CN-Implementation-NOFO-Content_FR-6900-N-34.pdf

FR-6900-N-34

Applications are due by 11:59:59 PM Eastern Time on 03/09/2026.

Public and Indian Housing

U.S. Department of Housing and Urban Development

Choice Neighborhoods Implementation Grants for Fiscal Year 2025

Table Of Contents FR-6900-N-34 Page 2 of 84

I. BASIC INFORMATION

A. Summary

B. Agency Contact(s)

II. ELIGIBILITY

A. Eligible Applicants

B. Cost Sharing or Matching

III. PROGRAM DESCRIPTION

A. Purpose

B. Goals and Objectives

C. Authority

D. Unallowable Costs

E. Indirect Costs

F. Program History

G. Other Information

IV. APPLICATION CONTENTS AND FORMAT

A. Standard Forms, Assurances, and Certifications 23

B. Budget

C. Narratives and Other Attachments

D. Other Application Content

V. APPLICATION REVIEW INFORMATION

A. Threshold Review

B. Merit Review

C. Risk Review

D. Selection Process

E. Award Notices

VI. SUBMISSION REQUIREMENTS AND

DEADLINES

A. Deadlines

B. Submission Methods

C. Other Submissions

D. False Statements

VII. POST-AWARD REQUIREMENTS AND

ADMINISTRATION

A. Administrative, National and Departmental Policy

Requirements, and General Terms and Conditions

B. Environmental Requirements

C. Remedies for Noncompliance

D. Reporting

VIII. CONTACT AND SUPPORT

A. Agency Contact

B. Grants.gov

C. SAM.gov

D. Debriefing

E. Applicant Experience Survey

F. Other Online Resources

APPENDIX

Appendix I. Definitions

TABLE OF CONTENTS

Before You Begin FR-6900-N-34 Page 3 of 84

If you believe you are a good candidate for this funding opportunity, register in the appropriate systems now and review the application package. If you are already registered, make sure your registration is active and up-to-date.

SAM.gov Registration You must have an active and up-to-date account with SAM.gov, at the time of application and throughout the life of any award.

To register, go to SAM.gov Entity Registration and click Get Started. From the same page, you can also click on the Entity Registration Checklist for the information you will need to register.

It can take several weeks to register in SAM.gov, so please get started now if you are planning to apply. SAM.gov also provides each organization with a unique entity identifier (UEI). A valid UEI is required to apply for funding.

Grants.gov Registration You must have an active Grants.gov registration. This requires a Login.gov registration as well. See step-by-step instructions at the Grants .gov Quick Start Guide for Applicants. You must apply for funding using Grants.gov, unless HUD has approved your waiver request.

See Section VI.B. Submission Methods.

Find the Application Package Use the Grants Search at Grants.gov and search for opportunity number FR-6900-N-34 . The application package has all the online forms you need to apply. You also need to access the Download Instructions link and review the content before you apply.

If you have other technical difficulties using Grants.gov, access the Support Center on Grants.gov for assistance.

To get updates on changes to this notice of funding opportunity (NOFO), click Subscribe from the View Grant Opportunity page for this NOFO on Grants.gov.

Application Deadline Applications are due by 11:59:59 PM Eastern Time on 03/09/2026.

HUD Listserv If you are interested in email notices about upcoming funding opportunities, subscribe to HUD’s Funding Opportunities listserv.

Note: To help you find what you need, this NOFO uses internal links. In Adobe Reader, you can go back to where you were by pressing Alt + Left Arrow (Windows) or Command + Left Arrow (Mac) on your keyboard.

BEFORE YOU BEGIN

https://sam.gov/ https://sam.gov/content/entity-registration https://sam.gov/ https://sam.gov/ https://grants.gov/ https://login.gov https://www.grants.gov/quick-start-guide/applicants https://grants.gov/ https://grants.gov/ https://Grants.gov https://grants.gov/ https://grants.gov/ https://www.hud.gov/subscribe/signup?listname=HUD%20Funding%20Opportunities&list=HUD-FUNDING-OPPORTUNITIES-L https://www.hud.gov/subscribe/signup?listname=HUD%20Funding%20Opportunities&list=HUD-FUNDING-OPPORTUNITIES-L

I. Basic Information

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and Support

Appendix

I. BASIC INFORMATION

I. Basic Information

A. Summary

B. Agency Contact(s)

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

I. Basic Information FR-6900-N-34 Page 5 of 84

I. BASIC INFORMATION See Contact and Support section of this NOFO.

A. Summary Federal Agency Name:

United States Department of Housing and Urban Development (HUD) HUD Program Office:

Public and Indian Housing Announcement Type:

Initial Program Type:

Discretionary Paperwork Reduction Act Information:

2501-0044; 2577-0269 Due Date for Intergovernmental Review:

See Section VI.C.1.

1. NOFO Summary The Choice Neighborhoods program focuses on the revitalization of severely distressed public housing. Implementation Grants provide funding to support the redevelopment of the target housing project, supportive services for residents of the target housing project, and physical improvements in the surrounding neighborhood. Only local governments and public

Key Facts Opportunity Name:

Choice Neighborhoods Implementation Grants for Fiscal Year 2025 Opportunity Number:

FR-6900-N-34

Federal Assistance Listing:

14.889

Key Dates Application Due Date:

11:59:59 PM Eastern Time on:

03/09/2026 Anticipated Award Date:

08/31/2026 Estimated Performance Period Start Date:

08/31/2026 Estimated Performance Period End Date:

09/30/2034

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

I. Basic Information FR-6900-N-34 Page 6 of 84 housing agencies that previously received a Choice Neighborhoods Planning Grant are eligible to apply for an Implementation Grant under this NOFO.

2. Funding Details Type of Funding Instrument G (Grant)

Available Funds Funding of approximately $75,000,000 is available through this NOFO. Subject to appropriations, HUD reserves the right to award fiscal year 2026 funds based on this NOFO competition.

Additional funds may become available for award. Use of these funds is subject to statutory constraints. All awards are subject to the selection process contained in this NOFO.

To determine the most you can request with your application, you need to:

1) Calculate the development cost for housing activities outlined in your Transformation Plan.

2) Add funding for non-housing activities.

See Section IV.B for detailed instructions on how to do these calculations.

You may request either the calculated amount or $26,000,0000, whichever is less. HUD reserves the right to award a lower amount.

Make sure to use the FY 2025 Implementation Grant Sizing worksheet (HUD-53235) and include it with your application.

Number of Awards HUD expects to make approximately 4 awards from the funds available under this NOFO.

Length of Performance Period:

Other Length of Periods Explanation:

Per the FY 2025 Appropriations, the cancelation date for this funding is September 30, 2034.

B. Agency Contact(s) See Contact and Support section of this NOFO.

II. ELIGIBILITY

II. Eligibility

A. Eligible Applicants

B. Cost Sharing or Matching

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

II. Eligibility FR-6900-N-34 Page 8 of 84

II. ELIGIBILITY

You are invited to apply if your organization is an eligible entity type and meets the funding conditions included in the NOFO. HUD will review applications from eligible applicants using the criteria in Section V. of this NOFO.

A. Eligible Applicants

1. Eligible Entity Types:

01 (County governments) 02 (City or township governments) 08 (Public housing authorities/Indian housing authorities) Additional Information on Eligibility Individuals are ineligible applicants.

2. Restrictions

a. Statutory and Regulatory Requirements Affecting Eligibility You must comply with the current General Statutory and Regulatory Requirements Affecting Eligibility for HUD’s Competitive Programs. HUD will review your eligibility before issuing an award. As part of this review, HUD uses SAM.gov and Department of Treasury data.

b. Application Eligibility Your application is considered for funding if it satisfies the application review requirements in Section V. of this NOFO.

Key Eligibility Criteria. There are three main eligibility requirements for Choice Neighborhoods funding: you must be an eligible applicant entity; your application must target an eligible housing project; and your application must target housing in an eligible neighborhood.

1. Applicant Entity. Local government and public housing agencies (PHAs) must apply jointly. Either one can be the lead applicant.

a. Troubled Status for PHAs. Under section 24(j) of the 1937 Act, a “troubled” PHA might still be eligible to apply if:

(1) Its troubled status is mainly due to reasons that don't stop it from carrying out a revitalization program;

(2) It's making substantial progress in fixing its deficiencies that resulted in its troubled status;

(3) It hasn't been found to violate fair housing or civil rights laws; or

(4) HUD determines it can carry out a revitalization program.

If a PHA is on the most recent Operational Troubled List, HUD will use available documents and information to decide if that PHA is still eligible for funding. Troubled PHAs may also consult HUD's field office to discuss how the troubled designation affects their ability to manage a Choice Neighborhoods Implementation Grant.

https://www.hud.gov/sites/dfiles/OCHCO/documents/Eligibility-Requirements-Addendum-FY2025.pdf https://www.hud.gov/sites/dfiles/OCHCO/documents/Eligibility-Requirements-Addendum-FY2025.pdf https://sam.gov https://www.hud.gov/program_offices/cfo/gmomgmt/grantsinfo/fundingopps/EligibilityRequirements

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II. Eligibility FR-6900-N-34 Page 9 of 84

2. Target Housing. Each application must focus on the revitalization of at least one severely distressed public housing project.

a. To be eligible for a grant under this NOFO, the Target Housing project must have been part of a FY 2023 or earlier Choice Neighborhoods Planning Grant. Your application may focus on fewer projects/units than were included in the Target Housing in the Planning Grant.

But no additional housing projects/units may be included as the Target Housing for your application under this NOFO.

b. Severely distressed. The definition of “severely distressed housing” (from section 24(j)(2) of the 1937 Act) is included in the Appendix. HUD recognizes that the determination of severe physical distress was certified when the Choice Neighborhoods Planning Grant application was submitted. Thus, your application under this NOFO must include a letter from the PHA confirming that it has not done any rehabilitation work that would make the previous Certification of Severe Physical Distress invalid.

c. Prior Choice Neighborhoods Implementation Grants. The Target Housing of a previously funded Choice Neighborhoods Implementation Grant may not be the Target Housing of a subsequent Implementation Grant application.

3. Target Neighborhood. Each application must focus on one neighborhood. The Target Neighborhood for this grant must be the same neighborhood as funded by a FY 2023 or earlier Choice Neighborhoods Planning Grant. The Target Neighborhood boundary submitted with your application must match the neighborhood boundary for your CN Planning Grant as approved by HUD prior to publication of this NOFO. You must submit an updated report for the Target Neighborhood created with HUD's online Choice Neighborhoods Mapping Tool.

This report is not needed to establish eligibility, but is still used for HUD to assign points for certain rating factors.

B. Cost Sharing or Matching This Program requires cost sharing or matching, as described below.

Section 24(c)(1)(A) of the 1937 Act (42 U.S.C. 1437v(c)(1)(A)) establishes a matching requirement for Choice Neighborhoods grants. In addition, Section 24(c)(1)(B) of the 1937 Act states that if a grantee uses more than five percent of the grant amount for Supportive Services, it must provide matching funds in an amount equal to the amount used in excess of five percent. By the end of the CN grant term, grantees must secure and use at least five percent of the CN grant amount in cash or in-kind donations. Other section 24 funding CANNOT be considered match. Generally other federal sources are only allowed to count as cost share or match if permitted by a program's authorizing statute. Grantees must show evidence that matching resources were received and used for their intended purposes through quarterly reports. Sources of matching funds may be substituted after grant award, as long as the dollar requirement is met. Grantees must pursue and enforce any commitment (including commitments for services) obtained from an entity for any contribution or commitment to the project or surrounding area that was part of the match amount.

https://www.huduser.gov/portal/maps/CN/home.html https://www.ecfr.gov/current/title-2/part-200/section-200.1#p-200.1(Cost%20sharing%20or%20matching)

III. PROGRAM DESCRIPTION

III. Program Description

A. Purpose

B. Goals and Objectives

C. Authority

D. Unallowable Costs

E. Indirect Costs

F. Program History

G. Other Information

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

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Deadlines

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Administration

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III. Program Description FR-6900-N-34 Page 11 of 84

III. PROGRAM DESCRIPTION

A. Purpose The Choice Neighborhoods program aims to transform severely distressed public housing and the surrounding areas. Local governments, public housing agencies, residents, and other partners (like schools, police, business owners, nonprofits, and private developers) work together to create and carry out neighborhood plans to accomplish these goals. These plans improve public housing, help residents become self-sufficient, and revitalize the neighborhood. Choice Neighborhoods uses public and private money to support local plans for struggling neighborhoods. The program has three main goals:

1. Housing: Redevelop severely distressed public housing into good quality, mixed-income housing that meets residents' needs and helps revitalize the community.

2. People: Help residents in the Target Housing improve their lives through upward mobility, employment, and self-sufficiency.

3. Neighborhood: Revitalize distressed neighborhoods by attracting long-term reinvestment from private and other public sources, leading to economic development, better amenities, services, and job opportunities for residents.

HUD offers two types of Choice Neighborhoods grants: Planning Grants and Implementation Grants. This specific funding opportunity is for Implementation Grants. Successful applicants will use these funds to carry out a comprehensive neighborhood revitalization strategy, or “Transformation Plan,” which they've already developed through a Planning Grant. (Planning Grants are awarded separately and help fund the creation of a Transformation Plan.)

B. Goals and Objectives Each Transformation Plan should address these objectives:

Housing Objectives: Transform severely distressed public housing:

1. Redevelop and Reposition Distressed Housing. Convert public housing projects to Section 8 properties and make them part of a mixed-income development with affordable units for all income levels.

2. High Quality. Housing is well-designed, well-built, connected to, and improves the surrounding neighborhood.

3. Financially Viable. Housing is built within budget and is able to support itself financially over the long term.

People Objectives: Promote upward mobility, employment and self-sufficiency, and improved quality of life for residents in the target housing, including:

1. Income and Employment. Resident employment and income increase, which supports economic stability and provides residents a path for moving out of subsidized housing.

2. Training and Education. Children and youth have access to services that improve

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III. Program Description FR-6900-N-34 Page 12 of 84 their education and prepare them for college or careers.

3. Maintaining Independence. Elderly people and people with disabilities have access to services that help them stay independent.

Neighborhood Objectives: Support long-term neighborhood revitalization:

1. Economic Opportunity. Neighborhood has or is connected to a variety of businesses and employers, offering good jobs and economic opportunities for residents.

2. Assets and Amenities. Neighborhood has amenities typically found in areas with more opportunities, such as grocery stores, retail goods and services, financial institutions, health facilities, parks, public transit, and high-quality educational opportunities.

3. Community Confidence. Neighborhood has a more positive public image with improved appearance and a strong sense of place.

4. Safety. Neighborhood has lower crime rates and residents feel safer.

C. Authority The funding authority for Choice Neighborhoods grants under this NOFO is provided by the Full-Year Continuing Appropriations and Extensions Act, 2025 (Public Law 119-4, approved March 15, 2025) (FY 2025 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 2025 Appropriations.

D. Unallowable Costs Ineligible activities include, but are not limited to:

a. Any activities carried out on or before the date of the letter announcing the award of the Choice Neighborhoods grant.

b. Gifts/prizes for participation incentives (e.g. gift cards provided to residents that complete a survey or needs assessment and meals provided at planning meetings).

c. Construction or rehabilitation of a K-12 school building or a higher educational institution.

E. Indirect Costs This program is subject to an OMB-approved deviation from the negotiated rate requirements. The deviation is as follows:

In accordance with section 24 of the 1937 Act, as amended, funding under this program may only be used for direct costs. Therefore, indirect costs are not permitted under this NOFO.

F. Program History Here are the major changes to this NOFO since the version published in FY 2023.

• Simpler NOFO format: to align with Appendix I of 2 CFR 200.

• Updated project eligibility: only public housing can be the Target Housing and must

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III. Program Description FR-6900-N-34 Page 13 of 84 have been the subject of a previously awarded Choice Neighborhoods Planning Grant.

• Reduced maximum grant award: maximum award reduced from $50 million to $26 million.

• The definition of “Replacement Housing” no longer includes public housing units.

• The amount of CN funding that can be allocated to Supportive Services is back to 15 percent and for Critical Community Improvements (CCIs) is now 10 percent.

• Streamlined application: deleted several rating factors and restructured other rating factors.

G. Other Information For Choice Neighborhoods Implementation Grants, the ultimate beneficiaries are the residents of the target neighborhood, including those living in the target housing development. Cities or other municipalities also benefit from the neighborhood plans that help revitalize low-income communities.

1. Eligible Activities - Choice Neighborhoods grants must be used for activities approved by HUD and be conducted in accordance with section 24 of the US Housing Act of 1937, as amended, by the Choice Neighborhoods Appropriations, and the requirements of this NOFO.

Eligible activities include:

(a) Costs related to the development of housing to be Replacement Units, Affordable Housing (as defined in this NOFO), or Homeownership Units, including demolition, construction, acquisition or rehabilitation, architectural and engineering fees, legal fees, and other related expenses.

(b) Providing supportive services for residents, primarily focused on case management, service coordination and assistance to enable residents to access programs from other key agencies and local service providers that will promote upward mobility, employment and self-sufficiency, and improved quality of life for households living in the target housing. Programs and services include those that will increase income and employment; improve education outcomes and ultimately prepare students to graduate from high school college- and/or career-ready; maintain independence for elderly persons and persons with disabilities; and remove impediments to these goals (such as those related to transportation, substance abuse and health, housing stability, and childcare).

(c) Relocation assistance, including tenant-based rental assistance renewable under section 8 of the United States Housing Act of 1937, and supportive services for families that are displaced, including mobility and relocation counseling over multiple years, reasonable moving costs, and security deposits.

(d) Critical Community Improvements, as defined in this NOFO.

(e) Supportive Services Endowment.

(f) Administrative costs of the applicant directly related to carrying out grant activities.

2. Program Requirements.

a. Right to Return for Tenants. Grantees must provide each tenant who occupies a unit at

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III. Program Description FR-6900-N-34 Page 14 of 84 the Target Housing under a valid lease or occupancy on the date of the grant award the opportunity to return to a replacement unit if the tenant was lease-compliant at the time of departure from the housing prior to relocation and remained lease-compliant during the relocation period. A returning tenant shall be provided the highest-level preference for occupancy of replacement units before such units are made available to any other households. Accordingly, the Housing Plan must provide an adequate number of replacement housing units that can be occupied by households with incomes up to 80 percent AMI (e.g., units that are not limited by another funding source such as LIHTC equity that has a lower income limit) and provides a sufficient number of bedrooms per unit and accessible units to ensure families are not displaced. The tenant also has the option not to occupy a replacement unit and may retain tenant-based voucher assistance provided under section 8(o) of the United States Housing Act of 1937 for relocation from the properties revitalized under this NOFO. These preferences are retained even if the resident has already received permanent relocation assistance. This preference remains available until the initial lease-up of the replacement units. If a household is “rightsized” (e.g., splits into two separate households) through the relocation resulting from Choice Neighborhoods, the original head of household will have the right to return. Once all the original heads of household have been housed, the Grantee is required to offer the second household any units that are available. If no units are available, then the second household will be moved to the top of the waiting list for the replacement units in this project. Both the original household and the second household are required to be lease-compliant at the time of relocation and throughout relocation.

b. One-for-One Replacement of Units. Each Transformation Plan that provides for public housing dwelling units to be demolished or disposed must provide as follows:

(1) Existing Units. For all public housing dwelling units still physically standing as of the application due date which will be demolished or disposed, the Transformation Plan must provide for replacement of the same number of units. The number of bedrooms replaced may be greater or fewer than those still physically standing, provided that the overall unit mix first meets the needs of the existing residents, then considers the needs of households on the waiting list and is aligned with the results of a recent housing market study.

(2) Types of Units. Replacement Housing is rental housing that will replace demolished, disposed of, or otherwise reduced public housing. Refer to the definition of Replacement Housing in Appendix II.

(a) Section 8 Project-Based Voucher Units by Other (PBV by Others). Section 8 project-based vouchers (PBV) developed by an entity other the Housing Implementation Entity and without Choice Neighborhoods funding (referred to as ‘PBV by Others’) can count as Replacement Housing if the PHA with jurisdiction over the geographic area where the project will be located has an established PBV program in accordance with 24 CFR Part 983. Units must be in mixed-income developments and, if located outside the target neighborhood, must satisfy the location requirements listed below. PBV by Others can only account for up to one-third of the Replacement Units. If an application qualifies for the exception that allows tenant-based vouchers to count as Replacement Housing and the plan proposes to exercise that option, the sum of tenant-based vouchers and PBV by Other cannot exceed one-half of the

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III. Program Description FR-6900-N-34 Page 15 of 84 replacement units. If awarded a grant, information will be provided to the Choice Neighborhoods office as projects are identified for review and approval to count as Replacement Units. In the event the proposed PBVs are not developed, the Lead Applicant and Housing Implementation Entity will still be responsible for meeting the one-for-one requirement.

(b) Tenant-based Vouchers as Replacement Housing. Tenant based vouchers can only count as Replacement Housing in housing markets where there is an adequate supply of affordable rental housing in areas of low poverty. As part of the Choice Neighborhoods mapping tool, HUD has included the counties that meet the standards in (i) Vacancy and (ii) Voucher Dispersion below. This information will be included in the pdf report sent via email after you draw the neighborhood’s boundary on the mapping tool that you must include as an attachment in your application. If the report indicates those criteria are met, then Choice Neighborhoods applicants working in an eligible community may submit a grant application based on qualifying for this exception.

(1) Criteria.

(i) Vacancy: Be located in a county/parish with a rental vacancy rate (as measured in the American Communities Survey (ACS)) that exceeds the HUD conventional range for a “balanced” rental market by a percentage point or more in accordance with the table below.

For example, in a market with slow population growth (population growth of one percent annually or less), HUD has determined that market to be “soft” or “loose” if rental vacancy rates in the county are greater than 5.9 percent.

Annual Population Growth Vacancy Rate of Loose Rental Market

Slow (<1%) >5.9%

Moderate (1-2.9%) >7.4%

Rapid (>3%) >9.0%

(ii) Voucher Dispersion: Be located in a Core Based Statistical Area (CBSA) or non-CBSA County where vouchers currently in use are primarily in lower poverty neighborhoods. Data from IMS/PIC shows the location of current housing choice voucher holders in the CBSA (or county/parish outside a CBSA). To qualify on this standard, the median neighborhood poverty rate or extremely low-income percentage for voucher holders in the CBSA (or county/parish outside a CBSA) must be 20 percent or less. In other words, at least 50 percent of all voucher holders in the CBSA must be in neighborhoods with a 20 percent poverty rate (or extremely low-income rate) or less. An applicant may also meet this requirement if the success rate of only the housing agency that will administer the replacement vouchers meets the criteria above.

(2) If eligible for this exception, the tenant based-vouchers can count for up to one-third of the Replacement Housing. Please note that this exception does not supersede an entity’s obligation to comply with other one-for-one replacement requirements associated with other program requirements/funding sources (e.g., the Rental Assistance Demonstration, Section

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104(d) of the Housing and Community Development Act, etc.).

(3) Location. Replacement Housing units developed by the Housing Implementation Entity must be located within the target neighborhood. The exception is that 'PBV by Others' (described below) may be located outside the target neighborhood if they meet the following criteria:

(a) Are located within the metropolitan area up to 20 miles from the target housing site;

(b) Offer access to economic opportunities and public transportation and be accessible to social, recreational, educational, commercial, health facilities and services, and other municipal services and facilities that are comparable to those that will be provided in the target neighborhood; and

(c) Meet the site and neighborhood standards listed in 24 CFR 983.55, or successor regulation.

c. Project Milestones. In order to ensure grant funds are expended prior to the expenditure deadline, grantees must proceed in a timely fashion. Early milestones that must be met include:

(1) Key Supportive Services programs and activities must be made available to residents within 120 days of grant award.

(2) An updated budget and program schedule must be submitted within 120 days after grant award.

(3) A copy of the executed development services agreement with the Housing Implementation Entity must be submitted within 120 days after grant award.

(4) A detailed/updated People Plan must be submitted within 12 months of grant award.

(5) A detailed/updated Neighborhood Plan must be submitted within 12 months of grant award.

(6) The financial closing for the first housing phase using grant funds must occur within 18 months of grant award, and the construction Notice to Proceed or equivalent must start within 90 days after the closing date.

d. Replacement Housing Development Activities.

(1) All Replacement Units must meet the definition provided in the Appendix. Such units must also be developed in mixed-income projects, with the exception of projects designated for seniors and/or residents with disabilities. For phases using grant funds, HUD will review the development proposal in accordance with the regulations at 24 CFR 905.606 and the Cost Controls and Safe Harbor Standards for Rental Mixed-Finance Development, dated April 2003, or subsequent guidance.

(2) Any RAD conversion must be done in accordance with the protocol for reviewing RAD/Choice Neighborhoods projects or subsequent guidance (available on the Choice Neighborhoods website at https://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ ph/cn/grants).

(3) For Replacement Units to be provided as PBV by Others, the PHA that administers the vouchers must comply with 24 CFR part 983. In addition, the Choice Neighborhoods office must review project information in advance of the AHAP or HAP contract to confirm the

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III. Program Description FR-6900-N-34 Page 17 of 84 project satisfies the CN program objectives (e.g., is in a mixed-income development and, if located outside the target neighborhood, meets the location requirements set forth in this

NOFO).

e. Affordable Housing Development Activities. Affordable Housing units (non-replacement rental units, as defined in the NOFO) developed with Choice Neighborhoods funds must be done in accordance with a proposal approved by HUD. Such units must be available to families earning up to 120 percent of AMI for at least 20 years. Affordable Housing units must be in the same building with replacement units, except for buildings with one to four units total. Further, Affordable Housing units cannot include other funding that has a lower income restriction (such as LIHTC equity). The affordability restrictions shall be contained in a legally enforceable document recorded in the appropriate recorder’s office or registry of deeds and consistent with the long-term viability of the project. HUD will review the development proposal in accordance with the regulations at 24 CFR 905.606 and the Cost Controls and Safe Harbor Standards for Rental Mixed-Finance Development, dated April 2003, or subsequent guidance.

f. Homeownership Development Activities. Homeownership units developed with Choice Neighborhoods funds must be developed in accordance with a homeownership proposal, which must be consistent with fair housing and civil rights requirements, approved by HUD.

Such units must be sold to families earning up to 120 percent of AMI and grantees shall commit to an affordability period of at least 20 years.

g. Acquisition.

(1) Acquisition Proposal. Site Acquisition Proposal. If a Grantee proposes to use Grant Funds to acquire vacant land (or land with existing dilapidated structures to be torn down prior to redevelopment) for the future development of new replacement housing units but is not yet prepared to submit a Development Proposal, the Grantee must submit a site acquisition proposal to HUD for review and approval prior to acquisition in accordance with 24 CFR

905.608. Once the Grantee finalizes its plan for development of the site, the Grantee must submit a Development Proposal to HUD for review and approval in accordance with 24 CFR 905.606.

(2) Land for Replacement Units outside the target neighborhood. For acquisition of land for replacement housing outside the target neighborhood, grantees must comply with 24 CFR part 905.602(d) (site and neighborhood standards).

(3) Land for Economic Development-Related Activities.

(a) Acquisition of land for this purpose is eligible only if the economic development-related activities specifically promote the economic self-sufficiency of residents.

(b) Limited infrastructure and site improvements associated with developing retail, commercial, or office facilities, such as rough grading and bringing utilities to (but not on) the site, are eligible activities with prior HUD approval.

(4) Acquisition of land for Federally funded projects is subject to the Uniform Relocation

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Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and its implementing regulations at 49 CFR part 24.

h. Building Codes and Design Standards. Housing units must meet all federal, local and state building regulations/codes and be built to market rate standards. HUD is seeking excellence in design. Applicants are encouraged to design projects that are compatible with and support revitalization of the surrounding neighborhood. Local architecture and design elements should be incorporated so the housing blends in with and enhances the physical character of the neighborhood. Amenities should be provided that address the needs of residents and support self-sufficiency. Housing units should be able to withstand severe weather events. Site and building designs must incorporate all federal accessibility requirements as referenced in Section VII of the NOFO and should seek to incorporate Universal Design concepts, such as livability and visitability.

i. People Plan and Supportive Services.

(1) Term Period. Supportive Services activities and case management must last for either the end of the grant term or when the last phase with replacement units is leased, whichever is sooner. Activities should be carefully planned so that they will last after the grant period ends. Outreach and basic supportive services, including household-level assets and needs assessments and service referrals for immediate needs, should start within 120 days of grant award.

(2) Allowed Funding Mechanisms:

(a) Maximum Supportive Services Amount. Consistent with sections 24(d)(1)(L) and 24(j)(3) of the 1937 Act, grantees may use up to 15 percent of the total Choice Neighborhoods grant to pay the costs of Supportive Services activities. Grantees may spend additional sums on Supportive Services activities using donations; other HUD funds made available for that purpose; and other federal, state, local, PHA, or private-sector donations (leverage). After award, successful applicants must provide a detailed plan, for HUD's review and approval, for how Choice Neighborhoods funds will be used in combination with other resources to increase income and employment; improve education outcomes and ultimately prepare students to graduate from high school college, attend college or start a career; and maintain independence for elderly persons and persons with disabilities.

(b) Supportive Services Endowment Trust. Each grantee may elect to establish an endowment with some Supportive Services funding under this grant. HUD will release funds into the Supportive Services Endowment Trust during the last year of the grant term or one year prior to lease up of the last housing phase with replacement units if the grantee demonstrates that it has made substantial progress on a subset of performance indicators. If the grantee has not met these performance indicators, then it may forfeit this portion of the total grant, unless otherwise approved by HUD. To establish an endowment trust, grantees must first execute with HUD an Endowment Trust addendum to the grant agreement.

Grantees must submit this addendum as part of an Endowment Trust proposal. When reviewing the Endowment Trust proposal, HUD will take into consideration the grantee's ability to pay for current supportive services activities with Choice Neighborhoods or other

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III. Program Description FR-6900-N-34 Page 19 of 84 funds and the projected long-term sustainability of the endowment trust to carry out those activities. If established, the endowment trust should be part of a broader sustainability plan and should consider the full scope of services, including leveraged services, that are needed to support effective strategies.

(3) Dedicated Project Manager. The People Implementation Entity must dedicate an experienced full-time project manager to oversee the People Plan implementation.

(4) Data Sharing. The Lead Applicant, People Implementation Entity, and current property management entity must develop a data sharing agreement among all parties to ensure resident data can be shared on an 'as needed' basis to achieve the goals of the People Plan.

At a minimum, the data sharing agreement should cover resident contact information, eviction risk status, safeguards to ensure data security, and other basic information to facilitate case management outreach and housing stability supports. Grantees are reminded that all medical and reasonable accommodation information shall be maintained, kept confidential, and disclosed consistent with the requirements of and the authorized purposes under Section 504 of the Rehabilitation Act and the Americans with Disabilities Act.

(5) People Plan. Grantees must submit a detailed People Plan within 12 months of grant award. After grant award, new household-level assets and needs assessments should be conducted with at least 65 percent of households living in the Target Housing prior to the development of the People Plan so that strategies are informed by the results. If the target housing was demolished five or more years ago, the grantee must explain and justify the target population for the proposed People Plan. HUD reserves the right to negotiate plan details and must approve the final plan.

(6) Case Management and Service Coordination. Case Management and supportive services must be available to all original residents living in the target housing at the date of grant award as well as to residents who move into the target housing prior to relocation. At the grantee’s discretion, case management and supportive services may also be extended to residents who occupy the Replacement Housing units. Case management and supportive services under this grant cannot be extended to residents who do not live in the housing specifically targeted for this grant. When households include multiple family members, case management services must be offered to the entire family. As part of case management, in-depth individual or family development plans must be created and updated at least once a year to identify needs, strengths, and goals of residents and to tailor supportive services coordination, programming, and referrals. To effectively serve residents, HUD recommends a case manager ratio of no more than 1:50 households. In addition to Case Management, Service Coordination must be provided to improve target residents’ access to high-quality services that meet their needs, as well as remove impediments, such as transportation, health, housing stability, and childcare.

(7) Income & Employment. Grantees, with their partners, must offer services to increase income and employment for working-age adults. Services must include: creating/coordinating a career pathway pipeline available to working-age adults, including career exploration, coaching, and training; developing direct connections to employers; and supporting residents in retaining new jobs for at least the first 90 days of their employment.

(8) Training & Education. Grantees, with their partners, must offer services to improve education outcomes and ultimately prepare students to graduate from high school ready for college- and/or a career. Services may include: supporting the attendance of children from

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III. Program Description FR-6900-N-34 Page 20 of 84 birth to kindergarten in high-quality early education programs, evidence-based programs for caregivers, developmental screening, and, if a delay is identified, early behavioral health services; supporting the attendance of school-aged children in high-quality, out-of-school time programs; providing wrap-around supports; securing school data sharing agreements and tracking student-level data consistent with the Family Educational Rights and Privacy Act (FERPA); and working with school staff to meet individual students’ needs.

(9) Maintaining Independence. Grantees, with their partners, must offer services to help elderly persons and persons with disabilities maintain their independence. Services may include connecting residents to: a regular place of healthcare, needed health and mental health services, and wrap-around supports to maintain independence.

j. Neighborhood Development Activities and Critical Community Improvements (CCIs).

(1) Neighborhood Investment. Grantees must implement a locally-driven Neighborhood Plan to improve the target neighborhood and attract public and private investment. Your Neighborhood Plan must be tailored to the opportunities and challenges within your neighborhood, while also addressing the program’s Neighborhood Objectives. The Neighborhood Plan should also reflect input from a broad set of partners, community residents, and target housing residents

(2) Critical Community Improvements.

(a) Purpose and Funding. CCIs are community and economic development projects funded by the Choice Neighborhoods grant. These activities must support the broader goals and strategies of your Neighborhood Plan. Grantees may use up to 10 percent of the Choice Neighborhoods grant to support CCI activities.

(b) Requirements. CCI funds can only be spent on physical improvements. CCI activities must be highly visible and strategically located (e.g. near replacement housing or on key commercial corridors). HUD expects CCI activities to leverage additional public and private dollars.

(c) Eligible Uses. CCIs must address at least one Neighborhood Objective of the Choice Neighborhoods program. Accordingly, possible uses of funds include:

• Economic Opportunity: Activities that attract or retain jobs within the neighborhood, such as development or rehabilitation of commercial and retail space; tenant build-out;

business façade improvement programs; or kitchen and food incubators.

• Community Assets and Amenities: Commercial and retail development; funding towards grocery stores, early childhood education centers, parks, or green space.

• Community Confidence: Enhanced corridor improvements; place-making and public art; homeowner façade improvement programs; redevelopment of vacant lots and buildings; blight elimination; or community gardens.

• Public Safety: HUD will consider physical public safety improvements on a case-by-case basis.

(d) Ineligible Uses. HUD will not fund the following activities: development of social services facilities (e.g., “one stop shops,” community centers, employment and/or training centers, citywide or regional social service facilities); providing programs, services, or operating funding; the commission of plans and studies; water and sewer line repair or infrastructure;

bike share stations, car/rideshare stations, and electric vehicle charging stations; standard

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III. Program Description FR-6900-N-34 Page 21 of 84 street, sidewalk and lighting installation or repair; landbanking; land acquisition not related to a CCI activity/future use. CCI funds cannot be used for infrastructure or substitute for basic municipal services.

(3) Neighborhood Plan. Successful applicants must submit an updated Neighborhood Plan to HUD describing each CCI activity and how it supports the broader neighborhood strategy within 12 months of grant award. At that time, HUD will review the proposed CCI activities and reserves the right to negotiate and/or disapprove CCI activities as the use of grant funds is subject to HUD approval.

k. Procurement criteria to assemble the Choice Neighborhoods Grant Application. All grantees must comply with applicable procurement regulations, including 2 CFR 200. If partners identified in this grant application submit an application in response to this NOFO (i.e., Principal Team Members) were not selected through a procurement process, then the grantee must take steps necessary to ensure compliance with the applicable procurement requirements for all expenditure of grant funds. The Housing Implementation Entity may be selected in accordance with 24 CFR 905.604(h).

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IV. APPLICATION CONTENTS AND FORMAT

Applications must include three main elements: a) standard forms, assurances, and certifications; b) budget; and c) narratives and other attachments. The content, forms, and format for each element are included in this section.

You may use this section as a checklist to ensure you submit a complete application.

If you don’t provide the required documents in the correct format, your application is incomplete.

Do not submit password protected or encrypted files.

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