202 nofa amendment correction.pdf

THIS VERSION, DATED MAY 26, 2011, UPDATES THE MAY 17, 2011,

PUBLICATION. THERE ARE NO SUBSTANTIVE MODIFICATIONS WHICH

WOULD RESULT IN A CHANGE TO THE APPLICATION DUE DATE.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5415-N-38A]

Fiscal Year (FY) 2010 Notice of Funding Availability (NOFA) for Section 202 Supportive

Housing for the Elderly Program; Amendment to Add FY2011 Funding and Technical

Corrections

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

ACTION: Notice of Funding Availability (NOFA) for HUD’s FY2010 Supportive Housing for the Elderly Program; Amendment to add FY2011 funding and technical corrections.

SUMMARY: This Notice amends the Notice of Funding Availability (NOFA) for HUD’s

FY2010 Section 202 Supportive Housing for the Elderly (Section 202), as posted on www.Grants.gov on March 4, 2011, to increase the available funding to funding authorized under the Department of Defense and Full-Year Continuing Appropriations Act, 2011. As provided by this Notice, the total combined funding available under the FY2010 Section 202

Supportive Housing for the Elderly Program NOFA is approximately $449 million.

This combined funding will be governed by the information and instructions found in the

Notice of HUD’s Fiscal Year (FY) 2010 Notice of Funding Availability (NOFA), Policy

Requirements and General Section (General Section) to HUD’s FY2010 NOFAs for

Discretionary Programs, posted to Grants.gov on June 7, 2010. This Notice also makes certain technical corrections to the NOFA to clarify specific meeting requirements of American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE) standards, updates website addresses, correct exhibit numbering designations, highlights the funding of a FY2009 application, changes the data source for determining the racial and ethnic composition of the neighborhood for the proposed site, and other changes as listed below. As a result of these changes, HUD is extending the deadline for applications to June 21, 2011.

DATES: The application deadline date for the Section 202 Supportive Housing for the Elderly grant applications under this NOFA is extended to June 21, 2011.

FOR MORE INFORMATION CONTACT: For questions concerning these technical corrections, please contact Alicia Anderson, Project Manager, Office of Housing Assistance and

Grants Administration, Office of Housing, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington DC, 20410; telephone 202-402-5787 (this is not a toll-free number); email Alicia.Anderson@Hud.gov. Persons with hearing or speech impairments may access these numbers via TTY by calling the Federal Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION:

On March 4, 2011, HUD posted FY2010 Section 202 Supportive Housing for the Elderly

NOFA to Grants.gov. Today’s Notice amends the NOFA to add approximately $85 million in

FY2011 capital advance plus associated project rental assistance (PRAC) funds. These funds are made available under the Department of Defense and Full-Year Continuing Appropriations Act, 2011 (Pub. L. 112-10, approved April 15, 2011). HUD has decided to add the FY2011 funding to the FY2010 competition because publishing a separate NOFA for the FY2011 funding would result in a nationwide competition for a modest amount of additional units. Accordingly, the

March 4, 2011, Section 202 program NOFA serves as the NOFA for HUD’s FY2010 and

FY2011 Section 202 program funding.

mailto:Alicia.Anderson@Hud.gov

The combining of FY2011 and FY2010 Section 202 funds increases the total funding available under this NOFA up to approximately $449 million for the development of 3,325 units under HUD’s Section 202 Program. This combined funding will be governed by the information and instructions found in the Notice of HUD’s Fiscal Year (FY) 2010 Notice of Funding Availability

(NOFA), Policy Requirements and General Section (General Section) to HUD’s FY2010 NOFAs for

Discretionary Programs, posted to Grants.gov on June 7, 2010. As a result of this Notice, HUD is extending the deadline for applications to June 21, 2011.

This Notice also corrects particulars such as, but not limited to, website addresses, tables of contents exhibit numbering designations, ASHRAE energy specifications, census data information, and to highlight the funding of a FY2009 application out of funds available under this year’s program NOFA. A chart showing a comparison of allocations for FY2010 and

FY2011 is also added to the NOFA for information.

I. Amendments to Incorporate FY2011 Funding in HUD’s FY2010 Section 202 Supportive

Housing for the Elderly Program NOFA posted to Grants.gov on March 4, 2011.

A. Authority.

The FY2010 Section 202 NOFA references the Consolidated Appropriations Act, 2010

(Pub. L. 111-117) as authority for the NOFA. Since HUD has decided to combine the FY2011

Section 202 funding into the FY2010 Section 202 NOFA, all NOFA references to authority should add, “and the Department of Defense and Full-Year Continuing Appropriations Act, 2011

(Pub. L. 112-10, approved April 15, 2011).”

B. Award Information.

1. The FY2010 Section 202 NOFA makes available $371 million in capital advance funds, plus associated project rental assistance contract (PRAC) funds under the Consolidated Appropriations

Act, 2010. It also provides that the Secretary is waiving the statutory and regulatory provisions that the term of the project rental assistance contract is reduced to 3 years. To reflect the addition of assistance provided by the Department of Defense and Full-Year Continuing

Appropriations Act, 2011, and to reflect the Secretary’s waiver authority, the first and third paragraphs of Section II.A., page 4, entitled “Available Funds,” should be changed to read as follows:

A. Available Funds. Under this program NOFA, up to $449 million, a combined total of funds appropriated for FY2011 and FY2010, is available for capital advances under the Section 202 Supportive Housing for the Elderly Program. The Consolidated

Appropriations Act, 2010 (Pub. L. 111-117, approved December 16, 2009) and Department of Defense and Full-Year Continuing Appropriations Act, 2011 (Pub. L. 112-10, approved April 15, 2011) provides approximately $825 million for capital advances, including amendments to capital advance contracts, for supportive housing for the elderly as authorized by Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), as amended by section 801 of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-625, approved November 28, 1990), for project rental assistance, amendments to contracts for project rental assistance, and the renewal of expiring contracts for such assistance for up to a one-year term, for supportive housing for the elderly under section 202(c)(2) of the

Housing Act of 1959. Additionally, of the amount appropriated, approximately $90 million is provided for Service Coordinators and the continuation of Congregate Services grants, up to $40 million is provided for Assisted Living Conversion grants and Emergency Capital

Repairs, and approximately $20 million is provided for the Section 202 Demonstration Pre-

Development Grant Program.

In accordance with the requirements specified in the Department of Housing and

Urban Development Appropriations Act, 2010 (Pub. L. 111-117, approved December 16, 2009) and the Department of Defense and Full-Year Continuing Appropriations Act, 2011 (Pub. L. 112-110), the Secretary is waiving the statutory and regulatory provision that the term of the project rental assistance contract is reduced to 3 years. HUD anticipates that at the end of the contract terms, renewals will be approved subject to the availability of funds. In addition to this provision, HUD will reserve project rental assistance contract funds based on 75 percent rather than on 100 percent of the current operating cost standards for approved units in order to take into account the average tenant contribution toward rent.

2. All references in the FY2010 NOFA to the amount of assistance made available should provide, “up to $449 million of funds appropriated for FY2010 and FY2011”.

C. References to the FY2010 NOFA.

The FY2010 NOFA includes a number references to “FY2010.” To reflect the addition of the FY2011 assistance to this NOFA, these references should be changed to reflect the additional assistance. For example, on page 5, the second sentence of the first full paragraph, replace “The FY2010” with “This formula”. On page 123, the first sentence in the first full paragraph, delete the reference to “the FY2010 funding competition” and replace it with “the

Section 202 funding competition.” On page 27, the reference to “Exhibit 6: FY2010 Section

202/811 applications to other HUD offices,” should be changed to “Exhibit 6: FY2010 and

FY2011 202/811 application to other HUD Offices”.

D. Expiration of Section 202 Funds.

To reflect the addition of FY2011 assistance and the separate availability and expenditure dates provided by the Department of Defense and Full-Year Continuing Appropriations Act, 2011, Section VI.E.5, page 46, should be amended to read:

“5. Expiration of Section 202 Funds.

a. FY2010 Funds. The Consolidated Appropriations Act, 2010 (Pub. L.111-

117) requires HUD to obligate all Section 202 funds appropriated for FY2010 by

September 30, 2013. The obligation of Section 202 funds occurs for both capital advances and project rental assistance upon execution of the agreement letter by the

Assistant Secretary of Housing. Under 31 U.S.C. § 1552(a), no capital advance funds can be disbursed from this account after September 30, 2018. The Consolidated

Appropriations Act, 2010, provides that amounts for project rental assistance contracts are to be disbursed by September 30, 2023. If all funds are not disbursed by HUD and expended by the project Owner by the appropriate time (as noted above), the funds, even though obligated, will be cancelled and no further disbursements can be made. Amounts needed to maintain PRAC payments for any remaining term on the affected contracts beyond the expiration date will have to be funded from other current appropriations, if available. Amounts needed to bring a project to completion will also be subject to the availability of funds.

b. FY2011 Funds. The Department of Defense and Full-Year Continuing

Appropriations Act, 2011 (Pub. L.112-10) requires HUD to obligate all Section 202 funds appropriated for FY2011 by September 30, 2014. The obligation of Section

202 funds occurs for both capital advances and project rental assistance upon execution of the agreement letter by the Assistant Secretary of Housing. Under 31

U.S.C. § 1552(a), no capital advance funds can be disbursed from this account after

September 30, 2019. The Department of Defense and Full Year Continuing

Appropriations Act, 2011, provides that amounts for project rental assistance contracts are to be disbursed by September 30, 2024. If all funds are not disbursed by HUD and expended by the project Owner by the appropriate time (as noted above), the funds, even though obligated, will be cancelled and no further disbursements can be made. Amounts needed to maintain PRAC payments for any remaining term on the affected contracts beyond the expiration date will have to be funded from other current appropriations, if available. Amounts needed to bring a project to completion will also be subject to the availability of funds.”

E. Selection of Applicants to Receive FY2010 Funds and Applicants to Receive FY2011

Funds.

To reflect the addition of FY2011 funding and the separate availability and expenditure dates provided by the Department of Defense and Full-Year Continuing Appropriations Act, 2011, Section V.B.4, page 62, should be amended to read as follows:

4. Ranking and Selection Procedures.

(a) Minimum Scores/Categories of Applications. Applications submitted in response to the advertised metropolitan allocations or nonmetropolitan allocations that have a total base score of 75 points or more (without the addition of RC/EZ/EC-II bonus points) and meet all of the applicable threshold requirements of the FY2010 General

Section and this NOFA will be eligible for selection and will be placed in rank order based on in the metropolitan allocations or nonmetropolitan categories.

(b) Multifamily HUB Selection Process. After adding any bonus points for RC/EZ/EC-II, each Multifamily Hub will select applications based on a Hub-wide rank order until all approvable applications are selected using the funds for the metropolitan and nonmetropolitan allocation. HUD Multifamily Hubs will not skip over any applications in order to select one based on the funds remaining. Once this process has been completed, HUD Multifamily Hubs will combine their unused metropolitan and nonmetropolitan funds in order to select the next highest ranked application in either category.

The Multifamily Hub may use any remaining funds to select the next highest rated application by reducing the number of units by no more than 10 percent rounded to the nearest whole number, provided the reduction will not render the project infeasible or result in the project having less than five units.

(c) HUD Headquarters Selection Process. Funding authority remaining after the Multifamily Hub selection process is completed will be returned to

Headquarters. First, HUD Headquarters will use this authority to fund one FY2009 application that was not funded due to administrative errors: Urban League of

Rochester Economic Development Corporation’s (ULREDC) in Henrietta, New

York, in the amount of $2,852,600. Second, HUD Headquarters will use this authority to restore units to projects reduced by HUD Multifamily Hubs as a result of the instructions for using their remaining funds. Third, HUD Headquarters will use remaining funds to select applications based on Multifamily Hubs’ rankings, beginning with the highest rated application nationwide.

Priority will be given to applications for projects in non-metropolitan areas to the extent needed to meet the statutory requirement of Section 202 of the Housing Act of 1959 pertaining to Section 202 funding in nonmetropolitan areas.

Only one application will be selected per Multifamily Hub from the national residual amount. If there are no approvable applications in other HUD Multifamily

Hubs, the process will begin again with the selection of the next highest rated application nationwide. HUD Headquarters may skip over a higher-rated application in order to use as much of the available remaining funds as possible. This process will continue until the remaining available funds are used to select approvable applications.

(d) National Lottery. Using FY2010 funds, HUD Headquarters will fund the one FY2009 application that was not funded due to HUD error. After the project has been funded, HUD Headquarters will conduct a national lottery to identify selected applicants that will receive FY2010 funding and those that will receive FY2011 funding. For this lottery, applicants will receive either FY2010 or FY2011 funding.

(e) Any funds remaining at the end of this process will be used by the program office for other programs purposes provided by HUD’s Section 202 FY2010 and FY2011 appropriations.

II. Other Technical Corrections to FY2010 Section 202 NOFA.

A. Overview Information. On page 2, the Funding Opportunity Number is corrected to read, “5415-N-38”.

B. Award Information. On page 6, the allocation chart is revised to reflect the additional available funding as follows:

Metropolitan Non-Metropolitan Totals

HUB

Est.

Units Capital Advance

Est.

Units

Capital Advance Est. Units

Capital Advance

Boston 202 31,243,956 25 3,363,894 227 34,607,850

New York 302 49,027,706 0* 0* 302 49,027,706

Buffalo 69 9,604,655 23 3,246,069 92 12,850,724

Philadelphia 295 44,458,676 33 4,478,590 328 48,937,266

Baltimore 125 15,654,482 14 1,681,840 139 17,336,322

Greensboro 69 9,513,905 37 5,255,292 106 14,769,197

Jacksonville 208 22,210,799 37 3,837,394 245 26,048,193

Atlanta 128 14,349,961 53 5,823,332 181 20,173,293

Chicago 186 27,751,410 36 5,108,572 222 32,859,982

Columbus 116 13,994,710 25 3,021,562 141 17,016,272

Detroit 93 11,581,862 16 1,848,630 109 13,430,492

Minneapolis 99 14,116,942 43 6,096,810 142 20,213,752

Ft. Worth 201 20,200,865 59 5,863,075 260 26,063,940

Kansas City 104 12,373,553 70 8,046,274 174 20,419,827

Denver 58 6,965,295 30 3,143,726 88 10,109,021

San Francisco 208 30,915,421 18 2,729,773 226 33,645,194

Los Angeles 223 33,975,025 0* 0* 223 33,975,025

Seattle 95 13,619,596 25 3,505,840 120 17,125,436

National Totals 2,781 $381,558,819 544 $67,050,673 3,325 $448,609,492

* For this NOFA, the minimum set aside of 5 metropolitan units was removed and only those areas with a sufficient number of qualifying households received an allocation.

C. Eligible Applicants.

Section III.A., page 7, last paragraph, has been modified to clarify the definition of an

Owner corporation for mixed financing transactions. The paragraph now reads as follows:

Applicant eligibility for purposes of applying for a Section 202 fund reservation under this

NOFA has not changed; i.e., all Section 202 Sponsors and Co-Sponsors must be private nonprofit organizations and nonprofit consumer cooperatives. However, the Owner corporation, when later formed by the Sponsor, must be (1) a single-purpose and single-asset private nonprofit organization that has tax-exempt status under Section 501(c)(3) or Section

501(c)(4) of the Internal Revenue Code of 1986, (2) nonprofit consumer cooperative, or (3) for purposes of developing a mixed-finance project pursuant to the statutory provisions under Title VIII of the American Homeownership and Economic Opportunity Act of 2000 and Public Law 111-372, a for-profit limited partnership the sole general partner of which is:

(i) a private nonprofit organization; or (ii) a for-profit corporation wholly owned and controlled by one or more private nonprofit organizations; or (iii) a limited liability company wholly owned and controlled by one or more private nonprofit organizations.

D. Threshold Requirements for Funding Consideration.

Section III.C.2.b.(32), page 10, HUD is correcting this sentence to correct the threshold requirement by deleting the word “and” after housing and replacing it with the word “or”. The corrected sentence now reads as follows: “You, or a co-Sponsor, must have experience in providing housing or services to the elderly persons.”

E. Program Requirement.

1. Section III.C.3.f.(2)(a), NOTE, page 17, the website address for form HUD4128 with the

SFNC is corrected to read as follows:

http://www.hud.gov/offices/adm/hudclips/forms/files/4128.pdf .

2. Section III.C.3.l., page 19, entitled Energy and Water Conservation, insert the following at the end of the paragraph: “To further assist you, access the report, “Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs”, at http://www.huduser.org/portal/publications/affhsg/enh_eng_eff_gbd.html . The report was developed to assist you in responding to the new requirements.” Since publication of the report occurred after the NOFA was posted, this amendment provides updated information to applicants.

3. Section III.C.3.l.(1), page 19, entitled Energy Efficiency,.

http://www.hud.gov/offices/adm/hudclips/forms/files/4128.pdf the second sentence is revised to be better aligned with industry practice and should read as follows: “Mid-Rise & High Rise developments (4 or more stories) must meet a performance target of 15% better than ASHRAE 90.1-2007 as defined by Appendix G.”

the website address for information concerning ENERGY STAR requirement is correct to read as follows:

http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.pt_bldr

F. Application and Receipt Instructions.

Section IV.B.1.c.(1)(d), page 26, Table of Contents, the changes are as follows:

The requirement listing for Exhibit 4(d) is revised to remove the designation of (vi), Affirmatively Furthering Fair Housing/Racial composition; and re-designating paragraphs (vii), (viii) and (ix) as paragraphs (vi), (vii) and (viii), respectively.

The requirement listing for Exhibit 4(d) is revised to add “(ix) An Environmental

Report”. This revision highlights the requirement as currently detailed in the discussion of the exhibit.

The requirement listing for Exhibit 4, Section IV.B.1.c.(1), is corrected by adding Exhibit

(e) as: “(e) Affirmatively Furthering Fair Housing/Racial composition”.

G. Programmatic Application Requirements.

1. Section IV.B.2.ab.(2)(e), page 30, second paragraph, first sentence, delete the phrase “that you have completed” and replace with the phrase “to which you are a party”. And for exhibit 3e(vi), the sentence is revised to state: “For Section 202 and Section 811 projects that received a fund reservation award in FY 2005 or later, include the following:” This change creates greater consistency with the requirements of the applicable rating factor.

http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.pt_bldr

2. Section IV.B.2.ab.(2)(f), page 31, the exhibit designation for the Section 3 requirements is changed to (g).

3. Section IV.B.2.ba.(2)(i), page 31 the exhibit designation for the Job Creation/Employment is changed to (h).

4. Section IV.B.2.,ac.(12)(e)(iv), page 38, the note under Exhibit 4(e)(iv) “Map of Site” is revised to direct applicants to use the 5-year 2005-2009 American Community Survey (ACS) data. This information can be found at http://www.census.gov/acs/www/. Since 2010 data is not currently available at the tract level for all 50 states, the Department has determined that the

2005-2009 ACS data, which is available nationwide, is a better resource at the present time.

5. On page 39 thru 40, the exhibit designation for the Phase I ESA is revised to “vi”, the

“Asbestos Statement/Survey” to “vii”; the Letter to SHPO/THPO to “viii”; and the

Environmental Report to “ix”. This revision highlights the submission requirement for Exhibits

4(d) and corrects the exhibit designation error.

H. Intergovernmental Review.

Section IV.D.1., page 44, the website address for the Office of Management and

Budget’s listing of the SPOCs is corrected to read as follows:

http://www.whitehouse.gov/omb/grants_spoc

I. Application Review Information.

Section IV.A.2.(a), page 52, the NOTE is revised to state that the “percentage calculations will round the decimal number to the nearest hundredth”. The percentage calculations for each rating are changed accordingly. This highlights a change from the requirements that the number is to be rounded to the nearest tenth decimal.

J. Review and Selection Process.

http://www.census.gov/acs/www/ http://www.whitehouse.gov/omb/grants_spoc

1. Section IV.B.1, page 61, the curable exhibit listing is revised to correct two exhibit designations. Specifically, the designation for the Asbestos Statement or Survey is changed to

“4(d)(vii)” and the Letter to the State/Tribal Historic Preservation Officers is changed to

“4(d)(viii)”.

2. Section IV.B.1., page 61, the curable deficiency designations for Exhibit 8 are not properly aligned. The designations are as follows:

(a) Letter sent to the State Point of Contact (SPOC)*

(b) Standard Form 424 Supplement Survey on Ensuring Equal Opportunity for Applicants

(c) Standard Form LLL Disclosure of Lobbying Activities, if applicable

(d) Form HUD2880 Applicant Recipient Disclosure Update Report

(e) Form HUD2991 Certification of Consistency with Consolidated Plan

(f) Form HUD92041 Sponsor’s Conflict of Interest Resolution

(g) Form HUD92042 Sponsor’s Resolution for Commitment to Project*

(j) Form HUD-2530, Previous Participation Certification

K. Reporting.

Section VI.C.3, page 65, the paragraph label “Racial Ethnic Data” correct, the web address to HUDCLIPS to read as follows: http://www.hud.gov/offices/adm/hudclips/.

L. Chart comparing FY2010 and FY2011 allocations

To provide applicants additional information, HUD is attaching a chart comparing the

FY2010 and FY2011 allocations.

III. Additional instruction for attaching files to your application

Section IV.DB. page 23, add the following additional information to the NOFA:

When attaching files to your application, only use the attachments form. If you have more than 15 attachments, and need additional space to attach files, use the

“Supporting Documents” field in Box 15 on the SF-424. provided with the application to attach your files. If you use the paperclip function of Adobe forms, your application will be incomplete and HUD will not be able to receive files that were attached using the paperclip function.

[FR-5415-N-38A]

Attachment

Section 202 Supportive Housing for the Elderly;

FY2010 allocations as compared to those for FY2011

HUB

Est. Units

Est.

Units Change in Units (-/+)

Boston 227 185 42

New York 302 247 55

Buffalo 92 76 16

Philadelphia 328 270 58

Baltimore 139 116 23

Greensboro 106 86 20

Jacksonville 245 200 45

Atlanta 181 149 32

Chicago 222 182 40

Columbus 141 117 24

Detroit 109 91 18

Minneapolis 142 116 26

Ft. Worth 260 213 47

Kansas City 174 142 32

Denver 88 73 15

San Francisco 226 186 40

Los Angeles 223 183 40

Seattle 120 99 21

Total 3,325 2,731 594