Section-811-PRA-NOFO_FR-6900-N-53.pdf

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Project Rental Assistance Program of Section 811 Supportive Housing for Persons with Disabilities FY 2025
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This is a Notice of Funding Opportunity (NOFO) from the Department of Housing and Urban Development (HUD) for the Project Rental Assistance Program of Section 811 Supportive Housing for Persons with Disabilities for FY 2025, with funding opportunity number FR-6900-N-53. The program will provide approximately $150 million to fund around 15 awards through cooperative agreements to state housing agencies to provide project-based rental assistance for extremely low-income persons with disabilities.

Applications are due by April 17, 2025, with an anticipated award date of August 1, 2025. Only state governments are eligible to apply, and applicants must have an Inter-Agency Partnership Agreement with their state's health/human services and Medicaid agencies. The program requires rental units to be in properties with at least 5 units, with no more than 25% of units designated for persons with disabilities. Administrative costs are capped at 8% of the total award. The performance period is 60 months, consisting of five 12-month budget periods. Key evaluation criteria include relevant experience (33 points), need/housing platform (5 points), implementation approach (55 points), and program innovation (7 points). Applications must score at least 75 points to be considered for funding.

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FON

FR-6900-N-53

Applications Due 04/17/2025

Organization Name Title

Project Rental Assistance Program of Section 811 Supportive Housing for Persons with Disabilities FY 2025

Table of Contents

BEFORE YOU BEGIN

I. BASIC INFORMATION

A. Summary

B. Agency Contact(s)

II. ELIGIBILITY

A. Eligible Applicants

B. Cost Sharing or Matching

III. PROGRAM DESCRIPTION

A. Purpose

B. Goals and Objectives

C. Authority

D. Unallowable Costs

E. Indirect Costs

F. Program History

G. Other Information

IV. APPLICATION CONTENTS AND FORMAT

A. Standard Forms, Assurances, and Certifications

B. Budget

C. Narratives and Other Attachments

D. Other Application Content

V. APPLICATION REVIEW INFORMATION

A. Threshold Review

B. Merit Review

C. Risk Review

D. Selection Process

E. Award Notices

VI. SUBMISSION REQUIREMENTS AND DEADLINES

A. Deadlines

B. Submission Methods

C. Other Submissions

D. False Statements

VII. POST-AWARD REQUIREMENTS AND ADMINISTRATION

A. Administrative, National and Departmental Policy Requirements, and General Terms and Conditions

B. Environmental Requirements

C. Remedies for Noncompliance

D. Reporting

VIII. CONTACT AND SUPPORT

A. Agency Contact

B. Grants.gov

C. SAM.gov

D. Debriefing

E. Applicant Experience Survey

F. Other Online Resources

APPENDIX

Appendix I. HUD Strategic Goals

Appendix II. Definitions

BEFORE YOU BEGIN

If you believe you are a good candidate for this funding opportunity, register in the appropriate systems now and review the application package. If you are already registered, make sure your registration is active and up-to-date.

SAM.gov Registration You must have an active and up-to-date account with SAM.gov, at the time of application and throughout the life of any award.

To register, go to SAM.gov Entity Registration and click Get Started. From the same page, you can also click on the Entity Registration Checklist for the information you will need to register.

It can take several weeks to register in SAM.gov, so please get started now if you are planning to apply. SAM.gov also provides each organization with a unique entity identifier (UEI). A valid UEI is required to apply for funding.

Grants.gov Registration You must have an active Grants.gov registration. This requires a Login.gov registration as well.

See step-by-step instructions at the Grants .gov Quick Start Guide for Applicants. You must apply for funding using Grants.gov, unless HUD has approved your waiver request.

See Section VI.B. Submission Methods.

Find the Application Package Use the Grants Search at Grants.gov and search for opportunity number FR-6900-N-53 . The application package has all the online forms you need to apply. You also need to access the Download Instructions link and review the content before you apply.

If you have other technical difficulties using Grants.gov, access the Support Center on Grants.gov for assistance.

To get updates on changes to this notice of funding opportunity (NOFO), click Subscribe from the View Grant Opportunity page for this NOFO on Grants.gov.

Application Deadline Applications are due by 11:59:59 p.m. Eastern Time on 04/17/2025.

See Section VI.A. of this NOFO.

HUD Listserv

If you are interested in email notices about upcoming funding opportunities, subscribe to HUD’s Funding Opportunities listserv.

Note: To help you find what you need, this NOFO uses internal links. In Adobe Reader, you can go back to where you were by pressing Alt + Left Arrow (Windows) or Command + Left Arrow (Mac) on your keyboard.

https://sam.gov/ https://sam.gov/content/entity-registration https://sam.gov/ https://sam.gov/ https://grants.gov/ https://login.gov https://www.grants.gov/quick-start-guide/applicants https://grants.gov/ https://grants.gov/ https://Grants.gov https://grants.gov/ https://grants.gov/ https://www.hud.gov/subscribe/signup?listname=HUD%20Funding%20Opportunities&list=HUD-FUNDING-OPPORTUNITIES-L https://www.hud.gov/subscribe/signup?listname=HUD%20Funding%20Opportunities&list=HUD-FUNDING-OPPORTUNITIES-L

I. BASIC INFORMATION

This NOFO solicits applications for Project Rental Assistance Program of Section 811 Supportive Housing for Persons with Disabilities FY 2025 . Review the entire NOFO to understand the application requirements in full. HUD will not fund incomplete or ineligible applications.

A. Summary The Section 811 Project Rental Assistance (811 PRA) provides funding to identify, stimulate, and support innovative state-level strategies that will transform and increase affordable housing for extremely low-income persons with disabilities. Eligible applicants include states and state housing agencies working in collaboration with health and human service/Medicaid agencies.

The program’s goal is to increase access to affordable housing units, both new and existing, with access to appropriate services for persons with disabilities.

For further information regarding this NOFO, direct questions to the agency contact identified in section VIII.A.

1. NOFO Summary Federal Agency Name: United States Department of Housing and Urban Development (HUD)

HUD Program Office: Multifamily Housing

Funding Opportunity Title: Project Rental Assistance Program of Section 811 Supportive Housing for Persons with Disabilities FY 2025

Announcement Type: Initial

Funding Opportunity Number: FR-6900-N-53

Assistance Listing Number(s): 14.326

Paperwork Reduction Act Information: 2502-0608

Key Dates:

Due Date for Application Submission: 11:59:59 PM Eastern Time on 04/17/2025

Due Date for Intergovernmental Review: See Section VI.C.1.

Anticipated Award Date: 08/01/2025

2. Funding Details Type of Funding Instrument

CA (Cooperative Agreement) Available Funds Funding of approximately $150,000,000 is available through this NOFO.

Additional funds may become available for award. Use of these funds is subject to statutory constraints. All awards are subject to the selection process contained in this NOFO.

Number of Awards HUD expects to make approximately 15 awards from the funds available under this NOFO.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1#p-200.1(Federal%20award)

Period of Performance Estimated Project Start Date:

11/03/2025 Estimated Project End Date:

11/02/2045 Length of Project Periods:

60-month project period and budget period

Length of Periods Explanation:

The 60-month project period will consist of five 12- month budget periods.

B. Agency Contact(s) See Contact and Support section of this NOFO.

II. ELIGIBILITY

You are invited to apply if your organization is an eligible entity type and meets the funding conditions included in the NOFO. HUD will review applications from eligible applicants using the criteria in Section V of this NOFO.

A. Eligible Applicants

1. Eligible Entity Types:

00 (State governments)

Additional Information on Eligibility

a. Individuals are ineligible applicants.

b. Ineligible to Apply. For-profit entities, and non-profit organizations are not eligible to apply.

c. Troubled Status. If an applicant or co-applicant has any outstanding HUD or Office of Inspector General (OIG) audit findings, or has been designated “Troubled” by HUD or any other governmental entity, HUD will use documents and information available to determine if the applicant is acceptable to HUD. The applicant may still be eligible to apply if HUD determines:

1. The finding or designation is for reasons that will not impact its ability to perform the grant activities.

2. The applicant is making significant strides in addressing the issues that led to the designation or finding.

3. The applicant is in compliance with Fair Housing or other Civil Rights requirements and has addressed outstanding Fair Housing and Civil Rights matters consistent with the provisions set forth in Section V.A.2 (Threshold Eligibility Requirements – Resolution of Civil Rights Matters) of this NOFO.

4. The applicant is otherwise deemed by HUD to be capable of successfully executing all required grant activities.

2. Restrictions

a. Statutory and Regulatory Requirements Affecting Eligibility You must comply with the current General Statutory and Regulatory Requirements Affecting Eligibility for HUD’s Competitive Programs. HUD will review your eligibility before issuing an award. As part of this review, HUD uses SAM.gov and Department of Treasury data.

b. Application Eligibility Your application is considered for funding if it satisfies the application review requirements in Section V. of this NOFO.

c. Funding Restrictions

Section 811 Project Rental Assistance Funds may only be used to reimburse eligible multifamily owners according to the terms executed Rental Assistance Contracts. Any other use of these funds is strictly prohibited.

The maximum eight percent (8%) Administrative Cost funds may only be used to reimburse the grantee for administrative costs associated with the administration of the 811 PRA grant. Any other use of these funds is strictly prohibited.

https://www.hud.gov/program_offices/cfo/gmomgmt/grantsinfo/fundingopps/EligibilityRequirements https://www.hud.gov/program_offices/cfo/gmomgmt/grantsinfo/fundingopps/EligibilityRequirements https://sam.gov https://www.hud.gov/program_offices/cfo/gmomgmt/grantsinfo/fundingopps/EligibilityRequirements

Additional Information on Eligibility

Eligible applicants are housing agencies currently allocating Low Income Housing Tax Credits (LIHTC) under Section 42 of the Internal Revenue Service Code of 1986 (IRC), any applicable participating jurisdiction allocating and overseeing assistance under the HOME Investment Partnerships Act (HOME), and/or a housing agency who operates a similar federal or state program to LIHTC or HOME. To be eligible, you must have an Inter-Agency Partnership Agreement with the state agency responsible for health and human services programs, and the state agency designated to administer or supervise the administration of the state's plan for medical assistance under title XIX of the Social Security Act (42 U.S.C. 1396, et seq.), i.e.

Medicaid. Only one applicant per state will receive funding. In the event there is more than one applicant for a particular state, the State's Health and Human Services/Medicaid agency must decide which applicant it will partner with. If the State Health and Human Services/Medicaid Agency is included in multiple applications, none will be considered.

B. Cost Sharing or Matching This Program does not require cost sharing or matching.

https://www.ecfr.gov/current/title-2/part-200/section-200.1#p-200.1(Cost%20sharing%20or%20matching)

III. PROGRAM DESCRIPTION

A. Purpose The Section 811 Project Rental Assistance (811 PRA) program provides funding to state housing and other appropriate agencies for project-based rental operating assistance for extremely low-income persons with disabilities. As authorized by statute, the 811 PRA program allows HUD to delegate award and oversight of Section 811 operating assistance to States which: 1) can fully fund the initial costs of the Section 811 units without a traditional Section 811 capital advance grant from HUD and, 2) demonstrate a strong collaboration with their Health and Human Service/Medicaid agency to comprehensively address the needs of persons with disabilities.

The 811 PRA program supports collaborations between State Housing and Health and Human Service/Medicaid Agencies that result in increased access to affordable supportive housing units

– new and existing– with access to appropriate services. Many states have already developed partnerships to address this need, and HUD intends to further support these efforts as well as to incentivize additional states to develop similar collaborative efforts. This Section 811 PRA NOFO will allow HUD to identify and support successful and promising state models. This program provides states with the flexibility to award and administer these funds to address the shortage of affordable and integrated housing for persons with disabilities. Housing agencies may either directly administer the rental assistance contracts for eligible properties or contract with other qualified parties to administer them.

B. Goals and Objectives

1. Applicable Goals and Objectives from HUD’s Strategic Plan This NOFO supports HUD’s mission and HUD’s Strategic Plan for Fiscal Years (FY) 2022- 2026. The goals, objectives, and measures applicable to this NOFO are included in Appendix I.

These are in addition to increasing equity and improving customer experience - two overarching HUD priorities. Consider this information in your application and when tracking the success of your project, if selected for award. HUD will monitor compliance during the award performance period.

2. Civil Rights and Equity Goals The Fair Housing Act requires HUD funding to create diverse neighborhoods, increase housing choice, reduce inequality, and eliminate discrimination. Executive Orders 13985 and 14091 direct HUD programs to reduce racial disparities. Your application must respond to these requirements in Section V.B.3 of this NOFO. and if you receive this award, you must track and report your progress towards these goals.

3. Other Program Goals The desired outcomes of the program include:

• Facilitating and sustaining effective and successful partnerships between State Housing or other appropriate housing agencies and State Health and Human Service/Medicaid agencies to provide permanent housing with the availability of supportive services for extremely low-income persons with disabilities;

• Combining affordable housing with access to appropriate services for persons with disabilities;

https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government https://www.federalregister.gov/documents/2023/02/22/2023-03779/further-advancing-racial-equity-and-support-for-underserved-communities-through-the-federal

• Substantially increasing integrated affordable rental housing units for persons with disabilities in mixed-income, well-resourced neighborhoods. These can be existing, new, or rehabilitated multifamily properties.

C. Authority This 811 PRA program is authorized by Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), as amended by the Frank Melville Supportive Housing Investment Act of 2010 (Public Law 111-374). Funding for this NOFO is provided by the Consolidated Appropriations Act, 2022 (Public Law 117-103, approved March 15, 2022, and the Consolidated Appropriation Act, 2023 (Public Law 117-328, approved December 29, 2022).

D. Unallowable Costs Section 811 Project Rental Assistance Funds may only be used to reimburse eligible multifamily owners per the terms of their executed Rental Assistance Contracts. The maximum eight percent (8%) Administrative Cost funds are only to be used to reimburse the grantee for administrative costs associated with the administration of the 811 PRA grant. Any other use of these funds is strictly prohibited.

E. Indirect Costs If you expect to charge indirect costs to the award, submit the Indirect Cost Information (HUD-

426) with your application.

State and local governments. If your department or agency unit has a federally negotiated indirect cost rate, your application must include that rate, the applicable distribution base, and a letter or other documentation from the cognizant agency showing the negotiated rate. If your department or agency unit receives more than $35 million in direct federal funding per year, you may not claim indirect costs until you receive a negotiated rate from your cognizant agency for indirect costs as provided in Appendix VII to 2 CFR part 200.

If your department or agency unit receives no more than $35 million in direct Federal funding per year and your department or agency unit has developed and maintains an indirect cost rate proposal and supporting documentation for audit in accordance with 2 CFR part 200, Appendix VII, you may use the rate and distribution base specified in that indirect cost rate proposal.

Alternatively, if your department or agency unit receives no more than $35 million in direct Federal funding per year and does not have a current negotiated rate (including provisional) rate, you may elect to use the de minimis rate of 15% of MTDC. As described in 2 CFR 200.414 (f), costs must be consistently charged as either indirect or direct costs but may not be double charged or inconsistently charged as both. Once elected, the de minimis rate must be applied consistently for all Federal awards until your department or agency chooses to negotiate for a rate, which you may apply to do at any time. Documentation of the decision to use the de minimis rate must be retained on file for audit.

F. Program History Changes from Previous NOFO

1. The Applicable Goals and Objectives from HUD’s Strategic Plan have been modified to only include program specific goals and objectives.

https://www.ecfr.gov/current/title-2/part-200/section-200.1#p-200.1(Indirect%20(facilities%20%26amp%3B%20administrative%20(F%26amp%3BA))%20costs) https://www.ecfr.gov/current/title-2/part-200/appendix-Appendix%20VII%20to%20Part%20200 https://www.ecfr.gov/current/title-2/part-200/appendix-Appendix%20VII%20to%20Part%20200 https://www.ecfr.gov/current/title-2/part-200/appendix-Appendix%20VII%20to%20Part%20200 http://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRea20080eff2ea53/section-200.403

2. Narrative responses on Advancing Racial Equity, Affirmative Marketing Outreach, Affirmatively Furthering Fair Housing, and Experience Promoting Racial Equity have been added or modified. See Section IV.C.

3. Program Specific Requirements. The Fair Housing and Civil Rights Laws clause has been revised to reflect all relevant nondiscrimination requirements. See Section III.G.12.

4. Further details concerning the award notices have been included in Section III.E. to enhance applicant understanding of the selection letter, Cooperative Agreement negotiations, restrictions on award amounts, and the final award.

5. Removed “Energy and Water Conservation” requirements from Section III.G. Program- Specific Requirements.

G. Other Information Program-Specific Requirements

1. Affirmatively Furthering Fair Housing. Under Section 808(e)(5) of the Fair Housing Act, HUD has a statutory duty to affirmatively further fair housing. HUD requires the same of its funding recipients. Grantees will be required to certify that they will affirmatively further fair housing. Grantees must affirmatively further fair housing by selecting properties for participation that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics; and that offer access to appropriate services, accessible transportation, and commercial facilities to ensure greater integration of persons with disabilities in the broader community. Grantees must also require owners of the properties with whom they enter into RACs to adopt actions and procedures to ensure that Section 811 PRA assisted units are dispersed and integrated within the property.

Grantees must maintain records describing actions taken to affirmatively further fair housing.

2. Affirmative Marketing Outreach. Grantees must describe their methods of outreach, referral and waiting list policies in Rating Factor 3. All methods of outreach and referral and management of the waiting list must be consistent with fair housing and civil rights laws and regulations. Grantees must conduct affirmative outreach to provide information and otherwise attract eligible persons to the program regardless of race, color, national origin, religion, sex (including sexual orientation and gender identity), disability, or familial status, who are not likely to apply to the program without special outreach. Grantees must maintain records of affirmative marketing and outreach efforts.

3. Limitation on Populations Served. Section 811 PRA funds may only be provided for housing units set aside for extremely low-income households, where at least one person is an individual with a long-term disability, and is age 18 or older, but less than 62 years of age at the time of admission. Furthermore, a person with a long-term disability served under this program must be eligible for community-based long-term care services and support under the state’s plan for medical assistance under Title XIX of the Social Security Act. This includes Medicaid 1915(c) waivers, the Medicaid 1915(i) option, the Medicaid Rehabilitation option, certain Medicaid 1115 demonstration waivers and similar successor programs, or other federal or state appropriate or targeted community-based long-term service and support programs that the state certifies are comparable to Medicaid long-term care services. Additionally, applicants may identify specific targeted populations of persons with disabilities (e.g., persons who are institutionalized, at serious risk of institutionalization, homeless, or at risk of homelessness).

4. Limitation on Units Assisted. Eligible multifamily properties may only receive Section 811 PRA funds if the housing to benefit from this assistance does not currently have an existing use restriction or a contractual obligation to serve persons with disabilities, as described below.

a. Units already receiving any form of federal, or state housing operating assistance (such as project-based Section 8) are ineligible to receive Section 811 PRA assistance, unless the Section 811 PRA funds are being used to support other units in the building without such subsidy.

Existing units receiving any form of long-term operating housing subsidy within a six-month period prior to receiving Section 811 PRA funds, such as assistance under project-based Section 8, are ineligible to receive this assistance. Please note that the Low-Income Housing Tax Credit is not considered a long-term operating subsidy.

b. Units with Use Agreements requiring housing for persons 62 or older are not eligible to receive Section 811 PRA funds.

c. No more than 25 percent of the total units in eligible multifamily properties can:

1. be used for supportive housing for persons with disabilities (either under the Section 811 PRA program or any other federal or state program); or

2. have any occupancy preference for persons with disabilities.

d. Units must be dispersed throughout the property and must not be segregated to one area of a building such as on a particular floor or part of a floor in a building or in certain sections within a project. Owners do not need to designate specific units (e.g., units 101, 201, etc.) to be set aside for Section 811 PRA supportive housing units. This allows flexibility in offering the next available unit to a person with a disability if the number of units occupied by persons with disabilities under the set-aside had not been met. NOTE: Applicants may not prohibit persons with disabilities from applying for residency or residing in non-Section 811 PRA units.

5. Inter-Agency Partnership Agreement. Applicants must provide evidence of a formalized structure for collaboration between the Applicant and the state agency charged with administering state health and human services programs and policy and the state Medicaid programs as more fully described above in Section III.D.3. In states where these functions have been separated, both agencies' participation must be evidenced.

6. Rental Assistance Contract (RAC). A contract must be executed between the Grantee administering the Section 811 PRA funds and each owner of a Multifamily Property, in a manner and form as determined by HUD. The initial term of such contracts between the Grantee and the Multifamily Property owners shall have a minimum term of 20 years; however, financial support from HUD following initial funding is subject to available appropriations. Contracts may be renewed if all parties agree; however, funding under the terms of the contract will be subject to the availability of federal appropriations. Grantees may include an addendum to the RAC, subject to written HUD approval, provided that the provisions of the addendum do not conflict with any requirement under the NOFO or the Cooperative Agreement, or any HUD or federal requirements.

1. This contract will provide rental assistance payments to the owner for Tenants, as defined above in Appendix II, residing in units that have been set-aside by the owner as supportive housing for persons with disabilities.

2. The RAC will identify the project, the number of contract units by bedroom size and accessibility, and the contract terms and the conditions for receipt of the project rental assistance payments, including provisions ensuring that tenants are afforded all tenant protections in 42 USC 8013(i)(2), i.e., lease term, termination of tenancy, and voluntary participation in services.

3. The RAC requires the Grantee to certify annually to HUD that Section 811 PRA assisted units are occupied by eligible families. It also requires the Grantee to conduct regular physical inspections of those units to confirm that they meet the uniform national standards established by HUD to ensure that all residents live in safe, habitable dwellings. The Grantee may inspect Section 811 PRA units using a frequency and sample size that conforms with other federal or state housing program requirements.

4. The Grantee must determine an appropriate RAC rent level which may or may not reflect the actual costs of operating the Section 811 PRA assisted units. More information can be found in number 11 below, “Approved Rent and Rent Adjustments.”

7. Administration of the Rental Assistance Contracts (RACs). Grantees will be responsible for administering the Section 811 PRA Program, managing the RACs, and maintaining and adhering to all applicable HUD and other federal requirements. HUD, or its designee, reserves the right to assume and administer the RACs at any time as a result of material non-compliance or nonperformance by the Grantee is determined by HUD.

8. Use Restriction. Housing assisted with Section 811 PRA must have a minimum 30-year use restriction for extremely low-income persons with disabilities. The terms and conditions of the use agreement and its enforcement shall be specified in the Cooperative Agreement and the RAC. If Congress fails to appropriate funds adequate to meet future renewal needs pursuant to the Cooperative Agreement, HUD will not enforce any use agreements on properties that have been funded under such agreement. However, under such a circumstance, and in accordance with policies, requirements and terms of the Cooperative Agreement, as will be established by HUD, HUD will allow grantees to continue to enforce or terminate such use agreements at the Grantees’ discretion.

9. Tenant’s Contribution to Rent. The tenant’s rent contribution shall not exceed 30 percent of the family’s adjusted monthly income, as determined through an income recertification as described in the lease (HUD-92236) and RAC II (HUD-92237).

1. TRACS Grantees will be required to ensure that tenant data is entered into HUD’s Tenant Rental Assistance Certification System (TRACS) in the administration of the Section 811 PRA program.

2. EIV HUD’s Enterprise Income Verification (EIV) System must be used to verify the income for all tenants of Section 811 PRA assisted units.

10. Tenant Lease Term. The initial lease term shall not be less than one year. The lease must be on the most current HUD form (HUD-92236). Grantees may include an addendum to the HUD lease, with prior written HUD approval, provided that the provision(s) of the addendum do not conflict with any requirement under the HUD lease, the NOFO, the Cooperative Agreement, 2 C.F.R. 200, or any HUD or other federal requirements.

11. Approved Rent and Rent Adjustments. Applicants must clearly outline how contract rents will initially be established. Under no circumstances may the initial RAC rent level exceed the applicable Section 8 Small Area Fair Market Rent or Fair Market Rent (FMR) level as determined by HUD, unless such rent level is substantiated by a market study that has been prepared and reviewed in accordance with the requirements of a state housing agency, Chapter 9 of HUD’s Section 8 Renewal Guide (see http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/mfhsec8), or as approved by HUD. Contract rents must be adjusted annually based upon HUD’s Operating Cost Adjustment Factor (OCAF) or another operating cost index proposed by the grantee. If suggesting another operating cost index, please provide justification for the alternative index instead of HUD’s OCAF. (HUD reserves the right to reject the alternate methodology for calculating rents). For the most recent guidance on OCAF, please see https ://www.govinfo.gov/content/pkg/FR-2018-11-23/pdf/2018-25440.pdf. You will be rated based upon how approved rents will be established and adjusted.

12. Barrier Free/Accessibility Requirement for Units, Buildings, and Facilities, Including Public and Common Use Areas. Selected properties must comply with the accessibility and design and construction requirements of Section 504 of the Rehabilitation Act of 1973 and implementing regulations at 24 CFR part 8, the Americans with Disabilities Act and implementing regulations at 28 CFR parts 35 and 36, the Fair Housing Act and implementing regulations at 24 CFR part 100, and the Architectural Barriers Act of 1968 and its implementing regulations at 24 CFR part 40, as applicable. All applicable laws must be read together and followed. HUD applies the Uniform Federal Accessibility Standards (UFAS) through its regulations under part 8. Specifically, a minimum of five percent of units must be accessible for individuals with mobility disabilities and an additional two percent of units must be accessible for individuals with vision or hearing disabilities. See 24 CFR 8.22. Accessible dwelling units are required to be distributed across the range of bedroom sizes and configurations pursuant to 24 CFR 8. 26. However, Section 811 PRA assisted units can consist of a mix of designated accessible mobility units, designated accessible vision/hearing units, and non designated-accessible units.

13. Compliance with Fair Housing and Civil Rights Laws. Grantees and owners of eligible properties must comply with fair housing and civil rights requirements. This includes the nondiscrimination requirements set forth in 24 CFR part 5 and the affirmative fair housing marketing requirements. In addition, grantees will be required to certify through written assurances that they will comply with the requirements of the Fair Housing Act, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, Titles II and III of the Americans with Disabilities Act and the Federal nondiscrimination requirements in 24 CFR Part 5, Subparts A and L. For civil rights protections, Persons with Disabilities shall have the meaning provided in Section 504 of the Rehabilitation Act (24 CFR § 8.3), the Fair Housing Act (24 CFR § 100.201), and the Americans with Disabilities Act (28 CFR § 35.108).

14. Full Disclosure of Available Housing. Grantees and/or owners must provide full disclosure to each applicant of a Section 811 PRA unit of all options available to them in the selection of the property in which to reside, including basic information about available sites (e.g., location, number and size of accessible units, access to transportation and commercial facilities) and an estimate of the period the applicant would likely have to wait to be admitted to units of different http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/mfhsec8), http://www.govinfo.gov/content/pkg/FR-2018-11-23/pdf/2018-25440.pdf sizes and types (e.g., a standard unit, mobility accessible unit, vision/hearing accessible unit, or unit with accessible features) at each site. If a non designated accessible unit is unavailable, an individual with a disability can choose to reside in a standard unit. In such occurrences, owners are still required to provide and pay for reasonable accommodations for qualified individuals with disabilities, which includes structural modifications to existing dwelling units and public use and common use areas, to make effective use of the Grantee’s program.

15. Effective Communication. Pursuant to Section 504 of the Rehabilitation Act of 1973 and, as applicable, the Americans with Disabilities Act, Grantees must ensure that all communications are provided in a manner that is effective for persons with disabilities, to include individuals with hearing, visual, and other communications-related disabilities. This includes employing accessible means of technology to ensure that persons with disabilities can access information, providing information in accessible and alternative formats, and providing appropriate auxiliary aids and services. See 24 CFR 8.6.

16. Limited English Proficiency (LEP). Executive Order (E.O.) 13166 requires that HUD provide meaningful access to its federally assisted programs, services, and activities for individuals who, because of national origin, have LEP. . Grantees must take reasonable steps to ensure meaningful access to their programs, services and activities to LEP individuals. As an aid to recipients, HUD published Final Guidance to Federal Financial Assistance Recipients: Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons (LEP Guidance) in the Federal Register on January 22, 2007 (72 FR 2732).Grantees must conduct a four-factor analysis of language needs for the jurisdiction(s) served, implement a language implementation plan for written and oral language interpretation, train staff members on LEP, and translate vital documents in target language(s).

17. Davis-Bacon Labor Standards. All laborers and mechanics (other than volunteers under the conditions set out in 24 CFR part 70) employed by contractors and subcontractors in the construction (including rehabilitation) of housing with 12 or more units assisted under this NOFO shall be paid wages at rates not less than those prevailing in the locality, as determined by the Secretary of Labor in accordance with the Davis-Bacon Act (40 U.S.C. 3141 et seq.).

Contracts involving employment of laborers and mechanics shall be subject to the provisions of the Contract Work Hours and Safety Standards Act (CWHSSA) (40 U.S.C 3701 et seq.). Owners of Multifamily Properties, contractors and subcontractors must comply with all related rules, regulations, and requirements. Applicants shall be responsible for ensuring inclusion of appropriate contract provisions, monitoring to ensure compliance, and correction of violations in accordance with HUD guidance. Projects where construction is fully complete before an application is submitted to the Grantee to receive assistance under the Section 811 PRA are not subject to Davis-Bacon or CWHSSA requirements, except to the extent that the project is also assisted under another federal program that is subject to such requirements (e.g., the HOME program). In accordance with U.S. Department of Labor regulations at 29 CFR 1.6(g), if a project is approved by an Applicant to receive Section 811 PRA assistance after a contract for construction of the project has been awarded (or after the beginning of construction where there is no contract award) but before completion of construction, the state housing agency shall require that the wage determination effective on the date of award (or beginning of construction) be incorporated into the construction contract retroactively to the date of award or beginning of construction. Grantees may request the HUD Office of Davis-Bacon and Labor Standards to seek approval from the U.S. Department of Labor for the incorporation of a wage determination to be effective on the date of the state housing agency’s approval of Section 811 PRA assistance for the project. Such approval may be granted only where there is no evidence of intent to apply for federal assistance for the project prior to contract award or start of construction.

18. Housing Standard for Section 811 PRA Assisted Units. All Section 811 PRA units must meet local and state housing code, ordinances, and zoning requirements and minimum requirements set forth in the National Standards for the Physical Inspection of Real Estate:

Inspection Standards. For more information, visit REAC’s NSPIRE website.

19. Site Selection and AFFH Obligation. When selecting property sites, Grantees must comply with site and neighborhood standards requirements in Title VI (24 CFR 1) and Section 504 (24 CFR 8) and take into consideration historic and existing patterns of segregation and select sites that meet their obligation to affirmatively further fair housing. Grantees are encouraged to site housing in locations that 1) do not perpetuate patterns of segregation; 2) avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons and persons of color; and 3) remove barriers to affordable housing for persons with disabilities by being located in well-resourced neighborhoods of opportunity.

20. Environmental Requirements and Environmental Assurance. As HUD does not approve program funding for specific activities or projects of the Applicants in the 811 PRA program, it will not perform environmental reviews on such activities or projects. However, to ensure that the tenets of HUD environmental policy and the requirements of applicable statutes and authorities are met, Applicants selected for funding will be required to implement the following analysis and determinations for specific program activities and projects unless:

• The property is existing, is currently HUD-assisted or HUD-insured, and will not engage in activities with physical impacts or changes beyond routine maintenance activities or minimal repairs, or

• The project already has environmental clearance under 24 CFR Part 50 or Part 58 (see note below).

For projects that do not meet one of the above exceptions, the Applicant’s signature on the application shall constitute an assurance that the applicant, if selected, will implement the requirements below, as applicable to existing and new projects. If, at the time that a project applies for PRA assistance, the project is under construction or being rehabilitated and work has progressed beyond a stage of construction where modifications can be undertaken to avoid the adverse environmental impacts addressed by the requirement, the project shall not be subject to the environmental requirements applicable to new construction or rehabilitation but shall be subject to the remaining environmental requirements. Citations to authorities in the following paragraphs are for reference only; to the extent that property standards or restrictions on the use of properties stated in the following paragraphs are more stringent than provisions of the authorities cited, the requirements stated in the following paragraphs shall control:

NOTE: Projects that include funding from other HUD programs (such as HOME) or that have mortgage insurance through FHA can use the environmental clearance under those programs in lieu of PRA NOFO requirements as long as the environmental reviews were completed within 5 years and the project description covers the units proposed to be assisted by the PRA.

https://www.federalregister.gov/documents/2023/06/22/2023-13293/national-standards-for-the-physical-inspection-of-real-estate-inspection-standards?utm_source=federalregister.gov&utm_medium=email&utm_campaign=subscription+mailing+list https://www.federalregister.gov/documents/2023/06/22/2023-13293/national-standards-for-the-physical-inspection-of-real-estate-inspection-standards?utm_source=federalregister.gov&utm_medium=email&utm_campaign=subscription+mailing+list https://www.federalregister.gov/documents/2023/06/22/2023-13293/national-standards-for-the-physical-inspection-of-real-estate-inspection-standards?utm_source=federalregister.gov&utm_medium=email&utm_campaign=subscription+mailing+list https://www.hud.gov/program_offices/public_indian_housing/reac/nspire

a. Site Contamination (24 CFR 50.3(i)). It is HUD policy that all properties for use in HUD assisted housing be free of hazardous materials, contamination, toxic chemicals and gases, and radioactive substances, where a hazard could affect the health and safety of occupants or conflict with the intended utilization of the property (24 CFR 50.3(i)(1)). Therefore, projects applying for assistance shall:

(1) Assess whether the site (i) is listed on an EPA Superfund National Priorities or CERCLA list or equivalent State list; (ii) is located within 3,000 feet of a toxic or solid waste landfill site; (iii) has an underground storage tank other than a residential fuel tank; or (iv) is known or suspected to be contaminated by toxic chemicals or radioactive materials. If none of these conditions exists, a letter of finding certifying these findings must be submitted and maintained in the site’s environmental record. If any of these conditions exist, the grantee must provide an ASTM Phase I Environmental Site Assessment (ESA) in accordance with ASTM E 1527-21 (or the most recent edition);

OR

(2) Provide a Phase I ESA in accordance with ASTM E 1527-21 (or the most recent edition).

NOTE: A Phase I ESA which complies with these standards and was prepared within the Phase I ESA continuing viability timeframe for the acquisition of the property or a real estate transaction (construction, rehabilitation, or refinancing) for the property, will be deemed acceptable.

If a Phase I ESA is conducted and the Phase I ESA identifies Recognized Environmental Conditions (RECs), a Phase II ESA in accordance with ASTM E 1903-19 (or the most recent edition) shall be performed. Any hazardous substances and/or petroleum products that are identified at levels that would require clean-up under State policy shall be cleaned up in accordance with the State’s clean-up policy. Risk-Based Corrective Actions are permitted if allowed under a State’s clean-up policy.

b. Historic Preservation (54 U.S.C. 300101 et seq.)

1. As the various States, Territories, Tribes and municipalities have established historic preservation programs to protect historic properties within their jurisdiction, all work on properties identified as historic by the State, Territory, Tribe, or Municipality, as applicable, must comply with all applicable State, territorial, and tribal historic preservation laws and requirements and, for projects affecting locally designated historic landmarks or districts, local historic preservation ordinance and permit conditions.

2. In addition, all work on properties listed on the National Register of Historic Places, or which the Eligible Applicant knows are eligible for such listing, must comply with “The Secretary of the Interior’s Standards for Rehabilitation.” Complete demolition of such properties would not meet the Standards and is prohibited.

3. On site discoveries. If archaeological resources and/or human remains are discovered on the project site during construction, the recipient must comply with applicable State, tribal, or territory law, and/or local ordinance (e.g., State unmarked burial law).

c. Noise (24 CFR part 51, Subpart B - Noise Abatement and Control). All activities and projects involving new construction shall be developed to ensure an interior noise level of 45 decibels (dB) or less. In this regard and using the day-night average sound level (Ldn), sites not exceeding 65 dB of environmental noise are deemed to be acceptable; sites above 65 dB require sound attenuation in the building shell to 45 dB; and sites above 75 dB shall not have noise sensitive outdoor uses (e.g. picnic areas, tot lots, or patios) situated in areas exposed to such noise levels.

NOTE: Balconies are allowed as per Notice CPD-16-19: Balcony Policy Under 24 CFR 51, Subpart B as it Applies to Parts 50 and 58 Regarding Building Facades Exposed to Noise.

d. Airport Clear Zones (24 CFR part 51, Subpart D - Siting of HUD Assisted Projects in Runway Clear Zones at Civil Airports and Clear Zones and Accident Potential Zones at Military Airfields). No activities or projects shall be permitted within the "airport clear zones" or the “accident potential zones" of military airfields or the runway protection zones of civilian airports.

e. Coastal Zone Management Act (16 U.S.C. 1451 et seq.). Activities and projects shall be consistent with the appropriate state coastal zone management plan. Plans are available from the local coastal zone management agency.

f. Floodplains (Executive Order 11988; Flood Disaster Protection Act (Public Law 93-234);

National Flood Insurance Reform Act (P.L. 108-264)). No new construction activities or projects shall be located in the mapped 100-year floodplain according to FEMA’s best available data, which may be Advisory Base Flood Elevations (ABFEs), Preliminary Flood Insurance Rate Maps (P-FIRMs), or Flood Insurance Rate Maps (FIRM). New construction activities are also prohibited in the mapped 500-year floodplain unless the Applicant determines that there are no alternatives outside of the 500- year floodplain within the metropolitan area, with access to transportation and services. Existing structures and structures in the 500-year floodplains where there are no alternatives may be assisted in either the 100-year or 500-year floodplain, except for sites located in coastal high hazard areas (V Zones) or regulatory flood- ways, but must meet the following requirements:

1. The existing structures must be flood-proofed or must have the lowest habitable floor and utilities elevated above both the 500-year floodplain and the 100-year floodplain according to FEMA’s best available data.

2. The project must have an early warning system and evacuation plan that includes evacuation routing to areas outside of the applicable floodplains.

3. Project structures in the 100-year floodplain according to FEMA’s best available data must obtain flood insurance under the National Flood Insurance Program. No activities or projects located within the 100-year floodplain may be assisted in a community that is not participating in or has been suspended from the National Flood Insurance Program.

g. Wetlands (Executive Order 11990). No new construction shall be performed in wetlands. No rehabilitation of existing properties shall be allowed that expands the footprint such that additional wetlands are destroyed. New construction includes draining, dredging, channelizing, filling, diking, impounding, and related grading activities. The term wetlands is intended to be consistent with the definition used by the U.S. Fish and Wildlife Service in Classification of Wetlands and Deep Water Habitats of the United States (Cowardin, et al., 1977). This definition includes those wetland areas separated from their natural supply of water as a result of activities such as the construction of structural flood protection methods or solid-fill road beds and activities such as mineral extraction and navigation improvements.

h. Siting of Projects Near Hazardous Operations Handling Conventional Fuels or Chemicals of an Explosive or Flammable Nature (24 CFR part 51, Subpart C). Un-shielded or unprotected new construction sites shall be allowed only if they meet the standards of blast over-pressure (0.5psi – buildings and outdoor unprotected facilities) and thermal radiation (450 BTU/ft2 -hr – people, 10,000 BTU/ft2 -hr – buildings) from facilities that store, handle, or process substances of explosive or fire prone nature in stationary, above ground tanks/containers. Containers used to hold liquefied petroleum gas with a volumetric capacity not to exceed 1,000 gallons water capacity are acceptable if they comply with the National Fire Protection Association (NFPA) Code 58 (Liquefied Petroleum Gas Code) (2017) (incorporated by reference, see § 51.200(b)).

i. Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). New construction shall not be permitted that would result in a taking of endangered plant or animal species as listed under the Endangered Species Act of 1973. Taking includes not only direct harm and killing but also modification of habitat. Maps for listed species and geographic habitat by state can be found at:

Environmental Conservation Online System

j. Farmland Protection (7 USC 4201 et seq.). New construction shall not result in the conversion of unique, prime, or otherwise productive agricultural properties to urban uses.

k. Sole Source Aquifers (Section 1424(e) of the Safe Drinking Water Act of 1974 (42 U.S.C.

201, 300 et seq., and 21 U.S.C. 349)). Any new construction activities and projects located in federally designated sole source aquifer areas (SSAs) shall require consultation and review with the U.S. Environmental Protection Agency. Information regarding location and geographic coverage of the 73 federally designated SSAs can be found at: Federally Designated SSA's.

21. Coastal Barrier Resources Act. Grantees must adhere to the Coastal Barrier Resources Act which prohibits activities or projects in Coastal Barrier Resource System (CBRS) units. CBRS units are mapped and available from the Fish and Wildlife Service at:

https://www.fws.gov/program/coastal-barrier-resources-act

22. Flood Insurance. (Flood Disaster Protection Act of 1973 (Public Law 93-234, as amended). Project structures in the 100-year floodplain must obtain flood insurance under the National Flood Insurance Program. No activities or projects located within the 100-year floodplain may be assisted in a community that is not participating in or has been suspended from the National Flood Insurance Program.

23. Program Income. Eligible Applicant must have knowledge and experience to…

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