38 fy2010 section 202 nofa 3.4.11 final.pdf

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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

Notice of Funding Availability (NOFA) for HUD’s Fiscal Year 2010

Section 202 Supportive Housing for the Elderly Program

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

ACTION: Notice of Funding Availability for HUD‟s Fiscal Year (FY) 2010 Section 202

Program for Supportive Housing for the Elderly (Section 202).

SUMMARY: This NOFA announces the availability of funding for up to approximately $371 million for HUD‟s Section 202 Program for FY2010. HUD's Section 202 Program is authorized by section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), as amended. Applicants for

Section 202 assistance must address applicable requirements established by HUD‟s Fiscal Year

2010 Notice of Funding Availability (NOFA) Policy Requirements and General Section to

HUD‟s FY2010 NOFAs for Discretionary Programs posted on www.Grants.gov on June 7, 2010.

The notice providing information regarding the application process, funding criteria and eligibility requirements is available on the Grants.gov website.

DATES: The application deadline date is June 1, 2011. Applications must be received by www.grants.gov no later than 11:59:59 p.m. eastern time on the application deadline date.

Applicants need to be aware that following receipt, applications go through a validation process in which the application may be accepted or rejected. Please allow time for this process to ensure that you meet the timely receipt requirements. Please see the 2010 General Section for instructions for timely receipt, including actions to take if the application is rejected. The

General Section contains information on using Adobe Reader, HUD‟s timely receipt policies, and other application information.

FOR FURTHER INFORMATION CONTACT: Questions regarding specific program requirements should be directed to the agency contact identified in this program NOFA.

Questions regarding the FY 2010 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 standard time, Monday through Friday, except federal holidays.

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

OVERVIEW INFORMATION

A. Federal Agency Name: Department of Housing and Urban Development, Office of

Housing.

B. Funding Opportunity Title: Section 202 Supportive Housing for the Elderly.

C. Announcement Type: Initial announcement.

D. Funding Opportunity Number: The funding opportunity number is 5414-N-38. The OMB

Approval Number is 2502-0267.

E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.157, Section 202

Supportive Housing for the Elderly.

F. Dates: The application deadline date is June 1, 2011. Applications must be received by www.grants.gov no later than 11:59:59 p.m. eastern time on the application deadline date. All information required to complete the application is in the General Section and this NOFA.

Applicants may download the application and instructions from the Grants.gov website at http://www07.grants.gov/applicants/apply_for_grants.jsp. Please carefully read the Notice of

HUD‟s Fiscal Year (FY) 2010 Notice of Funding Availability (NOFA) Policy Requirements and

General Section to HUD‟s FY 2010 NOFAs for Discretionary Programs, published on

Grants.gov on June 7, 2010. Applicants need to be aware that following receipt, applications go through a validation process in which the application may be accepted or rejected. Please allow time for this process to ensure that you meet the timely receipt requirements.

G. Additional Overview Content Information:

1. Purpose of the Program. This program provides funding for the development and operation of supportive housing for very low-income persons 62 years of age or older.

2. Available Funds. Approximately $371 million in capital advance funds, plus associated project rental assistance contract (PRAC) funds and any carryover funds available.

3. Types of Funds. Capital advance funds are to assist in the cost of developing the housing.

Please refer to Section IV.E.3, below for additional information on calculating the capital advance amount to be awarded. PRAC funds will cover the difference between the HUD-approved operating costs of the project and the tenants‟ contributions toward rent. (30 percent of their adjusted monthly income).

file:///C:/Documents%20and%20Settings/H10609/Local%20Settings/Temporary%20Internet%20Files/Content.Outlook/X5B3WM2G/www.grants.gov http://www07.grants.gov/applicants/apply_for_grants.jsp

4. Eligible Applicants. Private nonprofit organizations and nonprofit consumer cooperatives.

(See Section III.C.3.j, below, for further details and information regarding the formation of the

Owner corporation).

5. Eligible Activities. New construction, rehabilitation, or acquisition (with or without rehabilitation) of housing. See Section III.C.1, below, for further information.

6. Match Requirements. None required.

7. Multifamily Hub Offices. The HUD Multifamily Hub structure consists of 18 Multifamily

Hub Offices. Each Hub administers multifamily housing programs based on its geographical jurisdiction. For a listing of all Multifamily Hub Offices and their associated local Multifamily

Program Center(s) (local HUD Office) please visit http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm

FULL TEXT OF ANNOUNCEMENT

I. Funding Opportunity Description.

A. Program Description. HUD provides capital advances and contracts for project rental assistance in accordance with 24 CFR part 891. Capital advances must be used for the construction or rehabilitation of a structure, or acquisition of a structure with or without rehabilitation. (See Section IV.E.3, below, for additional information on calculating the capital advance amount.) Capital advance funds bear no interest and are based on development cost limits in Section IV.E.3. Repayment of the capital advance is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years.

PRAC funds are used to cover the difference between the tenants' contributions toward rent (30 percent of adjusted income) and the HUD-approved cost to operate the project. PRAC funds may also be used to provide supportive services and to hire a service coordinator in those projects serving frail elderly residents. The supportive services must be appropriate to the category or categories of frail elderly residents to be served.

B. Authority. The Section 202 Supportive Housing for the Elderly Program is authorized by section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), as amended, and the Consolidated

Appropriations Act, 2010 (Pub. L. 111-117, approved December 16, 2009).

http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm

C. Calculation of Fund Reservation. If selected, you will receive a fund reservation that will consist of both a reservation of capital advance funds and a reservation of three years for project rental assistance contract (PRAC) funds.

1. Capital Advance Funds. The reservation of capital advance funds is based on a formula which takes the development cost limit for the appropriate building type (elevator, non-elevator) and unit size(s) and multiplies it by the number of units of each size (including a unit for a resident manager, if applicable) and then multiplies the result by the high cost factor for the area.

The development cost limits can be found in Section IV.E.3., below. The high cost factors are found at http://www.hud.gov/offices/hsg/mfh/hicost/hicost.cfm.

2. PRAC Funds. The initial PRAC award covers three years. The amount awarded is determined by multiplying the number of revenue units for elderly persons by the appropriate operating cost standard times 3. The operating cost standards will be published by Notice.

PRAC funds are not provided for resident manager units.

II. Award Information

A. Available Funds. For FY 2010, up to approximately $371 million is available for capital advances for the Section 202 Supportive Housing for the Elderly Program. The Consolidated

Appropriations Act, 2010 (Pub. L. 111-117, approved December 16, 2009) 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.

The announcements of the availability of the funds under the Section 202 Pre-

Development, Service Coordinator, Assisted Living Conversion and the Emergency Capital

Repairs Programs have been or will be addressed in separate publications.

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), the http://www.hud.gov/offices/hsg/mfh/hicost/hicost.cfm 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.

The allocation formula used for Section 202 reflects the “relevant characteristics of prospective program participants,” as specified in 24 CFR 791.402(a). The FY 2010 formula consists of one data element from the 2000 Census: The number of one-person elderly renter households (householder age 62 and older) with incomes at or below the applicable Section 8 very low-income limit, and with housing conditions. Housing conditions are defined as paying more than 30 percent of income for gross rent, or occupying a unit lacking some or all kitchen or plumbing facilities, or occupying an overcrowded unit (1.01 persons per room or more). To view the exact income limits for a particular area of the country you may access the FY 2010

Income Limit Documentation System at:

http://www.huduser.org/portal/datasets/il/il10/index.html.

Under Section 202, 85 percent of the total capital advance amount is allocated to metropolitan areas and 15 percent to nonmetropolitan areas.

NOTE: The allocations for metropolitan and nonmetropolitan portions of the Multifamily Hub‟s jurisdictions reflect the definitions of metropolitan and nonmetropolitan areas as of the June

2003 definitions by the Office of Management and Budget.

A fair share factor is developed for each metropolitan and nonmetropolitan portion of each Multifamily Hub‟s jurisdiction by dividing the number of elderly renter households in the respective metropolitan and nonmetropolitan portion of the jurisdiction by the total number of elderly rental households in the metropolitan and nonmetropolitan portions of the United States.

The resulting percentage for each Multifamily Hub‟s jurisdiction is then adjusted to reflect the relative cost of providing housing among the Multifamily Hub‟s jurisdictions. The adjusted needs percentage for the applicable metropolitan or nonmetropolitan portion of each jurisdiction is then multiplied by the respective total remaining capital advance funds available nationwide.

Based on the allocation formula, HUD has allocated the available capital advance funds as shown on the following chart:

http://www.huduser.org/portal/datasets/il/il10/index.html

* As of this Fiscal Year, the minimum set aside of 5 nonmetropolitan units was removed and only those areas with a sufficient number of qualifying households received an allocation.

FISCAL YEAR 2010 SECTION 202 ALLOCATIONS

HUB

Metropolitan Non-Metropolitan Totals

Est.

Units

Capital

Advance

Est.

Units Capital Advance

Est.

Units Capital Advance

BOSTON 165 25,851,925 20 2,783,358 185 28,635,283

NEW YORK 247 40,399,682 0* 0* 247 40,399,682

BUFFALO 57 7,947,099 19 2,685,868 76 10,632,967

PHILADELPHIA 243 36,786,068 27 3,705,682 270 40,491,750

BALTIMORE 104 12,952,856 12 1,391,591 116 14,344,447

GREENSBORO 56 7,872,011 30 4,348,342 86 12,220,353

JACKSONVILLE 171 18,377,694 29 3,175,143 200 21,552,837

ATLANTA 106 11,873,465 43 4,818,351 149 16,691,816

CHICAGO 153 22,962,115 29 4,226,943 182 27,189,058

COLUMBUS 96 11,579,526 21 2,500,106 117 14,079,632

DETROIT 77 9,583,082 14 1,529,596 91 11,112,678

MINNEAPOLIS 81 11,680,662 35 5,044,632 116 16,725,294

FT WORTH 165 16,714,631 48 4,851,233 213 21,565,864

KANSAS CITY 85 10,238,144 57 6,657,660 142 16,895,804

DENVER 48 5,763,236 25 2,601,186 73 8,364,422

SAN FRANCISCO 171 25,580,086 15 2,258,675 186 27,838,761

LOS ANGELES 183 28,079,365 0* 0* 183 28,079,365

SEATTLE 79 11,269,149 20 2,900,808 99 14,169,957

National Totals 2,287 315,510,796 444 55,479,174 2,731 370,989,970

B. Type of Award. Capital Advance and Project Rental Assistance Contract Funds for new

Section 202 projects.

C. Type of Assistance Instrument. The Agreement Letter obligates the funds and stipulates the terms and conditions for the Section 202 fund reservation award as well as the submission requirements following the fund reservation award. The duration of the fund reservation award for the capital advance is 18 months from the date of issuance of the fund reservation.

D. Anticipated Start and Completion Date. Immediately upon your acceptance of the

Agreement Letter, you are expected to begin working towards the submission of a Firm

Commitment Application, which is the next application submission stage. NOTE: This may include environmental submissions pursuant to the capital advance agreement letter. The Firm

Commitment Application is to be submitted to the Multifamily Hub within 180 days from the date of the Agreement Letter. Initial closing of the capital advance and start of construction of the project are expected to be accomplished within 18 months of the fund reservation award.

Final closing of this capital advance is expected to occur no later than six months after completion of project construction.

III. Eligibility Information

A. Eligible Applicants. Private nonprofit organizations and nonprofit consumer cooperatives that meet the threshold requirements contained in the General Section and Section III.C. 2, below, are the only eligible applicants under this Section 202 program. Neither a public body or tribe nor an instrumentality or agency of a public body or tribe is eligible to participate in the program. Nonprofit entities associated with public bodies or tribes must establish their eligibility by providing an attorney‟s opinion stating that under state or tribal law the associated entity is not an instrumentality or agency of the public body or tribe and confirming that such entity:

Meets the definition of “private nonprofit organization” under part 891;

Has Articles of Incorporation which provide no more than minority control by the public body or tribe; and

Is not receiving a majority of its operational funding from the public body or tribe.

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 provision under Title VIII of the

American Homeownership and Economic Opportunity Act of 2000, a for-profit limited partnership with a private nonprofit organization or a corporation wholly owned and controlled by a private nonprofit organization as the sole general partner.

B. Cost Sharing or Matching. No cost sharing or match is required; however, you are required to make a commitment to cover the estimated start-up expenses, the minimum capital investment of one-half of one percent of the HUD-approved capital advance, not to exceed $10,000 or for a

National Sponsor not to exceed $25,000, and any funds required in excess of the capital advance, including the estimated cost of any amenities or features (and operating costs related thereto) which are not covered by the capital advance. You make such a commitment by signing the

Form HUD92042_Sponsor‟s_Resolution_for_Commitment_to_Project in Exhibit 8 of the application found in Section IV.B., below.

C. Other

1. Eligible Activities. Section 202 capital advance funds must be used to finance the development of housing through new construction, rehabilitation, or acquisition with or without rehabilitation. In accordance with 24 CFR 891.800, capital advance funds may be used in combination with other non-Section 202 funding sources leveraged by a single purpose and single-asset for-profit limited partnership (of which a private nonprofit organization or a corporation wholly owned and controlled by a private nonprofit organization is the sole general partner) to develop a mixed-finance project, which may or may not include additional unassisted housing units for the elderly over and above the Section 202 units. In a mixed-finance transaction, only the capital advance units will receive project rental assistance. Project rental assistance funds are provided to cover the difference between the HUD-approved operating costs and the amount the residents pay (each resident pays 30 percent of adjusted income) as well as to provide supportive services to frail elderly residents.

The development of a mixed-use project in which the Section 202 units are mortgaged separately from the other uses of the structure is not considered a mixed-finance project. A mixed-use project is defined as a property in which a portion is used for commercial or retail purposes and the other portion is used for residential purposes. A property can also be considered mixed use if different combinations of uses are present such as commercial/industrial or residential/industrial. For example, a multi-unit dwelling with the front unit used as a commercial store and the back units used as residential dwellings is a mixed-use project.

The HUD-approved expenses for operating a project may include up to $15 per unit/per month of the costs to provide services for the frail elderly and those determined to be "at risk" of being institutionalized. PRAC funds may also be used to cover the cost of employing a service coordinator if at least 25 percent of the project‟s residents are frail or at-risk of being institutionalized. Funding to cover the cost of services and/or the employment of a service coordinator will not be made available to a property until after the project is occupied and the

Owner has identified the frailty or “at risk” nature of the residents. Section 202 projects receiving Congregate Housing Services assistance under Section 802 of the National Affordable

Housing Act are not eligible to use PRAC funds for supportive services or the cost of a service coordinator.

2. Threshold Requirements for Funding Consideration. In addition to the threshold criteria outlined in Section III.C.2. of the General Section, including the threshold regarding the

Resolution of Outstanding Civil Rights Matters, the following threshold requirements must be met:

a. Applications Must Be Responsive. Your application will be considered non-responsive to the NOFA and will not be accepted for processing if you:

(1) Submit paper copies of the application if you have not received approval from HUD for a waiver of the electronic submission requirements;

(2) Requested and received approval to submit a paper application, but you submit less than the required original and four (4) paper copies. Applicants receiving waiver approval to submit a paper application must follow the instructions in the approval notification regarding where to submit the application and the number of copies required. Failure to submit paper applications to the appropriate Multifamily Hub by that office‟s close of business on the application deadline date will deem the application late and therefore ineligible for funding consideration.

(3) Submit a substantially deficient application (i.e., a majority of the required exhibits, are not submitted with your application, particularly, but not limited to, those exhibits which are not curable). HUD reserves the right to determine whether your application is substantially deficient for purposes of determining whether the application is non-responsive to the NOFA.

Refer to Section IV.B., below, Content and Form of Application Submission, for information on the required exhibits for submission with your application to ensure that your application is complete at time of submission;

(4) Request more units than were allocated in either the metropolitan or nonmetropolitan allocation category to the Multifamily Hub Office that will be reviewing your application or 125 units, whichever is less (see the allocation chart in Section II.A., above);

(5) Request less than the minimum number of 5 units per site;

(6) Request assistance for an ineligible activity as defined in Section IV.E., Funding

Restrictions, below; or

(7) are an ineligible applicant (see Section III.A, Eligible Applicants, above).

b. Application Must Meet These Additional Threshold Requirements.

(1) Need. There must be a need and a market for the number of units proposed in the area of the project location. It is important that you determine that there is need/demand for the additional Section 202 project(s) being proposed in a particular housing market area prior to submitting your application. If HUD determines that there is not sufficient sustainable demand for additional units without longer term adverse impact on existing federally assisted housing, the proposed project will be rejected. The rental survey that you are to submit (see Section

IV.B.1.c. Part III, below) will assist you in determining whether there is a market need for the project you are proposing.

(2) You, or a co-Sponsor, must have experience in providing housing and services to elderly persons.

(3) You and any co-Sponsor must be an eligible private nonprofit organization or nonprofit consumer cooperative with tax exempt status under Internal Revenue Service code.

(4) Your application must contain acceptable evidence of the following:

(a) Evidence of Site Control. You must provide evidence of site control as described in this section and Exhibit 4(d)(i) of Section IV.B., below).

(b) Historic Preservation. You are required to send a letter to the State/Tribal Historic

Preservation Officer (SHPO/THPO) that attempts to initiate consultation with their office and requests their review of your determinations and findings with respect to the historical significance of your proposed project. A sample letter to the SHPO/THPO that you may adapt for your use if you so choose, is available on HUD‟s Web site at http://www.hud.gov/offices/adm/grants/fundsavail.cfm. You must include a copy of your letter to the SHPO/THPO in your application and either a statement that you have not received a response letter(s) from the SHPO/THPO or a copy of the response letter(s) received from the

SHPO/THPO.

(c) Contamination. HUD must determine if a proposed site contains contamination, such as hazardous waste or petroleum products, and, if so, HUD must be satisfied that it is eliminated or can be mitigated to the extent necessary to meet federal, state or local risk-based corrective action standards. You must assist HUD by doing the following:

(i) Phase I Environmental Site Assessment (ESA). You must undertake and submit a

Phase I ESA. It must be prepared by an Environmental Professional (EP), in accordance with the

ASTM Standard E 1527–05, using the table of contents and report format specified at Appendix

X4 thereto. The Phase I ESA shall be amended by including a “Tier 1” “vapor encroachment screen” pursuant to ASTM E 2600-10. In addition, you are required to:

Fill out the User Questionnaire as per Appendix X3 of ASTM E-1527-05 and provide it to the EP so as to be included in the Phase I ESA.

Inform the EP as to all of the above reasons and requirements for the Phase I ESA.

The EP preparing the Phase I ESA must meet all of the qualification requirements of

Appendix X2 of ASTM E 1527-05. Additionally, the EP must meet the license/certification, educational, and experiential requirements of Section X.2.1.1(2)(i), (ii), or (iii), of Appendix X2 of ASTM E 1527-05 and must provide supporting documentation to this effect in the Phase I

ESA.

The Findings, Opinions, and Conclusions sections of the Phase I ESA must be based on

ASTM 1527-05, Sections 12.5, 12.6, and 12.8, respectively. The Findings section shall list and discuss all recognized environmental conditions (REC), suspect RECs, historical RECs and/ or de minimis conditions (with all such terms as described in ASTM E 1527-05), as well as vapor encroachment conditions (VEC), suspected VECS, or instances where VECs cannot be ruled out

(pursuant to ASTM E 2600-10). The opinions section shall discuss each of these conditions as to whether each one is deemed to be or deemed not to be a REC and/or a VEC. The Conclusions section shall list all RECs and VECs. You are cautioned that even if the EP who prepares the

Phase I ESA determines that there are no RECs and no VECS and you therefore decide not to prepare a Phase II ESA (see paragraph (ii) Phase II ESA, below), HUD will review the Phase I

ESA to confirm that such determinations are reasonably warranted based on the information presented. Should HUD not concur with the Phase I conclusions and neither the Phase II was conducted nor the clean-up plan (in accordance with iii(A) and (B), below) was submitted, your application will be technically rejected.

The Phase I ESA that you submit must have been prepared within one year of the application deadline date; and any Phase I ESA prepared within the one year but more than 180 days prior to the application deadline date, must be updated pursuant to Section 4.6 ASTM

Standard E 1527–05. Even if updated, a Phase I prepared more than one year prior to the application deadline date is not acceptable. The preparation date is the earliest of either the date of the site visit, the records review, or the interviews.

The Phase I ESA must be submitted with the application. Therefore, it is important that you start the Phase I ESA process as soon after publication of the NOFA as possible. NOTE:

Failure to follow any or all of the above criteria for preparation and submission of the Phase I

ESA will result in a technical rejection of your application.

HUD invites you to review the documents “Choosing an Environmentally Safe Site” and

“Supplemental Guidance, Environmental Information”, which are available on the HUD website at http://www.hud.gov/offices/adm/grants/fundsavail.cfm.

(ii) Phase II ESA. If the Phase I ESA concludes that there are RECs or VECs and you choose to continue with that site for the project being proposed, you must undertake a detailed

Phase II ESA by an appropriate professional. The Phase II ESA must address all of the RECs and VECs identified in the Phase I ESA. The testing and sampling design shall be based on scientific methodology and shall proceed to the point that a reasonable determination can be made regarding each of the RECs and VECs.

(A) For on-site RECs and VECs the determination shall be made that either:

hazardous waste, petroleum products, and/or VECs exist on the site or http://www.hud.gov/offices/adm/grants/fundsavail.cfm hazardous waste, petroleum products, and/or VECs could not be detected on the site.

(B) For off-site RECs and VECS, the determination shall be made that:

hazardous waste, petroleum products, and/or VECs have migrated on to the site or are likely to do so in the foreseeable future; or hazardous waste, petroleum products, and/or VECs have not migrated on to the site and are not likely to do so in foreseeable future.

In order for your application to be considered for review under this FY 2010 funding competition, the Phase II ESA must be submitted with the application.

(iii) Clean-up. A clean-up plan is required if the Phase II determines that:

hazardous waste, petroleum products, and/or VECs exist on the site and/or hazardous waste, petroleum products, and/or VECs have migrated on to the site or are likely to do so in the foreseeable future.

The clean-up plan must be prepared by an appropriate professional to either:

(A) Completely clean-up the site -- other than for contamination that would remain solely in the groundwater that is at least 25 feet below the surface -- to statewide, non site-specific federal or state standards, with no active or passive remediation still taking place after either final closing or initial occupancy, whichever comes first, no capping over of any contamination, and no monitoring wells, OR

(B) Clean up the site to federal or state risk-based corrective action (RBCA) levels. The

RBCA must allow for no active remediation (such as flushing wells or digging up and/or hauling away of contamination) to take place after either final closing or initial occupancy, whichever comes first.

The clean-up plan must be detailed in nature and must include:

An estimate of clean-up costs.

Either an approval letter of the clean-up plan from the relevant federal or state authority or a discussion of the feasibility of securing necessary approvals prior to

HUD issuance of a Firm Commitment.

A discussion of the feasibility of completing necessary work prior to final closing or initial occupancy, whichever comes first.

In order for your application to be considered for review under the FY 2010 funding competition, the clean-up plan must be submitted with the application. If the above information is not submitted, the application will be rejected. NOTES: Before issuance of the Firm

Commitment, HUD will require a final clean-up plan. The final clean-up plan must include a remediation contract that specifies all clean-up costs and timelines for clean-up to ensure that it is completed prior to final closing or initial occupancy, whichever comes first, and approval documentation from the relevant regulatory authority. Furthermore, the final clean-up plan will be required to meet specific HUD criteria that will be discussed in a separate processing notice.

Clean-up costs are an allowable expenditure out of capital advance funds; however, HUD will not cover any cost that exceeds the maximum development cost limits. To the extent that the actual cost of the proposed clean-up activities exceed the capital advance amount provided, you will have to identify funding sources other than the capital advance funds to cover any excess clean-up costs.

(d) Asbestos. Asbestos is a hazardous substance commonly used in building products until the late 1970s. Therefore, you must submit one of the following with your application:

(i) If there are no pre-1978 structures on the site or if there are pre-1978 structures, that most recently consisted of solely four or fewer units of single-family housing including appurtenant structures thereto, a statement to this effect, or

(ii) If there are pre-1978 structures on the site, other than for a site that most recently consisted of solely four or fewer units of single-family housing including appurtenant structures thereto, a comprehensive building asbestos survey that is based on a thorough inspection to identify the location and condition of asbestos throughout any structures and performed pursuant to the “baseline survey” requirements of ASTM E 2356-10 “Standard Practice for

Comprehensive Building Asbestos Surveys”. In those cases where suspect asbestos is found, it would either be assumed to be asbestos or would require confirmatory testing. If the asbestos survey indicates the presence of asbestos or the presence of asbestos is assumed, and if the application is approved, HUD will condition the approval on an appropriate mix of asbestos abatement and an asbestos Operations and Maintenance Plan.

(5) Supportive Services Plan. You are required to include a Supportive Services Plan that describes the supportive services proposed to be provided to the anticipated residents, including a description of the public or private funds that are expected to fund the proposed services and the manner in which the services will be provided to the proposed residents (see

Exhibit 5 in Section IV.B., below). You must not require residents to accept any supportive services as a condition of occupancy or admission.

(6) Delinquent Federal Debt. This policy is applicable to applicants as well as their boards and development team members. Refer to the General Section for further information regarding delinquent federal debt.

(7) Previous Participation Certification. To ensure that owners of multifamily housing are held to high standards and to avoid risk of loss to the Department, you are required to submit form HUD2530, Previous Participation Certification. If any property listed has defaulted on a mortgage loan or has less than satisfactory review ratings (physical inspections, management and financial reviews), the Principal will be required to submit additional information. Approvals of entities that have defaulted or received unsatisfactory review rating will be subjected to HUD‟s

Previous Participation clearance review process.

3. Program Requirements. By signing Form HUD-92015-CA, Supportive Housing for the

Elderly Section 202, Application for Capital Advance Summary Information, you are certifying that you will comply with all program requirements listed in the General Section as well as the following requirements:

a. Statutory and Regulatory Requirements. In addition to the statutory, regulatory, threshold and public policy requirements listed in the General Section and in this NOFA, you must comply with all statutory and regulatory requirements that govern the Section 202 program.

NOTE: Section 2835(b) of the Housing and Economic Recovery Act of 2008 (HERA) directs the Department to delegate review and processing of certain Section 202 Supportive Housing for the Elderly projects to selected State or local housing agencies that will serve as a Delegated

Processing Agency (DPA). If a State or local housing agency has been selected as a DPA, processing is required where the Sponsor‟s application indicates that development funds for a proposed Section 202 project are coming from a combination of capital advance and other sources of funding, including low-income housing tax credits. These sponsors will be notified by the department if their applications will be processed by a Delegated Processor and the location of the Delegated Processor approximately 30 days after the announcement of the

Section 202 awards. However, the Secretary shall retain authority to process capital advances in cases in which no State or local housing agency has applied to provide delegated processing or no such agency has entered into an agreement with the Secretary to serve as a delegated processing agency for the selected application.

Notice H-2009-10 defining the Department‟s delegated processing procedures was published on August 19, 2009.

b. Application/Project Size Limits.

(1) Application Limits Applicable to Sponsors or Co-Sponsors. A Sponsor or Co-sponsor may not apply for more than 200 units of housing for the elderly in any Multifamily Hub Office or more than 10 percent of the total units allocated to all Multifamily Hub Offices. Affiliated entities (organizations that are branches or offshoots of a parent organization) that submit separate applications are considered a single entity for the purpose of this limit.

(2) Maximum Project Size. No single application may propose the development of a project for more than the number of units allocated to a Multifamily Hub Office (in either the metropolitan or nonmetropolitan allocation category, depending on the location of your proposed project) or 125 units, whichever is less. For example, the Multifamily Hub Office, which has jurisdiction over the area of your proposed project, was allocated 80 units (metropolitan) and 20 units (nonmetropolitan) for a total of 100 units. You cannot apply for more than 80 units if your proposed project is in a metropolitan area and no more than 20 units if the project is in a nonmetropolitan area. The maximum project size includes a resident manager‟s unit, if proposed.

(3) Minimum Project Size. The minimum number of units that can be applied for in one application is five units. If the proposed project will be a scattered-site development, the five-unit minimum requirement will apply to each site.

c. Minimum Capital Investment. If selected, you must provide a minimum capital investment of one-half of one percent of the HUD-approved capital advance amount, not to exceed $10,000 in accordance with 24 CFR 891.145, with the following exception: If you, as Sponsor or Co-

Sponsor, have one or more Section 202 or one or more Section 811 project(s) under reservation, construction, or management in two or more different HUD geographical regions (Hubs), the minimum capital investment shall be one half of one percent of the HUD-approved capital advance amount, not to exceed $25,000.

d. Accessibility. Your project must meet accessibility requirements at 24 CFR 891.120 and 24

CFR 891.210. In particular, you must comply with Section 504 of the Rehabilitation Act of

1973 and its implementing regulations at 24 CFR part 8, which include physical accessibility requirements for new construction, substantial alterations, and other alterations. Your project must also comply with the Fair Housing Act and its implementing regulations at 24 CFR part

100. New construction of covered multifamily dwellings must meet Fair Housing Act design and construction requirements at 24 CFR 100.205. Further, if rehabilitation results in a covered multifamily dwelling (e.g., if the rehab includes an addition) as defined at 24 CFR 100.201, then it must also meet the Fair Housing Act design and construction requirements. In addition, when acquiring housing that was designed and constructed for first occupancy after March 13, 1991, it is wise to determine whether the building complies with the design and construction requirements of the Fair Housing Act 42 USC § 3604(f)(3)(c). You may receive helpful information with respect to the Fair Housing Act design and construction requirements on Fair

Housing Accessibility FIRST‟s website at http://www.fairhousingfirst.org. Your project must also comply with the Americans with Disabilities Act and its implementing regulations, as applicable. In addition, 24 CFR 8.4(b)(5) prohibits the selection of a site or location which has the purpose or effect of excluding persons with disabilities from, denying them the benefits of, or otherwise subjecting them to discrimination under the Federally assisted program or activity.

Refer to Section IV, Exhibit 4(c)(i) of this NOFA for information regarding the visitability and universal design.

e. Conducting Business in Accordance with HUD Core Values and Ethical Standards.

You are not subject to the requirements of 24 CFR parts 84 and 85 as outlined in the General

Section, except that the disposition of real property may be subject to 24 CFR part 84. However, you are still subject to the core values and ethical standards as they relate to the conflict of interest provisions in 24 CFR 891.130. This regulation mandates that no officer or board http://www.fairhousingfirst.org/ members of either the sponsor or the owner shall have any financial interest in any contract with the owner or in any firm which has a contract with the owner. To ensure compliance with the program‟s conflict of interest provisions, you are required to sign a Sponsor‟s Conflict of Interest

Resolution, Form HUD92041, and include it in your Section 202 application. Further, if awarded a Section 202 fund reservation, the officers, directors, board members, trustees, stockholders and authorized agents of the Section 202 Sponsor and Owner entities will be required to submit to HUD individual certifications regarding compliance with HUD‟s conflict of interest requirements.

f. National Environmental Policy Act and Related Laws.

(1) General. You must be in compliance with the National Environmental Policy Act of

1969 (NEPA) (42 U.S.C. 4321) and applicable related environmental authorities at 24 CFR

50.3(i) and 24 CFR 50.4, HUD‟s programmatic implementing regulations at 24 CFR part 50 and

24 CFR 891.155(b), especially, but not limited to, the provision of information to HUD at 24

CFR 50.31(b), and you must comply with any environmental “conditions and safeguards” at 24

CFR 50.3(c).

(2) Preliminary Environmental Review at Application Processing Stage. Pursuant to 24

CFR part 50, HUD has the responsibility for conducting the environmental reviews. HUD will commence the environmental review of your project upon receipt of your completed application.

At the application processing stage, HUD will only perform a preliminary environmental review.

HUD subsequently will complete its environmental reviews at such time as HUD announces capital advance awards and only for those applicants receiving such awards. The purpose of the preliminary environmental review will be to determine if there are major adverse environmental conditions that necessitate mitigation, yet appropriate mitigation does not appear to be adequate and/or achievable taking into account any information provided in the application. Examples of such occurrences would be a project that propose a Risk Based Corrective Action Plan or

Complete Clean Up Plan but lacks likely approval of such by the relevant regulatory authority, a project that would result in destruction of a valuable wetland, or a project for which a noise barrier to reduce noise to acceptable levels appears to be necessary but is not proposed in the application and/or does not appear to be achievable. Furthermore, HUD‟s preliminary environmental review at the application processing stage does not constitute HUD environmental approval of the project site.

For the reasons above and to enable HUD to complete its environmental review in a timely manner, all applicants are required to provide an Environmental Report. The

Environmental Report may be separate from the Phase I ESA. This report should cover the relevant topics in the Sample Field Notes Checklist (SFNC) from form HUD 4128 and should focus on those environmental issues that might affect the acceptability of the project including any compliance issues with state environmental laws as well as the following:

(a) Historic Preservation (Item 18 in the SFNC), also attempt to obtain comments from the

State/Tribal Historic Preservation Officer (see Exhibits 4(d)(ix) of Section IV.B., below).

(b) Floodplain Management (Item 17 in the SFNC)

(c) Wetlands Protection (Item 22 in the SFNC)

(d) Endangered Species (Item 24a in the SFNC)

(e) Noise Analysis (Item 19 in the SFNC)

(f) Explosive/Flammable Hazards (Item 20 in the SFNC)

(g) Coastal Barrier Resources (Item 16, SFNC)

(h) Coastal Zone Management (Item 10, SFNC)

(i) Sole Source Aquifers (Item 24b of the SFNC)

(j) Airport Clear Zones (Item 21 of the SFNC)

NOTE: Form HUD4128 with the SFNC can be found at the following website:

www.hud.gov/utilities/intercept.cfm?/offices/cpd/energyenviron/environment/compliance/forms/

4128.pdf. This form provides information on the criteria HUD uses to determine the environmental acceptability of a site and to record its environmental review.

(3) Completion of Environmental Review for Applications Selected for Funding.

HUD will complete its environmental review prior to issuance of the Firm Commitment. When

HUD continues its environmental review, it may find the site environmentally unacceptable, in which case the fund reservation may be cancelled. Therefore, it is extremely important that you evaluate the site to insure that it meets HUD‟s environmental requirements (see Section

IIIC3f(2), above and paragraph (4), below.

(4) Compliance with Environmental Assurance. As HUD only performs a preliminary environmental review at the application processing stage, site approval will not occur until HUD completes its environmental review and finds the site environmentally acceptable. Therefore, the applicant‟s signature on the application constitutes an assurance that the applicant agrees to assist

HUD with HUD‟s compliance with environmental review regulations in 24 CFR part 50 and that the applicant will:

(a) Supply HUD with all available and relevant information necessary for HUD to perform for each property any environmental review required by 24 CFR part 50.

(b) Carry out mitigating measures required by HUD; and

(c) Not acquire, rehabilitate, demolish, convert, enter into or close a leasehold agreement (you can continue to perform obligations to sustain an existing leasehold or option to lease agreement), repair or construct property, nor commit or expend HUD or local funds for http://www.hud.gov/utilities/intercept.cfm?/offices/cpd/energyenviron/environment/compliance/forms/4128.pdf http://www.hud.gov/utilities/intercept.cfm?/offices/cpd/energyenviron/environment/compliance/forms/4128.pdf these program activities with respect to any eligible property, from the time the application is submitted until HUD approval of the site is received.

(5) Environmentally Unacceptable Sites. All agreement letters will incorporate the recipient‟s responsibilities under paragraph (4) and will stipulate that a Section 202 Fund

Reservation award constitutes preliminary approval of an application; that a Section 202 Fund

Reservation award does not constitute an approval of the site, which may occur only upon completion of HUD‟s environmental review; and that if HUD finds the site acceptable but only with mitigation and you cannot meet the mitigation requirements, or if HUD determines that even with mitigation, the site is unacceptable, the Section 202 Fund Reservation award will be terminated.

g. Additional Nondiscrimination Requirements. Refer to Section III.C.5. of the General

Section for information regarding additional nondiscrimination requirements.

h. Economic Opportunities for Low and Very Low-Income Persons (Section 3).

The requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.

1701u) are applicable to projects receiving an award under this NOFA that will involve housing construction; rehabilitation (including the reduction of lead-based paint hazards, but excluding routine maintenance, repair and replacement); or other public construction. See Section V. for how Section 3 requirements will be incorporated into the rating criteria. Please refer to subparts

B and E of 24 CFR Part 135 and Section III.C.5.d. of the NOFA General Section for additional information. Successful applicants will be required to comply with Section 3. The requirements of Section 3 must be incorporated into your proposed project by ensuring new training, employment and contracting opportunities will be directed to low- and very low-income persons residing within the project area and to the business concerns that employ these persons, to the greatest extent feasible.

i. Design and Cost Standards. You must comply with HUD‟s Section 202 design and cost standards (24 CFR 891.120 and 891.210), Site and Neighborhood Standards of the regulations governing the Section 202 Supportive Housing for the Elderly program (24 CFR 891.125(b) and

(c)), Section 504 of the Rehabilitation Act of 1973 and HUD‟s implementing regulations at 24

CFR part 8, the Fair Housing Act and its implementing regulations at 24 CFR part 100, and where applicable, the Americans with Disabilities Act. You may receive helpful information with respect to the Fair Housing Act design and construction requirements on Fair Housing

Accessibility FIRST‟s website at http://www.fairhousingfirst.org.

j. Formation of Owner Corporation. You must form an Owner entity (in accordance with 24

CFR 891.205 or 891.805 for mixed-finance developments), if not already formed, after issuance of the capital advance fund reservation and must cause the Owner entity to file a request for determination of eligibility and a request for capital advance, and must provide sufficient resources to the Owner entity to ensure the development and long-term operation of the project, including capitalizing the Owner entity at firm commitment processing in an amount sufficient to meet its obligations in connection with the project over and above the capital advance amount.

http://www.fairhousingfirst.org/

k. Davis-Bacon. You must comply with the labor standards provisions at 24 CFR 891.155(d).

These include Davis-Bacon prevailing wage and reporting requirements and the overtime provisions of the Contract Work Hours and Safety Standards Act.

l. Energy and…