Final Procedural Guidance for FY21 HOPWA PSH Renewal and Replacement Notice.pdf

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, DC 20410-7000

OFFICE OF COMMUNITY PLANNING

AND DEVELOPMENT

www.hud.gov espanol.hud.gov

Special Attention of:

All HOPWA Renewal Grantees

All CPD Field Office Directors and

Deputy Directors

Notice: 21-04 Issued: April 19, 2021

This Notice remains effective until amended, superseded, or rescinded.

Cross References: 24 CFR Part 574 – Housing Opportunities for Persons With

AIDS (HOPWA)

Subject: Procedural Guidance for Fiscal Year 2021 HOPWA Permanent Supportive Housing Renewal and Replacement Grant Applications

I. Purpose and Contact Information

II. Application Deadlines

III. Eligible Applicants

IV. Ineligible Applicants

V. Notification of Intent to Renew/ Replace

VI. Project Confirmation Worksheet

VII. Award Information

VIII. Renewal and Replacement Threshold Requirements

IX. Eligible Activities

X. Renewal and Replacement Grant Funding Restrictions

XI. Renewal and Replacement Application Forms and Certifications

XII. Renewal Grant Application Submission and Review Process

XIII. Replacement Grant Application Submission and Review Process

XIV. Program Implementation Expectations

XV. Information Collection http://www.hud.gov/

I. Purpose and Contact Information

This Housing Opportunities for Persons With AIDS (HOPWA) [CDFA # 14.241] Notice announces Renewal Grant Application and Replacement Grant Application requirements for eligible expiring HOPWA Permanent Supportive Housing (PSH) grants. Pursuant to the renewal authority provided by the Consolidated Appropriations Act, 2019 (Pub. L. 116-6), and the renewal or replacement authority provided by the Consolidated Appropriations Act, 2021 (Pub.

L. 116-260), the Department will renew or replace all eligible expiring HOPWA Permanent Supportive Housing (PSH) grants that meet all program requirements and were initially funded under a HUD competition for Fiscal Year (FY) 2010 or earlier FY funds.

The new option to replace an eligible expiring HOPWA PSH grant is made possible through new authority provided for the FY21 funding for HOPWA under the Consolidated Appropriations Act, 2021. For the purposes of this Notice, the application to renew an existing HOPWA PSH renewal grant will be referred to as the “Renewal Grant Application.” The application to replace the existing HOPWA PSH renewal activities with new grant activities will be referred to as the “Replacement Grant Application.” All eligible FY21 renewal applicants are eligible to submit a Replacement Grant Application. See Section XIII of this Notice for more information on the Replacement Grant Application process. However, to assure HUD will be in a position to renew the expiring grant if the application to replace it does not meet the scoring threshold for funding, each applicant interested in applying to replace their current PSH grant must submit both a Renewal Grant Application and a Replacement Grant Application. No Replacement Grant Applications will be reviewed without an accompanying Renewal Grant Application.

The Department will provide information about a webinar for applicants covering the information contained in this Notice. More information on the webinar will be communicated directly to eligible applicants with a submitted letter of intent to renew or replace (See Section V for more information on the letter of intent to renew or replace). If you have questions about the FY 2021 HOPWA Renewal Grant Application process or Replacement Grant Application process please email the HOPWA general inbox at HOPWA@hud.gov. Please note that HUD staff cannot assist applicants in preparing their applications.

II. Application Deadlines

Applications for FY2021 renewal and replacement grant funding must be received no later than 11:59:59PM ET on May 28, 2021. A list of grants potentially eligible for renewal or replacement is located in Table 1 of Section III of this Notice. See Section XIII of this Notice for more information on submitting a Replacement Grant Application. A Replacement Grant Application will not be considered complete without an accompanying Renewal Grant Application.

III. Eligible Applicants

Eligible applicants for FY2021 HOPWA Permanent Supportive Housing (PSH) renewal or replacement grant funding are HOPWA grantees with PSH grants expiring between June 1, 2021 and May 31, 2022. A list of grants potentially eligible for renewal or replacement in FY2021 is located in Table 1. Grantees with expiring grants must demonstrate that the remaining balance on the current HOPWA PSH grant would be insufficient to fund activities beyond May 31, 2022.

Table 1. Potentially Eligible Renewal or Replacement Applicants

IV. Ineligible Applicants

If a HOPWA PSH grant expires prior to June 1, 2021, the grant is not eligible for renewal or replacement under this Notice. If a PSH grant expires after May 31, 2022, renewal funding for that PSH grant, if available, will be addressed in a future HOPWA renewal Notice. If, during the renewal period, HUD determines that an applicant’s expiring grant holds a balance large enough to fund activities beyond May 31, 2022, the grant may be deemed ineligible for a renewal or replacement award under this Notice. These grantees may request a grant extension on their current grant in lieu of applying for a renewal or replacement grant and should plan to apply for a renewal grant under a future renewal Notice. Grant extensions are subject to HUD approval.

Grantee Name Grant No.

1 AIDS Foundation of Chicago IL-H180014

2 AIDS Resource Center of Wisconsin WI-H180008

3 Bailey House, Inc. NY-H180013

4 Bailey House, Inc. NY-H170026

5 Burlington Housing Authority VT-H180016

6 Calcutta House PA-H180006

7 Cass Community Social Services, Inc. MI-H180001

8 Chicago House & Social Service Agency, Inc. IL-H180015 9 City of Chicago Public Health Dept. IL-H180010

10 Community Healthlink, Inc. MA-H180005

11 Fenway Community Health Center, Inc. MA-H180021

12 Frannie Peabody Center ME-H180004

13 Frannie Peabody Center ME-H180022

14 Gregory House Programs HI-H180007

15 Interfaith Residence Dba Doorways (IL) IL-H180018

16 Interfaith Residence Dba Doorways (MO) MO-H180011

17 Lutheran Social Services of Northern California CA-H180012

18 Ministry of Caring, Inc. DE-H180020

19 New Jersey Department of Health NJ-H160024

20 Salvation Army Alegria CA-H180017 21 State of Alaska - Alaska Housing Finance Corporation AK-H180009 22 State of Montana - MT Department of Public Health &

Human Services

MT-H180003

23 State of New Hampshire NH-H180019 24 State of New Hampshire NH-H170020 25 State of Washington WA-H170032 26 Wyoming Department of Health WY-H180002

HOPWA competitive demonstrations and transitional projects are not eligible for renewal or replacement under this Notice. These projects include HOPWA grants that were funded as one-time nonrenewable awards and/or do not have a primary focus on permanent supportive housing-funded activities. To access current HOPWA grant opportunities outside of the FY2021 HOPWA PSH renewal or replacement grants, visit grants.gov.

V. Notification of Intent to Renew/ Replace

Eligible applicants interested in applying for an FY2021 HOPWA PSH renewal grant or replacement grant must notify the HUD Office of HIV/AIDS Housing with a letter of intent to apply for available funding under this notice. The letter of intent should:

Identify the intent to submit both a Renewal Grant Application and Replacement Grant Application, or only a Renewal Grant Application.

Include a projected expenditure of remaining funding on the expiring grant. The projection of expenditure should provide a monthly breakdown of projected expenditures by budget line item for the remaining period of the expiring grant. This monthly breakdown of projected funds should show that all remaining funds will be expended by the active grant’s expiration, which must be on or before May 31, 2022, to be eligible for an FY 2021 HOPWA PSH renewal or replacement grant.

If the projected expenditures show the rate of spending needed to fully expend the grant is dramatically different from the grantee’s current spending rate, a description of the measures taken to implement increased spending should accompany the expenditure projection. If the projected expenditures show that a grant extension is needed, applicants should work with their local field office to coordinate a grant extension. Grants requiring an extension past May 31, 2022 are not eligible to apply for a renewal grant or replacement grant under this Notice and will be expected to renew or replace their HOPWA PSH grant in a future renewal cycle, contingent on appropriations for funding future renewal or replacement awards.

The submitted projection of expenditure will be reviewed and confirmed by HUD staff with current financial information available. Grantees should ensure that the balances listed in HUD’s Integrated Disbursement and Information System (IDIS) are current and reflect timely expenditures for costs incurred.

The letter of intent must be submitted no later than 11:59:59 PM Eastern Time on April 23, 2021. The letter of intent must be signed by an authorized representative (executive director or equivalent) and submitted via email both to the Office of HIV/AIDS Housing at HUD Headquarters (HOPWA@hud.gov ) and to the applicant’s local HUD Field Office.

VI. Project Confirmation Worksheet

Applicants who submit a letter of intent will receive a Project Confirmation Worksheet (PCW) with a breakdown of Budget Line Item (BLI) amounts eligible for the renewal grant. The specific BLI amounts listed in the PCW only apply to the renewal grant. If an applicant intends to also submit a Replacement Grant Application, the total grant amount communicated in the PCW is the total grant amount for which the applicant is eligible to apply in their Replacement Grant http://www.grants.gov/ mailto:HOPWA@hud.gov

Application. All applicants must complete the PCW process, even if the applicant intends to submit a Replacement Grant Application as well as a Renewal Grant Application. The amounts in the PCW will include any reductions taken as described in Section VII of this Notice. For the renewal grant, the overall reduction will be reflected equally among the BLI amounts eligible for renewal with slight adjustments for rounding as needed to maintain statutory limits for administrative costs.

The Project Confirmation Worksheet (PCW) will provide the following: the project’s current approved BLI amounts, the eligible BLI amounts for the FY 2021 renewal grant (these amounts may be at reduced levels as outlined in Section VII of this Notice), current approved outputs by BLI as listed in the currently approved HUD-40110-B, and achieved outputs by BLI as reported in the APR. If an amendment was made to the active grant’s budget and it is not reflected in the amounts listed in the PCW, the applicant should notify the HOPWA contact who sent the PCW and a correction will be made. Applicants should complete the PCW by setting output goals by BLI for the renewal grant. The amounts listed will be the approved amounts for the renewal grant.

Applicants who complete the Project Confirmation Worksheet (PCW) process will receive a HUD-40110-B with the eligible renewal BLI funding amounts discussed during the PCW process included on the “Application Budget Summary” page. The HUD-40110-B provided by HUD after the PCW process is the HUD-40110-B that should be submitted in the Renewal Grant Application.

VII. Award Information

Applicants with unexpended amounts on their last three expired awards will receive a reduced amount of funding on their new award based on those unexpended amounts if those unexpended amounts have not previously been used to calculate reductions. Reductions will not be calculated if the applicant has less than three past expired awards that meet these criteria. These reductions are meant to more accurately reflect the funding amounts each grantee needs to administer grant activities based on past spending. Only grants that were directly administered by the current grantee will be taken into account for the reduction calculation, as the amounts current grantees previously expended are considered the amounts the current grantee needs to administer the grant activities.

The following two paragraphs are an example of how reductions will be calculated: if the eligible applicant is currently administering a FY 2018 grant, the applicant’s last three expired PSH renewal grants (in this example, from FY 2009, FY 2012, and FY 2015) will be used in the reduction calculation. The percentage of total unexpended funds from the total grant amount for the three expired awards will be used to reduce the potentially eligible award amount under the FY 2021 HOPWA PSH renewal and replacement cycle. All percentages will be listed to the hundredths decimal place. Table 2 shows an example of the last three expired grants with award amounts, and the funds unexpended in dollars for each awarded grant and as a percentage of the total for all three expired grants.

Table 2. Example Grant Reduction Chart

The reduction calculation for the example above represents the percentage of the sum of the funds unexpended under the three expired PSH renewal grants compared to the total awarded on the three expired PSH renewal grants for a total reduction on the FY 2021 PSH grant of 2.60% ($78,000/ $3,000,000 = 2.60%). Therefore, if the potentially eligible FY 2021 PSH grant award amount is $1,000,000, that amount would be reduced by 2.60% or $26,000 ($1,000,000 * .0260 = $26,000). With the reduction, this example applicant would be potentially eligible for a grant of $974,000 ($1,000,000 - $26,000 = $974,000) for the FY2021 HOPWA PSH grant process.

The potentially eligible grant amount, including the calculated reduction for each individual applicant, will be communicated through the PCW after the applicant has submitted its letter of intent. This potentially eligible grant amount applies to both the renewal grant and the replacement grant.

In order to coordinate actions for expiring grants based on need, the Department will renew expiring PSH grants that meet the requirements of this Notice and provide funding in the order of grant expiration dates based on funding availability. Further, HUD may announce PSH renewal and replacement awards on a rolling basis, if needed, to help ensure continued operations of expiring grants. Applicants selected for renewal or replacement are expected to expend the remaining balance of current funds on their approved schedule within their currently approved grant period.

HUD may redistribute incorrectly allocated costs to the correct line item. HUD reserves the right to decrease BLIs if it is determined that the number of persons/units actually assisted (housing outputs) is substantially less than the amount agreed upon in the current executed grant agreement.

VIII. Renewal and Replacement Threshold Requirements

Only applications that comply with the requirements in this Notice will be eligible for renewal or replacement funding. Below are the threshold requirements all applicants must meet to submit an eligible application for an FY 2021 renewal or replacement award.

A. System for Award Management (SAM) Applicants must be registered with https://www.sam.gov/SAM before submitting their application.

Applicants must maintain current information in SAM on immediate and highest-level owner and subsidiaries, as well as on all predecessors that have been awarded a Federal contract or grant within the last three years, if applicable. Information in SAM must be current for all times during which the applicant has an active Federal award or an application under consideration by HUD.

Expired grant Awarded Grant Amount

Grant Funds Unexpended

% of Funds Unexpended

FY2009 $1,000,000 $60,000

FY2012 $1,000,000 $3,000

FY2015 $1,000,000 $15,000

Sum $3,000,000 $78,000 2.60% https://www.sam.gov/SAM

Each applicant must provide its unique identifier in each application it submits to

HUD.

B. Permanent Supportive Housing Activities

Applicants must provide permanent supportive housing (PSH) as the primary grant activity under an expiring HOPWA grant and propose to continue providing PSH as the primary grant activity under an FY 2021 renewal or replacement award. HOPWA eligible activities are further defined in Section IX of this Notice. HUD will consider the primary grant activity to be PSH when at least 51 percent of grant funds provide PSH activities to eligible beneficiaries. PSH refers to activities that provide eligible beneficiaries with permanent housing and ongoing access to appropriate supportive services through qualified providers.

For the purposes of this Notice, “permanent housing” means housing in which the eligible person has a continuous legal right to remain in the unit established by a lease or legally binding occupancy agreement. The lease must be renewable after the first year of occupancy.

Additionally, the clients receiving permanent supportive housing assistance must also have ongoing access to appropriate supportive services provided through qualified service providers in the area. Applicants are reminded that participation in supportive services is not a prerequisite for clients to receive housing assistance nor an ongoing requirement for clients after housing assistance is established.

Tenant-based Rental Assistance (TBRA), Operating Costs, and Leasing for PSH units are primary permanent housing activities. Depending on the structure of the program and usage of leveraged funds, Short-Term Rent, Mortgage, and Utilities (STRMU) and Permanent Housing Placement (PHP) may contribute towards the percentage of grant funds providing PSH to eligible beneficiaries. HUD reserves the right to request additional justification from applicants requesting funding where BLI amounts do not clearly indicate PSH is the primary activity. If an applicant is proposing to continue some level of emergency shelter or transitional housing assistance, then the applicant must ensure that these activities will be carried out in connection with the provision of PSH and show that the PSH activity will be the primary activity carried out under a renewal or replacement grant.

C. Compliance with All Program Requirements The grantee and project under the expiring HOPWA PSH grant must be in compliance with the program requirements in 24 CFR part 574 and the grant agreement. The applicant must have a record of compliance with program requirements and satisfactory performance under the expiring HOPWA PSH grant, including:

History of submitting timely, accurate, and complete Annual Progress Reports (APRs) that demonstrate measurable progress in the implementation of the current grant award. Measurable progress is defined as meeting applicable program benchmarks including: Required HOPWA outputs for the actual number of households assisted, including the number who were homeless at program entry (if targeted to homeless and/or chronically homeless persons and their families), and persons at risk of homelessness and their families assisted, in comparison to the planned and approved number of households;

Required HOPWA outcomes, such as increasing the number of persons who maintain access to care and stable housing; and

Compliance with the terms and conditions of all existing HOPWA grant awards, including expending prior funding in a timely manner as outlined in the grant agreements with HUD, with no outstanding audit or unresolved monitoring findings that HUD considers significant.

An application for a renewal grant or replacement grant under this Notice will be denied if HUD determines the applicant does not meet all program requirements. Examples of poor performance or failure to meet program requirements that may disqualify a grant for renewal include:

Unresolved monitoring findings not addressed by the date of application that HUD considers to be significant;

Failure to resolve program noncompliance issues identified in a HUD notice of default on a current grant in a timely manner;

Documented misuse of HOPWA funding such as expending funds on ineligible activities and/or ineligible beneficiaries;

Delays in program implementation;

Failure to provide the level of housing and services committed to under the expiring grant agreement;

History of other major capacity issues that have significantly impacted the operation of the project and its performance;

Untimely filing, and inaccurate and/or incomplete submission of APRs that do not appropriately show client outcomes;

Significant citizen complaints about the grantee’s poor performance that have not been addressed with justified reasons and remain unresolved;

Outstanding obligation to HUD due to noncompliance that is in arrears, or for which a payment schedule has not been agreed upon;

Audit findings for which a response is overdue or unsatisfactory;

History of inadequate financial management accounting practices;

Other indicators of poor management, including an unwillingness to accept technical assistance or to implement identified program changes as a result of technical assistance;

Loss of project site; and Other HUD-identified noncompliance with HOPWA’s authorizing statute and regulations.

In addition to the items above, both the Renewal Grant Application and the Replacement Grant Application must be complete upon submittal in order to be considered for review and awarding.

Incomplete applications will not be considered for review.

HUD may also identify capacity concerns arising from application content submitted under this Notice that may impact eligibility or prevent the awarding of a renewal or replacement grant.

Applicants will be notified of identified concerns that may disqualify a grant from being renewed or replaced and will be given an opportunity to respond to any identified concerns prior to any determination of disqualification.

Applicants determined not to be eligible for renewal due to noncompliance should ensure maintained housing stability for program beneficiaries through leveraged or other resources.

IX. Eligible Activities

The standards for eligible activities are set forth in the HOPWA regulations at 24 CFR 574.300-

574.340. HOPWA program regulations can be accessed at: http://www.ecfr.gov/cgi-bin/text-idx?rgn=div5&node=24:3.1.1.3.7

The HOPWA Eligible Budget Line Items under this Notice for both the Renewal Grant Application and the Replacement Grant Application are listed and defined below. Renewal Grant Application awards will only be funded to continue the currently approved activities under the expiring grant. Replacement Grant Applications may request funding for eligible activities not previously funded in prior years’ renewal grants.

The use of both renewal and replacement grant funds will be subject to the central HOPWA PSH grant condition that at least 51 percent of the funds under the grant must be used to provide PSH activities to eligible beneficiaries, as described in section VIII.B.

A. Operating Costs Funding may be used for the grantee's or project sponsor's cost of operating a housing facility owned or leased by the grantee or project sponsor, to the extent the costs are necessary to house eligible persons. Eligible Operating Costs include utilities, property insurance, minor repairs and upkeep of the facility, maintenance both inside and outside the facility, procurement and contracting of services for facility operation or maintenance, furniture and appliances that will remain with the facility, food purchases and kitchen operation for HOPWA clients at the facility, and staff time for directing the operation of all activities at the facility for HOPWA clients.

B. Leasing

Funding may be used to lease all or a portion of a building as needed to provide housing to eligible persons. For eligible persons unable to hold leases in their names, funding may be used to master lease units, where the eligible persons choose the units, the grantee or project sponsor leases the units and pays the full rent to the landlord, and the eligible persons pay the grantee or project sponsor the amount required by 24 CFR 574.310(d). This type of master leasing can be administered as “turn-key” housing assistance, to be replaced with TBRA if the landlord agrees to transfer the lease to the eligible person. Funding may also be used to master lease units to be operated as transitional housing for eligible persons. For example, post-incarceration programs often lease a unit to temporarily house an eligible person returning to the community until other more permanent housing arrangements can be made.

The lease is always in the organization's name. The furniture, housing equipment, and supplies belong to the organization and remain in the unit for the next household’s use.

Eligible leasing costs include the cost to lease a housing facility or scattered site units, staff time to negotiate lease terms with lessor or landlord, and annual housing inspections to ensure HOPWA habitability standards are met for scattered-site units assisted with Leasing.

http://www.ecfr.gov/cgi-bin/text-idx?rgn=div5&node=24:3.1.1.3.7 http://www.ecfr.gov/cgi-bin/text-idx?rgn=div5&node=24:3.1.1.3.7

C. Tenant-Based Rental Assistance (TBRA) TBRA may be used to provide eligible persons with a rental subsidy through the duration of the grant period and should give them the opportunity to transition in place to self-sufficiency or another subsidy. Eligible TBRA costs include client income verification for TBRA assistance, calculation of resident rent payment, monthly rental payments, processing a TBRA rental payment on behalf of the program beneficiary, annual housing inspections to ensure HOPWA habitability standards are met for units being assisted with TBRA, reasonable travel costs to units for housing inspections, review of a program beneficiary’s selected unit for rent reasonableness and rent standard, annual recertifications for program beneficiaries receiving on-going TBRA, and staff time for resolving landlord issues directly related to providing the TBRA assistance.

D. Short-Term Rent, Mortgage, and Utility (STRMU)

STRMU may be used to prevent homelessness of the tenant or mortgagor of a dwelling. The goal of STRMU assistance under the HOPWA program is to provide short-term, stabilizing interventions to HOPWA eligible households experiencing a financial crisis as a result of their HIV/AIDS health condition or a change in their economic circumstances. The amount of STRMU assistance provided to a program beneficiary should be based on need, and not applied uniformly to all clients. Eligible STRMU costs include up to 21 weeks of the eligible person's rent, mortgage, and/or utility costs, and the costs of staff time to review and determine client’s need for STRMU assistance and make the STRMU payments. For the purposes of STRMU assistance, to the extent that taxes, insurance, condominium fees, or other building operation costs are included in the monthly mortgage payment either by federal regulation or the terms of the mortgage, these expenses are eligible to be included in STRMU mortgage assistance payments. STRMU mortgage assistance for taxes, insurance, or condo fees that are not included on the monthly mortgage statement are not eligible.

E. Housing Information Services

Housing Information Services may be used to provide counseling, information, or referral services to assist an eligible person to locate, acquire, finance, and maintain housing. Some eligible costs under Housing Information Services include staff time to assist clients in searching for or locating appropriate housing whether HOPWA-subsidized or not; staff time to provide fair housing guidance for eligible persons who may encounter discrimination on the basis of race, color, religion, sex, age, national origin, familial status, or disability; staff time to provide housing counseling to acquire and finance housing; and development and use of Homeless Management Information System (HMIS) elements to coordinate housing and services for eligible persons. HMIS costs billed to housing information services must be pro-rated and not include HMIS reporting. Use of HMIS for reporting purposes is considered an administration activity and must be billed to administrative costs.

F. Permanent Housing Placement Assistance (PHP)

Permanent housing placement assistance authorized at 24 CFR 574.300(b)(7) may be used in connection with the provision of housing support provided under these awards. Although

PHP is included as a supportive service under 24 CFR 574.300(b)(7), HUD has established a dedicated BLI for PHP to distinguish it from other supportive services.. Some eligible costs under PHP include security deposits not to exceed two months of rent, rental application fees, credit checks, one-time utility hook-up fees paid directly to the utility company, utility arrears only if the cost is creating a barrier to establishing permanent housing in a new unit, rent arrears only if past due rent debt at a prior unit is a barrier to accessing a new unit, initial housing inspections, reasonable travel costs to units for initial housing inspections, staff time to review and identify causes for eviction and responsibilities of the tenant within the lease, staff time for assisting clients with executing the lease, and staff time for resolving landlord issues directly related to the PHP assistance being provided. PHP can be used in conjunction with TBRA where PHP pays the security deposit and TBRA covers ongoing monthly rent payments starting with the first month. PHP must only be used to assist the client in entering permanent housing. PHP must never be used for monthly rent or on-going utility costs where a client is already in permanent housing.

G. Other HUD-Approved Activities

Other housing activities not already authorized at 24 CFR 574.300(b) may be proposed under a Replacement Grant Application but are subject to HUD’s approval. The proposal must address the expected beneficial impact of this alternative activity in addressing housing needs of eligible persons by describing the project impact and the identified performance output and client outcome measures for this activity. Examples of past approved Other HUD-approved Activities include rental assistance allowing clients to pay more or less than the required resident rent payment at 24 CFR 574.310(d), moving costs, and non-amortizing second mortgages to assist with homeownership. Funding restrictions for acquisition, new construction, or rehabilitation of housing facilities, and assistance through emergency shelters still apply. HUD will not approve Other Activities outside of the application submission process.

H. Supportive Services

Supportive Services funding may be used to provide access to mainstream resources and public benefits, improve access to healthcare, and provide other needed support to maintain stable housing and support positive health outcomes, subject to the supportive services requirements in 24 CFR part 574. Eligible supportive services costs include staff time to develop and process individual housing and service plans for clients; staff time to connect clients to appropriate services and treatment in accordance with their housing and service plans; staff time to review progress on the client’s housing and service plan, management-level consultation on client case issues; health and mental health assessment services; direct outpatient treatment by licensed professionals of mental health conditions; substance abuse treatment services designed to prevent, reduce, eliminate, or deter relapse of substance abuse or addictive behaviors provided by licensed or certified professionals; individual, family, or group therapy to address co-occurring disorders; nutritional services including food banks, nutritional supplements, and counseling on proper nutrition by certified nutrition specialists;

life skills trainings such as budgeting resources, managing money, managing a household, resolving conflict, shopping for food and needed items, improving nutrition, using public transportation, parenting, and cleaning and unit maintenance; credit counseling; education services including instruction or training in consumer education, health education, substance abuse prevention, literacy, English as a Second Language, and General Educational Development (GED); job training or job coaching including resume development; client transportation to and from medical care, employment, child care, or other eligible essential services facilities; and HOPWA provider transportation to meet with clients for supportive service needs.

I. Administrative Costs

HOPWA regulations (24 CFR 574.300(b)(10)) limit administrative costs to 3 percent of the award for grantees and, for project sponsors, 7 percent of the amounts received. HOPWA funds may be used for administrative costs as provided under 24 CFR 574, including costs of compiling data for and preparing the form HUD-40110-C Annual Performance Report (APR) at the end of each operating year.

As provided in 24 CFR 574.3, administrative costs do not include costs directly related to carrying out eligible activities, since those costs are eligible as part of the activity delivery costs of such activities. Accordingly, staff costs directly related to the delivery of housing assistance or supportive services activities are billable to the associated housing or supportive service budget line item. Staff costs should not be billed completely under administration or entirely to supportive services. If the staff is providing services directly related to another budget line item, then that staffing expense should be billed to that line item.

Applicants seeking PSH renewal grant award funding or replacement grant award funding must provide continuous forms of housing support over the grant operating period that establish or maintain stable permanent housing and reduce the risks of homelessness.

Research from The National Alliance to End Homelessness found that people of color experience homelessness at disproportionately high rates due to historic and ongoing systemic racism. Specifically, Black and Native American persons experience homelessness at disproportionately higher rates. Efforts to prevent and end homelessness must consider and address racial inequities to achieve positive outcomes for all persons experiencing homelessness (e.g., receiving necessary services and housing to exit homelessness). Applicants should consider the steps they will take to ensure that traditionally marginalized populations (such as racial and ethnic minorities and persons with disabilities and LGBTQ+ persons) have equitable access to housing programs and services.

In all cases, the program must maintain or enhance access to other needed services and benefits that are available through mainstream resources, including healthcare assistance, AIDS drug assistance under the Ryan White HIV/AIDS Treatment Extension Act of 2009, the Affordable Care Act, and/or other federal, state, local, and private resources. HOPWA grantees should coordinate with their local Continuum of Care coordinated entry process to ensure all housing options are available to potential clients in a homelessness status. HOPWA grantees must also ensure that the qualifying beneficiaries of HOPWA maintain access to available healthcare benefits and are able to fully participate in their healthcare plan. HOPWA grantees must promote adherence to prescribed HIV/AIDS medications in an effort to address the HIV Care Continuum outcomes of improved CD4 counts and optimally suppressed viral loads. More information on the HIV Care Continuum can be accessed at: https://www.hiv.gov/federal-response/policies-issues/hiv-aids-care-continuum.

X. Renewal and Replacement Grant Funding Restrictions

A. The following activities are not eligible to be funded with amounts awarded under this FY 2021 HOPWA PSH Renewal and Replacement Notice. These activities are not eligible for either the Renewal Grant Application or the Replacement Grant Application.

a. Capital Development. Acquisition, new construction, rehabilitation. If an applicant is interested in undertaking additional capital development activities, the applicant should consider competing for funding under a HUD NOFA competition, or utilizing leveraged resources to conduct these additional activities.

b. Resource Identification. Resource identification for the purposes of planning, coordinating, and integrating housing and services for program beneficiaries with other resources in the service area.

c. Health Services. Health services are not eligible to the extent that payment has been made, or can reasonably be expected to be made, with respect to that item or service under any state compensation program, under an insurance policy, or under any Federal or state health benefits program or by an entity that provides health services on a prepaid basis.

d. Incidental Moving Costs. Unless already approved by HUD in the initial grant application as an “other” activity budget line item, incidental moving costs, including van rentals, supplies, and moving equipment, are not eligible in a renewal award.

Incidental moving costs are not eligible under a replacement grant.

e. Real Property Taxes and Fees. Unless included in the mortgage payment, property taxes and condominium fees are not eligible.

f. Personal Items. Personal items including clothing; furniture and other household items (unless provided for as part of facility operations), including cookware and dishes; grooming; personal vehicle maintenance and repairs; cash assistance and consumer credit payments; entertainment or social activities; pets; and other non-housing-related costs or related services.

B. The following two restrictions only apply to Replacement Grant Application funding.

a. The total grant award for a replacement grant may not exceed the approvable amount for a grantee’s renewal award. The total eligible grant amount for the replacement grant will be communicated by the HUD Office of HIV/AIDS Housing to the applicant through the Project Confirmation Worksheet Process as described in Section VI of this Notice.

b. The Supportive Services line item for a Replacement Grant Application award is restricted to no more than 35% of the grant award.

https://www.hiv.gov/federal-response/policies-issues/hiv-aids-care-continuum https://www.hiv.gov/federal-response/policies-issues/hiv-aids-care-continuum

XI. Renewal and Replacement Application Forms and Certifications

Both the Renewal Grant Application and the Replacement Grant Application must include the following required forms and certifications to be considered complete.

1. Application for Federal Assistance (SF424) This is a required form for all Renewal Grant Applications and Replacement Grant Applications. The information below should be used as guidance when filling out the SF424s.

a. Box 1 – The type of submission is an application.

b. Box 2 – The type of application is new, for both renewal and replacement.

c. Box 3 – The date received is the date the application is submitted to HUD.

d. Box 8d – Enter the county or parish in which the organization’s address is located, where applicable. This box is not starred as a requirement, but HOPWA applicants should complete this box. The applicant should also submit the full 5 digits plus 4-digit zip/ postal code.

e. Box 8f – The person identified here should be the program contact who is working closely with the application. This person should not be the same as the authorized representative.

f. Box 11 – The Catalog of Federal Domestic Assistance Number is 14.241. The CFDA Title is “Housing Opportunities for Persons With AIDS”.

g. Box 12 – The funding opportunity number is the number of this Notice. The title is the subject title of this Notice, “Procedural Guidance for Fiscal Year 2021 HOPWA Permanent Supportive Housing Renewal and Replacement Grant Applications”.

h. Box 14 – Enter the cities and counties (or county-equivalents) covered in the renewal or replacement project’s service area. This box can only be completed as an attachment to the SF424 form.

i. Box 16a – The congressional district in which the applicant is located.

j. Box 16b – The congressional district(s) in which the applicant’s PSH program will operate.

k. Box 17 – The start date is a proposed start date and should be the day after the applicant’s current renewal grant expires. The end date is three years after the start date.

l. Box 18 – Enter the renewal or replacement grant amount in line a, “Federal.” Line g, “Total,” should be the same amount as line a. No other lines should be completed in this box.

m. Box 19 – The program is not covered by E.O. 12372 (Box C).

n. Authorized Representative – This is the person that can accept grant funding on behalf of the organization applying for renewal funding.

2. Assurances for Non-Construction Programs (SF-424B) This is a required form for all Renewal Grant Applications and Replacement Grant Applications. The authorized representative must sign and date this form and include the organization name.

3. Certification Regarding Lobbying (Appendix A of 24 CFR Part 87) This certification is required for all Renewal Grant Applications and Replacement Grant Applications. Applicants are subject to Section 319 of Public Law 101-121, 31 U.S.C.

1352 (The Byrd Amendment) and implementing regulations at 24 CFR Part 87, which prohibit recipients of Federal contracts, grants, or loans from using appropriated funds for lobbying the executive or legislative branches of the Federal Government for a specific contract, grant, or loan. Applicants must submit a certification by copying and pasting the language for Certification for Contracts, Grants, Loans, and Cooperative Agreements in Appendix A of 24 CFR Part 87 (available at: http://www.ecfr.gov/cgi-bin/text-idx?SID=4d8fd7235ff29815ce36c2b146e72d19&mc=true&node=pt24.1.87&rgn=div5#a p24.1.87_1605.a) into a document and having the authorized representative sign and date the certification.

In addition, applicants participating in lobbying activities must disclose, using Standard Form LLL (SFLLL), “Disclosure of Lobbying Activities,” any funds, other than federally appropriated funds, that will be or have been used to influence federal employees, members of congress, or congressional staff regarding specific grants or contracts.

4. HOPWA Budget (HUD-40110-B) This is a required form for both Renewal Grant Applications and Replacement Grant Applications. Eligible applicants submitting both a Renewal Grant Application and a Replacement Grant Application must submit a unique HUD-40110-B for each application. Applicants who submit a letter of intent will receive notification of the eligible total award amount for a renewal or replacement award and the specific BLI amounts eligible for the renewal award. The processes for submittal of form HUD- 40110-B for a Renewal Grant Application and a Replacement Grant Application are different and are further detailed in Section XII and Section XIII, respectively.

XII. Renewal Grant Application Submission and Review Process

HOPWA PSH renewal grants are not automatically renewed; HUD must evaluate whether each renewal applicant meets the Appropriations Act conditions to determine if the expiring HOPWA grant can be renewed. HUD expects grantees to fully expend all funds awarded under HOPWA renewal grants within the three-year period of performance. If a grantee is continually unable to fully expend its grant in the three-year period of performance, HUD will consider whether the grantee is meeting threshold requirements (Section VIII) to implement a renewal grant.

A. Renewal Grant Application Submission Format All FY2021 HOPWA PSH renewal grant applicants must submit their application by email to HOPWA@hud.gov. Applicants must send their full application as one document with a table of contents in the order below. Forms and certification requirements are further detailed in Section XI of this Notice. The starred forms are only required for certain grantees.

1. Application for Federal Assistance (SF424)

2. Assurances for Non-Construction Programs (SF-424B)

3. Certification Regarding Lobbying (Appendix A of 24 CFR Part 87)

4. Disclosure of Lobbying Activities (SFLLL)* http://www.ecfr.gov/cgi-bin/text-idx?SID=4d8fd7235ff29815ce36c2b146e72d19&mc=true&node=pt24.1.87&rgn=div5 http://www.ecfr.gov/cgi-bin/text-idx?SID=4d8fd7235ff29815ce36c2b146e72d19&mc=true&node=pt24.1.87&rgn=div5#ap24.1.87_1605.a http://www.ecfr.gov/cgi-bin/text-idx?SID=4d8fd7235ff29815ce36c2b146e72d19&mc=true&node=pt24.1.87&rgn=div5#ap24.1.87_1605.a http://www.ecfr.gov/cgi-bin/text-idx?SID=4d8fd7235ff29815ce36c2b146e72d19&mc=true&node=pt24.1.87&rgn=div5#ap24.1.87_1605.a

5. HOPWA Budget (HUD-40110-B)

6. Technical Assistance Narrative

7. Organizational Capacity Narrative*

B. Renewal Grant Application Narratives All Renewal Grant Applications are required to have a Technical Assistance Narrative. An Organizational Capacity Narrative is only required for applicants with changes to project sponsors under their regular renewal grant. Applicants should review the information provided for all narratives to ensure they are submitting the narratives required for a complete application.

1. Technical Assistance Narrative

This is a required narrative for all renewal applicants. Responses for the Technical Assistance Narrative are limited to two pages. Technical assistance refers to the transfer of skills and knowledge to entities that may need, but do not possess, such skills and knowledge. The assistance may include, but is not limited to, written information such as papers, manuals, guides, and brochures; person-to-person exchanges; web-based curriculums, training and webinars.

On January 20, 2021, President Biden issued an Executive Order titled “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government.” The Executive Order outlined the Administration’s policy that the Federal Government should pursue a comprehensive approach to advancing equity for all, including people of color and others who have been historically underserved, marginalized, and adversely affected by persistent poverty and inequality.

The term “equity” means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders and other persons of color;

members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality. Because advancing equity requires a systematic approach to embedding fairness in decision-making processes, HUD and HUD-funded organizations need to redress inequities in their policies and programs that serve as barriers to equal opportunity.

Applicants are strongly encouraged to begin the ongoing work of assessing whether, and to what extent, its programs and policies perpetuate systemic barriers to opportunities and benefits for people of color and other underserved groups. Such assessments will better equip agencies to develop policies and programs that deliver resources and benefits equitably to all. Applicants may have TA needs related to achieving/advancing racial equity in funded programs.

In the Technical Assistance Narrative, applicants should include a description of the technical assistance that HUD could provide that would contribute to the implementation of a more successful HOPWA program. Applicants may also want to include a description of any work/progress the organization has made to ensure racial equity in the services provided, and indicate TA needs related to achieving/advancing racial equity in funded programs.

2. Organizational Capacity Narrative Applicants should continue using currently approved project sponsors to implement renewal activities under their renewal award. However, if a project sponsor is added, a project sponsor is dropped from the renewal program design, or if a project sponsor’s legal status has changed, the applicant must provide an Organizational Capacity Narrative with the Renewal Grant Application.

For any change in project sponsors, applicants must provide justification of the change on no more than two pages with the following information:

Reason for the project sponsor change or adjustment to carry out renewal activities.

Evidence of the project sponsor’s organizational capacity to continue successfully implementing all renewal activities.

HUD will review the information provided in the Organizational Capacity Narrative to determine whether to accept changes in project sponsor arrangements. Potentially sufficient reasons for realigning or changing a project sponsor may include:

Alignment of project service delivery with sufficient levels of grants management skills or financial management and efficiency;

A desire to increase capacity or ensure continuing sustainability of project operations and adequate program service delivery;

Dissolution or change in business plan of the prior project sponsor, resulting in the loss of HOPWA service delivery component;

A need for significant improvement in project staffing competency;

A project default such as related unresolved monitoring or audit findings;

Merger of the project sponsor or transfer of project components to another entity; or A loss of non-profit status.

HUD reserves the right to reject a project involving a change in project sponsors where inadequate justification is provided, the new project sponsor capacity is limited, or there are serious concerns on the merits of this change.

For applicants with a new project sponsor added to the renewal request or an existing project sponsor who has experienced significant organizational change, additional information is required in the…