Full Announcement_FR-6700-N-03.pdf

U.S. Department of Housing and Urban Development

Public and Indian Housing

FY2023 HOPE VI Main Street Grant Program

FR-6700-N-03

10/12/2023

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. Obtain an Application Package

B. Content and Form of Application Submission

C. System for Award Management (SAM) and Unique Entity Identifier (UEI)

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. Administrative, National and Departmental Policy Requirements and Terms for HUD Applicants and Recipients of Financial Assistance Awards

C. Reporting

D. Debriefing

VII. AGENCY CONTACT(S)

VIII. OTHER INFORMATION

APPENDIX

Program Office:

Public and Indian Housing Funding Opportunity Title:

FY2023 HOPE VI Main Street Grant Program Funding Opportunity Number:

FR-6700-N-03

Assistance Listing Number (formerly CFDA Number):

14.878 Due Date for Applications:

10/12/2023

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. You, as a prospective applicant, 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.

In accordance with Title 24 part 4, subpart B of the Code of Federal Regulations (CFR), during the selection process (which includes HUD’s NOFO development and publication and concludes with the award of assistance), HUD is prohibited from disclosing covered selection information.

Examples of impermissible disclosures include: 1) information regarding any applicant’s relative standing; 2) the amount of assistance requested by any 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, direct questions regarding the specific requirements of this NOFO to the agency contact identified in section VII.

Paperwork Reduction Act Statement. In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501- 3520) (PRA), the Office of Management and Budget (OMB) approved the information collection requirements in this NOFO. 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. This NOFO identifies its applicable OMB control number, unless its collection of information is excluded from these requirements under 5 CFR part 1320.

OMB Approval Number(s):

2577-0208, 2501-0017, 2501-0033

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

1. Purpose

a. The HOPE VI Main Street Program provides grants to communities smaller than 50,000 in population to assist in the renovation of a historic, traditional central business district, or https://www.ecfr.gov/current/title-24/subtitle-A/part-4/subpart-B https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1 https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1

“Main Street” area by replacing unused, obsolete, commercial space in buildings with affordable housing units. The obsolete building space property may be publicly or privately owned. Eligible applicants under this NOFO are county governments, city or township governments, and special district governments. The local government whose jurisdiction includes the Main Street area is the only entity that is eligible to receive an award.

Applications submitted by other entities, e.g., the private property owner, are not eligible for award. Detailed eligibility information can be found in Section III.A.

b. The objectives of the program are to:

i. Redevelop central business districts (Main Street areas);

ii. Preserve historic or traditional Main Street area properties by replacing unused commercial space in buildings with affordable housing units;

iii. Enhance economic development efforts in Main Street areas; and

iv. Provide affordable housing in Main Street areas.

2. HUD and Program-Specific Goals and Objectives

This NOFO supports HUD’s Strategic Plan for Fiscal Years (FY) 2022-2026 to accomplish HUD’s mission and vision. Each of the five goals in the Strategic Plan include what HUD hopes to accomplish, the strategies to accomplish those objectives, and the indicators of success.

However, of the five goals only those applicable to this NOFO are identified below.

You are expected to align your application to the applicable strategic goals and objectives below.

Use the information in this section to describe in your application the specific goals, objectives, and measures that your project is expected to help accomplish. If your project is selected for funding, you are also expected to establish a plan to track progress related to those goals, objectives, and measures. HUD will monitor compliance with the goals, objectives, and measures in your project.

Applicable Goals and Objectives from HUD’s Strategic Plan

1. Strategic Goal 1: Support Underserved Communities Fortify support for underserved communities and support equitable community development for all people.

2. 1A: Advance Housing Justice Fortify support for vulnerable populations, underserved communities, and Fair Housing enforcement.

3. 1C: Invest in the Success of Communities Promote equitable community development that generates wealth-building for underserved communities, particularly for communities of color.

4. Strategic Goal 2: Ensure Access to and Increase the Production of Affordable Housing Ensure housing demand is matched by adequate production of new homes and equitable access to housing opportunities for all people.

5. 2A: Increase the Supply of Housing Enhance HUD's programs that increase the production and supply of housing across the country.

Applicants are expected to demonstrate in their application materials that the proposed project is:

https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas

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

2 . 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, and is free from discrimination.

3. Changes from Previous NOFO

Section I.A. Program Description – This section is updated to include HUD Strategic Plan goals and objectives, to ensure NOFOs are explicitly aligned. Programs may also include objectives, strategies and measures related to program-specific goals and expectations for applicants.

Furthermore, this section includes new definitions: Cooperative Agreement, Environmental Justice, Equity, Minority-Serving Institutions, Racial Equity, Resilience, and Underserved Communities. The following definition are removed: DUNS.

Section III.D. Threshold Eligibility Requirements – Affirmatively Furthering Fair Housing (AFFH) is removed. However, AFFH remains an application requirement under section IV.G. of the NOFO.

Section III.E. Statutory and Regulatory Requirements Affecting Eligibility – This section is updated to include applicable eligibility requirements. The related supplemental document is also updated and posted on HUD’s Funding Opportunity webpage.

Section III.F. Program-Specific Requirements – This section is updated to emphasize two requirements, to support the priorities in HUD’s Strategic Plan for FY2022-FY2026: Advancing Racial Equity and Affirmative Marketing.

Section IV.B. Content and Form of Application Submission – This section is updated to require form HUD 424-B (Applicant Assurances and Certifications).

Section IV.G. Other Submission Requirements – This section is updated to include additional submission requirements, AFFH and Code of Conduct, and to require forms HUD 424-B and HUD 2280. Also, the Federal Assistance Assurances requirements for sam.gov are included in this section of the NOFO.

Section V.A. Review Criteria – This section is updated to include preference points for Minority- Serving Institutions. Also, this section is updated to expand the review criteria for Climate Change and Environmental Justice. Further, an additional rating factor is added for affirmative marketing of proposed projects.

Section V.B. Review and Selection Process – This section is updated to include a new requirement to ensure applicants have Experience Promoting Racial Equity.

Section VI.B. Administrative, National and Departmental Policy Requirements and Terms for HUD Applicants and Recipients of Financial Assistance Awards – This section is updated to include compliance with: Secretary Fudge's April 12, 2022 directive on criminal records; equity requirements; and waste, fraud, and abuse requirements. Additionally, this section clarifies requirements related to nondiscrimination and equal opportunity. The related NOFO supplemental document is updated and posted on HUD’s Funding Opportunity webpage.

Furthermore, this section is updated to require program details related to its termination policy.

Other changes:

1. Federal Relay Service – The Federal Relay Service contract expired in February 2022. HUD no longer uses the service. The NOFO is updated to include the use of Federal Communications Commission (FCC) relay services for individuals who are deaf or hard of hearing or who have speech impairments.

2. Section IV.B. 2. Format and Form – The list of application attachments is edited for clarity.

3. A set of design best practices is added as an attachment in the Application Package for this

NOFO.

4. Definitions

a. Standard Definitions

Affirmatively Furthering Fair Housing (AFFH) means taking meaningful actions, in addition to combating discrimination to 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 opportunities, 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 program participant’s activities and programs relating to housing and urban development.

Assistance Listing number refers to the unique number assigned to each Federal assistance program publicly available in the Assistance Listing, which is managed and administered by the General Services Administration. The Assistance Listing number was formerly known as the Catalog of Federal Domestic Assistance (CFDA) number.

Authorized Organization Representative (AOR) is a person authorized to legally bind your organization and submit applications via Grants.gov. The AOR is authorized by the E-Business Point of Contact (E-Biz POC) in the System for Award Management (see E-Biz POC definition).

An AOR may include an Expanded AOR and/or a Standard AOR.

Expanded Authorized Organization Representative is a user in Grants.gov who is authorized by the E-Biz POC to perform the functions of a Standard AOR, initiate and submit applications on behalf of your organization, and is allowed to modify organization-level settings and certifications in Grants.gov.

Standard Authorized Organization Representative is a user in Grants.gov who is authorized by the E-Biz POC to initiate and submit applications in Grants.gov. A Grants.gov user with the Standard AOR role can only submit applications when they are a Participant for that workspace.

Consolidated Plan is the document submitted to HUD that serves as the comprehensive housing affordability strategy, community development plan, and submission for funding under any of the Community Planning and Development formula grant programs (e.g., CDBG, ESG, HOME, and HOPWA). This Plan is prepared in accordance with the process described in 24 CFR part 91.

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 for 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 above and in 2 CFR 200.1.

Cooperative agreement has the same meaning defined at 2 CFR 200.1.

Deficiency, with respect to the making of an application for funding, is information missing or omitted within a submitted application. Examples of deficiencies include missing documents, missing or incomplete information on a form, or some other type of unsatisfied information requirement. Depending on specific criteria, a deficiency may be either Curable or Non-Curable.

A Curable Deficiency is missing or incomplete application information that 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.

A Non-Curable Deficiency is missing or incomplete application information that cannot be corrected by an applicant after the submission deadline. A non-curable deficiency is a deficiency that is a threshold requirement, or a deficiency that, if corrected, would change an applicant’s score or rank versus other applicants. If an application includes a non-curable deficiency, the application may receive an ineligible determination, or the non-curable deficiency may otherwise adversely affect the application’s score and final funding determination.

E-Business Point of Contact (E-Biz POC) is 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 Authorized Organization Representative definition). There can only be one E-Biz POC per unique entity identifier (see definition of Unique Entity Identifier below).

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

https://www.ecfr.gov/current/title-24/subtitle-A/part-91 https://www.ecfr.gov/current/title-24/subtitle-A/part-91 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR031321e29ac5bbd/section-200.331 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200

Environmental Justice means investing in environmental improvements, remedying past environmental inequities, and otherwise developing, implementing, and enforcing laws and policies in a manner that advances environmental equity and provides meaningful involvement for people and communities that have been environmentally underserved or overburdened, such as Black and Brown communities, indigenous groups, and individuals with disabilities. This definition does not alter the requirements under HUD’s regulations at 24 CFR 58.5(j) and 24 CFR 50.4(l) implementing Executive Order 12898. E.O. 12898 requires a consideration of how federally assisted projects may have disproportionately high and adverse human health or environmental effects on minority and/or low-income populations. For additional information on environmental review compliance, refer to:

https://www.hud.gov/program_offices/comm_planning/environment_energy/regulations.

Equity has the meaning given to that term in Section 2(a) of Executive Order 13985 and means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders and other persons of color; members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

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

(1)

(a) 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

(b) 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, and this NOFO, 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 in 2 CFR 200.1.

Federal Financial Assistance has the same meaning defined at 2 CFR 200.1.

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.

https://www.ecfr.gov/current/title-24/subtitle-A/part-58/subpart-A/section-58.5 https://www.ecfr.gov/current/title-24/subtitle-A/part-50/subpart-A/section-50.4 https://www.ecfr.gov/current/title-24/subtitle-A/part-50/subpart-A/section-50.4 https://www.archives.gov/files/federal-register/executive-orders/pdf/12898.pdf https://www.hud.gov/program_offices/comm_planning/environment_energy/regulations https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200

Green and Resilient Building Standard means an industry-recognized standard incorporating both:

(1) Certification under (i) Enterprise Green Communities, (ii) Leadership in Energy and Environmental Design (LEED) (New Construction, Homes, Midrise, Existing Buildings Operations and Maintenance, or Neighborhood Development), (iii) International Code Council (ICC)-700 National Green Building Standard Green+ Resilience; or the (iv) Living Building Challenge, or (v) a regional standard such as Earth Advantage New Homes; or any other equivalent comprehensive green building program acceptable to HUD; and

(2) Minimum energy efficiency requirements, such as those defined in (i) ENERGY STAR (Certified Homes or Multifamily High-Rise), (ii) DOE Zero Energy Ready Home; (iii) regional or local certifications such as EarthCraft House, EarthCraft Multifamily; Greenpoint Rated New Home, Greenpoint Rated Existing Home (Whole House or Whole Building label); (iv) Passive House Institute Passive Building or EnerPHit certification from the Passive House Institute US (PHIUS), International Passive House Association.

Historically Black Colleges and Universities (HBCUs) are any historically Black college or university that was established prior to 1964, whose principal mission was, and is, the education of Black Americans, and that is accredited by a nationally recognized accrediting agency or association determined by the Secretary of Education to be a reliable authority as to the quality of training offered or is, according to such an agency or association, making reasonable progress toward accreditation. A list of accredited HBCUs can be found at the U.S. Department of Education’s website.

Minority-Serving Institutions (MSIs) are

(1) a part B institution (as defined in 20 U.S.C. 1061);

(2) a Hispanic-serving institution (as defined in 20 U.S.C. 1101(a)(5));

(3) a Tribal College or University (as defined in 20 U.S.C. 1059c);

(4) an Alaska Native-serving institution or a Native Hawaiian-serving institution (as defined in 20 U.S.C. 1059d(b));

(5) a Predominantly Black Institution (as defined in 20 U.S.C. 1059e);

(6) an Asian American and Native American Pacific Islander-serving institution (as defined in 20 U.S.C. 1059g); or

(7) a Native American-serving nontribal institution (as defined in 20 U.S.C. 1059f).

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.

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

Racial Equity is the elimination of racial disparities, and is achieved when race can no longer predict opportunities, distribution of resources, or outcomes – particularly for Black and Brown https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partB-sec1061.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapV-partA-sec1101a.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059c.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059d.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059e.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059f.pdf persons, which includes Black, Latino, indigenous, Native American, Asian, Pacific Islander, and other persons of color.

Promise Zones (PZs) are high poverty areas in select urban, rural and tribal communities designated from 2014-2016 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.

See Promise Zones.

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.

Resilience is a community’s ability to minimize damage and recover quickly from extreme events and changing conditions.

Small business is defined as a privately-owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than 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. See 13 CFR 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 the 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 from a federal awarding agency.

System for Award Management (SAM) is 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 at https://www.sam.gov/SAM/. There is no cost to use SAM.

Threshold Requirements are eligibility requirements that must be met for an application to be reviewed, rated, and ranked. Threshold requirements are not curable, except for documentation of applicant eligibility, which are listed in Section III.D., Threshold Eligibility Requirements.

Similarly, there are eligibility requirements under Section III.E., Statutory and Regulatory Requirements Affecting Eligibility.

Underserved Communities has the meaning given to that term in Section 2(b) of Executive Order 13985 and refers to populations sharing a particular characteristic, as well as geographic communities, that have been systematically denied a full opportunity to participate in aspects of economic, social, and civic life, as exemplified by the list in the definition of “equity” above.

Unique Entity Identifier (UEI) means the identifier assigned by SAM to uniquely identify business entities. As of April 4, 2022, the Federal government has transitioned from the use of https://www.hud.gov/program_offices/field_policy_mgt/fieldpolicymgtpz https://www.ecfr.gov/current/title-13/chapter-I/part-121?toc=1 https://www.sam.gov/SAM/ https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government the DUNS Number to the use of UEI, as the primary means of entity identification for Federal awards government-wide.

b. Program Definitions.

For purposes of the HOPE VI Main Street 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.

1. Affordable Housing. Affordable Housing means rental or homeownership dwelling units funded under this NOFO that must be rented or sold to low-income families, which may include a subset of units made available to very low-income families and extremely low-income families.

Low-income families are defined as families whose annual income is at or below 80% of the Area Median Income, as published by HUD. Income includes any income from all adult members of the resident family. Very low-income families are defined as families whose annual income is at or below 50% of the Area Median Income. Extremely low-income families are defined at 42 U.S.C. 1437a(b)(C). Further information on income can be found at 42 U.S.C.

1437a(b) and 24 CFR 5.603. The rental or sale of each unit must comply with the Main Street Use Restrictions. See "Initial Occupancy Period Requirements (Use Restrictions) Affecting Eligibility" at Section III.F.6 of this NOFO.

2. Applicant Team. Applicant Team means the group of entities that will develop the Main Street affordable housing project (Project). The team includes the unit of local government that submits the application and where applicable, the Developer, property manager, architects, construction contractors, attorneys, investment partners that are part of an owner entity and other parties that may be involved in the development and management of the Project. To be considered as part of an Applicant Team, the entity must be included in the application to this

NOFO.

3. Community and Supportive Services (CSS). HUD encourages the provision of CSS to residents of HUD-assisted housing. The purpose of these services is to help low-income families improve the quality of their lives and move toward self-sufficiency. Participation in supportive services is voluntary and cannot be required as a condition of housing. CSS may include, but are not limited to:

a. Educational life skills, job readiness and retention, employment training, and other activities as described on HUD’s HOPE VI website at https://www.hud.gov/program_offices/public_indian_housing/programs/ph/hope6/css.

b. Per Section III.E.8. of this NOFO, homeownership counseling is required if the Main Street units are Homeownership Units. These services must be scheduled to begin promptly after grant award so that to the maximum extent possible, qualified residents will be ready to purchase new homeownership units when they are completed.

c. Coordination with fair housing groups to educate the Project’s target population on nondiscrimination laws and their fair housing rights.

d. Community and Supportive Services, subject to a cap of fifteen percent (15%) of the requested grant amount.

4. Development Agreement. A Developer Agreement describes the rights and responsibilities of both the Grantee and, if procured, a Developer partner. The Developer’s role consists of seeking financing for reconfiguration, rehabilitation and/or construction of housing units, the https://www.hud.gov/program_offices/public_indian_housing/programs/ph/hope6/css.

provision of Community Services (if included in the Project) and project management up to and including rental of the Affordable Housing units.

5. Developer Team.

a. Completion of a Main Street grant may include securing and closing on project financing, completing an environmental review, creating architectural plans for the Project, hiring a construction contractor, monitoring the construction contractor, completing bookkeeping for grant income and expenses, submitting all expense receipts to HUD in order to draw down grant funds, furnishing Community and Supportive Services, and performing dozens of other activities. Normally, a Main Street applicant will not have the in-house capacity to complete all of these tasks. For this reason, it is likely that the applicant/grantee has procured, or will procure after grant award, a Developer or other development manager to complete them.

b. Procurement of such entities for Federal grants must be performed in accordance with the Code of Federal Regulations (CFR) at 2 CFR part 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.”

Procurement requirements can be found at 2 CFR 200.318 through 200.326. The CFR can be found online at http://www.ecfr.gov Once procured pursuant to part 200, subcontracting procurement by a Developer or other development manager is not subject to the procurement requirements in part 200. The local requirements applicable to the Developer or development manager may be less complex and more expeditious than direct procurement of services by the local government grantee. This is another reason why a Main Street grantee may wish to procure a Developer or other development manager.

c. When tax credits or other complex financing is required for the Project, the procurement of a Developer will probably be required in order to secure such financing and to ensure the successful completion of the project in a timely manner.

d. The Developer is usually the legal entity that has been procured, usually through a Request for Proposals (RFP) or a Request for Quotes (RFQ). After procurement, the Developer and local government applicant or grantee will fully execute a Developer Agreement that describes the rights and responsibilities of both parties. The Developer’s role consists of seeking financing for reconfiguration, rehabilitation and/or construction of housing units, the provision of Community Services (if included in the Project) and project management up to and including rental of the Affordable Housing units. Funds other than those awarded through this NOFO may be used to pay the Developer’s fee.

However, funds awarded through this NOFO must not be used to pay the developer fee.

If other federal funds are used, the federal statute or regulations governing such funds must permit their use for this purpose.

e. For development with less complicated financing (e.g., no Tax Credit syndication or bond financing), the applicant may choose to procure the services of an “other development manager” services, e.g., project manager, private property owner (if the owner is going to retain ownership of the Project), managing architect, construction manager, and design/build construction contractors in place of a Developer. The agreement that the applicant made, or grantee will make, with any of these other development managers will determine their roles and whether the grantee will directly procure other entities or whether the development manager will procure subcontractors.

http://www.ecfr.gov

Funds awarded through this NOFO may be used to reimburse fees for these services that are incurred following grant award. In this NOFO, such services are referred to as “other development manager” services.

6. Development Proposal. Prior to beginning construction or acquisition of Main Street Affordable Housing, the grantee must submit a final development proposal to HUD, which will allow HUD to assess the viability and financial feasibility of the proposed development. The development proposal must include the following information. Note that additional detail regarding the development proposal contents is included in the Grant Agreement, which will be distributed to all grantees upon award. The Grant Agreement must include the following information, as detailed in the HUD-required forms 50156 and 50157, which the grantee must complete to submit their development proposal to HUD.

a. Project description

b. Site information

c. Participating parties

d. Development project schedule

e. Project costs and financing

f. Operating pro-forma/Operating Fund methodology

g. Environmental requirements. HUD must approve the environmental review under 24

CFR part 50 prior to approving the development proposal.

h. Accessibility. All new construction and alterations of existing buildings and facilities must be done in compliance with Section 504 of the Rehabilitation Act (29 U.S.C. 794) and implementing regulations at 24 CFR part 8; Title II of the Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and implementing regulations at 28 CFR part 35; the Fair Housing Act (42 U.S.C. 3601-3619) and implementing regulations at 24 CFR part 100; and the Architectural Barriers Act of 1968 and its implementing regulations at 24 CFR part 40. HUD applies the Uniform Federal Accessibility Standards (UFAS) through its regulations under part 8. All applicable laws must be read together and followed. The grantee must provide sufficient information for HUD to determine that dwelling units and other facilities meet all applicable federal accessibility requirements, including, but not limited to, the number, location, and bedroom size distribution of accessible dwelling units (see 24 CFR 8.26, 24 CFR 8.32 and 24 CFR part 40), and any other design requirements that apply. For more information, please refer to the attached list of best practices.

i. Affirmatively Furthering Fair Housing. The applicant must provide a narrative on how the Project will affirmatively further fair housing. See Section IV.G.

j. Additional HUD-requested information. Grantees are required to provide any additional information that HUD may need to assess the development proposal.

The Development proposal is intended to allow HUD to assess the viability and financial feasibility of the proposed Main Street Affordable Housing Project.

7. Extremely Low-Income Families. The term extremely low-income families means very low-income families whose incomes do not exceed the higher of:

a. the poverty guidelines updated periodically by the Department of Health and Human Services under the authority of section 9902(2) of this title applicable to a family of the size involved (except that this clause shall not apply in the case of public housing agencies or projects located in Puerto Rico or any other territory or possession of the United States); or

b. 30 percent of the median family income for the area, as determined by the Secretary, with adjustments for smaller and larger families (except that the Secretary may establish income ceilings higher or lower than 30 percent of the median for the area on the basis of the Secretary's findings that such variations are necessary because of unusually high or low family incomes).

8. "Firmly Committed" Commitment Letters. Commitment Letters document resources designated for Match or Leverage purposes in your Main Street application. To be counted toward Match or Leverage, sources of funds must be firmly committed to either the Affordable Housing Project or the Main Street Area effort in general. Further discussion of Match and Leverage can be found in the definitions of Match and Leverage, below. To be counted as a firm commitment letter, the letter must meet the following requirements:

a. Be on the letterhead of the entity providing the funding commitment.

b. Contain the name, telephone number and email address of a contact for the entity that is providing the resource and that is familiar with the contribution toward the Main Street application.

c. Identify if the commitment is for Match or Leverage.

d. Identify if the commitment is a cash or in-kind contribution.

e. Contain the specific amount of the commitment. If an in-kind contribution, provide the market value in dollars of the commitment. If the match is a cash contribution, provide the dollar amount of the commitment.

f. The letter must be signed by a person authorized to make the commitment.

9. Homeownership Unit. Homeownership unit means a housing unit that a local government makes available under this NOFO for purchase by a low-income family to use as its principal residence.

10. Initial Occupancy Period. Initial Occupancy Period is the period of time that a rental unit is occupied by the initial low-income resident, or the period of time that a homeownership unit is owned by the initial third-party low-income purchaser. There is no set requirement for the length of this occupancy period. During this period, rental must be in accordance with Section III(F)(6) of this NOFO. In general, the initial occupant has the same rent responsibilities and rights as a public housing resident in a HOPE VI development. See 24 C.F.R. part 960 and 24 C.F.R. part 966.

11. Jurisdiction. Jurisdiction means the physical area under the supervision of the local government applicant.

12. Leverage: Allowable and Non-Allowable. Leverage means non-HOPE VI and non-Choice Neighborhoods Initiative funded donations of cash or in-kind services that are in excess of, and not included in, the five percent (5%) Match requirement of this NOFO. Leverage must be FIRMLY committed to the Project or the Main Street area redevelopment effort in general. In order to ensure that all of the applicant's sources are identified by the application reviewers, in https://1.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000546&cite=42USCAS9902&originatingDoc=N80BF909080D911ED9DCDC96565D7339A&refType=RB&originationContext=document&transitionType=DocumentItem&ppcid=3aafb126bd704d40aa8cb010729d3cfb&contextData=(sc.Search)#co_pp_58730000872b1 addition to the Firm Commitment Letter requirements, a list of Leverage resources should be included in Form HUD-52861, HOPE VI Main Street Application Data Sheet, which should be an attachment to your application.

The following types of resources may be counted:

a. Private mortgage-secured loans;

b. Other debt;

c. Housing trust funds;

d. Homeownership sales proceeds;

e. Proceeds from other projects;

f. Proceeds from existing tax increment financing (TIF) districts;

g. Tax Credit equity;

h. Federal, State or local public funds (applicant is responsible to confirm that use of funds as Leverage is allowed by the Federal or State program) except for Non-HOPE VI and non-Choice Neighborhoods;

i. Private funds; and

j. In-kind services such as Homeownership Counseling (required if Homeownership units are developed), or other materials, and the value of the real property that will be rehabilitated, provided that the ownership of such property is non-profit or Government owned.

13. Local Government or Unit of Local Government. Local government means any city, town, township, village, county, parish, or other general-purpose political subdivision of a state, Guam, the Northern Mariana Islands, the Virgin Islands, American Samoa, the District of Columbia and other United States Territories. It does not include Native American governments or Public Housing Agencies.

14. Low-Income Families. Low-Income family means a family (resident) with an income equal to or less than 80 percent of HUD’s Median Family Income for the local area, adjusted for family size, in accordance with section 3(b)(2) of the United States Housing Act of 1937, as amended (Section 8 eligibility). HUD may establish a level higher or lower than 80 percent because of the prevailing construction costs or unusually high or low family incomes in the area. “Local Area” is defined as the primary metropolitan statistical area/metropolitan statistical area (PMSA/MSA) or non-metropolitan county/parish as prescribed by HUD, in which the low-income family resides. Low-Housing Choice Voucher (Section 8) low income limits prescribed by HUD are on the Internet at https://www.huduser.gov/portal/datasets/il.html.

15. Main Street Affordable Housing Project (Project). The collection of affordable housing units that are developed in the Main Street Area using funds obtained through this NOFO and which meet the Program Requirements in Section III.A through III.E of the NOFO. The Main Street Affordable Housing Project cannot rehabilitate, replace, demolish, or otherwise dispose of public housing units.

16. Main Street Area. Main Street Area is a geographic area determined by the applicant, and https://www.huduser.gov/portal/datasets/il.html https://www.huduser.gov/portal/datasets/il.html#2017_data designated on the map attachment to the application, that fulfills the Program Specific Requirements Affecting Eligibility Section III F.2. of this NOFO, and:

a. Is within the jurisdiction of the Local Government applicant;

b. Has specific boundaries that are determined by the applicant; and

c. Is or was:

i. Traditionally the central business district and center for socio-economic interaction;

ii. Characterized by a cohesive core of historic and/or older commercial and mixed-use buildings often interspersed with civic, religious, and residential buildings which represent the community’s architectural heritage; and

iii. The location of a downtown or “Main Street” existing rejuvenation effort that:

(1) Has as its purpose the revitalization or redevelopment of the historic or traditional commercial area;

(2) Involves investment or other participation by the applicant and private parties in the community in which the Project is located; and

(3) Involves the development of affordable housing that is in the Main Street area.

17. Match. Grantee must supplement the aggregate amount of assistance provided under the Grant with an amount of funds from sources other than HOPE VI or Choice Neighborhoods funds equal to (not less than) 5 percent of the requested grant amount; Such match funds must be used only for carrying out eligible affordable housing activities that relate to the Main Street affordable housing project.

18. Operating Pro Forma (“pro forma”). The Five-Year Operating Pro Forma is a projection that shows the income and expenses for the first five operating years of a rental project. The purpose of the pro forma is to show that the project will be financially viable over the long-term.

The pro forma includes year-by-year estimates of Project income and expenses, accounting for Use Restriction changes and economic adjustments. The pro forma must show the affordable rents for this five-year period, assuming a five-year period of initial occupancy. Form HUD- 52861, Main Street Data Sheet, includes a tab to enter income and expense assumptions and a separate tab that includes the pro forma. Applicants must enter information into both tabs.

19. Owner Entity. The legal entity that holds the title to the real property that contains any affordable housing units developed through this NOFO.

20. Site Control. Site Control means that the Local Government applicant, its Developer or other development partner has the legal authority to commit the owner of the property to the rehabilitation to be performed with grant funds from this NOFO. Examples of site control are:

a. The Local Government applicant owns the property outright;

b. The private owner entity of the property will be the Developer and has a signed

Development Agreement with the applicant providing site control;

c. The applicant or private owner entity has signed an agreement with a third-party Developer and the Development Agreement gives the developer site control;

d. The applicant, Developer or other development partner has an option to purchase the property from a private owner entity that covers a time period sufficient to obtain grant funds for purchase and environmental review approval (at least 180 days after the estimated award date), and is contingent only upon receipt of a grant from this NOFO and satisfactory compliance with this NOFO’s environmental review requirements;

e. A member of the applicant team's for-profit subsidiary, the private owner entity or the Developer with site control has formed a limited partnership for Tax Credit purposes.

f. The applicant, Developer, private owner entity or other development partner holds a long term ground lease on the property.

21. Total Development Cost (TDC). Annually, HUD publishes a list of reasonable development costs for each size and type of public housing unit to be developed. Costs are included for Cities or Counties/Parishes where HUD performs public housing development.

TDCs are used for two purposes in this NOFO:

a. As a cost control requirement (see Section IV of this NOFO), and

b. As the basis for the initial determination of the grant amount.

The following documents and workbooks are available at http://www.hud.gov/mainstreet/:

a. HUD's official table of FY2023 TDC amounts. The maximum amount of funding requested must not exceed HUD’s published Total Development Cost (TDC) for the unit mix to be developed, up to the maximum amount of an award stated in this NOFO; and

b. TDC Calculator Form HUD-52861, HOPE VI Main Street Application Data Sheet.

HUD has developed TDCs for metropolitan areas and large cities, but not for small, non-metropolitan cities and towns. If the applicant's location is not listed, the applicant is advised to contact their local HUD Public Housing Field Office to determine their TDC State and City or reach out to Susan Wilson, Director of Urban Revitalization at Susan.Wilson@hud.gov.

22. Use Restrictions. Housing units developed with funds from this NOFO have rental amount, eviction and other restrictions for the initial resident of each of those units. See “Initial Occupancy Period Requirements” under "Program Specific Requirements Affecting Eligibility" at Section III.F. of this NOFO. After an initial resident moves out of the Project, or sells a Homeownership unit, Use Restrictions are removed from that unit and it becomes market rate.

23. Very Low-Income Family. Very low-income family means a family or resident with an income not to exceed 50 percent of HUD’s Median Family Income for the local area adjusted for family size, in accordance with Section 3(b)(2) of the United States Housing Act of 1937, as amended. HUD may establish a level higher or lower than fifty percent (50%) because of prevailing construction costs or unusually high or low family incomes in the area.