Federal Register, Volume 65 Issue 240 (Wednesday, December 13, 2000)

[Federal Register Volume 65, Number 240 (Wednesday, December 13, 2000)]
[Notices]
[Pages 78040-78049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31652]

[[Page 78039]]

-----------------------------------------------------------------------

Part III

Department of Housing and Urban Development

-----------------------------------------------------------------------

Notice of Funding Availability; Fair Share Allocation of Incremental
Voucher Funding, Fiscal Year 2001; Notice

Federal Register / Vol. 65, No. 240 / Wednesday, December 13, 2000 /
Notices

[[Page 78040]]

-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing

[Docket No. FR-4632-N-01]

Notice of Funding Availability; Fair Share Allocation of
Incremental Voucher Funding, Fiscal Year 2001

AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.

ACTION: Notice of fund availability (NOFA).

-----------------------------------------------------------------------

SUMMARY: Purpose of the Program. The purpose of this NOFA is to invite
public housing agencies (PHAs) to apply for vouchers on a fair share
allocation basis under the Housing Choice Voucher Program. The vouchers
are for issuance to families on a PHA's housing choice voucher waiting
list to enable these families to rent decent, safe, and affordable
housing of their choice on the private rental market.
Available Funds. Approximately $452,907,000 in one-year budget
authority for approximately 79,000 housing choice vouchers. Prior to
the funding of any new applications under this NOFA for FY 2001,
$4,191,788 of this budget authority will be used to correct the
underfunding of four PHAs under the FY 2000 Fair Share NOFA due to an
error on the part of HUD. See Section II(C)(3) of this NOFA regarding
the specific PHAs, dollar amounts and corresponding number of vouchers
that each of the four PHAs will receive to correct the underfunding
error. This will leave $448,715,212 in one-year budget authority
available for the funding of approximately 78,475 vouchers for
applications submitted in FY 2001 under this NOFA.
Eligible Applicants. Public housing agencies (PHAs). Indian Housing
Authorities (IHA), Indian tribes and their tribally designated housing
entities are not eligible applicants. The Native American Housing
Assistance and Self-Determination Act of 1996 does not allow HUD to
enter into new housing choice voucher (Section 8) annual contributions
contracts (ACC) with IHAs after September 30, 1997.
Application Due Date. January 29, 2001.
Match. None.

SUPPLEMENTARY INFORMATION: If you are interested in applying for
funding under this NOFA, please read the balance of this NOFA which
will provide you with detailed information regarding the submission of
an application, Housing Choice Voucher Program requirements, the
application selection process to be used by HUD in selecting
applications for funding, and other valuable information relative to a
PHA's application submission and participation in the program covered
by this NOFA.

I. Application Due Date, Application Kits, Further Information, and
Technical Assistance

Application Due Date. Your completed application (an original and
one copy) is due on or before January 29, 2001 at the address shown
below. This application deadline is firm. In the interest of fairness
to all competing PHAs, HUD will not consider any application that is
received after the application deadline. Applicants should take this
practice into account and make early submission of their materials to
avoid any risk of loss of eligibility brought about by unanticipated
delays or other delivery-related problems. HUD will not accept, at any
time during the NOFA competition, application materials sent via
facsimile (FAX) transmission.
Address for Submitting Applications. Submit your original
application and one copy to Michael E. Diggs, Director of the Grants
Management Center, Department of Housing and Urban Development, 501
School Street, SW, Suite 800, Washington, D.C. 20024.
The Grants Management Center is the official place of receipt for
all applications in response to this NOFA. A copy of the application is
not required to be submitted to the local HUD Field Office. For ease of
reference, the term ``local HUD Field Office'' will be used in this
NOFA to mean the local HUD Field Office Hub and local HUD Field Office
Program Center.
Hand Carried Applications. If you are hand delivering your
application, your application is due by not later than 8:45 am to 5:00
pm, Eastern time, on the application due date to the Office of Public
and Indian Housing's Grants Management Center (GMC) in Washington, DC.
Mailed Applications. Applications sent by U.S. mail will be
considered timely filed if postmarked on or before 12:00 midnight on
the application due date and received on or within ten (10) days of
that date at the Grants Management Center.
Applications Sent By Overnight/Express Mail Delivery. Applications
sent by overnight delivery or express mail will be considered timely
filed if received by the Grants Management Center before or on the
application due date, or upon submission of documentary evidence that
they were placed in transit with the overnight delivery service by no
later than the specified application due date.
For Application Kit. An application kit is not available and is not
necessary for submitting an application for funding under this NOFA.
This NOFA contains all of the information necessary for the submission
of an application for voucher funding in connection with this NOFA.
For Further Information and Technical Assistance. Prior to the
application due date, you may contact George C. Hendrickson, Housing
Program Specialist, Room 4216, Office of Public and Assisted Housing
Delivery, Department of Housing and Urban Development, Room 4216, 451
Seventh Street, SW, Washington, DC 20410; telephone (202) 708-1872,
ext. 4064. Subsequent to application submission, you may contact the
Grants Management Center at (202) 358-0273. (These are not toll-free
numbers.) Persons with hearing or speech impairments may access these
numbers via TTY (text telephone) by calling the Federal Information
Relay Service at 1-800-877-8339 (this is a toll-free number).

II. Authority, Purpose, Fair Share Allocation Amount, Voucher
Funding, and Eligibility

(A) Authority

Authority for the approximately $452,907,000 in one-year budget
authority for housing choice vouchers for low-income families is found
in the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, FY 2001
(Pub.L. 106-377, approved October 27, 2000, referred to as the FY 2001
HUD Appropriations Act. The allocation of housing assistance budget
authority for housing choice vouchers, by allocation area based on fair
share factors, is pursuant to the provisions of 24 CFR part 791,
subpart D, implementing section 213(d) of the Housing and Community
Development Act of 1974, as amended. Funding in the amount of
$4,191,788 will be subtracted from the one-year budget authority of
$452,907,000 in order to correct an underfunding error affecting four
PHAs funded by HUD in FY 2000 under the FY 2000 Fair Share NOFA (see
Section II(C)(3), Underfunding Corrections, in this NOFA).

(B) Purpose

The purpose of the housing choice voucher funding being made
available under this NOFA is to provide housing assistance to very low-
income families

[[Page 78041]]

to enable them to rent decent, safe, and affordable housing of their
choice on the private market.

This NOFA announces the availability of approximately $452,907,000
in one-year budget authority for a fair share formula allocation which
will provide rental assistance to approximately 79,000 very low-income
families. Funding in the amount of $4,191,788 for 525 vouchers for four
PHAs will first be subtracted from the $452,907,000 (leaving a balance
of $448,715,212 for approximately 78,475 vouchers for FY 2001
applications submitted in response to this NOFA) to correct an
underfunding error attributable to HUD under the FY 2000 Fair Share
NOFA that affected four PHAs. (See Section II(C)(3), Underfunding
Corrections.)
(1) Fair Share Allocation for Each Allocation Area
Appendix A of this NOFA lists the allocation of housing assistance
budget authority for vouchers for each allocation area, based on fair
share factors. Appendix A also provides an estimate of the total number
of vouchers that could be funded from the housing assistance available
for each allocation area based on the weighted local average costs of
voucher assistance for a two-bedroom unit. The actual number of units
assisted within each allocation area will vary from the estimates
prepared by Headquarters since the actual costs of voucher assistance
for each PHA vary from the average.
(2) Potential Additional Funding
If additional voucher funding becomes available for fair share use
during FY 2001, HUD plans to distribute any additional funding to
allocation areas using the same percentage distribution as reflected in
Appendix A to this NOFA. Any additional funding will be used under the
competitive requirements of this NOFA to fund PHA applications which
were approvable but not funded, or approved and funded at less than 100
percent of the requested amount for which the PHA was eligible under
this NOFA.
(3) Underfunding Corrections
If prior to the award of Fair Share funding under this NOFA, HUD
determines that any awardees under the FY 2000 Fair Share NOFA have
been underfunded due to an error attributable to HUD, funding will be
increased to the amount that the awardee should have received. The
Grants Management Center will, in coordination with the local HUD Field
Office and the affected PHA, determine the number of units that should
have been awarded the PHA under the FY 2000 NOFA and the funding amount
that would currently be appropriate to fund that number of units under
the voucher funding procedures in Section II.(D) of this FY 2001 Fair
Share NOFA.
Prior to the issuance of this NOFA the determination was made that
four PHA awardees under the FY 2000 Fair Share NOFA were underfunded
due to HUD's failure to include these PHAs' Moving to Work (MTW) units
when calculating the number of certificates and vouchers being
administered for purposes of the number of vouchers a PHA was eligible
to apply for and be funded. Funding in the amount of $4,191,788 will be
subtracted from the Fair Share funding available under this NOFA to
fund these four PHAs as follows: Seattle, Washington Housing
Authority--$1,621,534 for 231 vouchers; Portland Oregon Housing
Authority--$841,788 for 117 vouchers; Cambridge, Massachusetts Housing
Authority--$1,514,386 for 133 vouchers; and Portage, Ohio Housing
Authority--$214,080 for 44 vouchers.

(D) Voucher Funding

(1) Determination of Funding Amount for the PHA's Requested Number of
Vouchers
HUD will determine the amount of funding that a PHA will be awarded
under this NOFA based upon an actual annual per unit cost {except that
for Moving to Work (MTW) agencies the per unit cost will be calculated
in accordance with the agency's MTW Agreement} using the following
three step process (as may be modified based upon a percentage of
annual per unit cost if necessary to produce the 79,000 vouchers
provided for under this NOFA):
(a) HUD will extract the total expenditures for all the PHA's
housing choice voucher and certificate programs and the unit months
leased information from the most recent approved year end statement
(form HUD-52681) that the PHA has filed with HUD. HUD will divide the
total expenditures for all of the PHA's housing choice voucher and
certificate programs by the unit months leased to derive an average
monthly per unit cost.
(b) HUD will multiply the monthly per unit cost by 12 (months) to
obtain an annual per unit cost.
(c) HUD will multiply the annual per unit cost derived under
paragraph (b) above by the Housing Choice Voucher Program (Section 8)
Housing Assistance Payments Program Contract Rent Annual Adjustment
Factor (with the highest cost utility included) to generate an adjusted
annual per unit cost. For a PHA whose jurisdiction spans multiple
annual adjustment factor areas, HUD will use the highest applicable
annual adjustment factor.

(E) Eligible Applicants

A PHA established pursuant to State law may apply for funding under
this NOFA. A regional (multi-county) or State PHA is also eligible to
apply for funding.
A PHA may submit only one application under this NOFA. This one
application per PHA limit applies regardless of whether or not the PHA
is a State or regional PHA, except in those instances where such a PHA
has more than one PHA code number due to its operating under the
jurisdiction of more than one HUD Field Office. In such an instance, a
separate application under each code shall be considered for funding,
with the cumulative total of vouchers applied for under the
applications not to exceed the maximum number of vouchers the PHA is
eligible to apply for under Section V.(B) of this NOFA; i.e., no more
than the number of vouchers the same PHA would be eligible to apply for
if it only had one PHA code number.
Two or more divisions within State government comprising separate
PHAs shall require the State to determine which division shall submit
an application to HUD under this NOFA. As with other PHAs, only one
application per PHA shall be considered (see sole exception referenced
immediately above).
A contract administrator which does not have an annual
contributions contract (ACC) with HUD for housing choice vouchers or
certificates, but which constitutes a PHA under 24 CFR 791.102 by
reason of its administering housing choice vouchers or certificates on
behalf of another PHA, shall not be eligible to submit an application
under this NOFA.
Indian Housing Authorities (IHA), Indian tribes and their tribally
designated housing entities are not eligible to apply because the
Native American Housing Assistance and Self-Determination Act of 1996
does not allow HUD to enter into new housing choice voucher annual
contributions contracts (ACC) with IHAs after September 30, 1997.
Applicants are limited to those PHAs currently administering
housing choice vouchers or certificates.
Some PHAs currently administering the housing choice voucher and
certificate programs have, at the time of

[[Page 78042]]

publication of this NOFA, major program management findings from
Inspector General audits, HUD management reviews, or independent public
accountant (IPA) audits that are open and unresolved or other
significant program compliance problems. HUD will not accept
applications for additional funding from these PHAs as contract
administrators if, on the application due date, the findings are either
not closed, or sufficient progress toward closing its findings has not
been made to HUD's satisfaction. The PHA must also, to HUD's
satisfaction, be making satisfactory progress in addressing any program
compliance problems. If the PHA wants to apply for funding under this
NOFA, the PHA must submit an application that designates another
housing agency, nonprofit agency, or contractor, that is acceptable to
HUD. The PHA's application must include an agreement by the other
housing agency, nonprofit agency, or contractor to administer the new
funding increment on behalf of the PHA, and a statement that outlines
the steps the PHA is taking to resolve the program findings and the
program compliance problems. Immediately after the publication of this
NOFA, the local HUD Field Office will notify, in writing, those PHAs
that are not eligible to apply without such an agreement. Concurrently,
the local HUD Field Office will provide a copy of each such written
notification to the GMC. The PHA may appeal the decision, in writing,
if HUD has mistakenly classified the PHA as having outstanding
management or compliance problems. Any appeal must be accompanied by
conclusive evidence of HUD's error (i.e., documentation showing that
the finding has been cleared or satisfactory progress toward closing
the findings or addressing the compliance problems has been made) and
must be received prior to the application deadline. The appeal should
be submitted to the local HUD Field Office where a final determination
shall be made. Concurrently, the local HUD Field Office shall provide
the GMC with a copy of its written response to the appeal, along with a
copy of the PHA's written appeal. Major program management findings are
those that would cast doubt on the capacity of the PHA to effectively
administer any new housing choice voucher funding in accordance with
applicable HUD regulatory and statutory requirements.

(F) Eligible Participants

Eligible participants must be income eligible under 24 CFR
982.201(b)(1) in order to receive a voucher. Eligible participants
include very low-income families, and on an exception basis some low-
income families, who are on the PHA's housing choice voucher waiting
list and who are determined to be eligible for housing assistance under
the housing choice voucher regulations at 24 CFR part 982 and part 5.

III. General Program Requirements

(A) General Program Requirements

(1) Compliance With Fair Housing and Civil Rights Laws
All applicants must comply with all fair housing and civil rights
laws, statutes, regulations, and executive orders as enumerated in 24
CFR 5.105(a). If an applicant: (a) has been charged with a systemic
violation of the Fair Housing Act by the Secretary alleging ongoing
discrimination; (b) is the defendant in a Fair Housing Act lawsuit
filed by the Department of Justice alleging an ongoing pattern or
practice of discrimination; or (c) has received a letter of
noncompliance findings under Title VI of the Civil Rights Act of 1964,
section 504 of the Rehabilitation Act of 1973, or section 109 of the
Housing and Community Development Act of 1974, the applicant's
application will not be evaluated under this NOFA if, prior to the
application deadline, the charge, lawsuit, or letter of findings has
not been resolved to the satisfaction of the Department. HUD's decision
regarding whether a charge, lawsuit, or a letter of findings has been
satisfactorily resolved will be based upon whether appropriate actions
have been taken necessary to address allegations of ongoing
discrimination in the policies or practices involved in the charge,
lawsuit, or letter of findings.
(2) Additional Nondiscrimination Requirements
In addition to compliance with the civil rights requirements listed
at 24 CFR 5.105(a), each successful applicant must comply with the
nondiscrimination in employment requirements of Title VII of the Civil
Rights Act of 1964 (42 U.S.C. 2000e et seq.), the Equal Pay Act (29
U.S.C. 206(d)), the Age Discrimination in Employment Act of 1967 (29
U.S.C. 621 et seq.), Title IX of the Education Amendments Act of 1972,
and the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.).
(3) Affirmatively Furthering Fair Housing
Each successful applicant will have a duty to affirmatively further
fair housing. Applicants will be required to identify the specific
steps that they will take to:
(a) Examine the PHA's own programs or proposed programs, including
an identification of any impediments to fair housing (identified in the
jurisdiction's Analysis of Impediments (AI) to Fair Housing Choice--in
its Consolidated Plan); develop a plan to (i) address those impediments
in a reasonable fashion in view of the resources available; and (ii)
work with local jurisdictions to implement any of the jurisdictions'
initiatives to affirmatively further fair housing; and maintain records
reflecting this analysis and actions.
(b) Remedy discrimination in housing; or
(c) Promote fair housing rights and fair housing choice.
Further, applicants have a duty to carry out the specific
activities cited in their responses under this NOFA to address
affirmatively furthering fair housing.
(4) Certifications and Assurances
Each applicant is required to submit signed copies of Assurances
and Certifications. The standard Assurances and Certifications are on
Form HUD-52515, Funding Application, which includes the Equal
Opportunity Certification, Certification Regarding Lobbying, and
Certification Regarding Drug-Free Workplace Requirements.

(B) PHA Responsibilities and Rental Assistance Requirements

(1) Housing Choice Voucher Regulations
PHAs must administer the housing choice vouchers received under
this NOFA in accordance with HUD regulations and requirements governing
the Housing Choice Voucher Program.
(2) Housing Choice Voucher Program Admission Requirements
Housing choice voucher assistance must be provided to eligible
applicants in conformity with regulations and requirements governing
the Housing Choice Voucher Program and the PHA's administrative plan.
(3) Turnover
When a voucher under this NOFA becomes available for reissue (e.g.,
the family initially selected for the program drops out of the program
or is unsuccessful in the search for a unit), the voucher may be used
only for the next eligible family on the PHA's housing choice voucher
waiting list.

[[Page 78043]]

IV. Fair Share Application Rating Process

(A) Selection Criteria

The GMC will use the Selection Criteria shown below for the rating
of applications submitted in response to this NOFA. The maximum score
under the selection criteria for fair share funding is 100 points.
(1) Selection Criterion 1: Housing Needs (65 points)
(a) Description: This criterion assesses the housing need in the
primary market area specified in the PHA's application compared with
the housing need for the State. Housing need is defined as the number
of very low-income renter households with severe rent burden, based on
1990 Census data. Very low-income is defined as income at or below the
housing choice voucher (Section 8) very low-income limits. Severe rent
burden is defined as a household paying 50 percent or more of its gross
income for rent.
(b) Needs Data: For the purpose of this criterion, housing needs
are based on a tabulation of 1990 Census data prepared for the
Department by the Bureau of the Census. Data on housing needs are
available for all States, all counties (county equivalents), and places
with populations of 10,000 or more as of 1990. Information will be
posted on the HUD Home Page site on the Internet's world wide web
(http://www.hud.gov), under ``funds available'' for the Fair Share
NOFA, indicating the proportion of each State's housing needs for
primary markets.
(c) Rating and Assessment: The number of points assigned is based
on the percentage of the State's housing need that is within the PHA's
primary market area. The primary market area is defined as the
jurisdiction (or its closest equivalent in terms of areas for which
housing needs data are available) in which the PHA is legally
authorized to operate and where the vouchers will be used, as described
in its application. (See Section VI. (C) of this NOFA regarding the
description of the primary market area required to be included in each
PHA's application.)
(1) The GMC will assign one of the following point totals:
65 points (maximum). For each percentage point of the
State's housing need (rounded to the nearest percentage point), the PHA
will receive three points.
(2) A State or regional (multi-county) PHA will receive points
based on the areas it serves where the vouchers will be used, e.g., the
entire State or the sum of the housing needs for the counties and/or
localities comprising its primary market area.
(3) A PHA with a primary market area that is a community with a
population of 10,000 or less, or a PHA for which housing needs data are
not available, will receive three points.
(2) Selection Criterion 2: Efforts of PHA to Provide Area-Wide Housing
Opportunities for Families (15 points)
(a) Description: Many PHAs have undertaken voluntary efforts to
provide area-wide housing opportunities for families. The efforts
described in response to this selection criterion must be beyond those
required by federal law or regulation such as the portability
provisions of the housing choice voucher program. The GMC will assign
points to PHAs that are not using/will not use a residency preference,
or will use a residency preference in a limited manner for selection of
families to participate in the voucher program. In addition, the GMC
will assign points to PHAs that have established relationships with
non-profit groups to provide families with additional counseling, or
have directly provided counseling, to increase the likelihood of a
successful move by the families to areas that do not have large
concentrations of poverty. The GMC will also assign points to PHAs that
demonstrate they have implemented other initiatives that have resulted
in expanding housing opportunities.
A PHA having more than one housing authority code number and
submitting an application under one or more of these code numbers (see
Section II. (E) of this NOFA) will be eligible to receive points under
the categories in Selection Criterion 2 if it meets the qualifications
for points under any one or more of the separate applications it
submits.
(b) Rating and Assessment: The GMC will assign point values for any
of the following assessments for which the PHA qualifies and add the
points for all the assessments (maximum of 15 points) to determine the
total points for this Selection Criterion:
5 Points--Assign 5 points if the PHA certifies that (i)
its administrative plan does not include a ``residency preference'' for
selection of families to participate in its voucher program, or (ii) it
will eliminate immediately any ``residency preference'' currently in
its administrative plan, or (iii) it will limit applicability of
residency preferences to up to 50% of all new admissions.
5 Points--Assign 5 points if the PHA documents that it has
established a contractual relationship with a non-profit agency or the
local governmental entity to provide housing counseling for families
that want to move to low-poverty or non-minority areas. The five PHAs
approved for the FY 93 Moving to Opportunity (MTO) for Fair Housing
Demonstration, PHAs participating in the Regional Opportunity
Counseling (ROC) Program, and any other PHAs that receive counseling
funds from HUD in connection with the demolition of public housing,
public housing vacancy consolidation, or settlement of litigation
involving desegregation may qualify for points under this assessment.
However, these PHAs must identify all activities undertaken, other than
those funded and required under the MTO Demonstration, ROC Program, or
the court-ordered plans or plans for relocating public housing
families, to expand housing opportunities.
5 Points--Assign 5 points if the PHA documents that it has
implemented other initiatives that have resulted in expanding housing
opportunities.
(3) Selection Criterion 3: Disabled Families (15 points)
(a) Description: The GMC will assign 15 points to PHAs that
indicate at least 15 percent or more of the vouchers they are
requesting (or funded by HUD) under this NOFA will be used to house
disabled families. The PHA's application must be specific as to the
exact percentage of vouchers that will be issued solely to disabled
families. Disabled families are defined as follows:
(i) Disabled Family. A family whose head, spouse, or sole member is
a person with disabilities. The term ``disabled family'' may include
two or more such persons with disabilities living together, and one or
more such persons with disabilities living with one or more persons who
are determined essential to the care and well-being of the person or
persons with disabilities (live-in aides).
(ii) Person with disabilities. A person who--
a. Has a disability as defined in section 223 of the Social
Security Act (42 U.S.C. 423), or
b. Is determined to have a physical, mental or emotional impairment
that:
1. Is expected to be of long-continued and indefinite duration;
2. Substantially impedes his or her ability to live independently;
and
3. Is of such a nature that such ability could be improved by more
suitable housing conditions, or
c. Has a developmental disability as defined in section 102 of the
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C.
6001(5)).

[[Page 78044]]

The term ``person with disabilities'' does not exclude persons who
have the disease of acquired immunodeficiency syndrome (AIDS) or any
conditions arising from the etiologic agent for acquired
immunodeficiency syndrome (HIV).

Note: While the above definition of a ``person with
disabilities'' is to be used for purposes of determining a family's
eligibility for a housing choice voucher designated as being for a
disabled family under this NOFA, the definition of a person with
disabilities contained in section 504 of the Rehabilitation Act of
1973 and its implementing regulations must be used for purposes of
meeting the requirements of Fair Housing laws, including providing
reasonable accommodations.

No individual shall be considered a person with disabilities for
the purpose of determining eligibility solely on the basis of any drug
or alcohol dependence.
(b) Rating and Assessment: The GMC will assign one of two point
values, as follows:
15 points: The PHA will use not less than 15 percent of
the vouchers being requested (or funded by HUD) to house disabled
families.
0 points: The PHA will use less than 15 percent of the
vouchers it is requesting (or funded by HUD) to house disabled
families.
(4) Selection Criterion 4: Medicaid Home and Community Based Services
Waivers Under Section 1915(c) of the Social Security Act (5 points)
(a) Description: This selection criterion is for PHAs interested in
the provision of housing choice voucher assistance to families within
their jurisdiction who are disabled and also covered under a waiver of
Section 1915(c) of the Social Security Act. Section 1915(c) waivers are
approved by the Health Care Financing Administration within the
Department of Health and Human Services (HHS) for the agency within
each State responsible for the administration of the medicaid program.
Contacting the responsible State agency (for example, the Agency for
Health Care Administration in the State of Florida) will assist the PHA
in determining how many, if any, individuals are covered by a Section
1915(c) waiver in the PHA's legal area of operation. These waivers
allow medicaid-eligible individuals at risk of being placed in
hospitals, nursing facilities or intermediate care facilities the
alternative of being cared for in their homes and communities. These
individuals are thereby assisted in preserving their independence and
ties to family and friends at a cost no higher than that of
institutional care.
While a Section 1915(c) waiver may cover individuals other than
those who are disabled, the focus of Selection Criterion 4 is on
disabled families only. The definition of disabled families listed
under Selection Criterion 3 will be used by PHAs for purposes of the
issuance of vouchers to disabled families in connection with Selection
Criterion 4; i.e., only those individuals that meet the definition of a
disabled family in this NOFA are to be considered in connection with a
PHA determining how many such disabled families are covered by a
Section 1915(c) waiver in their legal area of operation and whether to
try to qualify for the 5 points available under Selection Criterion 4.
The PHA's application must be specific as to the percentage of vouchers
that will be issued to such disabled families.
Any PHA attempting to qualify for the 5 points available under
Selection Criterion 4 should also include information within its
application indicating the collaborative efforts already undertaken
with the responsible State agency to identify eligible families, as
well as agreements reached with that agency for future referrals of
such families. HUD reserves the right at some future point in time to
conduct an evaluation of the success of the PHA's efforts to
collaborate with the State agency and to successfully house individuals
that meet the requirements of being covered by a Section 1915(c)
waiver, qualify as a disabled family under this NOFA, and are otherwise
eligible for a housing choice voucher.
(b) Rating and Assessment: The GMC will assign one of two point
values as follows:
5 points: The PHA will use not less than 3 percent of the
vouchers being requested (or funded by HUD) to house voucher eligible,
disabled families covered by a waiver under Section 1915(c) of the
Social Security Act.
0 points: The PHA will use less than 3 percent of the
vouchers it is requesting (or funded by HUD) to house voucher eligible,
disabled families covered by a waiver under Section 1915(c) of the
Social Security Act.
(c) Prohibition Against Double Counting. The number (percentage) of
disabled families that a PHA indicates it will issue vouchers to when
qualifying for the 5 points available under Selection Criterion 4
cannot be used to also qualify for the 15 points available under
Selection Criterion 3 or conversely.

V. Fair Share Application Selection Process

(A) Maximum Funding Allowed

The GMC may recommend for approval the maximum funding for a PHA
under this NOFA that does not exceed the lesser of 25 percent of the
PHA vouchers and certificates [including Moving to Work (MTW) units]
reserved; i.e., the number of units in its adjusted baseline (see 24
CFR 982.102(d)(ii)), or 25 percent of the number of vouchers available
in the allocation area. The determination of reserved units shall be
made in accordance with the methodology indicated in Appendix B.

(B) Funding Procedure

HUD seeks to maximize, insofar as practical, the number of PHAs
awarded funding under this NOFA. The GMC will recommend applications
for approval in rank order (highest to lowest score) within each
allocation area. No PHA shall be eligible to request or be funded at
more than the maximum funding indicated under Section V.(A) above of
this NOFA. The number of vouchers for which a PHA will first receive
consideration by the GMC for funding will be based upon initially using
the lesser of a 5 percent calculation for a PHA's reserved units, or 25
percent of the vouchers available for the allocation area. If funding
remains available within the allocation area, the percentage used for
the PHA's reserved units will increase to the percent required to use
all funding within the allocation area, not to exceed 25 percent.
Where the GMC finds it has some number of vouchers left but not
enough to fully fund the next ranked application or applications
receiving the same score, funding will be recommended by the GMC for
the application indicating it will accept the lesser number of vouchers
(see Section VI. (B) of this NOFA). In the event there are two or more
PHAs ranked at the same position (same number of rating points)
indicating they will accept the lesser number of vouchers, the PHA
whose application is eligible for the largest number of vouchers among
these PHAs will be recommended by the GMC for funding.

The GMC will make every reasonable effort to use all available
funds. It may be necessary, however, to reallocate funds from one
allocation area to another when the funds cannot be used in the
allocation area to which they

[[Page 78045]]

were initially allocated. (See 24 CFR 791.405(d).) In such cases, the
GMC will re-allocate funds to the allocation area having the largest
number of approvable vouchers remaining unfunded due to lack of
sufficient fair share funding.

(D) Applications Recommended by the GMC for Funding

After the GMC has screened PHA applications and disapproved any
applications found unacceptable for further processing, the GMC will
review all acceptable applications to ensure they are technically
adequate and responsive to the requirements of the NOFA. As PHAs are
selected, the cost of funding the applications will be subtracted from
the funds available. Applications will be funded for the total number
of units recommended for approval by the GMC in accordance with this
NOFA.

VI. Fair Share Application Submission Requirements

(A) Form HUD-52515

All PHAs must complete and submit form HUD-52515, Funding
Application, for housing choice vouchers (Section 8), (dated January
1996). Section C of the form should be left blank. PHAs are requested
to enter their housing authority code number, as well as their
electronic mail address, telephone number, and facsimile telephone
number in the same space at the top of the form where they are also to
enter the PHA's name and mailing address.
This form includes all necessary certifications for Fair Housing,
Drug Free Workplace and Lobbying Activities.
Appendix A to this NOFA lists the estimate of the number of
vouchers and budget authority available for each allocation area. PHAs
should limit their applications for the ``fair share'' program to a
reasonable number of vouchers based on the capacity of the PHA to
lease-up within 12 months of ACC execution. The number of vouchers on
the PHA application may not exceed that allowed under Section V.(A) of
this NOFA. Copies of form HUD-52515 may be obtained from the local HUD
Field Office or may be downloaded from the HUD Home Page site on the
Internet's world wide web (http://www.hud.gov). (On the HUD website
click on ``handbooks and forms,'' then click on ``forms'', then click
on ``HUD-5'' and click on ``HUD-52515''.) The form must be completed in
its entirety, with the exception of section C, signed and dated.
(1) A PHA may submit only one application (Form HUD-52515). (See
Section II(E), Eligible Applicants, of this NOFA which fully addresses
this one application per eligible applicant requirement and the one
very limited exception allowed under that requirement.)
(2) The GMC will reduce the number of vouchers requested in any
application that exceeds the established application limit in Section
V(A) of this NOFA above.

(B) Letter of Intent and Narrative

The PHA must state in its cover letter to the application whether
it will accept a reduction in the number of vouchers, and the minimum
number of vouchers it will accept, since the funding is limited and HUD
may only have enough funds to approve a smaller amount than the number
of vouchers requested. The application should include a narrative
description of how the application meets, or will meet, the application
selection criteria in Section IV(A) of this NOFA. Failure to submit a
narrative description is not cause for application rejection; however,
the GMC can only rate and rank the application based on information it
has on-hand.

Each PHA must specify in the application its primary market area;
i.e., the area in which it is authorized to operate and in which the
housing choice vouchers will be used. This information may be different
than that entered by such a PHA on the form HUD-52515, as the form
calls for the PHA to identify its ``legal area of operation'' which may
be far more geographically expansive than the specific city, county, or
area within a State where a PHA, particularly a regional or State PHA,
intends to use the fair share vouchers. This information is critical
because, as indicated in Section IV(A)(1)(c) of this NOFA, the
geographic area in which the vouchers are intended to be used and in
which the PHA is legally authorized to operate a Housing Choice Voucher
Program will be used to determine the percentage of the state's housing
needs that are within the PHA's primary market area under Selection
Criterion 1. For example, although a PHA may be legally authorized to
operate throughout the entire county in which it is located, if the
vouchers will be used only in two cities within that county then the
primary market area is those two cities and not the entire county.
Likewise, for a State PHA which may be legally authorized to operate
throughout the entire State, but which intends to use the fair share
vouchers in only one county, the primary market area is solely that
county. In addition, the primary market area shall not include a
geographic area in which the PHA is issuing vouchers, outside its
normally legally authorized area of operation, based upon an agreement
with another PHA(s) to issue vouchers in the other PHA's jurisdiction.

(D) Statement Regarding the Steps the PHA Will Take to Affirmatively
Further Fair Housing

The areas to be addressed in the PHA's statement should include,
but not necessarily be limited to:
(1) An examination of the PHA's own programs or proposed programs,
including an identification of any impediments to fair housing
(identified in the jurisdiction's Analysis of Impediments (AI) to Fair
Housing Choice--in its Consolidated Plan); and a description of a plan
developed to (a) address those impediments in a reasonable fashion in
view of the resources available and (b) work with local jurisdictions
to implement any of the jurisdiction's initiatives to affirmatively
further fair housing; and the maintenance of records reflecting this
analysis and actions;
(2) Remedy discrimination in housing; or
(3) Promote fair housing rights and fair housing choice.

(E) Moving to Work (MTW) PHA Information and Certification

See Section VII (B)(2)(c) regarding the information to be submitted
by an MTW PHA required to report under the Section 8 Management
Assessment Program (SEMAP) but not meeting the 95 percent lease-up or
budget authority utilization requirements, or the lease-up or budget
authority utilization certification to be submitted by an MTW PHA not
required to report under SEMAP.

(F) Multifamily Tenant Characteristics System (MTCS) Reporting
Certification

In order to be eligible to submit an application under this NOFA,
the PHA must have had a minimum reporting rate of not less than 85
percent for housing choice voucher and certificate resident records to
HUD's MTCS (see 24 CFR Part 908 and Notice PIH 98-30) for the period
ending December 1999, and must submit a certification with its
application certifying to having met this requirement.

VII. Corrections to Deficient Applications

(A) Acceptable Applications

An acceptable application is one which meets all of the application
submission requirements in Section VI

[[Page 78046]]

of this NOFA and does not fall into any of the categories listed in
Section VII (B) of this NOFA. The GMC will initially screen all
applications and notify PHAs of technical deficiencies by letter.
With respect to correction of deficient applications, HUD may not,
after the application due date and consistent with HUD's regulations in
24 CFR part 4, subpart B, consider any unsolicited information an
applicant may want to provide. HUD may contact an applicant to clarify
an item in the application or to correct technical deficiencies. Please
note, however, that HUD may not seek clarification of items or
responses that improve the substantive quality of a response to any
selection factors. In order not to unreasonably exclude applications
from being rated and ranked, HUD may contact applicants to ensure
proper completion of the application and will do so on a uniform basis
for all applicants. Examples of curable (correctable) technical
deficiencies include failure to submit the proper certifications or
failure to submit an application that contains an original signature by
an authorized official. In each case under this NOFA, the GMC will
notify the applicant in writing by describing the clarification or
technical deficiency. The applicant must submit clarifications or
corrections of technical deficiencies in accordance with the
information provided by the GMC within 7 calendar days of the date of
receipt of the HUD notification. (If the due date falls on a Saturday,
Sunday, or Federal holiday, your correction must be received by HUD on
the next day that is not a Saturday, Sunday, or Federal holiday.) If
the deficiency is not corrected within this time period, HUD will
reject the application as incomplete, and it will not be considered for
funding.

(B) Unacceptable Applications

(1) After the 7-calendar day technical deficiency correction
period, the GMC will disapprove all PHA applications that it determines
are not acceptable for processing. The GMC's notification of rejection
letter must state the basis for the decision.
(2) Applications from PHAs that fall into any of the following
categories will not be processed:
(a) Applications from PHAs that do not meet the requirements of
Section III(A)(1) of this NOFA, Compliance With Fair Housing and Civil
Rights Laws.
(b) The PHA has major program management findings in an Inspector
General audit, HUD management review, or independent public accountant
(IPA) audit for its voucher or certificate programs that are not closed
or on which satisfactory progress in resolving the findings is not
being made; or program compliance problems for its voucher or
certificate programs on which satisfactory progress is not being made.
The only exception to this category is if the PHA has been identified
under the policy established in Section II.(E) of this NOFA and the PHA
makes application with a designated contract administrator. Major
program management findings are those that would cast doubt on the
capacity of the PHA to effectively administer any new Section 8 voucher
funding in accordance with applicable HUD regulatory and statutory
requirements.
(c) The PHA has failed to achieve a lease-up rate of 95 percent for
its combined certificate and voucher units under contract for its
fiscal year ending in 1999. Category (c) may be passed, however, if the
PHA achieved a combined certificate and voucher budget authority
utilization rate of 95 percent or greater for its fiscal year ending in
1999. In the event the PHA is unable to meet either of these percentage
requirements, it may still pass category (c) if it submits information
to the GMC, as part of its application, demonstrating that it was able
to either increase its combined certificate and voucher lease-up rate
to 95 percent or greater for its fiscal year ending in 2000, or was
able to increase combined certificate and voucher budget authority
utilization to 95 percent or more for its fiscal year ending in 2000.
PHAs that have been determined by HUD to have passed either the 95
percent lease-up, or 95 percent budget authority utilization
requirement for their fiscal year ending in 1999 will be listed with
the Fair Share NOFA under ``funds available'' on the HUD Home Page site
on the Internet's world wide web (http://www.hud.gov). A PHA not listed
must either submit information (following the format of Appendix B of
this NOFA) in its application supportive of its 95 percent lease-up or
95 percent budget authority utilization performance for its fiscal year
ending in 2000, or submit information (following the format of Appendix
B of this NOFA) as part of its application supportive of its contention
that it should have been included among those PHAs HUD listed on the
HUD Home Page as having achieved either a 95 percent lease-up rate or
95 percent budget authority utilization rate for fiscal years ending in
1999. Appendix B of this NOFA indicates the methodology and data
sources used by HUD to calculate the lease-up and budget authority
utilization percentage rates for PHAs with fiscal years ending in 1999.
Any PHA wishing to submit information to the GMC in connection with its
1999 fiscal year or 2000 fiscal year for the purposes described
immediately above (so as to be eligible under category (c) to submit an
application) will be required to use the same methodology and data
sources indicated in Appendix B.
Moving To Work (MTW) agencies that are required to report under the
Section 8 Management Assessment Program (SEMAP) shall be held to the 95
percent lease-up and budget authority utilization requirements
referenced above, except where such an MTW agency provides information
in its application demonstrating to HUD that a lower percentage is the
result of the implementation of specific aspects of its program under
its MTW Agreement with HUD. MTW agencies which are not required to
report under SEMAP must submit a certification with their application
certifying that they are not required to report under SEMAP, and that
they meet the 95 percent lease-up or budget authority utilization
requirements.
(d) The PHA is involved in litigation and HUD determines that the
litigation may seriously impede the ability of the PHA to administer
the vouchers.
(e) A PHA's application that does not comply with the requirements
of 24 CFR 982.102 and this NOFA after the expiration of the 7-calendar
day technical deficiency correction period will be rejected from
processing.
(f) The PHA's application was submitted after the application due
date.
(g) The application was not submitted to the official place of
receipt as indicated in the paragraph entitled ``Address for Submitting
Applications'' at the beginning of this NOFA.
(h) The applicant has been debarred or otherwise disqualified from
providing assistance under the program.
(i) The applicant has failed to achieve a minimum 85 percent
submission rate for housing choice voucher and certificate resident
records to HUD's Multifamily Tenant Characteristics System (MTCS), as
set forth by 24 CFR Part 908 and Notice PIH 98-30, for the period
ending December 1999.

VIII. Findings and Certifications

(A) Paperwork Reduction Act Statement

The Housing Choice Voucher Program (Section 8) information
collection requirements contained in this NOFA have been approved by
the Office of Management and Budget in accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501-3520), and

[[Page 78047]]

assigned OMB control number 2577-0169. An agency may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless the collection displays a valid control number.

(B) Environmental Impact

In accordance with 24 CFR 50.19(b)(11) of the HUD regulations,
tenant-based rental activities under this program are categorically
excluded from the requirements of the National Environmental Policy Act
of 1969 (NEPA) and are not subject to environmental review under the
related laws and authorities. This NOFA provides funding for these
activities under 24 CFR part 982, which does not contain environmental
review provisions because of the categorical exclusion of these
activities from environmental review. Accordingly, under 24 CFR
50.19(c)(5), issuance of this NOFA is also categorically excluded from
environmental review under NEPA.

The Federal Domestic Assistance number for this program is 14.857.

(D) Federalism Impact

Executive Order 13132 (captioned ``Federalism'') prohibits, to the
extent practicable and permitted by law, an agency from promulgating a
regulation that has federalism implications and either imposes
substantial direct compliance costs on State and local governments and
is not required by statute, or preempts State law, unless the relevant
requirements of section 6 of the Executive Order are met. None of the
provisions in this NOFA will have federalism implications and they will
not impose substantial direct compliance costs on State and local
governments or preempt State law within the meaning of the Executive
Order. As a result, the notice is not subject to review under the
Order.

(E) Accountability in the Provision of HUD Assistance

Section 102 of the Department of Housing and Urban Development
Reform Act of 1989 (HUD Reform Act) and the regulations in 24 CFR part
4, subpart A contain a number of provisions that are designed to ensure
greater accountability and integrity in the provision of certain types
of assistance administered by HUD. On January 14, 1992 (57 FR 1942),
HUD published a notice that also provides information on the
implementation of section 102. HUD will comply with the documentation,
public access, and disclosure requirements of section 102 with regard
to the assistance awarded under this NOFA, as follows:
(1) Documentation and Public Access Requirements
HUD will ensure that documentation and other information regarding
each application submitted pursuant to this NOFA are sufficient to
indicate the basis upon which assistance was provided or denied. This
material, including any letters of support, will be made available for
public inspection for a 5-year period beginning not less than 30 days
after the award of the assistance. Material will be made available in
accordance with the Freedom of Information Act (5 U.S.C. 552) and HUD's
implementing regulations at 24 CFR part 15. In addition, HUD will
include the recipients of assistance pursuant to this NOFA in its
Federal Register notice of all recipients of HUD assistance awarded on
a competitive basis.
(2) Disclosures
HUD will make available to the public for 5 years all applicant
disclosure reports (HUD Form 2880) submitted in connection with this
NOFA. Update reports (also Form 2880) will be made available along with
the applicant disclosure reports, but in no case for a period less than
3 years. All reports--both applicant disclosures and updates--will be
made available in accordance with the Freedom of Information Act (5
U.S.C. 552) and HUD's implementing regulations at 24 CFR part 15.

(F) Section 103 HUD Reform Act

HUD will comply with section 103 of the Department of Housing and
Urban Development Reform Act of 1989 and HUD's implementing regulations
in subpart B of 24 CFR part 4 with regard to the funding competition
announced today. These requirements continue to apply until the
announcement of the selection of successful applicants. HUD employees
involved in the review of applications and in the making of funding
decisions are limited by section 103 from providing advance information
to any person (other than an authorized employee of HUD) concerning
funding decisions, or from otherwise giving any applicant an unfair
competitive advantage. Persons who apply for assistance in this
competition should confine their inquiries to the subject areas
permitted under section 103 and subpart B of 24 CFR part 4.
Applicants or employees who have ethics related questions should
contact the HUD Office of Ethics at (202) 708-3815. (This is not a
toll-free number.) For HUD employees who have specific program
questions, such as whether particular subject matter can be discussed
with persons outside HUD, the employee should contact the appropriate
Field Office Counsel.

(G) Prohibition Against Lobbying Activities

Applicants for funding under this NOFA are subject to the
provisions of section 319 of the Department of Interior and Related
Agencies Appropriation Act for Fiscal Year 1991 (31 U.S.C. 1352) (the
Byrd Amendment) and to the provisions of the Lobbying Disclosure Act of
1995 (Pub. L. 104-65; approved December 19, 1995).
The Byrd Amendment, which is implemented in regulations at 24 CFR
part 87, prohibits applicants for Federal contracts and grants from
using appropriated funds to attempt to influence Federal executive or
legislative officers or employees in connection with obtaining such
assistance, or with its extension, continuation, renewal, amendment, or
modification. The Byrd Amendment applies to the funds that are the
subject of this NOFA. Therefore, applicants must file a certification
stating that they have not made and will not make any prohibited
payments and, if any payments or agreement to make payments of
nonappropriated funds for these purposes have been made, a form SF-LLL
disclosing such payments must be submitted.
The Lobbying Disclosure Act of 1995 (Pub. L. 104-65; approved
December 19, 1995), which repealed section 112 of the HUD Reform Act,
requires all persons and entities who lobby covered executive or
legislative branch officials to register with the Secretary of the
Senate and the Clerk of the House of Representatives and file reports
concerning their lobbying activities.

Dated: December 4, 2000.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.

Appendix A

Housing Choice Vouchers--FY 2001 Fair Share Allocations
------------------------------------------------------------------------
Allocation area Dollars Units
------------------------------------------------------------------------
Alabama.......................................... 3,832,512 986
Alaska & Washington.............................. 8,490,178 1,466
Arizona.......................................... 5,674,314 1,058
Arkansas......................................... 2,259,847 593
California....................................... 80,985,425 11,176
Colorado......................................... 6,109,188 1,008

[[Page 78048]]

Connecticut...................................... 5,822,038 891
Delaware......................................... 872,723 149
District of Columbia & Maryland.................. 9,073,520 1,556
Florida.......................................... 18,168,761 3,295
Georgia.......................................... 9,376,338 1,762
Hawaii & Pacific Islands......................... 2,952,114 407
Idaho............................................ 1,069,276 262
Illinois......................................... 21,352,392 3,626
Indiana.......................................... 6,143,219 1,353
Iowa............................................. 3,311,913 803
Kansas........................................... 2,486,578 626
Kentucky......................................... 3,831,993 1,015
Louisiana........................................ 5,095,557 1,283
Maine............................................ 1,671,828 336
Massachusetts.................................... 14,279,752 2,112
Michigan......................................... 13,632,265 2,651
Minnesota........................................ 5,488,976 1,043
Mississippi...................................... 2,485,561 672
Missouri......................................... 5,662,051 1,337
Montana.......................................... 1,187,042 245
Nebraska......................................... 1,905,039 445
Nevada........................................... 2,671,352 442
New Hampshire.................................... 1,495,658 243
New Jersey....................................... 16,581,017 2,210
New Mexico....................................... 1,678,279 383
New York......................................... 71,902,793 9,830
North Carolina................................... 8,022,284 1,664
North Dakota..................................... 721,896 176
Ohio............................................. 15,518,163 3,266
Oklahoma......................................... 3,079,623 792
Oregon........................................... 4,588,121 948
Pennsylvania..................................... 18,177,238 3,558
Puerto Rico & Virgin Islands..................... 3,726,802 1,005
Rhode Island..................................... 2,033,286 357
South Carolina................................... 3,520,083 815
South Dakota..................................... 936,014 215
Tennessee........................................ 5,247,465 1,229
Texas............................................ 25,394,562 4,955
Utah............................................. 2,095,813 398
Vermont.......................................... 1,019,047 179
Virginia......................................... 6,958,322 1,475
West Virginia.................................... 1,778,802 492
Wisconsin........................................ 7,908,238 1,655
Wyoming.......................................... 439,954 105
US Total*.................................. 448,715,212 78,475
------------------------------------------------------------------------
* Budget authority was reduced from $452,907,000 to $448,715,212 in
order to correct the underfunding of four PHAs under the FY 2000 Fair
Share NOFA due to a HUD error (see Section II(C)(3), Underfunding
Corrections, of this NOFA). Vouchers have likewise been reduced from
79,000 to 78,475 in order to first fund the 525 vouchers that should
have been funded for the four PHAs under the FY 2000 Fair Share NOFA.
The four PHAs were located in the Alaska/Washington, Massachusetts,
Ohio, and Oregon fair share allocation areas, so the dollar/voucher
reductions were effectuated for these allocation areas consistent with
the dollars and vouchers per PHA cited in Section II(C)(3) of this
NOFA.

Appendix B

Methodology for Determining Lease-Up and Budget Authority
Utilization Percentage Rates

Using data from the HUDCAPS system, HUD determined which PHAs met
the 95% budget authority utilization or 95% lease-up criteria. The data
used in the determination was based on PHA fiscal years ending in 1999.
The budget authority utilization and lease-up rates were determined
based upon the methodology indicated below.

Budget Authority Utilization

Percentage of budget authority utilization was determined by
comparing the total contributions required to the annual budget
authority (ABA) available for the PHA 1999 year combining the
certificate and voucher programs.
Total contributions required were determined based on the combined
actual costs approved by HUD on the form HUD-52681, Year End Settlement
Statement. The components which make up the total contributions
required are the total of housing assistance payments, ongoing
administrative fees earned, hard to house fees earned, and IPA audit
costs. From this total any interest earned on administrative fees is
subtracted. The net amount is the total contributions required.
ABA is the prorated portion applicable to the PHA 1999 year for
each funding increment which had an active contract term during all or
a portion of the PHA year.
Example. PHA ABC Fiscal year 10/1/98 through 9/30/99.

HUD 52681 Approved Data:
HAP..................................................... $2,500,000
Administrative Fee...................................... 250,000
Hard to House Fee....................................... 1,000
Audit................................................... 2,000
Total................................................... 2,753,000
Interest earned on administrative fee................... (2,500)
-------------
Total contributions required.......................... 2,750,500

Calculation of Annual Budget Authority
----------------------------------------------------------------------------------------------------------------
Increments Contract term Total BA ABA
----------------------------------------------------------------------------------------------------------------
001.......................................................... 11/01/98-10/31/99 $1,300,000 $1,191,667
002.......................................................... 01/01/99-12/31/99 1,200,000 900,000
003.......................................................... 04/01/99-03/31/00 950,000 475,000
004.......................................................... 07/01/99-06/30/00 1,500,000 375,000
-------------------------
Totals................................................. ....................... 4,950,000 2,941,667
----------------------------------------------------------------------------------------------------------------

[[Page 78049]]

Budget Authority Utilization

Total contributions required divided by $2,750,000
Annual budget authority equals $2,941,667
Budget Authority Utilization--93.5%

Lease-up Rate

The lease-up rate was determined by comparing the reserved units
(funding increments active as of the end of the PHA 1999 year) to the
unit months leased (divided by 12) reported on the combined HUD 52681,
Year End Settlement Statement(s) for 1999.
Active funding increments awarded by HUD for special purposes such
as litigation, relocation/replacement, housing conversions. Welfare to
Work, and new units awarded to the PHA during the last twelve months
were excluded from the reserved units as the Department recognizes that
many of these unit allocations have special requirements which require
extended periods of time to achieve lease-up.
Example.

------------------------------------------------------------------------
Increments Contract term Units
------------------------------------------------------------------------
001....................................... 11/01/98-10/31/99 242
002....................................... 01/01/99-12/31/99 224
003....................................... 04/01/99-03/31/00 178
004....................................... 07/01/99-06/30/00 280
-------
Totals.................................. .................... 924
Increment 003 litigation........................................ (178)
-------
Adjusted contract units....................................... 746
------------------------------------------------------------------------

Unit months leased reported by PHA--8,726
Divided by 12--727
Units Leased--727

Lease-up Rate

Units leased--727
Divided by adjusted contract units equals--746
Lease-up Rate--97.5%
[FR Doc. 00-31652 Filed 12-12-00; 8:45 am]
BILLING CODE 4210-33-P