Energy efficiency features
    (iv) Uniform Federal Accessibility Standards
    (d) Site control and zoning
    (i) Site control documents
    (ii) Freedom of site from restrictions
    (iii) Zoning requirements
    (iv) Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970, as amended (49 CFR part 24 and 24 CFR 
891.155(e)) (URA) site notification requirements
    (v) Topographical/demographical description of site/area and 
opportunities for minorities
    (vi) Racial composition/map of site
    (vii) Phase I ESA
    (viii) Asbestos statement/survey
    (ix) SHPO/THPO requirements
    (x) Lead-based paint
    (2) Exhibit 5: Supportive Services Plan
    (a) Description of services
    (b) Other funding sources
    (c) How services will be provided
d. Part IV--Requirements/Certifications/Resolutions
    (1) Exhibit 6: Staffing Plan, Tenant Selection, Residence 
Requirements, Written Rules and Procedures
    (a) Staffing plan
    (b) Tenant selection and residency
    (c) Rules/procedures
    (2) Exhibit 7: Required information on
    (a) All property occupants
    (b) Relocation costs/services
    (c) Staff to carry out relocation
    (d) Occupant move-outs within past 12 months
    (e) General information notice
    (3) Exhibit 8: Forms/Certifications/Resolutions
    (a) SF-424, Application for Federal Assistance
    (b) SF-424 Supplement, ``Survey on Ensuring Equal Opportunities 
for Applicants'' (Faith-Based EEO Survey (SF-424 SUPP) on Grants.gov
    (c) HUD-2880, ``Applicant/Recipient Disclosure/Update Report'' 
(``HUD Applicant Recipient Disclosure Report'' on Grants.gov)
    (d) HUD-2991, Certification of Consistency with the Consolidated 
Plan
    (e) HUD-2994-A, You Are Our Client! Grant Applicant Survey 
(Optional)
    (f) SF-LLL, Disclosure of Lobbying Activities
    (g) HUD-96010, Program Outcome Logic Model
    (h) HUD-27300, America's Affordable Communities Initiative/
Removal of Regulatory Barriers, (``HUD Communities Initiative Form'' 
on Grants.gov) and supporting documentation, if applicable
    (i) HUD-2990, Certification of Consistency with the RC/EZ/EC-II 
Strategic Plan (if applicable)
    (j) HUD-92041, Sponsor's Conflict of Interest Resolution (owner 
signs)
    (k) HUD-92042, Sponsor's Resolution for Commitment to Project
    (l) HUD-96011, ``Third Party Documentation Facsimile 
Transmittal'' (Facsimile Transmittal Form on Grants.gov). For 
electronic applications only, this form must be used as the cover 
page for faxing third party information. See the General Section
    (m) HUD-92910, Application Form for Demonstration Program for 
Elderly Housing for Intergenerational Families

2. Programmatic Applications Requirements

a. Part 1--Application Form for Demonstration Program for Elderly 
Housing for Intergenerational Families

    (1) Exhibit 1--Application Form for Demonstration Program for 
Elderly Housing for Intergenerational Families. A copy of the form HUD-
92910 is available in the instructions download at https://
www.grants.gov/applicants/apply_for_grants.jsp.

b. Part II--Your Ability to Develop and Operate the Proposed Project

    (1) Exhibit 2--Evidence of your legal status (i.e., evidence of 
your status as a private nonprofit organization).
    (a) Articles of Incorporation, constitution, or other 
organizational documents;
    (b) Bylaws;
    (c) IRS tax exemption ruling (this must be submitted by all 
Sponsors, including churches).

    Note: If you received a Section 202 fund reservation within the 
last three funding cycles, you are not required to submit the 
documents described in (a), (b), and (c) above. Instead, submit the 
project number of the latest application and the local HUD office to 
which it was submitted. If there have been any modifications or 
additions to the subject documents, indicate such, and submit the 
new material.

    (2) Exhibit 3--Your purpose, community ties, and experience.
    (a) A description of your purpose(s), current activities, including 
your ability to enlist volunteers and raise private and local funds, 
and how long you have been in existence.
    (b) A description of your community support:
    (i) Your ties to the community at large, including minority and 
elderly communities, and to the community of intergenerational 
families, in particular; and
    (ii) Your efforts to involve the elderly and youth in 
intergenerational families in:
    (A) Developing the application;
    (B) Participating on the project's planning committee;
    (C) Developing the project's operating philosophy;
    (D) Reviewing the application prior to submission to HUD; and
    (E) Your intent to involve them in the operation of the project.
    (c) The extent that the jurisdiction in which your project will be 
located has undertaken efforts to remove regulatory barriers to 
affordable housing and how you have supported these efforts. This is an 
optional requirement, but to obtain up to 2 points for this policy 
priority you must complete the form HUD-27300, Questionnaire for HUD's 
Initiative on Removal of Regulatory Barriers and provide the required 
documentation. See Rating Factor 3 in Section V.A. below for more 
details.
    (d) A comprehensive sources and uses statement that details all 
funds for development and supportive services for the proposed project, 
including a description of other funding sources for the project 
(financial assistance, donation of land, provision of services, etc.).
    (e) Include all financial commitment letters with specific dollar 
amounts from appropriate organizations. If $100,000 or more in funding 
has been secured, you will receive 5 points, provided a letter from 
each lender or donor confirming the funding is included with the 
application.

    Note: Given the amount of the funds available under this NOFA, 
the need to collaborate and obtain funding from other sources is 
critical.

    (f) Address how training, employment, and economic opportunities 
shall, to the greatest extent feasible, be directed toward low- and 
very low-income persons, particularly those who are recipients of 
government assistance for housing and to business concerns that provide 
economic opportunities to low- and very low-income persons.
    (g) Letters of support from agencies, organizations, businesses, 
and/or any other groups that will partner with you to provide on-site 
and/or off-site supportive services. The letters of support should 
indicate that the intergenerational units, facilities, and supportive 
services to be provided are designed to meet the needs of the residents 
who will reside in the intergenerational dwelling units. Their 
experience with intergenerational families must be described in the 
letters.

[[Page 22767]]

Any financial commitments on the part of these entities should also be 
included in the letter. See Section IV.B.2.b.(2)(d) and (e) above 
concerning secured funding. This is a critical component of your 
application and could determine the success or failure of your project.
    (h) A description of your relevant experience with 
intergenerational families and their housing and supportive service 
needs. The description should include any rental housing projects and/
or supportive services facilities that you sponsored, own and/or 
operate; your past or current involvement in any programs other than 
housing that demonstrates your management capabilities (including 
financial management) and experience; your experience in serving the 
target population (elderly, children, and intergenerational families 
including minorities); and the reasons for receiving any increases in 
fund reservations for developing and/or operating previously funded 
Section 202 or Section 811 projects. The description should include 
data on the facilities and services provided; the racial/ethnic 
composition of the populations served, if available; and information 
and testimonials from residents or community leaders on the quality of 
the activities. Examples of activities that could be described include 
housing counseling, nutrition and food services, special housing 
referrals, screening, and information projects.
    (i) A description of the practical solutions you will implement 
that will enable residents of your project to meet the terms and 
conditions of the lease. In addition, describe the educational 
opportunities you will provide for the residents and how you will 
provide them. This description should include any activities that will 
enhance the quality of life for the residents. And finally, describe 
how your proposed project will be an improved living environment for 
the residents in comparison to their previous place of residence.
    (j) Describe how you will ensure that your proposed project will 
remain viable as housing, with the availability of supportive services 
for the target population. This description should address the measures 
you would take should any of the following occur:
    (i) Funding for any of the needed supportive services becomes 
depleted:
    (ii) If, for any State-funded services for your project, the State 
changes its policy regarding the provision of supportive services to 
projects such as the one you propose; or
    (iii) If the need for housing for the population you will be 
serving wanes over time, causing vacancies in your project.
    (k) Describe your plan for completing the proposed project. Include 
a project development timeline that lists the major development stages 
for the project with associated dates that must be met in order to get 
the project to initial closing and start of construction within the 18-
month fund reservation period, as well as the full completion of the 
project, including final closing. Completion of the Program Outcome 
Logic Model (HUD-96010) will assist you in completing your response to 
this Exhibit.
    (l) Describe the extent to which your past performance evidences 
that the proposed project will result in timely development of the 
project.

c. Part III--The Need for Intergenerational Housing, Site Control and 
Suitability of Site Including Security, and Adequacy of the Provisions 
of Supportive Services and of the Proposed Project

    (1) Exhibit 4--Need and Project Information.
    (a) Evidence of Need.
    (i) A brief narrative summarizing the findings from the written 
assessment of the intergenerational families' housing needs in the 
relevant community. A copy of the assessment must be included with the 
application. See Section III.C.2.b.(4) above. Also, a description of 
how information in the community's or (where applicable) the State's 
Consolidated Plan, Analysis of Impediments to Fair Housing Choice (AI), 
or other planning document that analyzes fair housing issues was used 
in documenting the need for the project.
    (ii) Identification of the target population and their demographic 
characteristics and the extent of their housing needs. The target 
population must be surveyed and asked about their following preferences 
and needs:
    (A) If new construction, type of building(s), e.g., high-rises, 
small buildings, or two flats;
    (B) The number of bedrooms--at least two--for each dwelling unit;
    (C) Design features;
    (D) Indoor community space;
    (E) Outdoor space;
    (F) Types of supportive services;
    (iii) A description of how the proposed project will benefit the 
target population and the community in which it will be located.
    (b) A brief narrative summarizing the findings from the feasibility 
study for the proposed project. A copy of the feasibility study must be 
included with the application. See III.C.2.b.(5). The study must 
include, but is not limited to information concerning:
    (i) Site selection;
    (ii) Condition of the project;
    (iii) Neighborhood/location issues;
    (iv) Existing residents and relocation requirements;
    (v) Development design;
    (vi) Preliminary building plans or plans to designate and retrofit;
    (vii) Neighborhood receptivity to the proposed project;
    (viii) Needs and receptivity of the target population;
    (ix) Program policies and procedures;
    (x) Staffing patterns;
    (xi) Implementation Plan;
    (c) These intergenerational dwelling units must include design 
features and public space that accommodate all ages being served. Each 
unit must have at least two separate bedrooms and be equipped with 
design features appropriate to meet the special physical needs of 
elderly persons and young children, as needed. Features in existing 
intergenerational housing include electrical outlet protections, 
handrails in the bathrooms and hallways, shower thermostats that keep 
the water from getting too hot, and secure outside play areas visible 
from the dwelling units.
    The proposed design of the housing should include adequate, 
flexible community space that can accommodate varying uses, multiple 
ages being served, and the changing needs of the residents. For the 
comfort of all residents, the proximity of the community space to the 
housing units and soundproofing should be considered as part of the 
proposed building design. If private, individual, outside space is 
available, such as private porches or terraces, it should be evenly 
distributed among each of the units.
    You must provide a description of the physical construction aspects 
of the intergenerational dwelling units, including the following:
    (i) Narrative description of the building design, including a 
description of the number of units with bedroom distribution; any 
special design features, including any features that incorporate 
visitability standards and universal design, amenities, and/or 
commercial and community spaces; and how this design will facilitate 
the delivery of services in an economical fashion and accommodate the 
changing needs of the residents over the next 10 to 20 years.

    Note: If the community spaces, amenities, or features exceed the 
project design and cost standards of 24 CFR 891.120(a) and (c), the 
special standards of 24 CFR 891.210, and the limitation on bedroom 
unit sizes as required

[[Page 22768]]

by the LEGACY Act of 2003, you must demonstrate your ability and 
willingness to contribute both the incremental development cost and 
continuing operating cost associated with the community spaces, 
amenities, or features;

    (ii) A short narrative describing how security for the project will 
be designed and incorporated in your proposed project. Security may 
include, but is not limited to, a 24-hour front desk, cameras, and 
emergency buzzer systems in each dwelling unit. Twenty-four-hour 
security for the units is essential, as are enforcement policies for 
security violations.
    (iii) Describe how the project will promote energy efficiency (in 
accordance with the requirements set forth in Section III.C.4. of this 
NOFA), including any plans to incorporate energy-efficiency features in 
the operation of the project through the use of Energy Star-labeled 
products and appliances and, if applicable, innovative construction or 
rehabilitation methods or technologies to be used that will promote 
efficient construction. This piece will serve as an assurance that the 
project will promote energy efficiency.
    (iv) A description of the project must address how the units will 
conform to the accessibility requirements described in the Uniform 
Federal Accessibility Standards (UFAS).
    (d) Evidence of site control and permissive zoning.
    (i) Acceptable evidence of site control is limited to any one of 
the following:
    (A) Deed or long-term leasehold that evidences that you have title 
to or a leasehold interest in the site. If a leasehold, the term of the 
lease must be at least 50 years with renewable provisions for 25 years, 
except for sites on Indian trust land, in which case the term of the 
lease must be at least 50 years with no requirement for extensions;
    (B) Contract of sale for the site that is free of any limitations 
affecting the ability of the seller to deliver ownership to you after 
you receive and accept a notice of Demonstration Program funds. (The 
only condition for closing on the sale can be your receipt and 
acceptance of the demonstration program funds.) The contract of sale 
cannot require closing earlier than the Demonstration Program closing;
    (C) Option to purchase or for a long-term leasehold, which must 
remain in effect for 6 months from the date on which the applications 
are due, must state a firm price binding on the seller, and be 
renewable at the end of the 6-month period. The only condition on which 
the option may be terminated is if you are not awarded a fund 
reservation;
    (D) If the site is covered by a mortgage under a HUD program (e.g., 
a previously funded Section 202 or Section 811 project or an FHA-
insured mortgage), you must submit evidence of site control as 
described above AND evidence that consent to release the site from the 
mortgage has been obtained or has been requested from HUD (all required 
information in order for a decision on the request for a partial 
release of security must have been submitted to the local HUD office) 
and from the mortgagee, if other than HUD. Approval to release the site 
from the mortgage must be done before HUD Headquarters makes its 
selections. Refer to Chapter 16 of HUD Handbook 4350.1 REV-1, 
Multifamily Asset Management and Project Servicing, for instructions on 
submitting requests to HUD for partial release of security from a 
mortgage under a HUD program; or
    (E) For sites to be acquired from a public body, evidence is needed 
that the public body possesses clear title to the site and has entered 
into a legally binding agreement to lease or convey the site to you 
after you receive and accept a notice of Demonstration Program funds. 
Where HUD determines that time constraints of the funding round will 
not permit you to obtain all of the required official actions (e.g., 
approval of Community Planning Boards) that are necessary to convey 
publicly owned sites, you may include in your application a letter from 
the mayor or director of the appropriate local agency indicating that 
conveyance or leasing of the site is acceptable without imposition of 
additional covenants or restrictions, and is contingent only on the 
necessary approval action. Such a letter of commitment will be 
considered sufficient evidence of site control.
    (ii) Under HUD's regulations and requirements, whether you have 
title to the site, a contract of sale, an option to purchase, or are 
acquiring a site from a public body, you must provide evidence (a 
current title policy or other acceptable evidence) that the site is 
free of any limitations, restrictions, or reverters that could 
adversely affect the use of the site for the proposed project for the 
term of the mortgage (e.g., reversion to seller if title is 
transferred). If the title evidence contains restrictions or covenants, 
copies of the restrictions or covenants must be submitted with the 
application. If the site is subject to any such limitations, 
restrictions, or reverters, the application will be rejected. Purchase 
money mortgages that will be satisfied from demonstration program funds 
are not considered to be limitations or restrictions that would 
adversely