Notice of Funding Availability for the Section 533 Housing Preservation Grant (HPG) for Fiscal Year 2023, 24148-24154 [2023-08211]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Housing Service

[Federal Register Volume 88, Number 75 (Wednesday, April 19, 2023)]
[Notices]
[Pages 24148-24154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-08211]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service

[Docket No. RHS-23-SFH-0008]


Notice of Funding Availability for the Section 533 Housing 
Preservation Grant (HPG) for Fiscal Year 2023

AGENCY: Rural Housing Service, Department of Agriculture.

ACTION: Notice.

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SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural 
Development (RD) mission area agency of the United States Department of 
Agriculture (USDA), announces the availability of funding under the 
Housing Preservation Grant (HPG) program for fiscal year (FY) 2023, 
making available grant funds to sponsoring organizations for the repair 
or rehabilitation of housing owned or occupied by low- and very-low-
income rural citizens under the HPG Program. The purpose of this notice 
is to announce the opening and closing dates for receipt of 
preapplications for HPG funds, including the availability of calendar 
year 2022 disaster assistance, from eligible applicants, as well as 
submission requirements. Expenses incurred in developing 
preapplications will be at the applicant's cost.

DATES:  Completed preapplications for grants must be submitted 
according to one of the following methods:
     Paper Submissions: The deadline for receipt of a paper 
preapplication is 4:30 p.m. local time, June 5, 2023. Applicants 
intending to mail preapplications must provide sufficient time to 
permit delivery on or before the closing deadline date and time. 
Acceptance by the United States Postal Service or private mailer does 
not constitute delivery. Facsimile (FAX), and postage due applications 
will not be accepted. The preapplication dates and times are firm. The 
Agency will not consider any preapplication received after the 
deadline.
     Electronic submissions: Electronic preapplications must be 
received by email or submitted to Grants.gov. The deadline for receipt 
of an electronic preapplication is 11:59 p.m. Eastern Time on June 5, 
2023. The preapplication dates and times are firm. The agency will not 
consider any preapplication received after the deadline. The Agency 
will not solicit or consider scoring or eligibility information that is 
submitted after the preapplication deadline. The Agency will not 
consider any preapplication received after the deadline. The Agency 
reserves the right to contact applicants to seek clarification 
information on materials contained in the submitted preapplication.

ADDRESSES: Application Submission: Entities wanting to apply for 
assistance may download the preapplication documents and requirements 
as stated in this Notice from the HPG website: https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants. Applicants will also find the requirements in the HPG program 
regulation found in 7 CFR 1944 (Subpart N). Preapplication information 
for electronic submissions may be found at https://www.Grants.gov.
    Applicants may also request paper preapplication packages from the 
RD office in their state. A list of Rural Development State Office 
(RDSO) contacts can be found via: https://www.rd.usda.gov/about-rd/state-offices.

FOR FURTHER INFORMATION CONTACT: Mandy Couture, Finance and Loan 
Analyst, Single Family Housing Direct Division, Special Programs and 
New Initiatives Branch at (515) 418-2188 (voice) (this is not a toll-
free number) or email: [email protected]. You may also contact the 
RD office for the state in which the applicant is located. A list of 
RDSO contacts is provided at: https://www.rd.usda.gov/about-rd/state-offices.

SUPPLEMENTARY INFORMATION: 

Overview

    Federal Awarding Agency Name: Rural Housing Service.
    Funding Opportunity Title: Grant.
    Announcement Type: Notice of Funding Availability (NOFA).

[[Page 24149]]

    Funding Opportunity Number: USDA-RD-HCFP-HPG-2023.
    Assistance Listing: 10.433.
    Dates: Completed preapplications for grants must be submitted 
according to one of the following methods:
     Paper Submissions: The deadline for receipt of a paper 
preapplication is 4:30 p.m. local time, June 5, 2023. Applicants 
intending to mail preapplications must provide sufficient time to 
permit delivery on or before the closing deadline date and time. 
Acceptance by the United States Postal Service or private mailer does 
not constitute delivery. Facsimile (FAX), and postage due applications 
will not be accepted. The preapplication dates and times are firm. The 
Agency will not consider any preapplication received after the 
deadline.
     Electronic submissions: Electronic preapplications must be 
received by email or submitted to Grants.gov. The deadline for receipt 
of an electronic application is 11:59 p.m. Eastern Time on June 5, 
2023. The preapplication dates and times are firm. The agency will not 
consider any preapplication received after the deadline. The Agency 
will not solicit or consider scoring or eligibility information that is 
submitted after the preapplication deadline. The Agency will not 
consider any preapplication received after the deadline. The Agency 
reserves the right to contact applicants to seek clarification 
information on materials contained in the submitted preapplication.
    Rural Development Key Priorities: The Agency encourages applicants 
to consider projects that will advance the following key priorities 
(more details available at https://www.rd.usda.gov/priority-points):
     Reducing climate pollution and increasing resilience to 
the impacts of climate change through economic support to rural 
communities.
     Ensuring all rural residents have equitable access to RD 
programs and benefits from RD funded projects; and
     Assisting rural communities recover economically through 
more and better market opportunities and through improved 
infrastructure.
    For further information, visit https://www.rd.usda.gov/priority-points.

A. Program Description

    1. Purpose of the Program. The HPG program is a grant program 
administered by the Single-Family Housing Programs of RHS. It is 
limited to eligible rural areas and to qualified entities (such as 
public agencies, private non-profit organizations, and federally 
recognized Tribes). Grant funds can be used to assist low- and very 
low-income homeowners in repairing and rehabilitating their homes in 
rural areas.
    The program assists cooperative housing complexes and rental 
property owners in rural areas in repairing and rehabilitating their 
units if they agree to make such units available to very low- and low-
income persons. Rental property owners can include Section 515 and 538 
rental properties if the eligibility requirements are met for the HPG 
program. In accordance with 7 CFR 1944.663, rental property owners must 
agree to make the units repaired or rehabilitated available for 
occupancy to very low- or low-income persons for a period of not less 
than five years. The minimum five-year rent restriction for very low- 
and low-income tenants will only apply to the units that are repaired 
with the HPG funding. Any units within the property that were not 
repaired with HPG funding will not be subject to the five-year 
restriction.
    2. Statutory and Regulatory Authority. Funding is authorized by 
Section 533 of the Housing Act of 1949, as amended and pursuant to the 
Consolidated Appropriations Act, 2023; Public Law 117-328; 42 U.S.C. 
1490m, and 7 CFR 1944, subpart N.
    3. Definitions. The definitions applicable to this notice may be 
found at 7 CFR 1944.656.
    4. Application of Awards. The Agency will review, evaluate, and 
score preapplications in response to this notice based on the 
provisions in 7 CFR 1944.679 and as indicated in this notice.

B. Federal Award Information

    Type of Award: Grants.
    Fiscal Year Funds: FY 2023.
    Available Funds: Approximately $18.5 million is made available to 
eligible participants. Approximately $2.5 million of this funding is 
available for disaster assistance. RHS may at its discretion, increase 
the total level of funding available in this category from any 
available source provided the awards meet the requirements of the 
statute which made the funding available to the Agency.
    Award Amounts: No single entity may be awarded more than \1/2\ of a 
state's allocation if there are two or more preapplications for a given 
state that meet the criteria of 7 CFR 1944.679(a), according to 7 CFR 
1944.680. Award amounts available in FY 2023 State Allocation have not 
been finalized and can be obtained from the RDSO. A maximum award of 
$50,000 is available for disaster assistance with no state maximum for 
awards.
    A list of RDSO contacts is provided at: https://www.rd.usda.gov/about-rd/state-offices.
    Anticipated Award Date: The Agency anticipates making awards 
approximately 120 days after the application deadline.
    Performance Period: 24 months from the executed grant agreement.
    Renewal or Supplemental Awards: None.
    Approximate Number of Awards: The number of awards will depend on 
the number of eligible participants and the total amount of requested 
funds. Based on the Agency's prior experience with this program, it 
expects to make approximately 100-150 awards.

C. Eligibility Information

    1. Eligible Applicants. Potential applicants must meet the 
eligibility requirements of 7 CFR 1944.658. Additionally, potential 
applicants must meet the requirements of 7 CFR 1944.661, 1944.662, and/
or 1944.686 as applicable. Eligible entities for these competitively 
awarded grants include State and local governments, non-profit 
corporations, which may include, but not be limited to Faith-Based and 
community organizations; federally recognized Indian tribes; and 
consortia of eligible entities. HPG applicants who were previously 
selected for HPG funds are eligible to submit new preapplications to 
apply for FY 2023 HPG program funds. An additional HPG grant may be 
made when the grantee has achieved or nearly achieved the goals 
established for the previous or existing grant. . The commitment of 
program dollars will be made to selected applicants who have fulfilled 
the necessary requirements for obligations.
    Preapplications for disaster assistance grants may be utilized for 
calendar year 2022 presidentially declared disaster area(s) only (2022 
presidentially declared disaster areas can be viewed at https://www.fema.gov/disaster/declarations).
    2. Cost Sharing or Matching. Pursuant to 7 CFR 1944.652(a)(1), 
grantees are expected to coordinate and leverage funding for repair and 
rehabilitation activities; as well as replacement housing, with housing 
and community development organizations or activities operating in the 
same geographic area. While it is encouraged that HPG funds be 
leveraged with other resources, cost sharing or matching is not a 
requirement for the HPG applicant as the HPG applicant would not be 
denied an award of HPG funds if all other project selection criteria 
have been met.
    3. Discretionary Points. None.

[[Page 24150]]

    4. Other. Awards made under this Notice are subject to the 
provisions contained in the Consolidated Appropriations Act, 2023 (Pub. 
L. 117-328) Division E Financial Services and General Government 
Appropriations Act, 2023, Title VII General Provisions--Government-
wide, sections 744 and 745, regarding Corporate Felony Convictions and 
Corporate Federal Tax Delinquencies. To comply with these provisions, 
only applicants that are or propose to be, corporations will submit 
Form AD 3030, ``Representations Regarding Felony Conviction and Tax 
Delinquent Status for Corporate Applicants'' as part of their 
preapplication. There are no limits on proposed direct and indirect 
costs. Expenses incurred in developing preapplications will be at the 
applicant's cost.

D. Application and Submission Information

    1. Address to Request Application Package. Entities wanting to 
apply for assistance may download the preapplication documents for this 
Notice from the HPG website: https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants. Application 
information for electronic submissions may be found at https://www.grants.gov.
    Applicants may also request a paper application package from the RD 
office in their state. A list of RDSO contacts can be found via https://www.rd.usda.gov/about-rd/state-offices.
    2. Content and Form of Application Submission. All requirements for 
submission of a preapplication under the Housing Preservation Program 
are subject to 7 CFR 1944, subpart N. If the applicant is ineligible or 
the preapplication is incomplete, the Agency will inform the applicant 
in writing of the decision, reasons therefore, and its appeal rights 
and no further evaluation of the application will occur.
    As specified by 7 CFR 1944.676, the Agency requires applicants to 
submit the following information to make an eligibility determination:
    1. An SF-424, ``Application for Federal Assistance'';
    (i) Made available by contacting any RDSO at the website: https://www.rd.usda.gov/contact-us/state-offices; or
    (ii) Grants.gov at the following website: https://www.grants.gov.
    2. A statement of activities proposed by the applicant for its HPG 
program as appropriate to the type of assistance the applicant is 
proposing, including:
    (i) A complete discussion of the type of and conditions for 
financial assistance for housing preservation, including whether the 
request for assistance is for a homeowner assistance program, a rental 
property assistance program, or a cooperative assistance program.
    (ii) The process for selecting recipients for HPG assistance, 
determining housing preservation needs of the dwelling, performing the 
necessary work, and monitoring/inspecting work performed.
    (iii) A description of the process for coordinating with other 
public and private organizations and programs that provide assistance 
in rehabilitation of historic properties in accordance with 7 CFR 
1944.673.
    (iv) The development standard(s) the applicant will use for the 
housing preservation work; and, if not the RD standards for existing 
dwellings, the evidence of its acceptance by the jurisdiction where the 
grant will be implemented.
    (v) The time schedule for completing the program.
    (vi) The staffing required to complete the program.
    (vii) The estimated number of very low- and low-income minority and 
non-minority persons the grantee will assist with HPG funds; and, if a 
rental property or cooperative assistance program, the number of units 
and the term of restrictive covenants on their use for very low- and 
low-income.
    (viii) The geographical area(s) to be served by the HPG program.
    (ix) The annual estimated budget for the program period based on 
the financial needs to accomplish the objectives outlined in the 
proposal. The applicant can use SF-424A to provide this information.
    (x) A copy of an indirect cost proposal/rate or direct cost policy 
when the applicant has another source of federal funding in addition to 
the RD HPG program.
    (xi) A brief description of the accounting system to be used.
    (xii) The method of evaluation to be used by the applicant to 
determine the effectiveness of its program which encompasses the 
requirements for quarterly reports to RD in accordance with 7 CFR 
1944.683(b) and the monitoring plan for rental properties and 
cooperatives (when applicable) according to 7 CFR 1944.689.
    (xiii) The source and estimated amount of other financial resources 
to be obtained and used by the applicant for both HPG activities and 
housing development and/or supporting activities.
    (xiv) The use of program income if any, and the tracking system 
used for monitoring same.
    (xv) The applicant's plan for disposition of any security 
instruments held by them as a result of its HPG activities in the event 
of its loss of legal status.
    (xvi) Any other information necessary to explain the proposed HPG 
program.
    (xvii) The outreach efforts outlined in 7 CFR 1944.671(b).
    3. Experience. Complete information about the applicant's 
experience and capacity to carry out the objectives of the proposed HPG 
program (7 CFR 1944.676(b)(2)).
    4. Evidence of Legal Existence. Evidence of the applicant's legal 
existence, including, in the case of a private non-profit organization, 
a copy of, or an accurate reference to, the specific provisions of 
state law under which the applicant is organized; a certified copy of 
the applicant's Articles of Incorporation and Bylaws or other evidence 
of corporate existence; certificate of incorporation for applicants 
other than public bodies; evidence of good standing from the state when 
the corporation has been in existence one year or more; and the names 
and addresses of the applicant's members, directors and officers. If 
other organizations are members of the applicant-organization, or the 
applicant is a consortium, preapplications should be accompanied by the 
names, addresses, and principal purpose of the other organizations. If 
the applicant is a consortium, documentation showing compliance with 
paragraph (4)(ii) under the definition of ``organization'' in 7 CFR 
1944.656 must also be included.
    5. Audited and Financial Statements. For a private non-profit 
entity, the most recent audited statement and a current financial 
statement dated and signed by an authorized officer of the entity 
showing the amounts and specific nature of assets and liabilities 
together with information on the repayment schedule and status of any 
debt(s) owed by the applicant. If the applicant is an organization 
being assisted by another private non-profit organization, the same 
type of financial statement should also be provided by that 
organization.
    6. Narrative Statement. A brief narrative statement which includes 
information about the area to be served and the need for improved 
housing (including both percentage and the actual number of both low-
income and low-income minority households and substandard housing), the 
need for the type of housing preservation assistance being proposed, 
the anticipated use of HPG resources for historic properties,

[[Page 24151]]

and the method of evaluation to be used by the applicant in determining 
the effectiveness of its efforts (according to 7 CFR 
1944.676(b)(1)(xii)).
    7. Alleviating Overcrowding Statement. A statement containing the 
component for alleviating any overcrowding as defined by 7 CFR 
1944.656.
    8. List of Other Activities. A list of other activities the 
applicant is engaged in and expects to continue, a statement as to any 
other funding, and whether it will have sufficient funds to assure 
continued operation of the other activities for at least the period of 
the HPG grant agreement.
    9. Project Selection Criteria. Any other information necessary to 
address the selection criteria in 7 CFR 1944.679.
    10. Environmental Compliance Agreement. The applicant must comply 
with the requirements of 7 CFR part 1970 and submit 1970-A Exhibit H 
``Multi-tier Action Environmental Compliance Agreement.''
    11. Public Participation and Intergovernmental Review. 
Intergovernmental Review. In accordance with 7 CFR 1944.674(c), the HPG 
program is subject to the provisions of Executive Order 12372, which 
requires intergovernmental consultation with state and local officials. 
RD conducts intergovernmental consultation as implemented with 2 CFR 
part 415, subpart C. Not all States have chosen to participate in the 
intergovernmental review process. A list of participating States is 
available at the following website: https://www.whitehouse.gov/omb/management/office-federal-financial-management/. Preapplications from 
federally recognized Indian Tribes are not subject to this requirement.
    (i) The applicant must submit written statements and related 
correspondence reflecting compliance with 7 CFR 1944.674(a) regarding 
consultation with local leaders from the county, parish, and/or 
township governments of the area where the HPG activities will take 
place for the purpose of assuring that the proposed HPG program is 
beneficial and does not duplicate current activities. American Indian 
nonprofit organization applicants should obtain the written concurrence 
of the tribal governing body in lieu of consulting with the county 
governments when the program is operated only on tribal land.
    (ii) The applicant is to make its statement of activities available 
to the public for comment prior to submission to RD pursuant to 7 CFR 
1944.674(b). The applicant(s) must announce the availability of its 
statement of activities for review in a print or online newspaper of 
general circulation in the project area and allow at least 15 days for 
public comment. The start of this 15-day period must occur no later 
than 16 days prior to the last day for acceptance of preapplications by 
the Agency. Federally recognized Indian Tribes, pursuant to 7 CFR 
1944.674, should obtain the written concurrence of the tribal governing 
body in lieu of consulting with the county governments when the program 
is operated only on tribal land. The preapplication must contain a 
description of how the comments (if any were received) were addressed.
    12. Equal Opportunity Agreement. The applicant must submit an 
original of Form RD 400-1, ``Equal Opportunity Agreement'' and Form RD 
400-4, ``Assurance Agreement'' in accordance with 7 CFR 1944.676.
    13. RD Instruction 2000-FF. Provided for informational purposes 
during the preapplication period per 7 CFR 1944.673.
    Applicants should review 7 CFR part 1944, subpart N for a 
comprehensive list of all application requirements. Preapplications 
will not be considered for funding if they do not provide sufficient 
information to determine eligibility or are missing required elements.
    Applicants must collect and maintain data provided by recipients on 
race, sex, and national origin and ensure ultimate recipients collect 
and maintain this data as described in 7 CFR 1944.671. Race and 
ethnicity data will be collected in accordance with OMB Federal 
Register notice, ``Revisions to the Standards for the Classification of 
Federal Data on Race and Ethnicity'' (62 FR 58782), October 30, 1997. 
Sex data will be collected in accordance with Title IX of the Education 
Amendments of 1972. These items should not be submitted with the 
application but should be available upon request by the Agency.
    The applicant and the recipient must comply with Title VI of the 
Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, 
the Americans with Disabilities Act (ADA), Section 504 of the 
Rehabilitation Act of 1973, Age Discrimination Act of 1975, Executive 
Order 12250, Executive Order 13166 Limited English Proficiency (LEP), 
and 7 CFR part 1901, subpart E.
    Debarment and suspension information is required in accordance with 
2 CFR 417180 (OMB's Guidelines to Agencies on Governmentwide Debarment 
and Suspension (Nonprocurement) (Non procurement Debarment and 
Suspension) supplemented by 2 CFR 180417 (Nonprocurement Debarment and 
Suspension) if it applies. The section heading is ``What information 
must I provide before entering into a covered transaction with a 
Federal agency?'' located at 2 CFR 180.335. It is part of OMB's 
Guidance for Grants and Agreements concerning Governmentwide Debarment 
and Suspension. Applicants are not eligible if they have been debarred 
or suspended or otherwise excluded from, or ineligible for, 
participation in Federal assistance programs under 2 CFR parts 180 and 
417.
    3. System for Award Management and Unique Entity Identifier.
    (a) At the time of application, each applicant must have an active 
registration in the System for Award Management (SAM) before submitting 
its application in accordance with 2 CFR 25 (https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25). To register in SAM, 
entities will be required to create a Unique Entity Identifier (UEI). 
Instructions for obtaining the UEI are available at https://sam.gov/content/entity-registration.
    (b) Applicant must maintain an active SAM registration, with 
current, accurate and complete information, at all times during which 
it has an active Federal award or an application under consideration by 
a Federal awarding agency.
    (c) Applicant must ensure they complete the Financial Assistance 
General Certifications and Representations in SAM.
    (d) Applicants must provide a valid UEI in its application, unless 
determined exempt under 2 CFR 25.110 (https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25/subpart-A/section-25.110).
    (e) The Agency will not make an award until the applicant has 
complied with all SAM requirements including providing the UEI. If an 
applicant has not fully complied with the requirements by the time the 
Agency is ready to make an award, the Agency may determine that the 
applicant is not qualified to receive a Federal award and use that 
determination as a basis for making a Federal award to another 
applicant.
    4. Submission Dates and Times. The Agency will not solicit or 
consider new scoring or eligibility information that is submitted after 
the preapplication deadline. RHS also reserves the right to ask 
applicants for clarifying information and additional verification of 
assertions in the application.

[[Page 24152]]

    5. Intergovernmental Review. Executive Order (E.O.) 12372, 
``Intergovernmental Review of Federal Programs,'' applies to this 
program. This E.O. requires that Federal agencies provide opportunities 
for consultation on proposed assistance with State and local 
governments. Many states have established a Single Point of Contact 
(SPOC) to facilitate this consultation. For a list of States that 
maintain a SPOC, please see the White House website: https://www.whitehouse.gov/omb/management/office-federal-financial-management/. 
If your State has a SPOC, you may submit a copy of the application 
directly for review. Any comments obtained through the SPOC must be 
provided to your State Office for consideration as part of your 
application. If your state has not established a SPOC, you may submit 
your application directly to the Agency. Applications from Federally 
recognized Indian Tribes are not subject to this requirement.
    6. Funding Restrictions. Applications must be for eligible purposes 
as defined above and must comply with the grant fund limitations found 
within 7 CFR 1944. There are no limits on proposed direct and indirect 
costs. Expenses incurred in developing preapplications will be at the 
applicant's cost.
    7. Other Submission Requirements: None.

E. Pre-Application Review Information

    1. Criteria.
    All eligible and complete preapplications for Section 533 HPG funds 
must be filed with the appropriate RDSO and all paper or electronic 
preapplications must meet the requirements of this Notice and 7 CFR 
part 1944.679. Preapplications determined not eligible and/or not 
meeting the selection criteria will be notified by the RDSO.
    2. Review and Selection Process.
    The Agency reserves the right to offer the applicant less than the 
grant funding requested. RDSOs will utilize the following threshold 
project selection criteria for applicants in accordance with 7 CFR 
1944.679:
    (a) Providing a financially feasible program of housing 
preservation assistance. ``Financially feasible'' is defined as 
proposed assistance which will be affordable to the intended recipient 
or result in affordable housing for very low- and low-income persons.
    (b) Serving eligible rural areas with a concentration of 
substandard housing for households of very low- and low-income.
    (c) Being an eligible applicant as defined in 7 CFR 1944.658.
    (d) Meeting the requirements of consultation and public comment in 
accordance with 7 CFR 1944.674.
    (e) Submitting a complete preapplication as outlined in 7 CFR 
1944.676.
    3. Scoring.
    For applicants meeting all the requirements listed above, the RDSOs 
will use weighted criteria in accordance with 7 CFR part 1944, subpart 
N as selection for the grant recipients. Each preapplication and its 
accompanying statement of activities will be evaluated and, based 
solely on the information contained in the preapplication, the 
applicant's proposal will be numerically rated on each criterion within 
the range provided. The highest-ranking applicant(s) will be selected 
based on allocation of funds available to the state.
    (1) Points are awarded based on the percentage of very low-income 
persons that the applicant proposes to assist, using the following 
scale:

(i) More than 80%: 20 points
(ii) 61% to 80%: 15 points
(iii) 41% to 60%: 10 points
(iv) 20% to 40%: 5 points
(v) Less than 20%: 0 points

    (2) The applicant's proposal may be expected to result in the 
following percentage of HPG fund use (excluding administrative costs) 
to total cost of unit preservation. This percentage reflects maximum 
repair or rehabilitation with the least possible HPG funds due to 
leveraging, innovative financial assistance, owner's contribution, or 
other specified approaches. Points are awarded based on the following 
percentage of HPG funds (excluding administrative costs) to total 
funds:

(i) 50% or less: 20 points
(ii) 51% to 65%: 15 points
(iii) 66% to 80%: 10 points
(iv) 81% to 95%: 5 points
(v) 96% to 100%: 0 points

    (3) The applicant has demonstrated its administrative capacity in 
assisting very low- and low-income persons to obtain adequate housing 
based on the following:
    (i) The organization or a member of its staff has at least one or 
more years of experience successfully managing and operating a 
rehabilitation or weatherization type program: 10 points.
    (ii) The organization or a member of its staff has at least one or 
more years of experience successfully managing and operating a program 
assisting very low- and low-income persons obtain housing assistance: 
10 points.
    (iii) If the organization has administered grant programs, there 
are no outstanding or unresolved audit or investigative findings which 
might impair carrying out the proposal: 10 points.
    (4) The proposed program will be undertaken entirely in rural areas 
outside Metropolitan Statistical Areas (MSAs) identified by RD as 
having populations below 10,000 or in remote parts of other rural areas 
(i.e., rural areas contained in MSAs with less than 5,000 population) 
as defined in 7 CFR 1944.656: 10 points.
    (5) The program will use less than 20 percent of HPG funds for 
administration purposes:

(i) More than 20%: Not eligible
(ii) 20%: 0 points
(iii) 19%: 1 point
(iv) 18%: 2 points
(v) 17%: 3 points
(vi) 16%: 4 points
(vii) 15% or less: 5 points

    (6) The proposed program contains a component for alleviating 
overcrowding as defined in 7 CFR 1944.656: 5 points.
    In the event more than one preapplication receives the same number 
of points, those preapplications will then be ranked based on the 
actual percentage figure used for determining the points in item (1) in 
the ``Scoring'' section of this Notice (7 CFR 1944.679 (b)(1)).
    Example of 1st tie-break:

Both Applicants score 80 points
Applicant X's percentage in ``Scoring'' section item (a) is 65%
Applicant B's percentage in ``Scoring'' section item (a) is 75%
Applicant B is ranked higher than Applicant X
Applicant B will be funded before Applicant X

    Further, if preapplications are still tied, then those 
preapplications still tied will be ranked based on the percentage 
figures used for determining the points in item (2) in the ``Scoring'' 
section of this Notice (7 CFR 1944.679 (b)(2)).
    Example of 2nd tie-break:

Both Applicants score 80 points
Both Applicants percentage in ``Scoring'' section item (a) is 65%
Applicant X's percentage in ``Scoring'' section item (b) is 55%
Applicant B's percentage in ``Scoring'' section item (b) is 60%
Applicant X is ranked higher with a lower percentage than Applicant B
Applicant X will be funded before Applicant B

    Further, 7 CFR 1944.679(c), for preapplications where HPG 
assistance to rental properties or co-ops is proposed, those still tied 
will be further ranked based on the number of years the units are 
available for occupancy under the program (a minimum of five years is

[[Page 24153]]

required). For this part, ranking will be based on most to least number 
of years.
    Example of 3rd tie-break:

Both Applicants score 80 points
Both Applicants percentage in ``Scoring'' section item (a) is 65%
Both Applicants percentage in ``Scoring'' section item (b) is 55%
Applicant X's rental unit will be available for occupancy under the 
program for 10 years
Applicant B's rental unit will be available for occupancy under the 
program for 5 years
Applicant X is ranked higher than Applicant B
Applicant X will be funded before Applicant B

    If any of the applicants that remain tied after the 1st and 2nd 
tie-breaks are offering to assist single family owners, then the 3rd 
tie-break would not be applicable, and a lottery would be used to 
select the applicant to be funded.
    If there is still a tie after the first two (or three, when 
applicable) tie-breaks, then a lottery system will be used to select 
the applicant to be funded. The lottery will be conducted at the 
National Office. The lottery will consist of the names of each 
preapplication with equal scores printed onto a same size piece of 
paper, which will then be placed into a receptacle that fully obstructs 
the view of the names. The Director of the Single-Family Housing Loan 
Division, in the presence of two witnesses, will draw a piece of paper 
from the receptacle. The name on the piece of paper drawn will be the 
applicant to be funded.
    After the award selections are made by the National Office, all 
applicants will be notified of the status of their preapplications by 
email or mail with Form AD-622, ``Notice of Preapplication Review 
Action.'' Applicants will be given their review rights or appeal rights 
in accordance with 7 CFR 1944.682.

F. Federal Award Administration Information

    1. Federal Award Notices.
    The Agency will notify in writing, applicants whose preapplications 
have been selected for funding. At the time of notification, the Agency 
will advise the applicant what further information and documentation is 
required along with a timeline for submitting the additional 
information. If the Agency determines it is unable to select the 
preapplication for funding, the applicant will be informed in writing. 
Such notification will include the reasons the applicant was not 
selected. The Agency will advise applicants, whose preapplications did 
not meet eligibility and/or selection criteria, of their review rights 
or appeal rights in accordance with 7 CFR 1944.682.
    2. Administrative and National Policy Requirements.
    (a) The following additional requirements apply to grantees 
selected for this program:
    (i) Form SF-424, ``Application for Federal Assistance''
    (ii) Form RD 1940-1, ``Request for Obligation of Funds''
    (iii) RD Instruction 1944-N Exhibit A, ``Housing Preservation Grant 
Agreement''
    (iv) Letter of Conditions (if applicable)
    (v) Complete Form RD 1942-46, ``Letter of Intent to Meet 
Conditions'' (if applicable)
    (vi) 1940-Q Exhibit A-1, ``Certification for Contracts, Grants and 
Loans'' (if applicable)
    (vii) Form SF 3881, ``ACH Vendor Payment Enrollment Form''
    (viii) Form SF 270, ``Request for Advance or Reimbursement''
    (ix) Form SF 425, ``Federal Financial Report''
    (x) RD Instruction 1944-N Exhibits E-1 and E-2, ``Quarterly (Final) 
Performance Report'' and ``Quarterly (Final) Performance Report Guide''
    (xi) 1970-B Exhibit D, ``Categorical Exclusion Form''
    (xii) RD Instruction 1944-N Exhibit F-1, ``Grantee's Process for 
Identifying Properties Requiring Rural Development Environmental 
Assessments''
    (xii) FEMA Form 086-0-32, ``Standard Flood Hazard Determination 
Form (SFHDF)''
    (xiv) Execute Form SF-LLL, ``Disclosure of Lobbying Activities'' 
(if applicable)
    The grant recipient must include the required nondiscrimination 
statements in any of their advertisements and brochures. Grantees will 
be required to collect and maintain data provided by recipients on 
race, sex, and national origin and ensure recipients collect and 
maintain this data. Race and ethnicity data will be collected in 
accordance with OMB Federal Register notice, ``Revisions to the 
Standards for the Classification of Federal Data on Race and 
Ethnicity,'' (62 FR 58782), October 30, 1997. Data on recipients' sex 
will be collected in accordance with Title IX of the Education 
Amendments of 1972. These items should not be submitted with the 
application but should be available upon request by the Agency.
    3. Reporting.
    Performance reporting, including applicable forms, narratives, and 
other documentation, are to be completed and submitted in accordance 
with the provisions of 7 CFR 1944.683 and the Grant Agreement. Further, 
all grantees must submit an audit or financial information covering the 
defined period of performance as outlined in 7 CFR 1944.688 and the 
Grant Agreement.

G. Federal Awarding Agency Contact(s)

    For general questions about this announcement, please contact Mandy 
Couture, Finance and Loan Analyst, Single Family Housing Direct 
Division, Special Programs and New Initiatives Branch at (515) 418-2188 
(voice) (this is not a toll-free number) or email: 
[email protected]. The Program website also provides up to date 
contact information at https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants#contact.

H. Other Information

    1. Paperwork Reduction Act. In accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. chapter 35), the information 
collection requirements associated with the programs, as covered in 
this notice, have been approved by the Office of Management and Budget 
(OMB) under OMB Control Number 0575-0157.
    2. National Environmental Policy Act. All recipients under this 
notice are subject to the requirements of 7 CFR part 1970.
    3. Federal Funding Accountability and Transparency Act. All 
applicants, in accordance with 2 CFR part 25, must be registered in SAM 
and have a UEI number as stated in Section D.3 of this notice. All 
recipients of Federal financial assistance are required to report 
information about first-tier sub-awards and executive total 
compensation in accordance with 2 CFR part 170.
    4. Civil Rights Act. All grants made under this notice are subject 
to Title VI of the Civil Rights Act of 1964 as required by the USDA (7 
CFR part 15, subpart A--Nondiscrimination in Federally-Assisted 
Programs of the Department of Agriculture--Effectuation of Title VI of 
the Civil Rights Act of 1964) and Section 504 of the Rehabilitation Act 
of 1973, Title VIII of the Civil Rights Act of 1968, Title IX, 
Executive Order 13166 (Limited English Proficiency), Executive Order 
11246, and the Equal Credit Opportunity Act of 1974.
    5. Nondiscrimination Statement. In accordance with Federal civil 
rights laws and USDA civil rights regulations and policies, the USDA, 
its Mission Areas, agencies, staff offices, employees, and institutions 
participating in or administering USDA programs are prohibited from 
discriminating based on

[[Page 24154]]

race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; the USDA TARGET 
Center at (202) 720-2600 (voice and TTY); or the 711 Relay Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf from any USDA office, by calling (866) 632-
9992, or by writing a letter addressed to USDA. The letter must contain 
the complainant's name, address, telephone number, and a written 
description of the alleged discriminatory action in sufficient detail 
to inform the Assistant Secretary for Civil Rights (ASCR) about the 
nature and date of an alleged civil rights violation. The completed AD-
3027 form or letter must be submitted to USDA by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (2) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2023-08211 Filed 4-18-23; 8:45 am]
BILLING CODE 3410-XV-P