FY 2002 NOFA - Frequently Asked Questions (FAQs)

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In order to receive the points under Section XV(B)(3)(a) and Section XV(B)(3)(b), an applicant must certify in their application that the targeted severely distressed public housing project is completely vacant and cleared, respectively. This would mean the targeted public housing project only and would not include off-site properties targeted for replacement housing.

In order to receive the points under Section IX(G)(4), an applicant must be able to show that the physical redevelopment activities are underway or projected to be completed before October 2007 and that they will enhance the HOPE VI community. However, in order to be counted as collateral investments, these activities must occur whether or not the public housing project is revitalized. Applicants should also note that the resources they cite as collateral investment cannot duplicate any other type of resource. In the above example, if the work meets the definition of collateral investment, and has already been completed, it may be counted as collateral investment.

Applicants will not be penalized for not changing the dates on the 180-day option(s) if they have already been secured. The application deadline was extended to facilitate submission of applications around the Thanksgiving holiday.

HUD will consider other types of tax credits, such as that provided through a State-sponsored program (separate from the federal Low-Income Housing Tax Credit program), according to the criteria under Section IX(C).

Yes, Section XIV(B)(4) does not apply in this scenario. The relocation described is outside the requirements of this NOFA and not something that would be considered in HUD's review of an application.

LOCCS, as of March 31, 2002, will be used to measure existing Grantees' obligation rates of HOPE VI Revitalization funds, as it reflects obligation information as "Cumulative Obligations." LOCCS also displays funding information including, "LOCCS Authorized," "LOCCS Disbursed," and "Cumulative Expended." The percent obligated would be based on the entire grant amount.

No, project-based Section 8 assistance may not be considered as replacement units for the purposes of this NOFA. Section VI(D)(7) requires that HOPE VI funds may not be used to develop market rate of affordable housing units that do not qualify as public housing or homeownership replacement units.

No, project-based Section 8 may not be used as such because project-based Section 8 assistance may not be considered as replacement units under this NOFA.

No, the developer must be a partner in the development of public housing and/or replacement homeownership units in order to meet the requirements.

Vouchers obtained as part of HOPE VI cannot be attached as project-based Section 8 assistance. Construction of public housing and/or replacement homeownership units must occur within 18 months from the date of HUD's approval of the Supplemental Submissions as requested by HUD after the Grant Agreement is executed (Section XIX(B)(4)).

No, economic development activities may not be counted as a construction start. Construction must be construction of public housing units or replacement homeownership units, which includes infrastructure related to those units.

Yes, the construction of replacement public housing or eligible homeownership on a PHA-controlled site, other than the former public housing site, will meet the requirement.

In order to meet the threshold of severe distress, an applicant must be able to certify that the targeted public housing project or building meets all the requirements under Section VIII(A), as relevant. Severely distressed public senior/elderly/disabled housing contiguous to units with families with children that suffered from high rates of vandalism and criminal activity are not excluded under Section VIII(A). In order to meet the threshold, the applicant must be able to demonstrate criteria described at Section VIII(A)(1)(a)(iii)(A) or (B).

Floating units are permissible under this NOFA.

Yes, if the investment meets the definition of collateral investment activities found under Section IX(G)(4). Applicants should note that collateral investments cannot duplicate any other type of resource for the purposes of this NOFA and that the activities would have occurred regardless of anticipation of HOPE VI funds.

The NOFA includes different criteria related to fair housing issues and mixed income communities and off-site housing. In order to be considered for funding, applicants must meet the threshold requirements under Section XIII(C)(1) and (2), regarding compliance with fair housing and civil rights laws and desegregation orders. Additionally the threshold requirement under Section XIV(B)(4) states that an applicant must have site control of any properties planned for off-site housing development. Evidence of this site control is contingent upon, among other items, the site and neighborhood standards in Section XIII(C)(3) of the NOFA. In order to get the one point under Section XIV(B)(5), an applicant must meet all environmental, and site and neighborhood standards. Section XIII(C)(3)(f) states that HOPE VI replacement housing not covered in Section XIII(C)(3)(e) may not be located in an area of minority concentration without the prior approval of HUD. If an applicant plans to pursue locating off-site replacement housing in an area of minority concentration, they must communicate with their HUD field office concerning the necessary approval and the required site and neighborhood standards. Please also see FAQ #24 and FAQ #35 at the HOPE VI website for related information.

Extraordinary site costs are not a criteria for the one point, under Section XIV(B)(5).

If a PHA (and not its affiliate) is going to be the developer for all components of the revitalization plan, then a master development agreement is not needed and the one point will be awarded automatically.

The instructions for C.3 in the Application Kit should read as follows: "MTW Only. Only if you are a Moving to Work PHA, review Rating Factor VIII(B)(3) on Page 33 of the NOFA and provide the amount of your unobligated FY 1999-2001 Capital Grant funds as of the end of the most recent quarter." The most recent quarter would be September 30, 2002. MTW and non-MTW PHAs will be rated on obligations according to the same timeframes.

Section XIX(B)(5) requires that "Grantees must submit the development proposal for the first phase of construction within 12 months of grant award." On the Attachment 15, the language used is "Mixed Finance Proposal for First Phase." If the applicant's first phase is not a mixed finance development, applicants should still enter the scheduled number of days in the box provided, and indicate on the form the type of proposal that will be submitted (i.e., development proposal, homeownership proposal).

The NOFA does not require a particular procedure for punching holes in applications. PHAs may punch holes as they determine to be most appropriate. Otherwise, applications must be prepared in accordance with Section XVI.

Attachment 20 focuses on documentation of CSS resources to support the amount of HOPE VI funds requested for CSS, in accordance with Section IX(G)(2), whereas Attachment 24 looks for documentation of the strong relationships and commitments made by CSS providers to your plan, in accordance with Section XI(D)(3). There is the potential that a letter used for Attachment 20 could also be used for Attachment 24, and vice versa. However, in order to earn points under those rating factors, an applicant must be able to respond to the stated criteria and applicants must determine the placement of documentation accordingly.

As stated in Section XIV(B)(4), an applicant must provide evidence in their application that they (not their developer) have site control of any properties proposed for the development of off-site housing. Evidence may include the option to purchase the property (which must extend for at least 180 days after the application due date), contingent solely on the receipt of the HOPE VI grant, satisfactory compliance with the environmental review requirements in accordance with Section XX of the NOFA, and the site and neighborhood standards in Section XIII(C)(3).

In the situation described above, site control (in the form of an option, sales agreement, land swap, etc) can only be contingent on receipt of the HOPE VI grant, environmental review requirements, and site and neighborhood standards. A letter from the Mayor, letters of support from members of the appropriate municipal entities, and/or a resolution evidencing the PHA's intent to exercise its power of eminent domain are not sufficient.

Under Section XII(E)(1), an applicant can receive 5 points for certifying that residents of the targeted site have already been relocated. For those applicants whose relocation was performed already (the project is vacant), the threshold requirement under Section XII(D) will be deemed to be satisfied because a HOPE VI relocation plan was not required at the at the time of relocation. Therefore, such applicants do not need to provide the certification requested in Attachment 25. However, they must certify under Attachment 26 that relocation has been completed in order to receive the points available under Section XII(E)(1) and Section XV(B)(3)(a).

76. Section IX(G)(3) states that "In many cases, PHAs, cities or other entities may have carried out revitalization activities (including demolition) in previous years in anticipation of your receipt of a HOPE VI Revitalization grant. These expenditures, if documented, may be counted as leveraged anticipatory resources. They cannot duplicate any other type of resource, and cannot be counted towards match."

If a PHA has received funding for our activity that was begun in anticipation of a HOPE VI Revitalization grant, but has just started doing design work and some demolition, may they count the entire expected project cost (sources can be documented) as Anticipatory Leveraging or only the amount of expenditures that have been incurred by the time of grant application.

Section IX(G)(3) states that "…expenditures, if documented, may be counted as leveraged anticipatory resources." In order to be considered for points under Section IX(G)(3), an applicant must be able to document in their application any expenditures they wish to claim as anticipatory resources, as of the application deadline.

77. CLARIFICATION TO FAQ #50: The following information is offered to clarify FAQ#50, which should appear as stated below.

"50. Section XIV(A)(1)-(4) states that an applicant will receive points based on the percentage of "public housing units" in the unit mix of their on-site housing. Does the term "public housing units" include all ACC units, i.e., public housing rental and public housing funded homeownership?

The term "public housing units" is limited to units under the ACC, i.e., public housing rental units. Homeownership units would not be counted.Additionally, units sold under Section 32/5(h) are not considered as rental units for the purposes of Section XIV of this NOFA.

78. Under Section IX(D)(10)(b)(vii), does the commitment letter from your State or local Housing Finance Agency have to contain a plan and/or schedule for obtaining future tax credits for any later phases?

In order to comply with the requirements under Section IX(D)(10), the reservation letter from your State or local Housing Finance Agency must contain a plan and/or schedule for obtaining future tax credits for any later phases that have not yet been obtained.

79. In relation to this same Section XIV(B)(4), is satisfactory compliance with site and neighborhood standards required in order to meet the threshold?

Under Section XIV(B)(4), satisfactory compliance with site and neighborhood standards (as with the environmental review) is not necessary at the time of application in order to meet the threshold. Rather, site control (the option and other such permitted documents) must be evidenced at the time of application in order to meet the threshold. However, in order to receive the point (and, as with environmental review, FAQ#35) under Section XIV(B)(5)(b), the applicant must be able to certify at the time of application (under Attachment 29) that the site meets site and neighborhood standards, in addition to environmental review requirements.

80. Under Section IX, can community supportive services commitments be utilized as part of the overall match requirements and not just for community supportive service match?

No, they must be used for CSS match.

81. If a project is primarily funded from HOPE VI dollars with mostly in-kind contributions for the match, does this impact the allocation of points under Section IX(G)(1) development leveraging?

Please consult FAQ #29 on the HOPE VI website which clarifies that: "Match requirements as described in Section IX (A) is limited to cash. Leverage and other resources described in Section IX (B) - (F) is not limited to cash and may include in-kind services and other types of contributions such as tax credits." In order to receive those points, they must respond in accordance to that rating factor.

82. What is HUD expecting to see in the application to indicate site control for single-family homes (e.g., purchased around the City to be used for rental under the ACC)? The PHA would be the developer and would buy homes that are listed on the Multiple Listing Service in non-minority, non-poverty locations. The PHA does not build nor rehabilitate these homes. They are acquired on the open market. These are not homeownership units and will be operated under ACC.

Applicants proposing a scenario as above would need to have site control of the properties in accordance with the criteria explained under Section XIV(B)(4). Additionally, please see FAQ #74 on the HOPE VI website for additional information on types of evidence acceptable under Section XIV(B)(4).

83. What items constitute the "performance requirements" under Section VII(A)(3)(b)?

The performance requirements are those items in the applicable HOPE VI Revitalization Grant Agreement that have due dates associated with them (i.e., construction start, construction finish, development agreement executed, etc.) Grantees will be considered in compliance if they have met extended deadlines as approved by HUD.

84. An applicant has site control over more land than needed to construct the off-site replacement units it wants. Can they demonstrate in the application adequate site control for more units than the plan calls for and continue to discuss their plans with the affected neighborhood about where the units will be located?

An applicant may evidence site control for more units than their proposed plan calls for at the time of application. They must evidence site control in accordance with Section XIV(B)(4). Additionally, please see FAQ #74 on the HOPE VI website for additional information on types of evidence acceptable under Section XIV(B)(4).

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