[Federal Register: March 21, 2005 (Volume 70, Number 53)]
[Notices]               
[Page 13975-14024]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21mr05-146]                         
 
[[pp. 13975-14024]] Notice of HUD's Fiscal Year 2005 Notice of Funding Availability 
Policy Requirements and General Section to the SuperNOFA for HUD's 
Discretionary Programs

[[Continued from page 13974]]

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[GRAPHIC] [TIFF OMITTED] TN21MR05.167


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Youthbuild

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Community Planning and Development.
    B. Funding Opportunity Title: Youthbuild.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The OMB approval number for this 
program is 2506-0142. The Federal Register number for this NOFA is FR-
4950-N-04.
    E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.243, 
Youthbuild Program
    F. Dates: The application submission date is on or before June 21, 
2005. Please see the General Section of the SuperNOFA (the General 
Section) for application submission and receipt procedures. Please note 
that this year, all applications must be submitted electronically using 
http://www.grants.gov, as described in Section IV.F of the General 
Section.
    G. Additional Overview Content Information: 1. Purpose of the 
Program. The purpose of the Youthbuild program is to assist 
disadvantaged young adults between the ages of 16 and 24 years of age 
in distressed communities to: (1) Complete their high school education; 
(2) provide on-site construction training experiences which result in 
the rehabilitation or construction of housing for homeless persons and 
low- and very low-income families; (3) foster leadership skills; (4) 
further opportunities for placement in apprenticeship programs; and (5) 
promote economic self-sufficiency for program participants.
    2. Available Funds. Approximately $56,444,800 in appropriated funds 
and carry over is available for Fiscal Year (FY) 2005, plus any funds 
available through recapture, minus any amount needed to correct errors.
    3. Eligible Applicants. Eligible applicants are public or private 
nonprofit organizations that include grassroots community-based 
organizations inclusive of faith-based organizations. For a definition 
of grass-roots community based organizations see Secretarial Policy 
Priority D. Providing Full and Equal Access to Grassroots, Faith-Based 
and other Community-Based Organizations in HUD Program Implementation 
found in the General Section. Other eligible applicants include state 
or local housing agencies or authorities, state or units of local 
government, or any entity eligible to provide education and employment 
training under other federal employment training programs, as further 
defined in HUD's regulation at 24 CFR 585.4.
    4. Match. None.
    If you are interested in applying for funding under this program, 
please carefully review the General Section and the following 
additional information.

Full Text of Announcement

I. Funding Opportunity Description

    A. Program Description. The purposes of the Youthbuild Program are 
to:
    1. Provide economically disadvantaged young adults with 
opportunities to obtain an educational experience that will enhance 
their employment skills, as a means to achieving self-sufficiency;
    2. Foster the development of leadership skills and commitment to 
community;
    3. Expand the supply of permanent affordable housing for homeless 
and low- and very low-income persons by providing implementation grants 
for carrying out a Youthbuild program;
    4. Provide disadvantaged young adults with meaningful on-site 
training experiences in housing construction and rehabilitation that 
will enable them to render a service to their communities by helping to 
meet the housing needs of homeless persons and low-income families; and
    5. Give to the greatest extent possible, job training, employment, 
contracting, and other economic opportunities to low-income young 
adults.
    B. Desirable Elements of a Youthbuild Program. You should document 
the extent to which HUD's initiatives are furthered by the proposed 
activities. Such initiatives include:
    1. Providing increased homeownership and rental opportunities for 
low- and moderate-income persons, persons with disabilities, the 
elderly, minorities, and families with limited English proficiency;
    2. Improving our nation's communities;
    3. Encouraging accessible design features;
    4. Providing full and equal access to grassroots faith-based and 
other community based organizations in HUD program implementation; and
    5. Ending chronic homelessness.
    C. Definitions. The following definitions apply to the Youthbuild 
Program: Rural and Underserved areas are defined as follows:
    1. Rural Area. A rural area is defined in one of five ways:
    a. A non-urban place having fewer than 2,500 inhabitants (within or 
outside of metropolitan areas).
    b. A county or parish with an urban population of 20,000 
inhabitants or fewer.
    c. Territory, including its persons and housing units, in rural 
portions of ``extended cities.'' The Census Bureau identifies the rural 
portions of extended cities.
    d. Open country, which is not part of or associated with an urban 
area. The United States Department of Agriculture (USDA) describes 
``open country'' as a site separated by open space from any adjacent 
densely populated urban area. Open space includes undeveloped land, 
agricultural land or sparsely settled areas but does not include 
physical barriers (such as rivers and canals), public parks, commercial 
and industrial developments, small areas reserved for recreational 
purposes, and open space set aside for future development.
    e. Any place with a population not in excess of 20,000 and not 
located in a Metropolitan Statistical Area.
    2. Underserved Area. An underserved area is defined as an area 
comprised of census tracts with the following economic distress 
criteria:
    a. A census tract where the unemployment remains high (50 percent 
or more above the nation's unemployment rate) and
    b. A census tract where high rates of poverty (50 percent or more 
above the national average) persist.

II. Award Information

    A. Available Funds. Approximately $56,444,800 in funding is made 
available for this FY 2005 Youthbuild NOFA, which includes any carry 
over from previous appropriated funds, plus any FY 2005 funds 
appropriated by Congress. See the General Section for funding amounts 
and available funds.
    B. Authority. This program is authorized under subtitle D of title 
IV of the Cranston-Gonzalez National Affordable Housing Act, as added 
by section 164 of the Housing and Community Development Act of 1992 
(Pub. L. 102-550, 106 Stat. 3723, 42 U.S.C. 12899). The Youthbuild 
Program regulations are found in 24 CFR part 585.
    C. Funding Categories. HUD will award up to $56,444,800 on a 
competitive basis. Funds will be divided among three categories of 
grants as described below. In each fiscal year, the Secretary shall 
reserve five percent of the amounts available for technical assistance 
activities under this subtitle pursuant to section 402 to carry out 
subsections (b) and (c) (Subtitle D-Hope

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for Youth: Section 458 (42 U.S.C. 12899g)).
    1. Category 1 Grants. New Applicants. HUD will award up to 
$10,000,000 for new applicants that have not previously received 
implementation grants since the inception of the Youthbuild Program and 
that have elected not to apply under Category 2 or 3. The maximum 
amount that may be awarded to a successful applicant in this category 
is $400,000, for a period not to exceed 30 months.
    2. Category 2 Grants. Grants up to $700,000. HUD will award up to 
$37,516,800 for grants up to $700,000 for a period not to exceed 30 
months. The maximum amount that may be awarded to a successful 
applicant in this category is $700,000. Any eligible applicant can 
apply in Category 2.
    3. Category 3 Grants. Underserved and Rural Areas. HUD will award 
approximately $8,928,000 for grants to organizations serving clients in 
underserved and rural areas as defined in this NOFA for a period not to 
exceed 30 months. The maximum amount that may be awarded to a 
successful applicant in this category is $400,000.
    4. Selection of Category. Applicants must indicate in their project 
abstract which funding category they are applying for. For Category 3 
applicants, you must designate which definition(s) under Section I.C. 
is (are) applicable.
    5. Grant Period. You must expend funds awarded within 30 months of 
the effective date of the grant agreement.
    6. Maximum Awards. Under the competition established by this 
Youthbuild program section of the SuperNOFA, the maximum award for a 
Youthbuild grant is $700,000 for Category 2 grants. The maximum amount 
of award for Categories 1 and 3 grants is $400,000.

III. Eligibility Information

    A. Eligible Applicants. Eligible applicants are public or private 
nonprofit organizations which include grassroots community-based 
organizations inclusive of faith-based organizations. For a definition 
of grass-roots community based organizations, see Secretarial Policy 
Priority D. Providing Full and Equal Access to Grassroots, Faith-Based 
and Other Community-Based Organizations in HUD Program Implementation 
found in the General Section. Other eligible applicants include state 
or local housing agencies or authorities, states or units of local 
government, or any entity eligible to provide education and employment 
training under other federal employment training programs as further 
defined in HUD's regulation at 24 CFR 585.4.
    B. Cost Sharing or Matching. Under the Youthbuild program, there is 
no match required. Applicants that submit evidence of leveraging 
dollars under Rating Factor 4 ``Leveraging Resources'' will receive 
points under that Factor.
    C. Other. 1. Eligible Activities
    a. Work and activities associated with the acquisition, 
architectural and engineering work, rehabilitation or construction of 
housing, as defined in HUD's regulations at 24 CFR 585.309, 585.310, 
and 585.311.
    b. Relocation payments and other assistance required to comply with 
HUD's regulation at 24 CFR 585.308;
    c. Costs of ongoing training and technical assistance needs related 
to carrying out a Youthbuild program;
    d. Education, job training, counseling, employment, leadership 
development services, and optional activities that meet the needs of 
the participants including entrepreneurial training, driver education, 
apprenticeship opportunities, financial literacy, credit counseling, 
assistance programs for those with learning disabilities, and in-house 
staff training;
    e. Outreach to potential participants;
    f. Wages, benefits, and need-based stipends for participants; and
    g. Administrative costs must not exceed 10 percent of the grant 
award. HUD encourages you to use grant funds for outreach, recruitment, 
training, and other services for the participants that facilitate 
program implementation. Please refer to HUD's regulation at 24 CFR 
585.305 for further details on eligible activities.
    2. Threshold Requirements. All applicants must comply with the 
threshold requirements as defined in the General Section and the 
requirements listed below to receive an award. Applications that do not 
meet these requirements will be considered ineligible for funding and 
will be disqualified.
    a. Eligible Participants. Participants in a Youthbuild program must 
be very low-income high school dropouts between the ages of 16 and 24, 
inclusive, at the time of enrollment. Up to 25 percent of participants 
may be above very low-income, or may be high school graduates (or 
equivalent), but must have educational needs (such as lack of reading, 
writing, and communication skills) that justify their participation in 
the program.
    b. Youthbuild Program Components. Applications that receive 
assistance under this Youthbuild program section of the SuperNOFA must 
contain the three components described as follows:
    (1) Educational and job training services;
    (2) Leadership training, counseling, and other support activities; 
and
    (3) On-site training through actual housing rehabilitation and/or 
new construction work.
    (New construction may be subject to the accessible design and 
construction requirements of the Fair Housing Act [see the General 
Section], including the provision of alternative training experiences 
that are necessary as a reasonable accommodation for students with 
disabilities.)
    c. Identification of and Access to Property. Your application must 
identify the location of the site(s) or property(ies) (e.g., addresses, 
parcel numbers, etc.) that will be used for on-site construction. Your 
application MUST contain a letter from the property owner or property 
management company or companies allowing access to the housing site(s) 
for on-site construction training. HUD will deem as ineligible any 
application that fails to specifically identify the location of the on-
site construction, including evidence of site access. Guidance on 
evidence of site access is as follows:
    (1) If the applicant or joint applicant has a contract or option to 
purchase the property, you should include a copy of the contract or 
option; and
    (2) If a third party owns the property or has a contract or option 
to purchase, that third party must provide a letter to you stating the 
nature of the ownership and specifically providing you with access to 
the property for the purposes of the program and the time frame in 
which the property will be available. In the case of a contract or 
option, include a copy of the document.
    d. Minimum Score. In order to be considered eligible for funding, 
your application must receive a minimum score of 75, including a 
minimum of 10 points in Factor 1.
    e. DUNS Requirement. Refer to the General Section for information 
regarding the DUNS requirement. You will need to obtain a DUNS number 
to receive an award from HUD and submit your application on line using 
http://www.grants.gov.
    f. Civil Rights Threshold Requirement. Applicants must meet all of 
the applicable threshold requirements of Section III.C.2.c of the 
General Section regarding Fair Housing and Civil Rights laws, statutes, 
regulations and Executive orders and enumerated in 24 CFR 5.105(a).
    g. Potential Environmental Disqualification. HUD reserves the right 
to disqualify an application where one or more environmental thresholds 
are exceeded if HUD determines that it cannot conduct the environmental

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review and satisfactorily complete the review within the HUD 
application review period. (See 24 CFR 585.307.) Environmental 
thresholds are explained in Appendix A of this program section of the 
SuperNOFA. Complete form 2C13a, 2C13b, or 2C13c and form 2C15 only if 
you are proposing to use Youthbuild funds for new housing construction, 
rehabilitation, lease or acquisition.
    h. Consistency with Consolidated Plan. You must provide the 
required certification that the proposed activities are consistent with 
the HUD-approved Consolidated Plan in accordance with 24 CFR part 91. 
See the General Section regarding the Certification of Consistency with 
the Consolidated Plan requirement.
    i. If you have received a Youthbuild grant and it is greater than 
24 months old and you have not drawn down at least 50 percent of the 
total HUD grant funds as of the application submission date for this 
NOFA, you will not be eligible to receive a FY 2005 Youthbuild grant.
    3. Program Requirements. In addition to the program requirements 
listed below, applicants must comply with the program requirements in 
Section III.C of the General Section.
    a. Locational Limitations. You may submit more than one application 
in the current competition if your program's participant recruitment 
and housing areas are in different jurisdictions. Each application you 
submit may only propose activities to carry out one Youthbuild program, 
i.e., to start a new Youthbuild program or to fund new classes of 
Youthbuild participants for an existing program.
    b. Site Selection. In determining the site or the location of a 
federally assisted facility, the applicant may not select sites that 
will exclude qualified persons with disabilities, or otherwise subject 
them to discrimination under the Youthbuild program.
    c. New Construction, Substantial Alterations,--Other Alterations. 
If the applicant undertakes to participate in New Construction, 
Substantial Alterations, or Other Alterations, it must conform to the 
accessibility standards outlined in the regulations implementing the 
Rehabilitation Act of 1973 at 24 CFR part 8, Sec. Sec.  8.22, 8.23(a) 
and Sec.  8.23(b).
    d. Training Requirement. Each program must be structured so that 50 
percent of each participant's time is spent in on-site training and the 
other 50 percent in educational training.
    e. Economic Opportunities for Low- and Very Low-Income Persons 
(Section 3). Section 3 of the Housing and Urban Development Act of 
1968, (12 U.S.C. 1701u) is applicable to the Youthbuild program. 
Section 3 requires recipients to ensure that, to the greatest extent 
feasible, training, employment, and other economic opportunities will 
be directed to low- and very-low income persons, particularly those who 
are recipients of government assistance for housing, and business 
concerns which provide economic opportunities to low- and very low-
income persons. The regulations may be found at 24 CFR part 135.
    f. Participation in Local Workforce Investment Act One-Stop Center. 
Youthbuild grantees are mandatory partners in one-stop centers 
authorized by the Workforce Investment Act of 1998 (Pub. L. 105-220).
    g. First time applicants. If you are a first-time applicant 
applying for funding under Category 1, you must have a graduating class 
of not more than 20 participants.
    h. Environmental Reviews. Environmental procedures apply to HUD 
approval of grants when you propose to use Youthbuild funds to cover 
any costs for the lease, acquisition, rehabilitation, or new 
construction of real property proposed for housing project development. 
Environmental procedures do not apply to HUD approval of your 
application when you propose to use your Youthbuild funds solely to 
cover costs for classroom and/or on-the-job construction training and 
support services.
    If you propose to use your Youthbuild funds to cover any costs of 
the lease, acquisition, rehabilitation, or new construction of real 
property, you must submit all relevant environmental information in 
your application to support HUD decisionmaking in accordance with the 
environmental procedures and standards set forth in HUD's regulation at 
24 CFR 585.307.

IV. Application and Submission Information: (See the General Section)

    A. Addresses to Request Application Package: There is no 
application kit for the FY2005 Youthbuild NOFA. This SuperNOFA clearly 
describes the requirements for completing a successful application and 
all forms and certifications needed to complete the application are 
included in the General and Youthbuild Sections of the SuperNOFA, which 
can be downloaded from http://www.Grants.gov/Apply. The Grants.gov web 
site contains the electronic forms and the NOFA which includes forms 
and other attachments. The NOFA and forms are contained in a zipped 
file found under instructions. You many call the Grants.gov Support 
Desk at 800-518-Grants or email the Support Desk at Support@Grants.gov 
for assistance in downloading the application and instructions. The 
Support Desk is open weekdays from 8 a.m. to 9 p.m. Eastern Time, 
except Federal holidays.
    B. Content and Form of Application Submission: Be sure to read the 
application submission instructions in the General Section and below 
carefully.
    1. Response to NOFA Page Limitation. The total narrative response 
to all factors identified in Section V of this program NOFA must not 
exceed 15 single sided pages of text based on an 8.5 by 11 inch paper, 
using a standard 12 point font, with lines double-spaced. Please note 
that submitting pages in excess of the page limit will not disqualify 
your application. However, HUD will not review or consider the 
information on any excess pages.
    2. Application Items. Your application must contain the items 
listed in this section below. These items include the standard forms, 
certifications, and assurances listed in the General Section that are 
applicable to this funding (collectively referred to as the ``standard 
forms''). The standard forms can be found in Appendix A to the General 
Section. The other items listed represent program specific forms or 
information needed to evaluate your application. General letters of 
support not associated with specific cash or in-kind commitments have 
no bearing on the rating of the applications for any rating factor.

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                                                      Required form or
         What to submit           Required content         format                   When to submit it
----------------------------------------------------------------------------------------------------------------
Project abstract...............  Category applying   ..................  Application submission date.
                                  for (if Category
                                  3, specify which
                                  definition(s)
                                  under ``rural and
                                  underserved''
                                  is(are)
                                  applicable);
                                  Amount of funds
                                  requested;
                                  Location of
                                  project,
                                  including census
                                  tract(s); Number
                                  of participants
                                  to be trained;
                                  Number of houses
                                  to be
                                  constructed;
                                  Number of houses
                                  to be rehabbed;
                                  Major partners.
Application Survey on Ensuring   ..................  SF-424, SF-424
 Equal Opportunity for                                supplement.
 Applicants.
Budget information.............  Total Youthbuild    Youthbuild Form 4A
                                  Grant Budget.
Rating Factors: Narrative        Described in
 addressing 5 rating factors.     Section V of this
                                  announcement.
Non-Housing Program Resources    ..................  Youthbuild Form 4B
 and accompanying letters of
 commitment for non-housing
 program resources.
Logic Model Form...............  ..................  HUD-96010.........
Applicant/Recipient Disclosure/  (Per required       HUD-2880..........
 Update Form.                     form).
Disclosure of Lobby Activities   ..................  SF-LLL............
 (if necessary).
Certification of Consistency     ..................  HUD-2990..........
 with RC/EZ/EC-II Strategic
 Plan.
Certification of Consistency     ..................  HUD-2991..........
 with Consolidated Plan.
Acknowledgment of Application    ..................  HUD-2993..........
 Receipt.
Client Comments and Suggestions  ..................  HUD-2994..........
Youthbuild Program Specific      ..................  HUD-40211.........  Application submission date.
 Forms/information (required
 for all applications) Exhibit
 2C (Housing Site Description).
Exhibit 2C10 (Individual
 Housing Project Site)
 Estimate.
Accompanying letters of
 commitment to cover costs of
 lease, acquisition,
 rehabilitation or new
 construction of real property.
Site Access Letter(s).
Youthbuild Program Specific      ..................  ..................  Application submission date.
 Forms (only if applicant
 proposes to use Youthbuild
 funds for lease, acquisition,
 rehabilitation, or new
 construction of real property).
Exhibit 2C13a (Housing Project
 Certifications for Residential
 Rental Units.
Exhibit 2C13b (Housing Project
 Certifications for
 Transitional Housing).
Exhibit 2C13c (Housing Project   ..................  ..................  Application submission date.
 Certifications for
 Homeownership).
Exhibit 2C15 (Environmental
 Threshold Information for a
 Property Proposed for YB
 Funding).
Questionnaire for HUD's          ..................  HUD-27300.........  Application submission date.
 Initiative on Removal of
 Regulatory Barriers.
Facsimile Transmittal..........  To be used when     HUD-96011.........  On or before the application submission
                                  submitting third                        date.
                                  party letters or
                                  other documents
                                  if you are unable
                                  to scan the
                                  documents and
                                  make them
                                  attachments to
                                  your electronic
                                  application.
----------------------------------------------------------------------------------------------------------------

    C. Submission Dates and Times: The application submission date is 
June 21, 2005. Applications must be received by Grants.gov no later 
than 11:59:59 PM Eastern time on the application submission date. 
Applicants that have requested and received a waiver to the electronic 
application submission requirement must submit their application to the 
United States Postal Service no later than 11:59:59 PM on the 
application submission date. Please see the General Section for 
application submission and timely receipt procedures.
    D. Intergovernmental Review. The Youthbuild is subject to 
Intergovernmental Review under Executive Order 12372, 
``Intergovernmental Review of Federal

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Programs.'' See the General Section for further discussion of the 
Executive Order and HUD's implementing regulations.
    E. Funding Restrictions. Administrative costs must not exceed 10 
percent of the grant award.

V. Application Review Information

    The factors for rating and ranking applicants, and maximum points 
for each factor, are provided below. The maximum number of points for 
the program is 102. This includes two RC/EZ/EC-II and USDA designated 
Round II EC bonus points, as described in the General Section. The 
minimum fundable score is 75, including a minimum of 10 points in 
Factor 1.
    A. Rating Factor 1. Capacity of the Applicant and Relevant 
Organizational Experience (20 points, minimum 10 points). This factor 
addresses the qualifications and experience of the applicant and 
participating parties to implement a successful young adult education 
training program in accordance with your work plan as further described 
in Factor 3. HUD will review and evaluate information provided 
documenting recent capability. Experience within the last 5 years will 
be considered recent. In addition, as described in the General Section, 
HUD will take into account the applicant's past performance and may 
deduct points in this rating factor for previous inability to 
demonstrate performance. In reviewing this rating factor, HUD will 
evaluate the following sub-factors:
    1. Team Member Composition and Experience (5 points). Your 
experience and the experience of your project director, core staff 
competencies including your day-to-day program manager, consultants, 
and contractors. You must demonstrate that your program manager has the 
background, experience, and capacity to implement all of the program 
components of the proposed work plan, as evidenced by recent work 
experience (within the last 5 years) in managing projects of the same 
or similar size, dollar amount, types of activities, and beneficiaries 
as those proposed in your work plan. If any gaps exist in your 
experience or organizational structure to carry out the program, 
describe how you will fill those gaps including the hiring of 
consultants or other outside parties.
    2. Organizational Structure (5 points). The structure of your 
organization (include an organizational chart), management structure, 
including reporting relationships of key staff, a system for 
coordinating with outside contractors or third party service providers, 
a mechanism for an internal and external auditing relationship, and an 
accounting system which meets federal accounting system requirements. 
You should provide a clear description of how your organizational 
structure will operate to carry out your work plan.
    3. Achievement of Performance Outcomes (10 points). The objectives 
and accomplishments of your past experience in conducting similar 
activities. You must describe your past project objectives and 
accomplishments that are similar to those of your proposed work plan to 
show your effectiveness and timeliness in managing similar projects. If 
you have received similar grants including previous Youthbuild grants, 
you must describe the effectiveness of your administration, including 
timeliness and meeting performance results from performance reports. In 
addressing timeliness of reports, you must compare when your reports 
were due with when they were actually submitted. You must describe your 
achievements, including specific measurable outcome objectives: number 
of youths recruited, trained, and received GEDs; number of youths 
obtaining jobs (i.e., those that are a part of a career path or 
apprenticeship program); number of youths participating in 
apprenticeships and number of housing units rehabilitated or 
constructed and made available for low- and very low-income persons. 
Previously generated outcomes should include the following: (1) Percent 
entered employment or enrolled in education and/or training first 
quarter after program exit, (2) percent of participants that earned a 
diploma, GED, or certificate, (3) percent that have attained literacy 
and numeracy skills by participants, (4) annual cost per participant.
    Also, you must describe the extent to which you or participating 
partners have been successful in past education, training and 
employment programs and activities, including federally funded 
Youthbuild programs. In applying the rating criteria, HUD will take 
into consideration your performance (including meeting target dates and 
schedules) as reported. The more recent, relevant, and successful the 
experience of the proposed team members, organization and other 
participating entities in relation to the work plan, the greater the 
number of points that you will receive. For previous and existing 
Youthbuild grantees, applicants that can demonstrate a closer and 
greater linkage between the expected outcomes and the previously 
generated outcomes will receive a higher amount of points for this 
Factor. Applicants that have been slow to draw their funds and 
therefore appear to be not making progress in completing their program 
activities, will receive lower rating points than applicants that have 
a pattern and practice of drawing funds in a timely manner consistent 
with timely progress in meeting program activity goals and objectives.
    B. Rating Factor 2: Need/Extent of the Problem (22 Points): This 
Factor addresses the extent to which there is need for funding the 
proposed activities based on levels of distress and an indication of 
the urgency of meeting the need/distress in the applicant's target 
area. In responding to this Factor, applications will be evaluated on 
the extent to which the level of need for the proposed activity and the 
urgency in meeting the need are documented and compared to the target 
area and national data.
    1. In applying this Factor, HUD will consider current levels of 
distress for the area (i.e., Census Tract(s) or Block Groups) 
immediately surrounding the project site or the target area to be 
served by the proposed project, and in the nation. This means that an 
application that provides data that show levels of distress in the 
target area expressed as a percent greater than the national average 
will be rated higher under this Factor.
    Notwithstanding the above, an applicant proposing a project to be 
located outside the target area could still receive points under the 
Distress Factor if a clear rationale and linkage is provided linking 
the proposed project location and the benefits to be derived by persons 
living in more distressed area(s) of the applicant's target area.
    2. Applicants should provide data that address indicators of 
distress, as follows:
    a. Poverty (5 points)--data should be provided in both absolute and 
percentage form (i.e., whole numbers and percentages) for the target 
area(s); an application that compares the local poverty rate in the 
following manner to the national average at the time of submission will 
receive points under this section as follows:
    (1) Less than the national average--0 points.
    (2) Equal to but less than twice the national average--1 points.
    (3) Twice but less than three times the national average--3 points.
    (4) Three or more times the national average--5 points.
    b. Unemployment (5 points)--for the project area;
    (1) Less than the national average--0 points.

[[Page 13983]]

    (2) Equal to but less than twice the national average--1 point.
    (3) Twice but less than three times the national average--2 points.
    (4) Three but less than four times the national average--3 points.
    (5) Four but less than five times the national average--4 points.
    (6) Five or more times the national average--5 points.
    c. High School Dropouts (9 points)--for the project area;
    (1) Less than the national average--0 points.
    (2) Equal to but less than twice the national average--2 points.
    (3) Twice but less than three times the national average--4 points.
    (4) Three but less than four times the national average--6 points.
    (5) Four but less than five times the national average-- 8 points.
    (6) Five or more times the national average--9 points.
    d. Concrete examples of social and/or economic decline that best 
capture the applicant's local situation (3 points). Examples that could 
be provided under this section are information on the community's 
stagnant or falling tax base, including recent commercial or industrial 
closings, housing conditions, such as the number and percentage of 
substandard and/or overcrowded units, rent burden (defined as average 
housing cost divided by average income) for the target area and urgency 
in addressing problems facing youth, local crime statistics, etc.
    3. In rating applications under this Factor, HUD reserves the right 
to consider sources of available objective data, such as the U.S. 
Census, other than, or in addition to, those provided by applicants, 
and to compare such data to those provided by applicants and local 
crime statistics for the project site.
    HUD requires use of sound and reliable data (e.g., U.S. Census 
data, state statistical reports, university studies/reports that are 
verifiable) to support distress levels cited in each application. A 
source for all information along with the publication or origination 
date must also be provided. Updated Census data are available as 
follows for the listed indicators:
    a. Unemployment rate-- estimated monthly, with a two-month lag;
    b. High School Dropout rate using the status rate-1999 data;
    c. Poverty rate--2000 Census data at the tract level.
    C. Rating Factor 3: Soundness of Approach (36 points): This Factor 
addresses the extent to which your proposed program is coordinated with 
other ongoing and related activities in the area you propose to serve 
and how well your program outcomes result in increased independence and 
empowerment to your beneficiaries at the conclusion of the grant 
period. HUD will evaluate the extent to which your application meets 
the following three elements:
    1. Coordination Elements: 5 points as distributed below.
    a. Coordination of activities (2 points). The extent to which you 
have coordinated your activities with other known organizations that 
are not directly in your proposed work activities, but with which you 
share common goals and objectives and are working toward meeting these 
objectives in a holistic and comprehensive manner. The goal of 
coordination is to ensure that programs do not operate in isolation. 
The more your activities are coordinated with other agencies in your 
service area, the more points you will receive. An example of 
coordination of activities would be the applicant's partnership with an 
existing child day care facility (which is not funded by program) that 
provides day care services to the Youthbuild participants during the 
hours they are being trained or receiving education.
    b. Self-Sufficiency (1 point). Describe how your program will 
provide Youthbuild participants the ability to achieve: independent 
living, economic empowerment, educational opportunities, housing choice 
or an improved environment that is free from environmental hazards such 
as lead hazards, brownfields, overcrowded housing, etc. An applicant 
that addresses this subfactor will receive one point.
    c. Sustainability (2 points). For applicants that have not received 
a prior Youthbuild award, describe how your program will be financially 
self-sustaining by decreasing dependence on Youthbuild funding and 
relying more on state, local, and private funding so your activities 
can be continued after your grant award is complete. For previous 
Youthbuild grantees, describe how your program demonstrates a 
progression of reduced reliance on HUD's Youthbuild funds, as either a 
reduced Youthbuild grant amount or increased overall program level with 
Youthbuild as a declining share of the total.
    2. Youthbuild Program Work Plan: For each component, HUD will 
consider the overall quality and feasibility of your proposed work plan 
and budget that must be consistent with the Youthbuild program as 
measured by your specific activities and outcomes. You will receive a 
greater number of points if the program components are consistent with 
the purpose of the Youthbuild program and your project goals and the 
resources provided. Letters describing specific resources or services 
to be contributed by non-applicant organizations must be included in 
your application.
    Specifically, HUD will consider the following categories when 
assessing your proposed work plan:
    a. Program Components. (15 points)
    (1) Outreach strategy, recruitment strategy, and selection 
activities. Points will be awarded based upon overall quality and 
feasibility of the outreach, recruitment and selection activities, the 
number and types of outreach activities, number of youths to be 
recruited including eligible participants who are harder to reach and 
comprehensiveness of the local selection process.
    In evaluating this category, HUD will consider your selection 
strategies and your specific outreach efforts to recruit or contact:
    (a) potential eligible participants who are unlikely to be aware of 
this program (because of race, color, national origin, religion, 
ethnicity, sex, or disability);
    (b) young women, young women with dependent children, and persons 
receiving public assistance; and
    (c) public agencies, courts, homeless shelters, local school 
systems, local workforce development systems, one-stop centers and 
community-based organizations, etc.
    (2) Educational and job training services and activities. Points 
will be awarded based upon the qualifications of instructors and 
proposed wages and stipends for youth participants. In evaluating this 
category, HUD will consider:
    (a) The types of in-class academic and vocational instruction you 
will provide;
    (b) The number and qualifications of program instructors and ratio 
of instructors to participants;
    (c) Scheduling plan for classroom and on-the-job training needed to 
meet program requirements and ensure timely completion of your program; 
and
    (d) Reasonable payments to participants of wages, stipends, and 
incentives. Wages or stipends for on-site construction training must be 
at least federal minimum wage.
    (3) Leadership development. Points will be awarded based upon your 
proposed leadership curriculum, qualifications of instructors, and the 
impact of the proposed leadership activities on the target area. You 
must describe the leadership development training you will offer to 
participants and strategies for providing the training

[[Page 13984]]

to build group cohesion and peer support.
    (4) Support services. You must assess the need for counseling and 
referral services during each stage of program implementation: outreach 
strategy, recruitment strategy, youths interviewed and not selected for 
the program, program participants, youths who drop out of the program, 
and graduates of the program. Describe how the participant needs will 
be addressed, document counseling and referral services to be offered 
to participants, the type of counseling, social services, and/or need-
based stipends you will provide.
    (5) Follow-up assistance and support activities to program 
graduates. You must describe the type of proposed assistance and 
support which should be based upon an assessment of the needs of the 
program graduates and should include continued linkage to the local 
Youthbuild program, counseling, and social service referral services.
    (6) On-site training. Points will be awarded based upon the 
experience of proposed instructors, number of youth to be trained, and 
wages or stipends for participants. HUD will consider:
    (a) The housing construction or rehabilitation activities 
participants will undertake at the site(s) to be used for the on-site 
training component of the program as provided in the training 
curriculum and methodology for carrying out on-site training;
    (b) The qualification and number of on-site supervisors;
    (c) The ratio of trainers to participants;
    (d) The number of participants per site; and
    (e) The amounts, wages, and/or stipends you will pay to 
participants during on-site work. Amounts must be at least federal 
minimum wage.
    b. Strategy for Job Placement. (2 points).
    (1) For applicants that have not received a prior Youthbuild award. 
HUD will evaluate the quality and feasibility of your proposed strategy 
to place youth participants in permanent jobs. You will be rated on the 
following factors: (a) proposed number of youth to obtain jobs that 
promote economic self-sufficiency (i.e., those that are a part of 
career paths or apprenticeship programs); (b) proposed number of youths 
who will continue post-secondary or secondary education; and (c) 
proposed number of youths to receive entrepreneurship training.
    (2) For Youthbuild grantees who have grants that are at least 24 
months old. In addition to the information in section V.C.2.b(1) above, 
provide the actual number of program participants that met each 
criterion in section V.C.2.b(1)(a), V.C.2.b(1)(b) and V.C.2.b(1)(c) as 
a percent of the total program participants served.
    c. Housing Program Priority: (10 points). HUD will assign Housing 
Program Priority points to all applications that contain evidence that 
housing resources from other federal, state, local, or private sources 
are available and firmly committed to cover all costs, in full, for the 
following housing activities for the proposed Youthbuild program: 
acquisition, architect and engineering fees, construction, and 
rehabilitation. Forms 2C, Housing Site Description, and 2C10, 
Youthbuild Grant Individual Housing Project Site Estimate, must be 
completed to receive the Housing Program Priority points. Applications 
that do not include proper documentation of firm financial commitments 
of non-Youthbuild resources or propose to use Youthbuild grant funds, 
in whole or in part, or do not evidence site control, for any one of 
the housing activities listed above will not be entitled to housing 
program priority points. For an applicant to receive the housing 
program priority points, each letter of commitment to cover the costs 
of the above activities must include the following:
    (1) The organization's name;
    (2) the applicant's name;
    (3) the proposed program;
    (4) the proposed amount of commitment and which housing 
activity(ies) (i.e., acquisition, architect and engineering fees, 
construction, and rehabilitation) the commitment represent(s);
    (5) a signature by an official of the organization legally able to 
make commitments on behalf of the organization with a statement 
confirming that the authority remains in effect for a period stated in 
the commitment.
    (6) If the contribution is cash, the applicant, the applicant's 
partner(s) or contributing entity must evidence its financial 
capability through a corporate or personal financial statement or other 
appropriate means. If any portion of the committed activity is to be 
financed through a lending institution, the participant must evidence 
the institution's commitment to fund the commitment.
    (7) Affirm that its investment is contingent only upon receipt of 
FY2005 Youthbuild funds and state a willingness on the part of the 
signatory to sign a legally binding commitment not earlier than the 
date this NOFA is published and (conditioned on HUD's environmental 
review and approval of a property, where applicable) upon award of the 
grant.
    d. Policy Priorities: (4 points). Policy Priorities are further 
defined in the General Section. Applicants should document the extent 
HUD's policy priorities are enhanced by the proposed activities. 
Applicants that include activities that can result in the achievement 
of these departmental policy priorities, as described in the General 
Section, will receive higher rating points in evaluating their 
application for funding. Three departmental policy priorities are 
listed below. Policy Priorities include:
    (1) Ending chronic homelessness (1 point);
    (2) Removal of regulatory barriers to affordable housing (up to 2 
points) (see the General Section for further explanation). You must 
complete Form HUD-27300, Questionnaire for HUD's Initiative on Removal 
of Regulatory Barriers and provide the requested documentation to 
receive points for this policy priority. See the General Section for a 
discussion of how points are allocated.
    (3) Participation in Energy Star (1 point). See the General Section 
for further explanation. Applicants must state how they incorporate 
this priority into their application in order to receive the one point.
    D. Rating Factor 4: Leveraging of Non-housing Resources (10 
Points). This Factor addresses the ability of the applicant to secure 
non-housing resources from its program partners. HUD will evaluate the 
extent to which firm commitments of resources are obtained from 
federal, state, local, private, and nonprofit sources. The applicant 
will receive points based upon the ratio of committed non-HUD resources 
for non-housing activities compared to the amount of Youthbuild funds 
requested in the application. (Exhibit 4B Non-Housing Program Resources 
must be completed and you must provide letters of firm commitment from 
the donor with the amount of cash or in-kind contribution). Applicants 
submitting letters of commitment without the Exhibit 4 completed, will 
not receive points for this Rating Factor. Each commitment described on 
Exhibit 4B for this Factor must have a firm commitment letter. In 
addition, the amount of the commitment in each letter must match the 
amount listed on the Form 4B.
    In assigning points for this criterion, HUD will consider the level 
of resources obtained for cash or in-kind contributions to cover the 
following kinds of areas:

[[Page 13985]]

    [sbull] Social services (i.e., counseling and training);
    [sbull] Use of existing vocational, adult, and bilingual 
educational courses;
    [sbull] Donation of labor, resource personnel, supplies, teaching 
materials, classroom, and/or meeting space.
    1. Firm commitment for non-housing resources. Each letter of 
commitment to cover the costs of the above activities must include the 
following:
    a. the organization's name;
    b. the applicant's name;
    c. the proposed program;
    d. the proposed amount of commitment and which non-housing 
activity(ies) the commitment represent(s);
    e. a signature by an official of the organization legally able to 
make commitments on behalf of the organization with a statement 
confirming that the authority remains in effect for a period stated in 
the commitment;
    f. an affirmation that its investment is contingent only upon 
receipt of FY2005 Youthbuild funds and a statement of willingness on 
the part of the signatory to sign a legally binding commitment not 
earlier than the date this NOFA is published.
    2. Resources from other federal, state, local governments, or 
private entities. HUD encourages use of existing federal, state, local 
governments, or private and nonprofit housing programs as part of your 
Youthbuild program. In addition, HUD encourages use of other non-
Youthbuild funds available for vocational, adult, and bilingual 
education programs, or for job training under the Workforce Investment 
Act and the Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996 (48 U.S.C. 1601 et seq.).
    E. Rating Factor 5: Achieving Results and Program Evaluation (12 
Points). This factor emphasizes HUD's commitment to ensuring that 
applicants keep promises made in their application to rigorously assess 
their performance and ensure performance goals are met. Achieving 
results means you, the applicant, have clearly identified the benefits, 
or outcomes of your program. Outcomes are ultimate goals. Benchmarks or 
outputs are interim activities or products that lead to the ultimate 
achievement of your goals. Performance measurement requires that you, 
the applicant, identify program outcomes, interim products or 
benchmarks, and performance indicators that will allow you to assess 
your performance. Performance indicators must be quantified and measure 
actual achievements against anticipated achievements. You should 
identify what you are going to measure, how you are going to measure 
it, and the steps you have in place to make adjustments to your work 
plan if performance targets are not met within established timeframes. 
Applicants are required to address this factor as a narrative as well 
as complete the Logic Model form (see appendix to the General Section). 
This rating factor reflects HUD's goal to embrace high standards of 
ethics, management and accountability. HUD's evaluation of this rating 
factor will be based upon your Logic Model performance measures, 
results, and timeframes consistent with your program description, 
budget, resources, and program design.
    At a minimum, your Logic Model must include the following program 
outcomes:
    [sbull] Number of participants enrolled in the program;
    [sbull] Number of participants that graduate;
    [sbull] Number of housing units constructed;
    [sbull] Number of housing units rehabilitated;
    [sbull] Number and percent of GED's or certificates attained by 
participants (for percentage calculation, numerator: the number of 
participants who attain a diploma, GED or certificate; denominator: 
those who are participating in the Youthbuild program).
    [sbull] Number and percent of graduates placed in employment or 
education (for percentage calculation, numerator: the number of 
participants who have entered employment or enrolled in post secondary 
education; denominator: the number of graduates from the Youthbuild 
program); and
    [sbull] Number and percentage of graduates who made literacy and 
numeracy gains (measures the increase in literacy and numeracy skills 
of participants through a common assessment tool administered at 
program registration and regular intervals thereafter); for percentage 
calculation, numerator: the number of Youthbuild program participants 
who increase one or more education functioning levels; denominator: the 
number of Youthbuild program participants who have completed a year in 
the program).
    [sbull] Efficiency or annual cost per participant (numerator: grant 
amount; denominator: number of Youthbuild participants.)
    An applicant should agree to cooperate with any HUD-approved 
evaluation by making staff available for interview, providing lists of 
participants and their contact information, and making available files 
under appropriate assurance of confidentiality of records.

VI. Reviews and Selection Process

A. Rating and Ranking

    1. General. To review and rate applications, HUD may establish 
panels including officials from other federal agencies and outside 
experts or consultants to obtain certain expertise and other outside 
points of view.
    2. Rating. All applications for funding will be evaluated against 
the rating factors described in Section V. of this NOFA.
    3. Ranking. Applications will be ranked separately within each of 
the three funding categories. Applications will be selected for funding 
in accordance with their rank order in each category.
    4. Eligibility for Selection. To be eligible for funding, an 
application must have an overall minimum score of 75 points, including 
a minimum score of 10 points in Factor 1. If two or more applications 
are rated fundable and have the same score, but there are insufficient 
funds to fund all of them, HUD will select the application(s) with the 
highest score for Rating Factor 3 (Soundness of Approach). If two or 
more applications still have the same score, the highest score in the 
following factors will be selected sequentially until one highest score 
can be determined: Rating Factor 1 (Capacity of the Applicant and 
Relevant Organization); Rating Factor 4 (Leveraging of Resources) and 
Rating Factor 2 (Need/Extent of the Problem).
    5. Adjustments to Funding. HUD reserves the right to utilize this 
year's funding to fund previous years' errors prior to rating and 
ranking this year's applications. Any available funds that remain after 
all applications within funding range have been selected or obligated 
will be reallocated between categories 1 and 2 by rank order between 
applications at the discretion of the selecting official or designee. 
Category 3 funds are appropriated as a set-aside, and can not be 
reallocated.
    6. Corrections to Deficient Applications. The General Section 
provides the procedures for corrections to deficient applications.
    B. Anticipated Announcement and Award Dates. HUD anticipates making 
award announcements no later than four months after the application 
submission deadline date.

VII. Award Administration Information

A. Award Notices

    1. Notification of Approval or Disapproval. HUD will notify you

[[Page 13986]]

whether or not you have been selected for an award. If you are 
selected, HUD's notice to you of the amount of the grant award based on 
the approved application will constitute HUD's CONDITIONAL approval, 
subject to negotiation and execution of the grant agreement by HUD.
    2. Application Debriefing. Applicants who wish to have a debriefing 
of their application must send a written or email request (see the 
General Section) to: Mr. Mark A. Horwath, Director; Youthbuild Program; 
Office of Economic Development; Office of Community Planning and 
Development; 451 Seventh Street, SW., Room 7149; Washington, DC 20410-
7000 or e-mail address Mark--A.--Horwath@hud.gov. Debriefing 
information can be found in the General Section of the SuperNOFA.

B. Administrative and National Policy Requirements

    1. Applicable OMB Circulars. Please refer to the General Section 
for information regarding applicable OMB Circulars.
    2. Applicable Executive Orders and Statutes. Please note that 
Executive Order 13202 may apply to your program (see the General 
Section) and Section 6002 of the Solid Waste Disposal Act covering the 
procurement of recovered materials may also be applicable (see the 
General Section.)
    3. Executive Order 13166, Improving Access To Services For Persons 
With Limited English Proficiency (LEP). Consistent with Executive Order 
13166, ``Improving Access to Services for Persons with Limited 
Proficiency (LEP),'' issued on August 11, 2000, all HUD recipients 
should take reasonable steps to provide certain materials and 
information available in languages other than English. The 
determination as to what materials, languages, and modes of 
translation/interpretation services should be used shall be based upon:
    a. The specific needs and capabilities of the LEP populations among 
the award recipient's program beneficiaries and potential beneficiaries 
of assistance (e.g. tenants, community residents, counselees, trainees, 
etc.)
    b. The recipient's primary and major program purposes;
    c. Resources of the recipient and size of the program; and
    d. Local housing, demographic, and community conditions and needs. 
HUD's LEP recipient Guidance has been published in the Federal Register 
on December 19, 2003 and further guidance may be found at http://
www.lep.gov.
    4. Reporting Requirements:
    a. Progress reports and Logic Model reporting. Youthbuild grantees 
are required to submit progress reports to the appropriate HUD field 
office in accordance with 24 CFR Part 585.403, using HUD Form 40201. 
Should you receive a FY 2005 Youthbuild award, you will be required to 
update your Logic Model periodically, addressing the time schedule, 
accomplishments to date and results and submit it to HUD in conjunction 
within the timeframes established for the Youthbuild progress reports.
    b. Racial and Ethnic Data reporting. HUD requires that funded 
recipients collect racial data and ethnic beneficiary data. It has 
adopted the Office of Management and Budget's Standards for the 
Collection of Racial and Ethnic Data. In view of these requirements, 
you should use form HUD-27061, Racial and Ethnic Data Reporting Form 
(instructions for its use), found on http://www.HUDclips.org., a 
comparable program form, or a comparable electronic data system for 
this purpose.

VIII. Agency Contact(s)

    For technical assistance in downloading an application package from 
Grants.gov/Apply, contact the Grants.gov help desk at 800-518-Grants or 
by sending an e-mail to support@grants.gov.
    For programmatic information concerning the HUD Youthbuild program, 
contact Ms. Phyllis Williams, Community Planning and Development 
Specialist; Office of Economic Development; Office of Community 
Planning and Development; U. S. Department of Housing and Urban 
Development; 451 Seventh Street, SW., Room 7149; Washington, DC 20410-
7000; telephone (202) 708-2035 (this is not a toll-free number). 
Persons with speech or hearing impairments may access this number via 
TTY by calling the toll-free Federal Information Relay Service at 800-
877-8339. Prior to the application deadline, HUD's staff will be 
available to provide general guidance on the application submission 
process and location of information, but not guidance in preparing your 
application.
    A. Satellite Broadcast. HUD will hold an information broadcast via 
satellite for potential applicants to learn more about the program and 
preparation of an application. For more information about the date and 
time of this broadcast, you should consult the HUD Web site at http://
www.hud.gov.
    B. Paperwork Reduction Act: The information collection requirements 
contained in this document have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3520) and assigned OMB control number 2506.0142. In 
accordance with the Paperwork Reduction Act, HUD may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a currently valid OMB 
control number. Public reporting burden for the collection of 
information is estimated to average 45 hours per annum per respondent 
for the application and grant administration. This includes the time 
for collecting, reviewing, and reporting the data for the application, 
semi-annual reports, and final report. The information will be used for 
grantee selection and monitoring the administration of funds. Response 
to this request for information is required in order to receive the 
benefits to be derived.

Appendix A

Instructions for Completion of Youthbuild

Environmental Requirements

(Exhibit 2C(15))

A. Instructions to Applicants

    1. If you propose to use Youthbuild funds to cover any costs of 
the lease, acquisition, rehabilitation, or new construction or real 
property, you shall submit all relevant environmental information in 
your application to support HUD decisionmaking in accordance with 
the environmental procedures and standards described in 24 CFR 
585.307. For each proposed Youthbuild property for which HUD 
environmental procedures apply, you are to prepare a separate 
Exhibit 2C(15) in which you supply HUD with environmental threshold 
information and letters from qualified data sources (see definition 
below) which support the information. HUD will review your 
submission and determine how, if necessary, HUD will comply with any 
federal laws and authorities that may be applicable to your property 
proposed for Youthbuild funding. If environmental procedures apply 
and Exhibit 2C(15) with supporting documentation is not included 
then the application will be deemed ineligible.
    You are to follow these instructions for preparing Exhibit 
2C(15). The instructions advise you on how to obtain and document 
certain information to be supplied to HUD in this exhibit. Before 
selecting a property for Youthbuild funding, you should read these 
instructions and be advised that HUD encourages you to select, to 
the extent practicable, properties and locations that are free of 
environmental hazards and problems discussed in these instructions. 
The responses to the environmental criteria in Exhibit 2C(15) will 
be used to determine environmental approval or disapproval by HUD of 
proposals for physical development of properties.
    2. After selecting a property for proposed Youthbuild funding, 
you are to determine the activities to be undertaken with your 
Youthbuild funds. You are to indicate in Section E whether the 
Youthbuild funds will be used for:

[[Page 13987]]

    a. Lease or purchase of a property;
    b. Minor rehabilitation;
    c. Major rehabilitation; or
    d. New construction of housing.
    The activities proposed for Youthbuild funding will determine 
the kind of data that you will need to obtain from a qualified data 
source in order to complete Exhibit 2C(15).
    3. Once you have selected a property and determined the 
activities for Youthbuild funding, you are advised to check with 
your city or county agency that administers HUD's Community 
Development Block Grant program and performs environmental reviews, 
or the local planning agency. This course of action is recommended 
in view of the fact that most, if not all of the data needed for 
preparing Exhibit 2C(15) is readily available from the local 
community development agency and the local planning agency. You are 
advised to ask the environmental staff of those agencies the 
following questions:
    a. Has the agency ever prepared an environmental review of the 
proposed Youthbuild property or the neighborhood in which the 
property is located, and if so, would it provide a copy to the 
applicant for use by HUD;
    b. Would the agency assist you in completing section G; or if 
the agency is not able to help complete any item in section G, would 
the agency advise you which local or state agency is the appropriate 
qualified data source for obtaining the information.
    Also, you should check with the local planning agency before 
proceeding elsewhere for the information.
    You are advised that the cost of preparing information and 
analyses needed for Exhibit 2C(15) is an eligible cost under the 
Youthbuild program and is reimbursable if you are approved for a 
grant.
    4. Key terms used in these instructions are defined in the 
following section. Most of the other terms are technical and their 
definition would be known to qualified data sources.
    a. Qualified data source means any federal, state, or local 
agency with expertise or experience in environmental protection 
(e.g., the local community development agency; the land planning 
agency; the state environmental protection agency; the State 
Historic Preservation Officer) or any other source qualified to 
provide reliable information on the particular subject. Please 
attach a letter supporting the information from each qualified data 
source to Exhibit 2C(15).
    b. Minor rehabilitation refers to proposed repairs and 
renovations to
    (1) A building for residential use (with one to four units):
    (a) Where the density is not increased beyond four units;
    (b) Where the land use is not changed; and
    (c) Where the footprint of the building is not increased in a 
floodplain or in a wetland; or
    (2) A multifamily residential building (with more than four 
units):
    (a) Where the unit density is not changed more than 20 percent;
    (b) Where the land use is not changed to non-residential; and
    (c) Where the estimated cost of rehabilitation is less than 75 
percent of the total estimated cost of replacement after 
rehabilitation.
    c. Major rehabilitation refers to proposed repairs and 
renovations to:
    (1) An existing building for residential use with one to four 
units:
    (a) Where the density is increased beyond four units;
    (b) That involves changes in land use; or
    (c) Where the footprint of the building is increased in a 
floodplain or in a wetland.
    (2) An existing multifamily building (with five or more units):
    (a) Where the estimated cost of the work is 75 percent or more 
of the estimated cost of replacement after completion;
    (b) That involves changes in land use from residential to 
nonresidential, or from nonresidential to residential; or
    (c) That increases unit density by more than 20 percent.
    d. Multifamily housing means any residential building that 
contains five or more apartments or rooming units.
    e. Single family housing means any residential building that 
contains one-to-four dwelling units.
    Because each federal environmental law or authority has 
compliance requirements that differ according to the type of 
proposed activity to be funded, you are required to supply 
information in Exhibit 2C(15) only for the type of activity for 
which the Youthbuild grant will be used.
    f. If you propose new construction or major rehabilitation of 
multifamily housing or major rehabilitation of single family 
housing, you must supply complete and reliable environmental 
threshold information for items 1 through 13 in section G.
    g. If you propose new construction of single family housing, you 
must supply complete and reliable environmental threshold 
information for items 1 through 12 in section G.
    h. If you propose minor rehabilitation of multifamily or single 
family housing, or the purchase or lease of a property, you must 
supply complete and reliable environmental threshold information for 
items 1 through 7 in section G.
    5. Applicants subject to HUD's environmental procedures are to 
submit Exhibit 2C(15) and accompanying documentation to HUD with the 
applications for grant assistance. Such applicants are prohibited 
from committing or expending state, local, or other funds in order 
to undertake property rehabilitation, construction (including 
demolition), or acquisition (including lease), until HUD and the 
grantee execute a grant agreement for the proposed Youthbuild 
project.
    6. HUD reserves the right to disqualify any application where 
one or more environmental thresholds are exceeded if HUD determines 
that the compliance review cannot be conducted and satisfactorily 
completed within the HUD review period for Youthbuild applications.

B. Environmental Threshold and Documentation Requirements

    The threshold and documentation requirements for each of the 
federal environmental laws and authorities are described below, 
following the same order as they appear in section G.

1. Site Within Designated Coastal Barrier Resources

    Threshold: Youthbuild applicants are prohibited by federal law 
from using federal financial assistance for properties if the 
properties are located within designated coastal barriers of the 
Atlantic Ocean, Gulf of Mexico, and the Great Lakes (Coastal Barrier 
Resources Act, 16 U.S.C. 3501).
    * Documentation: You are to select either A or B for the 
condition that best describes the property and report the option 
selected in item 1 of section G.
    A. Your program operates in a community that does not contain 
any shores along the Atlantic Ocean, the Gulf of Mexico, or the 
Great Lakes.
    B. Your program operates in a community that does contain shores 
along the Atlantic Ocean, the Gulf of Mexico, or the Great Lakes. 
You must provide HUD with a finding made by a qualified data source 
stating that the proposed property is not located within a 
designated coastal barrier resource by citing the map panel number 
of the official maps issued by the Department of the Interior (DOI) 
on the basis of which the finding was made.

2. Site Contaminated With Toxic Chemicals and Radioactive Materials

    Threshold: Under HUD policy, as described in 24 CFR 50.3 (i), 
HUD will not approve the provision of financial assistance to 
residential properties on sites where contamination could affect the 
health and safety of occupants or conflict with the intended 
utilization of the property. Sites known or suspected to be 
contaminated by toxic chemicals or radioactive materials include, 
but are not limited to, sites: (i) listed on either an EPA Superfund 
National Priorities List (NPL) or CERCLA (Comprehensive 
Environmental Response, Compensation, and Liability Act) List, or 
equivalent state list; (ii) located within 3,000 feet of a hazardous 
or solid waste landfill site; or (iii) with an underground storage 
tank (which is not a residential fuel tank).
    * Documentation: You are to select either A or B for the 
condition that best describes property and report the option 
selected in item 2 of section G.
    A. You are providing HUD with a finding made by a qualified data 
source stating that the proposed Youthbuild property and any 
neighboring properties do not contain any sites known or suspected 
to be contaminated with toxic chemicals and radioactive materials.
    B. You are providing any site contamination data by a qualified 
data source in your letter for HUD's evaluation of contamination 
and/or suspicion of any contamination of a proposed property or any 
neighboring properties.

3. Site Affecting a Floodplain

    Threshold: A property located within a floodplain and proposed 
for funding is subject to Executive Order 11988, Floodplain 
Management. The Executive Order directs HUD to avoid, where 
practicable, proposed financial support for any floodplain property,

[[Page 13988]]

whenever HUD has options to approve properties in flood-free 
locations. The Order does not apply to existing single family 
properties proposed for purchase or lease except for: (a) Property 
that is located within a floodway or coastal high hazard area; and 
(b) substantial improvement. Substantial improvement for flood 
hazard purposes means any property rehabilitation which: (i) 
increases the unit density of the property; or (ii) equals or 
exceeds 50 percent of the market value of the property before 
rehabilitation, but excluding the costs for correcting health, 
sanitary, and safety code violations. Note: Proposed funding for 
substantial improvement and new construction are subject to the 
Executive Order decisionmaking process. This may result in a 
disqualification of your application (refer above to number 7 under 
``Instructions to Applicants'').
    * Documentation: You are to select A or B for the condition that 
best describes your property and report the option selected in item 
3 of section G.
    A. You are providing HUD with a finding made by a qualified data 
source stating that the property is not located within the Special 
Flood Hazard Area (SFHA).
    B. You are providing HUD with a finding made by a qualified data 
source that the property is located within the Special Flood Hazard 
Area (SFHA) and indicating if the property is located within a 
floodway or coastal high hazard area.
    The information for A and B must provide HUD with the flood map 
panel number obtained either from the official maps issued for the 
National Flood Insurance Program or from the property appraisal 
report used to make the finding.
    For all proposed rehabilitation of properties that are located 
within a SFHA, you must provide HUD with estimates of: (1) the 
property value before rehabilitation, and (2) the cost of the 
proposed rehabilitation. Provide the estimates in section F.
    If the property is found to be located within a SFHA, proceed to 
item 4 on flood insurance protection. Otherwise proceed to item 5.

4. Building Requiring Flood Insurance Protection

    Threshold: HUD will estimate the amount and period of flood 
insurance coverage that is to be made a condition of approval of any 
HUD financial assistance for a building located within a Special 
Flood Hazard Area (SFHA). The Flood Disaster Protection Act of 1973 
requires owners of HUD-assisted buildings to purchase and maintain 
flood insurance protection as a condition of approval of any HUD 
financial assistance for the proposed purchase, rehabilitation, or 
new construction of any SFHA building. The law prescribes the 
coverage period and dollar amount of flood insurance protection.
    Proof of Purchase of Flood Insurance Protection: You must 
provide HUD with proof of purchase of flood insurance protection for 
any proposed Youthbuild building located within the SFHA, whenever 
HUD funding is being used for property purchase, rehabilitation, or 
new construction. The standard documentation for compliance is the 
Policy Declarations form issued by the National Flood Insurance 
Program (NFIP) or issued by any property insurance company offering 
coverage under the NFIP. Whenever the requirement applies to 
coverage that extends to future years, the grant agreement will 
require that the insured have its insurer automatically forward to 
HUD, in the same manner as to the insured, an information copy of 
the Policy Declarations form, which is used to verify compliance.
    * Documentation: You are to select either A or B for the 
condition that best describes your property and report the option 
selected in item 4 of section G.
    A. You already own the property and attach a copy of the Policy 
Declarations form confirming that a current flood insurance policy 
is in effect and the policy provides adequate coverage for the 
building proposed for the Youthbuild project located within the 
Special Flood Hazard Area.
    B. After you have purchased (or constructed, in the case of 
proposed new construction) the Youthbuild property, you must obtain 
and maintain flood insurance protection. For the term and amount of 
coverage prescribed by law, you must provide HUD with a copy of the 
Policy Declarations form confirming that the flood insurance policy 
is in effect and the policy provides adequate coverage for the 
Youthbuild building located within the Special Flood Hazard Area.

5. Site Within Clear Zones or Accident Potential Zones of Airports and 
Airfields

    Threshold: HUD policy as described in 24 CFR part 51, subpart D 
applies to HUD approval of financial assistance to: (a) properties 
located within clear zones; and (b) in the case of new construction 
or major rehabilitation, properties located within accident 
potential zones.
    (a) Clear zones: New construction and major rehabilitation of a 
property that is located on a clear zone site is prohibited. HUD 
financial assistance in a clear zone is allowed only for the 
proposed lease, purchase, or minor rehabilitation of properties (24 
CFR 51.302(a)). For HUD funding approval for any property in a clear 
zone: (a) HUD will give advance written notice to the prospective 
property buyer in accord with 24 CFR 51.303(a)(3); and (b) a copy of 
the HUD notice signed by the prospective property buyer will be 
placed in the property file. The written notice informs the 
prospective property buyer of: (i) the potential hazards from 
airplane accidents, which studies have shown more likely to occur 
within clear zones than in other areas around the airport/airfield; 
and (ii) the potential acquisition by airport or airfield operators, 
who may wish to buy the property at some future date as part of a 
clear zone acquisition program.
    (b) Accident potential zones: For properties located within the 
accident potential zone (APZ), HUD shall determine whether the use 
of the property is generally consistent with Department of Defense 
``Land Use Compatibility Guidelines for Accident Potential Zones.''
    * Documentation: You are to select either A or B for the 
condition that best describes your property and report the option 
selected in item 5 of section G.
    A. The property is not located within 3,000 feet of a civil 
airport or military airfield.
    B. If your property is located within 3,000 feet of a civil 
airport or military airfield, you must provide HUD with a finding 
from the airport operator stating whether or not the property is 
located within a runway clear zone at a civil airport, or a clear 
zone or accident potential zone at a military airfield.
    For properties that are located within a runway clear zone or a 
clear zone or accident potential zone, if you propose to 
rehabilitate such a property you must provide HUD with estimates of: 
(i) the cost of the proposed rehabilitation, and (ii) the property 
value after completion of the rehabilitation. The estimates are to 
be provided in section F.

6. Site Is or Affects an Historic Property

    Threshold: Only if a property is proposed for rehabilitation or 
new construction must HUD in consultation with the State Historic 
Preservation Officer (SHPO), and following the Department of the 
Interior's Standards and Guidelines for Evaluation, make a 
determination whether the property is:
    a. Listed on or formally determined to be eligible for listing 
on the National Register of Historic Places;
    b. Located within or directly adjacent to an historic district; 
or
    c. A property whose area of potential effects includes an 
historic district or property.
    Historic properties and districts are subject by law to special 
protection and historic preservation processing, which HUD must 
perform to comply with the regulations of the Advisory Council on 
Historic Preservation (ACHP: 36 CFR part 800). Note: If you are 
using information from the SHPO as a qualified data source you need 
to allow sufficient time to obtain the information from the SHPO. 
You may wish to make special arrangements with the SHPO for rapid 
review of the proposed property where this is practicable. In 
addition, for properties determined to be historic properties, HUD 
will require 30 to 90 days in most cases for HUD to perform historic 
preservation compliance with the ACHP regulations. This may result 
in a disqualification of the application (refer above to number 7 
under ``Instructions to Applicants'').
    * Documentation: You are to select one of the following options 
that best describes the condition of your property and report the 
option selected in item 6 of section G.
    A. You propose financial assistance for rehabilitation or new 
construction, and are providing HUD with a SHPO's finding that the 
proposed Youthbuild activity:
    1. Is located within an area where there are no historic 
properties; or
    2. Will have no effect on historic properties; or
    3. Will have an effect on historic properties not considered 
adverse
    B. You propose financial assistance for rehabilitation or new 
construction, and are providing HUD with a SHPO's finding that the 
proposed Youthbuild activity will have an adverse effect on historic 
properties.
    C. You are providing HUD with a copy of a letter from the SHPO 
stating any reason for not being able to provide you with the 
requested information and finding.

[[Page 13989]]

7. Site Near Hazardous Industrial Operations

    Threshold: Properties that are located near hazardous industrial 
operations handling fuels or chemicals of an explosive or flammable 
nature are subject to HUD safety standards (24 CFR 51, subpart C). 
However, under the Youthbuild program, these standards would apply 
only if you propose: (a) Construction of a building; (b) conversion 
of a non-residential land use to a residential land use including 
making habitable a building condemned for habitation; or (c) 
rehabilitation that increases the density of a residential structure 
by increasing the number of dwelling or rooming units. In the case 
of tanks containing common liquid fuels, the requirement for an 
acceptable separation distance (ASD) calculation only applies to 
storage tanks that have a capacity of more than 100 gallons.
    * Documentation: You are to select one of the following options 
that best describes the condition of the property, and report the 
option selected in item 7 of section G.
    A. The proposed project does not include: (1) Construction of a 
building; (2) conversion of a non-residential land use to a 
residential land use including making habitable a building condemned 
for habitation; or (3) rehabilitation that increases the density of 
a residential structure by increasing the number of dwelling or 
rooming units.
    B. The proposed project includes: (1) Construction of a 
building; (2) conversion of a non-residential land use to a 
residential land use including making habitable a building condemned 
for habitation; or (3) rehabilitation that increases the density of 
a residential structure by increasing the number of dwelling or 
rooming units; and you are providing HUD with a finding by a 
qualified data source that the proposed property is not located 
within the immediate vicinity of hazardous industrial operations 
handling fuel or chemicals of an explosive or flammable nature by 
citing data used and the maps used.
    C. The applicant proposes: (1) Construction of a building; (2) 
conversion of a non-residential land use to a residential land use 
including making habitable a building condemned for habitation; or 
(3) rehabilitation that increases the density of a residential 
structure by increasing the number of dwelling or rooming units. The 
grantee provides HUD a finding made by a qualified data source 
stating: (1) That the proposed property is located within the 
immediate vicinity of hazardous industrial operations handling fuel 
or chemicals of an explosive or flammable nature; (2) the type and 
scale of such hazardous industrial operations; (3) the distance of 
such operations from the proposed property; (4) a preliminary 
calculation of the acceptable separation distance (ASD) between such 
operations and the proposed property; and (5) a recommendation as to 
whether it is safe to use the property in accord with 24 CFR part 
51, subpart C.

8. Site Near High Noise Source

    Threshold: For new construction that is to occur in high noise 
areas (i.e., exceeding 65 decibels), applicants shall incorporate 
noise attenuation features to the extent required by HUD 
environmental criteria and standards contained in subpart B (Noise 
Abatement and Control) of 24 CFR part 51. Approvals in a Normally 
unacceptable noise zone require a minimum of 5 decibels additional 
sound attenuation for buildings having noise-sensitive uses if the 
day-night average sound level is greater than 65 decibels but does 
not exceed 70 decibels, or a minimum of 10 decibels of additional 
sound attenuation if the day-night average sound level is greater 
than 70 decibels but does not exceed 75 decibels.
    Proposed housing sites with above 75 decibels are unacceptable 
and the noise attenuation measures require the approval of the 
Assistant Secretary for Community Planning and Development. In 
Unacceptable noise zones, HUD strongly encourages conversion of 
noise-exposed sites to non-housing land uses compatible with the 
high noise levels.
    For major rehabilitation projects involving five or more 
dwelling units located in the ``Normally Unacceptable'' and 
``Unacceptable'' noise zones, HUD actively seeks to have project 
sponsors incorporate noise attenuation features, given the extent 
and nature of the rehabilitation being undertaken and the level of 
exterior noise exposure.
    *Documentation: You are to select A or B for the condition that 
best describes their project and report the option selected in item 
8 of section G.
    A. You are providing HUD with a finding made by a qualified data 
source stating that the property proposed by the applicant for a 
major rehabilitation or new construction project involving five or 
more dwelling units is not located within: (1) 1,000 feet of a major 
noise source, road, or highway; (2) 3,000 feet of a railroad; or (3) 
1 mile of a civil or 5 miles of a military airfield.
    B. The applicant provides HUD with a finding made by a qualified 
data source: (1) stating that the plans for the property proposed by 
the applicant for a major rehabilitation or new construction project 
involving five or more dwelling units will incorporate noise 
attenuation features in accord with HUD environmental criteria and 
standards contained in subpart B (Noise Abatement and Control) of 24 
CFR part 51; (2) stating whether the property is located within a 
``Normally Unacceptable'' or ``Unacceptable'' noise zone; and (3) 
providing HUD plans and a statement of the anticipated interior 
noise levels.

9. Site Affecting Coastal Zone Management

    Threshold: Only for proposed activities involving new 
construction or major rehabilitation of multifamily housing does the 
Coastal Zone Management (CZM) authority apply. Projects that can 
affect the coastal zone must be carried out in a manner consistent 
with the approved state coastal zone management program under 
section 307 of the Coastal Zone Management Act of 1972, as amended.
    *Documentation: You are to select either A or B for the 
condition that best describes the project and report the option 
selected in item 9 of section G.
    A. You state that your project is not located within a coastal 
zone, as defined by the States Coastal Zone Management Plan.
    B. If your project is located within a coastal zone, you are 
providing HUD with a finding made by the state coastal zone 
management agency that the project proposed by the applicant is 
consistent with the approved state coastal zone management program.

10. Site Affecting a Sole Source Aquifer

    Threshold: The sole source aquifer authority applies primarily 
to activities involving proposed new construction or conversion to 
housing of non-residential property. Projects that can affect 
aquifers designated by the Environmental Protection Agency (EPA) 
must be reviewed for impact on such designated aquifer sources. The 
Safe Drinking Water Act of 1974 requires protection of drinking 
water systems that are the sole or principal drinking water source 
for an area and which, if contaminated, would create a significant 
hazard to public health.
    *Documentation: You are to select either A or B for the 
condition that best describes the project and report the option 
selected in item 10 of section G.
    A. You are providing HUD with a finding made by a qualified data 
source stating that the proposed property is not located on nor does 
it affect a sole source aquifer designated by EPA.
    B. If your project proposes new construction or conversion 
activities that are located on or may affect any sole source aquifer 
designated by the EPA, you are identifying the aquifer and providing 
HUD with an explanation of the effect on the aquifer from a 
qualified data source, and/or a copy of any comments on the proposed 
project that have been received from the EPA Regional Office as well 
as from any state or local agency with jurisdiction for protecting 
the drinking water system.

11. Site Affecting Endangered Species

    Threshold: The Endangered Species Protection (ESP) authority 
applies primarily to activities involving proposed new construction 
or conversion to housing of a non-residential property. Projects 
which can affect listed or proposed endangered or threatened species 
or critical habitats require consultation with the Department of the 
Interior or the Department of Commerce in compliance with the 
procedure of section 7 of the Endangered Species Act of 1973, as 
amended.
    *Documentation: You are to select either A or B for the 
condition that best describes the property and report the option 
selected in item 11 of section G.
    A. If your project proposes new construction or conversion 
activities, you are providing HUD with a finding made by a qualified 
data source that the project is not likely to affect any listed or 
proposed endangered or threatened species or critical habitat. The 
finding shall indicate whether the project is located within a 
critical habitat, and if so, explain why the project is not likely 
to affect the species or habitat.
    B. If your project proposes new construction or conversion 
activities that are likely to affect listed or proposed endangered

[[Page 13990]]

or threatened species or critical habitat, you are providing HUD 
with a statement from a qualified data source explaining the likely 
effect, and/or a finding made by the Fish and Wildlife Service of 
the Department of the Interior or the National Marine Fisheries 
Service of the Department of Commerce stating as acceptable the 
proposed mitigation that you will provide to protect any affected 
endangered or threatened species or critical habitat.

12. Site Affecting a Designated Wetland

    Threshold: New construction or conversion to housing of a non-
residential property located within a designated wetland is subject 
to Executive Order 11990, Protection of Wetlands. This Executive 
Order directs HUD to avoid, where practicable, financial support for 
new construction on wetland property. Note: Proposed funding for new 
construction or conversion is subject to the Executive Order 
decisionmaking process. This may result in a disqualification of the 
application (refer above to number 7 under ``Instructions to 
Applicants'').
    *Documentation: You are to select A or B for the condition that 
best describes the property and report the option selected in item 
12 of section G.
    A. You are providing HUD with a finding made by a qualified data 
source stating that the property is not located within a designated 
wetland where new construction or conversion is proposed.
    B. You are providing HUD with a finding made by a qualified data 
source that the property is located within a designated wetland, 
which applies only to property where new construction or conversion 
is proposed.
    The information for A and B must provide HUD with the wetland 
panel number obtained from official maps issued by the Department of 
the Interior on the basis of which the finding was made, or where 
the Department of the Interior has not mapped the area, a letter or 
other documentation from the Army Corps of Engineers, or other 
federal agency.

13. Significant Impact to the Human Environment.

    Threshold: HUD must perform an environmental assessment of any 
property proposed for either:
    a. Major rehabilitation of:
    (1) Multifamily residential buildings (with more than four 
units) that would: increase unit density by more than 20 percent, 
change the land use, or cost 75 percent or more of the total 
estimated cost of replacement after rehabilitation; or
    (2) Buildings for residential use (with one to four units) that 
would increase density beyond four units, change the land use, or 
increase the footprint of the building in a floodplain or in a 
wetland;
    b. New construction except for (A) an individual action on up to 
four dwelling units where there is a maximum of four units on any 
one site (The units can be four one-unit buildings or one four-unit 
building or any combination in between); and (B) an individual 
action on a project of five or more housing units developed on 
scattered sites, when the sites are more than 2,000 feet apart and 
there are not more than four housing units on any one site. It is 
the policy of the Department to reject proposals that have 
significant adverse environmental impacts and to encourage the 
modification of projects in order to enhance environmental quality 
and minimize environmental harm. This policy is authorized by the 
National Environmental Policy Act (NEPA) and the implementing 
regulations of the Council on Environmental Quality and HUD's 
Environmental regulations at 24 CFR part 50.
    *Documentation: You are to provide HUD with any information on 
any adverse environmental impacts that affect the property or that 
the project would create. You are to report these data on a separate 
sheet and attach it to Exhibit 2C(15). Examples of adverse impacts 
are: soil instability and erodibility; natural or person-made 
hazards and nuisances; air pollution; inadequate infrastructure 
(e.g., water supply, waste water treatment, storm water management, 
solid waste collection), inadequate public services (i.e., fire, 
police, health care, social services, schools, parks) and 
transportation; and encroachment on prime farmlands and wild and 
scenic river areas. You are to identify any significant impacts to 
the human environment.

APPENDIX B

    The following non-standard forms are required for your 
Youthbuild application. The Youthbuild forms were approved under OMB 
Approval No. 2506-0142 (expiration 12/31/06).

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[[Page 14001]]



Housing Choice Voucher Family Self-Sufficiency Program Coordinators

Overview Information

    A. Federal Agency Name: Department of Housing and Urban 
Development, Office of Public and Indian Housing, Office of Public 
Housing and Voucher Programs.
    B. Funding Opportunity Title: Housing Choice Voucher Family Self-
Sufficiency (FSS) Program Coordinators.
    C. Announcement Type: Initial announcement.
    D. Funding Opportunity Number: The Federal Register number for this 
NOFA is FR-4950-N-17. The OMB approval number for this program is 2577-
0178.
    E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.871, 
Section 8 Housing Choice Vouchers.
    F. Dates: Application Deadline: The application submission date is 
May 20, 2005. Please see the General Section for application 
submission, delivery, and timely receipt requirements.
    G. Optional, Additional Overview Content Information: The purpose 
of the Housing Choice Voucher FSS program is to promote the development 
of local strategies to coordinate the use of assistance under the 
Housing Choice Voucher program with public and private resources to 
enable participating families to achieve economic independence and 
self-sufficiency. The FSS program and this FSS NOFA support the 
Department's strategic goals of increasing homeownership activities and 
helping HUD-assisted renters make progress toward self-sufficiency. The 
FSS program provides critical tools that can be used by communities to 
support welfare reform and help families develop new skills that will 
lead to economic self-sufficiency. As a result of their participation 
in the FSS program, many families have achieved stable, well-paid 
employment, which has made it possible for them to become homeowners. 
An FSS program coordinator assures that program participants are linked 
to the supportive services they need to achieve self-sufficiency.

Full Text of Announcement

I. Funding Opportunity Description

    A. Authority and Program Description. The Consolidated 
Appropriations Act, 2005, allows funding for program coordinators under 
the Housing Choice Voucher FSS program. Through annual NOFAs, HUD has 
provided funding to public housing agencies (PHAs) that are operating 
Housing Choice Voucher FSS programs to enable those PHAs to employ 
program coordinators to support their Housing Choice Voucher FSS 
programs. In the Fiscal Year (FY) 2005 Housing Choice Voucher FSS 
Program Coordinator NOFA, HUD is again making funding available to PHAs 
to employ FSS program coordinators and FSS homeownership program 
coordinators for one year. Funding priority under this NOFA will be 
provided to applicants that demonstrate that their FSS families have 
made progress in moving to homeownership. HUD will accept applications 
from both new and renewal PHAs that have HUD approval to administer a 
Housing Choice Voucher FSS program. PHAs funded under the Housing 
Choice Voucher FSS NOFA in FY2004 are considered ``renewal'' PHAs in 
this NOFA. These renewal PHAs are invited to apply for funds to 
continue previously funded Housing Choice Voucher FSS program 
coordinator and FSS homeownership coordinator positions that they have 
filled. In addition, any renewal PHA that has demonstrated significant 
progress in expanding FSS homeownership opportunities may apply for an 
additional Housing Choice Voucher FSS homeownership coordinator to 
support Housing Choice Voucher FSS homeownership activities. For 
funding Category 1 of this NOFA only, eligible renewal PHA applicants 
include PHAs that received funding under the FY2003 FSS NOFA.
    Because of the importance of the FSS program in helping families 
increase earned income and develop assets, HUD will also accept 
applications from ``new'' PHAs, PHAs that do not qualify as renewal 
PHAs under this FSS NOFA. The maximum number of positions that a new 
applicant PHA, including new PHA joint applicants, may receive is one 
full-time FSS program coordinator. Preference in funding these ``new'' 
applicant PHAs will be given to applicants with documented home 
purchases by Housing Choice Voucher program participants and graduates. 
A definition of the Housing Choice Voucher Home Purchase Percentage 
that will be used for this preference is found in I.C.10 of this FSS 
NOFA.
    To support the Department's initiatives on Colonias, a selection 
preference is again included in this NOFA for ``new'' applicant PHAs 
that provide services and support to rural under-served communities in 
the Southwest Border regions of Arizona, California, New Mexico, and 
Texas. See Section III.C.3.c. of this NOFA for requirements that must 
be met to qualify for the Colonias preference.
    PHAs are encouraged to outreach to persons with disabilities who 
are Housing Choice Voucher program participants and might be interested 
in participating in the FSS program and to include agencies on their 
FSS Program Coordinating Committee (PCC) that work with and provide 
services for families with disabilities.
    Applicants must administer the FSS program in accordance with HUD 
regulations and requirements in 24 CFR part 984 which govern the 
Housing Choice Voucher FSS Program and must comply with the existing 
Housing Choice Voucher program requirements, notices and guidebooks.
    B. Number of Positions for Which Eligible PHAs May Apply. Eligible 
PHAs may apply for funding for Housing Choice Voucher FSS program 
coordinator positions under this NOFA as follows:
    1. Renewal PHAs. PHAs that qualify as eligible renewal PHAs under 
this NOFA, may apply for:
    a. Continuation of each FSS coordinator position, including 
homeownership coordinator positions, awarded under the Housing Choice 
Voucher FSS NOFA in FY2004 that has been filled by the PHA, and, for 
funding Category 1 of this NOFA only, continuation of eligible 
positions funded under the FY2003 FSS NOFA.
    b. New Position. Up to one additional full-time Housing Choice 
Voucher FSS homeownership program coordinator for renewal PHAs with 
qualifying homeownership programs.
    2. New PHAs. A PHA that meets the requirements for a new PHA under 
this FSS NOFA, may apply for Housing Choice Voucher FSS program 
coordinator positions as follows: a) Up to one full-time Housing Choice 
Voucher FSS coordinator position for a PHA with HUD approval to 
administer a Housing Choice Voucher FSS program of 25 or more FSS 
slots. b) Up to one full-time Housing Choice Voucher FSS coordinator 
position per application for joint PHA applicants that together have 
HUD approval to administer a total of at least 25 Housing Choice 
Voucher FSS slots.
    C. Definitions. The following definitions apply to the funding 
available under this NOFA.
    1. Renewal PHA Applicant. A PHA or PHAs that received funding under 
the Housing Choice Voucher FSS NOFA in FY2004. For purposes of Category 
1 applicants only, eligible renewal PHAs also include PHAs that 
received FSS funding in 2003.
    2. New PHA Applicant. PHAs that did not receive funding under the 
Housing Choice Voucher FSS NOFA in FY2004 that have HUD approval to 
administer a Housing Choice Voucher FSS program

[[Page 14002]]

of at least 25 slots or that fulfill the 25 slot minimum by applying 
jointly with one or more other PHAs.
    3. FSS Program Size. The total number of Housing Choice Voucher FSS 
program slots identified in the PHA's HUD-approved FSS Action Plan. The 
total may include both voluntary and mandatory Housing Choice Voucher 
FSS program slots.
    4. Qualifying FSS Homeownership Program. Qualifying programs 
include the Housing Choice Voucher program homeownership option or 
other programs administered by the PHA or other entities that prepare 
Housing Choice Voucher program FSS participants for making the 
transition from renting to homeownership.
    5. FSS Homeownership Percentage. A percentage that will be computed 
by HUD for the purpose of establishing the order of funding of eligible 
renewal applicants under this NOFA. It is the total number of an 
applicant's Housing Choice Voucher FSS homeownership families as a 
percentage of the PHA's Housing Choice Voucher FSS program 
participants.
    6. Total Number of FSS Homeownership Families. The total number of 
Housing Choice Voucher FSS homeownership families enrolled in the 
applicant's Qualifying Homeownership Programs as of the application due 
date of this NOFA, plus the number of its Housing Choice Voucher FSS 
graduates that moved to homeownership between October 1, 2000, and the 
application due date of this NOFA. Homeownership participation of 
families is reported to HUD on the FSS program coordinator application 
and on the form HUD-50058. These numbers are subject to audit.
    7. The Number of Housing Choice Voucher FSS Program Participants. 
The number that is used to calculate the FSS Homeownership Percentage 
of the applicant. It is the total number of families shown in HUD's PIC 
data system as enrolled in the applicant's Housing Choice Voucher FSS 
program on the application due date of this NOFA, plus the number of 
families that successfully completed their Housing Choice Voucher FSS 
contracts in the applicant's program between October 1, 2000, and the 
application due date of this NOFA.
    8. Percentage of Families with Positive FSS Escrow Balances. A 
percentage that will be computed by HUD and used to determine funding 
order under this NOFA. It is the number of Housing Choice Voucher FSS 
families with positive escrow balances as a percentage of Housing 
Choice Voucher FSS families with FSS progress reports submitted to HUD 
on the Form HUD-50058. The data source is HUD's PIC data system records 
of Form HUD-50058 Housing Choice Voucher FSS program progress reports 
that were effective between October 1, 2003, and the application due 
date of this NOFA.
    9. Housing Choice Voucher Program Size. The number of Housing 
Choice Vouchers in a PHA's voucher program as determined by HUD using 
baseline data.
    10. Housing Choice Voucher Program Home Purchase Percentage. A 
percentage calculated for new applicant PHAs that are eligible for 
funding under Category 3 of this FSS NOFA. It is the number of 
documented home purchases by Housing Choice Voucher program 
participants and graduates for the period from October 1, 2000 through 
the application due date of this NOFA as a percentage of the 
applicant's Housing Choice Voucher program size.

II. Award Information

A. Available Funds

    This NOFA announces the availability of approximately $45.6 million 
in FY2005 to employ FSS program and FSS homeownership coordinators for 
the Housing Choice Voucher FSS program. If additional funding becomes 
available during FY2005, HUD may increase the amount available for 
Housing Choice Voucher FSS Program coordinators and Housing Choice 
Voucher FSS homeownership coordinators under this NOFA. A maximum of 
$63,000 is available for each full-time coordinator position funded. 
Salaries are to be based on local comparables. The funding will be 
provided as a one-year Housing Choice Voucher funding increment under 
the PHA's Annual Contributions Contract (ACC). HUD reserves the right 
to adjust funding for renewal positions in order to ensure a fair and 
reasonable distribution of funding.

III. Eligibility Information

    A. Eligible Applicants. PHAs eligible to apply for funding under 
this NOFA are:
    1. Renewal PHAs. Those PHAs that received funding under the Housing 
Choice Voucher FSS NOFA in FY2004. To continue to qualify as renewal 
PHAs, the FY2005 application of joint applicants must include at least 
one PHA applicant that meets this standard. Joint applicants can change 
the lead PHA in their FY2005 application. A PHA that was originally 
funded as part of a joint application, that wishes to now apply 
separately would continue to be considered a renewal PHA applicant for 
funding purposes, but must be able to meet the FSS minimum program size 
requirement of a HUD-approved Housing Choice Voucher FSS program of at 
least 25 slots that applies to new applicant PHAs. For purposes of 
Category 1 applicants only, eligible renewal PHAs also include PHAs 
that received FSS funding in 2003.
    2. New PHAs. PHAs that were not funded under the Housing Choice 
Voucher FSS NOFA in FY2004. The new applicant PHA must be authorized 
through its HUD-approved FSS Action Plan to administer a Housing Choice 
Voucher FSS program of at least 25 slots, or be a PHA with HUD approval 
to administer Housing Choice Voucher FSS programs of fewer than 25 
slots that applies jointly with one or more other PHAs so that together 
they have HUD approval to administer at least 25 Housing Choice Voucher 
FSS slots. Joint applicants must specify a lead co-applicant that will 
receive and administer the FSS program coordinator funding.
    3. Moving to Work (MTW) PHAs. New and renewal PHAs that are under 
the MTW demonstration may qualify for funding under this NOFA if the 
PHA administers an FSS program. When determining the size of a MTW 
PHA's HUD-approved FSS program, the PHA may request that the number of 
FSS slots reflected in the PHA's MTW agreement be used instead of the 
number in the PHA's FSS Action Plan.
    4. Troubled PHAs. a. A PHA that has been designated by HUD as a 
troubled PHA under the Section 8 Management Assessment Program (SEMAP), 
or that has serious program management findings from Inspector General 
audits or serious outstanding HUD management review or Independent 
Public Accountant (IPA) audit findings for the PHA's Housing Choice 
Voucher or Moderate Rehabilitation programs that are resolved prior to 
application due date is eligible to apply under this NOFA. Serious 
program management findings are those that would cast doubt on the 
capacity of the PHA to administer its Housing Choice Voucher FSS 
program in accordance with applicable HUD regulatory and statutory 
requirements.
    b. The requirements that apply to a PHA whose SEMAP troubled 
designation has not been removed by HUD or the major program management 
findings or other significant program compliance problems that have not 
been resolved by the due date are stated in Section III.C.3.e. of this 
NOFA.
    B. Cost Sharing or Matching. None required.

[[Page 14003]]

    C. Other. 1. Eligible Activities. Funds awarded to PHAs under this 
FSS NOFA may only be used to pay salaries and fringe benefits of 
Housing Choice Voucher FSS program staff. Funding may be used to employ 
or otherwise retain for one year the services of Housing Choice Voucher 
FSS program coordinators and Housing Choice Voucher FSS homeownership 
coordinators. FSS coordinator support positions funded under previous 
FSS NOFAs that made funding available for such FSS positions may be 
continued. A part-time program coordinator may be retained where 
appropriate.
    2. Threshold Requirements. a. All Applicants.
    (1) Each applicant must qualify as an eligible PHA under Section 
III.A. of this NOFA and must have submitted their FSS application by 
the application due date and in the format required in Section IV. of 
this NOFA.
    (2) All applications must include a Dun and Bradstreet Universal 
Numbering System (DUNS) number. (See Section III.C. of the General 
Section for further information about the DUNS number requirement.)
    (3) Civil Rights Thresholds, Non-discrimination, Affirmatively 
Furthering Fair Housing. All applicants must comply with these 
requirements. Please see Section III.C. of the General Section for 
details. Section 3 of the Housing and Urban Development Act of 1968 
does not apply to this program.
    (4) The PHA must have a financial management system that meets 
federal standards. See Section III.C. of the General Section regarding 
those applicants that may be subject to HUD's arranging for a pre-award 
survey of an applicant's financial management system.
    (5) Applicants must comply with the requirements for funding 
competitions established by the HUD Reform Act of 1989 (42 U.S.C. 3531 
et seq.) and other requirements as defined in the General Section.
    b. Renewal Applicants. (1) Continued funding for existing 
coordinator positions. In addition to meeting the requirements of 
Section III.A.of this FSS NOFA, renewal PHA applicants must continue to 
operate a Housing Choice Voucher FSS program, have filled eligible FSS 
program coordinator positions for which they are seeking renewal 
funding, executed FSS contracts of participation with Housing Choice 
Voucher FSS program families and submitted reports on participant 
families to HUD via the form HUD-50058.
    (2) New position. Renewal PHAs applying for an additional Housing 
Choice Voucher FSS Homeownership Coordinator must meet all requirements 
in Section III.A. and III.C.2.a and b. above, and must administer or 
participate in a qualifying homeownership program that serves Housing 
Choice Voucher FSS program participants or graduates. Qualifying 
homeownership programs include the Housing Choice Voucher program 
homeownership option and other programs, which may be administer by the 
PHA or another entity, that prepare Housing Choice Voucher program FSS 
participants for making the transition from rental to homeownership.
    c. New Applicants. New applicants must meet the requirements of 
Section III.A. and Section III C.2.a of this FSS NOFA.
    3. Program Requirements. a. Salary Comparables. For all positions 
requested under this NOFA, evidence of salary comparability to similar 
positions in the local jurisdiction must be kept on file in the PHA 
office.
    b. FSS Action Plan. The requirements for the FSS Action Plan are 
stated in 24 CFR 984.201. For a new PHA applicant to qualify for 
funding under this NOFA, the PHA's initial FSS Action Plan or amendment 
to change the number of Housing Choice Voucher FSS slots in the PHA's 
previously HUD-approved FSS Action Plan, must be submitted to and 
approved by the PHA's local HUD field office prior to the application 
due date of this FSS NOFA. An FSS Action Plan can be updated by means 
of a simple one-page addendum that reflects the total number of Housing 
Choice Voucher FSS slots (voluntary and /or mandatory slots) the PHA 
intends to fill. New PHA applicants with previously approved Housing 
Choice Voucher FSS Action Plans may wish to confirm the number of HUD-
approved slots their local HUD field office has on record for the PHA. 
A MTW PHA may request that the number of FSS slots reflected in its MTW 
agreement be used instead of the number of slots in the PHA's FSS 
Action Plan.
    c. Colonias Preference. New applicant PHAs claiming the Colonias 
preference must meet the requirements of Section III.A. and Section 
III.C.2.a and III.C.2.c. of this FSS NOFA and must operate in a 
Southwest border area that contains Colonia communities and administer 
programs that include outreach to members of those Colonia communities. 
Attachment A of this NOFA provides a listing of PHAs in Arizona, 
California, New Mexico, and Texas that HUD has identified as operating 
in areas containing Colonia communities. PHAs not listed in Attachment 
A that are claiming the Colonias preference will be required to include 
in their application submission a written request that HUD determine 
their eligibility for the preference.
    d. Homeownership Preferences. See priority funding categories in 
Section V.B.2. of this FSS NOFA.
    e. Troubled PHAs. A PHA whose SEMAP troubled designation has not 
been removed by HUD or that has major program management findings or 
other significant program compliance problems that have not been 
resolved by the application due date, may apply if the PHA submits an 
application that designates another organization or entity that is 
acceptable to HUD that:
    (1) Includes an agreement by the other organization or entity to 
administer the FSS program on behalf of the PHA; and
    (2) In the instance of a PHA with unresolved major program 
management findings, includes a statement that outlines the steps the 
PHA is taking to resolve the program findings.
    Immediately after the publication of this NOFA, the Office of 
Public Housing in the local HUD field office will notify, in writing, 
those PHAs that have been designated by HUD as troubled under SEMAP, 
and those PHAs with unresolved major program management findings or 
other significant program compliance problems that are not eligible to 
apply without such an agreement. Concurrently, the local HUD field 
office will provide a copy of each such written notification to the 
Director of the Grants Management Center.
    f. Conducting Business in Accordance with Core Values and Ethical 
Standards. To reflect core values, all PHAs shall develop and maintain 
a written code of conduct in the PHA administrative plan that:
    (1) Requires compliance with the conflict of interest requirements 
of the Housing Choice Voucher Program at 24 CFR 982.161; and
    (2) Prohibits the solicitation or acceptance of gifts or 
gratuities, in excess of a nominal value, by any officer or employee of 
the PHA, or any contractor, subcontractor, or agent of the PHA. The 
PHA's administrative plan shall state PHA policies concerning PHA 
administrative and disciplinary remedies for violation of the PHA code 
of conduct. The PHA shall inform all officers, employees, and agents of 
its organization of the PHA's code of conduct.

IV. Application and Submission Information

A. Addresses to Request Application Package

    1. Web site. A copy of this funding announcement for the Housing 
Choice

[[Page 14004]]

Voucher FSS Program may be downloaded from the following web site: 
http://www.grants.gov.
    2. Application Kit. There is no application kit for this NOFA. This 
announcement contains all the information necessary for the submission 
of your application for Housing Choice Voucher FSS program coordinator 
funding.
    3. Further Information. You may request general information, copies 
of the General Section and of a Program NOFA or NOFAs, from the NOFA 
Information Center (800-HUD-8929) or 800-HUD-2209 (TTY) between the 
hours of 10 a.m. and 6:30 p.m. (Eastern Time) Monday through Friday, 
except on federal holidays. When requesting information, please refer 
to the name of the program you are interested in. The NOFA Information 
Center opens for business simultaneously with the publication of the 
SuperNOFA. You can also obtain information on this NOFA and download 
application information for this NOFA through the web site, http://
www.grants.gov.
    4. Technical Assistance. See Section VII. of this FSS funding 
announcement.

B. Content and Form of Application Submission

    1. Content of Application. Each new and renewal PHA must complete 
the form SF-424, the SF-LLL, if appropriate, and the Form HUD-52651, 
the new FSS application form. In addition, the application must include 
a completed Logic Model (from HUD 96010) showing proposed performance 
measures. See the General Section for information on, and a copy of, 
the Logic Model. A copy of the HUD-52651 follows immediately after 
Attachment A of this NOFA. In completing the SF-424, renewal PHAs 
should select the continuation box on question 8, type of application. 
Both new and renewal PHA applicants should enter the proposed Annual 
Contributions Contract (ACC) amendment effective and ending dates for 
the FSS coordinator funding in 13 of the SF-424. In section 15 of SF-
424, estimated funding, complete only 15.a., which will be the amount 
requested from HUD in the FY2005 FSS application, and 15.g., Total.
    2. Forms, Certifications, and Assurances. See section IV.B. of the 
General Section.

C. Submission Date and Time

    Your completed application must be submitted and received by 
Grants.gov no later than 11:59:59 p.m. eastern time on the application 
submission date of May 20, 2005. Applicants should carefully read the 
section titled ``APPLICATION and SUBMISSION INFORMATION'' in part IV. 
of the General Section regarding HUD's procedures pertinent to the 
submission of your application as they have changed significantly this 
year.

D. Intergovernmental Review

    Applicants submitting applications under this funding announcement 
are not subject to intergovernmental review; i.e., Executive Order (EO) 
12372, Intergovernmental Review of Federal Program.

E. Funding Restrictions

    1. Salary Cap. Awards under this NOFA are subject to a cap of 
$63,000 per year per full time coordinator position funded. Under this 
NOFA, if PHAs apply jointly, the $63,000 maximum amount that may be 
requested per position applies to up to one full time coordinator 
position for the application as a whole, not to each PHA separately.
    2. Limitation on Renewal Funding Increases. For renewal coordinator 
positions, PHAs will be limited to a one percent increase above the 
amount of the most recent award for the position unless a higher 
increase is approved by the local HUD field office after review of the 
PHA's written justification and at least three comparables that must be 
submitted to the field office by the PHA at the time they submit their 
FY2005 Housing Choice Voucher FSS Program Coordinator application to 
HUD. Examples of acceptable reasons for increases above one percent 
would be need for a coordinator with higher level of skills or to 
increase the hours of a part time coordinator to full time. Total 
positions funded cannot exceed the maximum number of positions for 
which the PHA is eligible under this NOFA.
    3. Ineligible Activities. a. Funds under this NOFA may not be used 
to pay the salary of an FSS coordinator for a public housing FSS 
program. A Housing Choice Voucher FSS program coordinator may only 
serve Housing Choice Voucher families while the public housing FSS 
program serves only public housing residents. In FY2005, funding for 
public housing FSS program coordinators is being made available through 
the Public Housing Resident Opportunities and Self-Sufficiency (ROSS) 
NOFA for Public Housing FSS Program Coordinators that is included in 
the FY2005 SuperNOFA.
    b. Funds under this FSS NOFA may not be used to pay for services 
for FSS program participants.

F. Other Submission Requirements

    1. Application Submission and Receipt Procedures. See IV.F of the 
General Section. Electronic application submission is mandatory unless 
an applicant requests, and is granted, a waiver to the requirement. 
Procedures for obtaining a waiver are contained in Section IV.F of the 
General Section.

V. Application Review Information

    A. Criteria. The funds available under this NOFA are being awarded 
based on demonstrated performance. Applications are reviewed by the 
local HUD field office and GMC to determine whether or not they are 
technically adequate based on the NOFA requirements. Field offices will 
provide to the GMC in a timely manner, as requested, information needed 
by the GMC to make its determination, such as the HUD-approved Housing 
Choice Voucher FSS program size of new PHA applicants and information 
on the administrative capabilities of PHAs. Categories of applications 
that will not be funded are stated in Section V.B.6. of this FSS NOFA.
    B. Reviews and Selection Process. 1. Technically Acceptable 
Applications. All technically adequate applications will be funded to 
the extent funds are available.
    2. Funding Priority Categories. If HUD receives applications for 
funding greater than the amount made available under this NOFA, HUD 
will divide eligible applications into priority categories as follows:
    Funding Category 1--Applications from eligible renewal PHAs with 
qualifying homeownership programs for continuation of previously funded 
eligible positions where the PHA has hired the funded FSS and 
homeownership coordinators and the PHA can demonstrate that a minimum 
of five (5) Housing Choice Voucher FSS program participants or 
graduates purchased homes between October 1, 2000 and the application 
due date of this FSS NOFA (that can be confirmed by homeownership 
information in the PIC data base from form HUD-50058) or as otherwise 
reported for Moving to Work (MTW) homeownership. For purposes of 
Category 1 applicants only, eligible renewal PHAs also include PHAs 
that received FSS funding in FY 2003.
    Funding Category 2--Eligible renewal PHAs with qualifying 
homeownership programs for continuation of previously funded eligible 
positions where the PHA has hired funded coordinators and completed one 
of the following: (a) As of the application due date of this FSS

[[Page 14005]]

NOFA, has successfully enrolled a minimum of twenty-five (25) Housing 
Choice Voucher FSS families into homeownership preparation activities, 
including homeownership counseling; or (b) Between October 1, 2000 and 
the application due date of this FSS NOFA, a minimum of one (1) Housing 
Choice Voucher FSS family completed purchase of a home as reported in 
the PIC data base or as otherwise reported for MTW homeownership 
closings.
    Funding Category 3--Applications from eligible new applicant PHAs 
that wish to initiate an FSS homeownership program that serves Housing 
Choice Voucher families. Those PHAs with documented home purchases by 
Housing Choice Voucher program participants and graduates and PHAs 
qualifying for the Colonias preference will receive preference.
    Funding Category 4--Applications from eligible renewal PHAs with 
qualifying homeownership programs that request funding for an 
additional Housing Choice Voucher FSS homeownership position to expand 
their FSS homeownership programs provided the applicant can document 
that a minimum of ten (10) Housing Choice Voucher FSS participants or 
graduates completed purchases of homes between October 1, 2000 and the 
application due date of this FSS NOFA.
    Funding Category 5--Applications from new applicant PHAs that have 
an existing Housing Choice Voucher FSS program and can demonstrate they 
have a minimum of ten (10) Housing Choice Voucher FSS families with 
existing positive escrow balances as of the application due date of the 
FSS NOFA or have had a minimum of 20 families that have graduated from 
the Housing Choice Voucher FSS program between October 1, 2000 and the 
application due date of this FSS NOFA.
    3. Order of Funding. Starting with Funding Category 1, HUD will 
first determine whether there are sufficient monies to fund all 
eligible positions requested in the funding category. If available 
funding is not sufficient to fund all positions requested in the 
category, HUD will fund applications in the following order:
    (a) Funding Category 1. HUD will calculate for each eligible 
applicant, the PHA's FSS Homeownership Percentage and Positive Escrow 
Percentage and will use these percentages in making funding decisions. 
Definitions and a description of the calculation of the FSS 
Homeownership Percentage and the Positive Escrow Percentage are 
included in Section I.C. of this NOFA.
    HUD will begin funding eligible Funding Category 1 applicants 
starting with the PHAs with the highest FSS Homeownership Percentage 
first. If monies are not sufficient to fund all applicants with the 
same FSS Homeownership Percentage, HUD will fund eligible applicants in 
order starting with those that have the highest Positive Escrow 
Percentage first. If funding is not sufficient to fund all applicants 
with the same FSS Homeownership Percentage and/or Positive Escrow 
Percentage, HUD will select among eligible applicants by Housing Choice 
Voucher program size starting with eligible applicants with the 
smallest Housing Choice Voucher program size first.
    (b) Funding Category 2. If funding remains after funding all 
Funding Category 1 applications, HUD will then process eligible Funding 
Category 2 applications. HUD will calculate the FSS Homeownership 
Percentage and Positive Escrow Percentage for Funding Category 2 
applicants as it did for Funding Category 1 applicants. If there are 
not sufficient monies to fund all Funding Category 2 applications, HUD 
will begin funding Funding Category 2 applications starting with 
applicants with the highest FSS Homeownership Percentage first. If 
there is not enough funding for all applicants with the same FSS 
Homeownership Percentage, HUD will use Positive Escrow Percentage to 
determine selection order, starting with applicants with the highest 
Positive Escrow Percentage. If monies are not sufficient to fund all 
applicants with the same FSS Homeownership Percentage and Positive 
Escrow Percentage, HUD will select eligible applicants by Housing 
Choice Voucher program size starting with eligible applicants with the 
smallest Housing Choice Voucher program size first.
    (c) Funding Category 3. If funding remains after funding all 
Funding Category 1 and 2 applications, HUD will then process requests 
of eligible Funding Category 3 applicant PHAs. HUD will first calculate 
the Housing Choice Voucher Program Home Purchase Percentage for all 
eligible Funding Category 3 applicants. This percentage is the number 
of documented home purchases by Housing