FY23HomeownershipGaps_5.25.2023.pdf

U.S. Department of Housing and Urban Development

Policy Development and Research

FY23 HUDRD - Closing the Homeownership Gap and Preserving Homeownership During Economic Decline

FR-6700-N-29I

07/24/2023

Table of Contents

OVERVIEW

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

B. Authority

II. AWARD INFORMATION

A. Available Funds

B. Number of Awards

C. Minimum/Maximum Award Information

D. Period of Performance

E. Type of Funding Instrument

III. ELIGIBILITY INFORMATION

A. Eligible Applicants

B. Ineligible Applicants

C. Cost Sharing or Matching

D. Threshold Eligibility Requirements

E. Statutory and Regulatory Requirements Affecting Eligibility

F. Program-Specific Requirements

G. Criteria for Beneficiaries

IV. APPLICATION AND SUBMISSION INFORMATION

A. Obtain an Application Package

B. Content and Form of Application Submission

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

D. Application Submission Dates and Times

E. Intergovernmental Review

F. Funding Restrictions

G. Other Submission Requirements

V. APPLICATION REVIEW INFORMATION

A. Review Criteria

B. Review and Selection Process

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices

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

C. Reporting

D. Debriefing

VII. AGENCY CONTACT(S)

VIII. OTHER INFORMATION

APPENDIX

Program Office:

Policy Development and Research Funding Opportunity Title:

FY23 HUDRD - Closing the Homeownership Gap and Preserving Homeownership During Economic Decline Funding Opportunity Number:

FR-6700-N-29I

Assistance Listing Number (formerly CFDA Number):

14.536 Due Date for Applications:

07/24/2023

OVERVIEW

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

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

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

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

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

OMB Approval Number(s):

2528-0299 and 2501-0017.

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

1. Purpose 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

Through this NOFO, the Department of Housing and Urban Development (HUD) is announcing the availability of $1,000,000 for the research project titled “Closing the Homeownership Gap and Preserving Homeownership During Economic Decline.” HUD may fund more than one award from the funds available under this NOFO. The objective of the NOFO is to fund rigorous evaluations of (a) the factors that contribute to the gaps in homeownership rates among different demographic groups, and the effect of public policies and other initiatives (including private or philanthropic efforts) on addressing these gaps, and (b) how homeownership can be preserved during economic decline including the effects of rela ted public policies and other initiatives (including private or philanthropic efforts on achieving preservation goals). Proposals may address either or both these topics. The research funded under this NOFO will advance scientific knowledge and produce policy-relevant evidence on homeownership gaps and may inform the development of future approaches to help communities of color and other underserved communities achieve more equitable homeownership rates.

Background Homeownership is often viewed as the entry to the American dream and the gateway to intergenerational wealth. However, this pathway is often less achievable for underserved groups who post a lower homeownership rate than non-underserved families (Ray, et al. 2021). These homeownership gaps have contributed to lower median family wealth for disadvantaged groups.

Because wealth (as measured by the total amount of assets a person owns minus debts) is a critical predictor of education, health, employment, and other quality of life metrics, a strategy to address the homeownership gap can have positive effects beyond just housing itself.

This NOFO is focused on providing greater analysis and research on critical aspects of the homeownership gap, including residential patterns of undeserved groups/communities and the causes of ethnic/racial/gender/age/other disparities and obstacles to homeownership among these groups. The neighborhoods where homebuyers purchase their homes contribute to their home’s worth and its chance of appreciation over time, which has important implications for the long-term financial returns associated with homeownership. Despite some progress in achieving integration, weaknesses in fair housing enforcement have undermined the ability of the Fair Housing Act to dismantle segregation and combat discrimination. The forms of discrimination that were common in the past such as segregation by design or edict, including redlining, have shifted over time, and housing discrimination—along with persisting residential segregation— continue to hamper disadvantaged homebuyers’ ability to build equity. Home mortgage borrowers in underserved groups and communities remain concentrated in residentially segregated areas where homes have failed to appreciate at the same pace as those in neighborhoods where non-disadvantaged borrowers predominantly buy their homes.

A common measure of the extent to which disadvantaged residents are segregated from other groups in cities is the index of dissimilarity. The dissimilarity index represents the percentage of one of the two groups included in the analysis that would have to move in order to achieve more equitable distribution within smaller geographic units that match the composition of the entire city. Minority residents are extremely segregated from the rest of the population in many major cities, e.g., Detroit, Baltimore, Cleveland, and Atlanta. In Atlanta, the city with the highest levels of segregation, almost 70% of minority residents would have to move to new Census tracts to produce a uniform geographic distribution.

https://www.brookings.edu/essay/homeownership-racial-segregation-and-policies-for-racial-wealth-equity/#3

Racial economic inequality in the United States is primarily the result of unequal investments among communities. Estimates showing the percentage of unbanked or underbanked populations in the U.S. for different racial and ethnic groups often highlight inequalities in the financial health of their neighborhoods (FDIC, 2021). The percentage of blacks (46%) who are unbanked or underbanked alone is over three times the percentage of whites (14%) who experience the same struggle. Thirty-two percent of Hispanics are also either un- or under- banked.

This overview provides a general overall look at the role of segregation, discrimination, and racism in the housing market, as well as the consequences for educational attainment and wealth accumulation for persons of color and others in underserved communities, and points to the need for further research and assessment of potential policy responses.

Research Objectives and Priorities The objective of this NOFO is to fund research projects that can assess the extent of the homeownership gaps between minorities and majority homeowners; to evaluate the barriers to homeownership facing minorities; and to assess the threats that economic decline pose for homeownership preservation, including public and private responses to these threats. Research could include renters seeking or considering homeownership, new homebuyers, or existing homeowners. Barriers can include mortgage lending discrimination by lenders, disparate outcomes from lending to different applicant demographic groups as well as credit history and collateral requirements that can disadvantage nonwhite applicants. Furthermore, many minority renters could be homeowners if they were not facing financial and discriminatory barriers to acquiring a home. Closing the homeownership gaps requires identifying the factors that prevent renters of color and others in underserved groups from becoming homeowners.

The study may be longitudinal or a cross-sectional at borrower level. It could also focus on specific areas or cities where the problem is especially acute or localities that have taken steps toward ameliorating the homeownership gap. Evaluating the effect of various policies and programs, local or national, public or private in addressing the issue is an important topic for this

NOFO.

The emphasis would be on a quantitative study, but a qualitative approach could be a useful supplement. Data could be loan- or home-level as well as locality-level. Multiple sources of data could be employed.

Additional Research Considerations HUD intends to fund proposals that use rigorous methods to measure the extent, causes, and impact of homeownership gaps and explore the effect of economic decline on homeownership preservation. The proposal should discuss how the applicants plan to control other factors that affect homeownership rates, such as federal and local regulations, access to financing and policies, and familiarity of customers with mortgage shopping and other aspects of home acquisition. The proposal may need to identify a plan to control applicant bias (self-selection), regional housing costs, and household demographics.

Proposals can be limited to a set of jurisdictions, but the applicant must demonstrate that the proposed jurisdictions are sufficient for a robust analysis, with sufficient data points to allow for robust statistical power, and for the establishment of a counterfactual. The study should describe the method and design specification for estimating the relevant counterfactual outcomes.

Applicants are expected to demonstrate that they have or will likely have access to homeownership rates data and other relevant data points included in the study. Applicants should discuss their experience using the proposed data and matching it to other data sources.

Applicants should discuss any additional data sources that will be included in the study and the feasibility of obtaining the data. Applicants shall identify major methodological issues and data limitations and ways the study will address them.

HUD will not prescribe specific information collection approaches, protocols, or instruments.

Any information collection efforts conducted by a grantee to address the NOFO objectives will not be subject to the Paperwork Reduction Act.

Eligible Activities Eligible activities include all research and project management activities that contribute to meeting the NOFO objectives and research needs at a high-quality level, and specifically to complete the funded research. Eligible activities include, but are not necessarily limited to the following:

Defining the research steps from the articulation of research questions (including literature review) through the development of research design, data collection and analysis plans, to the analysis of data, and finally including the writing of publication-quality research reports and formal presentations and briefings on findings.

Regular communication with HUD staff on all project deliverables, as required by HUD’s substantial involvement under the cooperative agreement.

Consulting with experts on any aspect of the research as needed to bring expertise to enhance the research team’s knowledge in critical areas.

Project management activities, including required project management tools (Opening Meeting, Management and Work Plan and Budget, Quality Control Plan, and Quarterly Progress Reports) and regular communication with HUD staff for monitoring purposes.

Data acquisition costs.

Dissemination of research findings through seminars, presentations, worships, etc.

Project Deliverables HUD’s Cooperative Agreements require certain deliverables as part of the project management system, including the following: (1) an Opening meeting with HUD; (2) a Management and Work Plan providing a detailed outline of specific tasks, a project timeline, staffing and management responsibilities, and the allocation of resources; (3) a Quality Control Plan that documents all necessary measures taken by the Awardee to assure that the quality of end products of service shall meet the requirements outlined in the Cooperative Agreement; and (4) Quarterly Progress Reports. Please note that the Management and Work Plan is the document that will govern HUD’s monitoring of project activities.

Project deliverables shall also include the following documents, each of which shall be approved by the Government Technical Representative assigned to the project:

1. Research Design, Data Collection and Analysis Plan (RD/DCAP): The Research Design will serve as a technical blueprint for all research activities undertaken to address research objectives. The Data Collection and Analysis Plan will provide details on the data sources, the types of analytic methods that will be used, and the schedule for accomplishing these tasks. The RD/DCAP must demonstrate how the analysis plan will address the research questions and hypotheses proposed.

2. Interim Report: The Interim Report will be released near the midpoint of the project and provide a summary of the project up to that point. The Interim Report should be considered an opportunity to evaluate the state of the project.

3. Draft and Final Report: The Final Report must summarize the work conducted over the course of the project, and present the study objectives, data sources, analysis methods, and results. The Final Report is the key deliverable of the study and must serve as a stand-alone document that meets the overall objective of this project. The Final Report should be edited and prepared for publication in accordance with HUD’s Guidelines for Preparing a Report for Publication.

4. Briefings to HUD: Awardees will be asked to provide briefings to HUD near the midpoint of their project and after the Final Report is submitted.

5. Data Files. Awardees must submit individual or aggregate data files and documentation, including code and syntax, such that HUD or HUD contractors would be able to conduct a meta-analysis integrating the findings from different impact studies.

HUD staff will work closely with grantees to define deliverables. Final work products shall be well-written, and the final research report must be of publishable quality and shall conform to HUD’s formatting requirements. HUD intends to publish the final research report on HUD’s website, HUD USER, at https://www.huduser.gov/portal/home.html.

References Brown, Dorothy. (2021). “Your Home’s Value is Based on Racism.” The New York Times.

Dettling, Lisa J., Joanne W. Hsu, Lindsay Jacobs, Kevin B. Moore, and Jeffrey P. Thompson (2017). “Recent Trends in Wealth-Holding by Race and Ethnicity: Evidence from the Survey of Consumer Finances,” The Federal Reserve.

Edbuild (2019). “$23 Billion Report.”

Fairlie, Robert (2020). “The Impact of Covid-19 on Small Business Owners: Evidence of Early- Stage Losses from the April 2020 Current Population Survey.” Stanford Institute for Economic Policy Research.

Federal Deposit Insurance Commission (2021). “National Survey of Unbanked and Underbanked Households.”

Grotto, Jason, Zachary R. Mider, and Cedric Sam (2020). “White America Got a Head Start on Small-Business Virus Relief” Bloomberg, Haythorn, Russell (2020). “An Unconscious Bias? Biracial Denver Couple Says They Faced Discrimination on Home Appraisal.” The Denver Channel.

Henry-Nickie, Makada, Tim Lucas, Radha Seshagiri, and Samantha Elizondo (2021). “Low to Moderate-Income Families Are Losing Ground: How to Save Their Homeownership Dreams.”

The Brookings Institution.

https://www.huduser.gov/portal/about/guidelines_and_brochures.html https://www.huduser.gov/portal/about/guidelines_and_brochures.html https://www.huduser.gov/portal/home.html

Kamin, Debra. 2020.” Black Homeowners Face Discrimination in Appraisals.” The New York Times, August 27, 2021.

Klein, Aaron (2019). “Credit Denial in the Age of AI.” The Brookings Institution.

Massey, Douglas, and Nancy Denton (1993). American Apartheid: Segregation and the Making of the Underclass. Cambridge, MA: Harvard University Press.

McCargo, Alanna, and Jung Hyun Choi (2020). “Closing the Gaps: Building Black Wealth through Homeownership.” Urban Institute.

McManus, Michael (2016). “Minority Business Ownership: Data from the 2012 Survey of Business Owners.” U.S. Small Business Administration Office of Advocacy.

Mitchell, Bruce, and Juan Franco (2018). “HOLC ‘Redlining’ Maps: The Persistent Structure of Segregation and Economic Inequality.” National Community Reinvestment Coalition.

Noel, Nick, Duwain Pinder, Shelley Stewart Ill, and Jason Wright (2019). “The Economic Impact of Closing the Racial Wealth Gap.” McKinsey & Company.

Perry, Andre (2020). Know Your Price: Valuing Black Lives and Property in America’s Black Cities. Brookings Press: Washington DC.

Perry, Andre M (2020). “A Revolution of Values for Black American Families.” The Brookings Institution.

Perry, Andre M., Jonathan Rothwell, and David Harshbarger (2021). “The Devaluation of Assets in Black Neighborhoods.” The Brookings Institution.

Ray, Rashawn, and Andre M. Perry (2021). “Why We Need Reparations for Black Americans.”

The Brookings Institution.

Ray, Rashawn, Jane Fran Morgan, Lydia Wileden, Samantha Elizondo, and Destiny Wiley- Yancy (2021). “Examining and Addressing COVID-19 Racial Disparities in Detroit.” The Brookings Institution.

Ray, Rashawn, Andre Perry, David Harshbarger and Samantha Elizondo (2021).

“Homeownership, Racial Segregation and Policy Solution to Racial Wealth Equity.” Brookings Institution.

Saporito, Salvatore, and Daniel Casey (2015). “Are There Relationships Among Racial Segregation, Economic Isolation, and Proximity to Green Space?” Human Ecology Review 21,

no. 2): pp. 113-32.

Sheridan, Jill (2021). “A Black Woman Says She Had to Hide Her Race to Get a Fair Home Appraisal.” NPR, May 21, 2021.

U.S. Census Bureau (2021). “Quarterly Residential Vacancies and Homeownership, First Quarter 2021.”, April 27, 2021.

U.S. Census Bureau (2019). American Community Survey 2019 (5-Year Estimates). Retrieved from Social Explorer.

Williams, Claire (2020). “’It’s What We Call Reverse Redlining’: Measuring the Proximity of Payday Lenders, Pawn Shops to Black Adults.” Morning Consult.

2. HUD and Program-Specific Goals and Objectives

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

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

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

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

Applicable Goals and Objectives from HUD’s Strategic Plan

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

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

3. 1B: Reduce Homelessness Strengthen Federal, State, Tribal, and community implementation of the Housing First approach to reducing the prevalence of homelessness, with the ultimate goal of ending homelessness.

4. 1C: Invest in the Success of Communities Promote equitable community development that generates wealth-building for underserved communities, particularly for communities of color.

5. 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.

6. 2A: Increase the Supply of Housing Enhance HUD's programs that increase the production and supply of housing across the country.

7. Strategic Goal 3: Promote Homeownership Promote homeownership opportunities, equitable access to credit for purchase and improvements, and wealth-building in underserved communities.

8. 3A: Advance Sustainable Homeownership Advance the deployment of tools and capital that put sustainable homeownership within reach.

9. 3A � Major Initiative: Expand Homeownership Opportunities Promote financing for innovative ownership models to increase the availability of affordable housing.

10. 3B: Create a More Accessible and Inclusive Housing Finance System Advance new policy, programs, and modernization initiatives that support a more equitable housing finance system. Promote the preservation and creation of affordable housing stock.

3. Changes from Previous NOFO

This is a new NOFO.

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

4. Definitions

a. Standard Definitions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Not influence how an applicant is ranked or scored versus other applicants; and Be remedied within the time frame specified in the notice of deficiency.

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

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

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

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, https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 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 transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

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

(1)

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

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

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

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

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

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

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

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

Minority-Serving Institutions (MSIs) are

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

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

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

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

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

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/ 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

(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.

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

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

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

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

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

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

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

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

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.ecfr.gov/current/title-13/chapter-I/part-121?toc=1 https://www.sam.gov/SAM/

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.

None.

B. Authority

This program is authorized by Sections 501 and 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. §1701z-1 and §1701z-2) and funding is provided by the Consolidated Appropriations Act, 2023 (Public Law 117-328), approved December 29, 2022.

II. AWARD INFORMATION

A. Available Funds

Funding of approximately $1,000,000 is available through this NOFO.

Additional funds may become available for award under this NOFO consistent with Section VI.A.2.e., Adjustments to Funding. 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:

$1,000,000 Minimum Award Amount:

$250,000 Per Project Period

Maximum Award Amount:

$1,000,000 Per Project Period

D. Period of Performance

Estimated Project Start Date:

09/15/2023 Estimated Project End Date:

https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government

09/14/2025 Length of Project Periods:

24-month project period and budget period

Length of Periods Explanation of Other:

N/A

E. Type of Funding Instrument

Funding Instrument Type:

CA (Cooperative Agreement)

III. ELIGIBILITY INFORMATION

A. Eligible Applicants

06 (Public and State controlled institutions of higher education)

11 (Native American tribal organizations (other than Federally recognized tribal governments))

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

13 (Nonprofits without 501(c)(3) status with the IRS, other than institutions of higher education)

20 (Private institutions of higher education)

22 (For profit organizations other than small businesses)

Hispanic-serving Institution

Historically Black Colleges and Universities (HBCUs)

Tribally Controlled Colleges and Universities (TCCUs)

Alaska Native and Native Hawaiian Serving Institutions

Additional Information on Eligibility Faith-based organizations

(1) Faith-based organizations may apply for this award on the same basis as any other organization, as set forth at 24 CFR 5.109, and subject to the protections and requirements of 42 U.S.C. 2000bb et seq., HUD will not, in the selection of recipients, discriminate against an organization based on the organization's religious character, affiliation, or exercise.

(2) A faith-based organization that participates in this program will retain its independence and may continue to carry out its mission consistent with religious freedom and conscience protections in Federal law, including the Free Speech and Free Exercise Clauses of the Constitution, 42 U.S.C. 2000bb et seq., 42 U.S.C. 238n, 42 U.S.C. 18113, 42 U.S.C. 2000e-1(a) and 2000e-2(e), 42 U.S.C. 12113(d), and the Weldon Amendment, among others. Religious accommodations may also be sought under many of these religious freedom and conscience protection laws, particularly under the Religious Freedom Restoration Act.

(3) A faith-based organization may not use direct financial assistance from HUD to support or engage in any explicitly religious activities except where consistent with the Establishment https://www.ecfr.gov/current/title-24/subtitle-A/part-5#p-5.109

Clause and any other applicable requirements. Such an organization also may not, in providing services funded by HUD, discriminate against a beneficiary or prospective program beneficiary on the basis of religion, religious belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice.

B. Ineligible Applicants

Individuals, foreign entities, and sole proprietorship organizations are not eligible to compete for, or receive, awards made under this announcement.

C. Cost Sharing or Matching

This Program does not require cost sharing or matching.

D. Threshold Eligibility Requirements

Applicants who fail to meet any of the following threshold eligibility requirements are deemed ineligible. Applications from ineligible applicants are not rated or ranked and will not receive HUD funding.

1. Resolution of Civil Rights Matters

Outstanding civil rights matters must be resolved before the application submission deadline.

Applicants with unresolved civil rights matters at the application deadline are deemed ineligible.

Applications from ineligible applicants are not rated or ranked and will not receive HUD funding.

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

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

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

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

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

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

b. HUD will determine if actions to resolve the charge, cause determination, lawsuit, or letter of findings taken before the application deadline date will resolve the matter. Examples of actions that may be sufficient to resolve the matter include, but are not limited to:

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

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

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

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

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

(6) Dismissal of charges.

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 are marked late. Late applications are ineligible and are not considered for funding. See Section IV. D. Application Submission Dates and Times.

E. Statutory and Regulatory Requirements Affecting Eligibility

Eligibility Requirements for Applicants of HUD’s Financial Assistance Programs The following requirements affect applicant eligibility. Detailed information on each requirement is found in the “Eligibility Requirements for Applicants of HUD’s Financial Assistance Programs” document on HUD’s Funding Opportunities page.

Universal Identifier and System for Award Management (SAM.gov) Requirements Outstanding Delinquent Federal Debts Debarments or Suspensions, or both Mandatory Disclosure Requirement Pre-selection Review of Performance Sufficiency of Financial Management System False Statements Prohibition Against Lobbying Activities

In addition, each applicant under this NOFO must have the necessary processes and systems in place to comply with the Award Term in Appendix A of 24 CFR part 170 if the applicant receives an award, unless an exception applies as provided in 2 CFR170.110.

F. Program-Specific Requirements https://www.hud.gov/grants https://www.hud.gov/grants https://www.ecfr.gov/current/title-25/chapter-I/subchapter-H/part-170 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-170/subpart-A/section-170.110

Advancing Racial Equity In accordance with Executive Order 13985, Executive Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, and federal fair housing and civil rights laws, you must submit a narrative demonstrating the following:

You analyzed the racial composition of the persons or households who are expected to benefit from your proposed grant activities;

You identified any potential barriers to persons or communities of color equitably benefiting from your proposed grant activities;

You detailed the steps you will take to prevent, reduce or eliminate these barriers; and You have measures in place to track your progress and evaluate the effectiveness of your efforts to advance racial equity in your grant activities.

Note that any actions taken in furtherance of this section must be consistent with federal nondiscrimination requirements.

Applicants must demonstrate these four elements in their narrative in the sections that address the following three rating factors: Need for Research (1) and Organizational Capacity and Experience (2.a)

This narrative is required and must address the four bullets outlined above. Applicants will submit this narrative according to the instructions in Section IV.B. This narrative will be evaluated for sufficiency. If the narrative is deemed insufficient, it will be a “Curable Deficiency” that will be communicated to the applicant for correction with a notice of deficiency.

G. Criteria for Beneficiaries.

None.

IV. APPLICATION AND SUBMISSION INFORMATION

A. Obtain an Application Package

Instructions for Applicants All application materials, including the Application Instructions and Application Package, are available through Grants.gov. You must access and review all available application materials.

You must submit your application electronically via Grants.gov under the Funding Opportunity Number cited within this NOFO. Your application must list the applicable Funding Opportunity Number.

You can request a waiver from the requirement for electronic submission, if you demonstrate good cause. An example of good cause may include: a lack of available Internet access in the geographic area in which your business offices are located. However, lack of SAM registration or valid UEI is not a good cause.