Section 4 Capacity Building for Community Development and Affordable Housing

The Section 4 program builds the capacity of Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) to serve their communities and low-income families with community development and affordable housing activi

Through funding of national intermediaries, the Section 4 Capacity Building program (Section 4) enhances the capacity and ability of community development corporations (CDCs) and community housing development organizations (CHDOs) to carry out affordable housing and community development activities that benefit low-income families and persons. The Section 4 program is authorized by Section 4 of the HUD Demonstration Act of 1993 (Public Law 103-120, 107 Statute 1148, 42 U.S.C. 9816 note), as amended. These organizations are: 1. Enterprise Community Partners, Inc. (formerly The Enterprise Foundation), 11000 Broken Land Parkway, Suite 700, Columbia, MD 21044; 2. the Local Initiatives Support Corporation (LISC), 28 Liberty, 33rd Floor, New York, NY 11201; and 3. Habitat for Humanity International, 322 Lamar, Americus, GA 31709. Affiliates and local offices of these organizations and their community partners are not eligible to compete either directly or independently for capacity building grants under this notice, but rather may seek funding from the above organizations.

By law, there are only three eligible applicants for the Section 4 program. The competition is limited to the organizations identified in Section 4 of the HUD Demonstration Act of 1993 (Public Law 103-120, 107 Stat. 1148, 42 U.S.C. 9816 note), as amended. These organizations are: 1. Enterprise Community Partners, Inc. (formerly The Enterprise Foundation); 2. the Local Initiatives Support Corporation (LISC), and 3. Habitat for Humanity International. Specifically, the only applicants eligible for this competition are the three organizations located at the following addresses: 1. Enterprise Community Partners, Inc., 11000 Broken Land Parkway, Suite 700, Columbia, MD 21044. 2. Local Initiatives Support Corporation, 28 Liberty, 33rd Floor, New York, NY 11201. 3. Habitat for Humanity International, 322 Lamar, Americus, GA 31709. Affiliates and local offices of these organizations and their community partners are not eligible to compete either directly or independently for capacity building grants under this notice, but rather may seek funding from the above organizations.

Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) are the only eligible beneficiaries.

Eligible Activities and Priorities. Funds may be used to provide the following services: 1. Training, education, support, and advice to enhance the technical and administrative capabilities of CDCs and CHDOs. This includes building the capacity of CDCs and CHDOs to: o Participate in consolidated planning, fair housing planning and Continuum of Care homeless assistance efforts that help ensure community-wide participation in assessing area needs; o Consult broadly within the community; o Cooperatively plan for the use of available resources in a comprehensive and holistic manner; and o Assist in evaluating performance under these community efforts and in linking plans with neighboring communities in order to foster regional planning. 2. Loans, pass-through grants, development assistance, predevelopment assistance, or other financial assistance to CDCs and CHDOs to carry out community development and affordable housing activities that benefit low-income families and persons, and community and economic development activities that create jobs for low-income persons. 3. Such other activities as may be determined by the grantees in consultation with the Secretary or his or her designee. Currently only Section 4 related Administration activities are eligible under this category.

Prohibition on Fees or Profit. No fee or profit may be paid to any recipient or subrecipient of an award under this Section 4 NOFO. Contractor and Subrecipient Rate Determination: Prior to beginning work on an activity, the grantee must have a contract with any hired contractors and subrecipients. In addition to the requirements laid out in 2 CFR 200.331, the contract with any contractor or subrecipient must clearly state the work expected to be performed, the expected performance outputs (deliverables) from that work, the period of performance for the contract, the expected number of hours of work, and the hourly rate of pay to be applied. The contract must establish if the hourly rate of pay is a "fully-loaded" or "unloaded" rate. "Fully-loaded" rates are rates that include the wage rate, fringe benefits, and overhead for the contractor or subrecipient as clearly stated in the contract, while "unloaded" rates only include the hourly wage rate. High Rate Contractors and Consultants. Section 4 program funds may not be used, directly or indirectly, to pay or provide reimbursement for payment of the salary of a contractor or subrecipient at more than the "unloaded" hourly equivalent of the rate paid for the OPM General Schedule Grade 15, Step 10 (based on the locality of the consultant, contractor, or subrecipient's Page 30 of 55 primary work address) without prior written approval from HUD. For more information on OPM's General Schedule, please see the Office of Personnel Management (OPM) website at https://www.opm.gov/policy-data-oversight/pay-leave/salarieswages/salarytables/pdf/2020/DCB.pdf. Additionally, Section 4 program funds may not be used, directly or indirectly, to pay or provide reimbursement for payment of the salary of a contractor or subrecipient at more than the "loaded" rate of $150 an hour without prior written approval from HUD. If the grantee believes there is sufficient need or cause for hiring a contractor or subrecipient at a high rate, it may submit a request to HUD and a written justification for review and consideration, and it must receive HUD's approval prior to commencing services with the high rate contractor, consultant, or subrecipient. In all cases, the grantee must receive approval from HUD before commencing any Section 4 program work with a high rate contractor or subrecipient. Indirect Cost Rate Normal indirect cost rules under 2 CFR part 200, subpart E apply. If you intend to charge indirect costs to your award, your application must clearly state the rate and distribution base you intend to use. If you have a Federally negotiated indirect cost rate, your application must also include a letter or other documentation from the cognizant agency showing the approved rate. Successful applicants whose rate changes after the application deadline must submit the new rate and documentation to assure the award agreement incorporates the applicable rate.

The performance period for the capacity building grants is four years (48 months). Funds must be expended within four years (48 months) of the grant start date.

Preapplication coordination is not applicable. Environmental impact information is not required at the time of application to this program. This program is excluded from coverage under E.O. 12372.

Applications are reviewed according to the Threshold Requirements and Rating Factor requirements set forth in the Section 4 Capacity Building for Community Development and Affordable Housing Program NOFO. Applicants are assessed for the organization's capacity, understanding of the capacity building needs of eligible beneficiaries, the soundness of their approach in their proposed Capacity Building program, their commitment to leveraging other funding, and their performance evaluation and past performance on previous Section 4 grant awards.

Based upon the requirements published in the General Section and Program Section of the NOFO, respondents are notified of acceptance or rejection. Upon selection, the applicant and HUD shall negotiate and execute a grant agreement.

Rating:HUD will rate all eligible applications that meet the Threshold Requirements against the criteria in Rating Factors 1 through 5 and assign a rating score. The maximum total rating score for the five Rating Factors is 100 points. An applicant can receive Preference Points if it scores a minimum of 75 points for the five Rating Factors. An applicant can receive a possible total of 104 points which includes Rating Factors 1 through 5 and possible Preference Points. Minimum Rating Score: Applicants must receive a total rating score of 75 points or more for Rating Factors 1 through 5 (without the addition of the Preference Points) to be eligible for funding. HUD will reject any application that does not meet the minimum rating score requirements. Ranked Order: After adding any Preference Points, HUD will place eligible applications that meet the minimum rating score requirements in ranked order. Applicants scoring 75 or more points will be considered for funding in ranked order up to the amount requested, or in a lesser amount if sufficient funds are not available. Meeting the minimum score of 75 points does not guarantee a funding award will be made. HUD reserves the right to adjust funding to meet urgent policy priorities. Grant Award Adjustments: Successful applicants selected to receive a grant award that is less than they applied for are required to participate in the negotiation process to create an updated program budget and plan reflecting actual award.

Grant Extension: Grantees can request extensions to complete work on an existing Action Plan activity for a period not to exceed one year after the original grant expiration date. When submitting a no-cost extension request, grantees must submit a written request, on the grantee's letter head, signed by the authorized official. Additional documentation and/or explanation may be required. HUD shall review amendment requests and make the determination of approval or denial of the requests. Extensions of the grant agreement termination date will only be considered on a case-bycase basis and must be submitted no less than thirty (30) days prior to the grant agreement expiration date.