FY21 SHOP NOFO.pdf

U.S. Department of Housing and Urban Development

Community Planning and Development

Self-Help Homeownership Opportunity Program (SHOP)

FR-6500-N-19

08/23/2021

Table of Contents Overview

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

B. Authority

II. Award Information

A. Available Funds

B. Number of Awards

C. Minimum/Maximum Award Information

D. Period of Performance

E. Type of Funding Instrument

III. Eligibility Information

A. Eligible Applicants

B. Ineligible Applicants

C. Cost Sharing or Matching

D. Threshold Eligibility Requirements

E. Statutory and Regulatory Requirements Affecting Eligibility

F. Program-Specific Requirements

G. Criteria for Beneficiaries

IV. Application and Submission Information

A. Obtaining an Application Package

B. Content and Form of Application Submission

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

D. Application Submission Dates and Times

E. Intergovernmental Review

F. Funding Restrictions

G. Other Submission Requirements

V. Application Review Information

A. Review Criteria

B. Review and Selection Process

VI. Award Administration Information

A. Award Notices

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

C. Reporting

D. Debriefing

VII. Agency Contact(s)

VIII. Other Information

APPENDIX

Program Office:

Community Planning and Development Funding Opportunity Title:

Self-Help Homeownership Opportunity Program (SHOP) Funding Opportunity Number:

FR-6500-N-19

Primary CFDA Number:

14.247 Due Date for Applications:

08/23/2021 Overview The U.S. Department of Housing and Urban Development (HUD) issues this Notice of Funding Opportunity (NOFO) to invite applications from eligible applicants for the program and purpose described within this NOFO. Prospective applicants should carefully read all instructions in all sections to avoid sending an incomplete or ineligible application. HUD funding is highly competitive. Failure to respond accurately to any submission requirement could result in an incomplete or noncompetitive proposal.

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

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

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

OMB Approval Number(s):

2506-0157

I. FUNDING OPPORTUNITY DESCRIPTION.

A. Program Description.

1. Purpose The Self-Help Homeownership Opportunity Program (SHOP) awards grant funds to eligible national and regional non-profit organizations and consortia to purchase home sites and develop or improve the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income persons and families. Through this NOFO, HUD is making $10,000,000 of FY2021 SHOP grant funds available to national and regional non-profit organizations and consortia. SHOP units must be decent, safe, and sanitary non-luxury dwellings that comply with state and local codes, ordinances, and zoning requirements, and with all other SHOP requirements.

Only national and regional non-profit organizations and consortia with experience providing self-help homeownership housing programs are eligible to apply. Applicants must propose to use a significant amount of SHOP grant funds in at least two states. Individuals are not eligible applicants for SHOP grant funds. Applications received from individuals will not be reviewed by

HUD.

Land acquisition, infrastructure improvements, and reasonable and necessary planning and administration costs (not to exceed 20 percent) are the only eligible uses for SHOP grant funds. The average SHOP expenditure for the combined cost of land acquisition and infrastructure improvements cannot exceed $15,000 per SHOP unit. Successful applicants must leverage other public and private funds to pay for the construction or rehabilitation costs of each SHOP unit and for any other program costs that are not assisted with SHOP grant funds.

The SHOP units must be sold to homebuyers at prices below the prevailing market price.

Homebuyers must be low-income and must contribute a significant amount of sweat equity towards the development of the SHOP units. Reasonable accommodations must be permitted for individuals with disabilities in order for such individuals to meet hourly sweat equity requirements. A homebuyer’s sweat equity contribution cannot be mortgaged or otherwise restricted upon future sale of the SHOP unit. Volunteer labor is also required.

SHOP Grantees may award SHOP grant funds to local non-profit affiliate organizations to carry out the Grantee’s SHOP program. These affiliate organizations must be located within the Grantee’s service area.

2. Changes from Previous NOFO.

The FY 2021 SHOP NOFO includes changes to the following:

The word average has been added to the sentence: "The average SHOP expenditure for the combined cost of land acquisition and infrastructure improvements cannot exceed $15,000 per SHOP unit."

The definition for "Planning and Administrative Costs" has been added to the FY2021 SHOP NOFO. Planning and Administrative Costs are defined as any reasonable administrative and planning expenses relating to carrying out program activities which include general management, oversight, and coordination. Eligible planning and administrative costs may include but are not limited to, salaries, wages, and general management, oversight, and coordination of SHOP program activities. Up to 20% of the grant award may be used for planning and administrative costs. Applicants are required to allocate Planning and Administration costs (maximum of 20%) between the following categories: (1) Planning and Administration expenses of the applicant; and (2) Planning and Administration expenses of the affiliate(s).

3. Definitions.

a. Standard Definitions

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

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

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

1) Grant;

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

3. Loans;

4. Loan guarantees;

5. Subsidies;

6. Insurance;

7. Food commodities;

8. Direct appropriations;

9. Assessed or voluntary contributions; or

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

b. Federal Financial Assistancedoes not include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The definition of "small"—in terms of being able to apply for government support and qualify for preferential tax policy—varies by country and industry. The U.S. Small Business Administration defines a small business according to a set of standards based on specific industries.{e-CFR Title 13-Chapter I – Part 121} https://www.ecfr.gov/cgi-bin/text-idx?SID=0ff5f0839abff4eec707b4478ed733c6&mc=true&node=pt13.1.121&rgn=div5&se13.1.121_1101

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

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

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

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

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

4. Program Definitions

(1) Lots Acquired - Lots acquired using SHOP funds that will be used for construction or rehabilitation of a SHOP Unit and conveyance to a SHOP eligible homebuyer.

(2) Units Under Construction - Units for which ground has been broken and construction is underway but not completed.

(3) Units Completed - Units for which a Certificate of Occupancy has been issued but the units have not been conveyed.

(4) Units Conveyed - Units for which titles have been conveyed to SHOP eligible homebuyers.

(5) Units Occupied - Units occupied by SHOP eligible homebuyers.

(5) Letter of firm commitment – A letter of commitment from an applicant’s partner organization by which the partner (a) agrees to perform an activity specified in the application,

(b) demonstrates the financial capacity to deliver the resources necessary to carry out the activity, and (c) commits the resources to the activity, either in cash or through in-kind contributions. It is irrevocable, subject only to approval and receipt of an FY 2021 SHOP grant.

Each letter of commitment must include the partner organization's name and applicant's name, reference SHOP and describe the proposed total level of commitment and responsibilities, expressed in dollar value for cash or in-kind contributions, as they relate to the proposed program. The commitment must be written on the letterhead of the participating organization, must be signed by an official of the organization legally able to make commitments on behalf of the organization, and must be dated no earlier than the date of publication of this NOFO. In https://www.sam.gov/SAM/ documenting a firm commitment, the applicant's partner must:

1. Specify the authority by which the commitment is made, the amount of the commitment, the proposed use of funds, and the relationship of the commitment to the proposed investment. If the committed activity is to be self-financed, the applicant's partner must demonstrate its financial capability through a corporate or personal financial statement or other appropriate means; and

2. Affirm that the firm commitment is contingent only upon the receipt of SHOP funds and state a willingness on the part of the signatory to sign a legally binding agreement (conditioned upon HUD's environmental review and approval of a property, where applicable) upon award of the grant.

B. Authority.

SHOP is authorized by Section 11 of the Housing Opportunity Program Extension Act of 1996 (Public Law 104-120, as amended, 42 U.S.C. 12805 note). HUD's authority for making funding available under this NOFO is the Consolidated Appropriations Act, 2021 (Public Law 116-260, approved December 27, 2020).

II. Award Information.

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

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

B. Number of Awards.

HUD expects to make approximately 4 awards from the funds available under this NOFO.

C. Minimum/Maximum Award Information Estimated Total Funding: $10,000,000 is available to make about 4 SHOP grant awards under the FY2021 SHOP NOFO.

Minimum Award Amount: $1,145,000

Maximum Award Amount: $10,000,000.

Estimated Total Funding:

$ 10,000,000 Minimum Award Amount:

$ 1,145,000 Per Project Period

Maximum Award Amount:

$ 10,000,000 Per Project Period

D. Period of Performance The Grantee must expend all SHOP grant funds within 24 months of the date that HUD makes the SHOP grant funds available for drawdown in the Grantee’s line of credit. Grantees are subject to 24 month expenditure deadlines unless they are providing SHOP funds to an affiliate or subrecipient developing five or more SHOP units.

However, grant funds provided to a SHOP affiliate that develops five or more SHOP units must be expended within 36 months of the date that HUD makes the SHOP grant funds available for drawdown in the Grantee’s line of credit. The Grantee must convey all SHOP units in order to meet the 36 month deadline requirement.

The Grantee’s administrative costs directly related to the management and oversight of affiliates developing five or more SHOP units must also be expended within 36 months of the date the SHOP grant funds are made available in the Grantee’s line of credit. HUD will establish a 24-month period of performance in the Disaster Recovery Grant Reporting (DRGR) system. Sixty (60) days before the expiration date of this 24-month period of performance, the Grantee must notify HUD in accordance with instructions in the grant agreement of any affiliates that are developing five or more SHOP units and have not fully drawn down their SHOP grant funds in DRGR.

Estimated Project Start Date:

02/01/2022 Estimated Project End Date:

02/01/2025 Length of Project Periods:

36-month project period and budget period

Length of Periods Explanation of Other:

Timely Performance. The Grantee and its affiliates must develop and convey all SHOP units within 36 months of the end of the applicable period of performance. HUD may grant an extension to a Grantee’s performance schedule only when justified by good cause. HUD will require corrective actions when a Grantee fails to satisfy its approved schedule. HUD will note any failure to perform as required under the award as poor performance which may negatively affect an applicant’s future SHOP funding.

E. Type of Funding Instrument.

Funding Instrument Type:

G (Grant) III. Eligibility Information.

A. Eligible Applicants.

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

Additional Information on Eligibility Nonprofits having a 501(c)(3) or 501(c)(4) status with the IRS, other than institutions of higher education. Eligible applicants include public or private non-profit organizations, or a consortium of public or private non-profit organizations, that have the capacity and experience to provide or facilitate self-help homeownership opportunities on a national or regional basis. Grantees must directly undertake eligible SHOP activities and/or enter into a written agreement with one or more non-profit affiliate organizations to carry out eligible SHOP activities.

The term “you” as used in this NOFO refers to the SHOP applicant, including all consortium members. The term “consortium” refers to all consortium members. The term “Grantee” refers to a successful SHOP applicant, including all consortium members, that have been awarded SHOP grant funds under this NOFO. The term “affiliate” refers to an eligible non-profit organization that is an affiliate of a SHOP grantee.

1. Definitions

a. Eligible SHOP Applicant

(i) National Organization. A national organization is a public or private non-profit organization that carries out self-help homeownership housing activities or funds affiliates that carry out self-help homeownership housing activities on a national scale.

(ii) Regional Organization. A regional organization is a public or private non-profit organization that carries out self-help homeownership housing activities or funds affiliates that carry out self-help homeownership housing activities on a regional scale.

A regional area is a geographic area, such as the Southwest or Northeast that includes at least two states. The states in the region need not be contiguous, and the service area of the organization need not precisely conform to state boundaries.

(iii) Consortium. A consortium is two or more public or private non-profit organizations located in at least two states that enter into an agreement to submit a single application for SHOP grant funds to carry out self-help homeownership housing activities on a national or regional basis. Individual consortium members may carry out self-help homeownership housing activities or fund affiliates to carry out self-help homeownership housing activities. The consortium must designate one member as the lead entity to act on behalf of all consortium members. The lead entity must be responsible and accountable for the timely performance and compliance of all consortium members. The consortium must execute a new written agreement with each affiliate that is participating in the consortium's FY2021 SHOP program. The consortium cannot amend a prior written agreement.

b. Affiliate Organization ("Affiliate")

Applicants may undertake eligible SHOP activities directly and/or enter into a written agreement with one or more non-profit, affiliate organizations to carry out the SHOP activities. If the applicant will use affiliate organizations, the affiliate must satisfy the following:

(i) Type of Organization: Your affiliates must be:

(a) Subordinate Organization. A local non-profit self-help homeownership housing organization that is a subordinate organization (i.e., chapter, local, post, or unit) of your central organization and covered by the group exemption issued to the central organization under section 501(c) (3) or 501(c)(4) of the Internal Revenue Code; or

(b) Organization with an Existing Relationship. A local non-profit self-help homeownership housing organization with which you have an existing relationship (e.g., you have provided technical assistance, mentoring or funding to the local self-help homeownership housing organization); or

(c) Organization with a Future Relationship. A local non-profit self-help homeownership housing organization with which you do not have an existing relationship, but to which you will provide technical assistance, mentoring or funding in accordance with your SHOP application.

(ii) Service Area. Your affiliate must be located within your service area.

(iii) Written Agreement. You must have a written agreement with each of your affiliates that incorporates the requirements of this NOFO. Your written agreement must describe the SHOP responsibilities of your affiliate. If you are a consortium, each of your affiliates must be linked to an individual consortium member by a written agreement. You must execute a new written agreement with each affiliate that is participating in your FY2021 SHOP program. You cannot amend a prior written agreement.

c. Planning and Administrative Costs

Planning and Administrative Costs are defined as any reasonable administrative and planning expenses relating to carrying out program activities which include general management, oversight, and coordination. Eligible planning and administrative costs may include but are not limited to, salaries, wages, and general management, oversight, and coordination of SHOP program activities. Up to 20% of the grant award may be used for planning and administrative costs.

B. Ineligible Applicants.

C. Cost Sharing or Matching.

This Program does not require cost sharing or matching.

Generally, federal sources are not allowed to be used as cost share or match unless otherwise permitted by a program’s authorizing statute.

There is no matching requirement for SHOP; however, the Grantee may leverage resources for the cost of construction and/or rehabilitation of self-help homeownership housing units assisted with SHOP grant funds, and for any other program costs that are not funded with SHOP grant funds. Refer to SHOP NOFO “Rating Factor 4: Leveraging Resources.”

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 Department of Justice 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. 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. Application Threshold Requirements

See Section III.F. Program-Specific Requirements Affecting Eligibility.

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 and/or Suspensions Pre-selection Review of Performance Sufficiency of Financial Management System False Statements Mandatory Disclosure Requirement Prohibition Against Lobbying Activities Equal Participation of Faith-Based Organizations in HUD Programs and Activities

F. Program-Specific Requirements.

(1) Timely Application Receipt. You must submit a timely SHOP application. HUD will not consider an application that does not meet the timely application receipt requirements of this SHOP NOFO. Refer to SHOP NOFO Section IV.D. "Application Submission Dates and Times."

(2) No Duplicate Submissions. You must not propose to fund any affiliate or consortium member under your SHOP application that is also seeking FY2021 SHOP grant funds from another SHOP applicant. If an affiliate or consortium member applies for SHOP grant funds through more than one applicant, HUD will disqualify that affiliate or consortium member from receiving funding.

(3) Dun and Bradstreet Data Universal Numbering System (DUNS) and System for Award Management (SAM). You must have a Dun and Bradstreet Universal Numbering System (DUNS) identifier and maintain active registration in the System for Award Management (SAM), which includes maintaining current information. Detailed instructions for registration are located on the Grants.gov web page. To apply or search for a DUNS identified, please visit https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/fundingopps http://Grants.gov https://fedgov.dnb.com/webform. Registration instructions for SAM are available at www.sam.gov.

(4) Eligible Applicant. HUD may only award SHOP grant funds to organizations that meet all of the following criteria:

(a) Non-profit Status - An eligible public or private non-profit organization under Federal, state or tribal law;

(b) Service Area – A national or regional organization or consortia (see Section III.A.

“Eligible SHOP Applicants” of this NOFO) that serves at least two states; and

(c) Self-Help Homeownership Housing Experience - An organization experienced in providing or facilitating self-help homeownership housing opportunities as demonstrated by the successful completion of at least 30 self-help homeownership housing units in a national or regional area, consisting of at least two states, within the 24-month period preceding the submission of your SHOP application. This may include self-help homeownership housing units completed by one or more of your affiliates during this time period, provided these units were undertaken in accordance with a written agreement between you and your affiliate(s). For a dwelling to qualify as a self-help homeownership housing unit, a homebuyer (defined as the individual or individuals who own the completed unit) must have contributed a significant amount of sweat-equity toward the construction or rehabilitation of the unit as set forth in the SHOP NOFO Section III.F.(8) “Sweat Equity.”

(5) Consortium Agreement. If you are a consortium, all consortium members must sign and date a written Consortium Agreement for the purpose of applying for SHOP grant funds and carrying out SHOP activities in compliance with this NOFO. This Consortium Agreement must designate a lead entity authorized to submit the SHOP application on behalf of all consortium members. The Consortium Agreement must also state that the lead entity will be accountable for the performance and compliance of the Consortium's SHOP program in accordance with all requirements of this NOFO, and that each consortium member is responsible and accountable for the performance and compliance of its affiliates.

If funded, each consortium member must enter into a separate written agreement with the lead entity. This agreement must include the requirements of the FY2021 SHOP Grant Agreement executed between HUD and the consortium, and set forth each consortium member’s responsibilities as described in your approved SHOP application. If the consortium uses affiliates, each affiliate must be linked to a consortium member that is responsible for the timely performance and SHOP compliance of that affiliate.

(6) Code of Conduct. You must develop, maintain and follow a written code of conduct in accordance with 2 CFR 200.318. Your Code of Conduct must be dated and signed by your Executive Director, or the Chair of the governing body of your organization.

(7) Section 3 Reporting Requirements. The Section 3 regulations at 24 CFR part 75, impose certain reporting and recordkeeping requirements on recipients.

(8) Number of SHOP Units. The SHOP statute requires the Grantee to develop a specific and reasonable number of dwellings using the grant amounts, which number shall be established taking into consideration costs and economic conditions in the areas in which the dwellings will be developed, but in no case shall be less than 30 SHOP units. A "SHOP unit" means a self-help http://www.sam.gov homeownership housing unit on land acquired with SHOP grant funds or for which infrastructure costs are paid with SHOP grant funds. You must propose to complete and convey a minimum of 30 SHOP units. The average SHOP grant expenditure on each SHOP unit for the combined costs of land acquisition and infrastructure improvements cannot exceed $15,000 per homeownership unit.

(9) Service Area. You must propose to use a significant amount of SHOP grant funds in a national or regional service area consisting of at least two states.

(10) Eligible Activities. The SHOP statute requires that “amounts from grants..., including any recaptured amounts, shall be used only for eligible expenses in connection with developing new decent, safe, and sanitary, non-luxury dwellings.” There are three categories of eligible SHOP activities. You must propose to use SHOP grant funds only for the cost of eligible SHOP activities. Eligible pre-agreement costs must be incurred on or after the publication date of this NOFO. You may carry out the eligible activities yourself or fund affiliates to carry out your eligible activities. Refer to SHOP NOFO Section IV.F. “Funding Restrictions” for additional guidance on pre-agreement costs, ineligible costs, and other restrictions.

(a) Land Acquisition. The acquisition of land (including financing and reasonable and customary closing costs) for the purpose of developing or rehabilitating SHOP units is an eligible activity.

(i) “Land” shall mean real property acquired by the Grantee or its affiliate pursuant to a deed or a lease with a term of 99 years or more, except for Guam, the Northern Mariana Islands, the United States Virgin Islands, and American Samoa, where the lease term must be 40 years or more, and for Indian trust or restricted lands where the lease term must be 50 years or more. Upon request, HUD may approve other lease terms for good cause on a case-by-case basis.

(ii) If you or your affiliate use SHOP grant funds to acquire land with a building or other improvement affixed to it, you or your affiliate must allocate a portion of the acquisition cost to the land and a portion of the acquisition cost to the building or other improvements. Only the portion of the acquisition cost allocated to the land is an eligible land acquisition cost. Land acquisition is subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA). See Section VI.B-Real Property Acquisition & Relocation for additional information.

(iii) You or your affiliate must own the land acquired with SHOP grant funds through completion of the SHOP unit. HUD may grant an exception to the ownership requirement for units also assisted through the United States Department of Agriculture's (USDA) Mutual Self-Help Housing Technical Assistance grants when the potential homebuyer is receiving a USDA Section 502 Direct Loan. The Grantee must submit to HUD, a written request for an exception to the ownership requirement prior to the investment of any SHOP grant funds for land acquisition and/or infrastructure improvements.

(iv) On or after the date of this NOFO, you and your affiliate may expend non-grant funds subject to any requirements that govern the use of such other funds to acquire land, including land acquired before completion of the environmental review process. You may use SHOP grant funds to reimburse these costs after your SHOP Grant Agreement has been executed and the required environmental review process has been successfully completed. Any advances to acquire land prior to successful completion of the required environmental review process are made at the risk of the Grantee and its affiliates, and reimbursement from SHOP grant funds for such advances will depend on the result of the environmental review. These pre-agreement costs must be identified in your SHOP application. Refer to this SHOP NOFO Section IV.F. “Funding Restrictions.”

(b) Infrastructure Improvements. The installation, extension, construction, rehabilitation, or other improvement of utilities and other infrastructure (including the removal of environmental hazards) in support of the development or rehabilitation of SHOP units are eligible activities. Eligible infrastructure improvement activities include the cost of utility and hook-up fees. Eligible infrastructure improvement activities exclude financing and closing costs.

(i) You or your affiliate must own the land on which infrastructure improvements are undertaken through completion of the SHOP unit. HUD may grant an exception to the ownership requirement for units also assisted through the USDA's Mutual Self-Help Housing Technical Assistance grants when the potential homebuyer is receiving a USDA Section 502 Direct Loan. The Grantee must submit to HUD a written request for an exception to the ownership requirement prior to the investment of any SHOP grant funds for land acquisition and/or infrastructure improvements.

(ii) You or your affiliate must not incur infrastructure improvement costs before the required environmental review process has been successfully completed.

(c) Planning and Administration. The reasonable and necessary cost of the planning and administration of your SHOP grant program and activities, including the reasonable and necessary planning and administration costs of your affiliates, is an eligible activity. Eligible costs include staff and overhead costs of implementing your SHOP grant program and activities;

providing information to the public about your SHOP grant program and activities which also include costs associated with taking reasonable steps to provide information in the most appropriate manner and language for persons with limited English proficiency and/or persons with disabilities; costs of providing civil rights and fair housing training to your local affiliates;

and any expenses involved in affirmatively furthering fair housing.

Applicants are required to allocate Planning and Administration costs (maximum of 20%) between the following categories: (1) Planning and Administration expenses of the applicant; and (2) Planning and Administration expenses of the affiliate(s).

The indirect costs (such as rent and utilities) of you and your affiliates in carrying out your SHOP grant program and activities are also eligible. You must charge indirect costs in accordance with 2 CFR part 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.”

You cannot use SHOP grant funds for planning and administration expenses that are not related to your SHOP grant program and activities. Eligible planning and administration costs cannot exceed 20 percent of your SHOP grant.

(11) Eligible forms of Homeownership. “Homeownership” and “own” mean fee simple title or a 99-year renewable lease, or an equivalent form of ownership approved by HUD. In Guam, the Northern Mariana Islands, the United States Virgin Islands, and American Samoa, the definition includes renewable leases of 40 years or more. For Indian Trust or restricted lands, the definition includes renewable leases of 50 years or more. Ownership may be subject to mortgages, deeds of trust, or other liens or instruments securing the debt on the property as allowable under State law.

(12) Property Standards. The SHOP statute requires that funds be used for quality “decent, safe and sanitary non-luxury dwellings” that “comply with local building safety codes and standards.”

You must ensure that all SHOP units developed by you and your affiliates are inspected and comply with all SHOP standards, including but not limited to the following:

(a) State and Local Building Codes and Standards. You must ensure that you and your affiliates inspect for and comply with all applicable state and local codes, ordinances, and zoning requirements.

(b) Energy Efficiency. You are strongly encouraged, but not required, to meet the standard for ENERGY STAR Certified New Homes (single-family homes and low-rise multifamily properties up to three stories) or ENERGY STAR Multifamily High Rise (four or more stories). Incorporating energy-efficiency measures in the design, construction, and/or rehabilitation of self-help units reduces the energy cost burden on low-income homebuyers and improve the sustainability and longevity of the units. All applicants are strongly encouraged, but not required, to use ENERGY STAR-labeled appliances and products (when such ENERGY STAR appliances and products exist). You are strongly encouraged, but not required, to provide appropriate guidance to all SHOP homebuyers on the proper use and maintenance of the energy-saving appliances and products installed in their units. Information about ENERGY STAR can be found at https://www.energystar.gov/.

(c) Water Conservation. You must incorporate specific water conservation measures in the construction and/or rehabilitation of the SHOP units developed by you and your affiliates. All water-usage products installed or replaced in SHOP units including toilets, showers, and faucets must bear the “WaterSense” label when such WaterSense products exist. You must provide guidance to all SHOP homebuyers on the proper use and maintenance of the water conservation products installed in their units. WaterSense is a water conservation program sponsored by the U.S. Environmental Protection Agency (EPA). Information about WaterSense products can be found at https://www.epa.gov/watersense.

(d) Accessibility for Qualified Individuals with Disabilities. You and your affiliates must comply with Section 504 of the Rehabilitation Act of 1973 and HUD’s implementing regulations at 24 CFR part 8 concerning accessibility for qualified individuals with disabilities. Your SHOP units must be newly constructed or rehabilitated and meet the requirements of the Uniform Federal Accessibility Standards (UFAS) to be accessible upon request of the homebuyer in accordance with 24 CFR 8.29. You and your affiliates must also comply with accessibility requirements under the Americans with Disabilities Act (ADA) when applicable.

(13) Homebuyer Income Eligibility. The SHOP statute requires that funds benefit “low-income families and individuals who otherwise would be unable to afford to purchase a dwelling.”

Eligible homebuyer households are low-income individuals and families whose annual incomes do not exceed 80 percent of the median income for the area, as established by HUD with adjustments for household size. You must use income limits for the HOME Investment Partnerships Program, which are updated annually and available at:

https://www.hudexchange.info/manage-a-program/home-income-limits/. When an individual or family participating in the SHOP program uses financing provided by the United States Department of Agriculture’s 502 Homeownership Direct Loan Program, a grantee may use the low-income limits developed for that program to determine that individual or family’s eligibility. You must use one of the following definitions of “annual income” to determine whether a homebuyer is income-eligible. You must have procedures to clearly document that assisted homebuyers are income-eligible.

(a)Annual Income as defined at 24 CFR 5.609; or

(b) Adjusted Gross Income as defined for purposes of reporting under the IRS Form 1040 series for individual Federal annual income tax purposes; or

(c) Grantee Definition. You may adopt your own definition of “annual income” to determine whether a homebuyer is income-eligible. This definition must be included in your SHOP Program Design and Scope of Work and approved by HUD.

(14) Housing Counseling. If SHOP grantees or affiliates require housing counseling or refer eligible homebuyers to housing counseling, the housing counseling may be subject to HUD’s Housing Counseling rule. Pursuant to 24 CFR 5.111, beginning August 1, 2021, any Housing Counseling required under or provided in connection with any program administered by HUD shall be provided only by organizations and counselors certified by the Secretary under 24 CFR part 214 to provide housing counseling.

(15) Sweat Equity. The SHOP statute requires that self-help homeownership housing opportunities be provided “under which the homeowner contributes a significant amount of sweat equity toward the construction of the new dwelling.”

(a) Minimum Sweat Equity Contribution. You must require each SHOP homebuyer, including those with disabilities, to contribute a minimum number of sweat equity hours toward the construction or rehabilitation of the homebuyer’s SHOP unit and/or the homes of other homebuyers participating in the self-help homeownership housing program administered by you or your affiliates. If the homebuyer is one individual, the homebuyer must contribute a minimum of 50 hours of sweat equity. If the homebuyer is more than one individual, the homebuyer must contribute a minimum of 100 hours of sweat equity.