Program Overview Homeless Assistance Programs is to fund projects that will fill gaps in
locally developed Continuum of Care systems to assist homeless persons
move to self-sufficiency and permanent housing.
    Available Funds. Approximately $750 million.
    Eligible Applicants. The chart in the Appendix to this program
section of this SuperNOFA identifies the eligible applicants for each
of the three programs under the Continuum of Care.
    Application Deadline. June 2, 1999.
    Match. Yes.

Additional Information

    If you are interested in applying for funding under any of the
Continuum of Care Homeless Assistance programs, please review carefully
the General Section of the SuperNOFA and the following additional
information.

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

    Application Due Date. Your completed application (an original
containing the signed documentation and two copies) is due on or before
12:00 midnight, Eastern time, on June 2, 1999 to the addresses shown
below. See the General Section of this SuperNOFA for specific
procedures that you must follow for the form of application submissions
(e.g., mailed applications, express mail, overnight delivery, or hand
carried).
    Addresses for Submitting Applications. To HUD Headquarters. Submit
your original completed application (the application with the original
signed documentation) to: Room 7270, Office of Community Planning and
Development, Department of Housing and Urban Development, 451 Seventh
Street, SW, Washington, DC 20410, Attention: Continuum of Care
Programs.
    To the Appropriate CPD Field Office. Also submit two copies of your
completed application to the Community Planning and Development
Division of the appropriate HUD Field Office for your jurisdiction. The
HUD Field Office must receive the two copies of your application by the
deadline date as well. The determination, however, that your
application was received on time will be made solely on receipt of the
application at HUD Headquarters in Washington. Reviews will be based
upon the contents of the application submitted to HUD Headquarters.
    For Application Kits. For an application kit, please call the
SuperNOFA Information Center at 1-800-HUD-8929 (voice) or 1-800-483-
2209 (TTY), or you may download an application by Internet at http://
www.HUD.gov.
    For Further Information. For answers to your questions, you may
call the HUD Field Office serving your area, at the telephone number
shown in the application kit for this program, or you may contact the
Community Connections Information Center at 1-800-998-9999 (voice) or
1-800-483-2209 (TTY) or by Internet at: http://www.comcon.org/
ccprog.html.
    For Technical Assistance. Before the application deadline, HUD
staff will be available to provide you with general guidance. HUD
staff, however, cannot provide you with guidance in actually preparing
your application. HUD Field Office staff also will be available to help
you identify organizations in your community that are involved in
developing the Continuum of Care system and, in the case of renewals,
to determine the HUD final year amount (e.g., leasing, supportive
services and operations for SHP, and rental assistance for S+C).
Following conditional selection of applications, HUD staff will be
available to assist selected applicants in clarifying or confirming
information that is a prerequisite to the offer of a grant agreement or
Annual Contributions Contract by HUD. However, between the application
deadline and the announcement of conditional selections, HUD will
accept no information that would improve the substantive quality of
your application pertinent to HUD's funding decision.

II. Amount Allocated

    Approximately $750 million is available for this competition in FY
1999. Any unobligated funds from previous competitions or additional
funds that may become available as a result of deobligations or
recaptures from previous awards may be used in addition to 1999
appropriations to fund applications submitted in response to this
program section of this SuperNOFA. The funds available for the
Continuum of Care program can be used under any of three programs that
can assist in creating community systems for combating homelessness.
The three programs are:
    (1) Supportive Housing;
    (2) Shelter Plus Care; and
    (3) Section 8 Moderate Rehabilitation for Single Room Occupancy
Dwellings for Homeless Individuals.
    The chart in the Appendix to this program section of this SuperNOFA
summarizes key aspects of the programs, and also provides the citations
for the statutes and regulations that authorize these programs. The
regulations listed in the chart provide more detailed descriptions of
each of the programs.
    As in previous funding availability announcements for the Continuum
of Care Homeless Assistance Programs, HUD will not specify amounts for
each of the three programs this year. Instead, the distribution of
funds among the three programs will depend largely on locally
determined priorities and overall demand. Local priorities
notwithstanding, due to recent Congressional action, not less than 30
percent of this year's total homeless assistance appropriation of $975
million must be used for permanent housing projects. Pursuant to the
provisions of the FY 1998 NOFA, up to $60 million of the FY 1999
appropriation may be made available under the FY 1998 NOFA. Permanent
housing projects funded with that $60 million will be counted toward
the 30 percent requirement. (See Sections V(A)(4)(b) and V(A)(7) of
this program section of the SuperNOFA for additional information.)

III. Program Description; Eligible Applicants; Eligible Activities

(A) Program Description

    (1) Developing Continuum of Care Systems. The purpose of the
Continuum of Care Homeless Assistance Programs is to fund projects that
will fill gaps in locally developed Continuum of Care systems to assist
homeless persons move to self-sufficiency and permanent housing. The
process of developing a Continuum of Care system to assist homeless
persons is part of the community's larger effort of developing a
Consolidated Plan. For a community to successfully address its often
complex and interrelated problems, including homelessness, the
community must marshall its varied resources--community and economic
development resources, social service resources, housing and homeless
assistance resources--and use them in a coordinated and effective
manner. The Consolidated Plan, including the Analysis of Impediments to
Fair Housing Choice, serves as the vehicle for a community to
comprehensively

[[Page 9826]]

identify each of its needs and to coordinate a plan of action for
addressing them.
    A Continuum of Care system consists of four basic components:
    (a) A system of outreach and assessment for determining the needs
and conditions of an individual or family who is homeless;
    (b) Emergency shelters with appropriate supportive services to help
ensure that homeless individuals and families receive adequate
emergency shelter and referral to necessary service providers or
housing finders;
    (c) Transitional housing with appropriate supportive services to
help those homeless individuals and families who are not prepared to
make the transition to permanent housing and independent living; and
    (d) Permanent housing, or permanent supportive housing, to help
meet the long-term needs of homeless individuals and families.
    A Continuum of Care system is developed through a community-wide or
region-wide process involving nonprofit organizations (including those
representing persons with disabilities), government agencies, other
homeless providers, housing developers and service providers, private
foundations, neighborhood groups, and homeless or formerly homeless
persons. A Continuum of Care system should address the specific needs
of each homeless subpopulation: the jobless, veterans, persons with
serious mental illnesses, persons with substance abuse issues, persons
with HIV/AIDS, persons with multiple diagnoses, victims of domestic
violence, youth, and any others. The term ``multiple diagnoses'' may
include diagnoses of multiple physical disabilities or multiple mental
disabilities or a combination of these two types.
    As an applicant, the community process you use in developing a
Continuum of Care system should include interested veteran service
organizations. To ensure that the Continuum of Care system addresses
the needs of homeless veterans, it is particularly important that you
involve veteran service organizations with specific experience in
serving homeless veterans. In addition, given the large number of
youths aging out of the Foster Care system each year, you should seek
to include persons knowledgeable on this issue in the planning process
and ensure that your continuum of Care system adequately addresses this
need.
    Your application will be given a high score under the Continuum of
Care scoring factors if the application demonstrates the achievement of
two basic goals:
    <bullet> That you have provided maximum participation by non-profit
providers of housing and services; homeless and formerly homeless
persons; state and local governments and agencies; veteran service
organizations; organizations representing persons with disabilities;
the private sector; housing developers; foundations and other community
organizations.
    <bullet> That you have created, maintained and built upon a
community-wide inventory of housing and services for homeless families
and individuals; identified the full spectrum of needs of homeless
families and individuals; and coordinated efforts to obtain resources,
particularly resources sought through this program section of the
SuperNOFA, to fill gaps between the current inventory and existing
needs. This coordinated effort must appropriately address all aspects
of the continuum, especially permanent housing.
    In deciding the geographic area you will cover in your Continuum of
Care strategy, you should be aware that the single most important
factor in being awarded funding under this competition will be the
strength of your Continuum of Care strategy when measured against the
Continuum of Care rating factors described in this SuperNOFA. When you
determine what jurisdictions to include in your Continuum of Care
strategy area, include only those jurisdictions that are involved in
the development and implementation of the Continuum of Care strategy.
    The more jurisdictions you include in the Continuum of Care
strategy area, the larger the pro rata need share that will be
allocated to the strategy area (as described in Section V(A)(4) of this
program section of the SuperNOFA). However, it would be a mistake to
include jurisdictions that are not fully involved in the development
and implementation of the Continuum of Care strategy since this would
adversely affect the Continuum of Care score. If you are a rural
county, you may wish to consider working with larger groups of
contiguous counties to develop a region-wide or multi-county Continuum
of Care strategy covering the combined service areas of these counties.
    Since the basic concept of a Continuum of Care strategy is to
create a single, coordinated, inclusive homeless assistance system for
an area, the areas covered by Continuum of Care strategies should not
overlap. If your Continuum of Care strategy geographically overlaps to
the extent that they are essentially competing with each other,
projects in the applications/Continuum of Care that receive the highest
score out of the possible 60 points for Continuum of Care will be
eligible for up to 40 points under Need. Projects in the competing
applications/Continuum of Care with the less effective Continuum of
Care strategies will be eligible for only 10 points under Need. In no
case will the same geographical area be used more than one time in
assigning Need points. The local HUD Field Office can help you
determine if any of the areas proposed for inclusion by your Continuum
of Care system is also likely to be claimed under another Continuum of
Care system in this competition.
    (2) Prioritizing. HUD's policy is that decisions about priority are
best made through a locally-driven process and are key to the ultimate
goal of reducing homelessness. Again this year, you must list all
projects proposed for funding under this program section of the
SuperNOFA in priority order from the highest priority to the lowest.
Generally, this priority order will mean, for example, that if HUD has
funds available only to award 8 of 10 proposed projects, then it will
award funding to the first eight eligible projects listed, except as
may be necessary to achieve the new 30 percent overall permanent
housing requirement--in which case higher priority non-permanent
housing projects may be skipped over in order to fund lower priority
permanent housing projects. You should give non-profit organizations an
opportunity to participate in establishing these priorities.
    In order to promote permanent housing, a special incentive is being
provided to continuum of care systems that place an eligible, new
permanent housing project in the number one priority slot on the
priority list. See Section V(A)(4)(b) of this program section of the
SuperNOFA for a description of this incentive.
    HUD will use this priority list to award up to 40 points per
project under the ``Need'' scoring factors. Higher priority projects
will receive more points under Need than lower priority projects. A
project priority chart is included in the application kit and you
should complete and submit it. If you do not submit clear project
priority designations for the continuum, or if HUD, at its sole
discretion, cannot determine priority designations, then HUD will give
all projects the lowest score for Need.
    Project renewals. If your Supportive Housing, Supportive Housing
Demonstration Program, SAFAH, or Shelter Plus Care grants will be
expiring in calendar year 2000, you must apply

[[Page 9827]]

under this Continuum of Care program section of the SuperNOFA to get
continued funding.
    Your local needs analysis process must consider the need to
continue funding for projects expiring in calendar year 2000, and you
must assign a priority to those projects requesting renewal. HUD will
not fund renewals out of order on the priority list except as may be
necessary to achieve the new 30 percent overall permanent housing
requirement. HUD reserves the authority to use FY 2000 funds, if
available, to conditionally select lower-rated eligible SHP renewal
projects that are assigned 40 need points in continuum of care systems
that would not otherwise receive funding.
    Regardless of the priority assigned to expiring projects, you
should fully consider how persons currently being served by those
projects will continue to be served, and address this issue in your
gaps analysis. In previous competitions, some renewal projects that
were not assigned top priority by a locality did not receive funding.
To the extent your community desires to have such projects renewed, you
should give them the top priorities on the priority projects listing in
the application. Since renewal projects receive no special
consideration during the review, it is important that they meet minimum
project eligibility, capacity, and quality standards identified in this
program section of the SuperNOFA or they will be rejected.
    For the renewal of a Supportive Housing Program project, Supportive
Housing Demonstration Program project or SAFAH project, you may request
funding for one (1), two (2) or three (3) years. The amount of this
request can be up to the total of HUD grant funds for leasing,
operations, and supportive services approved for the final year of the
expiring grant's term. For the renewal of a Shelter Plus Care project,
the grant term is fixed at five (5) years as required by statute. You
may request up to the amount determined by multiplying the number of
units under lease at the time of application for renewal funding under
this SuperNOFA by the applicable current Fair Market Rent(s) by 60
months. While full funding of existing grants may be requested, there
is no guarantee that the entire amount will be awarded. As is the case
with SHP, HUD will recapture Shelter Plus Care grant funds remaining
unspent at the end of the original grant period when it renews a grant.
    This program section of the SuperNOFA is not applicable to the
renewal of funding under the SRO program. For further guidance on SRO
renewals, please contact your local HUD Field Office.
    As a project applicant, you are eligible to apply for renewal of a
grant only if you have executed a grant agreement for the project
directly with HUD. If you are a project sponsor or subrecipient who has
not signed such an agreement, you are not eligible to apply for renewal
of these projects. HUD will reject applications for renewal submitted
by ineligible applicants. If you have questions about your eligibility
to apply for project renewal, contact the local HUD field office. To be
considered an applicant when applying as part of a consolidated
application, you must submit an originally signed HUD Form SF-424 and
the necessary certifications and assurances.

(B) Eligible Applicants

    See Appendix.

(C) Eligible Activities

    See Appendix.

IV. Program Requirements

(A) Statutory and Regulatory Requirements

    (1) SRO Program. As an applicant, you need to know that the
following limitations apply to the Section 8 SRO program:
    <bullet> Under section 8(e)(2) of the United States Housing Act of
1937, no single project may contain more than 100 assisted units;
    <bullet> Under 24 CFR 882.802, applicants that are private
nonprofit organizations must subcontract with a Public Housing
Authority to administer the SRO assistance;
    <bullet> Under section 8(e)(2) of the United States Housing Act of
1937 and 24 CFR 882.802, rehabilitation must involve a minimum
expenditure of $3000 for a unit, including its prorated share of work
to be accomplished on common areas or systems, to upgrade conditions to
comply with the Housing Quality Standards.
    <bullet> Under section 441(e) of the McKinney Act and 24 CFR
882.805(d)(1), HUD publishes the SRO per unit rehabilitation cost limit
each year to take into account changes in construction costs. This cost
limitation applies to rehabilitation that is compensated for in a
Housing Assistance Payments Contract. For purposes of Fiscal Year 1999
funding, the cost limitation is raised from $17,200 to $17,500 per unit
to take into account increases in construction costs during the past
12-month period.
    (2) Shelter Plus Care/Section 8 SRO Component. With regard to the
SRO component of the Shelter Plus Care program, if you are a State or a
unit of general local government, you must subcontract with a Public
Housing Authority to administer the Shelter Plus Care assistance. Also
with regard to this component, no single project may contain more than
100 units.

(B) Match

    You must match Supportive Housing Program funds provided for
acquisition, rehabilitation, and new construction with an equal amount
of funds from other sources. In addition, in this year's competition,
you must match by 25% all funding for supportive services. The cash
source may be you, the Federal Government, State and local governments,
or private resources. You must match rental assistance provided through
the Shelter Plus Care Program in the aggregate with supportive
services.

(C) Linking Supportive Housing Programs and Americorps

    Applicants for the Supportive Housing Program are encouraged to
link their proposed projects with AmeriCorps, a national service
program engaging thousands of Americans on a full or part-time basis to
help communities address their toughest challenges, while earning
support for college, graduate school, or job training. For information
about AmeriCorps SHP partnerships, call the Corporation for National
Service at (202) 606-5000, extension 486.

(D) Timeliness Standards

    As an applicant, you are expected to initiate your approved
projects promptly. HUD may take action if you fail to satisfy certain
timeliness standards:
    (1) Supportive Housing Program.
    <bullet> HUD will deobligate SHP funds if you have not demonstrated
site control within one (1) year after you were initially notified of
the grant award, as provided in 24 CFR 583.320(a), subject to the
exceptions noted in that regulation.
    <bullet> Except where HUD finds that delay was due to factors
beyond your control, HUD may deobligate SHP funds if you do not meet
the following additional timeliness standards:

--You must begin construction activities within eighteen (18) months
after initial notification of your grant award and complete them within
thirty-six (36) months after that notification.
--For activities that cannot begin until construction activities are
completed, such as supportive service or

[[Page 9828]]

operating activities that will be conducted within the building being
rehabilitated or newly constructed, you must begin these activities
within three (3) months after you complete construction.
--You must begin all activities that may proceed independent of
construction activities within twelve (12) months after initial
notification of your grant award.

    (2) Shelter Plus Care Program Components Except SRO Component.
Except where HUD finds that delay was due to factors beyond your
control, HUD will deobligate S+C funds if you do not meet the following
timeliness standards:
    <bullet> For Tenant-based Rental Assistance, for Sponsor-based
Rental Assistance, and for Project-based Rental Assistance without
rehabilitation, you must start the rental assistance within twelve (12)
months of the initial announcement of the grant award.
    <bullet> For Project-based Rental Assistance with rehabilitation,
you must complete the rehabilitation within twelve (12) months of
initial notification of the grant award.
    (3) SRO Program and SRO Component of the Shelter Plus Care Program.
    For projects carried out under the SRO program and the SRO
component of the S+C program, the rehabilitation work must be completed
and the Housing Assistance Payments contract executed within twelve
(12) months of execution of the Annual Contributions Contract. HUD may
reduce the number of units or the amount of the annual contribution
commitment if, in HUD's determination, the Public Housing Authority
fails to demonstrate a good faith effort to adhere to this schedule.

V. Application Selection Process

(A) Review, Rating and Conditional Selection

    HUD will use the same review, rating, and conditional selection
process for all three programs (S+C, SRO, and SHP). The standard
factors for award identified in the General Section of this SuperNOFA
have been modified in this program section as described below. Only the
factors described in this program section--Continuum of Care and Need--
will be used to assign points. To review and rate applications, HUD may
establish panels.To obtain certain expertise and outside points of
view, including views from other Federal agencies, these panels may
include persons not currently employed by HUD. Two types of reviews
will be conducted. Paragraphs (1) and (2) below describe threshold
reviews and paragraphs (3) and (4) describe factors--Continuum of Care
and Need--that will be used to assign points. Up to 104 points
(including bonus points and points for the court-ordered consideration
described in Section III(C) (1) and (2) of the General Section of the
SuperNOFA) will be assigned using these factors.
    (1) Applicant and sponsor eligibility and capacity. HUD will review
your capacity as the applicant and project sponsor to ensure the
eligibility and capacity standards in this section are met. If HUD
determines these standards are not met, the project will be rejected
from the competition. The eligibility and capacity standards are:
    <bullet> You must be eligible to apply for the specific program;
    <bullet> You must demonstrate ability to carry out the project(s).
With respect to each proposed project, this means that in addition to
knowledge of and experience with homelessness in general, the
organization carrying out the project, its employees, or its partners,
must have the necessary experience and knowledge to carry out the
specific activities proposed, such as housing development, housing
management, and service delivery;
    <bullet> If you or the project sponsors are current or past
recipients of assistance under a HUD McKinney Act program or the HUD
Single Family Property Disposition Homeless Program, there must have
been no delay in implementing projects exceeding applicable program
timeliness standards that HUD determines is within your or the project
sponsor's control, unresolved HUD finding, or outstanding audit finding
of a material nature regarding the administration of HUD McKinney Act
programs or the HUD Single Family Property Disposition Homeless
Program; and
    <bullet> You and the project sponsors must be in compliance with
applicable civil rights laws and Executive Orders, and must meet the
threshold requirements of Section II(B) of the General Section of the
SuperNOFA.
    (2) Project eligibility and quality. HUD will review projects to
determine if they meet the following eligibility and quality standards.
If HUD determines the following standards are not met by a specific
project or activity, the project or activity will be rejected from the
competition.
    <bullet> The population to be served must meet the eligibility
requirements of the specific program, as described in the application
instructions;
    <bullet> At least one of the activity(ies) for which assistance is
requested must be eligible under the specific program, as described in
the program regulations;
    <bullet> The housing and services proposed must be appropriate to
the needs of the persons to be served. HUD may find a project to be
inappropriate if:

--The type and scale of the housing or services clearly does not fit
the needs of the proposed participants (e.g., housing homeless families
with children in the same space as homeless individuals, or separating
members of the same family, without an acceptable rationale provided);
--Participant safety is not ensured;
--The housing or services are clearly designed to principally meet
emergency needs rather than helping participants achieve self-
sufficiency;
--Transportation and community amenities are not available and
accessible; or
--Housing accessibility for persons with disabilities is not provided
as required by applicable laws;

    <bullet> The project must be cost-effective in HUD's opinion,
including costs associated with construction, operations, and
administration, with such costs not deviating substantially from the
norm in that locale for the type of structure or kind of activity;
    <bullet> Supportive services only projects, and all others, must
show how participants will be helped to access permanent housing and
achieve self-sufficiency;
    <bullet> For the Section 8 SRO program, at least 25 percent of the
units to be assisted at any one site must be vacant at the time of
application; and
    <bullet> For those projects proposed under the SHP innovative
category: Whether or not a project is considered innovative will be
determined on the basis that the particular approach proposed is new
within its geographic area, and can be replicated.
    (3) Continuum of Care. HUD will award up to 60 points as follows:
    (a) Process and Strategy. HUD will award up to 30 points based on
the extent to which your application demonstrates:
    <bullet> The existence of a coordinated and inclusive community
process, including organizational structure(s), for developing and
implementing a Continuum of Care strategy which includes nonprofit
organizations (such as veterans service organizations, organizations
representing persons with disabilities, and other groups serving
homeless persons), State and local governmental agencies, other
homeless providers, housing developers and service providers, private
foundations, local businesses and the banking

[[Page 9829]]

community, neighborhood groups, and homeless or formerly homeless
persons; and
    <bullet> That a well-defined and comprehensive strategy has been
developed which addresses the components of a Continuum of Care system
(i.e., outreach, intake, and assessment; emergency shelter;
transitional housing; permanent and permanent supportive housing) and
that strategy has been designed to serve all homeless subpopulations in
the community (e.g., seriously mentally ill, persons with multiple
diagnoses, veterans, persons with HIV/AIDS), including those persons
living in emergency shelters, supportive housing for homeless persons,
or in places not designed for, or ordinarily used as, a regular
sleeping accommodation for human beings.
    (b) Gaps and Priorities. HUD will award up to 20 points based on
the extent to which your application:
    <bullet> Describes the gap analysis performed, uses reliable
information and sources that are presented completely and accurately,
and establishes the relative priority of homeless needs identified in
the Continuum of Care strategy; and
    <bullet> Proposes projects that are consistent with the priority
analysis described in the Continuum of Care strategy, describes a fair
project selection process, explains how gaps identified through the
analysis are being addressed, and correctly completes the priority
chart.
    When HUD reviews a community's Continuum of Care to determine the
points to assign, HUD will consider whether the community took its
renewal needs into account in preparing its project priority list. (See
discussion on renewals in Section III(A)(2) of this NOFA.)
    (c) Supplemental Resources. HUD will award up to 10 points based on
the extent to which your application demonstrates leveraging of funds
requested under this program section of the SuperNOFA with other
resources, including private, other public, and mainstream services and
housing programs.
    (d) EZ/EC bonus points. As provided for in Section III(C)(1) of the
General Section of this SuperNOFA, HUD will add a bonus of up to 2
points to the Continuum of Care score when: (1) at least one proposed
homeless assistance project will be located within the boundaries and/
or will principally serve the residents of a high performing federal
Empowerment Zone, Enterprise Community or Enhanced Enterprise Community
(collectively ``EZ/EC''); and (2) if priority placement will be given
by the project(s) to homeless persons living on the streets or in
shelters within the EZ/EC, or whose last known address was within the
high performing EZ/EC. In addition, and in order for a Continuum of
Care system to receive any of the bonus points, the applicant must
specifically state how it meets the requirements for the two EZ/EC
bonus points, and provide a narrative describing the extent of the
linkages and coordination between proposed projects and the EZ/EC.
Examples of such coordination include having common board or committee
membership (EZ/EC and Continuum of Care), and having EZ/EC resources
directed toward Continuum of Care activities. The greater the extent of
EZ/EC involvement in and coordination with the implementation strategy
for the Continuum of Care system and projects, the greater the
likelihood that bonus points will be awarded.
    (e) Court-ordered consideration. Section III(C)(2) of the General
Section is applicable to this program.
    (4) Need. HUD will award up to 40 points for need. There is a
three-step approach to determining the need scores to be awarded to
projects:
    (a) Determining relative need: To determine the homeless assistance
need of a particular jurisdiction, HUD will use nationally available
data, including the following factors as used in the Emergency Shelter
Grants program: data on poverty, housing overcrowding, population, age
of housing, and growth lag. Applying those factors to a particular
jurisdiction provides an estimate of the relative need index for that
jurisdiction compared to other jurisdictions applying for assistance
under this program section of the SuperNOFA.
    (b) Applying relative need: HUD will then apply that relative need
index to the total amount of funding estimated to be available under
this program section of the SuperNOFA to determine a jurisdiction's pro
rata need. However, in order to promote permanent housing for the
homeless, if a continuum of care's number one priority project
qualifies as an eligible, new permanent housing project, then the full
amount of that project's eligible activities, up to $250,000, will be
added to the final pro rata need amount for the continuum. HUD also
reserves the right to adjust pro rata need, if necessary, to address
the issue of project renewals.
    (c) Awarding need points to projects: Once the pro rata need is
established, it is applied against the priority project list in the
application. Starting from the highest priority project, HUD proceeds
down the list to award need points to each project. An eligible project
will receive the full 40 points for need if at least one half of its
requested amount falls within the pro rata need amount for that
Continuum of Care (COC). Thereafter, HUD proceeds further down the
priority project list and awards 20 points for need to each project if
at least one half of its requested amount falls within the ``second
tier'' of pro rata need amount for that Continuum of Care (COC). The
``second tier'' is the amount between the pro rata need and twice the
pro rata need for the COC. Remaining projects each receive 10 points.
If projects are not prioritized for the continuum, then all projects
will receive 10 points for Need.
    In the case of competing applications from a single jurisdiction or
service area, projects in the application that received the highest
score out of the possible 60 points for Continuum of Care are eligible
for up to 40 points under Need. Projects in the competing applications
with lower Continuum of Care scores are eligible for only 10 points
under Need.
    (5) Ranking. HUD will add the score for Continuum of Care to the
Need score in order to obtain a total score for each project. The
projects will then be ranked from highest to lowest according to the
total combined score.
    (6) Conditional Selection and Adjustments to Funding.
    (a) Conditional Selection. Whether a project is conditionally
selected, as described in Section V(B) below, will depend on its
overall ranking compared to others, except that HUD reserves the right
to select lower rated eligible projects in order to meet the new 30
percent overall permanent housing requirement.
    When insufficient funds remain to fund all projects having the same
total score, HUD will first fund permanent housing projects if
necessary to achieve the 30 percent overall permanent housing
requirement. HUD will then break ties among the remaining projects with
the same total score by comparing scores received by the projects for
each of the following scoring factors, in the order shown: Need,
Overall Continuum of Care (COC) score, COC Process and Strategy, COC
Gaps and Priorities, and COC Supplemental Resources. The final tie-
breaking factor is the priority number of the competing projects on the
applicable COC priority list(s).
    (b) Adjustments to Funding. The Secretary of HUD has determined
that geographic diversity is appropriate to carrying out homeless
assistance programs in an effective manner. HUD believes that
geographic diversity can be

[[Page 9830]]

achieved best by awarding grants to as many COCs as possible. To this
end, in instances where any of the 50 States does not have at least one
funded COC, HUD reserves the right to fund eligible project(s)
receiving 40 Need points in the COC with the highest total score in
that State. In the case of two or more COCs with the same total score,
HUD will use the tie-breaking rules described above. In addition, if
the highest priority project passing threshold requirements within a
COC fails to meet the criteria for receiving 40 Need points, HUD
reserves the right to reduce the total requested amount for that
project in order to allow it to qualify for 40 Need points. HUD may
otherwise adjust funding of applications in accordance with the
provisions of Section III(E) of the General Section of the SuperNOFA.
In addition, HUD reserves the right to ensure that a project that is
applying for, and eligible for, selection under this competition is not
awarded funds that duplicate activities.
    (7) Additional selection considerations. HUD also will apply the
limitations on funding described below in making conditional
selections.
    In accordance with the appropriation for homeless assistance grants
in the Fiscal Year 1999 Appropriation Act for HUD (Pub. L. 105-276,
approved October 21, 1998), HUD will use not less than 30 percent of
the total FY 1999 homeless grant assistance appropriation to fund
projects that meet the definition of permanent housing. Projects
meeting the definition of permanent housing are: (1) New Shelter Plus
Care projects; (2) Shelter Plus Care renewal projects; (3) Section 8
SRO projects; and (4) new and renewal projects designated as permanent
housing for homeless persons with disabilities under the Supportive
Housing Program. Since the FY 1999 homeless grant assistance
appropriation is $975 million, not less than $292.5 million must be
awarded to permanent housing projects unless an insufficient number of
approvable permanent housing projects is submitted in which case HUD
will carry over the amount of the permanent housing funding shortfall
to next year's competition. This permanent housing funding requirement
may result in higher scoring non-permanent housing projects being
skipped over in order to fund lower scoring permanent housing projects
or, within a continuum, higher priority non-permanent housing projects
being skipped over in order to fund lower priority permanent housing
projects.
    In accordance with section 429 of the McKinney Act, HUD will award
Supportive Housing funds as follows: not less than 25 percent for
projects that primarily serve homeless families with children; not less
than 25 percent for projects that primarily serve homeless persons with
disabilities; and not less than 10 percent for supportive services not
provided in conjunction with supportive housing. After projects are
rated and ranked, based on the factors described above, HUD will
determine if the conditionally selected projects achieve these minimum
percentages. If not, HUD will skip higher-ranked projects in order to
achieve these minimum percentages.
    In accordance with section 463(a) of the McKinney Act, as amended
by the Housing and Community Development Act of 1992, at least 10
percent of Shelter Plus Care funds will be awarded for each of the four
components of the program: Tenant-based Rental Assistance; Sponsor-
based Rental Assistance; Project-based Rental Assistance; and Section 8
Moderate Rehabilitation of Single Room Occupancy Dwellings for Homeless
Individuals (provided there are sufficient numbers of approvable
projects to achieve these percentages). After projects are rated and
ranked, based on the factors described above, HUD will determine if the
conditionally selected projects achieve these minimum percentages. If
necessary, HUD will skip higher-ranked projects in order to achieve
these minimum percentages.
    In accordance with section 455(b) of the McKinney Act, no more than
10 percent of the assistance made available for Shelter Plus Care in
any fiscal year may be used for programs located within any one unit of
general local government. In accordance with section 441(c) of the
McKinney Act, no city or urban county may have Section 8 SRO projects
receiving a total of more than 10 percent of the assistance made
available under this program. HUD is defining the 10 percent
availability this fiscal year as $10 million for Shelter Plus Care and
$10 million for Section 8 SRO. However, if the amount awarded under
either of these two programs exceeds $100 million, then the amount
awarded to any one unit of general local government (for purposes of
the Shelter Plus Care program) or city or urban county (for the
purposes of the SRO program) could be up to 10 percent of the actual
total amount awarded for that program.
    Lastly, HUD reserves the right to reduce the amount of a grant if
necessary to ensure that no more than 10 percent of assistance made
available under this program section of the SuperNOFA will be awarded
for projects located within any one unit of general local government or
within the geographic area covered by any one Continuum of Care. If HUD
exercises a right it has reserved under this program section of the
SuperNOFA, that right will be exercised uniformly across all
applications received in response to this program section of the
SuperNOFA.

(B) Action on Conditionally Selected Applications

    HUD will notify conditionally selected applicants in writing. As
necessary, HUD will subsequently request them to submit additional
project information, which may include documentation to show the
project is financially feasible; documentation of firm commitments for
cash match; documentation showing site control; information necessary
for HUD to perform an environmental review, where applicable; and such
other documentation as specified by HUD in writing to the applicant,
that confirms or clarifies information provided in the application. HUD
will notify SHP, SRO, S+C and S+C/SRO applicants of the deadline for
submission of such information. If an applicant is unable to meet any
conditions for fund award within the specified timeframe, HUD reserves
the right not to award funds to the applicant, but instead to either:
use them to select the next highest ranked application(s) from the
original competition for which there are sufficient funds available; or
add them to funds available for the next competition for the applicable
program.

VI. Application Submission Requirements

    The application kit provides the application materials, including
Form SF-424 and certifications, that must be used in applying for
homeless assistance under this SuperNOFA. These application materials
substitute for the forms, certifications, and assurances listed in
Section II(G) of the General Section of the SuperNOFA.
    The application requires a description of the Continuum of Care
system and proposed project(s). The application kit also contains
certifications that the applicant will comply with fair housing and
civil rights requirements, program regulations, and other Federal
requirements, and (where applicable) that the proposed activities are
consistent with the HUD-approved Consolidated Plan of the applicable
State or unit of general local government, including the Analysis of
Impediments to Fair Housing Choice and the Action Plan to address these
impediments. Projects funded under

[[Page 9831]]

this SuperNOFA shall operate in a fashion that does not deprive any
individual of any right protected by the Fair Housing Act (42 U.S.C.
3601-19), section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
794), the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.), Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d),
Section 109 of the Housing and Community Development Act of 1974 (42
U.S.C. 5301) or the Age Discrimination Act of 1974 (42 U.S.C. 6101).
Section II(D) of the General Section of this SuperNOFA regarding
Affirmatively Furthering Fair Housing does not apply to the Continuum
of Care Homeless Assistance programs.
    There are three options for submitting an application under this
program section of the SuperNOFA.
    One: A ``Consolidated Application'' is submitted when a
jurisdiction (or a consortium of jurisdictions) submits a single
application encompassing a Continuum of Care strategy and containing
all the projects within that strategy for which funding is being
requested. Individual projects are contained within the one
consolidated application. Grant funding may go to one entity which then
administers all funded projects submitted in the application, or under
this option, grant funding may go to all or any of the projects
individually. Your application will specify the grantee for each
project.
    Two: ``Associated Applications'' are submitted when applicants plan
and organize a single Continuum of Care strategy which is adopted by
project sponsors or operators who choose to submit separate
applications for projects while including the identical Continuum of
Care strategy. In this case, project funding would go to each
successful applicant individually and each would be responsible to HUD
for administering its separate grant.
    Three: A ``Solo Application'' is submitted when an applicant
applies for a project exclusive of participation in any community-wide
or region-wide Continuum of Care development process.
    Options one and two are not substantively different and will be
considered equally competitive. Applicants are advised that projects
that are not a part of a Continuum of Care strategy will receive few,
if any, points under the Continuum of Care rating factors.

VII. Corrections to Deficient Applications

    The General Section of the SuperNOFA provides the procedures for
corrections to deficient applications (See Section V of the General
Section).

VIII. Environmental and Local Resident Employment Requirements

(A) Environmental Requirements

    All Continuum of Care assistance is subject to the National
Environmental Policy Act of 1969 and related Federal environmental
authorities. No Federal or non-Federal funds or assistance that limits
reasonable choices or could produce a significant adverse environmental
impact may be committed to a project until all required environmental
reviews and notifications have been completed. Conditional selection of
projects under the Continuum of Care Program is subject to the
environmental review requirements under 24 CFR 582.230, 583.230, and
882.804(c), as applicable.

(B) Local Resident Employment

    To the extent that any housing assistance (including rental
assistance) funded through this program section of the SuperNOFA is
used for housing rehabilitation (including reduction and abatement of
lead-based paint hazards, but excluding routine maintenance, repair,
and replacement) or housing construction, then it is subject to section
3 of the Housing and Urban Rehabilitation Act of 1968, and the
implementing regulations at 24 CFR part 135. Section 3, as amended,
requires that economic opportunities generated by certain HUD financial
assistance for housing and community development programs shall, to the
greatest extent feasible, be given to low- and very low-income persons,
particularly those who are recipients of government assistance for
housing, and to businesses that provide economic opportunities for
these persons.

IX. Authority

    The Supportive Housing Program is authorized by title IV, subtitle
C, of the Stewart B. McKinney Homeless Assistance Act (McKinney Act),
42 U.S.C. 11381. Funds made available under this program section of the
SuperNOFA for the Supportive Housing Program are subject to the program
regulations at 24 CFR part 583.
    The Shelter Plus Care program is authorized by title IV, subtitle
F, of the McKinney Act, 42 U.S.C. 11403. Funds made available under
this program section of the SuperNOFA for the Shelter Plus Care program
are subject to the program regulations at 24 CFR part 582.
    The Section 8 Moderate Rehabilitation Program for Single Room
Occupancy Dwellings for Homeless Individuals (SRO) is authorized by
section 441 of the McKinney Act, 42 U.S.C. 11401. Funds made available
under this NOFA for the SRO program are subject to the program
regulations at 24 CFR part 882, subpart H.

BILLING CODE 4210-32-P

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[GRAPHIC] [TIFF OMITTED] TN26FE99.040

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    [GRAPHIC] [TIFF OMITTED] TN26FE99.041

BILLING CODE 4210-32-C

[[Page 9837]]

Funding Availability for the Housing Opportunities for Persons With
AIDS (HOPWA) Program

Program Overview

    Purpose of the Program. To provide States and localities with the
resources and incentives to devise long-term comprehensive strategies
for meeting the housing needs of persons with HIV/AIDS and their
families.
    Available funds. $22,275,000 (and under a related part of this
SuperNOFA, up to $2,250,000 for technical assistance for the HOPWA
program).
    Eligible Applicants. (1) States, units of general local government,
and nonprofit organizations for grants for Special Projects of National
Significance (SPNS) grants.
    (2) States and units of general local government may apply for
projects under the Long-Term category of grants, if activities will
serve areas that were not eligible for HOPWA formula allocations in
fiscal year 1999. An appendix in the application kit identifies the
formula areas.
    Application Deadline. June 2, 1999.
    Match. None.

Additional Information

    If you are interested in applying for funding under this program,
please review carefully the General Section of this SuperNOFA and the
following additional information.

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

    Application Due Date. You must submit applications on or before
12:00 midnight, Eastern time, on June 2, 1999 at HUD Headquarters.
    See the General Section of this SuperNOFA for specific procedures
governing the form of application submission (e.g., mailed
applications, express mail, overnight delivery, or hand carried).
    Address for Submitting Applications. You must submit your completed
original application to: Department of Housing and Urban Development,
451 Seventh Street, SW, Room 7251, Washington, DC 20410. The original
application submitted to HUD headquarters is considered the official
application.
    In addition, you must submit two (2) copies of your application to
the area CPD Field Office or Offices that serve the area in which
activities are proposed; the list of addresses for area CPD Field
Offices is provided in the HOPWA application kit. If you propose
nationwide activities, you must send all copies to the HUD headquarters
office. When submitting your applications, please refer to HOPWA, and
include your name, mailing address (including zip code) and telephone
number (including area code).
    For Application Kits. For an application kit, please call the
SuperNOFA Information Center at 1-800-HUD-8929 (1-800-483-8929).
Persons with hearing or speech impairments may call the Center's TTY
number at 1-800-483-2209. The application kit also will be available on
the Internet through the HUD web site at http://www.hud.gov.
    For Further Information and Technical Assistance. For answers to
your questions, you may call the HUD Field Office serving your area, at
the telephone number shown in the application kit for this program, or
you may contact the Community Connections Information Center at 1-800-
998-9999 (voice) or 1-800-483-2209 (TTY) or by Internet at: http://
www.comcon.org/ccprog.html.

II. Amount Allocated

    Approximately $22,275,000 is being made available for funding under
this program section of the SuperNOFA. Additional funds may be awarded
if funds are recaptured, deobligated, appropriated or otherwise made
available during the fiscal year.
    (A) Maximum grant amounts. The maximum amount that you may receive
is $1,200,000 for program activities (e.g., activities that directly
benefit low-income persons living with HIV/AIDS and their families).
You may also add-on up to 3 percent of this program activities amount
for grantee administrative costs and, if your program involves project
sponsors, add-on up to 7 percent for their administrative costs. In
addition, up to $50,000 may be requested to collect data on project
outcomes. HUD reserves the right to reduce the amount requested for
data collection on project outcomes in relation the amount requested
for program activities.
    (B) Award Modifications. See the General Section of this SuperNOFA
for information with regard to adjustments to funding. HUD also
reserves the right to ensure that activities funded under the FY 1999
Continuum of Care will not duplicate activities funded under this
competition.

III. Program Description; Eligible Applicants, Eligible Activities

(A) Program Description

    Funds under this program are to be used to fund projects for low-
income persons with HIV/AIDS and their families under two categories of
assistance:
    (1) Grants for Special Projects of National Significance (SPNS)
that, due to their innovative nature or their potential for
replication, are likely to serve as effective models in addressing the
housing and related supportive service needs of low-income persons
living with HIV/AIDS and their families; and
    (2) Grants for projects that are part of Long-Term Comprehensive
Strategies (Long-Term) which provide housing and related supportive
services for low-income persons living with HIV/AIDS and their families
in areas that are not eligible for HOPWA FY 99 formula allocations.

(B) Eligible Applicants and Project Sponsors

    (1) States, units of general local government, and nonprofit
organizations may apply for grants for Special Projects of National
Significance;
    (2) States and units of general local government may apply for
grants for projects under the Long-Term category of grants, if proposed
activities will serve areas that were not eligible to receive HOPWA
formula allocations in fiscal year 1999. An appendix in the application
kit describes the formula areas. Nonprofit organizations are not
eligible to apply directly for the Long-Term grants but may serve as a
project sponsor for an eligible State or local government grantee