FR-6900-N-07 NOFO.pdf

FON

FR-6900-N-07

Applications Due 03/20/2025

Organization Name Title

Section 4 Capacity Building for Community Development and Affordable Housing

Table of Contents

BEFORE YOU BEGIN

I. BASIC INFORMATION

A. Summary

B. Agency Contact(s)

II. ELIGIBILITY

A. Eligible Applicants

B. Cost Sharing or Matching

III. PROGRAM DESCRIPTION

A. Purpose

B. Goals and Objectives

C. Authority

D. Unallowable Costs

E. Indirect Costs

F. Program History

G. Other Information

IV. APPLICATION CONTENTS AND FORMAT

A. Standard Forms, Assurances, and Certifications

B. Budget

C. Narratives and Other Attachments

D. Other Application Content

V. APPLICATION REVIEW INFORMATION

A. Threshold Review

B. Merit Review

C. Risk Review

D. Selection Process

E. Award Notices

VI. SUBMISSION REQUIREMENTS AND DEADLINES

A. Deadlines

B. Submission Methods

C. Other Submissions

D. False Statements

VII. POST-AWARD REQUIREMENTS AND ADMINISTRATION

A. Administrative, National and Departmental Policy Requirements, and General Terms and Conditions

B. Environmental Requirements

C. Remedies for Noncompliance

D. Reporting

VIII. CONTACT AND SUPPORT

A. Agency Contact

B. Grants.gov

C. SAM.gov

D. Debriefing

E. Applicant Experience Survey

F. Other Online Resources

APPENDIX

Appendix I. HUD Strategic Goals

Appendix II. Definitions

BEFORE YOU BEGIN

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

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

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

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

Grants.gov Registration You must have an active Grants.gov registration. This requires a Login.gov registration as well.

See step-by-step instructions at the Grants .gov Quick Start Guide for Applicants. You must apply for funding using Grants.gov, unless HUD has approved your waiver request.

See Section VI.B. Submission Methods.

Find the Application Package Use the Grants Search at Grants.gov and search for opportunity number FR-6900-N-07 . The application package has all the online forms you need to apply. You also need to access the Download Instructions link and review the content before you apply.

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

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

Application Deadline Applications are due by 11:59:59 p.m. Eastern Time on 03/20/2025.

See Section VI.A. of this NOFO.

HUD Listserv

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

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

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

I. BASIC INFORMATION

This NOFO solicits applications for Section 4 Capacity Building for Community Development and Affordable Housing. Review the entire NOFO to understand the application requirements in full. HUD will not fund incomplete or ineligible applications.

A. Summary Through funding of national intermediaries, the Section 4 Capacity Building for Community Development and Affordable Housing program (Section 4) enhances the capacity and ability of Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) to carry out affordable housing and community development activities that benefit low- and moderate-income families and persons.

This NOFO makes available $42,000,000 in FY 2024 funds to carry out eligible activities related to community development and affordable housing projects and programs for Section 4, of which at least $5,000,000 shall be made available for rural capacity building activities.

Additionally, Section 4 program grantees shall collectively invest not less than $1,000,000 of FY 2024 funds in targeted capacity building activities to benefit Native Hawaiian, American Indian, and Alaska Native communities and populations in areas including, but not limited to, rural areas. This minimum investment is separate from the required investment for rural capacity building activities described above.

Enterprise Community Partners Inc., Local Initiatives Support Corporation and Habitat for Humanity International are the only eligible applicants for this NOFO.

1. NOFO Summary Federal Agency Name: United States Department of Housing and Urban Development (HUD)

HUD Program Office: Community Planning and Development

Funding Opportunity Title: Section 4 Capacity Building for Community Development and Affordable Housing

Announcement Type: Initial

Funding Opportunity Number: FR-6900-N-07

Assistance Listing Number(s): 14.252

Paperwork Reduction Act Information: Not Applicable

Key Dates:

Due Date for Application Submission: 11:59:59 PM Eastern Time on 03/20/2025

Due Date for Intergovernmental Review: See Section VI.C.1.

Anticipated Award Date: 05/20/2025

2. Funding Details Type of Funding Instrument

G (Grant)

Available Funds Funding of approximately $42,000,000 is available through this NOFO.

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

HUD reserves the right to republish this NOFO with a new due date for the purpose of awarding additional funding.

FY2024 Funding Details

Number of Awards HUD expects to make approximately 3 awards from the funds available under this NOFO.

Period of Performance Estimated Project Start Date:

07/07/2025 Estimated Project End Date:

07/07/2029 Length of Project Periods:

48-month project period and budget period

Length of Periods Explanation:

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

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1#p-200.1(Federal%20award)

II. ELIGIBILITY

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

A. Eligible Applicants

1. Eligible Entity Types:

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

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

Additional Information on Eligibility

Faith-based organizations may apply on the same basis as any other organization.

Individuals are ineligible applicants.

Section 1 A.

2. Restrictions

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

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

Only the three organizations listed in Section I. A. of this NOFO are eligible for the Section 4 program. Any other applicants will be identified as ineligible.

Eligible applicants must be nonprofit organizations having 501 (c) (3) status with the IRS identified in Section 4 of the HUD Demonstration Act of 1993 (Public Law 103-120, 107 Stat.

1148, 42 U.S.C. 9816 note), as amended, and the FY 2024 Appropriations. Specifically, these three organizations are the only applicants eligible for this competition and are located at the following addresses:

• Enterprise Community Partners, Inc. 70 Corporate Center 11000 Broken Land Parkway, Suite 700 Columbia, MD 21044

• Local Initiatives Support Corporation (LISC) 501 Seventh Avenue, 7th Floor New York, NY 10018

• Habitat for Humanity International 121 Habitat Street Americus, GA 31709

Any other applicants will be identified as ineligible.

Affiliates and local offices of these organizations and their community partners are not eligible to compete either directly or independently for Section 4 funds under this notice but may seek funding from the above organizations.

https://www.ecfr.gov/current/title-24/part-5/appendix-Appendix%20A%20to%20Subpart%20A%20of%20Part%205 https://www.hud.gov/program_offices/cfo/gmomgmt/grantsinfo/policies_regulations/financial-assistance-eligibility-reqs/fy2025 https://www.hud.gov/program_offices/cfo/gmomgmt/grantsinfo/policies_regulations/financial-assistance-eligibility-reqs/fy2025 https://sam.gov https://www.hud.gov/program_offices/cfo/gmomgmt/grantsinfo/fundingopps/EligibilityRequirements

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

In accordance with Section 4(c) of the HUD Demonstration Act of 1993, each dollar awarded must be matched by three dollars in cash or in-kind contribution obtained from private sources.

The types of documentation accepted by HUD will be determined at the time the organization enters into a grant agreement. All match funds, including in-kind contributions, shall conform to the requirements of 2 CFR 200.306. Match funds must clearly be connected to the delivery of the proposed Section 4 program eligible activities or the resulting outputs of those activities.

In addition to the required matching funds, applicants are encouraged to secure leverage from private sector and/or public resources. Leverage funds are calculated over and above any match contributions.

https://www.ecfr.gov/current/title-2/part-200/section-200.1#p-200.1(Cost%20sharing%20or%20matching) https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.306

III. PROGRAM DESCRIPTION

A. Purpose The program enhances the capacity and ability of Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) to carry out community development and affordable housing activities that benefit low-income persons. Additionally, this program provides a set-side for rural capacity building activities and a set aside to benefit Native Hawaiian, American Indian, and Alaska Native communities and populations in areas including, but not limited to, rural areas.

B. Goals and Objectives

1. Applicable Goals and Objectives from HUD’s Strategic Plan This NOFO supports HUD’s mission and HUD’s Strategic Plan for Fiscal Years (FY) 2022- 2026. The goals, objectives, and measures applicable to this NOFO are included in Appendix I.

These are in addition to increasing equity and improving customer experience - two overarching HUD priorities. Consider this information in your application and when tracking the success of your project, if selected for award. HUD will monitor compliance during the award performance period.

2. Civil Rights and Equity Goals The Fair Housing Act requires HUD funding to create diverse neighborhoods, increase housing choice, reduce inequality, and eliminate discrimination. Executive Orders 13985 and 14091 direct HUD programs to reduce racial disparities. Your application must respond to these requirements in Section V.B.3 of this NOFO. and if you receive this award, you must track and report your progress towards these goals.

3. Other Program Goals

• Promote and enhance the capacity and ability of Community Development Corporations

(CDCs) and Community Housing Development Organizations (CHDOs) by providing technical and financial assistance through National Organizations. These National Organizations will build the capacity of the CDC and CHDOs to provide affordable housing and community development that will benefit low -and- moderate income households and persons in urban, rural, and tribal communities.

• Prioritize fair housing that fosters inclusivity in communities across the nation, while addressing underserved communities, including segregated areas of poverty and ensuring civil rights and fair housing laws are maintained and in compliance.

• Increase the grantee participation with the Rural Partners Network to include collaborations with the 16 identified federal agencies and regional commissions through the Rural Prosperity Interagency Policy Council.

• Implement and document Affirmative Marketing narrative, that details the plans to affirmatively market housing services and benefits provided to beneficiaries in a manner that will increase opportunities for underserved person or communities, individuals with limited English proficiency, individuals with disabilities or families with children.

• Increase awareness of grantees promoting environmental justice by means of investing, remedying, developing, implementing, and enforcing laws and policies that advance https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government https://www.federalregister.gov/documents/2023/02/22/2023-03779/further-advancing-racial-equity-and-support-for-underserved-communities-through-the-federal environmental equity for people in underserved, or overburdened communities, such as underserved communities, indigenous groups, and individuals with disabilities.

C. Authority The Section 4 program is authorized by Section 4 of the HUD Demonstration Act of 1993 (Public Law 103-120, 107 Stat. 1148, 42 U.S.C. 9816 note), as amended. Funding for this program is provided by the Consolidated Appropriations Act, 2024 (Public Law 118-42, approved on March 09, 2024).

D. Unallowable Costs Prohibition on Fees or Profit.

No fee or profit may be paid to any recipient or subrecipient of an award under this Section 4

NOFO.

Contractor and Subrecipient Rate Determination: Prior to beginning work on an activity, the grantee must have a contract with any hired contractors and subrecipients. In addition to the requirements laid out at 2 CFR 200.331, the contract with any contractor or subrecipient must clearly state the work expected to be performed, the expected performance outputs (deliverables) from that work, the period of performance for the contract, the expected number of hours of work, and the hourly rate of pay to be applied. The contract must establish if the hourly rate of pay is a “fully-loaded” or “unloaded” rate. “Fully-loaded” rates are rates that include the wage rate, fringe benefits, and overhead for the contractor or subrecipient as clearly stated in the contract, while “unloaded” rates only include the hourly wage rate.

High Rate Contractors and Consultants. Section 4 program funds may not be used, directly or indirectly, to pay or provide reimbursement for payment of the salary of a contractor or subrecipient at more than the “unloaded” hourly equivalent of the rate paid for the OPM General Schedule Grade 15, Step 10 (based on the locality of the consultant, contractor, or subrecipient’s primary work address) without prior written approval from HUD. For more information on OPM's General Schedule, please see the Office of Personnel Management (OPM) website at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2024/general-schedule

Additionally, Section 4 program funds may not be used, directly or indirectly, to pay or provide reimbursement for payment of the salary of a contractor or subrecipient at more than the “loaded” rate of $150 an hour without prior written approval from HUD. If the grantee believes there is sufficient need or cause for hiring a contractor or subrecipient at a high rate, it may submit a request to HUD and a written justification for review and consideration, and it must receive HUD’s approval prior to commencing services with the high rate contractor, consultant, or subrecipient. In all cases, the grantee must receive approval from HUD before commencing any Section 4 program work with a high rate contractor or subrecipient.

E. Indirect Costs If you expect to charge indirect costs to the award, submit the Indirect Cost Information (HUD-

426) with your application.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR031321e29ac5bbd/section-200.331 https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2024/general-schedule https://www.ecfr.gov/current/title-2/part-200/section-200.1#p-200.1(Indirect%20(facilities%20%26amp%3B%20administrative%20(F%26amp%3BA))%20costs)

Applicants are required to provide documentation identifying the federally negotiated indirect cost rate from the cognizant agency that shows the approved rate, or provide an attachment that states that the de minimis rate of 15% Modified Total Direct Costs (MTDC) will be used.

F. Program History For more information on Section 4 and program history you may visit the following web resources below:

• Section 4 and Rural Capacity Building | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

• Section 4 Capacity Building for Community Development and Affordable Housing Program - HUD Exchange

G. Other Information Eligible Activities and Priorities. Funds may only be used to conduct the following activities:

1. Training, education, support, and advice to enhance the technical and administrative capabilities of CDCs and CHDOs. This may include building the capacity of CDCs and CHDOs to:

• Participate in consolidated planning, fair housing planning and Continuum of Care programs to assist persons experiencing homelessness that help ensure community-wide participation in assessing area needs;

• Navigate the increased housing and community development resources provided by the Federal Government and assist in directing Federal investments to underserved communities;

• Consult broadly within the community;

• Cooperatively plan for the use of available resources in a comprehensive and holistic manner; and

• Assist in evaluating performance under these community planning and coordination efforts and in linking plans with neighboring communities to foster regional planning.

2. Pass-through grants, loans, predevelopment assistance, or other financial assistance to CDCs and CHDOs to increase their capacity to carry out community development and affordable housing activities that benefit low-income or low- and moderate-income families and persons.

3. Such other activities as may be determined by the grantees in consultation with the Secretary or his or her designee.

At this time, eligible program activities allowed under the third listed eligible activity only include HUD reviewed and approved reasonable administrative activities directly related to the grantee's management of its Section 4 program. Some examples of reasonable administrative activities specific to the management of the Section 4 program include the preparation of Section 4 action plans and activities, preparation of Section 4 program reports, and management of the implementation of the first and second eligible activities. For any other activities to qualify under the third listed eligible activity it must first be proposed in an action plan, and then reviewed and https://www.hud.gov/program_offices/comm_planning/section-4 https://www.hud.gov/program_offices/comm_planning/section-4 https://www.hudexchange.info/programs/section-4-capacity-building/ https://www.hudexchange.info/programs/section-4-capacity-building/ approved by HUD through the action plan process after a grant award is made; thus, it should not be proposed through this application.

Any Section 4 funded activity that results in the creation of intangible property, including but not limited to the creation of curriculum, trainings, data or research findings is subject to the rules at 2 CFR 200.315. In accordance with 2 CFR 200.315, the Federal awarding agency reserves a royalty-free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the work for Federal purposes, and to authorize others to do so.

Program Priorities. Activities undertaken as part of, or as a result of, capacity building efforts described in this section should support the implementation of other HUD programs, including, but not limited to, the Community Development Block Grant Program, HOME Investment Partnerships, Housing Opportunities for Persons With AIDS (HOPWA), and the Continuum of Care program, in addition to issues related to sustainability and comprehensive neighborhood revitalization activities.

Through these activities, grantees are encouraged to align with and support projects that create opportunities for investments focused on job growth, economic recovery, and neighborhood revitalization. Additionally, grantees are encouraged to consider how CDCs and CHDOs may align investments with regional planning for sustainable economic development if such efforts are underway in the jurisdiction.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR8feb98c2e3e5ad2/section-200.315

IV. APPLICATION CONTENTS AND FORMAT

Applications must include three main elements: a) standard forms, assurances, and certifications;

b) budget; and c) narratives and other attachments. The content, forms, and format for each element are included in this section.

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

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

Do not submit password protected or encrypted files.

1. Page Limitation and Font Size. The narrative addressing the Five Factors is limited to no more than 40 typed single spaced pages using a Times New Roman standard 12-point font (footnotes and endnotes may be presented in size 10 font). All applicants should include the applicant name, UEI number, and page number on each page of the narrative.

HUD will not review more than 40 single spaced pages for all Five Factors and NOFO Preference Points combined. The page limit does not include the form HUD-50153 in support of Promise Zones Preference Points, Indirect Cost rate determination, HUD Form 4130 Multi-Year Budget, or any of the other required documents that are provided as attachments.

2. Prohibition on Materials Not Required. Materials other than what is requested in this NOFO are prohibited. Reviewers will not consider resumes, charts, letters, or any other documents attached to the application that are not specified or requested in this NOFO.

3. Additional Information on the Section 4 program and Frequently Asked Questions.

HUD may provide a summary of Frequently Asked Questions. Please check the Section 4 program webpage on the HUD website at https://www.hud.gov/program_offices/comm_planning/section-4 for these possible references, for any other related updates, and to learn more about the Section 4 Capacity Building Program.

pages is the total maximum length of all narratives.

Double spaced 12-point Times New Roman font on letter sized paper (8 1/2 x 11 inches) with at least 1-inch margins on all sides.

Other

4. Applicants should include a one-page abstract with the application. The abstract should address the following:

• Grantee Name

Element Submission Form Standard Forms, Assurances, and Certifications Upload using each required form.

Budget Use the required budget form.

Narratives and Other Attachments Insert each in the Attachments form.

https://www.hud.gov/program_offices/comm_planning/section-4

• Grantee Address

• Project Name

• Project Director

• Project Director Contact Information

• Purpose

• Activities to be performed

• SMART Goals (Program Level and Project Level)

• Expected Targets

• Deliverables and Expected Outcomes

• Subrecipient Activities

• Requested Amount

• Cost Share Match

• Leverage

• Approved Indirect Cost Rate

• Applicants intending to apply for the tribal set aside must provide a succinct narrative describing how the funds will be implemented. The page limit does not apply to the abstract. Information contained in the abstract will not be rated.

A. Standard Forms, Assurances, and Certifications You must properly complete and submit with your application the standard forms, assurances, and certifications identified below. You can find all forms in the application package or review them and their instructions at Grants.gov Forms. You can also read more about standard forms on HUD’s Funding Opportunities page.

Forms/Assurances/Certifications Submission Requirement Notes/Description

Application for Federal Assistance

(SF-424)

Required with the application

Page limit: Not applicable File name: SF-424

Applicant and Recipient Assurances and Certifications

(HUD 424-B)

Required with the application

Page limit: Not applicable File name: HUD-424B

Applicant/Recipient Disclosure/Update Report (HUD 2880)

Required with the application and after award.

Page limit: Not applicable File name: HUD-2880

Certification Regarding Lobbying Required with the application

Page limit: Not applicable.

File name: Lobbying Certification form

Disclosure of Lobbying Activities

(SF-LLL)

Required with the application

Page limit: Not applicable.

File name: SF-LLL

Certification of Consistency with Promise Zone Goals and Implementation (HUD-50153)

Required with the application

Page limit: Not applicable File name: HUD-50153 https://www.grants.gov/forms https://www.hud.gov/sites/dfiles/CFO/images/Standard-Application-Forms.pdf

Form location: download instructions

Indirect Cost Rate Certification

(HUD-426)

Required with the application and after award

Page limit: Not applicable File name: ICR Doc.

Form location: download instructions

B. Budget You must submit a budget with your application to support your project narrative.

At a minimum, your budget must indicate direct and any indirect costs.

Applicants are required to provide documentation identifying the federally negotiated indirect cost rate from the cognizant agency that shows the approved rate, or provide an attachment that states that the de minimis rate of 15% Modified Total Direct Costs (MTDC) will be used. Refer to Section III.E Indirect Cost Rate, for full details on this requirement.

C. Narratives and Other Attachments If applicable, you must upload narrative and other attachments in Grants.gov using the Attachments Form. When using the Attachments Form, you can upload PDF, Word or Excel formats.

Budget Form/Document Submission Requirement Notes/Description

HUD Form 4130 Multi-Year Budget Required with the application

Page limit: Not Applicable File Name: HUD Form 4130

Document Submission Requirement Notes/Description

Abstract Required with the application

See Section IV. 4 File name:

Abstract

Response to 5 Rating Factors Required with the application

See Section V.B,1 File name: Rating Factor Narrative

Nonprofit Status – Documentation Required with the application

Page limit: Not applicable File name:

Nonprofit Doc.

Acceptable Documents

Code of Conduct If not included in HUD’s eLibrary, this document is

Page limit: Not applicable File name: Code https://grants.gov https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/conductgrants

D. Other Application Content The applicant must provide the following documents once the notification of the awards are made:

• A negotiated HUD Form 4130

• A signed Indirect Cost Form

Once the documents stated above are received from the applicant, HUD will then send the following forms to applicant for signature and processing:

• A signed HUD Form 1044

• A signed Grant Agreement required with the application

Acceptable Content

Advancing Racial Equity (ARE) Narrative Required with the application

Page limit: 1 page File name:

Attachment A

Experience Promoting Racial Equity (EPRE) Narrative

Required with the application

Page limit: 1 page File Name:

Attachment B

Affirmative Marketing and Outreach (AMO) Narrative

Required with the application

Page limit: 1 page File Name:

Attachment C

Affirmatively Furthering Fair Housing (AFFH) Narrative

Required with the application

Page limit: 1 page File name:

Attachment D

V. APPLICATION REVIEW INFORMATION

A. Threshold Review HUD reviews each application to make sure it meets the following threshold requirements. If you meet all threshold requirements, your application will advance to a merit review. If you fail to meet one or more threshold requirements, your application is not eligible for HUD funding.

1. Eligible Applicant You must meet the applicant eligibility criteria in this NOFO. HUD will not fund applications from ineligible applicants.

Only the three organizations listed in Section I. A of this NOFO are eligible for the Section 4 program. All other applicants are not eligible for funding.

2. Resolution of Civil Rights Matters An application will not advance for merit review unless the application(s) resolves all outstanding civil rights matters before the application deadline.

a. An applicant is not eligible for funding if that applicant has any of the charges, cause determinations, lawsuits, or letters of findings referenced in subparagraphs (1) – (5) that are not resolved to HUD’s satisfaction before or on the application deadline date for this NOFO

(1) Charges from HUD concerning a systemic violation of the Fair Housing Act or receipt of a cause determination from a substantially equivalent state or local fair housing agency concerning a systemic violation of a substantially equivalent state or local fair housing law proscribing discrimination because of race, color, religion, sex (including sexual orientation and gender identity), national origin, disability, or familial status;

(2) Status as a defendant in a Fair Housing Act lawsuit filed by the United States alleging a pattern or practice of discrimination or denial of rights to a group of persons raising an issue of general public importance under 42 U.S.C. § 3614(a);

(3) Status as a defendant in any other lawsuit filed or joined by the Department of Justice, or in which the Department of Justice has intervened, or filed an amicus brief or statement of interest, alleging a pattern or practice or systemic violation of Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Section 109 of the Housing and Community Development Act of 1974, the Americans with Disabilities Act, Violence Against Women Act, or a claim under the False Claims Act related to fair housing, non-discrimination, or civil rights generally including an alleged failure to affirmatively further fair housing;

(4) Receipt of a letter of findings identifying systemic non-compliance with Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Section 109 of the Housing and Community Development Act of 1974; Violence Against Women Act; or the Americans with Disabilities Act; or

(5) Receipt of a cause determination from a substantially equivalent state or local fair housing agency concerning a systemic violation of provisions of a state or local law prohibiting discrimination in housing based on sexual orientation, gender identity, or lawful source of income.

b. HUD will determine if actions to resolve the charge, cause determination, lawsuit, or letter of findings taken before the application deadline date will resolve the matter.

Examples of actions that may be sufficient to resolve the matter include, but are not limited to:

(1) Current compliance with a voluntary compliance agreement signed by all the parties;

(2) Current compliance with a HUD-approved conciliation agreement signed by all the parties;

(3) Current compliance with a conciliation agreement signed by all the parties and approved by the state governmental or local administrative agency with jurisdiction over the matter;

(4) Current compliance with a consent order or consent decree;

(5) Current compliance with a final judicial ruling or administrative ruling or decision; or

(6) Dismissal of charges.

3. Timely Submission of Applications Late applications are not eligible for funding. See deadlines in Section VI of this NOFO.

4. Correct Funding Opportunity Number You must ensure that the Funding Opportunity Number in box 12 on your SF-424 matches the number associated with this NOFO. If the numbers do not match, your application is not eligible for HUD funding.

The current Funding Opportunity Number is FR-6900-N-07.

B. Merit Review The maximum number of points awarded for a Section 4 program application is 104, which includes a maximum of 100 points for Rating Factors 1 through 5 (Five Factors) and a maximum of four points for Preference Points. The minimum score for an application to be considered for funding is 75, excluding Preference Points. You are only eligible to receive Preference Points if they receive a rating score of 75 or more for the Five Factors. Only two Preference Points will be awarded for working with communities that have acquired Promise Zones status as well as two Preference Points for Environmental Justice as described in Section V. 2.

Points are assigned based on your narrative responding to the Five Factors. The narrative must present the activities that will be carried out with Section 4 funds during the four-year term of the FY 2024 grant agreement. Submissions should provide recent (within the last five years) and relevant (relative to the proposed activities to be carried out with this award) examples to support the proposal, where appropriate. Submissions should also be as specific as possible when describing the communities, populations, and organizations they propose to serve, and the specific outcomes expected as a result of the activities.

HUD expects to evaluate and score your application using the following merit criteria and process. Merit reviewers evaluate and score all applications that pass the threshold review.

https://www.hudexchange.info/programs/promise-zones/

Merit reviewers may include Federal and non-Federal persons. Reviewers receive a copy of your application to evaluate and score each application separately.

Merit Review Summary

1. Rating Factors Your application must include a response to the following criteria.

Criterion Total number of points = 100 or 104 Rating Factor 1 4 Rating Factor 2 13 Rating Factor 3 46 Rating Factor 4 10 Rating Factor 5 27 Rating Factor Total Points 100 points Policy Initiative Preference Points 4 possible Environmental Justice 2 Promise Zones 2 Total Points Possible 104 points

Rating Factors Details

Criterion

Max points

Rating Factor 1: Capacity of Applicant and Relevant Organizational Experience You must describe the capacity of the applicant and its organizational experience relevant to the Section 4 Capacity Building program. You should list position summaries of key principal staff that will manage the Section 4 Capacity Building program and funds, and of any persons and organizations firmly committed to the management of program delivery and applicable activities, including key contractors or sub-recipients, if applicable. Other than names and position titles, please do not use any Personally Identifiable Information (PII). See the definition of PII at 2 CFR 200.1.

HUD will consider the extent to which the application demonstrates that the organization has sufficient management and financial capacity and experience in the form of:

1. Knowledgeable organizational, management, and financial staff skilled in managing large federal grants;

2. Knowledgeable staff, or the ability to procure qualified experts or professionals, with the knowledge, skills, and abilities to manage the delivery and scale of the proposed Section 4 eligible activities in the proposed service areas in a timely and effective manner;

4 max points https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1

3. Experience in conducting Section 4 eligible capacity building activities to CDCs and CHDOs in both urban and rural settings; and

4. Experience targeting capacity building activities and other housing and community development activities toward underserved communities; and

5. Experience working with and knowledge of other Federal housing and community development programs at HUD and at other agencies.

6. Knowledgeable staff, and experience and familiarity with federal nondiscrimination requirements, to include fair housing planning.

Rating Factor 2: Need/Extent of the Problem You must describe their understanding of the capacity building needs of CDCs and CHDOs in the specific geographies where you plan to use Section 4 Capacity Building program funds, including both rural and urban areas. The narrative must explain the nature and extent of the need in relation to the eligible activities and priorities identified in Section III.G. of this NOFO, and must support the description of the needs with credible, reliable, and quantitative information.

HUD will consider the extent to which the application demonstrates that the organization has sufficient knowledge and understanding of the needs of CDCs and CHDOs by its explanation of:

1. Need for Capacity Building (10 points). Specifically, this sub-factor will be assessed on the applicant's identification and explanation of:

• The Needs of the Communities to Be Served: Describe the general socioeconomic needs (which may include housing, economic, health, accessibility, education, infrastructure, etc.) of cities, towns, communities, families, and individuals in the areas you propose to serve, and describe how the proposed eligible activities and priorities will serve the fair housing needs of the communities, including how it will serve the needs of protected classes (e.g. race, national origin, disability, etc.). You may also discuss the needs of communities based on geography, such as differences between tribal, rural and urban communities and other geographic factors.

• The Needs of CDCs and CHDOs: Explain the specific capacity building needs of CDCs and CHDOs, as related to their ability to successfully address the identified general community needs.

2. Data Quality (3 points). The explanation of community needs and CDC and CHDO needs must be supported by objective information and/or data. Some examples of quality sources include, but are not limited to, the most recent Census, (within 5 years) American Housing Surveys, local or state Consolidated Plans, HUD program reports available through the HUD Exchange or HUD USER websites, or other demonstrably relevant, recent, and reliable data sources. For the purpose of demonstrating the specific needs of CDCs and CHDOs, you may also use data collected through the organization's own valid, recent, reliable, and replicable means of collection. If you use your own created data source, it must provide a brief explanation of the research methods used for the data collection and analysis.

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Needs of Community/CDCs/CHDOs (10) Data Quality (3)

Rating Factor 3: Soundness of Approach

Applicants will be evaluated on the overall quality of the proposed approach to build the capacity of CDCs and CHDOs based on the needs identified in Factor 2. HUD will consider the connection between the specific identified capacity building need, the priorities and eligible activities of this program, the applicant's proposed activities, and the cost-effectiveness of those proposed activities. You must present your proposed plan for building the capacity of CDCs and CHDOs based on the needs identified in Factor 2.

You should include activities and implementation process plans that address navigating the increased Federal housing and community development resources and helping direct those resources toward underserved communities. In particular, you should describe how your approach will advance equity in underserved communities.

To assess this factor, HUD will consider the extent to which the application proposes a sound approach to building the capacity of CDCs and CHDOs. Specifically, your narrative must address the following sub-factors:

1. Description of Activities (20 points): You must describe the eligible activities you propose to conduct and address the capacity building needs of CDCs and CHDOs as identified under Rating Factor 2. The application must clearly describe:

a. Strategic Plan - Explain the strategic vision and plan for the proposed Section 4 Capacity Building program. You must clearly label the response in the narrative as the strategic plan for its Section 4 program, so HUD can clearly identify it.

b. Proposed Activities - You must explain its approach to capacity building by stating its proposed eligible activities (defined in Section III.G. of this NOFO) and how those activities are feasible and meet the capacity building needs of CDCs and CHDOs. Be sure to identify how the proposed activities will be implemented. For example, if the applicant proposes to conduct a series of trainings, indicate if the trainings will be done in person or virtually, and if it will be recorded for later distribution. All trainings must be accessible to persons with disabilities. You should also identify and explain the extent to which they have coordinated or plan to coordinate (e.g., through memorandum of agreement or letters of participation) with other known partners, contractors, or subrecipients to directly lead any of the proposed work activities.

c. Rationale and Effectiveness of Approach - Describe how you determined that your proposed activities will be cost-effective and how the activities will enable your beneficiaries to carry out specific housing and community development activities. To receive full credit, you must explain why your proposed activities were selected for the FY 2024 Section 4 program and why they represent the best approach to meet the identified CDC and CHDO needs. You should explain how your proposed approach and activities differs from prior years(if applicable), how your proposal is responsive to performance metrics or evaluations of prior year Section 4 efforts, and how your proposal addresses any recent changes in the needs of CDCs, CHDOs, or the communities you serve.

2. Implementation Process Plan to Conduct Activities (20 points):

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Describe a plan for how you will design, organize, implement, and manage the proposed capacity building activities, including how you will operate under the requirements of the Section 4 Capacity Building program. HUD will evaluate the extent to which you present and support a detailed and well-planned approach for conducting eligible program activities that address the capacity building needs of CDCs and CHDOs, as identified in Rating Factor 2.

To receive full credit, explain how you will implement and manage your proposed activities by describing:

a. Implementation Process:

• Method and Process for Activity Delivery: What is the method and process that will be used to implement the proposed activities, including an explanation for how you will determine where to direct Section 4 grant funds? For example, if you propose to run an internal Request for Proposal (RFP) process to select beneficiaries, then provide a summary of that plan and how it is connected to the proposed time frame.

• Proposed Beneficiaries: How will eligible beneficiaries (CDCs and CHDOs) be identified and selected? If you already know the eligible beneficiaries that you will serve, list them by name and geographic location. Explain how your criteria for selecting CDCs and CHDOs will allow you to target communities with the greatest need, including reaching underserved communities. You may also discuss why your proposed activities are best suited for the CDCs and CHDOs representing the targeted communities.

• Geographic Area Determinations: Explain the process and factors that you will use to determine the geographic locations where program funds will be allocated based on the identified needs in Factor 2. While you do not have to identify precise locations at application; however, if you have already determined the geographic areas where you will work, then you must indicate them in the narrative, and explain how and why they were selected. You may also provide broad geographic areas that you propose to target, if your areas have not already been pre-selected.

b. Budget: Provide a four-year budget using HUD Form-4130 showing the individual costs of managing and delivering the proposed FY 2024 Section 4 grant program. On the budget form, address the following areas, as applicable, for each year of the program:

• Applicant Organization Administration Costs: List applicable grant management administration costs related to Personnel (Direct Labor); Fringe Benefits; Travel (just for grant management administration); Equipment (only items > $5,000 depreciated value); Supplies (only items < $5,000 depreciated value); Contractors and Consultants for Administration; and Indirect Costs related to Administration.

• Eligible Activities to Eligible Beneficiaries: List applicable activity delivery costs related to the provision of the first and second eligible activities in Section III.G of this NOFO (training, financial assistance, etc.). You must provide a breakdown of the expected costs associated with each eligible activity. This should cover the direct labor costs from the applicant’s staff; fringe benefits;

travel; contractors and consultants specific to the execution of the activity, to include sub-recipients and the estimated or known hourly rate; financial assistance to beneficiaries (as applicable); equipment (only items > $5,000 depreciated value for each activity delivery); supplies (only items < $5,000 depreciated value for each activity delivery); and indirect costs.

• Match: Section 4 program applicants must apply their expected match amounts to the budget in relation to each activity. You should put any other funding sources you intend to pursue, in your budget as “Other Funding Sources."

• Grand Totals: The HUD funding total must equal the requested amount.

c. Budget Narrative - The budget narrative must go beyond the detailed budget to explain the assumptions used to develop each budget line item and clearly connect the budget line items to the proposed program design and the individual activity costs. To receive full credit, all items listed on the budget form must be discussed.

To the extent possible, projected cost estimates from outside sources, including match and other funding sources, should be included in the budget and narrative

d. Schedule - Provide a schedule and description that shows how the plan and the proposed activities are expected to be completed each year of the four-year grant period. The distribution of work explained in the schedule must be consistent with the year-to-year budget provided in this application.

As a reminder, the schedule and the budget narrative are included in the 40-page limit for the written application narrative.

3. Rural Geographic Coverage (4 point): Identify the method and criteria you will use to select rural geographic areas where you expect to focus your proposed FY 2024 Section 4 Capacity Building rural program activities. If the exact rural locations are known, You must describe how you reviewed and selected these areas.

To receive full credit for this sub-factor, the narrative must include:

• A description of how you will determine the rural areas you will serve, and an explanation of how the selection process aligns with the rural needs discussed in Factor 2; or

• A list of the rural areas you will serve, if known, with an explanation of the selection process and how it aligns with the rural needs discussed in Factor 2.

4. Compliance with Section 3 (1 point): While the Section 4 program is a capacity building program that builds the capacity of CDCs and CHDOs, you must describe how you will comply with Section 3 of the Housing and Urban Development Act, and HUD’s implementing rules at 24 CFR Part 75 (Section 3 Rule). The Section 3 Rule provides employment and training opportunities for low- and very low-income persons, as well as contracting and other economic opportunities for businesses that provide economic opportunities to low- and very low-income persons, if the applicant's proposed activities will directly result in construction or rehabilitation of housing or other public construction. You should also describe how you will build the capacity of Section 4 beneficiaries to comply with Section 3 requirements when and if they work on Section 3 projects.

HUD will consider the following in evaluating the quality of the Section 3 plan:

https://www.ecfr.gov/current/title-24/subtitle-A/part-75

• Types and amounts of employment, training, and contracting opportunities to be generated as a result of proposed grant activities;

• specific actions to be taken to give Targeted Section 3 workers and Section 3 business concerns priority consideration for employment, training, contracting, and other economic opportunities in accordance with HUD's regulations at 24 CFR part 75, subparts A and C;

• written criteria to be used for determining the respective eligibility of individuals and businesses as Targeted Section 3 workers and Section 3 business concerns;

• written procedures to be used for notifying Targeted Section 3…