Foa_Content_of_FR-6500-N-34.pdf

U.S. Department of Housing and Urban Development

Public and Indian Housing

FY 2021 Choice Neighborhoods Implementation Grant Program

FR-6500-N-34

02/15/2022

Table of Contents Overview

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

B. Authority

II. Award Information

A. Available Funds

B. Number of Awards

C. Minimum/Maximum Award Information

D. Period of Performance

E. Type of Funding Instrument

III. Eligibility Information

A. Eligible Applicants

B. Ineligible Applicants

C. Cost Sharing or Matching

D. Threshold Eligibility Requirements

E. Statutory and Regulatory Requirements Affecting Eligibility

F. Program-Specific Requirements

G. Criteria for Beneficiaries

IV. Application and Submission Information

A. Obtaining an Application Package

B. Content and Form of Application Submission

C. System for Award Management (SAM) and Dun and Bradstreet Universal Numbering System (DUNS) Number

D. Application Submission Dates and Times

E. Intergovernmental Review

F. Funding Restrictions

G. Other Submission Requirements

V. Application Review Information

A. Review Criteria

B. Review and Selection Process

VI. Award Administration Information

A. Award Notices

B. Statutory and Administrative, National and Department Requirements for HUD Recipients

C. Reporting

D. Debriefing

VII. Agency Contact(s)

VIII. Other Information

APPENDIX

Program Office:

Public and Indian Housing Funding Opportunity Title:

FY 2021 Choice Neighborhoods Implementation Grant Program Funding Opportunity Number:

FR-6500-N-34

Primary CFDA Number:

14.889 Due Date for Applications:

02/15/2022 Overview The U.S. Department of Housing and Urban Development (HUD) issues this Notice of Funding Opportunity (NOFO) to invite applications from eligible applicants for the program and purpose described within this NOFO. Prospective applicants should carefully read all instructions in all sections to avoid sending an incomplete or ineligible application. HUD funding is highly competitive. Failure to respond accurately to any submission requirement could result in an incomplete or noncompetitive proposal.

During the selection process HUD is prohibited from disclosing 1) information regarding any applicant’s relative standing, 2) the amount of assistance requested by an applicant, and 3) any information contained in the application. Prior to the application deadline, HUD may not disclose the identity of any applicant or the number of applicants that have applied for assistance.

For Further Information Regarding this NOFO: Please direct questions regarding the specific requirements of this Notice of Funding Opportunity (NOFO) to the office contact identified in Section VII.

Paperwork Reduction Act Statement. The information collection requirements in this notice have been approved by OMB under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501- 3520). In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a valid OMB control number. Each NOFO will identify its applicable OMB control number unless its collection of information is excluded from these requirements under 5 CFR part 1320.

OMB Approval Number(s):

2577-0269

I. FUNDING OPPORTUNITY DESCRIPTION.

A. Program Description.

1. Purpose The Choice Neighborhoods program leverages significant public and private dollars to support locally driven strategies that address struggling neighborhoods with severely distressed public and/or HUD-assisted housing through a comprehensive approach to neighborhood transformation. Local leaders, residents, and other stakeholders, such as public housing authorities, cities, schools, police, business owners, nonprofits, and private developers, come together to create and implement a plan that revitalizes distressed HUD housing and addresses the challenges in the surrounding neighborhood. The program helps communities transform neighborhoods by redeveloping severely distressed public and/or HUD-assisted housing and catalyzing critical improvements in the neighborhood. To this end, Choice Neighborhoods is focused on three core goals:

1. Housing: Replace severely 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 outcomes of households living in the target housing related to income and employment, health, and education; and

3. Neighborhood: Create the conditions necessary for public and private investment 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 have in place a comprehensive neighborhood revitalization strategy, or “Transformation Plan.” This Transformation Plan is the guiding document for the revitalization of the public and/or assisted housing units, while simultaneously directing the transformation of the surrounding neighborhood and creating positive outcomes for families.

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

Objectives and Metrics to Measure Long Term Success: Each Choice Neighborhoods grantee is expected to develop performance metrics based on these objectives.

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

o 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.

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

o Energy Efficient, Climate Resistant, and Sustainable. Housing that is energy efficient, i.e. has low per unit energy and water consumption, is environmentally sensitive, and is built to be resistant to local disaster risk.

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

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

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

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

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

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

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

o 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.

o Amenities. Basic services are located in or nearby the neighborhood. Basic services include grocery stores, banks, health clinics and doctors’ offices, dentist offices, public transit, and high-quality early learning programs and services.

o 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/or a career.

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

2. Changes from Previous NOFO.

Highlights of significant changes:

The maximum award amount for applications with fewer than 250 units in the target housing project is now up to $40 million and up to $50 million for applications with 250 or more units, in accordance with the grant sizing methodology described in section IV.

With the increased award amount, timely progress will be even more important. As indicated in Project Milestones in section III.F.2.c, closing for the first housing phase using CN grant funds must occur within 15 months of grant award.

If an application proposes to provide replacement units through project-based vouchers (PBVs) developed by another entity (referred to as "PBVs by Other," as described in section III), such units may only be up to one-third of the units required.

For applications that qualify for the exception that allows tenant-based vouchers to count toward the replacement housing requirement, such units may only be up to one-third of the total number of replacement units required. If also proposing to include "PBVs by Other," the total number of tenant-based vouchers and PBVs by Other may not exceed 50 percent of the replacement units required.

The location requirements related to proposed replacement housing outside of the target neighborhood have been updated to better align other HUD programs, as described in section III. In addition, the CN Mapping Tool now includes a module with data required to demonstrate the proposed site meets the requirements.

Regarding relocation and mobility counseling, language has been added to the program requirements section (III.F.2.e) and a new rating factor is in the Housing Strategy section to ensure applicants (and subsequent grantees) are focused on relocation and mobility.

To highlight the program's alignment with Environmental Justice efforts, additional information has been added to the program requirements section (III.F.2.p) and the rating factors have been revised in the Need and Neighborhood Strategy sections (including a new rating factor related to Brownfields cleanup).

In the Neighborhood Strategy rating factors section, the 'CCI Plan' rating factor has been replaced by two rating factors: Economic Development and Neighborhood Improvement.

Revised language in some rating factors to improve clarity.

3. Definitions.

a. Standard Definitions

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

Assistance Listings means a unique number assigned to identify a Federal Assistance Listing, formerly known as the CFDA Number.

Federal Financial Assistance means assistance that entities received or administer in the form of:

1) Grant;

2. Cooperative agreements (which does not include a cooperative research and development agreement pursuant to the Federal Technology Transfer Act of 1986, as amended (15 U.S.C. 3710a));

3. Loans;

4. Loan guarantees;

5. Subsidies;

6. Insurance;

7. Food commodities;

8. Direct appropriations;

9. Assessed or voluntary contributions; or

10. Any other financial assistance transaction that authorizes the non-Federal entity's expenditure of Federal funds.

b. Federal Financial Assistancedoes not include:

1. Technical assistance, which provides services in lieu of money; and

2. A transfer of title to federally owned property provided in lieu of money, even if the award is called a grant.

Authorized Organization Representative (AOR) is the person authorized to submit applications on behalf of the organization via Grants.gov. The AOR is authorized by the E-Biz point of contact in the System for Award Management. The AOR is listed in item 21 on the SF- 424.

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

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

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

Deficiency is information missing or omitted within a submitted application. Examples of deficiencies include missing documents, information on a form, or some other type of unsatisfied information requirement (e.g., an unsigned form, unchecked box.). Depending on specific criteria, deficiencies may be either curable or non-curable.

Curable Deficiencies may be corrected by the applicant with timely action. To be curable the deficiency must:

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

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

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

Non-Curable Deficiencies cannot be corrected by an applicant 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.

DUNS Number is the nine-digit Dun and Bradstreet Data Universal Number

System identification number assigned to a business or organization by Dun & Bradstreet and provides a means of identifying business entities on a location-specific basis. OMB removed duplicate recipients based on recipient Data Universal Number System (DUNS) numbers, from Dun & Bradstreet (D&B). At this time all Federal financial assistance recipients are required to register for DUNS numbers.

E-Business Point of Contact (E-Biz POC) A user registered as an organization applicant who is responsible for the administration and management of grant activities for his or her organization.

The E-Biz POC is likely to be an organization's chief financial officer or authorizing official. The E-Biz POC authorizes representatives of their organization to apply on behalf of the organization (see Standard AOR and Expanded AOR). There can only be one E-Biz POC per DUNS Number.)

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

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

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

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

2. The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph

(2) of the definitions of Federal financial assistance in 2 CFR §200.1, or the cost-reimbursement contract awarded under the Federal Acquisition Regulations.

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

4. See also definitions of Federal financial assistance, grant agreement, and cooperative agreement.

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

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

Opportunity Zone (OZs) are defined in 26 U.S.C. 1400Z-1. In general, OZs are census tracts located in low-income communities where new investments, under certain conditions, may be eligible for preferential tax treatment.

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

Promise Zones (PZs) are high poverty communities where the federal government partners with local leaders to increase economic activity, improve educational opportunities, leverage private investment, reduce violent crime, enhance public health and address other priorities identified by the community.

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

Small business is defined as a privately-owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business.

The definition of "small"—in terms of being able to apply for government support and qualify for preferential tax policy—varies by country and industry. The U.S. Small Business Administration defines a small business according to a set of standards based on specific industries.{e-CFR Title 13-Chapter I – Part 121}

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

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

System for Award Management (SAM) means the Federal Repository into which an entity must provide information required for the conduct of business as a recipient. Registration with SAM is required for submission of applications via Grants.gov. You can access the website athttps://www.sam.gov/SAM/. There is no cost to use SAM.

Threshold Requirements are an eligibility requirement that must be met for an application to be reviewed. Threshold requirements are not curable, except for documentation of applicant eligibility and are listed in Section III.D Threshold Eligibility Requirements. Similarly, there are eligibility requirements under Section III.E, Statutory and Regulatory Requirements Affecting Eligibility.

Unique Entity Identifier means the identifier required for SAM registration to uniquely identify business entities.

4. Program Definitions https://www.ecfr.gov/cgi-bin/text-idx?SID=0ff5f0839abff4eec707b4478ed733c6&mc=true&node=pt13.1.121&rgn=div5&se13.1.121_1101 https://www.sam.gov/SAM/

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

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

Anchor Institutions. Anchor institutions are place-based entities with regional significance and are permanently-rooted economic or cultural 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 centers, tribal cultural institutions, and other major cultural facilities (such as museums and central libraries) and some very large places of worship and corporations.

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

Case Management. Case Management is an individual- or family-centered approach to assisting people of all ages with accessing the services they want and need to achieve the Choice Neighborhoods People objectives. It includes screening/assessment/risk management, individualized service planning based on resident needs and choices, provision of options and information, linkage/referral to formal and informal services and supports, service coordination at the client-level, crisis intervention, follow-up, advocacy, monitoring/evaluation of resident progress as well as timeliness and effectiveness of service delivery, and maintenance of records. Case management contributes to and benefits from well-coordinated services at the community level. The intensity and frequency of case management services should be tailored to the level of an individual’s or family’s needs. Active case management requires a minimum of quarterly client contact.

Co-Applicant. Co-Applicant means an entity with which the Lead Applicant applies for funding under this NOFO. A Co-Applicant can be a local government, PHA, owner of the target HUD-assisted housing (e.g., a nonprofit or for-profit developer), or tribal entity. The local government of jurisdiction must be the Co-Applicant if it is not the Lead Applicant. Along with the Lead

Applicant, the Co-Applicant must meet each Threshold Requirement listed in Section III.A, will sign the Grant Agreement, and will be responsible for implementing the activities identified in the Transformation Plan.

Critical Community Improvements. Critical Community Improvements (CCI) are community and economic development projects undertaken in the target neighborhood which will advance the neighborhood outcomes proposed in the Transformation Plan. Applicants must have a plan, approved by HUD, for how CCI funds will be used and they must be leveraged with additional resources. They must be used for physical community and economic development projects that enhance and accelerate the transformation of the neighborhood and the target housing being redeveloped. HUD does not explicitly define every possible use of CCI funds as use of these funds should be locally driven to solve challenges identified by the community. CCI funds are not intended to be used for infrastructure or substitute for basic municipal services. These funds should be used for innovative solutions to neighborhood challenges identified in the neighborhood narrative. Possible uses of funds include, but are not limited to:

a. Financing for commercial and economic development projects;

b. Neighborhood business facade improvement programs;

c. Place-making projects;

d. Neighborhood broadband;

e. Revolving loan funds for business attraction and retention;

f. Streetscape improvements above and beyond the locality’s norm;

g. Programs to improve housing in the neighborhood surrounding the target housing subject of this application. Such programs could include targeted loan, grant and revolving loan programs to assist existing property owners with maintaining their property, model block programs, facade and front porch repair programs. (Note: using CN grant funds for more than facade improvements (e.g., housing rehabilitation) constitutes development and triggers additional requirements such as long-term affordability.); and

h. Acquisition of underutilized land for new parks, community gardens, or other uses approved by HUD.

Ineligible uses of CCI funds include, but are not limited to: providing programs and services; the commission of plans and studies; water and sewer line repair or infrastructure; bike share stations; street and sidewalk repair; infrastructure; or lighting.

Evidence-based Practice. Evidence-based practice refers to the use of the best available conclusions/findings from research and studies as a base for determining the best practices and predictions of outcomes in a field. A strong evidence base is offered by studies with designs that can support causal conclusions and studies that, in total, include enough of a range of participants and settings to support generalizability.

Families, Family. The term “families” has the meaning provided in section (b)(3)(B) of the United States Housing Act of 1937 (42 U.S.C. 1437a).

Hard to House. Hard to House refers to a special population of residents who face multiple, persistent barriers to moving toward self-sufficiency or maintaining stable housing for reasons that go beyond affordability, such as long-term unemployment, substance use or mental health problems, and/or a criminal record. These vulnerable households may have trouble finding a unit in the private market and may face significant challenges meeting the screening requirements to return to a new mixed-income development.

Housing Implementation Entity. The entity that is responsible for implementing the Housing component of the Transformation Plan and is at-risk and financially responsible for developing the housing and the long-term asset management of the housing. A joint venture with an executed agreement that establishes clear roles and responsibility can be the Housing Implementation Entity.

Lead Applicant. Lead Applicant means the primary entity responsible for implementing the activities identified in the Transformation Plan. The Lead Applicant must be a local government, PHA, or tribal entity. The Lead Applicant is responsible for overseeing and coordinating all elements of the Choice Neighborhoods Transformation Plan and is accountable to HUD to complete the work proposed in the application, as amended with HUD approval. The Lead Applicant will sign the Grant Agreement.

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

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

Neighborhood Assets. Neighborhood assets include the following main categories:

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

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

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

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

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

f. Cultural assets that enhance the quality of life for the neighborhood residents (e.g., art centers, museums, etc.).

Neighborhood Implementation Entity. The entity that is responsible for coordinating, overseeing and implementing the Critical Community Improvements. The Neighborhood Implementation Entity must be either 1) the local government or tribe in which the target housing resides, 2) a local redevelopment authority, or 3) a public/private partnership which receives local government funding for its activities in the target neighborhood and which has local government participation on its governing board. A joint venture or other type of partnership cannot be the Neighborhood Implementation Entity.

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.

People Implementation Entity. An entity with proven experience in supportive service design and implementation which has primary responsibility for facilitating the achievement of the supportive services strategy. This strategy should be minimally comprised of case management and service coordination related to health, income and employment, education and early childhood education. A joint venture or other type of partnership cannot be the People

Physical Needs Assessment. A Physical Needs Assessment (PNA) for a housing project should be prepared by an independent registered engineer or architect that conducts a physical inspection of at least 10 percent of each dwelling unit set (i.e. a grouping of units within a building, which share characteristics, such as: number of bedrooms, number of full and half baths, ceiling height, and floor area) in order to ensure a representative sample of dwelling units are assessed and at least 50 percent of the non-dwelling space (i.e. exteriors, envelopes, non-dwelling units, grounds, common space and systems). Generally, a PNA identifies all the work needed to bring the housing project up to the applicable building modernization and energy conservation standards and includes work to bring the housing project into compliance with accessibility requirements. Typically, a PNA takes into account the life cycle replacement costs of the housing project’s entire inventory of capital items for a period of 20 years; however, for the purposes of the rating factors in this NOFO, HUD will only consider the cost of immediate needs for rehabilitation. Capital Needs Assessments, Project Capital Needs Assessments and Physical Condition Assessments are acceptable formats. Please note that HUD offers PHAs a free and standardized PNA format via our PNA Tool at: https://www.hud.gov/program_offices/public_indian_housing/programs/ph/capfund/gpnatool . Additionally, this website includes a user guide, instructions, and other informative PNA resources. PHAs can retrieve their PIC data in HUD’s Energy and Performance Information Center’s (EPIC) PNA tab or via request at PHAPNA@hud.gov.

Principal Education Partner. The entity selected to have primary responsibility for implementing the education component of the Transformation Plan.

Principal Team Member. Principal Team Members are the Lead Applicant, Co-Applicant(s) if any, Housing Implementation Entity, People Implementation Entity, and Neighborhood

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

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

Rental Assistance Demonstration (RAD). A HUD program that allows PHAs to convert public housing to project-based section 8 housing to facilitate additional debt and equity financing. If awarded a Choice Implementation Grant, awardees may use RAD as a replacement housing vehicle. More information on the RAD Program can be found at www.hud.gov/rad.

Replacement Housing. Replacement housing is rental housing that will replace demolished, disposed of, or otherwise reduced public or assisted housing. Replacement housing may take the form of public housing or section 8 assisted housing as defined under sections 8 and 9 of the U.S.

Housing Act of 1937 (42 U.S.C. 1437f and 42 U.S.C 1437g) or the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. § 4101, et seq.). With regard to section 8 housing, project-based vouchers (section 8(o)(13) of the U.S. Housing Act of 1937) and project-based rental assistance as provided in a RAD conversion are included in this https://www.hud.gov/program_offices/public_indian_housing/programs/ph/capfund/gpnatool mailto:PHAPNA@hud.gov definition. To satisfy the one-for-one replacement requirement through acquisition, the replacement unit must not have been receiving assistance prior to submitting the application.

Service Coordination. Service Coordination is a systems-centered approach to coordinating multiple services across agencies within a community, based on the needs of the target resident population, to increase accessibility, utilization, and quality of services and to reduce fragmentation in service delivery systems. Service coordination often requires the negotiation of enhanced services to address unique needs and gaps in available services. Partnership and network building with community-based supportive and social service agencies are critical components of service coordination.

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, or 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) Is:

(i) Occupied predominantly by families who are very low-income families with children, have unemployed members, and are dependent on various forms of public assistance;

(ii) Has high rates of vandalism and criminal activity (including drug-related criminal activity) in comparison to other housing in the area; or

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

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.

Transformation Plan. The Transformation Plan is a comprehensive neighborhood revitalization strategy proposed (as presented in the Choice Neighborhoods grant application) to achieve the three core goals of Choice Neighborhoods (Housing, People, Neighborhood). The Transformation Plan is a living document that is expected to change over time. HUD’s approval will be required for revisions to the Transformation Plan.

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

B. Authority.

The funding authority for Choice Neighborhoods grants under this NOFO is provided by the Consolidated Appropriations Act, 2021 (Public Law 116-260, approved December 27, 2020) and the Further Consolidated Appropriations Act, 2020 (Public Law 116-94, approved December 20, 2019). 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 applied by the fiscal year 2020 and 2021 Appropriations.

II. Award Information.

A. Available Funds Funding of approximately $218,000,000 is available through this NOFO.

Additional funds may become available for award under this NOFO, because of HUD's efforts to recapture funds, use carryover funds, or because of the availability of additional appropriated funds. Use of these funds is subject to statutory constraints. All awards are subject to the funding restrictions contained in this NOFO.

Per the FY 2021 appropriations, at least $100,000,000 million of the total FY 2021 Choice Neighborhoods funding must be awarded to applications in which a public housing authority is the Lead Applicant or Co-Applicant. HUD may set aside one grant award for the highest scoring application that targets a multifamily HUD-Assisted Housing property that is receiving project-based rental assistance under section 8 of the United States Housing Act of 1937 (exclusive of tenant-based or project-based vouchers). This NOFO includes FY 2020 and FY 2021 appropriations and, at the Department's discretion and subject to appropriations, HUD may use FY 2022 appropriations to make Implementation Grant awards under this NOFO. Tenant Protection Voucher assistance for purposes in association with the Implementation Grants will be in addition to the Choice Neighborhoods Implementation Grant and may be requested after the Choice Neighborhoods grant award.

B. Number of Awards.

HUD expects to make approximately 5 awards from the funds available under this NOFO.

Depending on the FY 2022 appropriations and the amount of FY 2022 funding HUD elects to use for grants under this NOFO, the number of awards may be higher.

C. Minimum/Maximum Award Information For the purposes of establishing the maximum amount of Choice Neighborhoods Implementation Grant funding that an applicant may request, calculate a development cost for the replacement housing units to be developed in the Transformation Plan and allow for additional funding to cover non-housing activities. See Section IV.F.3 for detailed instructions on how to calculate this amount. An applicant may request the lesser of this calculated amount or $40,000,000 for applications with a target housing project with fewer than 250 public housing/assisted units or $50,000,000 if the target housing has 250 or more public housing/assisted units. Use the FY 2021 Implementation Grant Sizing worksheet (HUD-53235) and include it in the attachments section of the application.

Estimated Total Funding:

$218,000,000 Minimum Award Amount:

$1 Per Project Period

Maximum Award Amount:

$50,000,000 Per Project Period

D. Period of Performance Grantees must proceed in a timely manner, as indicated by the timeframes established in this NOFO and Grant Agreement. All FY 2020 Choice Neighborhoods funds must be expended by September 30, 2027 and all FY 2021 Choice Neighborhoods funds must be expended by September 30, 2028, unless the Grant Agreement establishes an earlier deadline. The grant term will accommodate the timeframes established by Congress if any FY 2022 funding is appropriated and included in the grant awards.

Estimated Project Start Date:

09/01/2022 Estimated Project End Date:

09/30/2028 Length of Project Periods:

Other

Length of Periods Explanation of Other:

See Section IV.F for additional information.

E. Type of Funding Instrument.

Funding Instrument Type:

G (Grant) III. Eligibility Information.

A. Eligible Applicants.

02 (City or township governments)

08 (Public housing authorities/Indian housing authorities)

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

Additional Information on Eligibility The local government of jurisdiction must be either the Lead Applicant or Co-Applicant. The Lead Applicant can be either a Public Housing Agency (PHA), local government, or tribal entity.

A Co-Applicant can be a local government, PHA, tribal entity, or the owner of the target HUD-assisted housing (e.g. nonprofit or for-profit developer).

Key Eligibility Criteria. There are three key eligibility criteria for Choice Neighborhoods funding. In addition to the applicant's eligibility, the application must also demonstrate that the proposal targets an eligible housing project and is located in an eligible neighborhood.

1. Eligible Applicants. The local government of jurisdiction must be the Lead Applicant or Co-Applicant. (For applications that target Indian Housing, the tribe meets this requirement.) The Lead Applicant must be a local government, Public Housing Agency (PHA), or a tribal entity. A Co-Applicant can be a local government, PHA, tribal entity, or the owner of the target HUD-assisted housing (e.g. a nonprofit or for-profit developer). See Sections I.A.4 for definitions of related terms.

a. Troubled Status for PHAs. If a PHA applicant 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 that PHA qualifies as an eligible applicant. In accordance with section 24(j) of the 1937 Act, a troubled PHA may still be eligible to apply if it:

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

(2) Is making substantial progress toward eliminating the deficiencies of the agency that resulted in its troubled status;

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

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

b. Previous Participation Certification for Multifamily Assisted Property Owners. If the Co-Applicant is the owner of the assisted property that is the subject of the Choice Neighborhoods grant application, the application must include the owner's most recent Previous Participation Certification (form HUD-2530). If the owner has defaulted on a mortgage loan or has less than satisfactory review ratings (physical inspections, management and financial reviews), HUD will use documents and information available to it to determine whether the owner qualifies as an eligible applicant. Approvals of entities that have defaulted or received unsatisfactory review ratings will be subjected to HUD’s Previous Participation clearance review process. Applicants may still be eligible to apply for Choice Neighborhoods funding if HUD deems the applicant to be making substantial progress in addressing the deficiencies related to such default or review rating. This requirement is not applicable to applications that target only public housing or Indian housing.

2. Eligible Target Housing. Each application must focus on the revitalization of at least one severely distressed public and/or assisted housing project. Eligible target housing meets the following criteria:

a. Is currently HUD "public housing" or "assisted housing" as defined in section I.A.4.

b. If the project's occupancy is designated housing for "elderly" or "disabled" residents, it cannot be the only target housing project identified in this grant application. At least one target housing project must be available for general occupancy by families. For public housing projects, HUD will verify if the property has such a designation in PIC. For assisted housing, HUD will verify if such a designation is listed in the Housing Assistance Payments (HAP) contract or other HUD records.

c. For public housing projects, the Actual Date of Full Availability (DOFA) date in PIC must be earlier than January 1, 1996.

d. Severely distressed: The definition of severely distressed housing from section 24(j)(2) of the 1937 Act is included in section I.A.4. Provide the Certification of Severe Physical Distress form (HUD-53232) and include it in the attachments section of the application. The certification must be signed by an engineer or architect licensed by a state licensing board and dated. The license does not need to have been issued in the same state as the severely distressed project. The engineer or architect must include his or her license number and state of registration on the certification.