03 hope vi main street 7.13.15 final.pdf

U.S. Department of Housing and Urban Development

Public and Indian Housing

HOPE VI Main Street Grant Program

FR-5900-N-03

H04396 Stamp

FR-5900-N-03

TABLE OF CONTENTS

Funding Opportunity Description. I.

Award Information. II.

Eligibility Information.

Eligible Applicants. A.

Cost Sharing or Matching. B.

Other. C.

III.

Application and Submission Information.

Obtaining an Application Package. A.

Content and Form of Application Submission. B.

DUNS Number and SAM Registration. C.

Application Submission Dates and Times. D.

Intergovernmental Review. E.

Funding Restrictions. F.

Other Submission Requirements. G.

IV.

Application Review Information.

Criteria. A.

Review and Selection Process. B.

Anticipated Announcement and Award Dates. C.

V.

Award Administration Information.

Award Notices. A.

Administrative, National and Departmental Policy Requirements. B.

Reporting. C.

VI.

Agency Contact(s). VII.

Other Information. VIII.

Appendix. IX.

U.S. Department of Housing and Urban Development

Public and Indian Housing

Initial

FR-5900-N-03

14.878 August 27, 2015

SUMMARY: This Notice of Funding Availability (NOFA) consists of two documents: This Notice and HUD’s “Notice of HUD’s Fiscal Year (FY) 2015 Notice of Funding availability (NOFA) Policy Requirements and General Section to HUD’s FY2015 NOFAs for Discretionary Programs, referred to as the “General Section”. Regardless of specific references to the General Section in this NOFA, the entire General Section is hereby incorporated by reference into this HOPE VI Main Street NOFA. The General Section and this Program Section contain requirements for funding applicable to this NOFA. It is of paramount importance that applicants read both sections.

HUD reserves the right to award grant funds in FY2016 to applicants from this NOFA. The award of FY2016 Main Street funds to FY2015 applicants is contingent upon future congressional action. HUD’s intent to award FY2016 funds to FY2015 applicants will be announced separately if such funds become available.

In general, this NOFA is meant to assist small cities and towns in their efforts to invigorate a downtown that has deteriorated over the years. Grants from this NOFA enable reconfiguration of existing, empty commercial space into affordable housing. Affordable housing is scarce and rent-up will be expeditious.

The rental stream will provide income that will make the building(s) containing the housing financially viable. Not only will a traditional or Historic building be saved, but construction work on the main street will bring attention to the area, inducing others to invest in the area.

FOR FURTHER INFORMATION: Questions regarding specific program requirements should be directed to the agency contact identified in Section VII., of this NOFA. For general information on the Main Street program, visit HUD’s website at http://www.hud.gov/mainstreet.

FOR FURTHER INFORMATION CONTACT: Please direct questions regarding the specific program requirements of this Program Notice of Funding Availability (NOFA) to the agency contact identified in Section VII. Please direct questions regarding the FY 2015 General Section to the Office of Strategic Planning and Management, Grants Management Division, at (202) 708-0667 (this is not a toll-free number). Persons with hearing or speech impairments may access these numbers via TTY by calling the Federal Relay Service at 1-800-877-8339.

Additional Overview Information

1. Incorporation of the General Section. HUD publishes a General Section each fiscal year that contains mandatory requirements for all applicants to HUD’s various competitive grant programs, including this NOFA. Applications must meet all of the requirements of the General Section in addition to the requirements of this NOFA to be considered and potentially receive funding. The full title of the General Section is the General Section to the Fiscal Year 2015 NOFAs for Discretionary Programs. Copies are available at Grants.gov or HUD's Funds Available page, http: //portal.hud.gov /hudportal /HUD?src=

Program Office:

Funding Opportunity Title:

Announcement Type:

Funding Opportunity Number:

Primary CFDA Number:

Due Date for Applications:

http://www.hud.gov/mainstreet http://www.grants.gov http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail available at Grants.gov or HUD's Funds Available page, http: //portal.hud.gov /hudportal /HUD?src= /program_offices /administration /grants /fundsavail.

2. OMB Approval Number(s): 2577-0208

I. Funding Opportunity Description.

A. Program Description.

1. Purpose.

The purpose of the HOPE VI Main Street Program is to provide grants to small communities to assist in the renovation of an historic or traditional central business district or “Main Street” area by replacing unused commercial space in buildings with affordable housing units.

The objectives of the program are to:

Redevelop Main Street areas;1.

Preserve Historic or traditional central business district or Main Street area properties by replacing unused commercial space in buildings with affordable housing units;

2.

Enhance economic development efforts in Main Street areas; and3.

Provide affordable housing in Main Street areas.4.

2. Changes from Previous NOFA.

Eligibility:

The One Main Street Project Funded threshold was moved to the Eligibility section.1.

The Joint Applications are not permitted threshold was moved to the Eligibility section. 2.

Threshold changes:

The threshold requiring inclusion of a Program Schedule has been removed;1.

The threshold requiring that the targeted affordable housing project must meet the definition of Main Street Affordable Housing Project has been removed, although this remains a Program Requirement under Section III.

2.

The threshold that requires timely construction on previous Main Street grants has been removed. 3.

Rating Factor Changes

Previously, the NOFA included a threshold that forbade award to a current grantee that was not timely. In place of this removed threshold, the structure of the 15 points for Capacity under Rating Factor 1 have been changed. Capacity has now been broken out into two parts: 5 points will be automatically given to applicants that do not have current grants. In addition, 5 points will be given to current grantees that are timely. The only applicants that will not receive these 5 points are current grantees that are not performing in a timely fashion. The remaining 10 points of the original 15 still relate to Capacity as it existed in previous years.

1.

HUD is using its own statistics to determine Need, Rating Factor 2. Previously, if the statistics showed that there was any undue housing cost burden for the target population (cost greater than 30% of gross adjusted income), the applicant would receive the points for Need. A sample was taken in writing this NOFA and it was found that every jurisdiction that was researched had at least some housing cost hardship. "Need" points are now provided to applicants where at least 15% of available housing for the target population requires a cost burden greater than 30% of gross adjusted income.

2.

The language for the Key Personnel Timeliness sub-factor under Rating Factor 3 has been clarified.

Last year, the reviewers found the language used to determine the number of points to be given on

3.

http://www.grants.gov http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail this sub-factor to be unclear. The sub-factor has been simplified and the language clarified. The sub-factor now measures the status of the procurement of a Developer, other development manager or construction contractor.

Energy Efficiency was moved from Rating Factor 4 to become an independent NOFA Priority Rating Factor. Rating Factor 4 has gone from 33 to 31 points. The NOFA Priority Rating Factor has 2 points.

4.

3. Definitions.

a. Eligibility Requirements – Eligibility requirements are those requirements that must be met for an application to be eligible for funding. Deficiencies in meeting an eligibility requirement may be categorized as either curable or non-curable.

b. Threshold Requirement – Threshold requirements are a category of eligibility requirements. A threshold requirement is a requirement that must be met in order for an application to be reviewed.

Threshold requirements are not curable.

Threshold requirements are listed in Section III.C.2. of both the 2015 General Section and in this Program

NOFA.

Applicants must ensure their application package addresses all threshold requirements. Please check your application carefully!

c. Deficiency – Deficiencies are not the same as errors. Errors are never curable except as permitted under Section IV.C.2. Deficiencies are items of missing or omitted information within a submitted application.

Deficiencies typically involve missing documents, information on a form, or some other type of unsatisfied information requirement (e.g., an unsigned form, unchecked box, etc.). Depending on specific criteria, deficiencies may be either curable or non-curable.

d. Curable Deficiency – A curable deficiency is a specific type of deficiency that applicants may correct with timely action. To be curable the deficiency must:

– Not be a threshold requirement;

– Not influence how an applicant is ranked or scored versus other applicants; and

– Be remedied within the time frame specified in the notice of deficiency.

e. Non-Curable Deficiency – An applicant cannot correct a non-curable deficiency after the submission deadline. Non-curable deficiencies are deficiencies that if corrected would change an applicant’s score or rank versus other applicants. Non-curable deficiencies may result in an application being marked ineligible, or otherwise adversely affect an application’s score and final determination.

4. Program Specific Definitions. This section defines HUD and Main Street terms-of-art as they apply to this NOFA. These definitions are necessary for the applicant to properly understand the NOFA's requirements and are referred to throughout the NOFA.

a. Affordable Housing. Main Street Affordable Housing means rental or homeownership dwelling units funded under this NOFA that must be rented or sold to low-income families, with a subset of units made available to very low-income families. Low-income families are defined as families whose adjusted gross income is at or below 80% of the Area Family Income, as published by HUD. Family income includes any income from all members of the resident family. Very low-income families are defined as families whose adjusted gross income is at or below 50% of the Area Family Income. See Section 2.l., below, for a detailed definition of HUD’s Low-income Limits. The rental, or sale, of each unit must comply with the Main Street Use Restrictions as defined in Section 2.s., below, of this NOFA.

b. Applicant Team. Applicant Team means the group of entities that will develop the Main Street affordable housing project (“Project”). The team includes the unit of local government that submits the application and where applicable, the Developer, property manager, architects, construction contractors, attorneys, investment partners that are part of an owner entity; and other parties that may be involved in the development and management of the Project. To be considered as part of an Applicant Team, the entity must be included in the application to this NOFA.

c. Operating Pro Forma (“pro forma”). The Five-Year Operating Pro Forma is a report that shows the income and expenses for the first five operating years of a project. The purpose of the pro forma is to show that the project will be financially viable over the long-term. The “pro forma” includes year-by-year estimates of Project income and expenses, accounting for Use Restriction changes and economic adjustments. The pro forma must show the affordable rents for the period of initial occupancy as well as market rate rents for subsequent occupants. Form HUD- 52861, Main Street Data Sheet 2014 TDCs, includes a tab to enter income and expense assumptions and a separate tab that includes the pro forma.

You will have to enter information into both tabs.

d. Commitment Letters. Commitment Letters document resources designated for match and leverage purposes in your HOPE VI Main Street application. To be counted toward match or leverage, sources of funds must be FIRMLY committed to the Project or Main Street area rejuvenation. To be counted as a firm commitment letter, the letter must meet the following requirements:

(1) Be on the letterhead of the entity providing the funding commitment.

(2) Contain the name, telephone number and email address of a contact for the entity that is providing the resource and that is familiar with the contribution toward the HOPE VI Main Street application.

(3) Identify if the match or leverage (as appropriate) is a cash or in-kind contribution.

(4) Contain the specific amount of the commitment. If an in-kind contribution, provide the market value in dollars of the contribution pledged through the commitment letter. If the contribution is in cash, provide the dollar amount pledged through the commitment letter.

e. Community and Supportive Services (CSS). HUD encourages the provision of CSS to residents of HUD assisted projects. The purpose of these services is to help low-income families improve the quality of their lives and move toward self-sufficiency. CSS may include, but are not limited to:

(1) Educational life skills, job readiness and retention, employment training, and other activities as described on HUD’s HOPE VI website at http://portal.hud.gov/hudportal/HUD?src=/program_offices /public_indian_housing/programs/ph/hope6/css;

(2) Homeownership counseling that is required if the Main Street units are Homeownership. These services must be scheduled to begin promptly after grant award so that to the maximum extent possible, qualified residents will be ready to purchase new homeownership units when they are completed; and,

(3) Coordination with fair housing groups to educate the Project’s targeted population on its fair housing rights.

f. Developer.

(1) Completion of a Main Street grant may include development of documents to obtain financing, performance of an Environmental Review, creation of architectural plans for the Project, the hiring of a construction contractor, monitoring of the construction contractor, bookkeeping for grant income and expenses, submission of all expense receipts to HUD in order to draw down grant funds, furnishing Community and Supportive Services, and dozens of other activities. Normally, a Small Community Main Street applicant will not have the in-house capacity to complete all of these requirements. For this reason, it is likely that the applicant/grantee has procured, or will procure after grant award, a Developer or other development manager.

(2) Procurement of such entities for Federal grants must be performed in accordance with the Code of Federal Regulations (CFR) at 2 CFR part 200, “Uniform Administrative Requirements, Cost Principles, http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ph/hope6/css http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ph/hope6/css

Federal Regulations (CFR) at 2 CFR part 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.” Procurement requirements can be found at 2 CFR 200.318 through 200.326. The CFR can be found online at http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&;tpl =%2Findex.tpl. Once procured, subcontracting procurement by a Developer or other development manager is not subject to the procurement requirements in part 200. Requirements are less complex and more expeditious than direct procurement by the local government grantee. This is another reason why a Main Street grantee may procure a Developer or other development manager.

(3) When Tax Credits or other complex financing is required for the Project, the presence of a “Developer” will probably be required. The Developer is the legal entity that has been procured, usually through a Request for Proposals (RFP) or a Request for Quotes (RFQ). After procurement, the Developer and local government applicant or grantee will fully execute a Developer Agreement that describes the rights and responsibilities of both parties. The Developer’s role consists of seeking financing for reconfiguration, rehabilitation and/or construction of housing units, the provision of Community Services (if included in the Project) and project management up to and including rental of the Affordable Housing units. Funds awarded through this NOFA must not be used to pay the developer fee. Funds other than those awarded through this NOFA may be used to pay the developer’s fee. If other federal funds are used, the federal statute or regulations governing such funds must permit their use for this purpose.

(4) For development with uncomplicated financing, e.g., no Tax Credit syndication, no bonds, the applicant may choose to procure “other development manager” services, e.g., Project Manager, Private Property Owner (if the owner is going to retain ownership of the Project), managing Architect, Construction Manager, design/build construction contractor or housing intermediary, e.g., Community Development Corporation, in place of a Developer. The agreement that the applicant made, or grantee will make, with any of these other development managers will determine their roles and the grantee will directly procure other entities or whether the development manager will procure subcontractors. Funds awarded through this NOFA may be used to reimburse Fees for these services. In this NOFA, such services are referred to as “other development manager” services.

g. Firmly Committed. In order to be counted in Section V.A., the rating section, of this NOFA, both Match and Leverage resources must be firmly committed in writing in commitment letters. The Match resources must be firmly committed to the Affordable Housing Project that is the subject of your application and the Leverage resources must be firmly committed to either the Affordable Housing Project or the Main Street Area rejuvenation effort in general. Further discussion of Match and Leverage can be found in the definitions of Match and Leverage, below.

(1) Commitment Letters document resources designated for Match or Leverage purposes in your Main Street application. To be counted toward Match or Leverage, sources of funds must be FIRMLY committed to the Project. To be counted as a firm commitment letter, the letter must meet the following requirements:

(a) Be on the letterhead of the entity providing the funding commitment.

(b) Contain the name, telephone number and email address of a contact for the entity that is providing the resource and that is familiar with the contribution toward the Main Street application.

(c) Identify if the commitment is for Match or Leverage.

(d) Identify if the commitment is a cash or in-kind contribution.

(e) Contain the specific amount of the commitment. If an in-kind contribution, the market value in dollars of the commitment. If the match is a cash contribution, provide the dollar amount of the commitment.

(f) The letter must be signed by a person authorized to make the commitment.

h. Homeownership Unit. Homeownership unit means a housing unit that a local government makes available under this NOFA for purchase by a low-income family to use as its principal residence.

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&tpl=%2Findex.tpl http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&tpl=%2Findex.tpl

i. Initial Occupancy Period. Initial Occupancy Period is the period of time that a rental unit is occupied by the initial low-income resident, or the period of time that a homeownership unit is owned by the initial third-party low-income purchaser. There is no set requirement for the length of this occupancy period.

During this period, rental must be in accordance with the Main Street Use Restrictions, defined below. In general, the initial occupant has the same rent responsibilities and rights as a public housing resident in a HOPE VI development.

j. Jurisdiction. Jurisdiction means the physical area under the supervision of the local government applicant.

k. Leverage. Leverage means non-HOPE VI and non-Choice Neighborhoods funded donations of cash or in-kind services that are in excess of, and not included in, the five percent (5%) Match requirement of this NOFA. Leverage must be FIRMLY committed to the Project or the Main Street area redevelopment effort in general. In addition to the Commitment Letter requirements, as defined in Firmly Committed, above, information on Leverage resources should be included in form HUD-52861, HOPE VI Main Street Application Data Sheet, as an attachment to your application. The party or parties providing the commitment(s) must be in existence as of the date of the application for their sources to be considered as Leverage. Types of resources that may be counted are:

(1) Private mortgage-secured loans, other debt, housing trust funds, Homeownership sales proceeds that exceed the amount of Main Street grant funds used to develop the unit, tax increment financing (TIF), Tax Credit equity, other Federal, State or local public funds, private funds, in-kind services such as Homeownership Counseling (required if Homeownership units are developed), and other materials.

(2) The value of the real property that will be the subject of the Affordable Housing Project will not be counted towards Match or Leverage.

(3) If you are using Federal funds as part of the Leverage amount, you must confirm that you are allowed to be used these funds as leverage by that federal program.

(4) HUD will not count grantee staff time as Match or Leverage.

l. Local Government or Unit of Local Government. Local government means any city, town, township, village, county, parish, or other general purpose political subdivision of a state, Guam, the Northern Mariana Islands, the Virgin Islands, American Samoa, the District of Columbia, and the Trust Territories of the Pacific Islands. It does not include Native American governments or Public Housing Authorities.

m. Low-income Limits. Low-income limits prescribed by HUD are on the Internet at http://www.huduser .org/portal/datasets/il/il15/index_il2015.html. Low-income family means a family (resident) with an income equal to or less than 80 percent of HUD’s Median Family Income for the local area, adjusted for family size, in accordance with section3(b)(2) of the United States Housing Act of 1937, as amended (Section 8 eligibility). HUD may establish a level higher or lower than 80 percent because of the prevailing construction costs or unusually high or low family incomes in the area. “Local Area” is defined as the primary metropolitan statistical area/metropolitan statistical area (PMSA/MSA) or non-metropolitan county/parish as prescribed by HUD, in which the low-income family resides.

n. Main Street Affordable Housing Project (Project). The collection of affordable housing units that are developed in the Main Street Area using funds obtained through this NOFA and which meet the Program Requirements in Section III. of the NOFA. The Main Street Affordable Housing Project cannot replace demolished or otherwise disposed of, or rehabilitate, public housing units.

o. Main Street Area. Main Street Area is an area determined by the applicant, and designated on a map as part of your application, that fulfills the Program Requirements of this NOFA, and:

(1) Is within the jurisdiction of the Local Government applicant.

(2) Has specific boundaries that are determined by the applicant; and

(3) Is or was:

http://www.huduser.org/portal/datasets/il/il15/index_il2015.html

(3) Is or was:

(a) Traditionally the central business district and center for socio-economic interaction;

(b) Characterized by a cohesive core of historic and/or older commercial and mixed use buildings often interspersed with civic, religious, and residential buildings which represent the community’s architectural heritage; and

(c) Is the location of a downtown or “Main Street” existing rejuvenation effort that:

(i) Has as its purpose the revitalization or redevelopment of the historic or traditional commercial area;

(ii) Involves investment or other participation by the applicant and private parties in the community in which the Project is located; and

(iii) Involves the development of affordable housing that is located in the Main Street area.

p. Owner Entity. The legal entity that holds the title to the real property that contains any affordable housing units developed through this NOFA.

q. Site Control. Site Control means that the local government applicant, its Developer or other development manager procured by the applicant, has the legal authority to commit the owner of the property to the rehabilitation to be performed with grant funds from this

NOFA. Examples of site control are:

(1) The local government owns the property outright;

(2) The private owner entity of the property and the applicant have signed a developer agreement or the private owner entity is the developer;

(3) The government or private owner entity has signed an agreement with a separate developer and the agreement gives the developer site control;

(4) The applicant, developer or other development manager that has been procured by the applicant has an option to purchase the property from the private owner entity that covers a time period sufficient to obtain grant funds for purchase and environmental review approval (at least 180 days after the estimated award date), and is contingent only upon receipt of a grant from this NOFA and satisfactory compliance with this NOFA’s environmental review requirements;

(5) An owner-entity limited partnership formed for Tax Credit purposes that includes the original property owner and, possibly, the Developer and other interested parties that have control of the property.

r. Total Development Cost (TDC). Annually, HUD publishes a list of reasonable development costs for each size and type of public housing unit to be developed. Costs are included for Cities or Counties/Parishes where HUD performs public housing development.

(1) TDCs are used for two purposes in this NOFA;

(a) As a cost control requirement (see Section VI. of this NOFA), and

(b) As the basis for the initial determination of the grant amount.

(i) The maximum amount of funding requested must be based upon HUD’s published Total Development Cost (TDC) for the unit mix to be developed, up to the maximum allowable amount stated in this NOFA.

HUD's official table of FY2014 TDC amounts is located at http://portal.hud.gov/hudportal/HUD?src =/program_offices/public_indian_housing/programs/ph/capfund.

(2) The following documents and workbooks are available at http://www.hud.gov/mainstreet/:

(a) HUD’s Notice PIH-2011-38 (HA), Public Housing Development Costs Limits,

(b) The table of TDC amounts for FY2014, and http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ph/capfund http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ph/capfund http://www.hud.gov/mainstreet/

(c) The TDC calculator located in form HUD-52861, "HOPE VI Main Street Application Data Sheet".

(i) HUD has developed TDCs for Public Housing Agencies, not for small, non-metropolitan cities and towns. If the applicant's location is not listed, the applicant is advised to contact their local HUD Field Office to determine their TDC State and City. A Directory of HUD Offices can be found at http://portal .hud.gov/hudportal/HUD?src=/localoffices.

s. Use Restrictions. Main Street Use Restrictions require that:

(1) Unit rents, or the amortized mortgage monthly payment for Homeownership units:

(a) Must be set at or below 30% of the families’ adjusted gross income.

(b) Since Main Street units are not subsidized public housing units, and there are no public housing waiting lists, grantees may include family income as one of the criteria used to choose resident families.

That is, for low-income units, the grantee may choose residents whose adjusted gross family income is at or near 80% of the Area Family Income, as published by HUD under Income Limits at http://www.hudus er.org/portal/datasets/il/il15/index_il2015.html. For very low-income units, the grantee may choose residents whose adjusted gross family income is at or near 50% of the Area Family Income, as published by HUD.

(c) For rental units, the lease terms must provide the same resident rights as are provided to occupants of public housing units. For Main Street, these terms must include:

(i) No eviction without cause; and

(ii) An appeal process for residents receiving negative action by the property manager.

(c) For each unit, the above Use Restrictions expire after the initial resident, or Homeownership unit owner, leaves the Project. For all subsequent residents, the Main Street units become unlimited Market Rate units.

t. Very Low-Income Family. Very low-income family means a family or resident with an income not to exceed 50 percent of HUD’s Median Family Income for the local area adjusted for family size, in accordance with Section 3(b)(2) of the United States Housing Act of 1937, as amended. HUD may establish a level higher or lower than fifty percent (50%) because of prevailing construction costs or unusually high or low family incomes in the area. HUD’s prescribed Income Limits for very low-income families is published at http://www.huduser.org/portal/datasets/il/il15/index_il2015.html. Local area is defined as the PMSA/MSA or non-metropolitan county/parish as determined by HUD, in which the person resides.

B. Authority.

PROGRAM AUTHORITY:

a. The authority for the HOPE VI Main Street Program is Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), as amended by Section 535 of the Quality Housing and Work Responsibility Act of 1998 (Pub.L.105-276, 112 Stat. 2461, approved October 21, 1998); and the HOPE VI Program Reauthorization and Small Community Main Street Rejuvenation and Housing Act of 2003 (Pub. L. 108-186, 117 Stat 2685, approved December 16, 2003).

1.

FUNDING AUTHORITY:

a. Funding for the FY2015 award from this NOFA is provided by the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235, approved December 16, 2014).

b. HUD reserves the right to fund applicants from this NOFA during FY2016 to the extent that Congress provides future funding subject to Section 24 of the United States Housing Act of 1937

2.

http://portal.hud.gov/hudportal/HUD?src=/localoffices http://portal.hud.gov/hudportal/HUD?src=/localoffices http://www.huduser.org/portal/datasets/il/il15/index_il2015.html

(42 U.S.C. 1437v), as amended, and requires the set-aside of a portion of these funds for the Main Street program. The award of FY2016 Main Street funds for FY2015 applicants is contingent upon future congressional action. HUD’s intent to award FY2016 funds to FY2015 applicants will be announced separately if such funds become available.

II. Award Information.

A. Available Funds.

HUD is making available through this NOFA $500,000 for HOPE VI Main Street Grant Program.

Additional funds may become available for award under this NOFA as a result of HUD's efforts to recapture unused funds, use carryover funds, or because of the availability of additional appropriated funds. Use of these funds will be subject to statutory constraints. All awards are subject to the applicable funding restrictions described in the General Section and to those contained in this NOFA.

1. HUD reserves the right to fund applicants from this NOFA during FY2016 to the extent that Congress provides future funding subject to Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), as amended, and requires the set-aside of a portion of these funds for the Main Street program. The award of FY2016 Main Street funds for FY2015 applicants is contingent upon future congressional action.

HUD’s intent to award FY2016 funds to FY2015 applicants will be announced separately if such funds become available.

B. Number of Awards.

HUD expects to make approximately 1 awards from the funds available under this NOFA.

1. HUD expects to make approximately one (1) FY2015 award from the funds available under this NOFA.

2. HUD intends to award one FY2016 grant to applicants from this FY2015 NOFA, provided funds are appropriated by Congress for programs subject to Section 24 of the United States Housing Act of 1937.

C. Minimum/Maximum Award Information.

1. The amount of the award is based upon the Total Development Cost (TDC) of the number of affordable housing units that will be developed through the grant. See Total Development Cost under Definitions, Section I. of this NOFA.

2. Although awarded grant funds from this NOFA are obligated upon the award date, authority to expend funds must be obtained from HUD through Budget and Budget Revision requests that are based upon specific milestones and circumstances.

Estimated Total Funding: $500,000 Minimum Award Amount: $0 Per Project Period Maximum Award Amount: $500,000 Per Project Period D. Period of Performance.

1. The start date for awards is the date of the Award Notice Letter executed by HUD.

Estimated Project Start Date: 08/28/2015 Estimated Project End Date: 08/27/2019 48-month project with four 12-month budget periods

1. Other: The Project Development Period starts upon HUD approval of the Development Proposal, as described in the Grant Agreement.

2. Project site choice-limiting activities are not allowed until after written notice of an Environmental Review has been issued to HUD and has received HUD approval.

E. Type of Funding Instrument.

Funding Instrument Type: Grant

F. Supplementation.

1. Funds awarded under this NOFA cannot be used to supplement other HOPE VI or Choice Neighborhoods grants.

2. If the applicant was funded in the past for the same project proposed in the application, HUD will not fund a second grant for that project. HUD will review its past files to determine if HUD funded the project proposed in this application through another Main Street grant.

III. Eligibility Information.

A. Eligible Applicants.

Eligible applicants under the NOFA include:

County governments City or township governments Special district governments

Eligible applicants under this NOFA are limited to Units of General Local Government, defined as any city, town, township, village, county, parish, or other general purpose political subdivision of a state, Guam, the Northern Mariana Islands, the Virgin Islands, American Samoa, the District of Columbia, and the Trust Territories of the Pacific Islands. It does not include Native American governments or Public Housing Authorities.

1.

The above noted Local Government must:

Have a population of 50,000 or less;1.

Not be served by a local or county/parish Public Housing Agency (PHA) that administers more than 100 physical public housing units within the local government’s jurisdiction. Such units exclude Section 8 Housing Choice Voucher subsidized units.

2.

2.

Joint applications are not permitted. However, an applicant can enter into subaward agreements (or contracts) with nonprofit organizations and State or local governments. The applicant can also enter into contracts with for-profit entities. The Local Government grantee is subject to 2 CFR part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards when procuring supplies or services.

3.

One Main Street Project Funded. The applicant can only apply for funding to support one project in one cohesive Main Street Area. The Project may include several buildings.

4.

Thresholds Applicable to All Applicants. The applicant must meet all thresholds in order to be considered for rating, ranking and funding. Thresholds are located in Section III.A. of this NOFA.

5.

HUD does not award grants to individuals. HUD will also not evaluate applications from ineligible applicants.

All applicants must have an active Data Universal Numbering System (DUNS) number (http://fedgov.dnb.com/webform) and have an active registration in the System for Award Management (SAM) (www.sam.gov) before submitting an application. Getting a DUNS number and completing SAM registration can take up to four weeks; therefore applicants should start this process or check their status http://fedgov.dnb.com/webform http://www.sam.gov registration can take up to four weeks; therefore applicants should start this process or check their status early.

See also Section IV.B below for necessary content and form of the application.

B. Cost Sharing or Matching.

This Program requires an applicant to leverage resources through cost sharing or matching as described below.

Generally, federal sources are not allowed to be used as cost share or match unless otherwise permitted by a program’s authorizing statute.

1. A match of firmly committed cash or in-kind property or services of at least five percent (5%) of the requested grant amount is statutorily required to be considered for an award. Match must be used only to carry out eligible activities under this NOFA.

2. Match resources must be firmly committed to the Project in writing. Commitment Letters are required in your Main Street application to document resources designated for match purposes. To be counted toward match, the resources must be FIRMLY committed to the Project. A firm commitment letter must meet the following requirements:

a. Be on the letterhead of the entity providing the funding commitment.

b. Contain the name and contact information of a person that is familiar with the commitment.

c. Identify if the match commitment is cash or in-kind property or services.

d. Contain the specific amount of the commitment. If an in-kind commitment, the market value in dollars of the commitment. If the match is in cash, provide the dollar amount the commitment.

e. The letter must be signed by a person authorized to make the commitment.

3. The Match commitment may include the value of building(s) that are identified in your application as part of the Main Street Project.

4. Match must not include funds from other Section 24 grants, i.e., HOPE VI, Main Street or Choice Neighborhoods.

C. Other.

All applicants must also refer to Section III of the General Section for information on HUD-wide eligibility requirements. These requirements may determine whether your application is reviewed or make your application ineligible for funding.

Program specific eligibility criteria for this competition includes:

1. Statutory and Regulatory Requirements.

Per the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235, approved December 16, 2014), this NOFA is subject to Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), as amended by Section 535 of the Quality Housing and Work Responsibility Act of 1998 (Pub.L.105-276, 112 Stat. 2461, approved October 21, 1998); and the HOPE VI Program Reauthorization and Small Community Main Street Rejuvenation and Housing Act of 2003 (Pub. L.

108-186, 117 Stat 2685, approved December 16, 2003).

http://www.sam.gov

2. Threshold Requirements.

Only applications that meet all threshold requirements established in the General Section and Program NOFA will be evaluated. In addition to the threshold criteria outlined in the General Section, including the Resolution of Outstanding Civil Rights Matters (prior to application deadline), the following threshold requirements must be met:

a. Thresholds Applicable to All Applicants. The applicant must meet all thresholds in order to be rated, ranked and funded.

b. Applicant Eligibility. The applicant must be an eligible applicant as stated in Section III.A. of this NOFA, above, in accordance with Section 24 of the Housing Act of 1937, as amended.

c. Main Street Area Defined in a Map. The applicant must have within its jurisdiction a Main Street Area which meets the definition in this NOFA, and the applicant must provide a map, decipherable in gray-scale print, depicting the Main Street area boundaries. The map must denote Project site location(s), mass-transit stops (if there is no mass-transit in the applicant's jurisdiction, the applicant must state so on the map) and the Main Street Area’s boundaries. The boundaries must be physical objects and must be visible and identifiable on the map, e.g., streets, rail lines, rivers, man-made or natural boundaries clearly depicted on the map. The information required above may be hand drawn on the map.

3. Compliance with Nondiscrimination and Related Requirements.

The civil rights threshold and non-discrimination requirements identified in the FY2015 General Section to HUD’s NOFAs apply to this program, including compliance with Section 504 of the Rehabilitation Act and Titles II and II of the American Disabilities Act, as applicable, with respect to physical accessibility requirements for persons with disabilities. See Section III.C.3.a. of the General. The civil rights threshold applies to the grantee and any subgrantee or contractor in a HOPE VI Main Street project.

4. Other Requirements.

This program has eligibility criteria for beneficiaries.

Program Requirements. The following program requirements are applicable to the Main Street program.

These program requirements must be implemented under awards from this NOFA:

a. Affirmatively Furthering Fair Housing (AFFH). Grantees are required to affirmatively further fair housing in conducting their work under this NOFA. This includes affirmatively marketing if there are 5 or more units. The Developer’s or other development manager’s Statement of Work must identify steps the applicant will take to meet this requirement during the period of performance of this award.

b. Fair Housing and Equal Opportunity Requirements.

(1) HUD's general non-discrimination and equal opportunity requirements at 24 CFR 5.105(a) apply to the HOPE VI Main Street Program. PIH Notice 201026 available at http://www.hud.gov/offices/pih/publi cations/notices/ provides an overview of pertinent laws and implementing regulations concerning non-discrimination and accessibility for persons with disabilities that apply to HOPE VI Main Street grants based upon other non-public housing statutes and regulation. The civil rights laws and implementing regulations apply to the grantee and any sub-grantee or contractor in a HOPE VI Main Street project.

(2) Applicants are reminded that, pursuant to Section 504, Main Street multifamily housing projects that include substantial alterations to housing or include new construction of housing must provide a minimum of five percent (5%) of the units or one unit, whichever is greater, accessible to persons with mobility impairments. An additional 2 percent (2%), but not less than one (1) unit, must be made accessible for persons with a hearing or vision impairment (see 24 CFR parts 8.20 through 8.32).

http://www.hud.gov/offices/pih/publications/notices/ http://www.hud.gov/offices/pih/publications/notices/ persons with a hearing or vision impairment (see 24 CFR parts 8.20 through 8.32).

(3) By definition, "Covered multifamily dwellings" means buildings consisting of four or more dwelling units if such buildings have one or more elevators; and ground floor dwelling units in other buildings consisting of four or more dwelling units.

(4) In addition under the Fair Housing Act, all new construction of covered multifamily dwellings and rehabilitation that results in a covered multifamily dwelling must contain certain features of accessible and adaptable design that comply with the design and construction requirements at 42 U.S.C. § 3604(f)(3)(C).

HUD’s Fair Housing and Equal Opportunity (FHEO) website is located at http://portal.hud.gov/hudportal /HUD?src=/program_offices/fair_housing_equal_opp. Under HUD’s regulations at 24 CFR 100.201, covered multifamily dwelling means buildings consisting of four or more dwelling units if such buildings have one or more elevators, and ground floor dwelling units in other buildings consisting of four or more dwelling units. This requirement is in addition to other non-HUD accessibility requirements which the applicant’s State or local government may require.

c. The Main Street Affordable Housing Project. The Main Street Affordable Housing Project must:

(1) Involve the construction or major rehabilitation of space into affordable housing units.

(2) Be located within the boundaries of your designated Main Street Area;

(3) Not replace demolished or otherwise disposed of, or rehabilitate existing, public housing units; and

(4) Not exceed allowable Total Development Costs (TDC). See Section VI., “Funding Restrictions,” for information on TDCs.

d. Approval of Acquisition and Construction: Grantees must obtain HUD approval of their Development Proposal before funds will be released for site acquisition, if any, and construction. HUD’s acceptance of your 24 CFR part 58 environmental review and approval is considered part of the Development Proposal and is required prior to HUD’s approval of the Development Proposal. See Section III.C.2.l. and Sections

l. and m., below, of this NOFA for environmental requirements.

e. Cost Control and Safe Harbor Standards. Grantees must comply with HOPE VI Main Street Cost Control and Safe Harbors Standards which are available at http://www.hud.gov/mainstreet under the Cost Guidelines section of HUD’s Main Street website. The standards state limits to Developer and construction fees. See Section VI.E., “Funding Restrictions” for Safe Harbors information.

f. Limitation of Eligible Expenditures. Expenditures on services, equipment, and physical improvements must directly relate to Project activities allowed under this NOFA.

g. Initial Occupancy Period Requirements (Use Restrictions).

(1) Project units must be maintained as affordable housing only for the period of initial rental occupancy of the unit or the initial resident’s ownership. The initial resident of each affordable rental unit and the initial resident purchaser of each affordable homeownership unit must be subject to the same rules regarding occupant contribution towards rental or purchase, and to the basic resident rights for rental or purchase, as residents of Section 24public housing units or Homeownership units. Site-based waiting lists, resident job or training requirements, flat rents, and other occupancy requirements are allowed under the U.S. Housing Act of 1937 (1937 Act) and may be applied to the units, at the applicant’s discretion.

(2) Unit rents, or the amortized mortgage monthly payment for Homeownership units must be set at or below 30% of the families’ adjusted gross income. Since Main Street units are not subsidized public housing units, and there are no public housing waiting lists, grantees may include family income as one of the criteria used to choose resident families. That is, for low-income units, the grantee may choose residents whose adjusted gross family income is at or near 80% of the Area Family Income, as published by HUD under Income Limits at http://www.huduser.org/portal/datasets/il/il15/index_il2015.html. For very low-income units, the grantee may choose residents whose adjusted gross family income is at or near 50% of the Area Family Income, as published by HUD.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp http://www.hud.gov/mainstreet

50% of the Area Family Income, as published by HUD.

(3) The regulations at 24 CFR part 966, “Public Housing Lease and Grievance Procedures” and Public and Indian Housing implementing Handbooks and Notices are not applicable to the HOPE VI Main Street Program. However, applicants may want to use those regulations and documents as a guide.

(4) Minimum down payment for homeownership purchase of one percent (1%) of the sale price or other minimum as approved by HUD is required.

(5) Initial residents cannot be evicted without cause.

(6) Initial residents must have the right to appeal detrimental actions by the landlord. The regulations at 24 CFR part 966, subpart B may be used as a guide.

(7) For the Main Street units, the Project owner is not required to develop and maintain PHA rental documentation as described in The Public and Indian Housing Occupancy Reporting Handbook (7465.3).

However, admissions, occupancy, and income records for the Main Street units must be maintained in order for HUD to verify that the above Use Restrictions have been applied during the initial occupancy period. HUD reserves the right to access grantee documents related to the Use Restriction.

h. Requirements from Other Programs. To the extent that HOPE VI Main Street funds are combined with other federal program funds for a Main Street Affordable Housing project, the requirements from those programs may apply to the Affordable Housing project proposed in the application to this NOFA. If Community Development Block Grant (CDBG) or other HUD funds are included in the financing for these Affordable Housing units, Davis-Bacon labor rates apply. See Section III.C.1.s. of this NOFA.

i. Main Street Homeownership Counseling and Community and Supportive Services. The initial sale of an affordable homeownership unit to a third-party, low-income purchaser must take place in accordance with Section 24 of the 1937 Act. Providing homeownership counseling to residents is mandatory if the application proposes homeownership units. The cost of such counseling is considered a Community and Supportive Service and is excluded from the TDC limit for unit development. If listed in form HUD-52861, HOPE VI Main Street Application Data Sheet, on the TDC Limit Calculations page, such funds will be added to the grant amount, up to the maximum grant amount of $500,000. Other Community and Supportive Services, as described in the Definition of Terms, Section I.