FY 2004 Revitalization NOFA - Frequently Asked Questions (FAQs)

Questions and Answers

1. Is an elderly (senior citizen) high-rise building eligible for HOPE VI funding?

Yes. An elderly high-rise can be an eligible project if it meets the criteria of severe distress under Section I(C)(4); there is no preclusion in the NOFA against funding the revitalization of such buildings. However, the building must meet the criteria for severe distress listed in I(C)(4).

2. The NOFA identifies two anticipated grant award dates, i.e. May 2, 2005 and April 1, 2005. Which is the correct anticipated grant award date that we should use in developing our program schedule?

Applicants should use an assumed Grant Award date of May 2, 2005. Additionally, you should assume the Grant Agreement Execution date to be August 1, 2005; the date for HUD’s written request for Supplemental Submissions to be September 1, 2005; and the date of HUD’s approval of Supplemental Submissions to be January 2, 2006. These dates are for application evaluation purposes only. Applicants should clearly indicate on their program schedule the assumed dates they are using. It is essential that applicants ensure their program schedule addresses ALL of the revitalization grant implementation timeframe requirements identified under Section VI(B)(2) (Timeliness of Development Activities) in order to meet the threshold requirement under Section III(C)(1)(i). Further, in accordance with Section VI(B)(2)(e), the program schedule MUST indicate the date on which the development proposal for EACH phase of the revitalization plan will be submitted to HUD.

3. On page 64139, Section III(C)(1)(e) of the NOFA, states that HOPE VI public housing funds cannot be used for economic development space (i.e. community building, etc.). We are confused by the example being a community building because Section I(D)(4) (Eligible Revitalization Activities, Rehabilitation and Physical Improvement) states that funds can be used for “rehabilitation and physical improvement of …community facilities primarily intended to facilitate the delivery of community and supportive services for residents….” Please clarify.

HOPE VI funds can be used for the development of community buildings if such facilities are to be used by residents of the revitalized community and surrounding neighborhood. That is, the community building must directly relate to the revitalization of the public housing development and the residents should be the primary beneficiaries.

4. When calculating Capital Fund obligation rates, should housing Replacement Housing Factor funds be included?

Yes. Replacement Housing Factor funds are included in the calculation of Capital Fund obligation rates, pursuant to 24 CFR 905.10(i), as they are a part of the Capital Fund Program formula allocation.

5. Is there a minimum score for the application this year?

No, there is no minimum score. Please see section V(B) for other information on the review and selection process.

6. Please confirm that MTW sites’ regulatory relief applies under HOPE VI with the exception that the HOPE VI funds are not fungible.

For purposes of awarding FY 2004 HOPE VI funding, the HOPE VI NOFA is the controlling instrument, not the MTW Agreement. Thus applicants must respond to the criteria as it is stated in the NOFA in order to be considered for HOPE VI funding. Applications submitted by MTW participants will not be given special consideration except in relation to those criteria in the NOFA where exceptions have been identified. The application will be reviewed in strict accordance with the criteria of the NOFA.

7. If the proposed site already has Section 18 demo approval, which included a relocation plan, will that meet the relocation plan requirements?

Yes, if the applicant is able to provide proper documentation to show it meets the threshold requirement of Section III(C)(2)(b)(2), which states:

"(a) You must certify that the HOPE VI Relocation Plan has been completed and that it conforms to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) requirements as described in Section V.A.6. of this NOFA.
(b) If relocation was completed (i.e., the targeted public housing site is vacant) as of the application due date, rather than certifying that the HOPE VI Relocation Plan has been completed, you must certify that the relocation was completed.”

Thus, PHA’s who have already completed relocation must meet the threshold under Section III(C)(2)(b)(2)(b) in order to be considered. The documentation requirements for the relocation threshold are stated at Section IV(B)(5)(c). Applicants must respond appropriately to the rating factor criteria Section V(A)(6) in order to earn points.

8. In regards to the requirement that units that were funded by previously-funded HOPE VI Revitalization grant or other HUD funds, does “other HUD funds” include Replacement Housing Factor (RHF) funds and Capital Funds including CIAP and CGP?

The intent of the threshold at Section III(C)(1)(h) is to prevent the double funding of units that have already received funds for revitalization-type purposes. This would mean HOPE VI Revitalization funds or "other HUD funds." For purposes of this NOFA, “other HUD funds” would include Major Reconstruction of Obsolete Projects (MROP) funding and other funds under the Development Program, as those funds were intended to achieve significant revitalization of units, as opposed to regular upkeep. The threshold at Section III(C)(1)(h) does not refer to modernization funding, Capital Fund Program funding (i.e., CIAP, CGP, etc.), or Replacement Housing Factor funds.

9. Regarding the public meetings, apart from the information in Section (III)(C)(4)(j) (Resident and Community Involvement, on p. 64143), is there any more information about what is required for public meetings (for example, in terms of where or how they must be advertised)? If so, where is this information located?

Section (III)(C)(4)(j) is the correct place to look for requirements in order to meet the threshold requirement under Section III(C)(2)(a)(2). The NOFA does not prescribe the way PHAs must advertise. In order to earn points related to resident and community involvement, applicants must respond appropriately to Section V(A)(4). Applicants must also follow the documentation requirements provided at Section IV(B)(5)(d).

10. Please clarify what is required to meet the threshold requirement under Section III(C)(1)(g), “Performance of Existing HOPE VI Grantees.”

Determinations on compliance with this threshold requirement will be made by HUD using documents and information available to it as of the application due date (February 1, 2005). In order to make this determination, HUD will assess the status of the locked checkpoints for the applicant’s existing HOPE VI Revitalization grant(s), specifically considering whether there are any missed locked checkpoints. If the applicant has missed locked checkpoints as of February 1, 2005, for any of its grants, HUD will assess whether the delinquency is beyond the control of the grantee and whether the grantee is making substantial progress toward eliminating the delinquency.

11. Under Section V(A)(8)(a)(2) (pg. 64161), is the Unit Mix and Need for Affordable Housing an either/or proposition, i.e. a housing authority receives either one point if its HCV utilization or occupancy rate is less than 95%, or a housing authority receives between one and three points (depending on the number of project-based affordable housing units in its plan) if its HCV utilization or occupancy rate is greater than 95%?

Yes, your interpretation of the criteria is correct. Under Section V(A)(8)(a)(2)(b) applicants can earn one point for showing that there is not a need for additional affordable housing as demonstrated by a Housing Choice Voucher utilization rate or public housing occupancy rate that is less than 95 percent. Or, under Section V(A)(8)(a)(2)(c), applicants can earn up to 3 points for demonstrating there is a need for additional affordable housing (rates above 95 percent) and for proposing an unit mix as described in that section.

12. Must applicants request the maximum grant amount of $20 million, or may they request a lesser amount and still be eligible?

Applicants may request an amount less than $20 million. Applicant grant requests must be made in accordance with the funding restrictions identified under Section IV(E) of the NOFA.

13. Are there instructions on how to assemble the HOPE VI application?

Yes, instructions for assembling the application and for completing the data forms (Attachments 1-7) may be found at the FY 2004 HOPE VI Revitalization NOFA page.

14.  Do I have to use the HOPE VI Revitalization Checklist, HUD form 52800? 

Form HUD-52800, “HOPE VI Revitalization Application Checklist,” is not a required part of the application.  It is replaced by the HOPE VI Revitalization Application Table of Contents, which can be found on the HOPE VI website in MS Word format.   

15.  Does the NOFA require that a PHA be of a certain size in order to apply for funding? 

No.  The NOFA does not include any size-specific priority groups or other criteria.  In order to be an eligible applicant, you must be a Public Housing Authority (PHA) that has severely distressed housing in their inventory and are otherwise in conformance with the threshold requirements provided in Section III(C) of this NOFA.  If you are a PHA that only administers Housing Choice Voucher (HCV) programs (e.g., Section 8), a tribal PHA or tribally-designated housing entity, a private citizen, a non-profit, a private business, you are not eligible to apply.

16.  Can I count HOPE VI funds toward the match requirement listed under Section III(B) (pg. 64138)?

No.  You may not include amounts from HOPE VI program funding, including HOPE VI Revitalization, HOPE VI Demolition, and HOPE VI Neighborhood Networks.  However, you may include funding from other public housing sources, e.g., Capital Funds, other federal sources, any state or local government source and any private contributions.  You may also include the value of donated material or buildings, the value of any lease on a building, the value of the time and services contributed by volunteers, and the value of any other in-kind services or administrative costs provided.  

17.  Our PHA submitted an FY 2003 HOPE VI Revitalization application but was not awarded funding.  We plan to submit an FY 2004 HOPE VI Revitalization application.  Can we use the same certification of severe distress (per the threshold on pg. 64140) that we used in the prior year’s application, or must we have the severely distressed status of the subject public housing project recertified?

Assuming that the severely distressed status of the site has not changed (e.g., the site has not undergone improvements eliminating the severely distressed conditions), you may use the certification from the prior year’s application. 

18.  Section III(C)(1)(n)(2) (pg. 64140) states that: “FY2004 funds may not be used to pay or to provide reimbursement for payment of the salary of a consultant whether retained by the federal government or the grantee at more than the daily equivalent of the rate paid for level IV of the Executive Schedule, unless specifically authorized by law.”  How are you defining consultant?  Does this apply to consultants hired by the PHA and its development partners, subcontractors, etc.?

This restriction only applies to consultants that are hired as “employees” of a PHA rather than those whose services are procured.  It means that any consultant hired as an employee by a PHA using HOPE VI funds may be paid no more than the daily equivalent of the rate paid for level IV of the Executive Schedule.  The restriction does not apply to the rate at which any other party pays for a consultant's services.  This restriction applies to any funds provided for in the Appropriations Acts, not just HOPE VI. 

19.  On page 64140, why are there are two sections under Section III.C.2?

Section III.C.2.a. lists threshold certifications and documentation that must be submitted with the application for which technical deficiencies may not be corrected during the cure period.  Section  III.C.2.b. lists certifications and other documentation that must be submitted with the application but for which technical deficiencies may be corrected during the cure period, after the application due date. Corrections to technical deficiencies in applications must be made in accordance with Section V.B.4. of the SuperNOFA.  As stated under Section IV(B)(5) of the HOPE VI NOFA, omission of, or incorrect/improper signature on certain documents, including the resident involvement certification, is considered a technical deficiency and must be cured within the cure period, as stated in the Section IV(B) of the SuperNOFA.  Applications that remain deficient after the cure period will not be rated or ranked and will be ineligible for funding.  This difference between curable and not curable also applies to the thresholds under Section III(C)(3).  

20.  Our PHA’s proposed revitalization plan consists entirely of public housing replacement units and homeownership units, that is, there are no market-rate units.  Do we need to submit a market study if there are no market-rate units?

The Market Rate Housing Market Assessment Letter, required under Section III(C)(3)(b)(1), is only required if you are developing market rate housing.  If you are not, you do not need to include one.  However, applicants should ensure they clearly and consistently communicate in their narratives and attachments whether or not their plan includes market rate housing. 

21.  Is the “Resident Involvement in the Revitalization Program” certification a curable threshold (pg. 64141)?

Yes, the “Resident Involvement in the Revitalization Program” certification is a curable threshold in accordance with Section III(C)(2)(b) and Section IV(B)(5).  As stated under Section IV(B)(5), omission of, or incorrect/improper signature on certain documents, including the resident involvement certification, is considered a technical deficiency and must be cured within the cure period, as stated in the Section IV(B) of the SuperNOFA.  Applications that remain deficient after the cure period will not be rated or ranked and will be ineligible for funding. 

22.  What is the difference between a resident training session and a public meeting?

The key difference for purposes of this NOFA is that the resident training session focuses on the residents, while the public meetings include both the residents and the broader community. 

23. Must all of the public meetings be conducted after publication of the NOFA in order to meet the threshold requirement at Section III(C)(2)(b)(3) (pg. 64141)?

No. In accordance with Section III(C)(4)(j)(5), at least one public meeting, which included representation from both the involved public housing residents and the community, must have been held at the beginning of the revitalization planning period. This public meeting may have occurred before the publication of the NOFA in the Federal Register. Section III(C)(4)(j)(5) additionally requires that: at least one training session and the minimum of two more public meetings must have been held after the publication date of this NOFA in the Federal Register and before the application due date (February 1, 2005). The minimum number of resident trainings and public meetings are required to meet the Resident Involvement threshold in Section III(C)(2)(b)(3). Additional meetings and trainings will be counted toward demonstration of continual inclusion of the residents and community in the rating factors (e.g. Sections V(A)(4) and V(A)(9)(d)(5). 

24.  Can any of these meetings be held on the same day?

No.  In order to meet the threshold requirement of Section III(C)(2)(b)(3) (pg. 64141), and in accordance with the program requirements of Section III(C)(4)(j)(3)(b) (pg. 64143), the three public meetings must take place on different days from each other and from the resident training session. 

25.  On page 64150, the documentation requirements for “Need for HOPE VI Funding” are listed under Section IV(B)(4), “Threshold Documentation.”  Is “Need for HOPE VI Funding” a threshold requirement or a rating factor?

Need for HOPE VI Funding” is not a threshold requirement but is a rating factor.  The documentation requirements were inadvertently listed under Section IV(B)(4), “Threshold Documentation,” rather than Section IV(B)(6) (pg. 64151), “Rating Factor Documentation.”  However, applicants should follow the documentation requirements as originally listed under Section IV(B)(4) when responding to the Rating Factor under Section V(A)(2)(c).  

26.  Section V(A)(1)(d)(2) (pg. 64156) indicates that: “Production achievement numbers will be taken from the quarterly reporting system for the quarter most recently completed at the time the NOFA is published in the Federal Register.”  What quarter would that be?

Production achievement numbers will be taken from the HOPE VI Quarterly Progress Report for the quarter ending September 30, 2004.

27.  Will the matching funds required under Section III(B) (pg. 64138) be counted toward the leverage rating factor under Section V(A)(3) (pg. 64158)?

Yes, under Section V(A)(3), HUD will include as leverage the match amounts that are required by Section III(B) in order to determine leverage ratios. 

28.  Under Rating Factor V(A)(5)(d)(1)(d) (pg. 64159), does ‘public housing unit’ mean just rental units or homeownership units as well?

The Rating Factor under Section V(A)(5)(d)(1)(d) states that the applicant’s CSS program must establish, “reasonable limits on the length of time any resident can reside in a public housing unit within a HOPE VI Revitalization Development.”  This time limit requirement applies to public housing rental units, not homeownership units.

29.  Under Rating Factor V(A)(8)(a) (pg. 64161), does “project-based affordable housing” mean “on-site affordable housing”?

No, “project-based affordable housing” does not mean “on-site affordable housing.”  Rather, for purposes of the NOFA, “project-based affordable housing” includes affordable housing provided both on-site and off-site.  As defined under Section V(A)(8)(a)(1)(a), “project-based affordable housing units” are defined as housing units where there are affordable-housing use restrictions , e.g., public housing, project-based Section 8 (HCV), LIHTC units, HOME units, etc.  Thus for Rating Factor V(A)(8)(a)(2)(c), HUD will evaluate the total project-based affordable housing you identify in your application against the number of public housing units that targeted project (i.e., the original site) contained on the application due date.  Be sure to clearly and consistently indicate in your narratives and attachments which units are project-based affordable housing, i.e., have affordable-housing use restrictions. 

30.  For Section V(A)(8)(a) (pg. 64161), does the term “project-based affordable units” include homeownership?

Yes, for purposes of the NOFA, “project-based affordable units” does include homeownership units, as long as they are affordable homeownership units (i.e., sold to families eligible for public housing).    Thus, for rating factor V(A)(8)(a)(2) (pg. 64161), affordable homeownership units may be included in the number of project-based affordable housing units.   

31.  What section of the NOFA should I refer to in order to complete Attachment 23 (pg. 64199)?

Refer to Section III(C)(4)(j) in order to complete Attachment 23, the “Resident Training and Public Meeting Certification” form (HUD form 52785).    

32.  What section of the NOFA should I refer to in order to complete Attachment 31 (pg. 64200)? 

Refer to Section V(A)(9)(d) in order to complete Attachment 31, the “Project Readiness” certification form (HUD form 52787). 

33.  For HUD form 27300, “America’s Affordable Communities Initiative,” do I complete both Parts A and B, or just one?

When completing HUD form 27300, “America’s Affordable Communities Initiative,” you need only complete Part A or B, whichever one applies to your housing authority.  You do not need to complete both parts. 

34. Are there technical corrections to the NOFA?

Yes. Technical corrections are published in the Federal Register and are also posted on the FY 2004 Funding Information page of the HOPE VI website. All applicants should review these technical corrections and incorporate them into your application, as relevant.

35. How should applicants that are also MTW participants respond to Sections V(A)(1)(h) and V(A)(1)(i) (pg. 64157) regarding PHAS and SEMAP status?

If you are a MTW PHA and are in compliance with your MTW Agreement, you will receive 2 points. If you are not in compliance with your MTW Agreement, you will receive 0 points.

36. Could you clarify the scoring for "Need for Affordable Accessible Housing in the Community"? According to the criteria in Section V(A)(2)(d) (pg. 64158), the information that we report on the utilization rate for the Housing Choice Voucher (HCV) program needs to be consistent with SEMAP. Will we be evaluated on our utilization rate based on units and our utilization rate based on the HCV budget?

The HCV program utilization rate will be determined by the percentage of HCV units out of the total number authorized or the percentage of HCV funds expended out of the total amount authorized, whichever percentage is higher.

37. Is there a form or some specific document that the PHA should supply to certify that the relocation plan complies with URA?

In accordance with Sections III(C)(2)(b)(2) and III(C)(4)(n) of the NOFA (pgs. 64140 and 64147), you need to submit a certification that you have completed a HOPE VI Relocation Plan in conformance with the URA. This certification may be in the form of a letter (there is not a prescribed form) and will be used by HUD to determine compliance with the relocation plan threshold at Section III(C)(2)(b)(2). Relocation requirements are listed in III(C)(4)(n). Applicants should also refer to CPD Notice 02-08 for additional guidance for creating a relocation plan, including a template. If you have already completed relocation of all residents (i.e., the targeted public housing site is vacant) as of the application due date, rather than certifying that the HOPE VI Relocation Plan has been completed, you certify that the relocation was completed already. Relocation information should be provided in Attachment 25, including the certification of completed relocation which is necessary to earn points under rating factor
V(A)(9)(d)(1) (Project Readiness, Vacant Site). See Section IV(B) for documentation requirements.

38. Must the program schedule include information on phases that do not use HOPE VI funds?

Yes, in order to meet the threshold requirement of Section III(C)(1)(i) (pg. 64139), you must include information for all phases planned in your revitalization effort, regardless of whether that particular phase is funded with HOPE VI dollars. Specifically, the program schedule threshold requires that the program schedule must indicate the date on which the development proposal, i.e., whether mixed-finance development, homeownership development, etc., for each phase of the revitalization plan will be submitted to HUD.

39. In regard to the threshold requirement under Section III(C)(1)(l) (pg. 64140), does an applicant have to demonstrate site control for off-site parcels of land for which they do not intend to use HOPE VI funds or place replacement housing?

Applicants must demonstrate site control for any parcel of land for which they plan to develop off-site housing, regardless of funding source. An applicant does not need to demonstrate site control for land on which they will not be developing any housing (e.g., commercial development). If they do propose to develop housing on these off-site parcels, whether replacement housing, market-rate housing, etc., they must demonstrate site control for these parcels.

40. If a PHA controls a non-profit development organization, does site control of a vacant property by said non-profit constitute site control for purposes of the HOPE VI application?

No. Under the threshold requirement of Section III(C)(1)(l) (pg. 64140), the PHA, not another entity, must have control (i.e., option agreement, etc.) of off-site parcels of land proposed for housing development.

41. Our PHA is in the process of getting the main site re-zoned for purposes of the revitalization effort. Must we have zoning approval before the application due date?

Yes. In order to meet the threshold requirement of Section III(C)(1)(m) (pg. 64140), your application must include either a certification from the appropriate local zoning official that all required zoning approvals have been secured, or the actual zoning approval documents. If you are proposing to use off-site parcels of land for housing development or other uses and those parcels are already zoned for your chosen use, then your application must include a certification signed by the PHA's Executive Director stating that all current zoning allows all proposed HOPE VI activities. Because all materials must be provided in your application by the due date (February 1, 2005), all zoning approvals must be obtained before the due date.