CNPlng FINAL 11.23.15.pdf

U.S. Department of Housing and Urban Development

Public and Indian Housing

Choice Neighborhoods Planning Grants Program

FR-5900-N-14

H04396 Stamp

Choice Neighborhoods Planning Grants Program

FR-5900-N-14

TABLE OF CONTENTS

Funding Opportunity Description. I.

Award Information. II.

Eligibility Information.

Eligible Applicants. A.

Cost Sharing or Matching. B.

Other. C.

III.

Application and Submission Information.

Obtaining an Application Package. A.

Content and Form of Application Submission. B.

DUNS Number and SAM Registration. C.

Application Submission Dates and Times. D.

Intergovernmental Review. E.

Funding Restrictions. F.

Other Submission Requirements. G.

IV.

Application Review Information.

Criteria. A.

Review and Selection Process. B.

Anticipated Announcement and Award Dates. C.

V.

Award Administration Information.

Award Notices. A.

Administrative, National and Departmental Policy Requirements. B.

Reporting. C.

VI.

Agency Contact(s). VII.

Other Information. VIII.

Appendix. IX.

U.S. Department of Housing and Urban Development

Program Office: Public and Indian Housing Funding Opportunity Title: Choice Neighborhoods Planning Grants Program Announcement Type: Initial Funding Opportunity Number: FR-5900-N-14 Primary CFDA Number: 14.892 Due Date for Applications: 02/09/2016

SUMMARY:

Today’s publication provides information and instructions for the FY2015/2016 Choice Neighborhoods Planning Grants program. This Notice is comprised of both Notice of HUD’s Fiscal Year 2015 and 2016 Notice of Funding Availability (NOFA) Policy Requirements and General Section (General Section) to HUD’s FY2015 NOFAs for Discretionary Programs, published on October 10, 2014, and this program section of the NOFA. With this publication, HUD is introducing Planning and Action Grants, a new type of planning grant award, in addition to the two-year Planning Grants.

1. Planning Grants are two-year grants that assist communities with severely distressed public or HUD-assisted housing in developing a successful neighborhood transformation plan and building the support necessary for that plan to be successfully implemented.

2. Planning and Action Grants are three-year planning grants that demonstrate a commitment to “doing while planning.” Experience shows that tangible, early actions help communities build momentum for further planning and the eventual transition from planning to implementation of that plan. These actions improve neighborhood confidence, which in turn sustains the community’s energy, attracts more engagement and resources, and helps convince skeptical stakeholders that positive change is possible. Under these grants, the planning process activities would take place during the first 24 months of the grant period.

The planning process will identify Action Activities that will be carried out during the latter portion of the grant period. Action Activities, as defined in section I.A.3.f, are physical improvement, community development, and economic development projects that enhance and accelerate the transformation of the neighborhood. Activities are limited to: reclaiming and recycling vacant property; beautification, placemaking, and community arts projects; homeowner and business façade improvement programs;

neighborhood broadband/Wi-Fi; and gap financing for economic development projects. Action Activities must build upon the planning for the target housing and neighborhood.

HUD is making available approximately $10 million in assistance through the FY2015/FY2016 Choice Neighborhoods program for Planning Grants and Planning and Action Grants. Under this publication, eligible applicants will apply for Planning and Action Grants. The top scoring applicants will be awarded Planning and Action Grants, and the next set of highest scoring applicants will be awarded Planning Grants, based on funding availability.

FOR FURTHER INFORMATION CONTACT: Please direct questions regarding the specific program requirements of this Program Notice of Funding Availability (NOFA) to the agency contact identified in Section VII. Please direct questions regarding the FY 2015 General Section to the Office of Strategic Planning and Management, Grants Management Division, at (202) 708-0667 (this is not a toll-free number).

Persons with hearing or speech impairments may access these numbers via TTY by calling the Federal Relay Service at 1-800-877-8339.

Additional Overview Information

1. Incorporation of the General Section. HUD publishes a General Section each fiscal year that contains mandatory requirements for all applicants to HUD’s various competitive grant programs, including this NOFA. Applications must meet all of the requirements of the General Section in addition to the requirements of this NOFA to be considered and potentially receive funding. The full title of the General Section is the General Section to the Fiscal Year 2015 NOFAs for Discretionary Programs. Copies are available at Grants.gov or HUD's Funds Available page, http: //portal.hud.gov /hudportal /HUD?src= /program_offices /administration /grants /fundsavail.

2. OMB Approval Number(s): 2577-0269

I. Funding Opportunity Description.

A. Program Description.

1. Purpose.

Choice Neighborhoods Summary: Choice Neighborhoods is HUD’s signature place-based initiative in support of the President’s goal to build Ladders of Opportunity to the middle class. This vision builds on the work that has been done by the Neighborhood Revitalization Initiative (NRI), an interagency partnership between HUD and the Departments of Education, Health and Human Services, Justice, and the Treasury, since 2009. Through a variety of interventions, the Ladders of Opportunity initiative is helping community partners rebuild neighborhoods, expand early learning opportunities, create pathways to jobs, and strengthen families. This federal partnership supports locally driven solutions for transforming distressed neighborhoods using place-based strategies to address the interconnected challenges of poor quality housing, inadequate schools, poor health, high crime, and lack of capital.

Choice Neighborhoods is designed to address struggling neighborhoods with distressed public housing and/or HUD-assisted housing through a comprehensive approach to neighborhood transformation. Local leaders, residents, and stakeholders, such as public housing authorities, cities, schools, police, business owners, nonprofits, and private developers, come together to create a plan that transforms distressed HUD housing and addresses the challenges in the surrounding neighborhood. The program helps communities transform neighborhoods by revitalizing severely distressed public and/or assisted housing and investing and leveraging investments in well-functioning services, high quality public schools and education programs, high quality early learning programs and services, crime prevention strategies, public assets, public transportation, and improved access to jobs. Choice Neighborhoods ensures that current public and assisted housing residents will be able to benefit from this transformation, by preserving affordable housing or providing residents with the choice to move to affordable and accessible housing in another existing neighborhood of opportunity. Choice Neighborhoods is focused on three core goals:

1. Housing: Replace distressed public and assisted housing with high-quality mixed-income housing that is well-managed and responsive to the needs of the surrounding neighborhood;

2. People: Improve educational outcomes and intergenerational mobility for youth and supports delivered directly to youth and their families; and

3. Neighborhood: Create the conditions necessary for public and private reinvestment in distressed neighborhoods to offer the kinds of amenities and assets, including safety, good schools, and commercial activity, that are important to families’ choices about their community.

To achieve these core goals, successful applicants must develop and implement a comprehensive neighborhood revitalization strategy, or “Transformation Plan.” This Transformation Plan will become the guiding document for the revitalization of the public and/or assisted housing units, while simultaneously directing the transformation of the surrounding neighborhood and positive outcomes for families.

http://www.grants.gov http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail

Experience shows that to successfully develop and implement the Transformation Plan, broad civic engagement will be needed. Successful applicants will need to work with public and private agencies, organizations (including philanthropic and civic organizations), and individuals 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.

Experience also shows that tangible, early actions help communities build momentum for change and transition from planning to implementation of that plan. These actions improve neighborhood confidence.

The action, in turn, sustains the community’s energy, attracts more engagement, and helps convince skeptical stakeholders that positive change is possible.

HUD is working with other Federal agencies to align programs so that place-based solutions can be more readily implemented. This interagency collaboration will assist Choice Neighborhoods applicants in identifying strategies for building upon and leveraging high-quality housing, academic, family, and community programs and anticipated investments in neighborhood revitalization efforts funded by other Federal agencies. Examples of these efforts include the Department of Justice’s Byrne Criminal Justice Innovation program, the Department of Education’s Promise Neighborhoods program, the Department of Health and Human Services’ Community Health Center program, and the Building Neighborhood Capacity Program. HUD is also a core member of the Partnership for Sustainable Communities with the Department of Transportation and the Environmental Protection Agency, which supports communities that provide affordable housing, robust transportation choices, and greater economic competitiveness, by helping them to align federal investments in housing, transportation, economic development, infrastructure, and the environment. HUD’s Office of Recapitalization has also committed to providing flexibility for Choice Neighborhoods grantees that are concurrently seeking conversion under the Rental Assistance Demonstration and continues to explore ways to ensure these programs work together for communities.

Choice Neighborhoods, likewise, can complement local capacity building efforts that are facilitated by the Promise Zones or Strong Cities, Strong Communities initiatives. Through these programs, the Departments intend to create incentives for communities to focus on the same geographic area and apply for funding from more than one source. By focusing resources in targeted places, and by drawing on the compounding effect of well-coordinated actions, HUD believes Choice Neighborhoods will support local organizations building neighborhoods of opportunity.

Objectives and Metrics to Measure Long Term Success: Each Choice Neighborhoods grantee is expected to develop metrics based on the objectives listed below in order to measure performance. Applicants awarded Planning and Action Grants and Planning Grants are encouraged to develop neighborhood revitalization plans with these objectives in mind:

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

a. Energy Efficient, Sustainable, Accessible, Healthy, and Free from Discrimination. Housing that is well-designed, embraces not only the requirements of accessible design but also concepts of visitability and universal design, has low per unit energy consumption and healthy indoor air quality, is built to be resistant to local disaster risk, has affordable broadband Internet access, and is free from discrimination.

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

c. Well-Managed and Financially Viable. Developments that have budgeted appropriately for the rental income that can be generated from the project and meet or exceed industry standards for quality management and maintenance of the property.

2. People Objectives: People that live in the neighborhood, with a primary focus on residents of the housing targeted for revitalization, benefit from:

a. Effective Education. A high level of resident access to high quality early learning programs and services so children enter kindergarten ready to learn; significant improvement in the quality of schools nearest to the target development that prepare students to graduate from high school college- and career-ready; and significant growth in existing individual resident educational outcomes over time relative to the state average.

b. Employment Opportunities. The income of neighborhood residents and residents of the target housing development, particularly wage income for non-elderly/non-disabled adult residents, increases over time.

c. Quality Health Care. Health for residents over time is as good as or better than that of other households with similar economic and demographic conditions.

d. Housing Location, Quality, and Affordability. Residents 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.

3. Neighborhood Objectives: Through investments catalyzed with Choice Neighborhoods, the neighborhood enjoys improved:

a. Private and Public Investment in the Neighborhood. The neighboring housing has a very low vacancy/abandonment rate, the housing inventory is of high quality, and the neighborhood is mixed income and maintains a mixture of incomes over time.

b. Amenities. The distance traveled from the neighborhood to basic services is equal to or less than the distance traveled from the median neighborhood in the metropolitan area. Those basic services include grocery stores, banks, health clinics and doctors’ offices, dentist offices, and high quality early learning programs and services.

c. Effective Public Schools: Public schools in the target neighborhood are safe and welcoming places for children and their families. In addition, schools have test scores that are as good as or better than the state average or are implementing school reforms that raise student achievement over time and graduate students from high school prepared for college and a career.

d. Safety: Residents are living in a safer environment as evidenced by the revitalized neighborhood having dramatically lower crime rates than the neighborhood had prior to redevelopment and maintaining a lower crime rate over time.

2. Changes from Previous NOFA.

Action Activities – This NOFA introduces Action Activities that demonstrate a commitment to “doing while planning.” Experience shows that tangible, early actions help communities build momentum for further planning and transition from planning to implementation of that plan. These actions improve neighborhood confidence, which in turn sustains the community’s energy, attracts more engagement and resources, and helps convince skeptical stakeholders that positive change is possible. A few new rating factors have been included related to Action Activities.

Soundness of Approach – This NOFA incorporates rating factors for the proposed planning process in the Soundness of Approach section. This is a clearer structure than the previous NOFA, which included a Plan section.

Capacity – This NOFA evaluates only the Applicant and Co-Applicant for the Capacity rating factors on Capacity to Lead the Planning Process and Resident and Community Engagement. Previously, the capacity of Planning Coordinators could be rated for these criteria. A new factor captures the capacity of additional planning partners.

3. Definitions.

a. Eligibility Requirements – Eligibility requirements are those requirements that must be met for an application to be eligible for funding. Deficiencies in meeting an eligibility requirement may be categorized as either curable or non-curable.

b. Threshold Requirement – Threshold requirements are a category of eligibility requirements. A threshold requirement is a requirement that must be met in order for an application to be reviewed. Threshold requirements are not curable.

Threshold requirements are listed in Section III.C.2. of both the 2015 General Section and in this Program

NOFA.

Applicants must ensure their application package addresses all threshold requirements. Please check your application carefully!

c. Deficiency – Deficiencies are not the same as errors. Errors are never curable except as permitted under Section IV.C.2. Deficiencies are items of missing or omitted information within a submitted application.

Deficiencies typically involve missing documents, information on a form, or some other type of unsatisfied information requirement (e.g., an unsigned form, unchecked box, etc.). Depending on specific criteria, deficiencies may be either curable or non-curable.

d. Curable Deficiency – A curable deficiency is a specific type of deficiency that applicants may correct with timely action. To be curable the deficiency must:

– Not be a threshold requirement;

– 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.

e. Non-Curable Deficiency – An applicant cannot correct a non-curable deficiency after the submission deadline. Non-curable deficiencies are deficiencies that if corrected would change an applicant’s score or rank versus other applicants. Non-curable deficiencies may result in an application being marked ineligible, or otherwise adversely affect an application’s score and final determination.

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

1. Action Activities. The term “Action Activities” refers to a portion of Planning and Action Grant funds (see “Use of Grant Funds” in section III.C.8) that must be used toward limited, physical neighborhood improvements during the three-year Planning and Action Grant period (or during an 18-month period for FY 2010 - 2014 Planning Grantees who receive Action Activities funding only).

Action Activity funds are flexible funds that must be responsive to the neighborhoods’ needs. They must be used for physical, community, or economic development projects that enhance and accelerate the transformation of the neighborhood. The projects funded may also build community capacity and social cohesion through the way in which the projects are designed, led, and implemented. Action Activities funds are for physical improvements, and must not be used for non-physical uses, such as supportive services, staffing, and marketing. These funds must also not be used for basic infrastructure or as a substitute for basic municipal services. Additionally, funds must not be used for redevelopment of the public or HUD-assisted housing targeted in this application, including acquisition, relocation, demolition and remediation, rehabilitation, or construction of the targeted housing. These funds should be used for innovative solutions to neighborhood challenges and must be used for projects that can be completed within the three-year time frame for Planning and Action Grants (or an 18 month time frame for FY 2010 - 2014 Planning Grantees who receive Action Activities funding only). Uses of funds are limited to:

a. Reclaiming and recycling vacant property into community gardens, pocket parks, farmers markets, or land banking (with maintenance);

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. Homeowner and business façade improvement programs;

d. Neighborhood broadband/Wi-Fi;

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

f. Gap financing for economic development projects.

If during the planning process, another use is identified, HUD has the discretion to consider whether that use is allowable based on the justification in accordance with the criteria listed in the opening paragraph of this definition.

2. Affordable Housing. The term “affordable housing” includes, in the context of a Choice Neighborhoods Transformation Plan, housing for which the owner or purchaser of the project has recorded a HUD-approved affordability use restriction for 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. 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 as rental or homeownership housing.

3. Anchor Institutions. Anchor institutions are place-based entities that have regional significance and are permanently rooted, economic drivers in specific locales generating jobs, creating local business opportunities, and contributing in significant ways to the development of human, social, and cultural capital. They include universities, hospitals, sports facilities, performing arts and other major cultural facilities (such as museums and central libraries), and large corporations.

4. Assisted Housing. In this NOFA, the term “assisted housing” (used interchangeably with “HUD-assisted housing”) means housing assisted under sections 8 or 9 of the United States Housing Act of 1937 (42 U.S.C. 1437f and 42 U.S.C. 1437g) (excluding tenant-based vouchers and 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. 1715 and 12 U.S.C. 1715z-1), section 202 of Housing Act of 1959 (12 U.S.C. 1701q), section 811 of the National Affordable Housing Act of 1990 (42 U.S.C. 8013), and the Native American Housing Assistance and Self-Determination Act of 1996, 25 U.S.C. § 4101, et seq (Indian Housing). In the case of Indian Housing, this includes only single family and duplex rental housing that is clustered in a development and/or multifamily rental housing projects in which at least 50 percent of the units are assisted.

5. Co-Applicant. Co-Applicant means any entity with which the Lead Applicant chooses to apply for funding under this NOFA. A Co-Applicant must also be an Eligible Applicant. The Co-Applicant will also sign the Planning Grant Agreement or Planning and Action 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.

6. Commitment to enter into a Housing Assistance Payments Contract (CHAP). Document provided to the PHA or owner for projects that have been selected during the Rental Assistance Demonstration (RAD) competition under the first component of the Demonstration that describes the terms under which HUD will enter into a HAP contract with the project owner.

7. Early Action Activities. The term “Early Action Activities” refers to up to $100,000 of Planning Grant funds and Planning and Action Grant funds (see “Eligible Activities” in section III.C.5.b) that may be used toward limited, physical neighborhood improvements during the first two years of the grant period. Early Action Activities are similar to Action Activities, but must be used during the first two-years and must support the planning process through engaging the community, building capacity, fostering social cohesion, or otherwise reinforcing the planning process. Like Action Activities, they must also be responsive to the neighborhoods’ needs and must be used for physical, community, or economic development projects that enhance and accelerate the transformation of the neighborhood.

economic development projects that enhance and accelerate the transformation of the neighborhood.

Early Action Activities funds are for physical improvements, and must not be used for non-physical uses, such as supportive services, staffing, and marketing. These funds must also not be used for basic infrastructure or as a substitute for basic municipal services. Additionally, funds must not be used for redevelopment of the public or HUD-assisted housing targeted in this application, including acquisition, relocation, demolition and remediation, rehabilitation, or construction of the targeted housing. These funds should be used for innovative solutions to neighborhood challenges and must be used for projects that can be completed within the first two years. Uses of funds are limited to:

a. Reclaiming and recycling vacant property into community gardens, pocket parks, farmers markets, or land banking (with maintenance);

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. Homeowner and business façade improvement programs;

d. Neighborhood broadband/Wi-Fi;

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

f. Gap financing for economic development projects.

8. Families. The term “families” has the meaning provided in section 3(B)(3) of the United States Housing Act of 1937 (42 U.S.C. 1437a). In the case of tribal entities, the term "family" has the meaning provided in section 4103 (6) of the Native American Housing Assistance and Self-Determination Act of 1996, 25 U.S.C.

9. 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) in order to drawdown Choice Neighborhoods funding.

10. Livability Principles. Livability principles are principles jointly adopted by HUD, EPA and DOT to support federal neighborhood and community development initiatives. The Livability Principles are as follows: provide more transportation choices; promote equitable, affordable housing; enhance economic competitiveness; support existing communities; coordinate and leverage federal policies and investment; and value communities and neighborhoods. For further information, see www.hud.gov/sustainability.

11. 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; and the Trust Territory of the Pacific Islands.

Such term also includes a State or a local public body or agency (as defined in section 4512 of this title), community association, or other entity, which is approved by the Secretary for the purpose of providing public facilities or services to a new community as part of a program meeting the eligibility standards of section 4513 of this title or title IV of the Housing and Urban Development Act of 1968.

12. Long-Term Viability. The term “long-term viability” refers to a community that has in place all five Neighborhood Assets sufficient to provide for resident well-being and community quality of life.

13. Low-performing School. The term low-performing school means, “schools receiving assistance through Title I that are in corrective action or restructuring in the State, as determined under section 1116 of the Elementary and Secondary Education Act (ESEA), and the secondary schools (both middle and high schools) in the State that are equally as low-achieving as these Title I schools and are eligible for, but do not receive, Title I funds.”

14. Neighborhood. The neighborhood is the geographic area within which the activities of the Transformation Plan shall focus. HUD understands that neighborhood boundaries are not fixed like municipal or county boundaries. The Department also recognizes that neighborhoods do not necessarily follow statistical boundaries, such as Census Tracts. For Choice Neighborhoods, HUD will rely on applicants to identify boundaries for the target neighborhood that are generally accepted as a neighborhood. In many communities, those 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, but cannot encompass more than one municipal jurisdiction and is typically an area less than two miles wide.

15. Neighborhood Assets. Neighborhood assets means:

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, and roads); and

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

16. Nonprofit Organization. Nonprofits eligible to be an applicant under this NOFA are entities that are 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 that are 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.

17. Part I Violent Crimes. Part I violent crimes shall have the same meaning used by the United States Department of Justice Bureau of Justice Statistics and the Uniform Crime Report. Aggravated assault, rape, murder, and robbery are classified as Part I violent crimes.

18. Persistently lowest-achieving school. The term persistently lowest-achieving school means, as determined by the State:

a. Any school receiving assistance through Title I that is in improvement, corrective action, or restructuring and that –

(1) Is among the lowest-achieving five percent of Title I schools in improvement, corrective action, or restructuring or the lowest-achieving five Title I schools in improvement, corrective action, or restructuring in the State, whichever number of schools is greater; or

(2) Is a high school that has had a graduation rate that is less than 60 percent over a number of years; and

b. Any secondary school that is eligible for, but does not receive, Title I funds that –

(1) Is among the lowest-achieving five percent of secondary schools or the lowest-achieving five secondary schools in the State that are eligible for, but do not receive, Title I funds, whichever number of schools is greater; or

(2) Is a high school that has had a graduation rate that is less than 60 percent over a number of years.

19. Physical Needs Assessment. A Physical Needs Assessment (PNA) should be prepared by an independent registered engineer or architect that conducts a physical inspection of at least 10 percent of the dwelling units and 50 percent of the non-dwelling space. Generally, it identifies all of the work needed to bring the housing project up to the applicable modernization and energy conservation standards. Typically, a PNA takes into account the life cycle replacement costs of all building systems for a period of 20 years, however, for purposes of the rating factors in this NOFA, HUD will only consider the costs of the current rehabilitation needs.

20. Planning Coordinator. A Planning Coordinator is a person or entity separate from the Lead Applicant or Co-Applicant selected 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 could 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.

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

22. Public Housing. The term “public housing” refers to housing funded under an Annual Contributions Contract and in accordance with section 9 of the US Housing Act of 1937. A public housing project is a group of 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 Annual Contributions Contract. If a PHA had two distinct projects, with different project numbers, under its original ACC, and those projects were combined into a single project number in the Inventory Management System (IMS)/Public Housing Information Center (PIC) for the purposes of implementing HUD’s project-based budgeting requirements using Asset Management Project (AMP) numbers, the applicant may use the original project number to identify the public housing project targeted by the application. Applicants must be clear throughout their application as to the project they are targeting.

23. RAD Conversion Commitment (RCC). Contract executed by HUD and the PHA or owner, following HUD approval of the submitted Financing Plan, that describes the terms and conditions of the conversion.

24. Replacement Housing. Replacement housing is rental housing that will replace demolished, disposed of, or otherwise reduced public or assisted housing. It includes housing assisted under section 8 and 9 of the United States Housing Act of 1937 (42 U.S.C. 1437f and 42 U.S.C. 1437g), section 202 of Housing Act of 1959 (12 U.S.C. 1701q), and section 811 of the National Affordable Housing Act of 1990 (42 U.S.C. 8013). With regard to section 8 housing, project-based vouchers (section 8o(13) of the US Housing Act of 1937) 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. For example, you cannot acquire a Section 202 funded property that is near the public or assisted housing site targeted in the application for the purposes of deeming that replacement housing.

25. 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 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 NOFA: (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 CFR1000.134.

26. Supportive Services. The term “supportive services” includes all activities that will 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.

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

28. Tribal Entities. Tribal entities include Indian tribes and Tribally Designated Housing Entities, as defined in sections 4(13) and 4(22), respectively, of the Native American Housing and Self-Determination Act of 1996.

B. Authority.

1. The funding authority for Choice Neighborhoods grants under this NOFA is provided by the Consolidated and Further Continuing Appropriations Act, 2015 (Public Law 113-235, approved December 16, 2014) (FY2015 Appropriations Act).

2. The program authority for the Choice Neighborhoods Initiative is Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v) (1937 Act), as amended by the FY2015 Appropriations Act.

II. Award Information.

A. Available Funds.

HUD is making available through this NOFA $10,000,000 for Choice Neighborhoods Planning Grants Program.

Additional funds may become available for award under this NOFA as a result of HUD's efforts to recapture unused funds, use carryover funds, or because of the availability of additional appropriated funds. Use of these funds will be subject to statutory constraints. All awards are subject to the applicable funding restrictions described in the General Section and to those contained in this NOFA.

This NOFA announces the availability of approximately $10 million in funds for Choice Neighborhoods grants. HUD anticipates awarding approximately 4 Planning and Action Grants not to exceed $2 million each, and approximately 4 Planning Grants not to exceed $500,000 each. If funds are appropriated by Congress, HUD may, at its discretion, use additional FY2016 Choice Neighborhoods funding to make additional awards under this NOFA.

B. Number of Awards.

HUD expects to make approximately 8 awards from the funds available under this NOFA.

HUD anticipates awarding approximately 4 Planning and Action Grants and approximately 4 Planning Grants.

C. Minimum/Maximum Award Information.

Under this publication, eligible applicants will apply for Planning and Action Grants. The top scoring applicants will be awarded Planning and Action Grants, and the next set of highest scoring applicants will be awarded Planning Grants, based on funding availability. Planning and Action Grant awards may be up to $2 million. Planning Grants awards may be up to $500,000.

Because this is the first time that Action Activities funds are offered, eligible applicants may also include FY 2010 - 2014 Planning Grantees. FY 2010 - 2014 Planning Grantees who meet eligibility requirements may apply for the Action Activities portion only of the Planning and Action Grant (up to $1.5 million), so long as a Choice Neighborhoods Implementation Grant has not been awarded for the housing or neighborhood targeted in this application.

Estimated Total Funding: $10,000,000 Minimum Award Amount: $0 Per Budget Period Maximum Award Amount: $2,000,000 Per Budget Period

Maximum Award Amount: $2,000,000 Per Budget Period

D. Period of Performance.

Estimated Project Start Date: 06/27/2016 Estimated Project End Date: 06/27/2016 Length of Project Period: Other Grantees must proceed in a timely manner, as indicated by the timeframes established in this NOFA and Grant Agreement. The term of the Planning and Action Grant is three years from the date of Grant Agreement execution (or 18 months for FY 2010 - 2014 Planning Grantees who receive Action Activities funding only). The term of a Planning Grant is two years from the date of Grant Agreement execution. HUD anticipates announcing awards under this NOFA approximately 5 months after the application due date.

E. Type of Funding Instrument.

Funding Instrument Type: Grant Grant

F. Supplementation.

Not Applicable

III. Eligibility Information.

A. Eligible Applicants.

Eligible applicants under the NOFA include:

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

Additional Information on Eligibility:

Eligible applicants are Public Housing Authorities (PHAs), local governments, tribal entities, and nonprofits.

See the Statutory and Regulatory Requirements in section III.C.1 for additional details and the definitions in section I.A.3.f for definitions of related terms.

HUD does not award grants to individuals. HUD will also not evaluate applications from ineligible applicants.

All applicants must have an active Data Universal Numbering System (DUNS) number (http://fedgov.dnb.com/webform) and have an active registration in the System for Award Management (SAM) (www.sam.gov) before submitting an application. Getting a DUNS number and completing SAM registration can take up to four weeks; therefore applicants should start this process or check their status early.

See also Section IV.B below for necessary content and form of the application.

B. Cost Sharing or Matching.

This Program requires an applicant to leverage resources through cost sharing or matching as described below.

Generally, federal sources are not allowed to be used as cost share or match unless otherwise permitted by a program’s authorizing statute.

HUD is required by section 24(c)(1)(A) of the 1937 Act (42 U.S.C. 1437v(c)(1)(A) to include the http://fedgov.dnb.com/webform http://www.sam.gov

HUD is required by section 24(c)(1)(A) of the 1937 Act (42 U.S.C. 1437v(c)(1)(A) to include the requirement for matching funds for all grants made under section 24, which includes Choice Neighborhoods.

By the end of the grant term, you are required to have matching funds in the amount of five percent of the grant amount in cash or in-kind donations. You may NOT include amounts from HOPE VI program funding, including HOPE VI Revitalization, HOPE VI Demolition, HOPE VI Neighborhood Networks, HOPE VI Main Street grants, Choice Neighborhoods Implementation, or Choice Neighborhoods Planning Grants. Refer to section VI.B.8 of the General Section for OMB Requirements that are applicable for matching requirements. This is considered an Additional Requirements to be Rated requirement under section III.C.4 and is included in the Choice Neighborhoods Application Certifications form.

Grantees will be required to show evidence that matching resources were actually received and used for their intended purposes through quarterly reports as the project proceeds. 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 any public or private entity for any contribution or commitment to the project or surrounding area that was part of the match amount.

C. Other.

All applicants must also refer to Section III of the General Section for information on HUD-wide eligibility requirements. These requirements may determine whether your application is reviewed or make your application ineligible for funding.

Program specific eligibility criteria for this competition includes:

1. Statutory and Regulatory Requirements.

All Lead Applicants and Co-Applicants and applications must meet all the statutory and regulatory requirements stated under this section in order to be rated and ranked. Applicants must demonstrate compliance with these requirements through the information provided in their application, unless instructed otherwise in this NOFA. HUD will screen for technical (not substantive) deficiencies and administer a cure period as described in section V.B.2.b. Applicants must review and follow documentation requirements provided in this section and the instructions on application organization, content and submission provided in section IV.B. Required forms, certifications and assurances must be included in the Choice Neighborhoods application and will be available at http://www.grants.gov .

a) Eligible Applicants. Eligible applicants are PHAs, local governments, tribal entities, and nonprofits.

You must identify which type of applicant you and your Co-Applicant (if any) are on the Key Eligibility Data form included in the attachments section of your application. Additionally, the following criteria must be met, as relevant, in order to comply with this requirement:

(1) Troubled status for PHAs. This applies to PHA applicants. If the PHA was designated as troubled by HUD pursuant to section 6(j)(2) of the 1937 Act on the most recently released Operational Troubled List, HUD will use documents and information available to it to determine whether you qualify as an eligible applicant. However, PHAs designated as troubled are strongly encouraged to consider partnering with another entity (such as a local government or a nonprofit) to serve as the lead applicant for purposes of the Choice Neighborhoods grant. In accordance with section 24(j) of the 1937 Act, a troubled PHA may still be eligible to apply if it:

(a) Is designated as troubled principally for reasons that will not affect its capacity to carry out a revitalization program;

(b) Is making substantial progress toward eliminating the deficiencies of the agency that resulted http://www.grants.gov in its troubled status;

(c) Has not been found to be in noncompliance with fair housing or other civil rights requirements; or

(d) Is otherwise determined by HUD to be capable of carrying out a revitalization program.

(2) Certification for Multifamily Assisted Property Owners. If the Lead Applicant or Co-Applicant is the owner of the assisted property that is the…