4.9.24 FY24 Choice Neighborhoods Planning Grants NOFO FR-6800-N-38.pdf

U.S. Department of Housing and Urban Development

Public and Indian Housing

FY24 Choice Neighborhoods Planning Grants NOFO

FR-6800-N-38

06/10/2024

Table of Contents

OVERVIEW

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

B. Authority

II. AWARD INFORMATION

A. Available Funds

B. Number of Awards

C. Minimum/Maximum Award Information

D. Period of Performance

E. Type of Funding Instrument

III. ELIGIBILITY INFORMATION

A. Eligible Applicants

B. Ineligible Applicants

C. Cost Sharing or Matching

D. Threshold Eligibility Requirements

E. Statutory and Regulatory Requirements Affecting Eligibility

F. Program-Specific Requirements

G. Criteria for Beneficiaries

IV. APPLICATION AND SUBMISSION INFORMATION

A. Obtain an Application Package

B. Content and Form of Application Submission

C. System for Award Management (SAM) and Unique Entity Identifier (UEI)

D. Application Submission Dates and Times

E. Intergovernmental Review

F. Funding Restrictions

V. APPLICATION REVIEW INFORMATION

A. Review Criteria

B. Review and Selection Process

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices

B. Administrative, National and Departmental Policy Requirements and Terms for HUD Applicants and Recipients of Financial Assistance Awards

C. Reporting

D. Debriefing

VII. AGENCY CONTACT(S)

VIII. OTHER INFORMATION

APPENDIX

Program Office:

Public and Indian Housing

Funding Opportunity Title:

FY24 Choice Neighborhoods Planning Grants NOFO Funding Opportunity Number:

FR-6800-N-38

Assistance Listing Number:

14.892 Due Date for Applications:

06/10/2024

OVERVIEW

The U.S. Department of Housing and Urban Development (HUD) issues this Notice of Funding Opportunity (NOFO) to invite applications from eligible applicants for the program and purpose described within this NOFO. You, as a prospective applicant, should carefully read all instructions in all sections to avoid sending an incomplete or ineligible application. HUD funding is highly competitive. Failure to respond accurately to any submission requirement could result in an incomplete, ineligible, or noncompetitive proposal.

In accordance with Title 24 part 4, subpart B of the Code of Federal Regulations (CFR), during the selection process (which includes HUD’s NOFO development and publication, and concludes with the announcement of the selection of recipients of assistance), HUD is prohibited from disclosing covered selection information. Examples of impermissible disclosures include:

1) information regarding any applicant’s relative standing; 2) the amount of assistance requested by any applicant; and 3) any information contained in the application. Prior to the application deadline, HUD may not disclose the identity of any applicant or the number of applicants who have applied for assistance.

For further information regarding this NOFO, direct questions regarding the specific requirements of this NOFO to the agency contact identified in section VII.

Paperwork Reduction Act Statement. In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. §§ 3501- 3520) (PRA), the Office of Management and Budget (OMB) approved the information collection requirements in this NOFO. HUD may not conduct or sponsor, and a person is not required to respond to a collection of information unless the collection displays a valid OMB control number. This NOFO identifies the applicable OMB control number, unless the collection of information is excluded from these requirements under 5 CFR Part 1320.

OMB Control Number(s):

2577-0269

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

1. Purpose

The Choice Neighborhoods program focuses on the redevelopment of severely distressed public housing and/or HUD-assisted housing through a comprehensive approach to neighborhood transformation. Local leaders, residents, and other stakeholders, such as public housing agencies, cities, Tribal entities, schools, police, business owners, nonprofits, and private https://www.ecfr.gov/current/title-24/subtitle-A/part-4/subpart-B https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1 developers, come together to create and implement a comprehensive neighborhood plan for redeveloping severely distressed HUD housing and revitalizing the surrounding neighborhood.

Choice Neighborhoods funds are used to leverage significant public and private dollars to support locally driven strategies that address struggling neighborhoods. To this end, the Choice Neighborhoods program is focused on three core goals:

1. Housing: Replace severely distressed public and HUD-assisted housing with high-quality mixed-income housing that is responsive to the needs of residents and appropriate for the surrounding neighborhood;

2. People: Improve outcomes of households living in the target housing related to income and employment, health, and education; and

3. Neighborhood: Create the conditions necessary to attract long-term public and private reinvestment in distressed neighborhoods which will promote economic development and result in increased/improved amenities, services, and job opportunities for residents.

HUD offers two types of grants under the Choice Neighborhoods program: Planning Grants and Implementation Grants. This funding opportunity is for Planning Grants. Successful applicants will use their grant funds to develop a comprehensive neighborhood revitalization strategy, or “Transformation Plan.” Implementation Grants provide funding to assist in implementing these Transformation Plans, which will serve as the guiding document for the future revitalization of the target public and/or HUD-assisted housing units, the transformation of the surrounding neighborhood and the deployment strategies which create positive outcomes for families.

Experience shows that to successfully develop and implement a Transformation Plan, broad civic engagement is needed to gather and leverage the financial and human capital resources needed to support the sustainability of the plan. These efforts should build community support for and involvement in the development and implementation of the plan. Additionally, past revitalization efforts have demonstrated that even modest physical improvements and investment actions can help communities build momentum for change and transition from planning to implementation of that plan. These actions improve neighborhood confidence, sustain the community’s energy, attract further engagement, and help convince skeptical stakeholders that positive change is possible. Thus, successful applicants should also undertake such “doing while planning” projects during the grant period.

2. HUD and Program-Specific Goals and Objectives

HUD’s Strategic Plan sets the direction and focus of our programs and staff to create strong, sustainable, inclusive communities and quality, affordable homes for all. This NOFO supports HUD’s Strategic Plan for Fiscal Years (FY) 2022-2026 to accomplish HUD’s mission and vision. Each of the five goals in the Strategic Plan include what HUD hopes to accomplish, the strategies to accomplish those objectives, and the indicators of success.

HUD will pursue two overarching priorities focused on increasing equity and improving customer experience across all HUD programs. Five strategic goals and several objectives undergird the Plan; however the following goals are applicable to this NOFO.

You are expected to align your application to the applicable strategic goals and objectives below.

Use the information in this section to describe in your application the specific goals, objectives, and measures that your project is expected to help accomplish. If your project is selected for funding, you are also expected to establish a plan to track progress related to those goals, https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas objectives, and measures. HUD will monitor compliance with the goals, objectives, and measures in your project.

Applicable Goals and Objectives from HUD’s Strategic Plan Strategic Goal 1: Support Underserved Communities Fortify support for underserved communities and support equitable community development for all people.

1C: Invest in the Success of Communities Promote equitable community development that generates wealth-building for underserved communities, particularly for communities of color.

Strategic Goal 2: Ensure Access to and Increase the Production of Affordable Housing Ensure housing demand is matched by adequate production of new homes and equitable access to housing opportunities for all people.

2A: Increase the Supply of Housing Enhance HUD's programs that increase the production and supply of housing across the country.

Strategic Goal 4: Advance Sustainable Communities Advance sustainable communities by strengthening climate resilience and energy efficiency, promoting environmental justice, and recognizing housing's role as essential to health.

4A: Guide Investment in Climate Resilience Invest in climate resilience, energy efficiency, and renewable energy across HUD programs.

4B: Strengthen Environmental Justice Reduce exposure to health risks, environmental hazards, and substandard housing, especially for low-income households and communities of color.

Each Choice Neighborhoods grantee must develop a Transformation Plan that addresses the Housing, People, and Neighborhood objectives. Grantees are expected to develop performance metrics based on these objectives:

Housing Objectives: Housing transformed with the assistance of Choice Neighborhoods should be:

1. Financially Viable. The housing project is fully financed and will generate sufficient rental income over the long term to be operated and well maintained in accordance with high industry standards.

2. Mixed-Income. Housing affordable to families and individuals with a broad range of incomes including low-income, moderate-income, and market rate or unrestricted.

3. Energy Efficient, Climate Resilient, and Sustainable. Housing achieves certification by one of the recognized green rating programs and is built to be resilient to local disaster risk and other climate impacts.

4. Accessible, Healthy, and Free from Discrimination. Housing is well-designed, meets federal accessibility requirements and embraces concepts of visitability and universal design, has healthy indoor air quality, has affordable broadband Internet access, and is free from discrimination.

People Objectives: Residents who live in the target and replacement housing before and after redevelopment benefit from:

1. Effective Education. Residents have access to high-quality early learning programs and services so children enter kindergarten ready to learn and quality schools and/or educational supports that ultimately prepare students to graduate from high school college- and/or career-ready.

2. Income and Employment Opportunities. The income of residents, particularly wage income for non-elderly/non-disabled adult residents, increases over time.

3. Quality Health Care. Residents have increased access to health services and have improved physical and mental health over time.

4. Housing Location, Quality, and Affordability. Residents of the target housing who, by their own choice, do not return to the development have housing and neighborhood opportunities as good as or better than the opportunities available to those who occupy the redeveloped site.

Neighborhood Objectives: Through investments catalyzed by Choice Neighborhoods, the neighborhood enjoys improved:

1. Housing Quality and Variety. The neighboring housing has a lower vacancy/abandonment rate, is high quality and well-maintained, and has an appropriate mix of rental and homeownership units to meet resident needs. The neighborhood better supports families with a broad range of incomes.

2. Economic Opportunity. The neighborhood attracts and maintains a diverse mix of businesses and employers to create meaningful jobs and economic opportunities for residents, respond to local needs, and address long-term disinvestment.

3. Community Assets and Amenities. The neighborhood includes community amenities found in higher opportunity areas, such as grocery stores and fresh food options, retail goods and services, financial institutions, medical and health facilities, parks and greenspace, public transit, high-quality early learning programs, and high performing public schools.

4. Community Confidence. The neighborhood image reflects a healthy, livable, and equitable community that honors its history and embraces a positive outlook for the future. There is an enhanced sense of place and a visibly improved built environment.

Long term-residents choose to stay and have the supports to do so, and new residents likewise choose to live in the revitalized neighborhood.

5. Safety. Residents feel safer in their homes and spending time in the revitalized community and the neighborhood has lower crime rates than prior to redevelopment.

3. Changes from Previous NOFO

Highlights of significant changes:

• The ‘Relation to prior HOPE VI Revitalization Grants’ requirement is revised to clarify the exclusion only applies to units at the public housing project that was the target of the HOPE VI grant.

• This NOFO includes a new rating factor in the Preference Points section for Rural Partners Network Community Networks.

• ‘Experience Promoting Racial Equity’ is now an unscored narrative rather than a rating factor.

• In the Need rating factors, the Part I Violent Crime rating factor has been removed.

(Note: applicants are still expected to provide data on crime rates in the neighborhood profile as part of the Executive Summary)

• In alignment with Executive Order 14112, Reforming Federal Funding and Support for Tribal Nations to Better Embrace Our Trust Responsibilities and Promote the Next Era of Tribal Self-Determination, this NOFO supports requiring Agencies provide Tribal Nations with the flexibility to address the specific needs of their communities by making it easier to access Federal funding to which they are eligible for.

• HUD may set aside one grant for the highest scoring application that targets Indian housing if it would not otherwise score high enough to receive funding.

4. Definitions

a. Standard Definitions

Affirmatively Furthering Fair Housing (AFFH) means taking meaningful actions, in addition to combating discrimination to overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunities, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.

The duty to affirmatively further fair housing extends to all program participant’s activities and programs relating to housing and urban development.

Assistance Listing number refers to the unique number assigned to each Federal assistance program publicly available in the Assistance Listing, which is managed and administered by the General Services Administration. The Assistance Listing number was formerly known as the Catalog of Federal Domestic Assistance (CFDA) number.

Authorized Organization Representative (AOR) is a person authorized to legally bind your organization and submit applications via Grants.gov. The AOR is authorized by the E-Business Point of Contact (E-Biz POC) in the System for Award Management (see E-Biz POC definition).

An AOR may include an Expanded AOR and/or a Standard AOR.

Expanded Authorized Organization Representative is a user in Grants.gov who is authorized by the E-Biz POC to perform the functions of a Standard AOR, initiate and submit applications on behalf of your organization, and is allowed to modify organization-level settings and certifications in Grants.gov.

Standard Authorized Organization Representative is a user in Grants.gov who is authorized by the E-Biz POC to initiate and submit applications in Grants.gov. A Grants.gov user with the Standard AOR role can only submit applications when they are a Participant for that workspace.

Consolidated Plan is the document submitted to HUD that serves as the comprehensive housing affordability strategy, community development plan, and submission for funding under any of the Community Planning and Development formula grant programs (e.g., CDBG, ESG, HOME, and HOPWA). This Plan is prepared in accordance with the process described in 24 CFR part 91.

This plan is completed by engaging in a participatory process to assess affordable housing and community development needs and market conditions, and to make data-driven, place-based investment decisions with funding from formula grant programs. (See 24 CFR part 91 for HUD’s requirements regarding the Consolidated Plan and related Action Plan).

Contract means, for the purpose of Federal financial assistance, a legal instrument by which a recipient or subrecipient purchases property or services needed to carry out the project or program under a Federal award. For additional information on contractor and subrecipient determinations, see 2 CFR 200.331.

Contractor means an entity that receives a contract as defined above and in 2 CFR 200.1.

Cooperative agreement has the same meaning defined at 2 CFR 200.1.

Deficiency, with respect to the making of an application for funding, is information missing or omitted within a submitted application. Examples of deficiencies include missing documents, missing or incomplete information on a form, or some other type of unsatisfied information requirement. Depending on specific criteria, a deficiency may be either Curable or Non-Curable.

A Curable Deficiency is missing or incomplete application information that may be corrected by the applicant with timely action. To be curable, the deficiency must:

• Not be a threshold requirement, except for documentation of applicant eligibility;

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

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

A Non-Curable Deficiency is missing or incomplete application information that cannot be corrected by an applicant after the submission deadline. A non-curable deficiency is a deficiency that is a threshold requirement, or a deficiency that, if corrected, would change an applicant’s score or rank versus other applicants. If an application includes a non-curable deficiency, the application may receive an ineligible determination, or the non-curable deficiency may otherwise adversely affect the application’s score and final funding determination.

E-Business Point of Contact (E-Biz POC) is an individual associated with the applicant organization who is responsible for the administration and management of award activities for the applicant organization. The E-Biz POC is likely to be an organization's chief financial officer or authorizing official. The E-Biz POC authorizes representatives of their organization to apply on behalf of the organization (see Authorized Organization Representative definition). There can only be one E-Biz POC per unique entity identifier (see definition of Unique Entity Identifier below).

Eligibility requirements are mandatory requirements for an application to be eligible for funding.

Environmental Justice means investing in environmental improvements, remedying past environmental inequities, and otherwise developing, implementing, and enforcing environmental https://www.ecfr.gov/current/title-24/subtitle-A/part-91 https://www.ecfr.gov/current/title-24/subtitle-A/part-91 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR031321e29ac5bbd/section-200.331 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 laws and policies in a manner that advances equity and provides meaningful involvement for people and communities that have been environmentally underserved or overburdened, such as Black and Brown communities, indigenous groups, and individuals with disabilities. This definition does not alter the requirements under HUD’s regulations at 24 CFR 58.5(j) and 24 CFR 50.4(l) implementing Executive Order 12898. E.O. 12898 requires a consideration of how Federally assisted projects may have disproportionately high and adverse human health or environmental effects on minority and/or low-income populations. For additional information on environmental review compliance, refer to:

https://www.hud.gov/program_offices/comm_planning/environment_energy/regulations.

Equity has the meaning given to that term in Section 2(a) of Executive Order 13985 and means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders and other persons of color; members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

Federal award, has the meaning, depending on the context, in either paragraphs (1) or (2) of this definition:

(1)

(a) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity, as described in 2 CFR 200.101; or

(b) The cost-reimbursement contract under the Federal Acquisition Regulations that a non- Federal entity receives directly from a Federal awarding agency or indirectly from a pass- through entity, as described in 2 CFR 200.101.

(2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definitions of Federal financial assistance in 2 CFR 200.1, and this NOFO, or the cost-reimbursement contract awarded under the Federal Acquisition Regulations.

(3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs).

(4) See also definitions of Federal financial assistance, grant agreement, and cooperative agreement in 2 CFR 200.1.

Federal Financial Assistance has the same meaning defined at 2 CFR 200.1.

Grants.gov is the website serving as the Federal government’s central portal for searching and applying for Federal financial assistance throughout the Federal government. Registration on Grants.gov is required for submission of applications to prospective agencies unless otherwise specified in this NOFO.

Green and Resilient Building Standard means an industry-recognized standard incorporating both:

https://www.ecfr.gov/current/title-24/subtitle-A/part-58/subpart-A/section-58.5 https://www.ecfr.gov/current/title-24/subtitle-A/part-50/subpart-A/section-50.4 https://www.ecfr.gov/current/title-24/subtitle-A/part-50/subpart-A/section-50.4 https://www.archives.gov/files/federal-register/executive-orders/pdf/12898.pdf https://www.hud.gov/program_offices/comm_planning/environment_energy/regulations https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200

(1) Certification under (i) Enterprise Green Communities, (ii) Leadership in Energy and Environmental Design (LEED) (New Construction, Homes, Midrise, Existing Buildings Operations and Maintenance, or Neighborhood Development), (iii) International Code Council (ICC)-700 National Green Building Standard Green+ Resilience; or the (iv) Living Building Challenge, or (v) a regional standard such as Earth Advantage New Homes; or (vi) any other equivalent comprehensive green building program acceptable to HUD; and

(2) Minimum energy efficiency requirements, such as those defined in (i) ENERGY STAR (Certified Homes or Multifamily High-Rise), (ii) DOE Zero Energy Ready Home; (iii) Passive House Institute Passive Building or EnerPHit certification from the Passive House Institute US (PHIUS), International Passive House Association; or (iv) any other equivalent energy efficiency standard acceptable to HUD.

Historically Black Colleges and Universities (HBCUs) are any historically Black college or university that was established prior to 1964, whose principal mission was, and is, the education of Black Americans, and that is accredited by a nationally recognized accrediting agency or association determined by the Secretary of Education to be a reliable authority as to the quality of training offered or is, according to such an agency or association, making reasonable progress toward accreditation. A list of accredited HBCUs can be found at the U.S. Department of Education’s website.

Minority-Serving Institutions (MSIs) are

(1) a part B institution (as defined in 20 U.S.C. § 1061(2));

(2) a Hispanic-serving institution (as defined in 20 U.S.C. § 1101a(5));

(3) a Tribal College or University (as defined in 20 U.S.C. § 1059c(b)(3));

(4) an Alaska Native-serving institution or a Native Hawaiian-serving institution (as defined in 20 U.S.C. § 1059d(b));

(5) a Predominantly Black Institution (as defined in 20 U.S.C. § 1059e(b)(6));

(6) an Asian American and Native American Pacific Islander-serving institution (as defined in 20 U.S.C. § 1059g(b)(2)); or

(7) a Native American-serving nontribal institution (as defined in 20 U.S.C. § 1059f(b)(2)).

Non-Federal Entity (NFE) means a state, local government, Indian tribe, Institution of Higher Education (IHE), or non-profit organization that carries out a Federal award as a recipient or subrecipient.

Primary Point of Contact (PPOC) is the person who may be contacted with questions about the application submitted by the AOR. The PPOC is listed in item 8F on the SF-424.

Promise Zones (PZs) are high poverty areas in select urban, rural and tribal communities designated from 2014-2016 where the Federal government partners with local leaders to increase economic activity, improve educational opportunities, leverage private investment, reduce violent crime, enhance public health and address other priorities identified by the community.

See Promise Zones.

https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partB-sec1061.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapV-partA-sec1101a.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059c.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059d.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059e.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059f.pdf https://www.hud.gov/program_offices/field_policy_mgt/fieldpolicymgtpz

Racial Equity is the elimination of racial disparities and is achieved when race can no longer predict opportunities, distribution of resources, or outcomes – particularly for Black and Brown persons.

Recipient means an entity, usually but not limited to non-Federal entities, that receives a Federal award directly from HUD. The term recipient does not include subrecipients or individuals that are beneficiaries of the award.

Resilience is a community’s ability to minimize damage and recover quickly from natural disasters, extreme weather events, and other changing climate conditions.

Rural Partners Network (RPN) is an all-of-government program that helps rural communities find resources and funding to create jobs, build infrastructure, and support long-term economic stability on their own terms. The RPN is central to President Biden’s commitment to ensuring that rural Americans have the opportunity to succeed – and that they can find that opportunity in rural America. Through the Rural Partners Network, the Administration is marshaling the combined resources of the federal agencies and other providers to partner directly with rural people and places and unlock the full potential of rural America.

Rural Partners Network (RPN) Community Networks (CN) are designated rural places by the Federal government. When being considered for an RPN CN, rural stakeholders were asked to define their geographic footprint, and their “community network” and select a “Host Entity.”

The “Host Entity” leads the local collaborations and partnerships. These RPN CNs are a collaboration among local leaders, residents, civic and business organizations, nonprofits, service providers, development agencies, and others representing the diversity of the region’s population and perspectives. The RPN CN Host Entity and their stakeholders have defined their geographic footprint for their community network, which can be a single county – or can include multiple counties and towns in a geographically-distinct rural region. The official list of RPN CN is located on the Rural.gov website.

Small business is defined as a privately-owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than regular-sized business. The definition of “small”—in terms of being able to apply for government support and qualify for preferential tax policy—varies by country and industry. The U.S. Small Business Administration defines a small business according to a set of standards based on specific industries. See 13 CFR part 121.

Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.

Subrecipient means an entity, usually but not limited to non-Federal entities, that receives a subaward from a pass-through entity to carry out part of a Federal award but does not include an individual that is a beneficiary of such award. A subrecipient may also be a recipient of other Federal awards directly from a Federal awarding agency.

System for Award Management (SAM) is the Federal Repository into which an entity must provide information required for the conduct of business as a recipient. Registration with SAM is http://www.rural.gov https://www.ecfr.gov/current/title-13/chapter-I/part-121?toc=1 required for submission of applications via Grants.gov. You can access the website at https://www.sam.gov/SAM/. There is no cost to use SAM.

Threshold Requirements are eligibility requirements that must be met for an application to be reviewed, rated, and ranked. Threshold requirements are not curable, except for documentation of applicant eligibility, which are listed in Section III.D., Threshold Eligibility Requirements.

Similarly, there are eligibility requirements under Section III.E., Statutory and Regulatory Requirements Affecting Eligibility.

Underserved Communities has the meaning given to that term in Section 2(b) of Executive Order 13985 and refers to populations sharing a particular characteristic, as well as geographic communities, that have been systematically denied a full opportunity to participate in aspects of economic, social, and civic life, as exemplified by the list in the definition of “equity” above.

Unique Entity Identifier (UEI) means the identifier assigned by SAM to uniquely identify entities. As of April 4, 2022, the Federal government has transitioned from the use of the DUNS Number to the use of UEI, as the primary means of entity identification for Federal awards government-wide.

b. Program Definitions.

For purposes of the Choice Neighborhoods program, the following definitions of key terms apply. As needed, other definitions relevant to specific thresholds and rating factors will be provided in those sections of the NOFO.

Affordable Housing. The term “affordable housing” means, in the context of a Choice Neighborhoods Transformation Plan, housing funded by a Choice Neighborhoods Implementation grant for which the owner of the project/unit has recorded a HUD-approved affordability use restriction for occupancy by households earning up to 120 percent of Area Median Income (AMI) for no fewer than 20 years. Such housing is not considered replacement housing for the purposes of the one-for-one replacement requirement.

Anchor Institution. Anchor institutions are place-based entities with regional significance and are permanently-rooted economic or cultural drivers in specific locales that generate jobs, create local business opportunities, and contribute significantly to the development of human, social, and cultural capital. They include universities, hospitals, sports facilities, performing arts centers, and other major cultural facilities (such as museums and central libraries), and large corporations.

Assisted Housing. In this NOFO, the term “assisted housing” (used interchangeably with “HUD-Assisted Housing”) means housing assisted under a Housing Assistance Payment (HAP) contract pursuant to section 8 of the U.S. Housing Act of 1937 (1937 Act) (42 U.S.C. 1437f and 42 U.S.C. 1437g) (excluding tenant-based vouchers and developments where fewer than 50 percent of the units in a housing development receive project-based voucher assistance), section 221(d)(3) or section 236 of the National Housing Act (12 U.S.C. 1715l and 12 U.S.C. 1715z-1), or the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA), 25 U.S.C. 4101, et seq. (Indian Housing). In the case of Indian Housing, this includes single family, duplex, and multifamily rental housing in which at least 50 percent of the units are assisted and located within the defined Target Housing neighborhood.

https://www.sam.gov/SAM/ https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government

Co-Applicant. Co-Applicant means an entity with which the Lead Applicant chooses to apply for funding under this NOFO. A Co-Applicant must also be an Eligible Applicant. The Co- Applicant will also sign the Choice Neighborhoods Grant Agreement and be responsible for implementing the activities identified in the Transformation Plan, but will not directly receive access to funding through HUD’s Line of Credit Control System (LOCCS). A Co-Applicant is not required.

Early Action Activity. The term “Early Action Activity” refers to limited, physical neighborhood improvements undertaken during the planning process to support the planning process through engaging the community, building capacity, fostering social cohesion, or otherwise reinforcing the planning process. An Early Action Activity must also be responsive to the neighborhood's needs and must be used for physical community development or economic development projects that enhance and accelerate the transformation of the neighborhood. A grantee may use up to $150,000 of grant funds for an Early Action Activity project. These funds must not be used for non-physical uses, such as supportive services, administrative costs, and marketing. These funds cannot be used for basic infrastructure or as a substitute for basic municipal services. Additionally, funds cannot be used for housing development activities (including the public or HUD-assisted housing targeted in this application), such as acquisition, relocation, demolition and remediation, rehabilitation, or construction. These funds should be used for innovative solutions to neighborhood challenges and must be used for projects that can be completed during the grant term. Uses of funds are limited to:

a. Reclaiming and recycling vacant property into community gardens, pocket parks, or farmers markets;

b. Beautification, placemaking, and community arts projects, such as creative signage to enhance neighborhood branding, murals and sculptures, specialty streetscaping, or garden tool loan programs;

c. Owner-occupied home or business façade improvement programs;

d. Fresh food initiatives, such as farmers markets and mobile fresh food vendors; and

e. Gap financing for economic development projects that are ready to implement and have secured all the necessary funding except for a modest gap.

Families, Family. The term “families” has the meaning provided in section 3(b)(3)(B) of the 1937 Act (42 U.S.C. 1437a). In the case of Tribal Entities, the term "family" has the meaning provided in section 4(6) of NAHASDA, 25 U.S.C. 4103(6).

Lead Applicant. Lead Applicant means the primary entity responsible for implementing the activities identified in the application. The Lead Applicant must meet the qualifications of an Eligible Applicant. The Lead Applicant will sign the Grant Agreement and is the sole entity that will have access to HUD’s Line of Credit Control System (LOCCS) to draw down Choice Neighborhoods funding.

Local Government. The term “local government” shall have the same meaning as “unit of general local government” in section 102(a)(1) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302): The term “unit of general local government” means any city, county, town, township, parish, village, or other general purpose political subdivision of a State; Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa, or a general purpose political subdivision thereof; a combination of such political subdivisions that, except as provided in section 5306(d)(4) of this title, is recognized by the Secretary; the District of Columbia.

Neighborhood. The neighborhood is the geographic area within which the activities of the Transformation Plan shall take place. HUD understands neighborhood boundaries are not fixed like municipal or county boundaries. The Department also recognizes neighborhoods do not necessarily follow statistical boundaries, such as census tracts. For Choice Neighborhoods, HUD will rely on applicants to identify generally accepted boundaries for the target neighborhood. In many communities, typical neighborhood boundaries are delineated by major streets or physical topography. The neighborhood must be larger than just the footprint of the distressed public or HUD-assisted housing targeted in the application and should incorporate nearby places where residents may shop, receive services, work, and interact. The neighborhood cannot encompass more than one municipal jurisdiction and is typically an area less than two miles wide.

Neighborhood Assets. Neighborhood assets include the following main categories:

a. Developmental assets that allow residents to attain the skills needed to be successful in all aspects of daily life (e.g., educational institutions, early learning centers, and health resources);

b. Commercial assets that are associated with production, employment, transactions, and sales (e.g., labor force and retail establishments);

c. Recreational assets that create value in a neighborhood beyond work and education (e.g., parks, open space, community gardens, athletics and arts organizations);

d. Physical assets that are associated with the built environment and physical infrastructure (e.g., housing, commercial buildings, streets, and sidewalks); and

e. Social assets that establish well-functioning social interactions (e.g., public safety and community engagement).

Nonprofit Organization. Nonprofits eligible to be an applicant under this NOFO are entities classified as such in accordance with section 501(c) of the Internal Revenue Code or have been designated as such by their state government. A nonprofit organization can be organized for the following purposes: charitable, religious, educational, scientific, or other similar purposes in the public interest. To obtain tax-exempt status, qualified organizations must file an application with the Internal Revenue Service (IRS) and receive designation as such by the IRS. For more information, go to www.irs.gov. Entities in the process of applying for tax-exempt status, but have not yet received nonprofit designation from the IRS by the application deadline date, will not be considered an eligible applicant. All nonprofit applicants must submit either their IRS determination letter to prove their 501(c) status or the letter from the state government to prove their nonprofit status.

Planning Coordinator. A Planning Coordinator is a person or entity separate from the Lead Applicant or Co-Applicant procured to help the grantee coordinate the planning process. The Planning Coordinator should have significant experience in leading comprehensive neighborhood planning processes that lead to implementation activities and improved outcomes as well as building the capacity of local entities. Examples of Planning Coordinators include but are not limited to community-based organizations, redevelopment authorities, and private or non-profit planning firms. The Planning Coordinator is not only a local partner/stakeholder, but also a single person/entity selected to assist the grantee in carrying out the grant activities and in increasing grantee capacity to carry out the grant activities. Having a Planning Coordinator is optional.

Public Housing Agency. The term “public housing agency” has the meaning provided in section 3(b)(6) of the 1937 Act (42 U.S.C. 1437a).

Public Housing. The term “public housing” refers to housing that receives funding under an Annual Contributions Contract (ACC) and in accordance with section 9 of the 1937 Act. A public housing project is a group of such housing units that has a single Project Number assigned by the Director of Public Housing of a HUD Field Office and has, or had (in the case of previously demolished units), housing units under an ACC and in accordance with section 9 of the 1937 Act. Applicants must be clear throughout their application as to the project they are targeting.

Rental Assistance Demonstration (RAD). A HUD program that allows PHAs to convert public housing to project-based section 8 housing to facilitate additional debt and equity financing.

More information about the RAD program can be found at www.hud.gov/rad.

Replacement Housing. Replacement housing is rental housing that will replace demolished, disposed of, or otherwise reduced public or assisted housing. It must be assisted with funding under section 8 or 9 of the 1937 Act (42 U.S.C. 1437f and 42 U.S.C. 1437g). With regard to section 8 housing, project-based vouchers (section 8(o)(13) of the 1937 Act), and Project-Based Rental Assistance as provided in a RAD conversion are included in this definition, but tenant-based vouchers are excluded except as permitted by HUD. To satisfy the one-for-one replacement requirement through acquisition, the replacement unit must not have been receiving assistance prior to submitting the application under the sections listed above in this paragraph.

Severely Distressed Housing.

a. In accordance with section 24(j)(2) of the 1937 Act, the term means a public and/or assisted housing project (or building in a project) that:

(1) Requires major redesign, reconstruction, redevelopment, or partial or total demolition to correct serious deficiencies in the original design (including inappropriately high population density), deferred maintenance, physical deterioration or obsolescence of major systems, and other deficiencies in the physical plan of the project;

(2) Is a significant contributing factor to the physical decline of, and disinvestment by public and private entities in, the surrounding neighborhood;

(3) (a) is occupied predominantly by families who are very low-income families with children, have unemployed members, and are dependent on various forms of public assistance; (b) has high rates of vandalism and criminal activity (including drug-related criminal activity) in comparison to other housing in the area; or (c) is lacking in sufficient appropriate transportation, supportive services, economic opportunity, schools, civic and religious institutions, and public services, resulting in severe social distress in the project;

(4) Cannot be revitalized through assistance under other programs, such as the Capital Fund and Operating Fund programs for public housing under the 1937 Act, or the programs under sections 9 or 14 of the 1937 Act (as in effect before the effective date under section 503(a) of the http://www.hud.gov/rad

Quality Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, approved October 21, 1998)), because of cost constraints and inadequacy of available amounts; and

(5) In the case of an individual building that currently forms a portion of the public and/or assisted housing project targeted by the application to this NOFO: (a) Is sufficiently separable from the remainder of the project of which the building is part, such that the revitalization of the building is feasible; or (b) Was part of the targeted public and/or assisted housing project that has been legally vacated or demolished, but for which HUD has not yet provided replacement housing assistance (other than tenant-based assistance). “Replacement housing assistance” is defined as funds that have been furnished by HUD to perform major rehabilitation on, or reconstruction of, the public and/or assisted housing units that have been legally vacated or demolished.

b. A severely distressed project that has been legally vacated or demolished (but for which HUD has not yet provided replacement housing assistance, other than tenant-based assistance) must have met the definition of physical distress not later than the day the demolition application approval letter was dated by HUD, or in the case of Indian Housing, not later than the day the tribal entity signed the written notification of demolition provided to HUD in accordance with 24

CFR 1000.134.

Supportive Services. The term “supportive services” includes all activities that promote upward mobility, self-sufficiency, or improved quality of life, including such activities as literacy training, activities that promote early learning and the continuum of educational supports, remedial and continuing education, job training, financial literacy instruction, day care, youth services, aging-in-place, public transportation, physical and mental health services, economic development activities, and other programs for which the community demonstrates need.

Transformation Plan. The Transformation Plan is a comprehensive neighborhood revitalization strategy proposal which, when implemented, will achieve the three core goals of Choice Neighborhoods (Housing, People, Neighborhood).

Tribal Entities. This term means Indian tribes, as defined in section 4(13) of NAHASDA, and Tribally Designated Housing Entities, as defined in section 4(22) of NAHASDA.

B. Authority The funding authority for Choice Neighborhoods grants under this NOFO is provided by the Consolidated Appropriations Act, 2024 (Public Law 118-42, approved March 9, 2024) (FY 2024 Appropriations). The program authority for the Choice Neighborhoods Initiative is section 24 of the 1937 Act (42 U.S.C. 1437v), as applied by the FY 2024 Appropriations.

II. AWARD INFORMATION

A. Available Funds Funding of approximately $10,000,000 is available through this NOFO.

Additional funds may become available for award under this NOFO consistent with VI.A.2.e., Adjustments to Funding. Use of these funds is subject to statutory constraints. All awards are subject to the funding restrictions contained in this NOFO.

B. Number of Awards HUD expects to make approximately 20 awards from the funds available under this NOFO.

HUD may set aside one grant award for the highest scoring application that targets Indian housing.

C. Minimum/Maximum Award Information

Estimated Total Funding:

$10,000,000 Minimum Award Amount:

$1 Per Project Period

Maximum Award Amount:

$500,000 Per Project Period

D. Period of Performance

Estimated Project Start Date:

09/16/2024 Estimated Project End Date:

03/16/2027 Length of Project Periods:

Other

Length of Periods Explanation of Other:

The grant term is 30 months from the Grant Award date.

E. Type of Funding Instrument

Funding Instrument Type:

G (Grant)

III. ELIGIBILITY INFORMATION

A. Eligible Applicants 01 (County governments)

02 (City or township governments)

07 (Native American tribal governments (Federally recognized))

08 (Public housing authorities/Indian housing authorities)

12 (Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education)

25 (Others (see text field entitled "Additional Information on Eligibility" for clarification))

Additional Information on Eligibility Eligible applicants are Public Housing Agencies (PHAs), local governments, Tribal Entities, and nonprofits. Refer to the Program Definitions in Section I.A.4.b for how these terms are defined in the Choice Neighborhoods program.

Key Eligibility Criteria. There are three key eligibility criteria for Choice Neighborhoods…