34 fy10 shop final 2.1.11 final.pdf

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5415-N-34]

Notice of Funding Availability for Fiscal Year 2010 for 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 (FY) 2010 for the Self-Help

Homeownership Opportunity Program (SHOP).

SUMMARY: This SHOP NOFA announces the availability of $26,730,000 in FY2010 SHOP funding to be awarded to national and regional nonprofit organizations and consortia to facilitate and encourage innovative homeownership opportunities on a geographically diverse basis through the provision of self-help homeownership housing programs. Grant funds may be used for land acquisition, the installation or improvement of infrastructure, and for reasonable and necessary planning, administration and management costs. The average SHOP expenditure for the combined costs of land and infrastructure may not exceed $15,000 per dwelling unit. SHOP homeowners must contribute a significant amount of sweat equity towards the purchase of their 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. These units must be sold to eligible low-income homebuyers at prices below the prevailing market price. The homebuyer’s sweat equity contribution may 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.

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

Year (FY) 2010 Notice of Funding Availability “Policy Requirements and General Section to

HUD’s FY2010 NOFAs for Discretionary Programs” (the General Section), posted to

Grants.gov on June 7, 2010, and announced in the Federal Register on June 11, 2010 (75,FR

33323). The General Section establishes policy priorities and requirements that apply to this

SHOP NOFA. Applicants for assistance are directed to review the FY2010 General Section as well as the instructions in this SHOP NOFA.

FOR FURTHER INFORMATION: Questions regarding specific SHOP NOFA requirements should be directed to Ms. Ginger Macomber, Office of Affordable Housing Programs, at 202

402-4605. Questions regarding the FY2010 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 1-800-HUD-8929 (toll-free). Persons with hearing or speech impairments may access these numbers via TTY by calling the Federal Information Relay service at 1-800-877-8339. 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: Office of Community Planning and Development, HUD.

B. Funding Opportunity Title: Self-Help Homeownership Opportunity Program (SHOP).

C. Funding Opportunity Number: The funding opportunity number for this SHOP NOFA is

FR-5415-N-34; OMB Approval Number 2506-0157.

D. Announcement Type: Initial announcement.

E. Catalog of Federal Domestic Assistance (CFDA) Number: The CFDA number for the

Self-Help Homeownership Opportunity Program is 14.247.

F. Application Deadline Date: The application deadline date is March 30, 2011. Applications must be received by www.grants.gov no later than 11:59:59 p.m. Eastern Standard time on the application deadline date. Applicants need to be aware that following receipt, applications go through a validation process through which your application may 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 Information: 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. Applicants must propose to use a significant amount of SHOP funds in at least two states.

FULL TEXT OF ANNOUNCEMENT

I. Funding Opportunity Description

A. Program Description SHOP funds are awarded to national and regional nonprofit organizations and consortia to facilitate and encourage innovative homeownership opportunities on a geographically diverse basis through the provision of self-help housing programs. Grant funds may be used for land acquisition, the installation and improvement of infrastructure, and for reasonable and necessary planning, administration and management costs. The average SHOP expenditure for the combined costs of land and infrastructure may not exceed $15,000 per dwelling unit. SHOP homeowners must contribute a significant amount of sweat equity towards the construction or rehabilitation of their 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. These units must be sold to eligible low-income homebuyers at prices below the prevailing market price. The homebuyer’s sweat equity contribution may 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.

B. Authority file:///C:/Documents%20and%20Settings/H10609/Local%20Settings/Temporary%20Internet%20Files/Content.Outlook/X5B3WM2G/www.grants.gov

SHOP is authorized by section 11 of the Housing Opportunity Program Extension Act of 1996

(42 U.S.C. 12805 note) (the “Extension Act”).

II. Award Information

$26,730,000 is available to fund grant awards under the FY2010 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

FY2010 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 affiliates that develop five or more SHOP units must be expended within 36 months.

III. Eligibility Information

A. Eligible Applicants

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

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

b. Regional Organization. A regional organization is a public or private nonprofit organization that carries out self-help housing activities or funds affiliates that carry out self-help 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 nonprofit organizations located in at least two states that enter into an agreement to submit a single application for SHOP funding to carry out SHOP activities on a national or regional basis. Refer to SHOP NOFA

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

B. Program Implementation. You must propose to undertake eligible SHOP activities directly and/or to enter into a written agreement with one or more affiliates to carry out your eligible

SHOP activities.

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

a. A local public or private nonprofit self-help housing organization that is a subordinate organization (i.e., chapter, local, post, or unit) of your central organization and covered by the group exemption letter issued to the central organization under section 501(c) (3) of the Internal

Revenue Code; or

b. A local public or private nonprofit self-help housing organization with which you have an existing relationship (e.g., you have provided technical assistance, mentoring or funding to the local self-help housing organization); or

c. A local public or private nonprofit self-help housing organization with which you do not have an existing relationship, but to which you will provide technical assistance, mentoring or funding as part of your SHOP application.

2. Written Agreements. You must have a written agreement with each affiliate that incorporates the requirements of the FY2010 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 FY2010 SHOP program. You may not amend a prior written agreement.

C. Cost Sharing or Matching

There are no cost sharing or matching requirements under this SHOP NOFA. However, grantees are required to leverage resources for the construction and/or rehabilitation of self-help housing units that are assisted with SHOP funds.

D. 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.”

E. 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.

F. Threshold Requirements

SHOP is governed by Section 11 of the Housing Opportunity Program Extension Act of 1996

(42 U.S.C. 12805 note) (the Extension Act), 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 “Program Design and Scope of Work” to ensure that you have met all of these Threshold Requirements. SHOP NOFA Section IV. describes the

SHOP application submission requirements.

1. 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 housing homeownership opportunities.” You must be an eligible SHOP organization as defined in SHOP NOFA Section III.A.

2. Nonprofit Status. You and your affiliates must qualify as eligible public or private nonprofit organizations under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986.

3. 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 the lead entity. (Refer to SHOP NOFA Section IV.E.2.b.)

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

5. Experience. The statute requires that applicants “have experience in providing or facilitating self-help housing homeownership opportunities.” You must have successfully completed at least

30 self-help homeownership units in a national or regional area within the 24-month period immediately preceding the publication of this SHOP NOFA. For dwellings to qualify as self-help homeownership units, the homebuyers must have contributed a significant amount of sweat-equity toward the construction or rehabilitation of the units as set forth in SHOP NOFA Section

III.F.10. “Sweat Equity.”

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

7. 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. There are three categories of 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. Refer to SHOP

NOFA Section III.G. “Funding Restrictions” for additional guidance on pre-agreement costs and ineligible costs.

a. 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 III.G.1. “Pre-

Agreement Costs.”

b. 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 may not be incurred before the required environmental review process has been successfully completed.

c. 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 the SHOP grant; costs of providing civil rights and fair housing training to 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 Financial Requirements” for additional guidance. Eligible planning, administration and management costs may not exceed 20 percent of your SHOP grant.

8. 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.

9. 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.

a. Annual Income as defined at 24 CFR 5.609; or

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

c. 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.E.3.e.

10. Sweat Equity. The statute requires that self-help housing opportunities be provided “under which the homeowner contributes a significant amount of sweat equity toward the construction of the new dwelling.”

a. 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 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.

b. 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.F.13., the homebuyer’s sweat equity contribution may not be mortgaged or otherwise restricted upon future sale of the

SHOP unit.

11. Volunteer Labor. The statute requires that activities to develop SHOP-assisted self-help 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.

12. 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 sales price. Refer to SHOP NOFA Section III.F.13.

for additional guidance.

13. Mortgages and Other Loans. The homebuyer’s sweat equity contribution may 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, you must provide each homebuyer, at or before closing, unit-specific information on the cost and carrying charges for the homebuyer’s SHOP unit, similar to information required on the HUD-1 “Settlement

Charges.” The following examples demonstrate compliance with the SHOP restrictions on mortgages:

a. 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.

b. 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.

14. No Duplicate Submissions. You may not propose to fund any affiliate or consortium member under your FY2010 application that is also seeking FY2010 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.

15. Dun and Bradstreet Data Universal Numbering System (DUNS). You must have a

DUNS number to receive a SHOP grant. Refer to 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.

16. 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.

G. Funding Restrictions http://www.hud.gov/offices/adm/grants/duns.cfm http://www.ccr.gov/Renew.aspx

1. Pre-agreement Costs. On or after the publication date of this SHOP NOFA, you may incur pre-agreement costs for eligible SHOP activities. Eligible pre-agreement costs for land acquisition include the principal and interest of a loan incurred on or after the date of this SHOP

NOFA. Eligible pre-agreement costs for infrastructure development include the principal (but not the interest) of a loan incurred on or after the date of this SHOP NOFA. You must identify your pre-agreement costs in your SHOP application. You may charge your pre-agreement costs to your SHOP grant after the effective date of your SHOP grant agreement, provided these pre-agreement costs are eligible, in compliance with the requirements of this SHOP NOFA, (including relocation and environmental review requirements), and consistent with your approved SHOP application. You may also authorize your affiliates to incur eligible pre-agreement costs. Your authorization must be in writing. You and your affiliates incur pre-agreement costs at your own risk. If you do not receive a SHOP grant, if your activities do not successfully complete the required environmental review process, or if your activities otherwise fail to meet the SHOP requirements, you and your affiliates may not use your SHOP grant funds to reimburse your pre-agreement costs. Examples of ineligible pre-agreement costs that may not be reimbursed with your SHOP grant include:

a. Pre-agreement costs incurred before the publication date of this SHOP NOFA.

b. Pre-agreement costs that are not identified in your SHOP application.

c. Pre-agreement costs incurred by your affiliates which you have not approved in writing.

d. The cost of land that is acquired before the publication date of this SHOP NOFA, including refinancing the acquisition cost of land that is acquired before the publication date of this SHOP

NOFA.

e. Infrastructure costs that are incurred before the publication date of this SHOP NOFA.

f. Infrastructure costs that are incurred before the completion date of the required environmental review process.

g. Interest on a loan used to pay for infrastructure costs.

2. Ineligible Costs. Only costs associated with the eligible activities identified in SHOP NOFA

Section III.F.7. may be funded with your SHOP grant. Examples of ineligible costs include:

a. Costs incurred before the publication date of this SHOP NOFA.

b. Pre-agreement costs that are not eligible for reimbursement, such as costs not identified in your SHOP application.

c. Construction, rehabilitation or improvement of any dwelling unit.

d. Land acquisition for land banking purposes (i.e., holding land for an indefinite period).

e. Acquisition of land that is owned by you or your affiliates, or in which you or your affiliates have an interest.

f. Refinancing of loans for land acquired before the publication date of this SHOP NOFA.

g. Land acquisition that does not comply with the Uniform Relocation Assistance and Real

Property Acquisition Policies Act of 1970 (URA).

h. Interest on loans used to pay for infrastructure costs.

i. Planning, administration and management costs which are not related to your SHOP grant.

j. Planning, administration and management costs which exceed 20 percent of your SHOP grant.

k. Administrative costs which are unallowable in accordance with 2 CFR Part 230 “Cost

Principles for Non-Profit Organizations” (OMB Circular A-122), such as alcoholic beverages, bad debts, advertising (other than help-wanted ads), contributions, entertainment, fines and penalties.

l. Indirect costs that are not incurred in accordance with 2 CFR Part 230 “Cost Principles for

Non-Profit Organizations” (OMB Circular A-122).

m. Lobbying activities.

n. Homebuyer counseling.

H. Other Statutory and Program Requirements. There are no SHOP program regulations.

You and your affiliates must comply with all statutory and regulatory requirements applicable to

SHOP cited in the General Section III.C.1, 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:

1. 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.

2. 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.” You 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 your affiliates that develop five or more units must be expended within 36 months. You and your affiliates must develop and sell all proposed SHOP units in a timely manner in accordance with the schedules you submit in response to SHOP NOFA Rating Factor 3.

3. 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 may 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.

4. Energy-Efficiency. You and your affiliates must incorporate specific energy-efficiency measures in the design, construction, and/or rehabilitation of your SHOP units. Upon completion, all new construction and gut-rehabilitation SHOP units in buildings up to three stories must meet the guidelines for ENERGY STAR Qualified New Homes, as certified by a qualified Home Energy Rating System (HERS) rater, who is independent from the SHOP grantee or its affiliates. ENERGY STAR is a joint program of the U.S. Environmental Protection

Agency (EPA) and the U.S. Department of Energy (DOE) to save money and protect the environment through energy efficient products and practices. All SHOP units in buildings over three stories must exceed, by 20 percent, the minimum energy-efficiency requirements defined by the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE)

Standard 90.1-2007, Appendix G: Performance Rating Method. When the ASHRAE standard is updated, the updated standard, plus 20 percent, must be applied to all projects with SHOP funds committed after the date that the updated standard is published. At such time as an ENERGY

STAR standard is established for all housing over three stories, the ENERGY STAR guidelines and certification requirements shall apply. All appliances and products or features that are replaced in properties that are rehabilitated must be ENERGY STAR qualified. ENERGY

STAR equipment and products must be used that are appropriate for achieving energy-efficiency for the ENERGY STAR Climate Zone in which the rehabilitated unit is located. For more information on ENERGY STAR, refer to the ENERGY STAR web site at http://www.energystar.gov/.

5. WaterSense Products. You and your affiliates must install water-usage products, including toilets, showers, and faucets, which bear the “WaterSense” label, in all newly constructed or rehabilitated SHOP-assisted units. WaterSense is a partnership program sponsored by the U.S.

Environmental Protection Agency (EPA) that seeks to protect the future of our nation’s water supply by promoting water efficiency and enhancing the market for water-efficient products, programs, and practices. WaterSense labeled products must be independently tested and certified by an EPA licensed certifying body to meet the water efficiency and performance criteria established by the EPA. For more information, refer to the EPA WaterSense website at http://www.epa.gov/watersense/.

6. Affirmatively Furthering Fair Housing. You must affirmatively further fair housing by promoting fair housing rights and fair housing choice in housing programs funded by your SHOP award. If you will carry out self-help housing activities under your grant, you must adopt and follow affirmative marketing requirements and procedures. If your affiliates will carry out self-help housing activities under your grant, you must require each affiliate to adopt and follow affirmative marketing requirements in accordance with your established procedures. Affirmative marketing consists of taking actions to provide information and otherwise attract eligible persons in the housing market to your SHOP program without regard to race, color, national origin, sex, religion, familial status and 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 not 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. You and your affiliates must also encourage racial and ethnic diversity in the selection of SHOP housing sites. If you will use a competitive process to select affiliates, your selection criteria must consider how an affiliate’s proposal will enhance racial and ethnic diversity.

7. Economic Opportunities for Low- and Very Low-Income Persons (Section 3). You and your 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 low- and very low-income persons residing in the metropolitan area (or non-metropolitan county or parish) in which the project is located. In addition, to the greatest extent feasible, new contracts for housing rehabilitation, housing construction, or other public construction projects must be awarded to business concerns that are either owned by low- and very low-income persons or substantially employ low- and very low-income persons in the metropolitan area (or non-metropolitan county/parish) in which the project is located. Refer to regulations implementing Section 3 at 24 CFR part 135 and to the General

Section III.5.d. for more information.

Because SHOP funds may only be used for land acquisition and infrastructure improvements, Section 3 requirements apply only to SHOP projects for which the amount of http://www.energystar.gov/ http://www.epa.gov/watersense/

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. Because 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 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 HUD60002 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.

8. 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.

You and your 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. You and your affiliates must ensure that all such 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). Evidence of compliance with these requirements must be maintained by the affiliate and submitted to and maintained by the SHOP grantee. It is also important to note that 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 these requirements must be maintained by the affiliate and submitted to and maintained by the SHOP grantee.

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.

9. Environmental Review. You and your 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. You or your affiliates may not undertake any project or activity or commit funds to a project or activity if the project or activity would 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 http://www.hud.gov/relocation

HUD approves your 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 funds for such advances will depend on the result of the environmental review and award of SHOP funds under this SHOP NOFA (also refer to SHOP NOFA Section III.G.1. “Pre-Agreement Costs”).

10. Occupational Safety and Health. You and your affiliates must conduct work under this grant in accordance with the Occupational Safety and Health Administration regulations (e.g., 29

CFR 1926.62) for employees of you and your affiliates, and with the applicable lead safe work practices requirements of HUD’s Lead Safe Housing Rule (24 CFR part 35) and EPA`s

Renovation, Repair and Painting Rule (40 CFR Part 745).

I. Intergovernmental Review

Executive Order 12372 review does not apply to SHOP.

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

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 Grants.gov website at https://apply07.grants.gov/apply/forms_apps_idx.html. If you need assistance downloading the material, you can contact the Grants.gov Help Desk at 1-800-518-GRANTS and a customer service representative will assist you. The Grants.gov help desk is open 7 days a week, 24 hours a day except federal holidays. You can also email 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.

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 https://apply07.grants.gov/apply/forms_apps_idx.html. An application checklist in

SHOP NOFA Section IV.D. 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 to Grants.gov is the official document that HUD uses to solicit applications.

Therefore, if there is a discrepancy between any materials published by HUD on its website and other information provided in paper copy, the information provided on the Grants.gov site mailto:Support@grants.gov https://apply07.grants.gov/apply/forms_apps_idx.html prevails. Be sure to review your application against the requirements published for the SHOP competition and made available on Grants.gov.

2. Guidebook and Further Information. Refer to the General Section.

B. Application Receipt Deadline

Your completed application must be received by Grants.gov no later than 11:59:59 p.m. eastern standard time on the application deadline date. Following receipt, the application will go through a validation process. If the application fails the Grants.gov validation process, it will be rejected. You should carefully review General Section IV. “Application and Submission

Information” for instructions about timely application receipt, including actions to take if your application is rejected. You should carefully read General Section IV.B.5. “Instructions on

How to Download an Application Package and Application Instructions.”

C. Application Format

You must meet all requirements for application submission and receipt described in this SHOP

NOFA.

1. Application. Your application must contain only the items listed in the “Application

Checklist” provided in SHOP NOFA Section IV. D. The application consists of six sections: 1)

Standard Forms; 2) Applicant Eligibility; 3) Program Design and Scope of Work; 4) Narrative

Statements for Rating Factors; 5) Forms, Certifications and Assurances; and 6) Appendices.

There are five SHOP NOFA Rating Factors. The Rating Factors are identified in SHOP NOFA

Section V.A. “Rating Factors.” You must address the five Rating Factors in the 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.

2. 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.”

3. 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 may 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.

4. Attachments. When naming attachment files to your electronic application, you may 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.

D. 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.

1. Standard Forms (no page limit).

_____ SF424_Application_for_Federal_Assistance

_____ SF424_Supplement,_Survey_on_Ensuring_Equal_Opportunity_for_Applicants

("Faith Based EEO Survey (SF424SUPP)" on Grants.gov)

2. Applicant Eligibility (no page limit).

_____ Self-Help Housing Organization Statement of Qualifications

_____ Consortium Agreement (if applicable)

_____ Experience

3. Program Design and Scope of Work (15 page limit).

_____ Grant Request and Proposed Use of Funds

_____ Consortium Participating Members (if applicable)

_____ Affiliates

_____ Description of SHOP Properties

_____ Homebuyer Eligibility

_____ Sweat Equity

_____ Volunteer Labor

_____ Mutual Self-help Housing Programs (if applicable)

_____ Establishment of Sales Price

_____ Mortgages and Other Loans

_____ Typical Shop Unit Table

_____ Program Outreach

_____ Monitoring Schedule

4. 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

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

_____ HUD_424_CB_Grant_Application_Detailed_Budget ("HUD Detailed Budget

Form" on Grants.gov)

_____ HUD_424_CBW_Grant_Application_Detailed_Budget_Worksheet

_____ SFLLL_ Disclosure_of_Lobbying_Activities (as applicable)

_____ HUD2880_Applicant/Recipient_Disclosure/Update_Report ("HUD Applicant

Recipient Disclosure Report")

_____ HUD2990_Certification_of_Consistency_with_the_RC/EZ/EC II_Strategic_Plan

(if applicable)

_____ HUD2993_Acknowledgement_of_Application_Receipt (for applicants submitting paper applications only)

_____ HUD96010_Program_Outcome_Logic_Model

_____ HUD96011_Third_Party_Documentation_Facsmile_Transmittal (“Facsimile

Transmittal Form” on 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 HUD96011 cover page)

6. Appendices (no page limit).

_____ Code of Conduct (refer to the General Section III.C.5.)

_____ Consortium Participating Members (refer to SHOP NOFA Section IV.E.3.b.)

_____ Affiliates (refer to SHOP NOFA Section IV.E.3.c.)

_____ Demonstration of Past Performance (for new applicants)(refer to Rating Factor 1, SHOP NOFA Section V.)

_____ Applicant’s Organizational Chart (refer to Rating Factor 1, SHOP NOFA Section

V.)

_____ Firm Commitment Letters (refer to Rating Factor 4, SHOP NOFA Section V.)

E. Application Content. Your application must address each of the following six sections.

1. Standard Forms (no page limit). You must submit SF424_

“Application_for_Federal_Assistance” and

SF424_Supplement_Survey_on_Ensuring_Equal_Opportunity_ for_ Applicants (“Faith Based

EEO Survey (SF424SUPP)" on Grants.gov). These forms must be electronically signed by the

Authorized Organization Representative (AOR) who is legally authorized to submit the application on behalf of the applicant. Please remember to use the DUNS number of the organization identified in Box 8a of the SF424 form. The DUNS number must be registered in the Central Contractor Registration (CCR). The Authorized Organization Representative submitting the application must be authorized by the eBusiness Point of Contact in the

Grants.gov system to submit the application on behalf of the applicant.

2. Applicant Eligibility (no page limit).

a. Self-Help Housing Organization Statement of Qualifications. You must submit a narrative statement of qualifications that demonstrates your organization’s eligibility to participate in the

SHOP program. You must clearly state how your organization or consortium qualifies as a national or regional nonprofit or public organization as defined in SHOP NOFA Section III.A.