FY23ChoiceImplementationFR-6700-N-34 (mod).pdf

U.S. Department of Housing and Urban Development

Public and Indian Housing

FY 2023 Choice Neighborhoods Implementation Grants

FR-6700-N-34

03/04/2024

Table of Contents

OVERVIEW

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

B. Authority

II. AWARD INFORMATION

A. Available Funds

B. Number of Awards

C. Minimum/Maximum Award Information

D. Period of Performance

E. Type of Funding Instrument

III. ELIGIBILITY INFORMATION

A. Eligible Applicants

B. Ineligible Applicants

C. Cost Sharing or Matching

D. Threshold Eligibility Requirements

E. Statutory and Regulatory Requirements Affecting Eligibility

F. Program-Specific Requirements

G. Criteria for Beneficiaries

IV. APPLICATION AND SUBMISSION INFORMATION

A. Obtain an Application Package

B. Content and Form of Application Submission

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

D. Application Submission Dates and Times

E. Intergovernmental Review

F. Funding Restrictions

G. Other Submission Requirements

V. APPLICATION REVIEW INFORMATION

A. Review Criteria

B. Review and Selection Process

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices

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

C. Reporting

D. Debriefing

VII. AGENCY CONTACT(S)

VIII. OTHER INFORMATION

APPENDIX

Program Office:

Public and Indian Housing

Funding Opportunity Title:

FY 2023 Choice Neighborhoods Implementation Grants

Funding Opportunity Number:

FR-6700-N-34

Assistance Listing Number (formerly CFDA Number):

14.889

Due Date for Applications:

03/04/2024

OVERVIEW

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

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

Examples of impermissible disclosures include: 1) information regarding any applicant’s relative standing; 2) the amount of assistance requested by any applicant; and 3) any information contained in the application. Prior to the application deadline, HUD may not disclose the identity of any applicant or the number of applicants that have applied for assistance.

For further information regarding this NOFO, direct questions regarding the specific requirements of this NOFO to the agency contact identified in section VII.

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

OMB Approval Number(s):

2577-0269; 2501-0033; 2501-0017

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

1. Purpose

The Choice Neighborhoods program leverages significant public and private dollars to support locally driven strategies that address struggling neighborhoods with severely distressed public housing and/or HUD-assisted housing through a comprehensive approach to neighborhood transformation. Local leaders, residents, and other stakeholders, such as public housing https://www.ecfr.gov/current/title-24/subtitle-A/part-4/subpart-B https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1 https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1 authorities, cities, schools, police, business owners, nonprofits, and private developers, come together to create and implement a plan that revitalizes distressed HUD housing and addresses the challenges in the surrounding neighborhood. The program helps communities transform neighborhoods by redeveloping severely distressed public and/or HUD-assisted housing and catalyzing critical improvements in the neighborhood. To this end, Choice Neighborhoods is focused on three core goals:

1. Housing: Replace severely distressed public and assisted housing with high-quality mixed-income housing that is well-managed and responsive to the needs of the surrounding neighborhood;

2. People: Improve outcomes of households living in the target housing related to income and employment, health, and education; and

3. Neighborhood: Create the conditions necessary for public and private investment in distressed neighborhoods to offer the kinds of amenities and assets, including safety, good schools, and commercial activity, that are important to families’ choices about their community.

To achieve these core goals, successful applicants under this NOFO have in place a comprehensive neighborhood revitalization strategy, or “Transformation Plan.” This Transformation Plan is the guiding document for the revitalization of the public and/or assisted housing units, while simultaneously directing the transformation of the surrounding neighborhood and creating positive outcomes for families.

Experience shows that to successfully develop and implement the Transformation Plan, broad civic engagement is needed. Successful applicants need to work with public and private agencies, organizations (including philanthropic and civic organizations), banks and financial institutions, and individuals to gather and leverage the financial and human capital resources needed to support the sustainability of the plan. These efforts should build community support for and involvement in the development and implementation of the plan.

2. HUD and Program-Specific Goals and Objectives

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

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

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

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

Applicable Goals and Objectives from HUD’s Strategic Plan

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

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

2. 1C: Invest in the Success of Communities Promote equitable community development that generates wealth-building for underserved communities, particularly for communities of color.

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

4. 2A: Increase the Supply of Housing Enhance HUD's programs that increase the production and supply of housing across the country.

5. Strategic Goal 4: Advance Sustainable Communities Advance sustainable communities by strengthening climate resilience and energy efficiency, promoting environmental justice, and recognizing housing's role as essential to health.

6. 4A: Guide Investment in Climate Resilience Invest in climate resilience, energy efficiency, and renewable energy across HUD programs.

7. 4B: Strengthen Environmental Justice Reduce exposure to health risks, environmental hazards, and substandard housing, especially for low-income households and communities of color.

Each Choice Neighborhoods grantee is expected to develop performance metrics based on these objectives.

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

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

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

Energy Efficient, Climate Resilient, and Sustainable. Housing that has low per unit energy and water consumption and is built to be resilient to local disaster risk and other climate impacts.

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

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

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

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

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

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

Neighborhood Objectives: Through investments catalyzed by Choice Neighborhoods, the neighborhood will have improved:

Housing Quality and Variety. The neighboring housing has a lower vacancy/abandonment rate, is high quality and well-maintained, and has an appropriate mix of rental and homeownership units to meet resident needs. The neighborhood better supports families with a broad range of incomes.

Economic Opportunity. The neighborhood attracts and maintains a diverse mix of businesses and employers to create meaningful jobs and economic opportunities for residents, respond to local needs, and address long-term disinvestment.

Community Assets and Amenities. The neighborhood includes community amenities found in higher opportunity areas, such as grocery stores and fresh food options, retail goods and services, financial institutions, medical and health facilities, parks and greenspace, public transit, high-quality early learning programs, and good public schools.

Community Confidence. The neighborhood image reflects a healthy, livable, and equitable community that honors its history and embraces a positive outlook for the future. There is an enhanced sense of place and a visibly improved built environment.

Long term-residents choose to stay and have the supports to do so, and new residents likewise choose to live in the revitalized neighborhood.

Public Safety. Residents feel safer in their homes and spending time in the revitalized community and the neighborhood has lower crime rates than prior to redevelopment.

Funding Opportunity Goals1. Housing: Replace severely distressed public and assisted housing with high quality mixed-income housing that is well-managed and responsive to the needs of the surrounding neighborhood.

2. People: Improve outcomes of households living in the target housing related to income and employment, health, and education.

3. Neighborhood: Create the conditions necessary for public and private investment in distressed neighborhoods to offer the kinds of amenities and assets, including safety, good schools, and commercial activity, that are important to families' choices about their community.

3. Changes from Previous NOFO

Changes in October 2023 modification:

HUD now intends to add FY 2024 appropriations funding, if available, for Choice Neighborhoods Implementation Grants to this competition.

The due date for a new Implementation Grant application is now February 13, 2024.

(The March 4, 2024, due date for a Supplemental Grant application remains unchanged).

HUD issued new Total Development Cost (TDC limits) on October 10, 2023.

Accordingly, the Grant Sizing Worksheet (form HUD-53235) has been updated to reflect the 2023 TDC limits.

This NOFO has two deadlines: one for new Implementation Grant applications and one for Supplemental Grant applications. The application due for a new Implementation Grant is 11:59:59 pm Eastern time on February 13, 2024. Any application received after the February 13th deadline that is not applying for a Supplemental Grant is automatically ineligible. The due date for a Supplemental Grant application is 11:59:59 pm Eastern time on March 4, 2024. The pool of eligible applicants for a Supplemental Grant is limited to those previously awarded CN Implementation Grant recipients as stated in the Appendix.

Highlights of significant changes:

In the Need rating factors, the Immediate Project Capital Needs rating factor has been removed.

HUD anticipates awarding up to $10,000,000 for prior CN Implementation Grantees that meet certain criteria to apply for a Supplemental Grant. The Supplemental Grant application has a different due date than the Implementation Grant Application.

Added requirement that applicants provide an Advancing Racial Equity narrative (see Section III.F).

Added requirement that applicants provide an Affirmative Marketing narrative (see Section III.F).

Added criteria in the Capacity rating factors on whether applicants have experience promoting racial equity and resources to support underserved communities.

Affirmatively Furthering Fair Housing (AFFH) is no longer a threshold requirement.

However, submission of a narrative regarding AFFH remains an application requirement (see section IV.G).

Added requirement to complete the Federal Assistance Assurances, which is part of the applicant's sam.gov registration.

Submission of the form HUD-424B is a requirement for all applications.

Updated section VI.B. to include compliance with: HUD Secretary Fudge April 12, 2022, memorandum; equity requirements; and waste, fraud, and abuse requirements.

Additionally, this section clarifies requirements related to nondiscrimination and equal opportunity. The related NOFO supplemental document is updated and posted on HUD’s Funding Opportunity web page.

Federal Relay Service – The Federal Relay Service contract expired in February 2022.

HUD no longer uses the service. The NOFO is updated to include the use of Federal Communications Commission (FCC) relay services for individuals who are deaf or hard of hearing or who have speech or communication disabilities. HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

4. Definitions

a. Standard Definitions

Affirmatively Furthering Fair Housing (AFFH) means taking meaningful actions, in addition to combating discrimination to overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected https://sam.gov/content/home https://www.hud.gov/grants https://www.hud.gov/grants https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunities, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.

The duty to affirmatively further fair housing extends to all program participant’s activities and programs relating to housing and urban development.

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

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

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

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

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

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

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

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

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

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

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

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

A Curable Deficiency is missing or incomplete application information that may be corrected by the applicant with timely action. To be curable, the deficiency must:

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

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

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

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

E-Business Point of Contact (E-Biz POC) is an organization applicant who is responsible for the administration and management of grant activities for his or her organization. The E-Biz POC is likely to be an organization's chief financial officer or authorizing official. The E-Biz POC authorizes representatives of their organization to apply on behalf of the organization (see Authorized Organization Representative definition). There can only be one E-Biz POC per unique entity identifier (see definition of Unique Entity Identifier below).

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

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

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

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

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

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

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

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

(2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definitions of Federal financial assistance in 2 CFR 200.1, and this NOFO, or the cost-reimbursement contract awarded under the Federal Acquisition Regulations.

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

(4) See also definitions of Federal financial assistance, grant agreement, and cooperative agreement in 2 CFR 200.1.

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

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

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

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

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

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

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.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://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/

Minority-Serving Institutions (MSIs) are

(1) a part B institution (as defined in 20 U.S.C. 1601);

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

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

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

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

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

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

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

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

Racial Equity is the elimination of racial disparities, and is achieved when race can no longer predict opportunities, distribution of resources, or outcomes – particularly for Black and Brown persons, which includes Black, Latino, indigenous, Native American, Asian, Pacific Islander, and other persons of color.

Promise Zones (PZs) are high poverty areas in select urban, rural and tribal communities designated from 2014-2016 where the federal government partners with local leaders to increase economic activity, improve educational opportunities, leverage private investment, reduce violent crime, enhance public health and address other priorities identified by the community.

See Promise Zones.

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

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

Small business is defined as a privately-owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than regular-sized business. The definition of “small”—in terms of being able to apply for government support and qualify for preferential tax policy—varies by country and industry. The U.S. Small Business Administration defines a small business according to a set of standards based on specific industries. See 13 CFR Part 121.

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

https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partB-sec1061.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapV-partA-sec1101a.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059c.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059d.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059e.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059f.pdf https://www.hud.gov/program_offices/field_policy_mgt/fieldpolicymgtpz https://www.ecfr.gov/current/title-13/chapter-I/part-121?toc=1

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

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

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

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

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

Unique Entity Identifier (UEI) means the identifier assigned by SAM to uniquely identify business entities. As of April 4, 2022, the Federal government has transitioned from the use of the DUNS Number to the use of UEI, as the primary means of entity identification for Federal awards government-wide.

b. Program Definitions.

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

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

Anchor Institutions. Anchor institutions are place-based entities with regional significance and are permanently-rooted economic or cultural drivers in specific locales – generating jobs, creating local business opportunities, and contributing in significant ways to the development of human, social and cultural capital. They include universities, hospitals, sports facilities, tribal cultural institutions, other major cultural facilities (such as performing arts centers, museums and central libraries), and corporations.

Assisted Housing. In this NOFO, the term “assisted housing” (used interchangeably with “HUD-Assisted Housing”) means housing assisted under a Housing Assistance Payment (HAP) contract pursuant to section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f and 42 U.S.C 1437g) (excluding tenant-based vouchers and developments where fewer than 50 percent of the units in a housing development receive project-based voucher assistance), section https://www.sam.gov/SAM/ https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government

221(d)(3) or section 236 of the National Housing Act (12 U.S.C. 1715l and 12 U.S.C 1715z-1), or the Native American Housing Assistance and Self-Determination Act of 1996, 25 U.S.C.

4101, et seq. (Indian Housing). In the case of Indian Housing, this includes only single family and duplex rental housing that is clustered in a development and multifamily rental housing projects in which at least 50 percent of the units are assisted.

Case Management. Case Management is an individual- or family-centered approach to improve resident outcomes in income, employment, health, and education, as well as to ensure residents' housing stability and successful relocation. Case management should employ a coaching approach that is trauma-informed, in which case managers work one-on-one to help residents achieve the goals that they identify for themselves in these areas. It includes screening/assessment/risk management, individualized service planning based on resident needs and choices, provision of options and information, linkage/referral to formal and informal services and supports, service coordination at the client-level, crisis intervention, follow-up, advocacy, monitoring/evaluation of resident progress as well as timeliness and effectiveness of service delivery, and maintenance of records. Case management contributes to and benefits from well-coordinated services at the community level. The intensity and frequency of case management services should be tailored to the level of an individual’s or family’s needs. Active case management requires a minimum of quarterly client contact.

Co-Applicant. Co-Applicant means an entity with which the Lead Applicant applies for funding under this NOFO. A Co-Applicant can be a local government, PHA, owner of the target HUD-assisted housing (e.g., a nonprofit or for-profit developer), or tribal entity. The local government of jurisdiction must be the Co-Applicant if it is not the Lead Applicant. Along with the Lead Applicant, the Co-Applicant must meet each Threshold Requirement listed in Section III.A, will sign the Grant Agreement, and will be responsible for implementing the activities identified in the Transformation Plan.

Critical Community Improvements. Critical Community Improvements (CCIs) are grant funded, physical community and economic development projects that advance the neighborhood outcomes proposed in the Transformation Plan.

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

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

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

Lead Applicant. Lead Applicant means the entity primarily responsible for coordinating the activities identified in the Transformation Plan. The Lead Applicant must be a local government, PHA, or tribal entity. The Lead Applicant is responsible for overseeing and coordinating all elements of the Choice Neighborhoods Transformation Plan and is accountable to HUD to complete the work proposed in the application, as amended with HUD approval. The Lead Applicant will be the sole entity that has access to the Choice Neighborhoods grant funds through HUD's Line of Credit Control System (LOCCS).

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

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

Neighborhood Assets. Neighborhood assets include the following main categories:

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

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

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

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

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

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

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

Part I Violent Crimes. Part I Violent Crimes shall have the same meaning used by the United States Department of Justice Bureau of Justice Statistics and the Uniform Crime Report.

Aggravated assault, rape, murder, and robbery are classified as Part I Violent Crimes.

People Implementation Entity. An entity with proven experience in supportive service design and implementation which has primary responsibility for facilitating the achievement of the supportive services strategy, the People component of the Transformation Plan ("People Plan").

At a minimum, this strategy should be comprised of case management and service coordination related to health, income and employment, education and early learning. This entity must also have primary responsibility for implementing day-to-day case management. A joint venture or other type of partnership cannot be the People Implementation Entity.

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

https://www.hud.gov/program_offices/public_indian_housing/programs/ph/capfund/gpnatool.

Additionally, this website includes a user guide, instructions, and other informative PNA resources. PHAs can retrieve their PIC data in HUD’s Energy and Performance Information Center’s (EPIC) PNA tab or via request at PHAPNA@hud.gov.

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

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

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

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

https://www.hud.gov/program_offices/public_indian_housing/programs/ph/capfund/gpnatool mailto:PHAPNA@hud.gov

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

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

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

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

Severely Distressed Housing.

a. In accordance with section 24(j)(2) of the 1937 Act, the term means a public and/or assisted housing project (or building in a project) that:

(1) Requires major redesign, reconstruction, or redevelopment, or partial or total demolition, to correct serious deficiencies in the original design (including inappropriately high population density), deferred maintenance, physical deterioration or obsolescence of major systems, and other deficiencies in the physical plan of the project;

(2) Is a significant contributing factor to the physical decline of, and disinvestment by, public and private entities in, the surrounding neighborhood;

(3) Is:

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

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

(iii) Is lacking in sufficient appropriate transportation, supportive services, economic opportunity, schools, civic and religious institutions, and public services, resulting in severe social distress in the project;

(4) Cannot be revitalized through assistance under other programs, such as the Capital Fund and Operating Fund programs for public housing under the 1937 Act, or the programs under sections 9 or 14 of the 1937 Act (as in effect before the effective date under section 503(a) of the Quality

Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, approved October 21, 1998)), because of cost constraints and inadequacy of available amounts; and

(5) In the case of an individual building that currently forms a portion of the public and/or assisted housing project targeted by the application to this NOFO: (a) Is sufficiently separable from the remainder of the project of which the building is part, such that the revitalization of the building is feasible; or (b) was part of the targeted public and/or assisted housing project that…