FY 2021 and FY 2022 Rural Capacity Building for Community Development and Affordable Housing Grants.pdf

U.S. Department of Housing and Urban Development

Community Planning and Development

FY 2021 and FY 2022 Rural Capacity Building for Community Development and Affordable

Housing Grants (RCB)

FR-6600-N-08

10/11/2022

Table of Contents

Summary

Overview

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

B. Authority

II. Award Information

A. Available Funds

B. Number of Awards

C. Minimum/Maximum Award Information

D. Period of Performance

E. Type of Funding Instrument

III. Eligibility Information

A. Eligible Applicants

B. Ineligible Applicants

C. Cost Sharing or Matching

D. Threshold Eligibility Requirements

E. Statutory and Regulatory Requirements Affecting Eligibility

F. Program-Specific Requirements

G. Criteria for Beneficiaries

IV. Application and Submission Information

A. Obtaining an Application Package

B. Content and Form of Application Submission

C. System for Award Management (SAM) and 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 Department Policy Requirements and Terms for HUD

Recipients Financial Assistance Awards

C. Reporting

D. Debriefing

VII. Agency Contact(s)

VIII. Other Information

APPENDIX

Program Office:

Community Planning and Development

Funding Opportunity Title:

FY 2021 and FY 2022 Rural Capacity Building for Community Development and Affordable

Housing Grants (RCB)

Funding Opportunity Number:

FR-6600-N-08

Assistance Listing Number:

14.265

Due Date for Applications:

10/11/2022

Summary

The U.S. Department of Housing and Urban Development (HUD) Strategic Plan sets the direction and focus of ourprograms and staff to create strong, sustainable, inclusive communities and quality, affordable homes for all.

HUD's Strategic Goals

HUD’s FY 2022-2026 Strategic Plan lays out this administration’s strategy for ensuring everyone has an affordable,healthy place to live. Over the course of the next four years HUD will pursue two overarching priorities focused on increasing equity and improving customer experience across all HUD programs. Five strategic goals undergird the Plan as follows:

• Strategic Goal 1: Support Underserved Communities

• Strategic Goal 2: Ensure Access to and Increase the Production of Affordable Housing

• Strategic Goal 3: Promote Homeownership

• Strategic Goal 4: Advance Sustainable Communities

• Strategic Goal 5: Strengthen HUD’s Internal Capacity

The five goals of the FY 2022-2026 Strategic Plan present the core vision of what we hope to accomplish, the strategies to accomplish those objectives, and the indicators of success.

Overview

The U.S. Department of Housing and Urban Development (HUD) issues this Notice of Funding

Opportunity (NOFO) to invite applications from eligible applicants for the program and purpose described within this NOFO. Prospective applicants should carefully read all instructions in all sections to avoid sending an incomplete or ineligible application. HUD funding is highly competitive. Failure to respond accurately to any submission requirement could result in an incomplete or noncompetitive proposal.

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

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

Paperwork Reduction Act Statement. The information collection requirements in this notice have been approved by OMB under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-

3520). In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to a collection of information unless the collection displays a valid OMB control number. Each NOFO will identify its applicable OMB control number unless its collection of information is excluded from these requirements under 5 CFR part 1320.

OMB Approval Number(s):

2506-0195 Pending OMB approval

I. FUNDING OPPORTUNITY DESCRIPTION.

A. Program Description.

• Purpose

Purpose: The Rural Capacity Building program enhances the capacity and ability of rural housing development organizations, Community Development Corporations (CDCs), Community Housing Development Organizations (CHDOs), local governments, and Indian tribes (eligible beneficiaries) to carry out affordable housing and community development activities in rural areas for the benefit of low- and moderate-income families and persons. The

Rural Capacity Building program achieves this by funding National Organizations with expertise in rural housing and rural community development who work directly to build the capacity of eligible beneficiaries.

• Changes from Previous NOFO.

The Fiscal Year (FY) 2021 and Fiscal Year (FY) 2022 combined Rural Capacity Building

(RCB) program NOFO contains a few small changes. Among them, applicants will now be requested to provide a Leverage Summary requesting specific information regarding the leverage contribution. A sample format for the Leverage Summary has been added to the NOFO. There are no programmatic changes in the FY 2021/FY 2022 RCB NOFO. Specific changes are as follows:

• Minimum and Maximum Award Amounts: The maximum award amounts have decreased from $3.25 million to $2.5 million.

• Leverage Summary: Applicants will now be requested to provide specific information regarding leverage contributions and given a sample format to use.See rating Factor 5

Leverage Resources for additional information and for a sample Leverage Summary table.

• Attachments: The Multi-Year Budget Form HUD Form 4130 (Required) has been made available to applicants in an Excel spreadsheet for ease of use.

• Preference Points: Preference points for this NOFO have been updated to reflect HUD priorities for FY 2022. Opportunity Zone has been removed from this NOFO.

Environmental Justice preference points have been added to this NOFO.

https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1

• A New Rating Factor has been added to the NOFO addressing Underserved communities and Fair housing (Rating Factor 3).

• Definitions for equity and underserved communities has been added to this NOFO.

To improve your chances of success, please be sure to read this announcement fully and carefully, and respond to all the elements in each factor.

• Definitions.

a. Standard Definitions

Affirmatively Furthering Fair Housing (AFFH). 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 publicly available listing of Federal assistance programs managed and administered by the General Services Administration, formerly known as the Catalog of Federal Domestic Assistance (CFDA). Assistance Listing is a unique number assigned to identify a Federal Assistance Listings, formerly known as the CFDA

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

424.

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

Deficiency is information missing or omitted within a submitted application. Examples of deficiencies include missing documents, information on a form, or some other type of unsatisfied information requirement. Depending on specific criteria, deficiencies may be either Curable or

Non-Curable.

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

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

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

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

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

Non-Curable Deficiencies cannot be corrected by an applicant after the submission deadline.

Non-curable deficiencies are deficiencies that, if corrected, would change an applicant’s score or rank versus other applicants. Non-curable deficiencies may result in an application being marked ineligible, or otherwise adversely affect an application’s score and final determination.

DUNS Number is the nine-digit Dun and Bradstreet Data Universal Number System identification number assigned to a business or organization by Dun & Bradstreet and provides a means of identifying business entities on a location-specific basis.

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

The E-Biz POC is likely to be an organization's chief financial officer or authorizing official. The

E-Biz POC authorizes representatives of their organization to apply on behalf of the organization

(see Standard AOR and Expanded AOR). There can only be one E-Biz POC per DUNS Number.

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

Expanded Authorized Organization Representative (AOR) An AOR is a member of your organization authorized by the EBiz POC to submit applications in Grants.gov on behalf of the organization. An applicant user with the Expanded AOR role is authorized to submit any applications on behalf of the organization and has privileges that allow the user to modify organization-level settings in Grants.gov.

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

1. Grants;

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

U.S.C. 3710a)).

3. Loans;

4. Loan guarantees;

5. Subsidies;

6. Insurance;

7. Food commodities;

8. Direct appropriations;

9. Assessed and voluntary contributions; and

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

11. Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in section 200.502(h) and (i). (2 CFR 200.1)

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

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

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

2. The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definitions of Federal financial assistance in 2 CFR §200.1, 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.

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.

Historically Black Colleges and Universities (HBCUs) The Higher Education Act of 1965, as amended, defines an HBCU as: “…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.” HBCUs offer all students, regardless of race, an opportunity to develop their skills and talents.

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.

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

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

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-F/subject-group-ECFRfd0932e473d10ba/section-200.502 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 http://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 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.hud.gov/program_offices/field_policy_mgt/fieldpolicymgtpz

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

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

The definition of “small”—in terms of being able to apply for government support and qualify for preferential tax policy—varies by country and industry. The U.S. Small Business

Administration defines a small business according to a set of standards based on specific industries. See 13 CFR Part 121.

Standard Authorized Organization Representative (AOR) An AOR is a member of your organization authorized by the EBiz POC to submit applications in Grants.gov on behalf of the organization. An applicant user with the Standard AOR role can only submit applications when they are a Participant of that workspace.

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

Eligibility.

Unique Entity Identifier (UEI) means the identifier assigned by SAM to uniquely identify business entities.

• Program Definitions.

Eligible Applicant: The National Organization (defined in this RCB NOFO) applying for funding under this funding announcement. There are two types of applicants:

1. New Applicants: National Organizations that have not been awarded RCB program funds in the past five years, from FY 2016 to FY 2019/2020.

2. Currently Funded Applicants: National Organizations that have been awarded one or more RCB program grants, in grant years FY 2016 to FY 2019/2020.

Eligible Beneficiary: A local organization of one of the following types that serves a rural area(s): rural housing development organization, Community Development Corporation (CDC), https://www.ecfr.gov/current/title-13/chapter-I/part-121?toc=1 https://www.sam.gov/SAM/

Community Housing Development Organization (CHDO), Local government, and/or Indian tribe.

Equity: Equity means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian

Americans and Pacific Islanders and other persons of color; members of religious minorities;

lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities;

persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

Capacity Building: Capacity building is support, investment, or training used to increase an eligible beneficiary's level of operational, programmatic, financial, or organizational capability, so it may more effectively and efficiently implement its mission. It is a process in which eligible beneficiaries improve and increase skills, knowledge, tools, and other resources needed to serve low- and moderate- income families in local communities that need increased or improved affordable housing and community development.

Community Development Corporation (CDC):

1. A CDC is a nonprofit organization that meets these qualifications:

a. Is organized under Federal, State, or local law to engage in community development activities (which may include housing and economic development activities) primarily within an identified geographic area of operation;

b. Is governed by a board of directors composed of community residents, business leaders and civic leaders;

c. Has as its primary purpose the improvement of the physical, economic or social environment of its geographic area of operation by addressing one or more critical problems of the area, with particular attention to the needs of persons of low income;

d. Is neither controlled by, nor under the direction of, individuals or entities seeking to derive profit or gain from the organization;

e. Has a tax exemption ruling from the Internal Revenue Service under section

501(c)(3) or (4) of the Internal Revenue Code of 1986 (26 CFR 1.501(c)(3)-1);

f. Has standards of financial accountability that conform to 2 CFR 200.302, "Financial

Management" and 2 CFR 200.303, "Internal Controls"; and

g. Is not an agency or instrumentality of a State or local government.

2. At the request of a recipient, HUD may determine that a nonprofit organization that does not qualify under paragraph 1(a) through (g) is a CDC if

a. It is a Small Business Administration (SBA) approved Section 501 State

Development Company, or an SBA Certified Section 503 Company under the Small

Business Investment Act of 1958, as amended (P.L. 85-699), or

b. The recipient demonstrates to the satisfaction of HUD, through the provision of information regarding the organization’s charter and by-laws, that the organization is sufficiently similar in purpose, function, and scope to those entities qualifying under paragraphs 1(a) through (g) of this definition, or

c. It is a State or locally chartered organization; however, the State or local government may not have the right to appoint more than one-third of the membership of the organization’s governing body and no more than one-third of the board members may be public officials or employees of the State or local government entity chartering the organization. Board members appointed by the State or local government may not appoint the remaining two-thirds of the board members.

Community Housing Development Organization (CHDO): A CHDO is defined in the HOME

Investment Partnerships Program regulation (HOME Program) at 24 CFR 92.2. The HOME

Program is authorized by the HOME Investment Partnerships Act at title II of the Cranston-

Gonzalez National Affordable Housing Act, as amended, 42 U.S.C. 12701 et seq.

Consultant: An individual who is tasked with providing valuable and pertinent advice generally drawn from a high degree of broad administrative, professional, or technical knowledge or experience. The grantee must determine whether a consultant is a subrecipient or a contractor.

Family: Family refers to the definition of "family" in 24 CFR 5.403. Family includes, but is not limited to, the following, regardless of actual or perceived sexual orientation, gender identity, or marital status:

1. A single person, who may be an elderly person, displaced person, disabled person, near-elderly person, or any other single person; or

2. A group of persons residing together, and such group includes, but is not limited to:

a. A family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family);

b. An elderly family;

c. A near-elderly family;

d. A disabled family;

e. A displaced family; and

f. The remaining member of a tenant family.

Household: Household means all the persons occupying a housing unit. The occupants may be a family as defined in 24 CFR 5.403; two or more families living together, or any other group of related or unrelated persons who share living arrangements, regardless of actual or perceived sexual orientation, gender identity, or marital status.

Local government: To be an eligible beneficiary of the RCB program, a local government must be located in a rural area, or be serving rural areas within its jurisdiction. State governments and statewide agencies are not considered local governments.

Low- and moderate-income household: Low- and moderate-income household means a household having an income equal to or less than the Section 8 low-income limit established by

HUD, which means a household whose income does not exceed 80 percent of the Area Median

Income (AMI).

Low- and moderate-income person: Low- and moderate-income person means a member of a family having an income equal to or less than the Section 8 low-income limit established by

HUD, which means an individual whose income does not exceed 80 percent of the AMI.

Unrelated individuals will be considered as one-person families for this purpose.

Low-income household: Low-income household means a household having an income equal to or less than the Section 8 very low-income limit established by HUD, which means a household whose income does not exceed 50 percent of the AMI.

Low-income person: Low-income person means a member of a family that has an income equal to or less than the Section 8 very low-income limit established by HUD, which means an individual whose income does not exceed 50 percent of the AMI. Unrelated individuals shall be considered as one-person families for this purpose.

National Organization: For the purpose of the RCB program, a National Organization must be a single 501(c)(3) non-profit organization, other than an institution of higher education, that has experience conducting RCB eligible capacity building activities in rural areas with RCB eligible beneficiaries serving high need rural communities, as evidenced by work within the last ten years in at least eight of HUD’s Federal regions. Having relevant experience working in one state in a HUD Federal region is sufficient for counting that region towards the eight-region minimum. HUD’s Federal regions are described on HUD’s website at:

http://portal.hud.gov/hudportal/HUD?src=/localoffices/regions.

Outcomes: Results achieved, or benefits derived from the capacity building activity conducted, typically demonstrated by the eligible beneficiary. Some examples include an ability to maintain a full-time paid staff person, increased amount of affordable homes in a beneficiary's portfolio, or success in building the beneficiary's loan portfolio to conduct community development.

Outputs: Deliverables such as products created, grants made, individuals served, or trainings delivered that are usually quantified by number produced, number delivered, number of attendees, etc. Outputs do not measure a change in a beneficiary's capacity directly, but they do identify what the grantee has done with the program funds.

Rural Area: A rural area is a statistical geographic entity delineated by the Census Bureau that does not meet the definition of an urbanized area. An urbanized area is a statistical geographic entity delineated by the US Census Bureau, consisting of densely settled census tracts and blocks and adjacent densely settled territory that together contain at least 50,000 people. As of the 2010 decennial census, the United States contained 486 urbanized areas with an additional 11 in

Puerto Rico. For more information about urbanized areas, including maps, FAQs, and reference manuals, please refer to this Census Bureau website - https://www.census.gov/programs-surveys/geography/guidance/geo-areas/urban-rural.html.

http://portal.hud.gov/hudportal/HUD?src=/localoffices/regions https://www.census.gov/programs-surveys/geography/guidance/geo-areas/urban-rural.html https://www.census.gov/programs-surveys/geography/guidance/geo-areas/urban-rural.html

To demonstrate that a beneficiary complies with the rural area requirement, grantees will be expected to implement a review process to confirm that the proposed rural beneficiary is located geographically within an eligible rural area or, as a result of RCB assistance, will be commencing or expanding service in an eligible rural area. HUD has created a mapping tool for grantees to utilize in assessing a beneficiary’s compliance with the rural area definition. The mapping tool is posted on HUD’s RCB grant program webpage -https://www.hud.gov/program_offices/comm_planning/section-4. Scroll to the bottom of the page where Resources are listed and select Rural Beneficiary Mapping Tool.

Rural Housing Development Organization (RHDO):

1. An RHDO is a nonprofit organization that undertakes eligible RCB Program activities, as defined in this NOFO, and that meets these qualifications:

a. Is a nonprofit with a tax exemption ruling from the Internal Revenue Service under section 501(c)(3) of the Internal Revenue Code of 1986 (26 CFR 1.501(c)(3)-1);

b. Is organized to engage in housing and community development activities (which may include housing and economic development activities) focused on the improvement of the physical, economic or social environment of its identified rural geographic area of operation, with particular attention to the needs of persons of low income;

c. Is neither controlled by, nor under the direction of, individuals or entities seeking to derive profit or gain from the organization;

d. Has, or is actively working to have, standards of financial accountability that conform to

2 CFR 200.302, "Financial Management" and 2 CFR 200.303, "Internal Controls"; and

e. Is not an agency, department, or instrumentality of a Federal, State, or local government.

RHDOs may be organizations that are working to establish themselves as official CDCs or

CHDOs. RHDOs must be organizations that are either currently engaged in housing development as a primary part of their mission, or that are actively working to build their capacity to complete housing development projects.

Underserved Communities: The term “underserved communities” 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 preceding definition of “equity.”

B. Authority.

The $10 million in Rural Capacity Building for Community Development and Affordable

Housing program funds made available through this FY2021-2022 NOFO are authorized by the

Consolidated Appropriations Act, 2021 (Public Law 116-260, approved on December 27, 2020) and Consolidated Appropriations Act, 2022 (Public Law 117-103, approved on March 15, 2022).

II. Award Information.

A. Available Funds

Funding of approximately $10,000,000 is available through this NOFO.

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

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

B. Number of Awards.

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

C. Minimum/Maximum Award Information

Estimated Total Funding:

$10,000,000

Minimum Award Amount:

$1,250,000

Per Budget Period

Maximum Award Amount:

$2,500,000

Per Budget Period

D. Period of Performance

Estimated Project Start Date:

01/17/2023

Estimated Project End Date:

01/17/2027

Length of Project Periods:

Other

Length of Periods Explanation of Other:

48-month Budget period and project period.

E. Type of Funding Instrument.

Funding Instrument Type:

G (Grant)

HUD will enter into a grant agreement with selected applicants for the period of performance.

III. Eligibility Information.

A. Eligible Applicants.

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

Additional Information on Eligibility

Only National Organizations that are 501(c)(3) nonprofits, other than institutions of higher education, may apply for RCB funding.

For the purpose of the RCB program, a National Organization must be a single non-profit organization that has ongoing experience conducting RCB eligible capacity building activities in rural areas with RCB eligible beneficiaries serving high need rural communities, as evidenced by work within the last ten years in at least eight of HUD’s Federal regions. Having relevant experience working in one state in a HUD region is sufficient for counting that region towards the eight-region minimum. HUD’s Federal regions are described on HUD’s website at:

http://portal.hud.gov/hudportal/HUD?src=/localoffices/regions

B. Ineligible Applicants.

The following non-exhaustive list of organizations are ineligible to apply for RCB program funds:

• Government Entities;

• Institutions of Higher Education;

• For profit organizations;

• Nonprofit organizations that do not meet the definition of National organization; and

• Individuals.

C. Cost Sharing or Matching.

This Program does not require cost sharing or matching, but provides points based on leverage as describe below.

There is no match requirement under the Rural Capacity Building program. However, applicants are encouraged to secure leverage, or voluntary committed cost sharing as defined in 2

CFR §200.1, from non-Federal public, private, and/or nonprofit sector resources (such as financing, supplies, or services). Applicants who submit evidence of leverage will receive credit in the review of their application. The pledged leverage becomes a binding requirement of the award. Documentation of leverage through Letters of Firm Commitment and a Leverage

Summary must meet the requirements outlined in Rating Factor 5 of this NOFO.

If the anticipated leverage is not provided, HUD will re-assess the application with the corrected leverage commitment. If the application is no longer fundable after re-rating and re-ranking the application, HUD will rescind the grant and recapture grant funds. Leverage funds must be used for RCB eligible activities in approved action plan activities, and are subject to the same rules and requirements set forth in this NOFO, including a prohibition on fees or profit. In addition, loans made with non-RCB funds that a beneficiary must repay are not considered leverage. However, if the loan is offered at below market interest rates, the cost difference between the lower interest rate and the market interest rate can be accepted as leverage with proper documentation.

The RCB Program does not allow Federal sources to be used as leverage. All leverage funds, including in-kind contributions, must conform to the requirements of 2 CFR Part 200.1 and 2

CFR 200.306. Leverage sources may come from public (non-Federal), private, and nonprofit sources, including, but not limited to:

1. State and local housing finance agencies;

2. Local Governments;

3. Foundations;

http://portal.hud.gov/hudportal/HUD?src=/localoffices/regions

4. Government Sponsored Enterprises such as the Federal Home Loan Banks, Fannie Mae, and Freddie Mac;

5. Colleges and universities;

6. Financial institutions or banks; and

7. Other private funders.

Once an RCB award is made, the grantee will be required to show evidence through semi-annual reports and the final closeout report to HUD that the amount of committed leverage was actually received and used for the intended purpose. Subject to HUD approval, sources of leverage funds may be substituted with other eligible leverage sources after grant award, as long as the total dollar commitment is met.

D. Threshold Eligibility Requirements.

Applicants who fail to meet any of the following threshold eligibility requirements will be deemed ineligible. Applications from ineligible applicants will not be evaluated.

1. Resolution of Civil Rights Matters. Outstanding civil rights matters must be resolved before the application deadline. Applicants, who after review are confirmed to have civil rights matters unresolved at the application deadline, will be deemed ineligible. Their applications will receive no further review, will not be rated and ranked, and they will not receive funding.

a. Applicants having any of the charges, cause determinations, lawsuits, or letters of findings referenced in subparagraphs (1) – (5) that have not been resolved to HUD’s satisfaction before or on the application deadline date are ineligible for funding. Such matters include:

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, 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 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; 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.

2. Affirmatively Furthering Fair Housing. With some exceptions for federally recognized

Indian tribes and their instrumentalities, the application must discuss how the applicant will carry out the proposed activities in a manner that affirmatively furthers fair housing in compliance with the Fair Housing Act and its implementing regulations. Applicants may propose activities that are consistent with their jurisdiction’s Analysis of Impediments (AI), an Assessment of Fair

Housing (AFH), or other means of fair housing planning that meaningfully supports their AFFH certification.

If the applicant will carry out proposed activities in a jurisdiction with an accepted Assessment of Fair Housing (AFH), the proposed activities should be consistent with the AFH's fair housing goals and with fair housing strategies specified in the jurisdiction’s Consolidated Plan or Public

Housing Agency Plan.”

3. Timely Submission of Applications. Applications submitted after the deadline stated within this NOFO that do not meet the requirements of the grace period policy will be marked late. Late applications are ineligible and will not be considered for funding. See Section IV. D. Application

Submission Dates and Times.

3. As stated in Section III.A of this NOFO, to be eligible for funding for the RCB program, the applicant must qualify as an eligible national organization. To accomplish this, the applicant must provide evidence of:

1. Non-Profit Status: The applicant must be a non-profit entity with active 501(c)(3) status, and not an institution of higher education. Applicants must provide proof of their nonprofit tax-exempt status by attaching a copy of the organization’s IRS determination letter showing its status as a 501(c)(3) tax-exempt entity. HUD will also verify the organization's non-profit status using the IRS's Exempt Organizations select check tool found at https://apps.irs.gov/app/eos/.

2. National Organization Status: The applicant must be a National Organization according to the definition provided in Section I.A of this NOFO. To meet the National

Organization threshold requirement, the applicant must provide evidence of the national scope of its specific, relevant work within the last 10 years conducting eligible activities in rural areas with eligible beneficiaries in at least eight HUD regions. To do this, https://apps.irs.gov/app/eos/ applicants must present the following evidence to establish eligibility as a National

Organization:

o Threshold Summary: A Threshold Summary must be included at the beginning of the narrative portion of the application and it will count against the narrative page limit.

HUD reserves the right to review publicly available information (e.g., organizational website, IRS website https://apps.irs.gov/app/eos/) to verify that application materials are consistent with such information.

To accurately determine the applicant's eligibility, the Threshold Summary must clearly identify specific activities and cite the:

• HUD Region where the activity was conducted;

• State(s) within the HUD Region where the activity was conducted;

• Type and mode (e.g. onsite, online, etc.) of eligible activity (e.g. loans, grants, trainings);

• Name and type of eligible beneficiary of the activity;

• Year(s) the activity was conducted (years must be specific; do not cite any activity older than 10 years.); and

• Amount of funding expended on this activity.

The excerpted table below is an example of how applicants can present their Threshold Summary with specific examples of recent and ongoing experience:

HUD Region

Represented

State(s)Served within the HUD

Region

Type and

Mode of

Eligible

Activity

Name and Type of

Beneficiary(ies)

Served (no more than

5 examples for each)

Specific

Year(s)

Conducted

Total

Amount of

Funding for this

Activity

8 MT Grant: Direct provision of funds following an

RFP process

My Town CDC, CDC

2019 $15,000

5 WI, MN

Grant: Direct provision of funds following an

RFP process

Your Town, Inc., CHDO, Happy Meadow, Inc., CDC

Town of Smallville, local government

2014, 2015, $50,000 https://apps.irs.gov/app/eos/)%20to%20verify%20that%20application%20materials%20are%20consistent%20with%20such%20information.

7 MO

Training:

Onsite

Homes for Our

Town, Rural Housing

Development

Organization

Building our

Community, CDC

2016 $17,000

If a single activity or type of activity was conducted in multiple HUD regions, or if the beneficiaries crossed HUD regions, please list the activity separately such that only one HUD

Region is represented per row. To establish national scope, applicants need only present one example of relevant work that meets the criteria for a National Organization for each of the minimum eight regions that they have worked in. In addition, it is expected that the work presented in this Threshold Summary will be consistent with the applicant's narrative in Factor 1 for experience. The Threshold Summary will not affect the applicant's overall score on the application; it will only be used to determine the organization's eligibility to apply for RCB program funding.

As a reminder, the Threshold Summary should be included at the beginning of the applicant's program narrative prior to the response to the Six Factors.

E. Statutory and Regulatory Requirements Affecting Eligibility.

Eligibility Requirements for Applicants of HUD’s Grants Programs

The following requirements affect applicant eligibility. Detailed information on each requirement is posted on HUD’s Funding Opportunities Page.

• Active Prime and Sub Recipient registration with SAM.gov

• Outstanding Delinquent Federal Debts

• Debarments or Suspensions, or both

• Pre-selection Review of Performance

• Sufficiency of Financial Management System

• False Statements

• Mandatory Disclosure Requirement

• Prohibition Against Lobbying Activities

• In addition, each applicant under this NOFO must have the necessary processes and systems in place to comply with the Award Term in Appendix A of 24 CFR part 170 if the applicant receives an award, unless an exception applies as provided in 2 CFR

170.110.

F. Program-Specific Requirements.

Purpose: The Rural Capacity Building program enhances the capacity of rural housing development organizations, Community Development Corporations (CDCs), Community

Housing Development Organizations (CHDOs), local governments, and Indian tribes (eligible beneficiaries) to carry out affordable housing and community development activities in rural areas for the benefit of low- and moderate-income families and persons. The Rural Capacity

Building program achieves this by funding National Organizations with expertise in rural https://www.hud.gov/sites/dfiles/SPM/documents/EligibilityRequirementsGrantProgramsFiscalYear2022.pdf https://www.ecfr.gov/current/title-25/chapter-I/subchapter-H/part-170 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-170/subpart-A/section-170.110 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-170/subpart-A/section-170.110 housing and rural community development who work directly to build the capacity of eligible beneficiaries.

Eligible Program Activities. RCB program funds are limited to capacity building activities that strengthen the organizational infrastructure, management, and governance capabilities of eligible beneficiaries serving rural areas. Through these activities, eligible beneficiaries increase their capacity to carry out community development and affordable housing activities that benefit low-income or low- and moderate-income families and persons in rural areas.

1. Training, education, support, and advice to eligible beneficiaries 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 in rural areas.

Support and advice includes types of technical assistance including but limited to conferences, toolkits, training materials and direct consultation. Examples of this include, but are not limited to, building the capacity of eligible beneficiaries to:

o Conduct an organizational assessment;

o Engage in strategic planning and Board development;

o Access and implement technological improvements;

o Engage with rural community stakeholders;

o Evaluate performance of current and planned rural community efforts;

o Plan for the use of available rural resources in a comprehensive and holistic manner;

o Participate in HUD planning efforts to ensure rural participation and the assessment of rural area needs; and o Foster regional planning efforts by connecting local, rural community plans with neighboring communities.

2. Financial Assistance including pass-through grants, loans, or other financial assistance to eligible beneficiaries 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 in rural areas.

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 tasks directly related to the grantee's management of the RCB program. Some examples of reasonable administrative activities specific to the management of the RCB program include the preparation of RCB action plans, preparation of RCB program reports, and management of the implementation of the first and second eligible activities. To qualify under the third listed eligible activity, the activity must first be proposed in an action plan, and then reviewed and approved by HUD through the action plan process after a grant award is made; thus, it should not be proposed through this application.

Any activities proposed in this application that do not fall under the first and second eligible activity, or the single accepted administrative task under the third eligible activity, will be considered ineligible activities for the review of this application and will not be reviewed in the assessment in Factor 4, Soundness of Approach and Factor 6, Achieving Results and Program

Evaluation. Any inclusion of ineligible activities will cause the reduction of points in Factors 4 and 6.

Any RCB-funded activity that results in the creation of intangible property, including but not limited to the creation of curriculum, trainings, data or research findings will be held to the rules at 2 CFR 200.315 where by 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.