Section 811 Supportive Housing for Persons with Disabilities (Capital Advance) FR-6700-N-49 (5).pdf

U.S. Department of Housing and Urban Development

Multifamily Housing

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

FR-6700-N-49

02/12/2024

Table of Contents

OVERVIEW

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

B. Authority

II. AWARD INFORMATION

A. Available Funds

B. Number of Awards

C. Minimum/Maximum Award Information

D. Period of Performance

E. Type of Funding Instrument

III. ELIGIBILITY INFORMATION

A. Eligible Applicants

B. Ineligible Applicants

C. Cost Sharing or Matching

D. Threshold Eligibility Requirements

E. Statutory and Regulatory Requirements Affecting Eligibility

F. Program-Specific Requirements

G. Criteria for Beneficiaries

IV. APPLICATION AND SUBMISSION INFORMATION

A. Obtain an Application Package

B. Content and Form of Application Submission

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

D. Application Submission Dates and Times

E. Intergovernmental Review

F. Funding Restrictions

G. Other Submission Requirements

V. APPLICATION REVIEW INFORMATION

A. Review Criteria

B. Review and Selection Process

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices

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

C. Reporting

D. Debriefing

VII. AGENCY CONTACT(S)

VIII. OTHER INFORMATION

APPENDIX

Appendix A: Operating Cost Standards

Table 1: PRAC Rents (Operating Cost Standards) by Metropolitan Statistical Area (MSA), net of Project-paid Utility Expenses

Table 2: Non-MSA PRAC Rents (Operating Cost Standards), including Project-paid Utility Expenses

Appendix B: Physical Design and Livability Template

Program Office:

Multifamily Housing Funding Opportunity Title:

Section 811 Supportive Housing for Persons with Disabilities (Capital Advance) Funding Opportunity Number:

FR-6700-N-49

Assistance Listing Number (formerly CFDA Number):

14.181 Due Date for Applications:

02/12/2024

OVERVIEW

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

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

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

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

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

OMB Approval Number(s):

2502-0462 https://www.ecfr.gov/current/title-24/subtitle-A/part-4/subpart-B https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1 https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1

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 who are 18 years of age or older and less than 62 years of age at entry. The program also provides project rental subsidies in the form of a Project Rental Assistance Contract (“PRAC”) to maintain ongoing affordability over at least 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). Olmstead held that 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 persons with disabilities at serious risk of institutionalization 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.

HUD through this NOFO 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 meet the goal of developing permanent supportive housing. For more information about specific Review Criteria see Section V.A.

Capital Advance funds must be used to finance construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation. Capital Advance funds bear no interest and repayment is not required if housing remains available for occupancy by Very-Low-Income Disabled Persons for at least 40 years. Applicants will include the requested Capital Advance funds in the SF424 and in the Development Budget (Section

III.F.2.). The amount of the Capital Advance funds requested may not exceed the Total Development Cost as published by HUD (see 2022 UNIT TOTAL DEVELOPMENT COST (TDC) LIMITS). The Total Development Cost limit is determined by identifying the appropriate building type (e.g., elevator) and unit size(s) in the development proposal. The total development cost limits may not exceed 25 percent of the units in Integrated Housing.

Project Rental Assistance Contracts (PRACs) are used to cover the difference between the tenants' contributions toward rent and the HUD approved cost to operate the project. HUD encourages applicants to use Capital Advance funds in combination with other non-Section 811 funding but, Capital Advance funds may only be used in connection with units that will be assisted under the PRAC. PRAC units may be developed or placed within a property that also includes non-PRAC residential units (whether restricted as affordable or rented at market rates) and non-residential units (such as first floor commercial space).

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 support 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 support. Demonstrated capacity may refer to previous experience as well as a well-developed plan to provide referrals, services, and support. At a minimum, a well-developed supportive services plan:

• Aligns with the applicant’s local/State government’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 support 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 tenant support:

• 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. In addition, compliance with HUD’s Equal Access https://www.hud.gov/sites/dfiles/PIH/documents/TDCs_2022.pdf

Rule requires that eligibility determinations are made regardless of actual or perceived sexual orientation, gender identity, or marital status.

2. HUD and Program-Specific Goals and Objectives

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

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

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

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

Applicable Goals and Objectives from HUD’s Strategic Plan

1. 2A: Increase the Supply of Housing Enhance HUD's programs that increase the production and supply of housing across the country.

2. 4A: Guide Investment in Climate Resilience Invest in climate resilience, energy efficiency, and renewable energy across HUD programs.

3. 4B: Strengthen Environmental Justice Reduce exposure to health risks, environmental hazards, and substandard housing, especially for low-income households and communities of color.

4. 4C: Integrate Health and Housing Advance policies that recognize housing's role as essential to health.

2A: Increase the Supply of Housing HUD strongly encourages applicants to incorporate design standards that address enhanced accessibility features, visitability, universal design, and electronic communication mechanisms when developing housing and community facilities. Consider access to transportation and walkability to the surrounding community and neighborhood services when selecting sites. The applicant’s supportive services plan and the Certification for Provision of Supportive Services must be designed to ensure program sustainability and continuity for the forty-year term of the Capital Advance.

4A: Guide Investment in Climate Resilience Applicants can receive rating factor points (see Rating Factor 6: Physical Design) for building to a “Net Zero Ready” or “Net Zero” certification. HUD will award up to two (2) points for applications that identify measures that will be incorporated in the project and will advance carbon reduction and reduce vulnerability of the project to climate impacts and threats identified in the U.S. Global Change Research Program National Climate Assessment (NCA) and related analyses.

4B: Strengthen Environmental Justice As part of a review of an application under this NOFO, HUD will perform a preliminary environmental screen to assess major adverse environmental conditions. For all buildings that will be newly constructed (including substantial rehabilitation, where feasible) that are located in https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas the FEMA 500-year floodplain (or 100-year floodplain where FEMA has not mapped the 500-year floodplain), all building mechanicals (HVAC, cogeneration, hot water heating, and other systems) and all residential units be designed to be at a height no less than the greater of the 500-year floodplain or two feet above the 100-year floodplain based on FEMA Flood Insurance Rate Maps (FIRMs).

4C: Integrate Health and Housing HUD will award up to two (2) points for applications proposing activities that advance Environmental Justice (as defined in Section I.A.4 of this NOFO). For the purposes of this grant program, activities that advance Environmental Justice include doing the following for people or communities that have been environmentally underserved or overburdened (e.g. persons with disabilities, very low-income adults and minority communities). Reducing or mitigating exposure to environmental and health hazards (e.g. industrial facilities, EPA superfund sites, legacy pollution, heat islands). Improving protection from and resilience to environmental harms (e.g. fire-resistant materials, floodproofing). Expanding environmental benefits (e.g. clean air and water, public transportation, bike and walking paths, clean energy, green technology, biodiversity). Overcoming prior disinvestment in environmental infrastructure (e.g. drainage systems, green spaces, pollution controls).

Other Goals and Objectives

• Expands the supply of integrated affordable housing for persons with disabilities that results in residents achieving independent living in the community.

• Fund innovative permanent supportive housing models for persons with disabilities that will be at the forefront of design, enhanced accessibility features, visitability, and universal design to ensure program sustainability and continuity for the forty-years.

• Provide supportive housing to persons with disabilities with links to voluntary and flexible person-centered supports and community-based services that are designed to foster and sustain housing stability.

3. Changes from Previous NOFO

• Provides greater specificity around the building design and supportive services components.

• Updated ASTM language in Phase I environmental requirements. Sec. III.14.b.

• Requires use of HUD Environmental Review Online System (HEROS) for environmental submittals.

• Maximum Capital Advance Funds per Award increased from $2.5 million to $5 million

• Updated requirements regarding the Statement of Need.

Adjusts point levels throughout:

• Replaces Leveraging of Resources with Commitment of Sources as rating factor

• Removes Opportunity Zones & Promise Zones as a category for preference points

• Adds Physical Design to rating factors

• Adds Environmental Justice and Climate Change as preference points

• Updates application review procedures

• Change from DUNS Number to the use of UEI through SAM.gov

4. Definitions

a. Standard Definitions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Equity has the meaning given to that term in Section 2(a) of Executive Order 13985 and means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders and other persons of color; members of religious minorities; lesbian, gay, bisexual, https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-24/subtitle-A/part-58/subpart-A/section-58.5 https://www.ecfr.gov/current/title-24/subtitle-A/part-50/subpart-A/section-50.4 https://www.ecfr.gov/current/title-24/subtitle-A/part-50/subpart-A/section-50.4 https://www.archives.gov/files/federal-register/executive-orders/pdf/12898.pdf https://www.hud.gov/program_offices/comm_planning/environment_energy/regulations https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

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

(1)

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

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

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

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

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

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

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

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

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

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

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200

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

Minority-Serving Institutions (MSIs) are

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

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

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

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

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

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

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

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

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

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

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

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

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

Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partB-sec1061.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapV-partA-sec1101a.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059c.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059d.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059e.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059f.pdf https://www.ecfr.gov/current/title-13/chapter-I/part-121?toc=1 program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.

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

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

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

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

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

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

b. Program Definitions.

For purposes of the Section 811 Supportive Housing for Persons with Disabilities Program, the following definitions apply provided that, in the event of any conflict between such definitions below 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.

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 organization, or by self-identification.

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

Capital Advance funds must be used to finance construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation. Capital Advance funds bear no interest and repayment is not required provided the housing remains available for occupancy by Very-Low-Income Disabled Persons for at least 40 years. Applicants will include the requested Capital Advance funds in the SF424 and in the Development Budget (Section III. F. 2.). The amount of the Capital Advance funds requested may not exceed the Total Development Cost as published by HUD (see 2022 UNIT TOTAL DEVELOPMENT COST (TDC) LIMITS). The Total Development Cost limit is determined by identifying the appropriate building type (e.g., elevator) and unit size(s) in the development proposal.

Condominium means a system of ownership of individual units in a residential development combined with joint ownership of commonly used property.

Occupant is a person with disabilities as defined in such Section 811(k) (42 U.S.C. 8013(k).

Consistent with such Section 811(i) (42 U.S.C. 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.

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 persons 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 Medicaid Statewide Transition Plans.

Home and Community-Based Services (HCBS) are those that provide opportunities for beneficiaries to receive services in their own homes or communities rather than in 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 Medicaid Statewide Transition Plans. 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.

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 persons with disabilities from the broader community.

https://www.hud.gov/sites/dfiles/PIH/documents/TDCs_2022.pdf https://www.hud.gov/sites/dfiles/PIH/documents/TDCs_2022.pdf 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/transition-plan/index.html

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.

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.

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 HUD – Role of Housing in Accomplishing the Goals of Olmstead.

Mixed-Finance Owner for the purpose of the mixed-finance development of housing under this part, means a single-asset, for-profit limited partnership of which a private nonprofit organization is the sole general partner. The purpose of the mixed-finance owner must include the promotion of the welfare of persons with disabilities. See 24 CFR Part 891.805.

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

Operating Costs are HUD-approved costs relating to the provision of housing and include administrative expenses, maintenance expenses, security expenses, utilities expenses, taxes and insurance, and allowances for reserves. Operating cost funds shall not be used for debt service payments. See 24 C.F.R. 891.105 for a detailed definition. PRAC rents are established based on the Operating Cost Standards (OCS) listed in Appendix A.

Owner means a single-asset private nonprofit organization established by the Sponsor that will receive capital advance funding 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.

Persons with Disabilities shall have the meaning provided in Section 811(k)(2) of the Cranston- Gonzalez National Affordable Housing Act, (42 U.S.C. 8013(k)(2)) and 24 C.F.R 891.305. The term “person with disabilities” means a household composed of one or more persons who is 18 years of age or older and less than 62 years of age, and who has a disability. A person shall be considered to have a disability if such person is determined, pursuant to regulations issued by the Secretary to have a physical, mental, or emotional impairment which (A) is expected to be of long-continued and indefinite duration, (B) substantially impedes his or her ability to live independently, and (C) is of such a nature that such ability could be improved by more suitable housing conditions. A person shall also be considered to have a developmental disability if the person has a severe, chronic disability of an individual that (i) is attributable to a mental or physical impairment or combination of mental and physical impairments; (ii) is manifested https://archives.hud.gov/news/2013/OlmsteadGuidnc060413.pdf https://www.govinfo.gov/content/pkg/USCODE-2021-title42/pdf/USCODE-2021-title42-chap89-sec8013.pdf https://www.ecfr.gov/current/title-24/subtitle-B/chapter-VIII/part-891/subpart-C/section-891.305and%2024%20C.F.R%20891.305).

before the individual attains age 22; (iii) is likely to continue indefinitely; (iv) results in substantial functional limitations in 3 or more of the following areas of major life activity: (I) Self-care. (II) Receptive and expressive language. (III) Learning. (IV) Mobility. (V) Self-direction. (VI) Capacity for independent living. (VII) Economic self-sufficiency; and (v) reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated (as defined in section 15002 of this title).

(See Section 811(k)(2) of the Cranston-Gonzalez National Affordable Housing Act).

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 shall not be used for supportive services costs.

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.

Sponsor means any eligible applicant that has been made an award of funds under this NOFO.

Sponsor refers to either a Sponsor or a Co-Sponsor. A Sponsor must be a nonprofit entity. The Sponsor must be approved by the Secretary of HUD as to the administrative and financial capacity to receive an award under this NOFO. 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 NOFO. The regulatory definition of Sponsor can be found at 24 C.F.R.

891.305.

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.

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 https://www.govinfo.gov/content/pkg/BILLS-111s1481enr/pdf/BILLS-111s1481enr.pdf 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.

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.

Very-Low-Income means household income that does not exceed 50 percent of the median family income for the area. See HUD’s Income Limits website HUD Income Limits. Click on the button for the most recent year (at the time of work in a unit being done) and, for that year, click the Data tab, and then click the link for MS EXCEL in “Data for Section 8 Income Limits in MS EXCEL”. The spreadsheet has a national list by state, metro area, and county or town name, and shows, in columns labeled I50_1 through I50_8, incomes that are 50 percent of the median family income for the area for families of sizes 1 through 8. 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).

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. This authority provides for Capital Advance funds, project rental assistance contracts, amendments to contracts for project rental assistance, and the renewal of expiring contracts for such assistance, for supportive housing for persons with disabilities. The funding for this NOFO is provided by the Consolidated Appropriations Act, 2022 (Public Law 117-103, enacted March 15, 2022) and the Consolidated Appropriations Act, 2021 (Public Law 116-260, enacted December 27, 2020).

II. AWARD INFORMATION

A. Available Funds Funding of approximately $106,000,000 is available through this NOFO.

Additional funds may become available for award under this NOFO consistent with Section VI.A.2.e., Adjustments to Funding. Use of these funds is subject to statutory constraints. All awards are subject to the funding restrictions contained in this NOFO.

B. Number of Awards HUD expects to make approximately 21 awards from the funds available under this NOFO.

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

C. Minimum/Maximum Award Information Maximum Capital…