12 shop nofa final.pdf

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5600-N-05]

Notice of Funding Availability for Fiscal Year 2012

Self-Help Homeownership Opportunity Program (SHOP)

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

ACTION: Notice of Funding Availability (NOFA) for Fiscal Year 2012 for the Self-Help

Homeownership Opportunity Program (SHOP).

SUMMARY: This SHOP NOFA announces the availability of $13,500,000 in FY 2012 SHOP funding to be awarded to national and regional non-profit organizations and consortia to facilitate and encourage innovative homeownership opportunities on a national, geographically diverse basis through the provision of self-help homeownership housing programs.

This SHOP NOFA is governed by the information and instructions found in this SHOP NOFA and the

Fiscal Year (FY) 2012 Notice of Funding Availability “Policy Requirements and General Section to

HUD’s FY2012 NOFAs for Discretionary Programs” (the General Section), posted to www.grants.gov on September 19, 2011. Applicants for assistance are directed to review the FY2012 General Section as well as this SHOP NOFA.

SHOP grant funds are awarded to national and regional non-profit organizations and consortia to facilitate and encourage innovative homeownership opportunities on a national, geographically diverse basis through the provision of self-help homeownership housing programs. Applicants must propose to use a significant amount of SHOP funds in at least two states. SHOP funds must be used for land acquisition, infrastructure improvements, and for reasonable and necessary planning, administration and management costs (not to exceed 20 percent). The construction or rehabilitation costs of each SHOP unit must be funded with other leveraged public and private funds. The average SHOP expenditure for the combined costs of land and infrastructure must not exceed $15,000 per SHOP unit. Eligible low-income homebuyers must contribute a significant amount of sweat equity towards the development of the SHOP units. Donated volunteer labor is also required. Assisted units must be decent, safe, and sanitary non-luxury dwellings that comply with local building and safety codes and standards, and with the SHOP requirements. The SHOP units must be sold to the homebuyers at prices below the prevailing market price. The homebuyer’s sweat equity contribution must not be mortgaged or otherwise restricted upon future sale of the SHOP unit. SHOP grantees may award SHOP funds to affiliates to carry out the grantee’s SHOP program. These affiliates must be located within the grantee’s service area.

FOR FURTHER INFORMATION: Questions regarding specific SHOP NOFA requirements should be directed to Ms. Ginger Macomber, SHOP Program Manager, Office of Affordable Housing

Programs, at (202) 402-4605. Questions regarding the FY2012 General Section should be directed to the Office of Departmental Grants Management and Oversight at (202) 708-0667 (this is not a toll-free number) or the NOFA Information Center at 800-HUD-8929 (toll-free). Persons with hearing or speech impairments may access these numbers via TTY by calling the Federal Relay Service at 800-877-8339.

The NOFA Information Center is open between the hours of 10:00 a.m. and 6:30 p.m. eastern time, Monday through Friday, except federal holidays.

OVERVIEW INFORMATION

A. Federal Agency Name. The federal agency is the Office of Community Planning and Development

(CPD), U.S. Department of Housing and Urban Development (HUD).

B. Funding Opportunity Title. The funding opportunity title is the Self-Help Homeownership

Opportunity Program (SHOP).

C. Announcement Type. This is the initial announcement.

D. Funding Opportunity Number. The funding opportunity number for this SHOP NOFA is FR-

5600-N-05, OMB Approval Number 2506-0157.

E. Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA number for the Self-Help

Homeownership Opportunity Program is 14.247.

F. Dates. The SHOP application deadline date is April 30, 2012. Applications must be received by www.grants.gov no later than 11:59:59 p.m. Eastern Standard time on the application deadline date.

Following receipt, applications go through a validation process through which an application will be accepted or rejected. Please allow time for this process to ensure that you meet the timely receipt requirements. Refer to the General Section IV.C. for additional guidance.

G. Additional Overview Content Information.

1. Available Funds. The available amount of SHOP funds is $13,500,000.

2. Competitive Award. SHOP funds are awarded competitively based on the response of applicants to the Threshold Requirements and the rating and ranking criteria set forth in this SHOP NOFA.

FULL TEXT OF ANNOUNCEMENT

I. Funding Opportunity Description

A. Program Description. SHOP funds are awarded to national and regional non-profit organizations and consortia to facilitate and encourage innovative homeownership opportunities on a national, geographically diverse basis through the provision of self-help homeownership housing programs.

SHOP grantees must use a significant amount of SHOP funds in at least two states. SHOP funds must be used for land acquisition, infrastructure improvements, and for reasonable and necessary planning, administration and management costs (not to exceed 20 percent). The construction or rehabilitation costs of each SHOP unit must be funded with other leveraged public and private funds. The average

SHOP expenditure for the combined costs of land and infrastructure must not exceed $15,000 per SHOP unit. Eligible low-income homebuyers must contribute a significant amount of sweat equity towards the development of the SHOP units. Donated volunteer labor is also required. Assisted units must be file:///C:/Documents%20and%20Settings/H10609/Local%20Settings/Temporary%20Internet%20Files/Content.Outlook/X5B3WM2G/www.grants.gov decent, safe, and sanitary non-luxury dwellings that comply with local building and safety codes and standards, and with the SHOP requirements. The SHOP units must be sold to the homebuyers at prices below the prevailing market price. The homebuyer’s sweat equity contribution must not be mortgaged or otherwise restricted upon future sale of the SHOP unit. SHOP grantees may award SHOP funds to affiliates to carry out the grantee’s SHOP program. These affiliates must be located within the grantee’s service area.

B. Authority. SHOP is authorized by Section 11 of the Housing Opportunity Program Extension Act of

1996 (Public Law 104-120, as amended, 42 U.S.C. 12805 note) (the “Act”). SHOP funds were appropriated for FY2012 on November 18, 2011, by the Department of Housing and Urban

Development Appropriations Act of 2012, Public Law 112-55, 125 Stat. 552.

II. Award Information.

$13,500,000 is available to fund grant awards under the FY2012 SHOP NOFA competition. Any unobligated funds from previous SHOP NOFA competitions or additional funds that become available due to deobligation or recapture from previous awards may be added to the FY2012 funding amount.

Awards will be made to successful applicants in the form of a grant. Grant funds must be expended within 24 months of the date that the SHOP funds are first made available for drawdown in the grantee’s line of credit established by HUD, except that grant funds provided to an affiliate that develops five or more SHOP units must be expended within 36 months of the date that the SHOP funds are first made available for drawdown in the grantee’s line of credit established by HUD.

III. Eligibility Information

A. Eligible Applicants

1. National or Regional Non-profit Organization. You must be a public or private non-profit organization, or a consortium of public or private non-profit organizations, which has the capacity and experience to provide or facilitate self-help homeownership housing opportunities on a national or regional basis. Individuals and local non-profit organizations are not eligible to apply for SHOP funds.

However, a local non-profit self-help homeownership housing organization may participate as an affiliate of a national or regional SHOP grantee. The term “you” as used in this SHOP NOFA refers to the SHOP applicant, including all consortium members. The term “consortium” refers to all consortium members. The term “grantee” refers to successful SHOP applicants, including all consortium members, who have been awarded SHOP funds under this SHOP NOFA. You must propose to undertake eligible

SHOP activities directly and/or to enter into a written agreement with one or more affiliate non-profit self-help homeownership housing organizations to carry out your eligible SHOP activities. See SHOP

NOFA Section III.C.3.b for the Threshold Requirements for non-profit status.

a. National Organization. A national organization is a public or private non-profit organization that carries out self-help homeownership housing activities or funds affiliates that carry out self-help homeownership housing activities on a national scale.

b. Regional Organization. A regional organization is a public or private non-profit organization that carries out self-help homeownership housing activities or funds affiliates that carry out self-help homeownership housing activities on a regional scale. A regional area is a geographic area, such as the

Southwest or Northeast that includes at least two states. The states in the region need not be contiguous, and the service area of the organization need not precisely conform to state boundaries.

2. Consortium. A consortium is two or more public or private non-profit organizations located in at least two states that enter into an agreement to submit a single application for SHOP funding to carry out self-help homeownership housing activities on a national or regional basis. Refer to SHOP NOFA

Section III.C.3.c. Individual consortium members may carry out self-help homeownership housing activities or fund affiliates to carry out self-help homeownership housing activities.

3. Affiliate. An affiliate must be located within your service area. An affiliate is:

a. Subordinate Organization. A local non-profit self-help homeownership housing organization that is a subordinate organization (i.e., chapter, local, post, or unit) of your central organization and covered by the group exemption issued to the central organization under section 501(c) (3) of the Internal Revenue

Code; or

b. Organization with an Existing Relationship. A local non-profit self-help homeownership housing organization with which you have an existing relationship (e.g., you have provided technical assistance, mentoring or funding to the local self-help homeownership housing organization); or

c. Organization with a Future Relationship. A local non-profit self-help homeownership housing organization with which you do not have an existing relationship, but to which you will provide technical assistance, mentoring or funding in accordance with your SHOP application.

4. Written Agreements. You must have a written agreement with each affiliate that incorporates the requirements of this FY2012 SHOP NOFA. Your written agreement must describe the SHOP responsibilities of your affiliate. If you are a consortium, each of your affiliates must be linked to an individual consortium member by a written agreement. You must execute a new written agreement with each affiliate that is participating in your FY2012 SHOP program. You may not amend a prior written agreement.

B. Cost Sharing or Matching. There is no cost sharing or matching requirement under this SHOP

NOFA. However, grantees are required to leverage resources for the construction and/or rehabilitation of self-help homeownership housing units that are assisted with SHOP funds.

C. Other

1. HUD’s Strategic Plan Goals. Refer to the General Section I.C. for HUD’s “Strategic Plan Goals to

Create Strong, Sustainable, Inclusive Communities and Quality Affordable Homes for All.”

2. Policy Priorities. Refer to the General Section I.B. “Policy Priorities” and to SHOP NOFA Section

V.A.3.e., Rating Factor 3 “Policy Priorities” for information regarding application criteria addressing

HUD’s policy priorities.

3. Threshold Requirements. SHOP is governed by Section 11 of the Housing Opportunity Program

Extension Act of 1996 (Public Law 104-120, as amended, 42 U.S.C. 12805 note) (the “Act”), the

General Section and this SHOP NOFA. HUD will not consider an application from an ineligible applicant or from an applicant that does not meet the timely application receipt requirements of this

SHOP NOFA and the General Section IV.C. “Receipt Dates and Times.” To be considered an eligible applicant, you must meet all of the Threshold Requirements listed in the General Section III.C.2. and the following SHOP NOFA Threshold Requirements. HUD will review your SHOP application submissions for “Applicant Eligibility” and “SHOP Program Design and Scope of Work” to ensure that you have met all of these Threshold Requirements. SHOP “Applicant Eligibility” submission requirements are described in SHOP NOFA Section IV.B.7.b. “SHOP Program Design and Scope of

Work” submission requirements are described in SHOP NOFA Section IV.B.7.c.

a. Eligible Applicant. The statute requires that SHOP grants be made available to “national and regional organizations and consortia that have experience in providing or facilitating self-help homeownership housing opportunities.” You must be an eligible SHOP organization as defined in

SHOP NOFA Section III.A.

b. Non-profit Status. You and your affiliates must qualify as eligible public non-profit organizations or private non-profit organizations under federal or state law.

c. Consortium Agreement. If you are a consortium, each consortium member must enter into and sign a written consortium agreement for the purpose of applying for SHOP funds and carrying out SHOP activities in compliance with this SHOP NOFA. The consortium agreement must designate t a lead entity. Refer to SHOP NOFA Section IV.B.7.b.(2).

d. Geographic Diversity. You must propose to use a significant amount of SHOP funds in at least two states.

e. Experience. The statute requires that applicants “have experience in providing or facilitating self-help homeownership housing opportunities.” Your organization must have successfully completed at least 30 self-help homeownership housing units in a national or regional area within the 24-month period immediately preceding the publication of this SHOP NOFA. This may include self-help homeownership housing units completed by one or more of your affiliate organizations during this time period, provided these units were undertaken in accordance with a written agreement between you and your affiliate organization(s). For a dwelling to qualify as a self-help homeownership housing unit, the homebuyer must have contributed a significant amount of sweat-equity toward the construction or rehabilitation of the unit as set forth in SHOP NOFA Section III.C.3.j. “Sweat Equity.”

f. Number of Units. The statute requires the grantee to “develop a specific and reasonable number of dwellings using the grant amounts, which number shall be established taking into consideration costs and economic conditions in the areas in which the dwellings will be developed, but in no case shall be less than 30.” You must propose to develop a minimum of 30 self-help homeownership housing units.

The average SHOP expenditure for the combined costs of land acquisition and infrastructure improvements must not exceed $15,000 per dwelling unit.

g. Eligible Activities. The statute requires that “amounts from grants…, including any recaptured amounts, shall be used only for eligible expenses in connection with developing new decent, safe, and sanitary, non-luxury dwellings.” You must propose to use SHOP funds only for eligible activities.

Eligible costs must be incurred on or after the publication date of this SHOP NOFA. You may carry out the eligible activities yourself or fund your affiliates to carry out your eligible activities. There are three categories of eligible activities. Refer to SHOP NOFA Section IV.E. “Funding Restrictions” for additional guidance on pre-agreement costs, ineligible costs and other restrictions.

(1) Land Acquisition. The acquisition of land (including financing and reasonable and customary closing costs) for the purpose of developing or rehabilitating SHOP units is an eligible activity. On or after the date of this SHOP NOFA, you and your affiliates may expend non-grant funds to acquire land, including land acquired before completion of the environmental review process. You may use your SHOP grant funds to reimburse these costs after your SHOP grant agreement has been executed and the required environmental review process has been successfully completed. However, these costs are reimbursable only when identified as pre-agreement costs in your SHOP application.

Refer to SHOP NOFA Section IV.E. “Funding Restrictions.”

(2) Infrastructure Improvements. The installation, extension, construction, rehabilitation, or other improvement of utilities and other infrastructure (including the removal of environmental hazards) in support of the development or rehabilitation of SHOP units are eligible activities. Infrastructure costs must not be incurred before the required environmental review process has been successfully completed.

(3) Planning, Administration, and Management. The reasonable and necessary cost of the planning, administration and management of your SHOP grant is an eligible activity. Eligible costs include staff and overhead costs of implementing your SHOP grant; costs of providing information to the public about your SHOP grant; costs of providing civil rights and fair housing training to your local affiliates; and any expenses involved in affirmatively furthering fair housing. The indirect costs (such as rent and utilities) of you and your affiliates in carrying out your SHOP activities are also eligible. You must charge indirect costs in accordance with the methods described in 2 CFR Part 230 “Cost Principles for Non-Profit Organizations” (OMB Circular A-122). SHOP funds may not be used for planning, administration or management expenses that are not related to implementing your SHOP activities.

Refer to SHOP NOFA Section VI.B. “Administrative and National Policy Requirements” for additional guidance. Eligible planning, administration and management costs must not exceed 20 percent of your

SHOP grant.

h. Property Standards. The statute requires that funds be used for quality “decent, safe and sanitary non-luxury dwellings” that “comply with local building safety codes and standards.” You must have procedures to ensure that all units developed by you and your affiliates comply with these property standards.

i. Homebuyer Eligibility. The statute requires that funds benefit “low-income families and individuals who otherwise would be unable to afford to purchase a dwelling.” Eligible homebuyer households must be low-income individuals and families whose incomes do not exceed 80 percent of the median income for the area, as established by HUD. You must use one of the following definitions of “annual income” to determine whether a homebuyer is income-eligible under SHOP. You must have procedures to clearly document that assisted homebuyers are income-eligible.

(1) Annual Income as defined at 24 CFR 5.609; or

(2) Adjusted Gross Income as defined for purposes of reporting under the IRS Form 1040 series for individual federal annual income tax purposes; or

(3) Grantee Definition. You may adopt your own definition of “annual income” to determine whether a homebuyer is income-eligible. This definition must be included in your SHOP Program

Design and Scope of Work and approved by HUD. Refer to SHOP NOFA Section IV.B.7.c.(7).

j. Sweat Equity. The statute requires that self-help homeownership housing opportunities be provided

“under which the homeowner contributes a significant amount of sweat equity toward the construction of the new dwelling.”

(1) Minimum Sweat Equity Contribution. Your SHOP Program Design must require the homebuyer to contribute a minimum number of sweat equity hours toward the construction or rehabilitation of the homebuyer’s SHOP unit and/or the homes of other homebuyers participating in the self-help homeownership housing program administered by you or your affiliates. “Homebuyer” means the individual or individuals who will hold Title to the completed SHOP unit. If an individual will hold the Title, the homebuyer must contribute a minimum of 50 hours of sweat equity. If more than one individual will hold the Title, the homebuyer must contribute a minimum of 100 hours of sweat equity.

Sweat equity includes training on the construction of the dwelling units, but excludes homebuyer counseling and home maintenance training. You must permit reasonable accommodations for persons with disabilities in order for them to meet these hourly requirements. For example, homebuyers with disabilities may work on less physical tasks or administrative tasks, or use volunteers to provide the required sweat equity. If a disabled homebuyer uses volunteers, the disabled homebuyer must enter into a written three-party agreement with the affiliate or the grantee (if the grantee directly administers the program) and the volunteer working on behalf of the homebuyer. All homebuyers, including homebuyers with disabilities, must meet these minimum sweat equity requirements. You may not make exceptions to these requirements.

(2) Value of Sweat Equity Contribution. The homebuyer must receive the full value of the homebuyer’s sweat equity contribution as an equity contribution towards the purchase of the homebuyer’s SHOP unit. For example, the unit’s sale price may be reduced by the value of the sweat equity contribution, or the value of the sweat equity contribution may be treated as a credit towards the unit’s contract sale price. As per SHOP NOFA Section III.C.3.n., the homebuyer’s sweat equity contribution must not be mortgaged or otherwise restricted upon future sale of the SHOP unit.

k. Volunteer Labor. The statute requires that activities to develop SHOP-assisted self-help homeownership housing “involve community participation in which volunteers assist in the construction or rehabilitation of dwellings.” Your SHOP Program Design must include volunteer labor. Volunteer labor is work performed by an individual without promise, expectation, or compensation for the work rendered. Volunteer labor may be professional or non-professional labor donated by community members, other volunteers, or household members who are not homebuyers.

l. No Financial Contribution by the Homebuyer. The statute requires that dwellings developed in connection with SHOP assistance be provided to “families and persons who are unable to afford to purchase a dwelling.” You and your affiliates must not require a homebuyer to make any financial contribution towards the purchase of a SHOP unit, other than cash contributed for a downpayment and reasonable and customary closing costs.

m. Sale Price. The statute requires that dwellings constructed in connection with SHOP assistance be made “available at prices below the prevailing market prices.” You must sell each SHOP unit below the appraised value of the property. Lenders may charge reasonable and customary closing costs for the area in which the unit is located. The amount of the SHOP unit mortgage or loan may include these closing costs, but the amount of closing costs must be separately identified and not included in the sale price. Refer to SHOP NOFA Section III. C.3.n. for additional guidance.

n. Mortgages and Other Loans. The homebuyer’s sweat equity contribution must not be mortgaged or otherwise restricted upon future sale of the SHOP unit. In order to make the cost of homeownership more transparent to individual homebuyers, at or before closing you must provide each homebuyer with unit-specific information on the cost and carrying charges for the homebuyer’s SHOP unit that is similar to information required on the HUD-1 “Settlement Charges.” The following examples demonstrate compliance with the SHOP restrictions on mortgages:

(1) Sale Price Reduction. The SHOP unit sale price is reduced by the value of the homebuyer’s sweat equity. On the date of sale, the total amount of all mortgages and other loans for the purchase of the SHOP unit does not exceed the SHOP unit’s reduced sale price plus reasonable and customary closing costs.

(2) Homebuyer Credit. The value of the homebuyer’s sweat equity is treated as a credit towards the SHOP unit sale price. On the date of sale, the total amount of all mortgages and other loans for the purchase of the SHOP unit does not exceed the SHOP unit’s sale price plus reasonable and customary closing costs minus the homebuyer’s sweat equity credit.

o. Leveraged Resources. The statute requires SHOP grantees to use their grants to “leverage other sources of funding, including private or other public funds,” to complete construction or rehabilitation of their SHOP units. You and your affiliates must obtain commitments of resources (or have the capacity to obtain commitments) necessary to develop the number of SHOP units that you propose.

p. No Duplicate Submissions. You must not propose to fund any affiliate or consortium member under your FY2012 SHOP application that is also seeking FY2012 SHOP funding from another SHOP applicant. If an affiliate applies for funds through more than one applicant, it may be disqualified for funding from any applicant that receives a grant.

q. Dun and Bradstreet Data Universal Numbering System (DUNS). You must have a DUNS number to receive a SHOP grant. Refer to the General Section III.C.2.b. for information regarding the

DUNS requirement. Additional Information on obtaining a DUNS number is available at http://www.hud.gov/offices/adm/grants/duns.cfm.

http://www.hud.gov/offices/adm/grants/duns.cfm

r. Central Contractor Registration (CCR). You must register or update your current registration in the Central Contractor Registration to receive a SHOP grant. Information on CCR registration is available at http://www.ccr.gov/Renew.aspx.

4. Other Statutory and Program Requirements. There are no SHOP program regulations. The grantee and its affiliates must comply with all statutory and regulatory requirements applicable to SHOP cited in the General Section III.C., all non-discrimination and other laws and requirements cited in the

General Section III.C.5., and other statutory and program requirements cited in the General Section and this SHOP NOFA, including:

a. Grant Term. The statute requires the Secretary “to recapture any grant amounts provided to the organization that are not used within 24 months after the amounts are first disbursed to an organization or consortium except that such period shall be 36 months…in the case of grant amounts provided to a local affiliate…that is developing five or more dwellings.” The grantee must expend all grant funds within 24 months of the date that the funds are first made available for drawdown in the grantee’s line of credit established by HUD, except that grant funds provided to an affiliate that develops five or more

SHOP units (and grant funds used by the grantee for directly related administrative costs) must be expended within 36 months of the date that the funds are first made available for drawdown in the grantee’s line of credit established by HUD. The grantee and its affiliates must develop and convey all proposed SHOP units in a timely manner in accordance with the schedule the grantee submits in response to SHOP NOFA Rating Factor 3, or as subsequently may be amended with HUD approval.

b. Energy-Efficiency. The grantee and its affiliates must incorporate specific energy-efficiency measures in the construction and/or rehabilitation of the grantee’s SHOP units.

All SHOP units in newly constructed buildings must be certified as meeting the guidelines for either

ENERGY STAR New Homes or ENERGY STAR Multifamily High Rise (MFHR), as determined by the U.S. Environmental Protection Agency and the U.S. Department of Energy. All SHOP units in gut rehabilitated buildings that qualify for either ENERGY STAR New Homes or ENERGY STAR

Multifamily High Rise (MFHR) must be certified as meeting these guidelines, as determined by the U.S.

Environmental Protection Agency and the U.S. Department of Energy.

For SHOP units that are not certified as meeting the guidelines for ENERGY STAR New Homes or

ENERGY STAR Multifamily High Rise (MFHR), all features, appliances and products that are installed or replaced must have an ENERGY STAR label (when such ENERGY STAR features, appliances and products exist) and be installed in accordance with the ENERGY STAR requirements. ENERGY STAR features, appliances and products must be used that are appropriate for achieving energy-efficiency for the Climate Zone in which the unit is located, in accordance with ENERGY STAR requirements. For lighting, the Grantee must use ENERGY STAR labeled CFLs, LEDs, or pin-based lighting fixtures or light bulbs.

ENERGY STAR is an energy-conservation program sponsored by the U.S. Environmental Protection

Agency and the U.S. Department of Energy. Information about ENERGY STAR guidelines can be found at http://www.energystar.gov. At such time as the ENERGY STAR or HUD’s energy-efficiency standards or requirements shall change, HUD shall require compliance with the updated standards or requirements after providing the Grantee with reasonable notice.

http://www.ccr.gov/Renew.aspx http://www.energystar.gov/

All SHOP homebuyers must be provided guidance on the proper use and maintenance of the energy-saving features, appliances and products that have been installed in their units.

c. Water Conservation. The grantee and its affiliates must incorporate specific water-conservation measures in the construction and/or rehabilitation of the grantee’s SHOP units. All water-usage products that are installed or replaced in SHOP units, including toilets, showers and faucets, must bear the “WaterSense” label when such WaterSense products exist.

WaterSense is a water conservation program sponsored by the U.S. Environmental Protection Agency

(EPA). Information about WaterSense products can be found at http://www.epa.gov/watersense/.

All SHOP homebuyers must be provided guidance on the proper use and maintenance of the water conservation products that have been installed in their units.

d. Affirmatively Furthering Fair Housing. The grantee must affirmatively further fair housing by promoting fair housing rights and fair housing choice in housing programs funded by the grantee’s

SHOP award. When the grantee will carry out self-help homeownership housing activities under its

SHOP grant, the grantee must adopt and follow affirmative marketing requirements and procedures.

When the grantee’s affiliates will carry out self-help homeownership housing activities under the grantee’s SHOP grant, the grantee must require each affiliate to adopt and follow affirmative marketing requirements in accordance with the grantee’s established procedures. Affirmative marketing consists of taking actions to provide information and otherwise attract eligible persons in the housing market to the grantee’s SHOP program without regard to race, color, national origin, sex, religion, familial status or disability. Affirmative marketing includes, but is not limited to, informing the public and potential homebuyers about federal fair housing laws; using the Equal Housing Opportunity logo on promotional materials; and directing marketing efforts specifically towards persons in the housing market area who, although eligible, are least likely to apply for the program in the absence of such outreach. Refer to the

General Section III.C.5.b. for more information on affirmatively furthering fair housing. The grantee and its affiliates must also encourage racial and ethnic diversity in the selection of SHOP housing sites.

If the grantee will use a competitive process to select affiliates, the grantee’s selection criteria must consider how an affiliate’s proposal will enhance racial and ethnic diversity.

e. Accessibility for Qualified Individuals with Disabilities. The grantee and its affiliates must comply with Section 504 of the Rehabilitation Act of 1973 and HUD’s implementing regulations at 24 CFR Part

8 concerning accessibility for qualified individuals with disabilities. Units must be newly constructed or rehabilitated to be accessible upon request of the homebuyer in accordance with 24 CFR 8.29.

f. Economic Opportunities for Low- and Very Low-Income Persons (Section 3). The grantee and its affiliates must comply with Section 3 of the Housing and Urban Development Act of 1968 (Section 3), 12 U.S.C. 1701u (Economic Opportunities for Low- and Very Low-Income Persons in Connection with

Assisted Projects), and the HUD regulations at 24 CFR part 135, including the reporting requirement of

Subpart E. Under Section 3 of the Housing and Urban Development Act of 1968, to the greatest extent feasible, new employment or job training opportunities created in connection with housing rehabilitation, housing construction, or other public construction projects must be given to Section 3 residents. In addition, to the greatest extent feasible, new contracts for housing rehabilitation, housing http://www.epa.gov/watersense/ construction, or other public construction projects must be awarded to Section 3 business concerns.

Refer to the regulations implementing Section 3 at 24 CFR part 135 and to the General Section III.5.d.

for more information.

Because SHOP funds can only be used for land acquisition and infrastructure improvements, Section 3 requirements apply only to SHOP projects for which the amount of SHOP funds for the infrastructure improvements (together with any other covered Section 3 housing and community development assistance for infrastructure) meets the threshold amount of $200,000. Since the maximum average

SHOP investment for land acquisition and infrastructure is $15,000 per unit, Section 3 would generally only apply to entities undertaking infrastructure improvements for 14 units or more under an individual

SHOP contract, where the entire SHOP amount together with any other Section 3 housing and community development assistance is $200,000 or more for infrastructure. The number of units may vary if the amount of assistance per-unit decreases. Successful applicants will be required to submit annual Section 3 data using form HUD-60002 to HUD, Office of Fair Housing and Equal Opportunity, 451 Seventh Street, SW, Room 5232, Washington, DC 20410, Attn: Economic Opportunity Division, or

HUD’s online system at http://www.hud.gov/offices/fheo/section3/section3.cfm.

g. Real Property Acquisition and Relocation. SHOP projects are subject to the Uniform Relocation

Assistance and Real Property Acquisition Policies Act of 1970, as amended (Uniform Act or URA) (42

U.S.C. 4601), and the government-wide implementing regulations issued by the U.S. Department of

Transportation at 49 CFR part 24. The URA is a federal law that establishes minimum standards for federally-funded programs and projects that require the acquisition of real property (real estate) or displace persons from their homes, businesses, or farms. The URA’s protections and assistance apply to the acquisition, rehabilitation, or demolition of real property for federal or federally funded projects.

When persons with disabilities are relocated, they must be placed in housing that provides, at a minimum, the same accessibility features as the housing in which they currently reside.

The grantee and its affiliates must comply with all applicable URA requirements. Real property acquisitions for a SHOP-assisted program or project conducted before completion of an environmental review are also subject to the URA. The grantee and its affiliates must ensure that all real property acquisitions comply with applicable URA requirements. Generally, real property acquisitions conducted without the threat or use of eminent domain, commonly referred to as “voluntary acquisitions,” must satisfy the applicable requirements and criteria of 49 CFR 24.101(b)(1) through (5). Tenants who occupy property that may be acquired through voluntary means must be fully informed of their eligibility for relocation assistance. This includes notifying such tenants of their potential eligibility when negotiations are initiated, notifying them if they become fully eligible, and, in the event the purchase of the property will not occur, notifying them that they are no longer eligible for relocation benefits. Evidence of compliance with the URA requirements must be maintained by the grantee, including evidence of compliance by the grantee’s affiliates.

Additional information and resources pertaining to real property acquisition and relocation for HUD-funded programs and projects are available on HUD’s Real Estate Acquisition and Relocation website at http://www.hud.gov/relocation. You will find applicable laws and regulations, policy and guidance, publications, training resources, and a listing of HUD contacts if you have questions or need assistance.

http://www.hud.gov/offices/fheo/section3/section3.cfm http://www.hud.gov/relocation

h. Environmental Review. The grantee and its affiliates must comply with the SHOP environmental review requirements. The SHOP environmental review requirements supersede the environmental review requirements in the General Section. All SHOP assistance is subject to the National

Environmental Policy Act of 1969 and related federal environmental authorities and regulations at 24

CFR part 58. The grantee and its affiliates must not undertake any project or activity or commit federal or nonfederal funds or assistance to a project or activity that could limit reasonable choices or could produce an adverse environmental impact, until all required environmental reviews and notifications have been completed by a unit of general local government, tribe, or state, and HUD approves the grantee’s request for release of funds under the environmental provisions contained in 24 CFR part 58.

Notwithstanding the preceding sentence, in accordance with section 11(d)(2)(A) of the Housing

Opportunity Program Extension Act of l996 and HUD Notice CPD-01-09, you or your affiliate may advance non-grant funds to acquire land before completion of an environmental review and HUD’s approval of a request for release of funds and environmental certification. Any advances to acquire land prior to such approval are made at the risk of you and/or your affiliate, and reimbursement from SHOP grant funds for such advances will depend on the result of the environmental review and award of SHOP grant funds under this SHOP NOFA (also refer to SHOP NOFA Section IV.E. “Funding Restrictions”).

i. Occupational Safety and Health. The grantee and its affiliates must conduct work under this grant in accordance with the Occupational Safety and Health Administration regulations (29 CFR 1926.62) that apply to the employees of the grantee and its affiliates.

j. Lead Safe Requirements. The grantee and its affiliates must comply with the Lead-Based Paint

Poisoning Prevention Act (42 USC 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 USC 4851-4856), and relevant subparts of the implementing regulations at 24 CFR Part 35, such as subparts A, B, J, K and R. The grantee and its affiliates must also comply with the applicable lead safe work practices requirements of the Environmental Protection Agency’s (EPA) Renovation, Repair and Painting Rule (40 CFR 745 Subpart E; http://www.epa.gov/lead/pubs/renovation.htm).

k. Indoor Air Quality. The grantee and its affiliates are encouraged to comply with the Environmental

Protection Agency’s (EPA) Indoor airPLUS specifications so that the grantee’s SHOP units provide improved indoor air quality. (http://www.epa.gov/indoorairplus/construction_specifications.html).

l. Standards of Financial Control. The grantee, including all affiliates and consortium members, must comply with the requirements of 24 CFR 84.21 “Standards for Financial Management Systems.”

m. Earnings. “Earnings” means any interest, fees, loan repayments or other income directly generated by the use of SHOP grant funds that are received by the SHOP grantee (including consortium members).

Earnings also include affiliate repayments to the grantee of principal and interest on a loan made to the affiliate with SHOP grant funds. Such loan repayments are Earnings received by the grantee, even when deposited into a revolving loan fund account. Any income directly generated by the use of Earnings is also Earnings.

Earnings are SHOP grant funds and are subject to all SHOP requirements. The grantee must use all

Earnings received as of the date that the grantee submits its SHOP Grant Financial Close Out report to

HUD for SHOP eligible activities, in accordance with the grantee’s SHOP grant agreement. The grantee must report to HUD on the use of these Earnings in accordance with HUD’s instructions.

http://www.epa.gov/lead/pubs/renovation.htm http://www.epa.gov/indoorairplus/construction_specifications.html

IV. Application Submission Requirements

A. Address to Request Application Package. This SHOP NOFA and the General Section contain all the information you need to submit an application for SHOP funding. You must submit your application electronically through www.grants.gov in accordance with the instructions provided in the General

Section IV.B. “Content and Form of Application Submission.” This section provides specific procedures concerning electronic application submission and timely application receipt requirements.

This section also describes how you may download the application and instructions from the HUD www.grants.gov website at http://www.grants.gov/applicants/apply_for_grants.jsp. If you need assistance downloading the material, you may contact the www.grants.gov Help Desk at 800-518-

GRANTS and a customer service representative will assist you. The www.grants.gov help desk is open

7 days a week, 24 hours a day except federal holidays. You may also e-mail Support@grants.gov. If you do not have Internet access and you need to obtain a copy of this SHOP NOFA, you may contact

HUD’s NOFA Information Center toll-free at 800-HUD-8929 or 800-HUD-2209 (TTY) between the hours of 10:00 a.m. and 6:30 p.m., eastern time, Monday through Friday, except federal holidays. The

NOFA Information Center opened for business simultaneously with the publication of the General

Section.

B. Content and Form of Application Submission. You must meet all requirements for application submission and receipt described in this SHOP NOFA.

1. Application Kit. There is no application kit for the SHOP program. All the information needed to apply is contained in this SHOP NOFA and the application and instructions download found at http://www.grants.gov/applicants/apply_for_grants.jsp. The application checklist that is found in SHOP

NOFA Section IV.B.6. identifies all the elements that are required for a complete SHOP application submission. You must follow the specific format, page limit, and submission content requirements to ensure that you have submitted an acceptable application. The published document posted on www.grants.gov is the official document that HUD uses to solicit applications. Therefore, if there is a discrepancy between the information posted on www.grants.gov and any materials published by HUD on its website or other information provided in paper copy, the information posted on www.grants.gov prevails. Be sure to review your application against the requirements published for the SHOP competition and posted on www.grants.gov.

2. Application. Your application must contain only the items listed in the “Application Checklist” provided in SHOP NOFA Section IV. B.6. The application consists of seven sections: 1) Standard

Forms; 2) Applicant Eligibility; 3) SHOP Program Design and Scope of Work; 4) Narrative Statements for Rating Factors; 5) Certifications for Bonus Point Factors; 6) Forms, Certifications and Assurances;

and 7) Appendices.

There are five SHOP NOFA Rating Factors and two Bonus Point Factors. The SHOP NOFA Rating

Factors and Bonus Point Factors are identified in SHOP NOFA Section V.A. “Criteria.” You must address the five Rating Factors in your Rating Factor Narrative Statements, and in the required

Appendices in accordance with the SHOP NOFA instructions. HUD will not consider any supplemental information that is not required by this SHOP NOFA, or information that exceeds the page limits established by this SHOP NOFA.

http://www.grants.gov/applicants/apply_for_grants.jsp mailto:Support@grants.gov http://www.grants.gov/applicants/apply_for_grants.jsp

3. Consortium Application. If you are applying as a consortium, you must submit a comprehensive, integrated application. All consortium members must be identified in your application and all members must receive SHOP funds. You must identify your lead entity. You must propose to use a significant amount of SHOP funds in each state represented by your consortium. Your integrated application must demonstrate that the consortium is undertaking a single SHOP program with an overall program design.

Individual program designs for separate consortium members or their affiliates will not be considered by

HUD in scoring your application. However, you must briefly summarize the past experience of each of your individual consortium members in your response to Rating Factor 1 “Capacity of the Applicant and

Relevant Organizational Staff.”

4. Page Format. You must submit your SHOP application in an 8.5 by 11 inch page size format, using a standard 12 point font. Text in tables must not be less than a 9 point font. HUD will not consider material shown in a smaller font size. Pages for each application section must be numbered sequentially starting with “1.” For sections with page limits, HUD will not consider information on pages that exceed the page limit.

5. Attachments. When naming attachment files to your electronic application, you must not exceed 32 characters in length. Do not use spaces or special characters (anything other than a number or a letter) in the file name. Failure to follow these instructions will result in your application being rejected with a virus detect error message. Refer to the General Section IV.B.6. for further details.

6. Application Checklist. In order to receive full consideration for funding, you should use the following checklist to ensure that all requirements are addressed and submitted with your electronic application. Any other information should not be submitted and will not be considered in scoring your application.

a. Standard Forms (no page limit).

_____ SF424_Application_for_Federal_Assistance (Your organization’s nine-digit zip code (zip code plus four digits) must be included in Box 8d)

_____ SF424_Supplement_Survey_on_Ensuring_Equal_Opportunity_for_Applicants ("Faith

Based EEO Survey (SF-424-SUPP)" on www.grants.gov)

b. Applicant Eligibility (no page limit).

_____ Self-help Homeownership Housing Organization Statement of Qualifications

_____ Consortium Agreement (if applicable)

_____ Experience

_____ Code of Conduct

c. SHOP Program Design and Scope of Work (25 page limit).

_____ SHOP Program Summary (not included in the 25 page limit)

_____ SHOP Grant Request and Proposed Use of Funds

_____ Consortium Participating Members (if applicable)

_____ Affiliates (if applicable)

_____ Description of SHOP Properties

_____ Property Standards

_____ Homebuyer Eligibility

_____ Sweat Equity

_____ Volunteer Labor

_____ Mutual Self-help Housing Programs (if applicable)

_____ Establishment of Sale Price

_____ Mortgages and Other Loans

_____ Typical Shop Unit Table

_____ Program Outreach

_____ Financial Control Procedures

_____ Monitoring Schedule

d. Narrative Statements for Rating Factors (30 page limit or 35 page limit for a consortium).

_____ Factor 1 - Capacity of the Applicant and Relevant Organizational Staff.

_____ Factor 2 - Need/Extent of the Problem (four page limit)

_____ Factor 3 - Soundness of Approach

_____ Factor 4 - Leveraging Resources

_____ Factor 5 - Achieving Results and Program Evaluation

e. Certifications for Bonus Point Factors (no page limit)

_____ HUD_2990_Certification_of_Consistency_with_the_RC/EZ/EC_II_Strategic_ Plan (if applicable)

_____ HUD_2995_Certification_of_Consistency_and_Nexus_between_Activities_

Proposed_by_the_Applicant_with_Livability_Principles_Advanced_in_Preferred_Sustai nability_Status_Communities (if applicable)

f. Forms, Certifications and Assurances (no page limit).

_____ HUD_424_CB_Grant_Application_Detailed_Budget ("HUD Detailed Budget Form" on www.grants.gov)

_____ HUD_424_CBW_Grant_Application_Detailed_Budget_Worksheet

_____ SF_LLL_ Disclosure_of_Lobbying_Activities (as applicable)

_____ HUD_2880_Applicant/Recipient_Disclosure/Update_Report ("HUD Applicant Recipient

Disclosure Report")

_____ HUD_2993_Acknowledgement_of_Application_Receipt (for applicants submitting paper applications only)

_____ HUD_96011_Third_Party_Documentation_Facsmile_Transmittal (“Facsimile

Transmittal Form” on www.grants.gov; HUD will not be able to match faxes to an application if the application does not contain this form and each Fax does not use the

HUD-96011 cover page)

g. Appendices (no page limit).

_____ Code of Conduct (refer to SHOP NOFA Section IV.B.7.b.(4) and the General Section

III.C.5.)

_____ Evidence of Non-profit Qualification (for new applicants or consortium members; refer to SHOP NOFA Section IV.B.7.b.(1))

_____ Consortium Participating Members, if applicable (refer to SHOP NOFA Section

IV.B.7.c.(3))

_____ Affiliates, if applicable (refer to SHOP NOFA Section IV. B.7.c.(4))

_____ Demonstration of Past Performance (for new applicants; refer to SHOP NOFA Section

V.A. Rating Factor 1)

_____ Applicant’s Organizational Chart (refer to SHOP NOFA Section V.A. Rating Factor 1)

_____…