Section 811 Capital Advance Modification.pdf

U.S. Department of Housing and Urban Development

Housing

Section 811 Supportive Housing for Persons with Disabilities (Capital Advance)

MODIFICATION

FR-6300-N-49

Application Due Date: 02/10/2020

Section 811 Supportive Housing for Persons with Disabilities (Capital Advance)

MODIFICATION

FR-6300-N-49

TABLE OF CONTENTS

I. Funding Opportunity Description.

II. Award Information.

III. Eligibility.

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 Affecting Eligibility.

G. Criteria for Beneficiaries.

IV. Application and Submission Information.

A. Obtaining an Application Package.

B. Content and Form of Application Submission.

C. System for Award Management (SAM) and Dun and

Bradstreet Universal Numbering System (DUNS) Number.

D. Application Submission Dates and Times.

E. Intergovernmental Review.

F. Funding Restrictions.

G. Other Submission Requirements.

V. Application Review Information.

A. Review Criteria.

B. Review and Selection Process.

VI. Award Administration Information.

A. Award Notices.

B. Administrative, National and Department Policy

Requirements for HUD recipients.

C. Reporting.

D. Debriefing.

VII. Agency Contacts.

VIII. Other Information.

IX. Appendix.

U.S. Department of Housing and Urban Development

Program Office: Housing Funding Opportunity Title: Section 811 Supportive Housing for

Persons with Disabilities (Capital Advance) MODIFICATION

Announcement Type: Modification Funding Opportunity Number: FR-6300-N-49 Primary CFDA Number: 14.181 Due Date for Applications: 02/10/2020

Overview Prospective applicants should carefully read all instructions in all sections to avoid sending an incomplete or ineligible application. HUD funding is highly competitive. Failure to respond accurately to any submission requirement could result in an incomplete or noncompetitive proposal.

HUD is prohibited from disclosing 1) information regarding any applicant’s relative standing,

2) the amount of assistance requested by an applicant, and 3) any information contained in the application. Prior to the application deadline, HUD may not disclose the identity of any applicant or the number of applicants that have applied for assistance.

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

OMB Approval Number(s): 2502-0462

Paperwork Reduction Act.

I. Funding Opportunity Description.

A. Program Description.

1. Purpose.

The Section 811 Supportive Housing for Persons with Disabilities Program aims to expand the supply of integrated affordable housing by providing Capital Advance funding for the development of permanent supportive rental housing for very-low-income persons with disabilities age 18 years or older. The program also provides project rental subsidies in the form of a Project Rental Assistance Contract (“PRAC”) to maintain ongoing affordability over the next forty years. These units provide persons with disabilities the opportunity to live with dignity and independence within the community in an integrated environment that provides access to appropriate and voluntary supportive services.

Individuals with disabilities have historically faced discrimination that limited opportunities to live independently in the community and often required persons to live in institutions and other segregated settings. In 1999, the United States Supreme Court issued the landmark decision in Olmstead v. L.C., 527 U.S. 581 (1999), affirming that the unjustified segregation of individuals with disabilities is a form of discrimination prohibited by Title II of the Americans with Disabilities Act (ADA). Persons with disabilities must have choice in the housing, health care, and related support services they receive. As individual states facilitate the transition and integration of individuals with disabilities from institutional and other segregated settings into the community, Sponsors/Owners of supportive rental housing for persons with disabilities have an opportunity to design innovative approaches to meet the associated challenges and opportunities.

HUD is committed to helping Sponsors/Owners offer very low-income persons with disabilities housing options that provide meaningful choices about housing, health care, and long-term services and support so they can participate fully in community life. The Frank Melville Supportive Housing Investment Act of 2010 (Pub. L. No. 111-374) amended Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), including the PRAC program, to better achieve this goal.

The Department of Housing and Urban Development ("HUD") seeks to fund innovative Section 811 permanent supportive housing models that will be at the forefront of design, service delivery and efficient use of federal resources To meet this goal, HUD expects successful applications to demonstrate best practices or innovation in both physical design and supportive services. Proposals must promote the long-term housing security and facilitate community integration of persons with disabilities. HUD aims to provide Capital Advance funding to those applicants who use Capital Advance funds to leverage other financing sources to meet the goal of the development of permanent supportive housing and increasing the number of units produced per dollar of Federal resources. For more information about specific Review Criteria see Section V.A.

Partnerships.

Sponsors/Owners are encouraged to establish formal partnerships with health and human service agencies or other organizations with a demonstrated capacity to coordinate voluntary services and supports to enable individuals to live independently in the community. These partner organizations should assist the Owners by providing referrals of potential tenants, assisting with a timely transition to a unit, and providing the opportunity to access supportive services and supports. Demonstrated capacity may refer to previous experience as well as a well-developed plan to provide referrals, services, and supports. At a minimum, a well-developed supportive services plan:

Aligns with the applicant’s Local/State’s approach to expanding community living opportunities for persons with disabilities.

Documents an implementation and sustainment strategy for providing outreach and referrals, transition services, tenancy support, and other services and supports as needed.

Discusses the applicant’s approach for development and capacity building within the partnership.

In addition to receiving referrals from partner organizations, the Owners must allow non-elderly persons with disabilities to apply for housing directly without going through a partner agency.

There is no limit to the number of agencies an Owner may partner with for referrals and supportive services.

In addition to local service providers, HUD encourages applicants to partner with one or more of the following State service agencies that offer supports:

State Medicaid Agency State Developmental Disability Services Agency State Mental Health Authority Centers for Independent Living

Such partnerships cannot result in eligibility requirements which may violate non discrimination requirements under any applicable Federal civil rights statutes and requirements, including Section 504 of the Rehabilitation Act (Section 504), titles II or III of the Americans with Disabilities (ADA), and the Fair Housing Act and their implementing regulations at 24 CFR part 8; 28 CFR parts 35 and 36; 24 CFR part 100.

2. Changes from Previous NOFA.

Modifications have been made to Rating Factor 3 Soundness of Approach

1. (5 points) Affirmatively Furthering Fair Housing (AFFA)

Modification: To remove ambiguity the modification will add language to clarify what components will be evaluated during the rating of this factor and their associated points. These components will be consistent with the AFFH Rating Factor in previous Section 811 Capital Advance NOFAs.

1. (3 points) Site and Neighborhood Standards.

Modification: Adding language to clarify that only projects that do not involve new construction will need to respond to this rating factor and that applications that involve new construction will automatically receive the full three points for this rating factor, since they will have already passed the site and neighborhood standards eligibility review.

Please review Section V. Application Review Information for further details on the Modifications.

Funding for this program was last provided in Fiscal Year 2010. Since that time, the Frank Melville Supportive Housing Act of 2010 made numerous changes to the program structure. As a result, in this NOFA there have been major changes to the program delivery systems in several areas including emphasis on the following:

Leveraging. Applicants are highly encouraged to leverage other sources of funds to support the development of the Section 811 units.

Partnership. Heightened focus on sustained partnerships between the applicant and key stakeholders that provide a foundation for implementing housing-related services and supports.

Site Control. All proposals must provide evidence of site control. Site-identified proposals are ineligible. Acceptable documentation of site control may be a deed, or lease, or a purchase agreement, or an option to purchase the site and is contingent only upon receipt of the grant from this NOFA, or an agreement to enter into a lease, or a letter stating the terms of the sale or lease.

Types of housing. Eligible housing types are limited to integrated housing (units within a multifamily property), group homes and condominiums. The number of units set aside for persons with disabilities within a condominium or multifamily property including supportive housing for persons with disabilities or to which any occupancy preference for persons with disabilities applies, may not exceed 25 percent of the total number of dwelling units. A more detailed definition of housing types can be found in the section below at 4. Program Definitions.

Low-Income Housing Tax Credit Projects. Projects assisted with low-income housing tax credits or with tax-exempt housing bonds, shall have an initial rental assistance contract term of not less than 30 years and shall provide funding for a term of 5 years.

Delegated processing. Delegated processing will be made available for multifamily projects that consist of a combination of capital advance and other sources. This option is not available for any project that is a group home.

Affirmatively Furthering Fair Housing (AFFH). Rating Factor 3, Soundness of Approach, Affirmatively Furthering Fair Housing (AFFH) has been modified to remove the ambiguity and add language to clarify what components will be evaluated during the rating of this factor.

Site and Neighborhood Standards. Rating Factor 3, Soundness of Approach, Site and Neighborhood Standards has been modified to clarify that projects that do not involve new construction will need to respond to this sub rating factor.

Please be sure to carefully review updated program requirements and regulations referred to in this NOFA.

3. Definitions.

a. Standard Definitions

Affirmatively Furthering Fair Housing (AFFH) Regulations. Statutory obligation to affirmatively further the purposes and policies of the Fair Housing Act and guidance promulgated thereunder.

Assurances. By submitting your application, you provide assurances that, if selected to receive an award, you will comply with U.S. statutory and public policy requirements, including, but not limited to civil rights requirements.

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

Award, as used in this NOFA means a federal grant OR cooperative agreement as specified in Section II.E (Type of Funding Instrument).

Catalog of Federal Domestic Assistance (CFDA) is a directory of the various Federal listings, projects, services and activities offering financial and non-financial assistance and benefits to the American public. CFDA Number is the unique number assigned to each program, project, service or activity listed in the Catalog of Federal Domestic Assistance (CFDA).

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

Contract means a legal instrument by which a non-Federal entity purchases property or services needed to carry out the project or program under a Federal award. The term as used in this NOFA does not include a legal instrument, even if the non-Federal entity considers it a contract, when the substance of the transaction meets the definition of a Federal award or subaward (See 2 CFR 200.22.)

Contractor means an entity receiving a contract.

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

Curable Deficiency – Applicants may correct a curable deficiency with timely action.

To be curable the deficiency must:

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

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

Non-Curable Deficiency – An applicant cannot correct a non-curable deficiency after the submission deadline.

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

DUNS Number is the nine-digit identification number assigned to a business or organization by Dun & Bradstreet and provides a means of identifying business entities on a location-specific basis. Requests for a DUNS number can be made by visiting the Online DUNS Request Portal.

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

Federal Awardee Performance and Integrity Information System (FAPIIS) is a database that has been established to track contractor misconduct and performance.

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 in Grants.gov is required for submission of applications to prospective agencies.

Historically Black Colleges and Universities (HBCUs). -The Higher Education Act of 1965 defines historically Black colleges and universities (HBCUs) as "any historically Black college or university that was established prior to 1964, whose principal mission was, and is, the education of Black Americans, and that is accredited by a nationally recognized accrediting agency or association determined by the Secretary 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…"

Institution of Higher Education (IHE), has the meaning given at 20 U.S.C. 1001.

Non-Federal Entity means a state, local government, Indian tribe, institution of higher education (IHE), or non-profit organization carrying out a Federal award as a recipient or sub recipient.

Nongovernmental organizations include Non-Federal entities and for-profit entities for the purpose of calculating indirect cost proposals accompanying applications submitted under this

NOFA.

Personally identifiable information (PII) means information that can be used to distinguish or trace an individual's identity, either alone or when combined with other personal or identifying information that is linked or linkable to a specific individual. The definition of PII is not anchored to any single category of information or technology. Rather, it requires a case-by-case assessment of the specific risk that an individual can be identified. For more detail, refer to 2

CFR 200.79.

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

Opportunity Zone according to the IRS, is an “economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment.”

Opportunity Zones are further defined in 26 U.S.C. 1400Z.

Promotores/Promotoras are Spanish-speaking Community Health Workers who work in their communities to reduce barriers to health services and make health care systems more responsive.

Recipient means a non-Federal entity receiving an award directly from HUD to carry out an activity under a HUD program.

Section 3 Business Concern means a business concern: (1) 51 percent or more owned by Section 3 residents; (2) of which at least 30 percent of permanent, full-time employees are currently Section 3 residents, or were Section 3 residents within three years of the date of first employment with the business concern; or (3) provides evidence of a commitment to subcontract over 25 percent of the dollar award of all subcontracts to be awarded to business concerns meeting the qualifications in this definition.

Section 3 Residents means: 1) Public housing residents; or 2) Low and very-low income persons, as defined in 24 CFR 135.5, who live in the metropolitan area or non-metropolitan county where Section 3 covered assistance is expended.

Standard Form 424 (SF-424) means the government-wide forms required to apply for Application for Federal Assistance Programs, required by discretionary Federal grants and other forms of financial assistance programs. Applicants for this Federal assistance program must submit all required forms in the SF-424 Family of forms, including SF-424B. For an application under this notice to be complete, the applicant must sign and submit all required forms in the SF-424 Family.

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 recipient. It does not include payments to a contractor or payments to an individual 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. The legal agreement must contain the subrecipient’s assurance of compliance with program requirements, including but not limited to nondiscrimination and equal opportunity requirements.

Subrecipient means a non-Federal entity receiving a subaward from a pass-through entity to carry out part of a HUD program; but does not include an individual beneficiary of such program. A subrecipient may also receive other Federal awards directly from a Federal awarding agency (including HUD).

System for Award Management (SAM), is an official website of the U.S. government. SAM is a U.S. Government system that consolidated the capabilities of Central Contractor Registry (CCR), Excluded Parties List System (EPLS) and the Online Representations and Certifications Application (ORCA). Registration with Sam.gov is required for submission of applications via

Grants.gov. You can access the website at Sam.gov There is no cost to use SAM.

Threshold Requirement – Threshold requirements are a type of eligibility requirement.

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

4. Program Definitions.

For purposes of the Section 811 Supportive Housing for Persons with Disabilities Program, the following definitions apply provided that, in the event of any conflict between such definition and the provisions of 24 C.F.R. Part 891, the definitions in 24 C.F.R Part 891 shall govern. For additional applicable definitions, applicants should reference the governing statute, Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), as amended, and the implementing regulations at 24 C.F.R. Part 891.

a. Group Home means a single-family residential structure designed or adapted for occupancy by not more than 8 persons with disabilities, which provides a separate bedroom for each tenant of the residence. One hundred percent of the units may be made available for person with disabilities. Not more than one home may be located on any one site and no such home may be located on a site contiguous to another site containing such a home. The minimum group home standards are codified at 24 C.F.R 891.310. NOTE: Applicants should ensure that any proposed Group Home meets the Home and Community Based Settings (HCBS) and size requirements allowed within the state Transition Plan where the housing is to be developed. Additional information can be found at https://www.medicaid.gov/medicaid/hcbs /transition-plan/index.html and https://www.medicaid.gov/medicaid/hcbs/downloads/final-rule-slides-01292014.pdf

b. Institutional or other segregated settings include, but are not limited to: Settings that are located in a building that is also a publicly or privately operated facility that provides inpatient institutional treatment; settings that are in a building located on the grounds of, or immediately adjacent to, a public institutional setting; and any other settings that have the effect of isolating individuals receiving Medicaid home and community-based services (HCBS) from the broader community of individuals not receiving Medicaid HCBS. Additional information regarding Medicaid HCBS can be found at https://www.medicaid.gov/medicaid/hcbs/index.html.

c. At serious risk of institutionalization, includes an individual with a disability for whom a public entity's failure to provide community services, or a cut to such services will likely cause a decline in health, safety, or welfare that could lead to the individual's eventual placement in an institution. This includes individuals experiencing a lack of access to supportive services for independent living, individuals facing long waiting lists for (or lack of access to) housing combined with community-based services, individuals currently living under poor housing conditions with barriers to geographic mobility, individuals experiencing homelessness, and/or individuals currently living alone but requiring supportive services for independent living. A person cannot be considered at serious risk of institutionalization unless the person has a disability. An individual may be designated as at serious risk of institutionalization either by a health and human services agency, by a community-based https://www.medicaid.gov/medicaid/hcbs/transition-plan/index.html https://www.medicaid.gov/medicaid/hcbs/transition-plan/index.html https://www.medicaid.gov/medicaid/hcbs/downloads/final-rule-slides-01292014.pdf https://www.medicaid.gov/medicaid/hcbs/downloads/final-rule-slides-01292014.pdf https://www.medicaid.gov/medicaid/hcbs/index.html organization, or by self-identification.

d. Capital Advance means funds provided under this NOFA that must be used to finance new construction, rehabilitation, or acquisition with or without rehabilitation. (See Section II.C. for additional information). Capital Advance funds bear no interest and repayment is not required when the housing remains available for occupancy by very-low-income persons with disabilities for at least 40 years.

e. Condominium means a system of ownership of individual units in a multifamily structure, combined with joint ownership of commonly used property. No more than 25 percent of the total number of dwelling units may be set aside for persons with disabilities. Units must have a private kitchen and bath. Units must be scattered throughout the development.

f. Eligible Occupancy is a project that serves persons with disabilities as defined in 42 U.S.C.

8013(k). Consistent with 8013(i), an owner may request the Secretary's approval to limit occupancy within the housing to persons with disabilities who can benefit from the supportive services offered in connection with the housing.

g. Home and Community-Based Services (HCBS) are those that provide opportunities for beneficiaries to receive services in their own homes or communities rather than institutions or other isolated settings. These programs serve a variety of targeted population groups, such as individuals with intellectual or developmental disabilities, physical disabilities, and/or mental illnesses.

In 2014, the Centers for Medicare & Medicaid Services (CMS) issued a rule that established requirements for the qualities of settings that are eligible for reimbursement of Medicaid home and community-based services (HCBS). To implement the CMS rule, state Medicaid agencies have been developing statewide transition plans to, among other things, define the level of integration required in settings that serve people with disabilities who live in the community and whose services are funded through a Medicaid HCBS waiver (see https://www.medicaid .gov/medicaid/hcbs/transition-plan/index.html and https://www .medicaid.gov/medicaid/hcbs /downloads/final-rule-slides-01292014.pdf). As individual states facilitate the transition and integration of individuals with disabilities from institutional and other segregated settings into the community and better define the expected level of integration of properties, Sponsors/Owners of supportive rental housing for persons with disabilities have an opportunity to design innovative approaches to meet the challenges and opportunities of this new policy approach.

h. Integrated Housing means a multifamily residential property where no more than 25 percent of the units are set aside for persons with disabilities, including supportive housing for persons with disabilities and units to which any occupancy preference for persons with disabilities applies. Units for residential managers are ineligible for funding. Each property must have a minimum of 5 units. Units must have a private kitchen and bath. Units must be scattered throughout the development and cannot be segregated to a specific floor or wing.

i. Integrated Settings. Within the context of housing, integrated settings are those that enable individuals with disabilities to live as similarly as possible to individuals without disabilities.

https://www.medicaid.gov/medicaid/hcbs/transition-plan/index.html https://www.medicaid.gov/medicaid/hcbs/transition-plan/index.html https://www.medicaid.gov/medicaid/hcbs/downloads/final-rule-slides-01292014.pdf

Integrated settings also enable individuals with disabilities to live independently among individuals without disabilities and without restrictive rules that limit their activities or impede their ability to interact with individuals without disabilities. Examples of integrated settings include scattered-site apartments providing permanent supportive housing, and apartments for individuals with various disabilities scattered throughout multifamily housing developments.

See page 6, of the guidance in https://archives.hud.gov/news/2013/OlmsteadGuidnc060413.pdf.

j. Multifamily Housing Property is housing consisting of 5 or more separate residential units contained within one building or several buildings within one complex.

k. Operating Costs are HUD-approved expenses relating to the provision of housing and includes certain administrative expenses, maintenance expenses, security expenses, utilities expenses, taxes and insurance, and allowances for reserves. Operating costs do not include payments toward debt service. See 24 C.F.R 891.105 for a detailed description.

l. Owner means a single-purpose nonprofit organization established by the Sponsor that will receive a capital advance and project rental assistance payments to develop and operate, as its legal owner, supportive housing for persons with disabilities under this part. The purposes of the Owner must include the promotion of the welfare of persons with disabilities. The Owner may not be controlled by or under the direction of persons or firms seeking to derive profit or gain therefrom.

m. Persons with Disabilities shall have the meaning provided in Section 811 of the Cranston- Gonzalez National Affordable Housing Act (42 U.S.C. 8013(k)(2)) and 24 C.F.R 891.305.

n. Project Rental Assistance Contract ("PRAC") is the contract entered into by the Owner and HUD setting forth the rights and duties of the parties under the contract with respect to project rental assistance payments. PRACs are used to cover the difference between the tenants' contributions toward rent and the HUD-approved operating cost. PRAC funds may not be used for supportive services. The initial term of a contract shall be 20 years, except that, in the case of the sponsor of a project assisted with any low-income housing tax credit pursuant to section 42 of the Internal Revenue Code of 1986 (26 USCS § 42) or with any tax-exempt housing bonds, the contract shall have an initial term of not less than 30 years. PRACs under this NOFA shall provide funding for an initial term of 5 years. The Secretary shall, to the extent approved in appropriation Acts, upon expiration of a contract (or any renewed contract), renew such contract. In order to facilitate the orderly extension of expiring contracts, the Secretary is authorized to make commitments to extend expiring contracts during the year prior to the date of expiration.

o. Sponsor/(co-Sponsor) means any eligible applicant that has been made an award of funds under this NOFA. A Sponsor must be a nonprofit entity. The Sponsor must be approved by the Secretary as to the administrative and financial capacity to receive an award under this NOFA.

A National Sponsor is an organization that has one or more Section 811 projects under reservation, construction or management in two or more different HUD geographical regions.

The terms “Sponsor” and “Applicant” are used interchangeably in this NOFA. The regulatory definition of Sponsor can be found at 24 C.F.R. 891.305.

https://archives.hud.gov/news/2013/OlmsteadGuidnc060413.pdf

p. State Transition Plans. Statewide Transition Plans are documents describing how states will assess and remedy their compliance with the new HCBS regulation requirements, and then provide this written description to CMS. States will also assess individual settings/types of settings to further document their compliance. States must make a list of settings that are and are not in compliance. Some settings may be labeled as “isolating” or “institutional.” Public feedback in response to the list is welcomed, and it must be available for 30 days of public comment. States are at different stages of developing their Transition Plans, and therefore have been sharing and asking for public comment on their Transition Plan draft at different times.

Applicants should visit the HCBS Advocacy website for information on specific comment periods and the status of their state’s transition plan.

q. Supportive Housing means permanent affordable, community-based, lease-based housing that provides tenants with the rights and responsibilities of tenancy and links them to voluntary and flexible person-centered supports and services. Successful supportive housing provides access to needed community-based services that are designed to foster and sustain housing stability.

r. Very-Low Income shall have the same meaning provided in section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a)

5. Web Resources.

Affirmatively Furthering Fair Housing Regulations Code of Conduct list Do Not Pay Dun & Bradstreet Equal Participation of Faith-Based Organizations Federal Awardee Performance and Integrity Information System FFATA Subaward Reporting System Grants.gov Healthy Homes Strategic Plan Healthy Housing Reference Manual HUD Funding Opportunities HUD’s Strategic Plan HUD Grants Limited English Proficiency NOFA webcasts Opportunity Zone Procurement of recovered materials Section 3 Business Registry https://www.law.cornell.edu/topn/low-rent_housing_act https://www.law.cornell.edu/topn/low-rent_housing_act https://www.law.cornell.edu/uscode/text/42/1437a https://www.hudexchange.info/programs/affh/ https://portal.hud.gov/hudportal/HUD?src=/program_offices/spm/gmomgmt/grantsinfo/conduct http://donotpay.treas.gov/ http://fedgov.dnb.com/webform https://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=d67b2c9e097a45629d959d63e5e4f297&ty=HTML&h=L&mc=true&r=SECTION&n=se24.1.5_1109 https://www.fapiis.gov/fapiis/index.action https://www.fsrs.gov/ https://grants.gov https://www.hud.gov/sites/documents/DOC_13701.PDF https://www.cdc.gov/nceh/publications/books/housing/housing_ref_manual_2012.pdf https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail https://www.hud.gov/program_offices/spm/strategicplan2014_2018 https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo https://www.hud.gov/program_offices/fair_housing_equal_opp/limited_english_proficiency_0 https://portal.hud.gov/hudportal/HUD?src=/press/multimedia https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx https://www.ecfr.gov/cgi-bin/text-idx?SID=91f378a1992b84880fbe5823086278fc&mc=true&node=pt2.1.200&rgn=div5#se2.1.200_1322 https://portalapps.hud.gov/Sec3BusReg/BRegistry/What

State Point of Contact List System for Award Management (SAM) Uniform Relocation Act – Real Property Acquisition and Relocation Requirements USA Spending

B. Authority.

The Section 811 Supportive Housing for Persons with Disabilities program is authorized by Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), as amended, and Consolidated Appropriations Act of 2018 (Pub. L. No. 115-141), and the Consolidated Appropriations Act of 2019 (Pub. L. No. 116-6).

II. Award Information.

A. Available Funds.

Funding of up to $75,000,000 is available through this NOFA.

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

B. Number of Awards.

HUD expects to make approximately 30 awards from the funds available under this NOFA.

HUD expects to make approximately 25 -30 awards from the funds available under this NOFA.

The precise number of awards will depend on the eligible proposals.

C. Minimum/Maximum Award Information.

1. Maximum Capital Advance Award Amount: Total Development Cost Limit for Project Type (Condominium, Group Home, or Integrated Housing) and Size. The award must not exceed the development cost limits.

2. Project Rental Assistance Contract (PRAC): In addition to the above capital advance amounts, HUD will award PRACs under this NOFA according to the current Operating Cost Standards. PRAC funds will cover the difference between the HUD approved operating costs of the project and the tenants’ contributions toward rent (30 percent of their adjusted monthly income). HUD anticipates that at the end of the contract terms, renewals will be approved subject to the availability of annual appropriated funds. Except for projects assisted with low-income tax credits or tax-exempt bonds, the initial contract term will be 20 years. For projects that are assisted with low-income housing tax credits or tax-exempt bonds, the contract term will be 30 years. For PRACs awarded under this NOFA, HUD will initially reserve 5 years of funding for the PRAC and fund subsequent PRAC renewals from the Housing for Persons with Disabilities renewal account, subject to the availability of annual appropriations for such https://www.whitehouse.gov/wp-content/uploads/2019/02/SPOC-February-2019.pdf https://beta.sam.gov/ https://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/library/relocation https://www.usaspending.gov/Pages/Default.aspx purpose.

Applicants must indicate the number of units for which they are requesting PRAC assistance in the Project Development Plan. HUD will reserve funding for the first 5-year term of the PRAC, equivalent to 75% of the Operating Cost Standard for units covered by the PRAC. No more than 25% of the total units in an Integrated Housing setting may be set aside for persons with disabilities or may have any occupancy preference for persons with disabilities apply.

3. Development Cost Limitations. The amount of the Capital Advance funds requested may not exceed the Total Development Cost as published by HUD at this location. The development cost limit is determined by identifying the appropriate building type (elevator, non-elevator) and unit size(s) in the development proposal. Funds must not exceed the total development cost limits for no more than 25% of units in Integrated Housing.

NOTE: HUD will permit the subordination of Capital Advance recorded documents, except for the Capital Advance Use Agreement, to other financing liens on a case-by-case basis for good cause to facilitate a mixed-finance transaction. More details about mixed-finance development in the Section 811 program can be found at 24 C.F.R. Part 891, sub-part F, entitled “For-Profit Limited Partnerships and Mixed-Finance Development for Supportive Housing for the Elderly or Persons with Disabilities.”

4. Project Awards. The information below refers to the estimated sum of funds awarded for each selected application for the Capital Advance and the initial year of the PRAC.

Estimated Total Funding: $75,000,000 Minimum Award Amount: $ 1 Maximum Award Amount: $2,500,000

5. Limitation on Use of Funds. No assistance received under this NOFA may be used to replace other State or local funds previously used, or designated for use, to assist persons with disabilities.

Estimated Total Funding: $75,000,000 Minimum Award Amount: $1 Per Budget Period Maximum Award Amount: $2,500,000 Per Budget Period

D. Period of Performance.

Immediately upon an applicant’s acceptance of the Agreement Letter, the applicant is expected to begin working towards the submission of a Firm Commitment Application, which is the next application submission stage and is due 180 days after acceptance of the Agreement Letter.

https://www.hud.gov/sites/dfiles/PIH/documents/TDCs_2019_Final.pdf

1. Preliminary Approval. All Agreement Letters will incorporate the recipient's responsibilities and will stipulate that a Section 811 Fund Reservation award constitutes preliminary approval of an application; that a Section 811 Fund Reservation award does not constitute an approval of the site, which may occur only upon completion of HUD's environmental review and notification of approval. If HUD finds the site acceptable but only with mitigation, and the Applicant cannot meet the mitigation requirements, or if HUD determines that even with mitigation the site is unacceptable, the Section 811 Fund Reservation award may be terminated.

2. Award Termination: HUD reserves the right to rescind and award funds to other eligible applicants if HUD reasonably believes that awarded funds are at risk of not being expended within the applicable deadlines.

3. Post Award Amendment Needs: The capital advance funds awarded for this project are to be considered the total amount of funds that the Department will provide for the development of this project. Amendment funds are subject to availability and all appropriations requirements and may only be provided in exceptional circumstances (e.g., but not limited to, increased costs due to litigation, new government regulations or controls, additional requirements imposed by local authorities, or a disaster as declared by the President of the United States) that are clearly beyond the Sponsor’s control. If amendment funds are not approved, the Sponsor is responsible for any costs over and above the capital advance amount provided by the Department.

4. Initial closing of the capital advance and start of project construction are expected to be accomplished within 24 months after the date of the Agreement Letter. HUD expects Sponsors to have commitments for all funds and required permits no later than 12 months following the acceptance of the Agreement Letter.

5. The Project Start Date is the estimated date of the Agreement Letter and the Project End Date is the expiration of the first year of operations pursuant to a PRAC. These dates are estimates only and will be adjusted depending on the actual date of the award commitment letter and the Length of the Project Period.

Estimated Project Start Date: 04/01/2020 Estimated Project End Date: 7/01/2022 Length of Project Periods: Other Length of Project Periods Explanation of Other: The project period consists of the time from award to construction completion, with no less than 12 months of operations under a

PRAC.

Estimated Project Start Date: 06/01/2020 Estimated Project End Date: 05/31/2024 Length of Project Periods: 60-month project period with five 12-month budget periods Length of Project Periods Explanation of Other:

E. Type of Funding Instrument.

Funding Instrument Type: Grant

F. Supplementation.

If selected, an awardee will receive a fund reservation for the approved Capital Advance funds.

HUD will also use funds under this NOFA to reserve funds to support the PRAC subsidy. HUD will initially reserve 5 years of funding for the PRAC and fund subsequent PRAC renewals from the Housing for Persons with Disabilities renewal account, subject to the availability of annual appropriations for such purpose.

The Agreement Letter obligates the funds and stipulates the terms and conditions for the Section 811 fund reservation award as well as the programmatic requirements following the fund reservation award.

III. Eligibility.

A. Eligible Applicants.

Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education Others (see text field entitled "Additional Information on Eligibility" for clarification)

Additional Information on Eligibility:

Eligible applicants are Sponsors or Co-Sponsors that are nonprofit organizations with a section 501(c)(3) tax exemption from the Internal Revenue Service, other than institutions of higher education, and who meet the threshold requirements contained in Section III below.

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

Eligible Activities Section 811 capital advance funds must be used to finance the development of housing through new construction, rehabilitation, or acquisition with or without rehabilitation. The types of housing that can be developed with Section 811 capital advance funds include dwelling units in integrated housing setting, condominium housing, and small group homes. In accordance with 24 CFR 891.800, capital advance funds may be used in combination with other non-Section 811 funding sources leveraged by a single-purpose and single-asset for-profit limited partnership to develop a mixed-finance project, which may or may not include additional unassisted housing units for persons with disabilities over and above the Section 811 units.

PRAC funds are provided to cover the difference between the HUD-approved operating costs and the amount the residents pay. HUD will not provide PRAC funds for non-Section 811 units.

Units must be integrated within a larger multifamily housing property where no more than 25 percent of the total units being developed, rehabilitated, or acquired are used for persons with disabilities, including supportive housing for persons with disabilities or units to which any occupancy preference for persons with disabilities applies.

B. Ineligible Applicants.

Section 811 capital advance funds may not be used to construct or operate Assisted Living Facilities.

C. Cost Sharing or Matching.

This Program does not require cost sharing, matching or leveraging.

No cost sharing or match is required; however, applicants are required to make a commitment to cover the estimated start-up expenses, the minimum capital investment of one half of one percent of the HUD-approved capital advance, not to exceed $10,000, and any funds required in excess of the capital advance, including the estimated cost of any amenities or features (and operating costs related thereto) which are not covered by the capital advance.

Leverage: Applicants will be rated on the amount of additional financing brought to the project in relation to the amount of capital advance funding requested in the application. See Section V.

D. Threshold Eligibility Requirements.

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

Outstanding civil rights matters must be resolved to HUD’s satisfaction prior to grant award, provided that all applicable legal processes have been satisfied.

1. Timely Submission of Applications. – Applications submitted after the deadline stated within this NOFA that do not meet the requirements of the grace period policy will be marked late. Late applications are ineligible and will not be considered for funding. See also Section IV Application and Submission Information, part D. Application Submission Dates and Times.

2. Complete Application. HUD reserves the right to determine whether an application is substantially deficient and non-responsive to the NOFA application requirements. Refer to Section IV.B., Content and Form of Application Submission, for information on the required documentation for submission with the application to ensure that your application is complete at time of submission. HUD will not accept paper copies of the application.

3. Eligible Applicant. Sponsor must document their status as a non-profit organization.

Applicants and any other organization(s) that is co-sponsoring the application must submit the following:

a. Articles of Incorporation, Constitution, or other organizational documents;

b. By-laws; and

c. IRS tax exemption ruling (including churches).

HUD will review the applicant's 501(c)(3) Articles of Incorporation, Constitution, By-Laws, or other organizational documents to determine, among other things, that (i) the applicant is an eligible non-profit entity (ii) the applicant's corporate purposes are sufficiently broad to provide the legal authority to sponsor the proposed project for persons with disabilities and to apply for Capital Advance funds and PRAC funds, (iii) language is included in the documents stating that no part of the net earnings inures to the benefit of any private party, (iv) that the applicant is not controlled by, or under the direction of, persons seeking to derive profit or gain therefrom, and

(v) that the membership of the governing board is selected in a manner to assure that there is significant representation of the views of persons with disabilities.

Applicants that are mixed-finance owners, for the purpose of a mixed-finance development of housing under this program, must provide evidence of their structure as a single-asset, for-profit limited partnership of which one or more private non-profit organizations hold all general partner interests. See 24 C.F.R. 891.805 for more information on HUD's definition of a mixed-finance owner and for-profit limited partnership.

Applicants must provide the above required documents/information in the application under Tab A

4. Market Need.

Applicants are required to provide a Statement of Need. The statement must evidence the applicant’s understanding of the market need for housing for low-income disabled noninstitutionalized persons. Low-income disabled noninstitutionalized persons are defined as persons who are at least 18 years of age and no older than 64 years of age, have a disability, and who are below the poverty line. HUD will assess the unmet housing needs of noninstitutionalized persons with disabilities relative to the number of proposed assisted units in the local area.

Applicants must provide the above required documents/information in the application under Tab B

5. Project Type. Funding will be provided for housing types described below. Applicants must provide a written narrative describing their proposed project.

a. Integrated Housing. a multifamily residential property where no more than 25 percent of the units are used for persons with disabilities, including supportive housing for persons with disabilities or units to which any occupancy preference for persons with disabilities applies.

Units for residential managers are ineligible for funding. Each property must have a minimum of 5 units. Units must have a private kitchen and bath. Units must be scattered throughout the development.

NOTE: Units located within a multifamily housing property are subject to Universal Physical Inspections to ensure the health and safety of tenants. In addition to the individual unit inspections, areas including common buildings used by residents such as laundry buildings, offices, or a community center, and buildings with common areas that have HUD subsidized units must be inspected in accordance with the UPCS…