Nofa

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5311-N-02]
HUD’s Fiscal Year (FY) 2009 Notice of Funding Availability (NOFA) for
the Capital Fund Recovery Competition Grants; Revised to Incorporate Changes,
Corrections, and Clarifications

AGENCY: Office of the Assistant Secretary for Public and Indian Housing, HUD.
ACTION: Notice of HUD’s Notice of Funding Availability (NOFA) for HUD’s American
Recovery and Reinvestment Act Capital Fund Recovery Competition (CFRC) Grants.
SUMMARY: On February 17, 2009, the President signed the American Recovery and
Reinvestment Act of 2009 (“the Recovery Act”). This legislation includes a $4 billion
appropriation of Capital Fund for public housing agencies (PHAs) to carry out capital and
management activities, as authorized under section 9 of the United States Housing Act of 1937
(“the 1937 Act”). The Recovery Act requires that $3 billion of these funds be distributed as
formula funds and the remaining $1 billion be distributed through a competitive process. HUD
obligated approximately $2.985 million in formula funds to Public Housing Agencies (PHAs) on
March 18, 2009. Today’s publication provides the information and instructions for making
available $995 million in assistance through the CFRC grants. (Note: In accordance with the
Recovery Act, the Department is withholding $5 million of the $1 billion allocated for

CFRC NOFA: Revised to Incorporate Changes, Corrections, and Clarifications

2
competitive grant funding under the Recovery Act to fund a 0.5 percent set-aside to pay for costs
associated with implementing the Recovery Act.)
SUMMARY OF REVISION: On May 7, 2009, HUD posted on its website its Notice of
Funding Availability (NOFA) for HUD’s American Recovery and Reinvestment Act Capital
Fund Recovery Competition (CFRC) Grants. Through this revised CFRC NOFA, posted June 3,
2009, HUD changes, corrects, and clarifies a number of criteria established in the CFRC NOFA
posted on May 7, 2009. The major changes, corrections, and clarifications to the NOFA include
the following:
1. Adding threshold funding caps in Categories 1, 2 and 3 for public housing agencies (PHAs)
designated as High Performers;
2. Adding a rating factor on High Performer status to Category 4;
3. Changing the Capacity threshold requirement relating to the Capital Fund;
4. Clarifying the threshold requirement of Category 2, Public Housing Transformation, that
deals with the census tract and the concentration of poverty;
5. Adding definitions of leverage and match and adding tie-breaking criteria based on leverage
and match;
6. Amending the leverage ratio criteria in Category 1 required for Round 1 consideration;
7. Amending the Category 3 threshold requirement to require that any demolition and/or
disposition applications had to be submitted to HUD no later than the date of the publication
of the revised NOFA;
8. Clarifying certain other Category 4 rating factors and funding limits;
9. Clarifying that HUD will not fund more than one grant for one project; and
10. Revising the deadline dates.

3
Applicants should review the entire revised NOFA document in order to see in full the changes,
corrections, and clarifications that have been made.
FOR FURTHER INFORMATION CONTACT: If you have a question or need a
clarification, you may contact the Office of Capital Improvements by sending an email message
to [email protected]. Please see http://www.hud.gov/recovery/ (which will link to the Office of
Capital Improvements website, http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm)
for additional information.
SUPPLEMENTARY INFORMATION:
HUD encourages applicants to carefully read all parts of this NOFA. Carefully following the
directions provided can make the difference in a successful application submission.

4
Table of Contents
OVERVIEW INFORMATION: ................................................................................................... 10
A. Federal Agency Name:........................................................................................................ 10
B. Funding Opportunity Title: ................................................................................................. 10
C. Announcement Type: .......................................................................................................... 10
D. Funding Opportunity Number:............................................................................................ 11
E. Catalog of Federal Domestic Assistance (CFDA) Number(s): ........................................... 11
F. Dates: ................................................................................................................................... 11
1. Application Deadline Date: .............................................................................................. 11
a. Threshold-Based Applications. .................................................................................... 11
b. Rated and Ranked Applications. .................................................................................. 11
2. Statutory Obligation and Expenditure Deadlines: ............................................................ 12
G. Additional Overview Content Information: ........................................................................ 12
1. Available Funds. ............................................................................................................... 12
2. Program Description. ........................................................................................................ 12
3. Funding Requests Limits. ................................................................................................. 13
4. Eligible Applicants. .......................................................................................................... 14
5. Website for Applications. ................................................................................................. 14
6. HUD PIH Notice 2009-12 ................................................................................................ 14
FULL TEXT OF ANNOUNCEMENT: ....................................................................................... 15
I. Funding Opportunity Description:............................................................................................ 15
A. Program Description. .......................................................................................................... 15
B. Authority ............................................................................................................................. 15
C. Definitions ........................................................................................................................... 15
1. Annual Contributions Contract (ACC). ............................................................................ 16
2. Expenditure....................................................................................................................... 16
3. Force Account................................................................................................................... 16
4. Leverage. .......................................................................................................................... 17
5. Match. ............................................................................................................................... 17
6. Obligation. ........................................................................................................................ 18
7. Ordinal. ............................................................................................................................. 18
8. PHA. ................................................................................................................................. 19

5
9. Public Housing. ................................................................................................................ 19
10. Project. ............................................................................................................................ 19
11. Supplement. .................................................................................................................... 19
12. Supplant. ......................................................................................................................... 19
II. Award Information: ................................................................................................................. 19
A.

Available Funds and Funding Caps. ................................................................................. 19

1. Category Funding Caps. .................................................................................................... 20
2. Threshold Funding Caps. .................................................................................................. 20
B.

Type of Assistance. ........................................................................................................... 20

C. Funding Request Limits. ..................................................................................................... 21
1. Category 1: Improvements Addressing the Needs of the Elderly and/or Persons with
Disabilities. ............................................................................................................................ 21
2. Category 2: Public Housing Transformation. ................................................................... 22
3. Category 3: Gap Financing for Projects that are Stalled Due to Financing Issues. .......... 22
4. Category 4: Creation of Energy Efficient, Green Communities. ..................................... 22
5. Lifting Limits.................................................................................................................... 23
E. Number of Applications Limits. .......................................................................................... 23
1. Category 1: Improvements Addressing the Needs of the Elderly and/or Persons with
Disabilities. ............................................................................................................................ 23
2. Category 2: Public Housing Transformation. ................................................................... 24
3. Category 3: Gap Financing for Projects that are Stalled Due to Financing Issues. .......... 24
4. Category 4: Creation of Energy Efficient, Green Communities. ..................................... 24
5. Lifting Limits.................................................................................................................... 24
G. Combined Applications....................................................................................................... 24
H. Joint Applications. .............................................................................................................. 25
I. Grant Term – Obligation and Expenditure Dates. ................................................................ 25
III. Eligibility Information: .......................................................................................................... 25
A.

Eligible Applicants............................................................................................................ 25

1.

Eligible. .......................................................................................................................... 25

2.

Ineligible......................................................................................................................... 25

3. Troubled Status. ................................................................................................................ 25
B.

Cost Sharing or Matching: ................................................................................................ 26

6
C.

Other ................................................................................................................................. 26

1. Eligible Uses of Funds...................................................................................................... 26
2. Threshold Requirements for All Applications.................................................................. 26
a.

Eligible Applicants.................................................................................................. 27

b.

Signatures. ............................................................................................................... 27

c. Dun and Bradstreet Data Universal Numbering System (DUNS) Number
Requirement. ..................................................................................................................... 27
d. Capacity. ....................................................................................................................... 27
(1) High Performer, if applicable. .................................................................................... 27
e. Compliance with Fair Housing and Civil Rights Laws. ............................................... 29
f. Affirmatively Furthering Fair Housing. ....................................................................... 30
g. Prohibition Against Lobbying Activities. .................................................................... 30
h. Grant Administration. .................................................................................................. 30
i. No Supplanting of Funds. ............................................................................................. 31
IV. Application and Submission Information: ............................................................................. 31
A. Addresses to Request Application Package: ....................................................................... 31
B. Content and Form of Application Submission: ................................................................... 32
1. Applications must be submitted electronically, as described in Section IV.A above. ..... 32
2. Electronic Application Submission Instructions. ............................................................. 32
3. Application Content and Organization. ............................................................................ 33
C. Submission Dates and Times: .............................................................................................. 33
a. Threshold-Based Applications. .................................................................................... 33
b. Rated and Ranked Applications. .................................................................................. 34
c. Incomplete Applications and Technical Deficiencies. ................................................. 34
D. Funding Restrictions: .......................................................................................................... 34
1. Statutory Time Limits – Obligation and Expenditure of Funds: ...................................... 34
2. Eligible Uses of Funds...................................................................................................... 35
3. Ineligible Uses of Funds. .................................................................................................. 36
4. Other Use Restrictions. ..................................................................................................... 37
V. Application Review Information: ........................................................................................... 37
A. Capital Fund Recovery Competition Categories ................................................................ 37
1. Category 1 - Improvements Addressing the Needs of the Elderly and/or Persons with
Disabilities. ............................................................................................................................ 38
a. Eligible Category 1 Activities ...................................................................................... 38

7
b. Threshold Requirements .............................................................................................. 39
(1) Threshold Requirements for All Applications ............................................................ 39
(2) Category Specific Threshold Requirements ............................................................... 39
(3) Activity Type Specific Threshold Requirements ........................................................ 43
(a) Activity Type 1 ........................................................................................................... 43
(b) Activity Type 2........................................................................................................... 43
(c) Activity Type 3 ............................................................................................................ 44
(d) Activity Type 4............................................................................................................ 45
c. Application Content and Organization......................................................................... 46
2. Category 2 - Public Housing Transformation................................................................... 48
a. Eligible Activities......................................................................................................... 48
b. Threshold Requirements. ............................................................................................. 49
(1) Threshold Requirements for All Applications ............................................................ 49
(2) Category Specific Threshold Requirements ............................................................... 49
c. Application Content and Organization......................................................................... 56
3. Category 3 - Gap Financing for Projects that are Stalled due to Financing Issues .......... 58
a. Eligible Activities......................................................................................................... 58
b. Threshold Requirements .............................................................................................. 59
(1) Threshold Requirements ............................................................................................. 59
(2) Category Specific Threshold Requirements ............................................................... 60
e. Application Content and Organization......................................................................... 65
4. Category 4. Creation of an Energy Efficient, Green Community. .................................. 67
a. Eligible Activities......................................................................................................... 67
(1) Option 1, Substantial Rehabilitation or New Construction ........................................ 67
(2) Option 2, Moderate Rehabilitation ............................................................................. 68
b. Threshold Requirements. ............................................................................................. 69
(1) Threshold Requirements for All Applications. ........................................................... 69
(2) Category Specific Threshold Requirements. .............................................................. 69
(3) Option Specific Threshold Requirements. ................................................................. 72
c. Rating Factors. ............................................................................................................. 74
(1) Option 1, Substantial Rehabilitation or New Construction, Rating Factors (110 total
points maximum). ............................................................................................................. 74
(a) Rating Factor 1 – Strategy for Green Communities – Amended Mandatory ............. 74
Enterprise Green Communities Criteria (60 points maximum). ....................................... 74

8
(b) Rating Factor 2 – Strategy for Green Communities – Amended Optional Enterprise
Green Communities Criteria (30 points maximum). ........................................................ 80
(c) Rating Factor 3 – Leverage Funds (10 points maximum). ......................................... 80
(d) Rating Factor 4. Job Creation – Economic Opportunities for Low- and Very LowIncome Persons (Section 3) and Workforce Investment Boards (5 Points maximum) .... 81
(e) Rating Factor 5. Capacity of Applicant – .................................................................. 84
(2) Option 2, Moderate Rehabilitation, Rating Factors (110 total points ........................ 84
maximum). ........................................................................................................................ 84
(a) Rating Factor 1 – Certify to Strategies that Provide Green, Healthy Homes (45 ...... 84
points maximum). ............................................................................................................. 84
(b) Rating Factor 2 – Strategy for Energy Efficient Communities (45 Points................. 86
maximum). ........................................................................................................................ 86
(c) Rating Factor 3 – Leverage Funds (10 points maximum). ......................................... 87
(d) Rating Factor 4. Job Creation – Economic Opportunities for Low- and Very LowIncome Persons (Section 3) and Workforce Investment Boards (5 Points maximum) .... 88
(e) Rating Factor 5. Capacity of Applicant – .................................................................. 91
d. Application Content and Organization. ....................................................................... 91
B. Reviews and Selection Process ............................................................................................ 93
1. Reviews and Selection Process for Threshold-Based Applications ................................. 94
a. Categories ..................................................................................................................... 94
b. Ordinals ......................................................................................................................... 94
c. Application Screening .................................................................................................. 95
d. Funding Rounds ........................................................................................................... 96
(1) Round 1 ...................................................................................................................... 96
(2) Round 2 ...................................................................................................................... 97
(3) Tie-Breaking................................................................................................................ 99
(4) Partial Funding. .......................................................................................................... 99
2. Reviews and Selection Process for Rated and Ranked Applications. .............................. 99
a. Application Screening .................................................................................................. 99
(1) Screening Purpose. ..................................................................................................... 99
(2) Corrections to Deficient Application ....................................................................... 100
(3) Applications that will not be rated or ranked. .......................................................... 101
b. Rating and Ranking.................................................................................................... 101
(1) Rating. ...................................................................................................................... 101
(2) Ranking. ................................................................................................................... 101

9
c. Tie-Breaking. ............................................................................................................. 102
d. Remaining Funds ....................................................................................................... 103
3. Funding Reductions. ....................................................................................................... 104
4. Transfer of Funds to Other Categories. .......................................................................... 104
5. Number of CFRC Grants per Project ............................................................................. 104
6. Notification of Funding Decisions ................................................................................. 105
a. Threshold-Based CFRC grants .................................................................................. 105
b. Rated and Ranked CFRC grants ............................................................................... 105
C. Anticipated Announcement and Award Dates: ................................................................. 105
VI. Award Administration Information: .................................................................................... 105
A. Award Notices................................................................................................................... 105
B. Administrative, Program and National Policy Requirements. .......................................... 106
1. Recovery Act Requirements .......................................................................................... 106
2. Program Requirements ................................................................................................... 107
a. Previous Plans. ........................................................................................................... 107
b. Process for Obtaining Public Comment on Five-Year Action Plan and Annual Plan.
......................................................................................................................................... 107
c. Grant Administration. ................................................................................................ 108
d. Participating In HUD-Sponsored Program Evaluation. ............................................. 108
e. Reporting Requirements............................................................................................. 108
f. Performance Measures and Reporting Requirements by Category. ........................... 109
(1) Category 1 - Improvements Addressing the Needs of the Elderly and/or Persons with
Disabilities ...................................................................................................................... 109
(a) Activity Type 1. ........................................................................................................ 109
(b) Activity Type 2......................................................................................................... 109
(c) Activity Type 3. ........................................................................................................ 111
(d) Activity Type 4......................................................................................................... 111
(2) Category 2 – Public Housing Transformation.......................................................... 113
(3) Category 3 - Gap Financing for Projects that are Stalled due to Financing Issues .. 113
(4) Category 4 - Creation of an Energy Efficient, Green Community............................ 114
(a) Option 1, Substantial Rehabilitation or New Construction ...................................... 114
(b) Option 2 - Moderate Rehabilitation ......................................................................... 115
g. Post-Award HUD Proposal Reviews. ........................................................................ 116
h. Pro Rata Share............................................................................................................ 117

10
i. Unit Restrictions. ........................................................................................................ 117
j. Program Regulations................................................................................................... 117
3. Administrative Requirements. ........................................................................................ 117
a. Procurement. .............................................................................................................. 117
b. Conducting Business in Accordance with Core Values and Ethical Standards/Code of
Conduct. .......................................................................................................................... 121
c. False Statements. ........................................................................................................ 121
d. Prohibition Against Lobbying Activities. .................................................................. 121
e. Economic Opportunities for Low and Very Low-Income Persons (Section 3). ........ 121
f. Drug-Free Workplace. ................................................................................................ 122
g. Compliance with the Federal Funding Accountability and Transparency Act of 2006
......................................................................................................................................... 124
h. Maximize job creation and economic benefit. ........................................................... 124
i. Immigration and Nationality Act. ............................................................................... 125
j. Prevailing Wages and Federal Labor Standards. ........................................................ 125
k. Environmental Requirements...................................................................................... 126
l. Funding Restrictions. .................................................................................................. 128
m. Relocation. ................................................................................................................ 128
n. Enforcement. .............................................................................................................. 128
o. OMB Circulars Relevant to Leverage and Match...................................................... 128
VII. Agency Contact(s): ............................................................................................................. 130
VIII. Other Information: ............................................................................................................ 130
A. Paperwork Reduction Act. ................................................................................................ 130
B. Environmental Review. ..................................................................................................... 132

OVERVIEW INFORMATION:
A. Federal Agency Name: U.S. Department of Housing and Urban Development, Office of
Public and Indian Housing
B. Funding Opportunity Title: American Recovery and Reinvestment Act (Recovery Act)
Capital Fund Recovery Competition (CFRC).
C. Announcement Type: Initial announcement.

11
D. Funding Opportunity Number: The Federal Register number for this NOFA is FR-5311N-01. The OMB approval number for this program is 2577-0261.
E. Catalog of Federal Domestic Assistance (CFDA) Number(s): 14.884, “Capital Fund
Recovery Competition Grants.”
F. Dates:
1. Application Deadline Date:
a. Threshold-Based Applications. This NOFA announces the availability of Capital Fund
Recovery Competition Grants under four categories. The first application deadline date
information applies only to the following Categories: Improvements Addressing the Needs of the
Elderly and/or Persons with Disabilities; Public Housing Transformation; and Gap Financing for
Projects that are Stalled Due to Financing Issues. Applications for funding in these three
categories will be funded on a threshold basis, by Ordinal (order of receipt), Category and
Round, in accordance with Section V of this NOFA. The Department will begin accepting
applications for these three categories on June 22, 2009. The Department will continue to accept
applications for these three categories until 11:59:59 p.m. of the local time of the applicant
August 18, 2009. Applications for these three categories received outside of this timeframe
will not be reviewed by HUD and will not be eligible for funding. The first Ordinal will be
assigned on July 6, 2009; all applications received from June 22, 2009 through July 6, 2009 will
all receive the same Ordinal. HUD may begin to fund new grants starting on July 6, 2009. HUD
will fund applications as long as funds remain available, in accordance with the criteria of this
NOFA.
b. Rated and Ranked Applications. This application deadline date information applies only to
the Category of Creation of Energy Efficient, Green Communities. The Department will begin

12
accepting applications for this NOFA category on June 22, 2009. The deadline for applications
for this Category is July 21, 2009. Applications will only be accepted until 11:59:59 p.m. of the
local time of the applicant on this date. Applications for this category received outside of this
timeframe will not be reviewed by HUD and will not be eligible for funding. Because the
Creation of Energy Efficient, Green Communities applications will be rated and ranked,
application reviews and funding determinations will not be made until after the deadline date for
this Category (July 21, 2009).
2. Statutory Obligation and Expenditure Deadlines: Applicants must carefully review the
statutory obligation and expenditure deadline information in Section IV.D of this NOFA. All
grantees must comply with these obligation and expenditure deadlines.
G. Additional Overview Content Information:
1. Available Funds. This Notice of Funding Availability (NOFA) announces the availability of
$995 million in CFRC grants. Funds will be awarded in accordance with this NOFA.
2. Program Description. The purpose of this program is to provide an additional $995 million
to PHAs for capital and management activities as authorized under section 9 of the 1937 Act in
accordance with four funding Categories:
a. Improvements Addressing the Needs of the Elderly and/or Persons with Disabilities;
b. Public Housing Transformation;
c. Gap Financing for Projects that are Stalled due to Financing Issues; and
d. Creation of Energy Efficient, Green Communities.
HUD has structured each NOFA category to target specific needs for Capital Funds. Each
NOFA category has its own thresholds, requirements and performance measures. The NOFA
imposes certain funding limits and thresholds on each category and sometimes on multiple

13
categories (see Sections III and V below). The first three NOFA categories will be funded on a
threshold basis, by Ordinal, Category and Round, subject to thresholds. The NOFA establishes
multiple rounds of funding that lift funding limits and threshold requirements one-by-one over
time if there are insufficient successful applications to consume the funding available under the
funding limits and thresholds. The NOFA treats the fourth category differently. The NOFA still
applies funding limits and thresholds to the fourth category, but rather than awarding funds on a
threshold basis, by Ordinal, Category and Round, the NOFA establishes scoring criteria for the
fourth category. HUD will rate applications for funding in the fourth NOFA category and fund
them in rank order. If there are insufficient successful applications to consume the funding
available under the funding limits and thresholds for the fourth category, the NOFA removes the
funding limits and thresholds and continues to award funding in rank order. At different points
in the process, the NOFA shifts unused funding from one category to another. Successful
applicants are subject to additional requirements imposed by the American Recovery and
Reinvestment Act and by this NOFA (see Section VI).
3. Funding Requests Limits. See Section II for detailed information on the amount of funds
applicants can request. Combined and joint applications are not allowed. Each application can
only apply for one Category and may target only one project to be modernized/rehabilitated or
developed. Applicants may submit applications for more than one Category and may submit
more than one application for each Category, unless otherwise indicated in this NOFA. In cases
where a PHA applies for multiple grants on the same day, and where there may not be sufficient
funds available to fund all applications, and applications are of equal standing, it is necessary for
HUD to know the order in which the applicant wishes the applications to be funded.
Accordingly, applicants will be able to indicate this prioritization in the CFRC application. If a

14
PHA submits multiple applications on the same day and fails to specify an order, HUD will
process them in order of receipt. HUD will not fund more than one grant for one project.
4. Eligible Applicants. Eligible applicants are all public housing agencies (PHAs) that own or
operate Low-Income Public Housing and are eligible to receive capital funding under section 9
of the United States Housing Act of 1937 (42 U.S.C. 1437g) (the “Act”), subject to the
requirements under Section III of this NOFA. PHAs that manage only a Housing Choice
Voucher (HCV) program, tribal PHAs, and tribally-designated housing entities are not eligible.
Nonprofit organizations, for-profit organizations, private citizens and entrepreneurs are not
eligible to apply. If an applicant PHA has been designated as troubled, it must meet the
requirements of Section III.A.3 of this NOFA.
5. Website for Applications. Applications must be downloaded from this website:
http://www.hud.gov/recovery/ (which will link to the Office of Capital Improvements website,
http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm). Applications must be
completed and submitted electronically by emailing them to the following email address:
[email protected], in accordance with the application deadline date
information in F. above and Section IV. Any technical corrections will be published in the
Federal Register and posted to http://www.hud.gov/recovery/ (which will link to the Office of
Capital Improvements website, http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm).
Frequently asked questions will be posted on http://www.hud.gov/recovery/ (which will link to
the Office of Capital Improvements website,
http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm).
6. HUD PIH Notice 2009-12, “Information and Procedures for Processing American Recovery
and Reinvestment Act Capital Fund Formula Grants,” was published on March 18, 2009. Many

15
of the Recovery Act requirements related to formula grants also apply to competitive grants
awarded under this NOFA. Relevant information from that Notice is therefore included in this
NOFA. The NOFA also references key regulations, including 24 CFR Parts 905, 941 and 968.
Applicants should carefully review and follow such references.
FULL TEXT OF ANNOUNCEMENT:
I. Funding Opportunity Description:
A. Program Description. In accordance with the Recovery Act, HUD provides these grant
funds competitively to PHAs to carry out priority capital and management activities in public
housing through four funding Categories, as established in Section V.A of this NOFA.
1. The four Categories are:
a. Improvements Addressing the Needs of the Elderly and/or Persons with Disabilities;
b. Public Housing Transformation;
c. Gap Financing for Projects that are Stalled due to Financing Issues; and
d. Creation of Energy Efficient, Green Communities.
B. Authority
1. The funding authority for the Recovery Act CFRC under this NOFA is provided by the Public
Housing Capital Fund section under the Public and Indian Housing Section of the Department of
Housing and Urban Development section of Title XII of Division A of the Recovery Act (Public
Law 111-5, enacted February 17, 2009).
2. The program authority for the Recovery Act CFRC is section 9 of the 1937 Act (42 U.S.C.
1437g).
C. Definitions

16
1. Annual Contributions Contract (ACC). In the context of this NOFA, the contract between
a PHA and HUD that obligates funding under this NOFA to a PHA and imposes statutory,
regulatory and NOFA requirements on the PHA.
2. Expenditure. Where funds have been obligated, the PHA is expected to show reasonable
progress through increasing fund expenditures each month at a rate that would allow completion
within the timeframe established for Recovery Act Funds. Expenditures mean the cumulative
amount of Capital Funds distributed by the PHA documented through written checks or
electronic means. The PHA shall requisition funds only when payment is due and after
inspection and acceptance of the work and shall distribute the funds within three working days of
receipt of the funds.
3. Force Account. Force account is defined in the Capital Fund program (CFP) as labor
employed directly by the PHA either on a permanent or a temporary basis. For Recovery Act
work, PHAs are permitted to use force account to accomplish capital projects, where included in
the CFP Budget, Annual Plan or Five-Year Action Plan, without any additional approval from
the local HUD Field Office. Force account labor costs for carrying out physical improvements,
including technical salaries, employee benefit contributions and, where required by State or
local/tribal law, contributions to an unemployment compensation fund, shall be charged to the
appropriate development account for hard costs; i.e., Site Improvements (Account 1450);
Dwelling Structures (Account 1460); or Non-dwelling Structures (Account 1470). For Recovery
Act work, the PHA may undertake the modernization activities using force account labor, only
where included in the CFP Budget, Annual Plan or Five-Year Action Plan, without any
additional HUD approval. The PHA shall use force account labor where it is cost-effective and
appropriate to the scope and type of physical improvements and the PHA has the capacity to

17
serve as its own main contractor and to maintain an adequate level of routine maintenance during
force account activity.
4. Leverage. Commitments of non-public housing funds that are cash or cash equivalents. This
does not include in-kind services or commitments or donations of land. Examples include but
are not limited to: other governmental cash resources, including HUD sources, Low-Income
Housing Tax Credit equity, loans, fees earned by a PHA’s Central Office Cost Center (COCC).
Please note that commitments of public housing funds, or requirements of this NOFA for use of
public housing funds such as Operating Fund, ROSS, or combined MTW funds, may not be
counted in the leverage. For purposes of this NOFA, leverage is a threshold requirement for
funding during Round 1 and will be used (in combination with match) for tie-breaking purposes,
as needed. It is important to note that there are several Office of Management and Budget
(OMB) circulars that are applicable, and particular attention should be given to the provisions
concerning the use of federal funds for leverage and/or match requirements. See Section
VI.B.3.o for information on those circulars. Applicants for funding under this NOFA are
reminded of the importance of confirming that any federal grant funds that they intend to use as
leverage or match are available to be used in that way under applicable statutes and regulations.
5. Match. Commitments of non-public housing resources that are not cash or cash equivalents.
This includes in-kind services or commitments, donations of land, etc. Examples include but are
not limited to: donations of land, in-kind commitments of services from partners, in-kind
commitments of staff time from partners. Please note that commitments of public housing funds,
or requirements of this NOFA for use of public housing funds such as Operating Fund, ROSS, or
combined MTW funds, may not be counted in the match. For purposes of this NOFA, match is
optional and will be used (in combination with leverage) for tie-breaking purposes, as needed. It

18
is important to note that there are several Office of Management and Budget (OMB) circulars are
applicable, and particular attention should be given to the provisions concerning the use of
federal funds for leverage and/or match requirements. See Section VI.B.3.o for information on
those circulars. Applicants for funding under this NOFA are reminded of the importance of
confirming that any federal grant funds that they intend to use as leverage or match are
available to be used in that way under applicable statutes and regulations.
6. Obligation. Obligations mean the cumulative amount of modernization commitments
entered into by the PHA. Examples of obligations are modernization commitments entered into
by the PHA, i.e., contract execution for contract labor, materials or services; start and
continuation of physical work by force account labor; and start and continuation of
administrative work. Contract execution means execution of the contract by both the PHA and
the contractor. For force account work, all funds for a group of sequentially-related physical
work items are considered obligated when the first item is started, such as kitchen cabinet
replacement followed by kitchen floor replacement, but only where funds continue to be
expended at a reasonable rate. Where one force-account physical work items is started and is not
sequentially related to other physical work items, such as site improvements and kitchen
remodeling, then only the funds for the one physical work item started are considered obligated.
7. Ordinal. Upon receipt, HUD will assign each CFRC grant application an Ordinal (i.e.,
ranking number) that reflects the date HUD Headquarters received the application. Ordinals
correspond to calendar days, starting with July 6, 2009 and ending on the application deadline
closing date August 18, 2009, in accordance with the deadline date information in this NOFA,
specifically Section IV. HUD will consider all applications received on the same date as
received at the same time on that date, and those applications will all be assigned the same

19
Ordinal. Ordinals will only be used for the threshold-based categories: Improvements
Addressing the Needs of the Elderly and/or Persons with Disabilities; Public Housing
Transformation; and Gap Financing for Projects that are Stalled due to Financing Issues.
8. PHA. A public housing agency.
9. Public Housing. Housing owned and operated by a public housing agency (PHA) that is
under an Annual Contributions Contract (ACC) between a PHA and HUD.
10. Project. Public housing buildings and units linked together under a single project number in
HUD’s Public Housing Information Center (PIC)/Inventory Management System (IMS).
11. Supplement. To complete, add to, or extend.
12. Supplant. To replace one thing with another.
II. Award Information:
A. Available Funds and Funding Caps. This NOFA announces the availability of $995
million in CFRC grant
funds. Funds will be awarded through various Categories, in accordance with this NOFA. The
table below shows the amount of funds that will be available for each Category in accordance
with category funding caps and threshold funding caps that will be in effect under this NOFA
(see Section V.B Reviews and Selection Process).
Category
Category 1: Improvements
Addressing the Needs of the
Elderly and/or Persons with
Disabilities

Category Funding Caps
$95,000,000 (Round 1)

Threshold Funding Caps
During Round 1, $47,000,000
of Category 1’s Funding Cap is
reserved as a Threshold
Funding Cap for eligible
applications from High
Performers. (The balance of
the Category Funding Cap will
be available for remaining
eligible applications from High
Performers and non-High
Performers).

20
Category 2: Public Housing
Transformation

$100,000,000 (Round 1)

Category 3: Gap Financing for
Projects that are Stalled Due to
Financing Issues

$200,000,000 (Round 1)

Category 4: Creation of Energy
Efficient, Green Communities

During Round 1, $50,000,000
of Category 2’s Funding Cap is
reserved as a Threshold
Funding Cap for eligible
applications from High
Performers. (The balance of
the Category Funding Cap will
be available for remaining
eligible applications from High
Performers and non-High
Performers).
During Round 1, $100,000,000
of Category 3’s Funding Cap is
reserved as a Threshold
Funding Cap for eligible
applications from High
Performers. (The balance of
the Category Funding Cap will
be available for remaining
eligible applications from High
Performers and non-High
Performers).
N/A

$600,000,000 (Option 1:
$300,000,000 and Option
2: $300,000,000)
Total Funds Available
$995,000,000
1. Category Funding Caps. Category Funding Caps above indicate the maximum amount of

funds that may be awarded under a given Category during Round 1, in the cases of Categories 1,
2 and 3, and during initial consideration in the case of Category 4. The Category Funding Caps
may be lifted in accordance with Section V.B.
2. Threshold Funding Caps. The Threshold Funding Caps above indicate the amount of funds
that will be reserved for eligible applications from High Performer PHAs during Round 1. The
table also notes what funds will be available for remaining eligible applications from High
Performer and non-High Performer PHAs during Round 1. There is not a Threshold Funding
Cap for Category 4.
B. Type of Assistance. The type of assistance will be a grant.

21
C. Funding Request Limits.
1. Category 1: Improvements Addressing the Needs of the Elderly and/or Persons with
Disabilities. The maximum amount of grant funding HUD will award a single PHA during
Round 1 for the Improvements Addressing the Needs of the Elderly and/or Persons with
Disabilities NOFA category varies depending on the size of PHA as described in the table
below(which is based on the size of the PHA’s inventory):
PHA Size

Per Unit Amount Range of Maximum Grant Funds
a PHA Can Receive for this
Category
Small (less than 250 units)
$3,000
$3,000 to $747,000
Medium (250 to 1,249 units)
$2,500
$625,000 to $3,122,500
Large (1,250 units to 24,999 units)
$2,000
$2,500,000 to $49,998,000
Very Large (more than 25,000 units)
$1,000
$25,000,000 +
However, applicants must comply with the Budget, Leverage and Financing Thresholds of the
NOFA (which includes TDC/HCC requirements), as relevant, as well the Funding Restrictions
found in Section IV.D of the NOFA.
Example: A medium-sized PHA with an inventory of 500 public housing units wishes to submit
multiple applications under the NOFA Category of Improvements Addressing the Needs of the
Elderly and/or Persons with Disabilities. The most HUD will award for all of the applications
the PHA submits is a cumulative total of $1,250,000 ($2,500 X 500 units), while the grant award
limitation is in effect. HUD will lift this limitation at a point in the process after the completion
of Round 1 as described in Section V.B. of this NOFA. The maximum grant amount limitations
per PHA only apply to applications for the NOFA Category of Improvements Addressing the
Needs of the Elderly and/or Persons with Disabilities. Amounts awarded to a PHA pursuant to
other NOFA categories do not count toward the maximum grant amount limitations for the
NOFA Category of Improvements Addressing the Needs of the Elderly and/or Persons with
Disabilities.

22
2. Category 2: Public Housing Transformation. The maximum amount of grant funding
HUD will award a single PHA during Round 1 for the Public Housing Transformation Category
is $10 million, whether one or two applications are submitted (two applications may be
submitted in Round 1). The tables in this Section II.C do not apply to this Category. However,
applicants must comply with the Budget, Leverage and Financing Thresholds of the NOFA
(which includes TDC/HCC requirements), as relevant, as well the Funding Restrictions found in
Section IV.D of the NOFA.
3. Category 3: Gap Financing for Projects that are Stalled Due to Financing Issues. The
maximum amount of grant funding HUD will award a single PHA during Round 1 for the Gap
Financing for Projects that are Stalled Due to Financing Issues Category is $10 million per
application (i.e., a maximum of $20 million in Round 1 is allowed, since two applications may
be submitted in Round 1). The tables in this Section II.C do not apply to this Category.
However, applicants must comply with the Budget, Leverage and Financing Thresholds of the
NOFA (which includes TDC/HCC requirements), as relevant, as well the Funding Restrictions
found in Section IV.D of the NOFA.
4. Category 4: Creation of Energy Efficient, Green Communities. The maximum grant
amount(s) HUD will award a single PHA during initial consideration for Category 4, Creation of
Energy Efficient, Green Communities, varies as follows:
a. Option 1, Substantial Rehabilitation or New Construction. Applicants may request funds in
accordance with the table below (which is based on the size of the PHA’s inventory) or they may
request a maximum of $10 million, whichever is the higher amount, if that higher amount is
necessary for the activities proposed. However, applicants must comply with the Budget,

23
Leverage and Financing Thresholds of the NOFA (which includes TDC/HCC requirements), as
relevant, as well the Funding Restrictions found in Section IV.D of the NOFA.
b. Option 2, Moderate Rehabilitation. Applicants may request funds only in accordance with the
table below (which is based on the size of the PHA’s inventory). However, applicants must
comply with the Budget, Leverage and Financing Thresholds of the NOFA (which includes
TDC/HCC requirements), as relevant, as well the Funding Restrictions found in Section IV.D of
the NOFA.
PHA Size

Per Unit Amount Range of Maximum Grant Funds
a PHA Can Receive for this
Category
Small (less than 250 units)
$3,000
$3,000 to $747,000
Medium (250 to 1,249 units)
$2,500
$625,000 to $3,122,500
Large (1,250 units to 24,999 units)
$2,000
$2,500,000 to $49,998,000
Very Large (more than 25,000 units)
$1,000
$25,000,000 +
See example in C.1 above for calculation methodology. HUD will lift this limitation at a point in
the process after the completion of its initial ranking of Creation of Energy Efficient, Green
Communities NOFA category as described in Section V.B. of this NOFA. The maximum grant
amount limitations per PHA only apply to applications for the Creation of Energy Efficient,
Green Communities NOFA category. Amounts awarded to a PHA pursuant to other NOFA
categories do not count toward the maximum grant amount limitations for the Creation of Energy
Efficient, Green Communities NOFA category.
5. Lifting Limits. The Funding Request Limits above can be lifted in accordance with the
criteria of Section V.B.
E. Number of Applications Limits.
1. Category 1: Improvements Addressing the Needs of the Elderly and/or Persons with
Disabilities. There is not a limit on the total number of applications an applicant can submit for

24
this Category, total or within the Category or within a Round. Applicants must submit a separate
application for each project.
2. Category 2: Public Housing Transformation. During Round 1, a PHA may submit at most
two applications for this Category (for a total of $10 million). This limitation can be lifted
during Round 2. Applicants must submit a separate application for each project.
3. Category 3: Gap Financing for Projects that are Stalled Due to Financing Issues. During
Round 1, a PHA may submit at most two applications for this Category (for a total of $20
million). This limitation can be lifted during Round 2. Applicants must submit a separate
application for each project.
4. Category 4: Creation of Energy Efficient, Green Communities. There is not a limit on the
total number of applications an applicant can submit for this Category, total or within the
Category. Applicants must submit a separate application for each project. The Rounds process
does not apply to the Category Creation of Energy Efficient, Green Communities; rather it will
be rated and ranked.
5. Lifting Limits. The Number of Applications Limits above can be lifted in accordance with
the criteria of Section V.B.
F. Number of CFRC Grants per Project. In accordance with Section V.B.5, HUD will not
fund more than one CFRC grant for any one project. While an applicant is allowed to apply for
funding of a project under more than one Category, HUD will fund only one grant for that
project in accordance with the Review and Selection Process in Section V.B.
G. Combined Applications. Combined applications for a PHA are not allowed. Each
application can only apply for one Category and may target only one project to be
modernized/rehabilitated or developed.

25
H. Joint Applications. Joint applications are not allowed. PHAs may not submit an
application together or combine in any way their applications.
I. Grant Term – Obligation and Expenditure Dates. See Section IV.D for detailed
information on the statutory obligation and expenditure deadlines that apply to the funding
available under this NOFA.
III. Eligibility Information:
A. Eligible Applicants:
1.

Eligible. Eligible applicants are all PHAs that own or operate Low-Income

Public Housing and are eligible to receive capital funding under section 9 of the United States
Housing Act of 1937 (42 U.S.C. 1437g) (the “Act”), subject to the requirements under Section
III of this NOFA. If an applicant PHA has been designated as troubled, it must meet the
requirements of Section III.A.3 of this NOFA.
2. Ineligible. PHAs that manage only a Housing Choice Voucher (HCV) program, tribal
PHAs, and tribally designated housing entities are not eligible. Nonprofit organizations, forprofit organizations, private citizens and entrepreneurs are not eligible to apply.
3. Troubled Status. As of the NOFA publication date (date posted to HUD’s website), if HUD
has designated your PHA as troubled, HUD will use documents and information available to it to
determine whether you qualify as an eligible applicant. If designated as troubled, you may still
be an eligible applicant if:
a. The PHA is in receivership, either in HUD’s possession or judicial receivership, and a private
housing management agent has been selected (in accordance with 24 CFR part 902), or a
receiver has been appointed and HUD determines the PHA to be capable of carrying out this
grant program; or

26
b. The PHA is designated as troubled principally for reasons that will not affect its capacity to
carry out this grant program and HUD determines the PHA to be capable of carrying out this
grant program.
B. Cost Sharing or Matching: There is no cost sharing or matching requirement to be eligible
for this program. However, applicants must carefully review Section V.A for detailed
information on each Category and any leveraging requirements. The Categories that are
threshold-based, and funded by Ordinal, Category and Round, have a leveraging requirement
during Round 1. Match is optional for tie-breaking purposes. The rated and ranked Category
(Creation of Energy Efficient, Green Communities) has leveraging rating factors.
C. Other:
1. Eligible Uses of Funds. Unless modified elsewhere in this NOFA, CFRC funds can be used
for any eligible activity enumerated in 24 CFR Section 905.10(k).
2. Threshold Requirements for All Applications. See Section V.A for detailed information
on each Category and the threshold requirements that apply to each Category. The
following threshold requirements apply to ALL applicants, regardless of the Category for which
the applicant is applying. For purposes of this NOFA, they are referred to as Threshold
Requirements for All Applications. Please note that the individual Categories may have
Category-specific threshold requirements that applicants must also meet, in addition to the
Threshold Requirements for All Applications below. A false statement in an application is
grounds for denial or termination of an award and possible criminal, civil or administrative
sanctions. See Section VI.B.3(n) for enforcement requirements. See Section V.B for
information on the Reviews and Selection Process and, specifically, when (if at all) a threshold
requirement may be lifted.

27
a. Eligible Applicants. Applicants must meet the Eligible Applicant criteria provided in
Section III.A above.
b. Signatures. Requests must be signed by a person authorized to sign an ACC Amendment
on behalf of a PHA. Requests signed and submitted by a consultant or management agent on
behalf of the PHA will not be considered.
c. Dun and Bradstreet Data Universal Numbering System (DUNS) Number Requirement.
All applicants seeking funding directly from HUD must obtain a DUNS number and include the
number in their Application for Federal Assistance submission. Failure to provide a DUNS
number will prevent an applicant from obtaining an award. This policy is pursuant to the OMB
policy issued in the Federal Register on June 27, 2003 (68 FR 38402). HUD published its
regulation implementing the DUNS number requirement on November 9, 2004 (69 FR 65024).
A copy of the OMB Federal Register notice and HUD’s regulation implementing the DUNS
number can be found on HUD’s website at http://www.hud.gov/offices/adm/grants/duns.cfm.
When registering with Dun and Bradstreet, please be sure to use the organization’s legal name
that is used when filing a return with or making payments to the Internal Revenue Service.
Organizations should also provide the zip code using the zip code plus the four additional digits.
The DUNS number used in the application must be for the applicant organization.
d. Capacity.
(1) High Performer, if applicable. For Categories 1, 2 and 3, in order to be considered
for funding under the Threshold Funding Caps (i.e., approximately 50 percent of each Category
Funding Cap is reserved during Round 1 for eligible applications from High Performers),
applicants must be designated as High Performers. (During Round 1, the balance of the
Category Funding Cap will be available for remaining eligible applications from High

28
Performers and non-High Performers.) See Section II and Section V.B for further description.
For purposes of this NOFA, High Performer PHAs are those that were designated as High
Performers under: (1) the Public Housing Assessment System (PHAS) for the quarters ending
12/31/06, 3/31/07, 6/30/07 and 9/30/07, or (2) in the case of MTW agencies that did not report
into PHAS during those quarters, the agency’s MTW Agreement in place during those quarters.
See the following website for a listing of PHA designations: http://www.hud.gov/recovery/
(which will link to the Office of Capital Improvements website,
http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm). HUD may independently
validate this threshold. As noted above, this threshold requirement only applies in order to be
funded under the Threshold Funding Caps (i.e., 50 percent of each Category Funding Cap
reserved for High Performers) identified in Section II. Additionally, Section V.B provides
information on this point and indicates that it does not apply in Round 2. (For Category 4, High
Performer status is not a threshold requirement but is used as part of Rating Factor 5 (Section
V.A.4)).
(2) Compliance with Section 9(j) of the Act. Applicants that comply with the
obligation and expenditure requirements enumerated in Section 9(j) of the Act as outlined below
will be considered for funding. This threshold has been predetermined based on HUD data. PIH
has examined the obligation rate reported in the Line of Credit Control System (LOCCS) for all
grants with obligation end dates that fall between June 13, 2008 and May 28, 2009. PHAs that
failed to comply with the Section 9(j) requirement for 90% obligation as of the obligation end
date described above, do not comply with this Section 9(j) threshold. PIH has examined the
disbursement rates contained in the LOCCS system for all grants with disbursement end dates
that fall between June 13, 2008 and May 28, 2009: usually grants awarded in Federal Fiscal Year

29
2004. PHAs that have a remaining balance of greater than one percent of the grant amount or
$1,000 of the grant amount (whichever is larger) for all Capital Fund Program grants that have a
disbursement end date as described above do not comply with this threshold. This threshold can
be lifted in accordance with the criteria of Section V.B.
e. Compliance with Fair Housing and Civil Rights Laws.
(1) PHAs must comply with all applicable fair housing and civil rights requirements in
24 CFR 5.105(a).
(2) If you, the applicant:
(a) Have been charged with an ongoing systemic violation of the Fair Housing Act; or
(b) Are a defendant in a Fair Housing Act lawsuit filed by the Department of Justice
alleging an ongoing pattern or practice of discrimination; or
(c) Have received a letter of findings identifying ongoing systemic noncompliance 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, and the charge, lawsuit,
or letter of findings referenced in subparagraphs (a), (b), or (c) above has not been resolved to
HUD’s satisfaction before the application deadline, then you are ineligible and HUD will not
consider your application. HUD will determine if actions to resolve the charge, lawsuit, or letter
of findings taken before the application deadline are sufficient to resolve the matter. Examples
of actions that would normally be considered sufficient to resolve the matter include, but are not
limited to:
(i) A voluntary compliance agreement signed by all parties in response to a letter of
findings;
(ii) A HUD-approved conciliation agreement signed by all parties;

30
(iii)A consent order or consent decree; or
(iv) An issuance of a judicial ruling or a HUD Administrative Law Judge’s decision.
f. Affirmatively Furthering Fair Housing. Under section 808(e)(5) of the Fair Housing Act,
HUD has a statutory duty to administer the programs and activities relating to housing and urban
development in a manner affirmatively to further fair housing (AFFH). HUD requires the same
of its funding recipients. If you are a successful applicant, you will have a duty to affirmatively
further fair housing opportunities for classes protected under the Fair Housing Act. Protected
classes include race, color, national origin, religion, sex, disability, and familial status.
Applicants must provide an AFFH Certification as part of the Capital Fund Recovery
Competition grant application. The certification must state that, if awarded funds, the PHA
recipient will affirmatively further fair housing and comply with the requirements of 24 CFR
903.7(o).
g. Prohibition Against Lobbying Activities. Applicants are subject to the provisions of
Section 319 of Public Law 101-121 (approved October 23, 1989) (31 U.S.C. 1352) (the Byrd
Amendment), which prohibits recipients of federal contracts, grants, or loans from using
appropriated funds for lobbying the executive or legislative branches of the federal government
in connection with a specific contract, grant, or loan. In addition, applicants must disclose, using
Standard Form LLL (SF-LLL), “Disclosure of Lobbying Activities,” any funds, other than
federally appropriated funds, that will be or have been used to influence federal employees,
members of Congress, or congressional staff regarding specific grants or contracts.
h. Grant Administration. Applicants must certify that they will administer the grant in
accordance with all requirements of this NOFA and all requirements applicable to public
housing, including the 1937 Act, the Recovery Act, HUD regulations, the ACC, including all

31
amendments, and all other Federal statutory, Executive Order, and regulatory requirements as
such requirements may be amended from time to time.
i. No Supplanting of Funds. The applicant must certify that: (1) the CFRC funds, if awarded,
will not supplant expenditures from other Federal, State, or local sources or funds independently
generated by the grantee; and (2) the CFRC funds, if awarded, will not supplant any leverage
related to this grant, if any (that is, the grantee must have pursued and secured leverage to the
fullest extent possible in order to ensure that expenditures from other Federal, State, or local
sources or funds independently generated by the grantee are not supplanted). Regarding (2), for
example, if an agency had already committed to contributing $100,000 in services to the PHA’s
targeted project, the PHA cannot decline all or a portion of that $100,000 because it receives a
CFRC grant.
IV. Application and Submission Information:
A. Addresses to Request Application Package:
Applications must be submitted electronically. Applications must be downloaded from this
website: http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm.
Applications must be completed and submitted electronically by emailing them to the following
email address: [email protected], in accordance with the application
deadline date information in Section IV. Any technical corrections will be published in the
Federal Register and posted to http://www.hud.gov/recovery/ (which will link to the Office of
Capital Improvements website, http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm).
Frequently asked questions will be posted to http://www.hud.gov/recovery/ (which will link to
the Office of Capital Improvements website,
http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm).

32
B. Content and Form of Application Submission:
1. Applications must be submitted electronically, as described in Section IV.A above.
2. Electronic Application Submission Instructions.
a. HUD has established a Microsoft Outlook mailbox for receipt of CFRC electronic
applications: [email protected]. PHAs must send their applications in by email with attachments.
b. The application consists of an automated Excel workbook enabled with Visual Basic
Application code and .pdf files for documents that have to be signed. The primary source of the
data used to process the applications will be in the Excel workbook.
c. Once a PHA completes its data entry into the Excel spreadsheet, the PHA will follow the
instructions provided with the spreadsheet including the following:
(1) Create a new e-mail message to be sent to
[email protected];
(2) Put specific text in the subject line of the e-mail message in accordance with
instructions that will be provided at the time HUD makes the application available;
(3) Attach the Excel spreadsheet portion of the application to the e-mail;
(4) Print, complete and sign the certification forms and SF424
form provided to the applicant via .pdf;
(5) Scan the printed-completed-signed forms into a new .pdf(s);
(6) Attach the scanned .pdfs with all of the signed forms and documents required for the
application to the e-mail.
d. Once the applicant has followed the instructions in c. above, it will then send the e-mail to
[email protected]. HUD will provide the Microsoft Outlook team with a list

33
of e-mail addresses from PHAs that will be acceptable based on the e-mail address of the
Executive Director (or alternate) recorded in the PIC/IMS system. Applications sent from an email address other than that listed in the PIC/IMS system for the PHAs executive director or
alternate will be rejected by HUD’s e-mail system and such applications will not be considered
for funding.
e. HUD will provide a mechanism to confirm receipt of applications. Although HUD’s e-mail
system has adequate capacity to handle the anticipated volume of application submission emails, HUD encourages applicants to submit applications far enough in advance of deadlines to
receive confirmation that the application has been received and to take the necessary steps to
resubmit in the event that an application e-mail is not being received by HUD. HUD is not
responsible for e-mails that do not arrive at HUD’s e-mail server, in accordance with the
application deadlines identified in this NOFA.
3. Application Content and Organization. See Section V.A for detailed information on each
Category, including Application Content and Organization. Applicants must follow the
application content, organization and documentation requirements of this NOFA.
C. Submission Dates and Times:
a. Threshold-Based Applications. This NOFA announces the availability of CFRC grants
under four categories. The first application deadline date information applies only to the
following Categories: Improvements Addressing the Needs of the Elderly and/or Persons with
Disabilities; Public Housing Transformation; and Gap Financing for Projects that are Stalled Due
to Financing Issues. Applications for funding in these three categories will be funded on a
threshold basis as they are received, by Ordinal (order of receipt), Category and Round, in
accordance with Section V of this NOFA. The Department will begin accepting applications for

34
these three categories on June 22, 2009. The Department will continue to accept applications for
these three categories until 11:59:59 p.m. of the local time of the applicant August 18, 2009.
Applications for these three categories received outside of this timeframe will not be
reviewed by HUD and will not be eligible for funding. The first Ordinal will be assigned on
July 6, 2009; all applications received from June 22, 2009 through July 6, 2009 will all receive
the same Ordinal. HUD may begin to fund new grants starting on July 6, 2009. HUD will fund
applications as long as funds remain available, in accordance with the criteria of this NOFA.
b. Rated and Ranked Applications. This application deadline date information applies only to
the Category of Creation of Energy Efficient, Green Communities. The Department will begin
accepting applications for this NOFA category on June 22, 2009. The deadline for applications
for this Category is July 21, 2009. Applications will only be accepted until 11:59:59 p.m. of the
local time of the applicant on this date. Applications for this category received outside of this
timeframe will not be reviewed by HUD and will not be eligible for funding. Because the
Creation of Energy Efficient, Green Communities applications will be rated and ranked,
application reviews and funding determinations will not be made until after the deadline date for
this Category (July 21, 2009).
c. Incomplete Applications and Technical Deficiencies. See Section V.B, Reviews and
Selection Process, for detailed information on procedures related to incomplete applications and
curing technical deficiencies, as relevant.
D. Funding Restrictions:
1. Statutory Time Limits – Obligation and Expenditure of Funds: The obligation and
expenditure requirements found at section 9(j) of the 1937 Act regarding the obligation and

35
expenditure of Capital Funds do not apply. The Recovery Act provides for alternate obligation
and expenditure deadlines (and penalties) as follows:
a. HUD obligates the CFRC grant funding to grantees by September 30, 2009.
b. PHAs must obligate 100 percent of the grant funds awarded under this NOFA within 1 year
of the date on which funds become available to the PHA for obligation (which is the effective
date of the ACC amendment). If a PHA fails to comply with the 1-year obligation requirement,
HUD will recapture all remaining unobligated funds awarded to the PHA .
c. PHAs must expend at least 60 percent of the grant funds within 2 years of the date on which
funds become available to the PHA for obligation (which is the effective date of the ACC
amendment). If a PHA fails to comply with the 2-year expenditure requirement, HUD will
recapture the balance of the funds awarded to the PHA.
d. PHAs must expend 100 percent of the grant funds within 3 years of the date on which funds
become available to the PHA for obligation (which is the effective date of the ACC amendment).
If a PHA fails to comply with the 3-year expenditure requirement, HUD will recapture the
balance of the funds awarded to the PHA.
e. Extensions of the Obligation Deadlines: Extension of the obligation and expenditure
deadlines are not permitted under the Recovery Act. Additionally, if a PHA fails to obligate any
of its other (non-Recovery Act) Capital Fund grants during this time, an extension of the
obligation deadline for that grant will not be granted based solely on the justification that the
PHA was engaged in obligating Recovery Act funds, as it does not meet the criteria established
in section 9(j) of the 1937 Act.
2. Eligible Uses of Funds. Unless modified elsewhere in this NOFA, CFRC funds can be used
for any eligible activity enumerated in 24 CFR Section 905.10(k).

36
3. Ineligible Uses of Funds. Within the eligible uses of CFRC as described in this NOFA, the
PHA may not use these funds for the following:
a. Operating or rental assistance activities. Capital Funds awarded under the Recovery Act
cannot be transferred to or used for operations or rental assistance activities. These funds cannot
be transferred to Account 1406 Operations.
b. Routine maintenance activities.
c. Supplanting expenditures. Funds provided under this NOFA must serve to supplement and
not supplant expenditures from other Federal, State, or local sources or funds independently
generated by the grantee. Recovery Act funds may not supplant Capital Funds that have been
obligated to a project.
d. Any casino or other gambling establishment, aquarium, zoo, golf course, or swimming
pool. (See Section 1604 of the Recovery Act.)
e. Activities carried out on or before the date of the ACC amendment obligating the grant.
f. Luxury improvements, direct social services, costs funded by other programs.
g. Moving to Work Agency Requirements. Agencies participating in the Moving to
Work Demonstration (“MTW”) are authorized to combine operating and capital assistance
provided under section 9 and voucher assistance under section 8 of the United States Housing
Act of 1937 as part of the regular appropriations process. However, line item appropriations,
which are supplemental to the regular appropriations process, such as the Recovery Act, may be
used only for the specific purpose for which they were appropriated. Further, the Recovery Act
states that “notwithstanding any other provision of law, (1) funding provided under this heading
may not be used for operating or rental assistance activities.” This provision expressly overrides

37
the authority to combine funds contained in the MTW Authorizing statute. Accordingly, the
funds provided under the Recovery Act cannot be combined with an MTW agency’s operating
or voucher funds, or otherwise used for purposes, notwithstanding the agency’s status as
an MTW participant. Therefore, these funds cannot be assigned to Account 1492. To ensure that
all housing authorities follow the above terms of the Recovery Act, MTW agencies will be
expected to adhere to the same Recovery Act requirements as non-MTW agencies.
These will include mandatory reporting requirements, as PHAs will be expected to report
separately on Recovery Act expenditures on a quarterly basis.
4. Other Use Restrictions.
a. All expenditures from Account 1410 (Administration) are limited to 10 percent of the total
grant. A PHA may draw up to 10 percent of each expenditure reimbursement for administration
of the Recovery Act CFRC grant. Again, the total amount drawn down for administration is
capped at 10 percent of the grant. For mixed finance development, administrative costs may
only be 3 to 6 percent of the project. Note: The PHA must comply with the Recovery Act
reporting requirements for funds drawn for administration.
b. A PHA-wide management improvement may be funded where the PHA can demonstrate that
by correcting the management deficiency(ies) at the development(s) being modernized other
developments will benefit as well. Management Improvements must sustain physical/capital
improvements. For example, job training related to modernization would be eligible.
V. Application Review Information:
A. Capital Fund Recovery Competition Categories. For the first three Threshold-Based
NOFA categories HUD will select for funding the Recovery Act CFRC grant applications on a
threshold basis, by Ordinal, Category and Round. CFRC applications for the first three NOFA

38
categories are not rated; however, the Category for Creation of Energy Efficient, Green
Communities will be rated and ranked. Applicants must identify each CFRC application by its
appropriate Category, as described below. Each application must respond to a single Category;
e.g., do not include Category 1 activities in the same application as Category 2. Although
applicants may submit applications for Capital Funding for multiple projects, applicants must
submit a separate application for each project to be modernized/rehabilitated or developed . See
Section V.B for information on the Reviews and Selection Process and, specifically, when (if at
all) a threshold requirement, and/or other NOFA criteria, may be lifted.
1. Category 1 - Improvements Addressing the Needs of the Elderly and/or Persons with
Disabilities. The purpose of Category 1 is to address the needs of the elderly and/or persons
with disabilities through either improvements to: (1) public housing units; and/or (2) community
facilities which attract or promote the coordinated delivery of supportive services.
a. Eligible Category 1 Activities. Funds in this Category may be used to pay for any eligible
Capital Fund expenses, including substantial rehabilitation, acquisition and construction, as
defined in 24 CFR Parts 905, 941 and 968, that help achieve the Category objective of
addressing the needs of the elderly and/or persons with disabilities through improvements to
public housing units and/or community facilities, specifically the following activity types:
(1) Modifications to dwelling units to make them fully accessible in accordance with the
Uniform Federal Accessibility Standards (UFAS).
(2) Conversion of dwelling units to provide space for service providers targeted to the
elderly and/or persons with disabilities.
(3) Improvements to non-dwelling areas to make them accessible and ADA-compliant.
(4) Improvements to or construction of non-dwelling areas to provide additional space

39
for supportive services targeted to the elderly and/or persons with disabilities.
b. Threshold Requirements. Applicants must meet all threshold requirements in order to be
considered for funding under this Category, subject to the requirements of Section V.B, Reviews
and Selection Process, and unless otherwise noted in this NOFA. Your application will not be
eligible for funding unless each threshold requirement listed in this NOFA is included in your
application. See Section V.B for instructions on incomplete applications.
(1) Threshold Requirements for All Applications. Applicants must comply with all
Threshold Requirements for All Applications in Section III.C.2 in order to be considered for
funding. Applicants must certify to the applicability of each threshold in their application.
(2) Category Specific Threshold Requirements. Applicants must comply with all
Category Specific Threshold Requirements that are applicable based on the activity type in this
section in order to be considered for funding. The following threshold requirements apply to all
of the activity types in this Category.
(a) Eligible Activities. The applicant must certify that the CFRC funds will only be
used to pay for eligible Capital Fund activities and expenses, including substantial rehabilitation,
acquisition and construction, as defined in 24 CFR Parts 905, 941 and 968, that address the needs
of the elderly and/or persons with disabilities through improvements to: (1) public housing units;
and/or (2) community facilities which attract or promote the coordinated delivery of supportive
services.
(b) The applicant must certify that it is in compliance with any existing Voluntary
Compliance Agreement (VCA) and/or Court Order (if applicable) or that successful
accomplishment of the proposed activities under the CFRC grant will bring the applicant into, or
closer to, compliance.

40
(c) Program Schedule. Applicants must provide a program schedule for their proposed
program which demonstrates compliance with the obligation and expenditure deadlines
established in Section IV.E. The program schedule must identify all the major milestones to be
achieved by the program including but not limited to the date construction/activities will
commence and the date construction/activities will be completed. It should also include the date
the funds will be obligated, the date 60 percent of the funds will be expended, and the date 100
percent of the funds will be expended.
(d) Budget, Leverage and Financing Thresholds:
(i)

PHAs must submit in their application a budget for the activities it will implement

under this CFRC grant, indicating committed sources and projected uses. The budget must
propose reasonable costs in relation to anticipated results.
(ii) Commitments for permanent sources must equal projected uses. The project must be
financially feasible, as proposed (including any requested TDC/HCC waiver). In the case of
mixed finance development, the project must be financially feasible as defined by the following
costs control standards:
(A) Your hard development costs must be realistically developed through the use of
technically competent methodologies, including cost estimating services, and should be
comparable to industry standards for the kind of construction to be performed in the proposed
geographic area.
(B) Your cost estimates must represent an economically viable preliminary plan for
designing, planning, and carrying out your proposed activities, in accordance with local costs of
labor, materials, and services.

41
(C) Your projected soft costs must be reasonable and comparable to industry standards.
Upon award, soft costs will be subject to HUD’s Cost Control and Safe Harbor Standards. These
standards provide specific limitations on such costs as developer's fees (between 9 and 12
percent), PHA administration/consultant cost (no more than 3 to 6 percent of the total project
budget), contractor's fee (6 percent), overhead (2 percent), and general conditions (6 percent).
(iii) PHAs must certify that each funding source identified in the application is firmly
committed, which means that the amount of the resource and its dedication to CFRC grant
activities is explicit, in writing, and signed by a person authorized to make the commitment. The
commitment may only be conditioned on receipt of the grant and the completion of due diligence
satisfactory to the lender or investor, or other entity controlling the committed funds, and the
ability of the PHA to reach a financial closing for the project in question.
(iv) The budget must demonstrate that upon completion, permanent sources of public
housing funds, including CFRC grant funding, will not exceed a pro rata share of the costs for
constructing public housing units/facilities (the percentage of public housing funds to total funds
dedicated to unit production/facilities production may not exceed the percentage of public
housing units/facilities to total units/facilities).
(v) TDC/HCC Waivers, if applicable. Applicants must comply with the applicable Total
Development Costs (TDC) and Housing Cost Cap (HCC) limits (including those approved under
MTW). TDC and/or HCC may be waived for any PHA in funded in this category. If a
TDC/HCC waiver is requested, PHAs must submit a request with a detailed explanation and
justification as part of this grant application and HUD will approve on a case-by-case basis. If a
request to exceed TDC/HCC is denied, the application will be denied.
(vi) Leverage for applications submitted for Round 1 consideration only. See the

42
definition of leverage in Section I.C. The applicant must certify that it has leveraged funds for
the application at a ratio of not less than $0.05 of leverage funds to $1.00 of CFRC grant funds.
Also, the applicant must indicate in its application the actual dollar amount of leveraged funds
(e.g., if the PHA actually has firm commitments for $50,000 in leverage, this dollar amount must
be indicated in the application). Separate from purposes of the Round 1 leveraging threshold
requirement, and as noted in Section V.B, the actual ratio of leverage funds to every $1.00 of
CFRC grant funds (which HUD will calculate to four decimal places) will be used, as needed, for
tie-breaking purposes (e.g., an applicant might have an actual ratio of $0.0669 of leverage funds
to $1.00 of CFRC grant funds). The leveraged funds must comply with the definition of firmly
committed and the allowable conditions in section (iii) above. The leverage commitment
documents must be kept on file by the applicant. Applications without the required amount of
leverage commitments submitted during Round 1 will be held for consideration until Round 2.
(vii) Match for tie-breaking purposes, if applicable. See the definition of match in
Section I.C. While match is NOT a threshold requirement to be funded, there will be a place in
the application for the applicant to indicate the actual dollar amount of match resources (e.g., if
the PHA actually has firm commitments for $30,000 of match, this dollar amount must be
indicated in the application). As noted in Section V.B, the actual ratio of match funds to every
$1.00 of CFRC grant funds (which HUD will calculate to four decimal places) will be used, as
needed, for tie-breaking purposes (e.g., an applicant might have an actual ratio of $0.0402 of
match funds to $1.00 of CFRC grant funds). The match funds must comply with the definition
of firmly committed and the allowable conditions in section (iii) above. The match commitment
documents must be kept on file by the applicant.

43
(3) Activity Type Specific Threshold Requirements. As indicated in the Eligible
Activities Section above, applicants may choose which activities in Category 1 for which they
are requesting grant funding; they do not have to propose all of the activities listed. For this
Category, applicants can apply for more than one activity type in one application. However,
applicants must comply with the Activity Type Specific Threshold Requirements for the
activities they do identify in their application. Applicants must provide in their application a
completed and signed Activity Type Specific Threshold Requirements certification form.
(a) Activity Type 1 - Modifications to dwelling units to make them fully accessible in
accordance with the UFAS. If applicants indicate they will implement this Activity Type 1, they
must meet the following Activity Type Specific Threshold Requirements:
(i) The applicant must have identified the unit(s) that will be modified and made UFAS
compliant.
(ii) All of the units that the applicant identified for this activity type must be out of
compliance with UFAS.
(iii) The applicant must commit to notify current residents in units that will be modified
that their units will be modified to be made accessible (including the amount of time anticipated
to complete the modification) in accordance with UFAS within one (1) month of grant award.
(b) Activity Type 2 - Conversion of dwelling units to provide space for service
providers targeted to the elderly and/or persons with disabilities. If applicants indicate they will
implement this Activity Type 2, they must meet the following Activity Type Specific Threshold
Requirements:

44
(i) The applicant must have identified the unit(s) that will be converted in order to attract
or promote the coordinated delivery of supportive services by local service providers to residents
who are elderly and/or persons with disabilities.
(ii) The identified unit(s) must be located in a project, or a building(s) in the project you
are applying for, where at least sixty (60) percent of the residents are either elderly and/or
persons with disabilities.
(iii) The applicant must have existing partnerships with local supportive service
providers, such as mental/physical health providers, senior centers, and others, that have
committed, in writing, to providing on-site services to the elderly and/or disabled residents.
(iv) The applicant must commit to use a portion of its operating subsidy, standard capital
fund, combined MTW funds, existing ROSS-Elderly and Persons with Disabilities grant funding,
and/or ROSS-Service Coordinator (if funded to serve elderly) funding for service coordination to
ensure that community facilities are used for their intended purpose. Please note this
commitment may not be counted as leverage or match.
(v) At some point no more than 12 months prior to submitting the application, the
applicant must have informed project residents of the possibility of converting the units into
space for service providers and given them an opportunity to provide feedback to the applicant.
The applicant must maintain a record of both the communication with the project residents and
any feedback received.
(c) Activity Type 3 - Improvements to non-dwelling areas to make them accessible and
ADA-compliant. If applicants indicate they will implement this Activity Type 3, they must meet
the following Activity Specific Threshold Requirements:

45
(i) The applicant must identify the improvements that will be made in order to make nondwelling areas accessible and ADA-compliant as well as identify the specific non-dwelling areas
that will be improved.
(ii) Community facilities to be improved under this Activity Type must be part of a
public housing project and, if open to use by non-public housing residents, must be used a
majority of the time by public housing residents who are elderly and/or persons with disabilities.
(d) Activity Type 4 - Improvements to or construction of non-dwelling areas to provide
additional space for supportive services targeted to the elderly and/or or persons with
disabilities. If applicants indicate they will implement this Activity Type 4, they must meet the
following Activity Type Specific Threshold Requirements:
(i) The applicant must identify and describe the non dwelling areas to be improved or
constructed (e.g., community facilities) as well as the nature and extent of the construction or
improvement in order to attract or promote the coordinated delivery of supportive services by
local service providers to residents who are elderly and/or persons with disabilities.
(ii) Community facilities must be part of a public housing project and, if open to use by
non-public housing residents, must be used a majority of the time by public housing residents
who are elderly and/or persons with disabilities.
(iii) The identified non-dwelling area(s) must be located in a project, or be part of a
building(s) in the project you are applying for, where at least sixty (60) percent of the residents
are either elderly or persons with disabilities.
(iv) The applicant must have existing partnerships with local supportive service
providers, such as mental/physical health providers, senior centers, and others that have
committed, in writing, to providing on-site services to the elderly/disabled residents.

46
(v) The applicant must commit to use a portion of its operating subsidy, standard capital
fund, combined MTW funds, existing ROSS-Elderly and Persons with Disabilities grant funding,
and/or ROSS-Service Coordinator (if funded to serve elderly) funding for service coordination to
ensure that community facilities are used for their intended purpose. Please note this
commitment may not be counted as leverage or match.
c. Application Content and Organization.
(1) Applicants for funding under this Category must submit their application
electronically in accordance with Section IV.B. and include in their application the following:
(a) A completed-signed Application for Federal Assistance (SF-424) scanned into a .pdf
document
(b) A completed-signed anti-lobbying certification (SF LLL) scanned into a .pdf
document
(c) a completed Microsoft Excel CFRC Application spreadsheet: note that the
spreadsheet will contain the following:
(i) Program Overview Narrative. Applicants must provide a brief description of their
proposed program. Activities described must follow the criteria of the Eligible Activities and
Thresholds for this Category above. The Program Overview must contain the following
information: A description of the proposed program, including the purpose and activities, to be
funded by the CFRC grant. The description must be of sufficient detail so as to ensure that the
CFRC grant funds will not supplant expenditure from other Federal, State, or local sources or
funds independently generated by the grantee. An identification of the participating parties, if
applicable.
(ii) A checklist for certifying to threshold requirements for all applications

47
(iii) A checklist for certifying to category specific threshold requirements
(iv) A checklist for certifying to activity specific threshold requirements
(v) A Budget (HUD form 50075.1, Annual Statement/Performance and Evaluation
Report). Review the Budget, Leverage and Financing Thresholds above (under the Category
Specific Threshold Requirements section) and the Funding Restrictions section of the NOFA
(Section IV.D).
(vi) TDC/HCC Waiver Request, if any. The TDC/HCC waiver request must include: the
amount requested for approval, indicating the current TDC/HCC limit and the difference
between the two, and a justification of why this waiver is needed and why the current TDC/HCC
is insufficient. As relevant, an explanation of extraordinary site costs must be included with the
request.
(vii) Program Schedule. Review the Program Schedule Threshold Requirement above
(under the Category Specific Threshold Requirements section).
(2) HUD will not fund incomplete applications. If an application is missing any aspect,
the application will be considered non-responsive to the NOFA, thus leaving the application
ineligible for review. If an application needs revisions to meet requirements, the application
shall be deemed incomplete and therefore ineligible for funding. Applicants notified by HUD of
incomplete or nonresponsive applications must resubmit the application. Resubmission shall be
placed in the funding queue based upon the date for receipt of the resubmission. See Section
V.B for detailed information on the Reviews and Selection Process.
(3) The commitments made for each grant application will be strictly monitored and
enforced. A false statement in an application is grounds for denial or termination or recapture of

48
an award and possible criminal, civil or administrative sanctions. See Section VI.B.3(n) for
enforcement requirements.
2. Category 2 - Public Housing Transformation. The purpose of Category 2 is to provide
funding to activities that help redevelop public housing that is distressed and a blighting
influence on the surrounding community. The surrounding community must be either a stable
and well functioning community, or one that lacks resources but has already been targeted for
revitalization by the locality. These grants should address the blighting factors of the public
housing through either renovation of the public housing or through demolition and
redevelopment of new public housing or a mixture of public housing and non-public housing on
the site.
a. Eligible Activities. Funds in this Category may be used to pay for any eligible Capital Fund
expenses, as defined in 24 CFR Parts 905, 941 and 968, that help achieve the Category objective
of redeveloping public housing that is distressed and a blighting influence on the surrounding
community. The surrounding community must be either a stable and well functioning
community, or one that lacks resources but has already been targeted for revitalization by
localities.
(1) Development activities (24 CFR Part 941).
(2) Rehabilitation activities including the design and construction of public housing units,
including 24 CFR Parts 905 and 968
(3) The redevelopment activity may include demolition/disposition or renovation of
existing public housing units. However, HUD believes that there should be a reasonable amount
of replacement housing for units that are demolished or disposed of. See Category Specific

49
Threshold Requirements below, Section V.A.2.b(2)(i), for a threshold requirement related to
replacement housing.
(4) Relocation for residents displaced as a result of construction, rehabilitation, or
acquisition activities described above, including reasonable moving expenses, as well as
relocation counseling and other services to help residents relocate.
b. Threshold Requirements. Applicants must meet all threshold requirements in order to be
considered for funding under this Category, subject to the requirements of Section V.B, Reviews
and Selection Process, and unless otherwise noted in this NOFA. Your application will not be
eligible for funding unless each threshold requirement listed in this NOFA is included in your
application. See Section V.B for instructions on incomplete applications.
(1) Threshold Requirements for All Applications. Applicants must comply with all
Threshold Requirements for All Applications in Section III.C.2 in order to be considered for
funding, unless otherwise noted in this NOFA. Applicants must certify to the applicability of
each threshold in their application.
(2) Category Specific Threshold Requirements. Applicants must comply with all
Category Specific Threshold Requirements in this section in order to be considered for funding.
The following threshold requirements apply to all of the activities in this Category. Applicants
must certify to the applicability of each threshold in their application.
(a) Eligible Activities. The applicant must certify that the CFRC funds will only be used
to pay for eligible Capital Fund activities and expenses, as defined in 24 CFR Part 905, 941 and
968, that help achieve the Category objective of redeveloping public housing that is distressed
and a blighting influence on a surrounding community, which includes communities which are

50
stable and well functioning, as well as those that are distressed but have already been targeted for
revitalization by localities.
(b) The applicant must identify the distressed project that will be either removed from the
inventory (or has already been removed from the inventory) and replaced or that will be
revitalized. Note, if the applicant intends to remove an existing project (or a portion of a project)
and replace it, the applicant must also identify the replacement project. For all projects, the
applicant must specify the number, the bedroom count and square foot size of the units that it
will either develop or revitalize pursuant to the CFRC grant if awarded.
(c) The activities included in the proposed project must be new (as opposed to the Gap
Financing Category), for which no funds have been previously obligated.
(d) The plan proposed to be funded by this grant must be consistent with the locality’s
Comprehensive Plan.
(e) The plan proposed to be funded by this grant must target either an existing public
housing project or a former public housing project that has been demolished, but not replaced.
(f) The applicant must certify that an Architect or Engineer not employed by the
applicant has certified that the public housing project targeted by this proposed project
meets (or met, in the case of already-demolished projects) the definition of physical distress
which is: The project requires major redesign, reconstruction or redevelopment, or partial or total
demolition, to correct serious deficiencies in the original design (including inappropriately high
population density), problems resulting from deferred maintenance, general physical deterioration,
obsolescence of major systems, or other deficiencies in the physical plant of the project. The
targeted project may already have been demolished. If demolished, demolition must have
been legally done and no HUD replacement housing assistance may have been provided, other

51
than tenant-based assistance and/or Replacement Housing Factor (RHF) funds, for the demolished
units. The targeted project must have satisfied the definition of severe physical distress (as
defined above) as of the day the demolition was approved by HUD.
(g) The existing public housing project, or former public housing project that has been
demolished, must be located in either:
(i) A stable, well-functioning community, where services and community infrastructure,
such as transportation services, access to retail, employment opportunities, health services, parks
and recreation, etc., already exist, but whose continued growth is being negatively impacted by
the presence of the distressed public housing project; or
(ii) A community that lacks resources, but has already been targeted by the local
government or other responsible entity for revitalization, including such activities as
improvements to public transportation, support for retail development, job creation for residents,
pedestrian or bikeways, parks or recreation, housing renovation/development, health care
services, or other activities that enhance the quality of life. These types of activities must have
commenced prior to the issuance of the NOFA.
(h) The units proposed to be completed as a result of this grant must be located in a
census tract (using data from the 2000 Census) with a concentration of poverty that does not
exceed 40 percent. These units can be located on or off of the existing (i.e., original) public
housing project site. This means that if the existing public housing project is located in a census
tract that has a concentration of poverty that exceeds 40 percent, proposed units could not be
built back on the existing public housing site (rather, proposed units could be built off site in a
census tract that complies with a concentration of poverty that does not exceed 40 percent).
However, in cases where the existing public housing project occupies an entire census tract, and

52
that census tract has a concentration of poverty that exceeds 40 percent, but ALL of the census
tracts that surround and are physically adjacent to the existing public housing site are in census
tracts that have concentrations of poverty that do not exceed 40 percent, only then could the PHA
build proposed units back on the existing site. If the units proposed to be completed as a result
of this grant will be completed off site, they must be located in either:
(i) A stable, well-functioning community, where services and community infrastructure,
such as transportation services, access to retail, employment opportunities, health services, parks
and recreation, etc., already exist; or
(ii) A community that lacks resources, but has already been targeted by the local
government or other responsible entity for revitalization, including such activities as
improvements to public transportation, support for retail development, job creation for residents,
pedestrian or bikeways, parks or recreation, housing renovation/development, health care
services, or other activities that enhance the quality of life. These types of activities must have
commenced prior to the issuance of the NOFA.
(i) HUD believes that there should be a reasonable amount of replacement housing for
units that are demolished or disposed of. Applicants under this category must certify that, if
funded, they will build a number of public housing units that is equivalent to the total grant
amount divided by the applicable Total Development Cost (TDC) limit (i.e. if the grant is $10
million and the TDC limit is $100,000 per unit, the recipient PHA would have to build at least
100 public housing units). Applicants must indicate in their application what this number would
be. For the purposes of establishing the targeted number of units, the Department will calculate
the number of units to be replaced without any adjustments for demolition costs or TDC waivers
even if those apply to the grant in question (i.e. even if the Department waives the TDC to permit

53
an increase from $100,000 per unit to $115,000 per unit for the grant, the recipient would still
have to produce the number of units based on the unadjusted $100,000 TDC).
(j) Program Schedule. Applicants must provide a program schedule for their proposed
program which demonstrates compliance with the obligation and expenditure deadlines
established in Section IV.E. The program schedule must identify all the major milestones to be
achieved by the program. These should include, at a minimum, closing dates, construction start,
construction completion, and lease-up. It should also include the date the funds will be
obligated, the date 60 percent of the funds will be expended, and the date 100 percent of the
funds will be expended.
(k) Budget, Leverage and Financing Thresholds:
(i)

PHAs must submit in their application a budget for the activities it will implement

under this CFRC grant, indicating committed sources and projected uses.
(ii)

Commitments for permanent sources must equal projected uses. The project must

be financially feasible, as proposed (including any requested TDC/HCC waiver), as defined by
the following costs control standards:
(A) Your hard development costs must be realistically developed through the use of
technically competent methodologies, including cost estimating services, and should be
comparable to industry standards for the kind of construction to be performed in the proposed
geographic area.
(B) Your cost estimates must represent an economically viable preliminary plan for
designing, planning, and carrying out your proposed activities, in accordance with local costs of
labor, materials, and services.

54
(C) Your projected soft costs must be reasonable and comparable to industry standards.
Upon award, soft costs will be subject to HUD’s Cost Control and Safe Harbor Standards. These
standards provide specific limitations on such costs as developer's fees (between 9 and 12
percent), PHA administration/consultant cost (no more than 3 to 6 percent of the total project
budget), contractor's fee (6 percent), overhead (2 percent), and general conditions (6 percent).
(iii)

PHAs must certify that each funding source identified in the application is firmly

committed, which means that the amount of the resource and its dedication to CFRC grant
activities is explicit, in writing, and signed by a person authorized to make the commitment. The
commitment may only be conditioned on receipt of the grant and the completion of due diligence
satisfactory to the lender or investor, or other entity controlling the committed funds, and the
ability of the PHA to reach a financial closing for the project in question.
(iv)

The budget must demonstrate that upon completion, permanent sources of public

housing funds, including Recovery Act funding, will not exceed a pro rata share of the costs for
constructing public housing units (the percentage of public housing funds to total funds
dedicated to unit production may not exceed the percentage of public housing units to total
units).
(v)

TDC/HCC Waivers, if applicable. Applicants must comply with the applicable

Total Development Cost (TDC) and Housing Cost Cap (HCC) limits (including those approved
under MTW). TDC and/or HCC may be waived for any PHA in funded in this category. If a
TDC/HCC waiver is requested, PHAs must submit a request with a detailed explanation and
justification as part of this grant application and HUD will approve on a case-by-case basis. If a
request to exceed TDC/HCC is denied, the application will be denied.
(vi)

Leverage for applications submitted for Round 1 consideration only. See the

55
definition of leverage in Section I.C. The applicant must certify that it has leverage funds for the
application at a ratio of not less than $0.25 of leverage funds to $1.00 of CFRC grant funds.
Also, the applicant must indicate in its application the actual dollar amount of leverage funds
(e.g., if the PHA actually has firm commitments for $3,500,000 in leverage, this dollar amount
must be indicated in the application). Separate from purposes of the Round 1 leveraging
threshold requirement, and as noted in Section V.B, the actual ratio of leverage funds to every
$1.00 of CFRC grant funds (which HUD will calculate to four decimal places) will be used, as
needed, for tie-breaking purposes (e.g., an applicant might have an actual ratio of $0.3500 of
leverage funds to $1.00 of CFRC grant funds). The leverage funds must comply with the
definition of firmly committed and the allowable conditions in section (iii) above. The leverage
commitment documents must be kept on file by the applicant. Applications without the required
amount of leverage commitments submitted during Round 1 will be held for consideration until
Round 2.
(vii) Match for tie-breaking purposes, if applicable. See the definition of match in
Section I.C. While match is NOT a threshold requirement to be funded, there will be a place in
the application for the applicant to indicate the actual dollar amount of match resources (e.g., if
the PHA actually has firm commitments for $750,000 of match, this dollar amount must be
indicated in the application). As noted in Section V.B, the actual ratio of match funds to every
$1.00 of CFRC grant funds (which HUD will calculate to four decimal places) will be used, as
needed, for tie-breaking purposes (e.g., an applicant might have an actual ratio of $0.0750 of
match funds to $1.00 of CFRC grant funds). The match funds must comply with the definition
of firmly committed and the allowable conditions in section (iii) above. The match commitment
documents must be kept on file by the applicant.

56
c. Application Content and Organization.
(1) Applicants for funding under this Category must submit their application
electronically in accordance with Section IV.B. and include in their application the
following:
(a) A completed-signed Application for Federal Assistance (SF-424)
(b) A completed-signed anti-lobbying certification (SF LLL) scanned into a .pdf
document
(c) a completed Microsoft Excel CFRC Application spreadsheet: note that the
spreadsheet will contain the following:
(i) Program Overview Narrative. Applicants must provide a brief description of their
proposed program. Activities described must follow the criteria of the Eligible Activities and
Thresholds for this Category above. The Program Overview must contain the following
information: A description of the proposed program, including the purpose and activities, to be
funded by the CFRC grant. The description must be of sufficient detail so as to ensure that the
CFRC grant funds will not supplant expenditure from other Federal, State, or local sources or
funds independently generated by the grantee. It should also contain the following:
(A) Description of the condition of the targeted public housing project, specifically
identifying elements of distress.
(B) Description of the surrounding community and the impact of the targeted public
housing project on the community.
(C) Description of the proposed redevelopment activity, including the number of units to
be renovated, demolished, and/or constructed.
(D) Identification of development partners and the role of each.

57
(ii) A checklist for certifying to threshold requirements for all applications
(iii) A checklist for certifying to category specific threshold requirements
(iv) Budget. Construction period and permanent sources and uses schedules, as well as a
completed TDC/HCC analysis. Review the Budget, Leverage and Financing Thresholds above
(under the Category Specific Threshold Requirements section) and the Funding Restrictions
section of the NOFA (Section IV.D). If the project exceeds TDC/HCC limits, the application
must include a request for a waiver of TDC/HCC limits. If costs exceed TDC/HCC limits and a
waiver is not requested, or a waiver request is made but not approved by HUD, the application
shall be rejected.
(v) TDC/HCC Waiver Request, if any. The TDC/HCC waiver request must include: the
amount requested for approval, indicating the current TDC/HCC limit and the difference
between the two, and a justification of why this waiver is needed and why the current TDC/HCC
is insufficient. As relevant, an explanation of extraordinary site costs must be included with the
request.
(vi) Program Schedule. Review the Program Schedule Threshold Requirement above
(under the Category Specific Threshold Requirements section).
(2) HUD will not fund incomplete applications. If an application is missing any aspect,
the application will be considered non-responsive to the NOFA, thus leaving the application
ineligible for review. If an application needs revisions to meet requirements, the application
shall be deemed incomplete and therefore ineligible for funding. Applicants notified by HUD of
incomplete or nonresponsive applications must resubmit the application. Resubmission shall be
placed in the funding queue based upon the date and time for receipt of the resubmission. See
Section V.B for detailed information on the Reviews and Selection Process.

58
(3) The commitments made for each grant application will be strictly monitored. A false
statement in an application is grounds for denial or termination or recapture of an award and
possible criminal, civil or administrative sanctions. See Section VI.B.3(n) for enforcement
requirements.
3. Category 3 - Gap Financing for Projects that are Stalled due to Financing Issues. The
purpose of Category 3 is to provide funding to positively impact the availability of affordable
rental housing by filling the capital investment gap for redevelopment or replacement housing
projects which are ready to proceed but are stalled due to the inability to obtain anticipated
private capital.
a. Eligible Activities. The following are eligible activities for which funds available under this
Category may be used. Applicants do not have to propose all of these activities but must indicate
which they plan to implement in their application.
(1) Any eligible activity under the development regulations at 24 CFR 941, including:
(a) Development of public housing replacement units; and
(b) Mixed-finance modernization; and/or
(c) Construction or rehabilitation of community facilities or other non-dwelling space,
provided that this work is completed as part of a project that contains public housing replacement
units;
(2) Relocation for residents displaced as a result of construction, rehabilitation, or
acquisition activities described above, including reasonable moving expenses, as well as
relocation counseling and other services to help residents relocate;
(3) Demolition of dwelling units or non-dwelling structures or items related to the
construction, rehabilitation, or acquisition activities described in this category, including the

59
abatement of environmentally hazardous materials. If the proposed activity includes the
demolition and/or disposition of public housing, the PHA must have received demolition and/or
disposition approval from HUD no later than the date of the publication of the NOFA. This must
be certified in the application;
(4) Infrastructure development related to the construction, rehabilitation or acquisition of
public housing;
(5) Bridge loans provided that:
(a) PHAs will need to meet pro rata share test at end of construction period; and
(b) Mixed Finance program income rules will apply to bridge loan repayments.
(6) Applicants must follow their applicable Total Development Costs (TDC) and
Housing Cost Cap (HCC) limits (including those approved under MTW). TDC and/or HCC may
be waived for any PHA funded in this Category. PHAs must submit the TDC/HCC waiver
requests as part of this grant application and HUD will approve them on a case-by-case basis. If
a request to exceed TDC/HCC is denied, the application will be denied.
b. Threshold Requirements. Applicants must meet all threshold requirements in order to be
considered for funding under this Category, subject to the requirements of Section V.B, Reviews
and Selection Process, and unless otherwise noted in this NOFA. The application will not be
eligible for funding unless each threshold requirement listed in this NOFA is included in the
application. See Section V.B for instructions on incomplete applications.
(1) Threshold Requirements for All Applications. Applicants must comply with all
Threshold Requirements for All Applications in Section III.C.2 in order to be considered for
funding. Applicants must certify to the applicability of each threshold in their application.

60
(2) Category Specific Threshold Requirements. Applicants must comply with all
Category Specific Threshold Requirements in this section in order to be considered for funding.
The following threshold requirements apply to all of the activities in this Category.
(a) As relevant, the applicant must: identify the project that is to either be removed (or
has been removed) from the inventory and replaced or that will be revitalized once a CFRC grant
fills a financing gap; or identify the project that will be developed once a CFRC grant fills a
financing gap. If the applicant intends to remove the project and replace it, the applicant must
also identify the replacement project. The applicant must specify the number of units, the
bedroom count distribution and square foot size distribution of the units that it will either
develop or revitalize pursuant to the CFRC grant if awarded.
(b) Projects must be those for which the applicant had obtained commitments from
sources of private financing, including Low Income Housing Tax Credits (LIHTC) or volume
bond cap allocations, but the financing commitments have been withdrawn or the applicant has
been unable to obtain the necessary financing to fully fund the proposed activity (due to the
prohibition against supplanting, the cause for the withdrawal or insufficiency may not be related
to the PHA’s receipt of Recovery Act funds).
(c) Eligible Activities. The applicant must certify that the CFRC funds will only be used
to pay for eligible Capital Fund activities and expenses, as defined in 24 CFR Part 905, 941 and
968, in order to positively impact the availability of affordable rental housing by filling the
capital investment gap for redevelopment or replacement housing projects which are ready to
proceed but are stalled due to the inability to obtain anticipated private capital.
(d) Program Schedule. Applicants must provide a program schedule for their proposed
program which demonstrates compliance with the obligation and expenditure deadlines

61
established in Section IV.E. The program schedule must identify all the major milestones to be
achieved by the project. These should include, at a minimum, closing dates, construction start,
construction completion, and lease-up. It should also include the date the funds will be
obligated, the date 60 percent of the funds will be expended, and the date 100 percent of the
funds will be expended.
(e) Budget, Leverage and Financing Thresholds:
(i)

PHAs must submit in their application a budget for the activities it will implement

under this CFRC grant, indicating sources (committed funds and needed gap financing through
this NOFA) and projected uses. The budget must propose reasonable costs in relation to
anticipated results.
(ii) Commitments for permanent sources must equal projected uses. The project must
be financially feasible, as proposed (including any requested TDC/HCC waiver), as defined by
the following costs control standards:
(A) Your hard development costs must be realistically developed through the use of
technically competent methodologies, including cost estimating services, and should be
comparable to industry standards for the kind of construction to be performed in the proposed
geographic area.
(B) Your cost estimates must represent an economically viable preliminary plan for
designing, planning, and carrying out your proposed activities, in accordance with local costs of
labor, materials, and services.
(C) Your projected soft costs must be reasonable and comparable to industry standards.
Upon award, soft costs will be subject to HUD’s Cost Control and Safe Harbor Standards. These
standards provide specific limitations on such costs as developer's fees (between 9 and 12

62
percent), PHA administration/consultant cost (no more than 3 to 6 percent of the total project
budget), contractor's fee (6 percent), overhead (2 percent), and general conditions (6 percent).
(iii) PHAs must certify that each funding source (except gap financing requested
through this NOFA) identified in the application is firmly committed, which means that the
amount of the resource and its dedication to CFRC grant activities is explicit, in writing, and
signed by a person authorized to make the commitment. The commitment may only be
conditioned on receipt of the grant and the completion of due diligence satisfactory to the lender
or investor, or other entity controlling the committed funds, and the ability of the PHA to reach a
financial closing for the project in question.
(iv) The budget must demonstrate that upon completion, permanent sources of public
housing funds, including Recovery Act funding, will not exceed a pro rata share of the costs for
constructing public housing units (the percentage of public housing funds to total funds
dedicated to unit production may not exceed the percentage of public housing units to total
units).
(v) TDC/HCC Waivers, if applicable. Applicants must comply with the applicable
Total Development Costs (TDC) and Housing Cost Cap (HCC) limits (including those approved
under MTW). TDC and/or HCC may be waived for any PHA in funded in this category. If a
TDC/HCC waiver is requested, PHAs must submit a request with a detailed explanation and
justification as part of this grant application and HUD will approve on a case-by-case basis. If a
request to exceed TDC/HCC is denied, the application will be denied.
(vi) Leverage for applications submitted for Round 1 consideration only. See the
definition of leverage in Section I.C. The applicant must certify that it has leverage funds for the
application at a ratio of not less than $0.25 of leverage funds to $1.00 of CFRC grant funds.

63
Also, the applicant must indicate in its application the actual dollar amount of leverage funds
(e.g., if the PHA actually has firm commitments for $3,500,000 in leverage, this dollar amount
must be indicated in the application). Separate from purposes of the Round 1 leveraging
threshold requirement, and as noted in Section V.B, the actual ratio of leverage funds to every
$1.00 of CFRC grant funds (which HUD will calculate to four decimal places) will be used, as
needed, for tie-breaking purposes (e.g., an applicant might have an actual ratio of $0.3500 of
leverage funds to $1.00 of CFRC grant funds). The leverage funds must comply with the
definition of firmly committed and the allowable conditions in section (iii) above. The leverage
commitment documents must be kept on file by the applicant. Applications without the required
amount of leverage commitments submitted during Round 1 will be held for consideration until
Round 2.
(vii) Match for tie-breaking purposes, if applicable. See the definition of match in
Section I.C. While match is NOT a threshold requirement to be funded, there will be a place in
the application for the applicant to indicate the actual dollar amount of match resources (e.g., if
the PHA actually has firm commitments for $750,000 of match, this dollar amount must be
indicated in the application). As noted in Section V.B, the actual ratio of match funds to every
$1.00 of CFRC grant funds (which HUD will calculate to four decimal places) will be used, as
needed, for tie-breaking purposes (e.g., an applicant might have an actual ratio of $0.0750 of
match funds to $1.00 of CFRC grant funds). The match funds must comply with the definition
of firmly committed and the allowable conditions in section (iii) above. The match commitment
documents must be kept on file by the applicant.
(f) Site Control and Acquisition.

64
(i) For each parcel of property to be developed, the application must include a
certification that the PHA, its instrumentality, or its developer (including when any of these three
entities are part of a partnership that will own the property(ies)) has site control of each parcel.
If the developer has site control, the developer must be under a contract, or some equivalent form
of predevelopment agreement, with the PHA that dedicates the parcel(s) for the uses proposed in
the application.
(ii) For applications proposing the acquisition method of development or proposing to
acquire property that is to be developed, the application must have on file an executed
acquisition contract or option for the property being acquired.
(iii) Site control may only be contingent upon:
(A) The receipt of the grant funds,
(B) HUD approval of the acquisition proposal,
(C) Satisfactory compliance with site and neighborhood standards and environmental
requirements, and
(D) Standard underwriting procedures.
(iv) The earliest the option or acquisition contract may expire is 180 days from the date
of HUD’s receipt of the application.
(g) Bridge Loans, if applicable. When bridge loans are proposed:
(i) PHAs must certify that they will meet pro rata share test at end of construction period.
(ii) PHAs must certify that they will follow all Mixed Finance program income rules that
apply to bridge loan repayments.
(h) Demolition/Disposition, if applicable. If the proposed activity includes the
demolition and/or disposition of public housing, the PHA must have submitted to HUD the

65
application for demolition and/or disposition approval no later than the date of the publication of
the revised NOFA. This must be certified to in the application.
e. Application Content and Organization.
(1) Applicants for funding under this Category must submit their application
electronically in accordance with Section IV.B. include in their application the following:.
(a) A completed-signed Application for Federal Assistance (SF-424)
(b) A completed-signed anti-lobbying certification (SF LLL) scanned into a .pdf
document
(c) a completed Microsoft Excel CFRC Application spreadsheet: note that the
spreadsheet will contain the following:
(i) Program Overview Narrative. Applicants must provide a brief description of their
proposed program. Activities described must follow the criteria of the Eligible Activities and
Thresholds for this Category above. The Program Overview must contain the following
information: A description of the gap that will be filled with the CFRC grant funds. The
description must be of sufficient detail so as to ensure that the CFRC grant funds will not
supplant expenditure from other Federal, State, or local sources or funds independently generated
by the grantee. A description of the activities to be funded, and that will be part of the proposal
implemented should the PHA receive funding. An identification of all of the participating
parties.
(ii) A checklist for certifying to threshold requirements for all applications
(iii) A checklist for certifying to category specific threshold requirements
(iv) Budget. Construction period and permanent sources and uses schedules, as well as a
completed TDC/HCC analysis. Review the Budget, Leverage and Financing Thresholds above

66
(under the Category Specific Threshold Requirements section) and the Funding Restrictions
section of the NOFA (Section IV.D). If the project exceeds TDC/HCC limits, the application
must include a request for a waiver of TDC/HCC limits. If costs exceed TDC/HCC limits and a
waiver is not requested, or a waiver request is made but not approved by HUD, the application
shall be rejected.
(v) TDC/HCC Waiver Request, if any. The TDC/HCC waiver request must include: the
amount requested for approval, indicating the current TDC/HCC limit and the difference
between the two, and a justification of why this waiver is needed and why the current TDC/HCC
is insufficient. As relevant, an explanation of extraordinary site costs must be included with the
request.
(vi) Program Schedule. Review the Program Schedule Threshold Requirement above
(under the Category Specific Threshold Requirements section).
(2) HUD will not fund incomplete applications. If an application is missing any aspect,
the application will be considered non-responsive to the NOFA, thus leaving the application
ineligible for review. If an application needs revisions to meet requirements, the application
shall be deemed incomplete and therefore ineligible for funding. Applicants notified by HUD of
incomplete or nonresponsive applications must resubmit the application. Resubmission shall be
placed in the funding queue based upon the date and time for receipt of the resubmission. See
Section V.B for detailed information on the Reviews and Selection Process.
(3) The commitments made for each grant application will be strictly monitored. A false
statement in an application is grounds for denial or termination or recapture of an award and
possible criminal, civil or administrative sanctions. See Section VI.B.3(n) for enforcement
requirements.

67
4. Category 4. Creation of an Energy Efficient, Green Community. Unlike the other
Categories, this Category will be rated and ranked by score. The purpose of Category 4 is to
facilitate transformational energy efficiency and “green” retrofits to substantively increase
energy efficiency and environmental performance of public housing properties and thereby
reduce energy costs, generate resident and PHA energy savings, and reduce Green House Gas
emissions attributable to energy consumption. This will be accomplished by funding competitive
proposals received from eligible PHAs that respond to one of the two options available under
this category: Option 1 - Substantial Rehabilitation or New Construction; and Option 2 Moderate Rehabilitation. Eligible PHAs may submit multiple proposals under one or more of
the options provided under this section. It is the intention that this funding will help to produce
benchmark projects demonstrating energy efficiency, healthy, safe living environments; lower
utility costs; conservation of energy, water, materials and other resources; utilization of
renewable energy resources where feasible; and to the extent possible, enhancement of the health
of local and regional ecosystems.
a. Eligible Activities. These activities include:
(1) Option 1, Substantial Rehabilitation or New Construction – Funds in this
Category may be used to pay for any eligible Capital Fund expenses, as defined in 24 CFR Parts
905, 941 and 968, that help achieve the Category and Option 1 objectives of creating energy
efficient, green communities through substantial rehabilitation or new construction. Specifically,
this includes eligible activities under the Capital Fund that enable you to provide substantial
rehabilitation or new construction to redevelop a public housing project including community
facilities or other non-dwelling space that are part of the project to produce substantially new
construction that is green and energy efficient. Activities include but are not limited to

68
development of connections to neighborhoods and green space; site improvements that provide
surface water management techniques that capture, retain, infiltrate and/or harvest rainfall; water
conservation through the use of water-conserving appliances, fixtures and efficient irrigation if
required; energy efficiency that meets Energy Star standards for new construction, utilizes
Energy Star appliances and efficient lighting use of materials beneficial to the environment,
promotes healthy/safe living environments for residents through the use of low or no-volatile
organic compounds (VOC) paints and adhesives, urea/formaldehyde-free composite wood and
green label certified floor coverings; use of renewable energy resources; and address operations
and maintenance of the public housing units.
(2) Option 2, Moderate Rehabilitation – Funds in this Category may be used to pay for
any eligible Capital Fund expenses, as defined in 24 CFR Parts 905, 941 and 968, that help
achieve the Category and Option 2 objectives of creating energy efficient, green communities
through moderate rehabilitation. Specifically, this includes eligible activities under the Capital
Fund that enable you to provide moderate rehabilitation of a public housing project including
rehabilitation of community facilities or other non-dwelling space that are part of the project to
increase conservation to the highest level possible. Activities include but are not limited to
actions that replace major building system components to significantly reduce energy and/or
water consumption, provide healthy, safe living environments for residents, address operations
and maintenance of the public housing units, utilize energy efficient technology such as efficient
hot water heaters, combined heat and power, efficient lighting, HVAC improvements, building
envelope improvements, Energy Star appliances, high-efficiency boilers/furnaces,
geothermal/ground coupled heat pumps, energy related infrastructure such as roof/window
replacements and utility distribution, installing programmable thermostats or controls, low flow

69
faucets/shower heads, condensing boilers, energy management system – automation, and
metering. Information on the benefits of specific energy strategies can be found on the HUD
PIH website http://www.hud.gov/offices/pih/programs/ph/phecc/.
b. Threshold Requirements. Applicants must meet all threshold requirements in order to be
considered for funding under this Category, subject to the requirements of Section V.B, Reviews
and Selection Process, and unless otherwise noted in this NOFA. Your application will not be
eligible for funding, and will not be rated or ranked, unless each threshold requirement listed in
this NOFA is included in your application. See Section V.B for instructions on incomplete
applications and technical deficiencies.
(1) Threshold Requirements for All Applications. Applicants must comply with all
Threshold Requirements for All Applications in Section III.C.2 in order to be considered for
funding. Applicants must certify to the applicability of each threshold in their application.
(2) Category Specific Threshold Requirements. Applicants must comply with all
Category Specific Threshold Requirements, whether applying under Option 1 or Option 2, in this
section in order to be considered for funding. The following threshold requirements apply to all
of the activities in this Category.
(a) The applicant must identify the project that it will substantially rehabilitate,
moderately rehabilitate or construct utilizing funding from a CFRC grant in this category. It
must specify the activities that it will take to claim points in the rating factors section of this
category.
(b) Eligible Activities. The applicant must certify that the CFRC funds will only be
used to pay for eligible Capital Fund activities and expenses, as defined in 24 CFR Part 905, 941
and 968, in order to facilitate transformational energy and/or water efficiency and “Green”

70
retrofits to substantively increase the energy conservation, water conservation and environmental
performance of public housing properties and thereby reduce energy and/or water consumption
costs, generate resident and PHA energy savings, and reduce Green House Gas emissions.
(c) Program Schedule. Applicants must provide a program schedule for their proposed
program which demonstrates compliance with the obligation and expenditure deadlines
established in Section IV.E. The program schedule must identify all the major milestones to be
achieved by the project including but not limited to the date construction/activities will
commence and the date construction/activities will be completed. It should also include the date
the funds will be obligated, the date 60 percent of the funds will be expended, and the date 100
percent of the funds will be expended.
(d) Budget, Leverage and Financing Thresholds:
(i)

PHAs must submit in their application a budget for the activities it will implement

under this CFRC grant, indicating committed sources and projected uses. The budget must
propose reasonable costs in relation to anticipated results.
(ii)

Commitments for permanent sources must equal projected uses. The project must

be financially feasible, as proposed (including any requested TDC/HCC waiver). In the case of
mixed finance development, the project must be financially feasible as defined by the following
costs control standards:
(A) Your hard development costs must be realistically developed through the use of
technically competent methodologies, including cost estimating services, and should be
comparable to industry standards for the kind of construction to be performed in the proposed
geographic area.

71
(B) Your cost estimates must represent an economically viable preliminary plan for
designing, planning, and carrying out your proposed activities, in accordance with local costs of
labor, materials, and services.
(C) Your projected soft costs must be reasonable and comparable to industry standards.
Upon award, soft costs will be subject to HUD’s Cost Control and Safe Harbor Standards. These
standards provide specific limitations on such costs as developer's fees (between 9 and 12
percent), PHA administration/consultant cost (no more than 3 to 6 percent of the total project
budget), contractor's fee (6 percent), overhead (2 percent), and general conditions (6 percent).
(iii)

PHAs must certify that each funding source identified in the application is firmly

committed, which means that the amount of the resource and its dedication to CFRC grant
activities is explicit, in writing, and signed by a person authorized to make the commitment. The
commitment may only be conditioned on receipt of the grant and the completion of due diligence
satisfactory to the lender or investor, or other entity controlling the committed funds, and the
ability of the PHA to reach a financial closing for the project in question.
(iv)

The budget must demonstrate that upon completion, permanent sources of public

housing funds, including Recovery Act funding, will not exceed a pro rata share of the costs for
constructing public housing units (the percentage of public housing funds to total funds
dedicated to unit production may not exceed the percentage of public housing units to total
units).
(v)

TDC/HCC Waivers, if applicable. Applicants must comply with the applicable

Total Development Costs (TDC) and Housing Cost Cap (HCC) limits (including those approved
under MTW). TDC and/or HCC may be waived for any PHA in funded in this category. If a
TDC/HCC waiver is requested, PHAs must submit a request with a detailed explanation and

72
justification as part of this grant application and HUD will approve on a case-by-case basis. If a
request to exceed TDC/HCC is denied, the application will be denied.
(vi)

Leverage. The applicant must certify to the leverage commitments it has, in

accordance with the Leverage Rating Factor below. The leverage funds must comply with the
definition of firmly committed and the allowable conditions in section (iii) above. The leverage
commitment documents must be kept on file by the applicant.
(3) Option Specific Threshold Requirements. As indicated in the Eligible Activities
Section above, applicants may choose which Option in Category 4 for which they are requesting
grant funding; they do not have to propose all of the activities listed. However, applicants must
comply with the Option Specific Threshold Requirements of the option they do identify in their
application.
(a) Option 1, Substantial Rehabilitation or New Construction, Threshold
Requirements:
(i) Mandatory Enterprise Green Communities Criteria. Applicants applying under
Option 1, as described above, must provide substantial rehabilitation or new construction that
meets the certification requirements of the Mandatory Enterprise Green Communities Criteria as
evidenced by the self certification of the Mandatory requirements of the Green Communities
Criteria Checklist, as amended in this NOFA. Applicants will certify to these criteria in their
application. The mandatory items are labeled with “Mandatory” in the right-most column of the
Checklist in the rating factor section below. Although none of the criteria have been changed in
terms of content, the Department has deleted some criteria that are not applicable for purposes of
this NOFA have been deleted from the original Green Communities Criteria Checklist.
Additionally, the point structure associated with the Enterprise Green Communities Criteria has

73
been changed for purposes of this NOFA. Thus, with some amendments, HUD incorporates the
Green Communities Criteria Checklist into this NOFA. Information on Enterprise Green
Communities Criteria can be found at: www.greencommunitiesonline.org. Enterprise Green
Communities Criteria was adapted from the LEED (Leadership in Energy and Environmental
Design) standards and is the only standard specifically developed for affordable housing. Use of
the Enterprise Green Communities Criteria provides HUD the ability to measure and reward the
PHAs that are providing the most “green,” most innovative plans.
Accordingly, HUD is using the Enterprise Green Communities Criteria Checklist for
purposes of this NOFA. It is not the intention of HUD to create a separate green certification
system or steer business toward Enterprise or to give an advantage to certain PHAs. PHAs that
have grants, loans and/or tax credit equity through Enterprise will not necessarily receive funding
under this NOFA; rather they must respond to and be assessed against the criteria of this NOFA
as would any other applicant. In turn, PHAs that receive funding under this NOFA will not
necessarily receive grants, loans and/or tax credit equity from Enterprise; rather they must apply
for such assistance in accordance with the necessary processes required by Enterprise as would
any other applicant. Further, the use of the Enterprise Green Communities Criteria Checklist in
this NOFA shall not prevent subsidiaries of Enterprise from participating as contractors or
consultants to the PHAs that apply for funding under this NOFA.
(ii) For a mixed-income project, the budget must demonstrate that upon completion,
permanent sources of public housing funds, including Recovery Act funding, will not exceed a
pro rata of the costs for constructing public housing units (the percentage of public housing funds
to total funds dedicated to unit production may not exceed the percentage of public housing units
to total units).

74
(b) Option 2, Moderate Rehabilitation, Threshold Requirements. There are no
additional threshold requirements for Option 2.
c. Rating Factors. Applications must respond to the rating factor criteria below in order to be
rated and ranked.
(1) Option 1, Substantial Rehabilitation or New Construction, Rating Factors (110
total points maximum). Applicants for Option 1 must respond to the following Rating Factors
in order to be rated and ranked. A maximum of 110 points may be earned under the Option 1
rating factors.
(a) Rating Factor 1 – Strategy for Green Communities – Amended Mandatory
Enterprise Green Communities Criteria (60 points maximum).
(i) Applicants applying under Option 1 must comply with the Mandatory Enterprise
Green Communities Criteria, as amended by the NOFA, in accordance with the above section,
“Option 1, Substantial Rehabilitation or New Construction, Threshold Requirements” and as
enumerated in the amended Enterprise Green Communities Criteria Checklist below.
(ii) The application will receive 60 points for certifying that they will implement the
amended Mandatory Enterprise Green Communities Criteria, as provided in the amended
checklist below. As noted above, applicants will certify to these criteria in their application;
applicants must not submit to HUD the actual documents and plans from the Checklist to which
they are certifying. The application will receive zero points if it does not indicate through the
certification provided in the application that it will implement all of the amended Mandatory
Enterprise Green Communities Criteria.
Integrated Design
1.1
Green Development Plan
Submit Green Development Plan outlining the integrated design
approach used for this development that demonstrates involvement of

Mandatory

75
the entire development team.
Site, Location and Neighborhood Fabric
2.3
Walkable Neighborhoods: Sidewalks and Pathways
Connect project to the pedestrian grid. Include sidewalks or other allweather pathways within a multifamily property or single-family
subdivision linking residential development to public spaces, open
spaces and adjacent development.
2.4a
Smart Site Location: Passive Solar Heating/Cooling
LH
Orient building to make the greatest use of passive solar heating and
cooling.
2.5
Compact Development
LH
Increase average minimum densities to meet or exceed: seven units
per acre for detached/semi-detached; 12 units for town homes; and 20
units for apartments.
2.6
Walkable Neighborhoods: Connections to Surrounding
Neighborhood
Provide a site plan demonstrating at least three separate connections
from the development to sidewalks or
all-weather pathways in surrounding neighborhoods.
Site Improvements
3.1
Environmental Remediation
Conduct a Phase I Environmental Site Assessment and provide a plan
for abatement if necessary.
3.2
Erosion and Sedimentation Control
LH
Implement EPA’s Best Management Practices for erosion and
sedimentation control during construction referring to the EPA
document, Storm Water Management for Construction Activities.
3.3
Landscaping
LH
Provide a tree or plant list certified by the Architect or Landscape
Architect, that the selection of new trees and plants are appropriate to
the site’s soils and microclimate and do not include invasive species.
Locate plants to provide shading in the summer and allow for heat
gain in the winter.
3.4
Surface Water Management
LH
Capture, retain, infiltrate and/or harvest the first ½ inch of rainfall that
falls in a 24-hour period.
Water Conservation
4.1a
Water-Conserving Appliances and Fixtures: New Construction
LH
Install water-conserving fixtures with the following minimum
specifications: toilets – 1.3 GPF; showerheads – 2.0 GPM; kitchen
faucets – 2.0 GPM; bathroom faucets – 2.0 GPM
4.1c
Water-Conserving Appliances and Fixtures
LH
Install water-conserving fixtures with the following minimum
specifications: toilets – 1.1 GPF; showerheads – 1.75 GPM; kitchen
faucets – 2.0 GPM; bathroom faucets – 1.5 GPM
4.2
Efficient Irrigation

Mandatory

1 point or 0

1 point or 0

1 point or 0

Mandatory

Mandatory

Mandatory

2 points or 0

Mandatory

2 points or 0

76
LH

If irrigation is necessary, use recycled gray water, roof water,
collected site run-off, water from a municipal recycled water system,
or a highly efficient irrigation system including all the following:
system designed by EPA Water Sense professional; plant beds with a
drip irrigation system; separately zoned turf and bedding types; a
watering zone timer/controller; moisture sensor controller.
Energy Efficiency
5.1a
Efficient Energy Use: New Construction
LH
Meet Energy Star standards (single family and low rise residential);
exceed ASHRAE 90.1-2004 by 15 percent; California-exceed Title 24
by 15 percent; Oregon, Washington, Idaho and Montana—meet
Northwest Energy Star
5.2
Energy Star Appliances
LH
If providing appliances, install Energy Star clothes washers,
dishwashers and refrigerators.
5.3a
LH

5.3b
LH
5.4

5.5
LH

Efficient Lighting: Interior
Install the Energy Star Advanced Lighting Package in all interior units
and use Energy Star or high-efficiency commercial grade fixtures in
all common areas and outdoors.
Efficient Lighting: Exterior
Install daylight sensors or timers on all outdoor lighting, including
front and rear porch lights in single family homes.
Electricity Meter
Install individual or sub-metered electric meters.

Additional Reductions in Energy Use
Exceed the relevant Energy Star HERS score for low-rise residential
buildings or exceed other standards by increased percentages.
5.6a
Renewable Energy
LH
Install PV panels, wind turbines or other renewable energy source to
provide at least 10 percent of the project’s estimated electricity
demand.
Materials Beneficial to the Environment
6.1
Construction Waste Management
LH
Develop and implement a construction waste management plan to
reduce the amount of material sent to the landfill by at least 25
percent.
6.2
Recycled Content Material
LH
Use materials with recycled content; provide calculation for recycled

Mandatory
if irrigation is
necessary

Mandatory

Mandatory
if providing
appliances
Mandatory

Mandatory

Mandatory
Except for
zero-bedroom
and designated
supportive
housing
dwelling units

1 point or 0

10 points or 0

1 point or 0

2 points or 0

77
content percentage based on cost or value of recycled content in
relation to total materials for project. Minimum recycled material
must be 5 percent
6.3
Certified, Salvaged and Engineered Wood
LH
Commit to using at least 25 percent (by cost) wood products and
materials that are salvaged wood, engineered framing materials or
certified in accordance with the Forest Stewardship Council.
6.4a
Water-Permeable Walkways
LH
Use water-permeable materials in 50 percent or more of walkways.
6.4b
Water-Permeable Parking Areas
LH
Use water-permeable materials in 50 percent or more of paved
parking areas.
6.5a
Reduce Heat-Island Effect: Roofing
LH
Use Energy Star-compliant and high-emissive roofing or install a
“green” (vegetated) roof for at least 50 percent of the roof area; or a
combination of high-albedo and vegetated roof covering 75 percent of
the roof area.
6.5b
Reduce Heat-Island Effect: Paving
LH
Use light-colored, high-albedo materials and/or an open-grid
pavement with a minimum Solar Reflective Index of 0.6 over at least
30 percent of the site’s hardscaped area.
6.5c
Reduce Heat-Island Effect: Plantings
LH
Locate trees or other plantings to provide shading for at least 50
percent of sidewalks, patios and driveways within 50 feet of a home.
Healthy Living Environment
7.1
Low / No Volatile Organic Compounds (VOC ) Paints and
Primers
LH
Specify that all interior paints and primers must comply with current
Green Seal standards for low VOC
7.2
Low / No VOC Adhesives and Sealants
LH
Specify that all adhesives must comply with Rule 1168 of the South
Coast Air Quality Management District. Caulks and sealants must
comply with Regulation 8, Rule 51 of the Bay Area Air Quality
Management District.
7.3
Urea Formaldehyde-free Composite Wood
Use particleboard and MDF that is certified compliant with the ANSI
A208.1 and A208.2. If using nonrated composite wood, all exposed
edges and sides must be sealed with low-VOC sealants.
7.4
Green Label Certified Floor Coverings
LH
Do not install carpets in below grade living spaces, entryways,
laundry rooms, bathrooms, kitchens or utility rooms. If using carpet,
use the Carpet and Rug Institute’s Green Label certified carpet, pad
and carpet adhesives.
7.5a
Exhaust Fans – Bathroom
LH
Install Energy Star-labeled bathroom fans that exhaust to the outdoors
and are connected to a light switch and are equipped with a humidistat

1 point or 0

1 point or 0
1 point or 0

1 point or 0

1 point or 0

1 point or 0

Mandatory

Mandatory

Mandatory

Mandatory

Mandatory

78

7.5b
LH
7.6a
LH

7.7
LH

7.8

7.9a

7.9b

7.10a

7.10b

7.11

7.12
LH

sensor or timer, or operate continuously.
Exhaust Fans – Kitchen: New Construction & Substantial
Rehabilitation
Install power vented fans or range hoods that exhaust to the exterior.
Ventilation: New Construction & Substantial Rehabilitation
Install a ventilation system for the dwelling unit, providing adequate
fresh air per ASHRAE 62.1-2007 for residential buildings above 3
stories or ASHRAE 62.2 for single family and low-rise multifamily
dwellings.
HVAC Sizing
Size heating and cooling equipment in accordance with the Air
Conditioning Contractors of America Manual, Parts J and S,
ASHRAE handbooks, or equivalent software.
Water Heaters: Mold Prevention
Use tankless hot water heaters or install conventional hot water
heaters in rooms with drains or catch pans Mandatory
with drains piped to the exterior of the dwelling and with non-water
sensitive floor coverings.
Materials in Wet Areas: Surfaces
In wet areas, use materials that have smooth, durable, cleanable
surfaces. Do not use mold-propagating
materials such as vinyl wallpaper and unsealed grout.
Materials in Wet Areas: Tub and Shower Enclosures
Use fiberglass or similar enclosure or, if using any form of grouted
material, use backing materials such as cement board, fiber cement
board or equivalent (i.e., not paper-faced).
Basements and Concrete Slabs: Vapor Barrier
Provide vapor barrier under all slabs. For concrete floors either in
basements or on-grade slab install a capillary break of 4 four inches of
gravel over soil. Cover all gravel with 6 millimeter polyethylene
sheeting moisture barrier with joints lapped one foot or more. On
interior below grade walls, avoid using separate vapor barrier or
below grade vertical insulation.
Basements and Concrete Slabs – Radon: New Construction &
Substantial Rehabilitation
In EPA Zone 1 and 2 areas, install passive radon-resistant features
below the slab along with a vertical vent pipe with junction box
available, if an active system should prove necessary. For substantial
rehab, introduce radon-reduction measures if elevated levels of radon
are detected.
Water Drainage
Provide drainage of water to the lowest level of concrete away from
windows, walls and foundations.
Garage Isolation
Provide a continuous air barrier between the conditioned (living)
space and any unconditioned garage space. In single-family houses

Mandatory
Mandatory

Mandatory

Mandatory

Mandatory

Mandatory

Mandatory

Mandatory

Mandatory

Mandatory

79
with attached garages, install a CO alarm inside the house on the wall
that is attached to the garage and outside the sleeping area, and do not
install air handling equipment in the garage.
7.13
Clothes Dryer Exhaust
LH
Clothes dryers must be exhausted directly to the outdoors.
7.14
Integrated Pest Management
LH
Seal all wall, floor and joint penetrations with low VOC caulking.
Provide rodent-proof and corrosion- proof screens (e.g., copper or
stainless steel mesh) for large openings.
7.15
Lead-Safe Work Practices: Moderate & Substantial
Rehabilitation
For properties built before 1978, use lead-safe work practices during
renovation, remodeling, painting and Mandatory
demolition.
7.16
Healthy Flooring Materials: Alternative Sources
Use non-vinyl, non-carpet floor coverings in all rooms.
7.17
Smoke-free Building
Enforce a "no smoking" policy in all common and individual living
areas in all buildings. See full criteria for "common area" definition.
7.18
Combustion Equipment (includes space & water-heating
equipment)
LH
Specify power vented or combustion sealed equipment. Iinstall one
hard-wired CO detector for each sleeping area, minimum one per
floor.
Operations and Maintenance
8.1
Building Maintenance Manual
LH
Provide a manual that includes the following: a routine maintenance
plan; instructions for all appliances,
HVAC operation, water-system turnoffs, lighting equipment, paving
materials and landscaping, pest control and other systems that are part
of each occupancy unit; an occupancy turnover plan that describes the
process of educating the tenant about proper use and maintenance of
all building systems.
8.2
Occupant’s Manual
LH
Provide a guide for homeowners and renters that explains the intent,
benefits, use and maintenance of green building features, along with
the location of transit stops and other neighborhood conveniences, and
encourages additional green activities such as recycling, gardening
and use of healthy cleaning materials, alternate measures for pest
control, and purchase of green power.
8.3
Homeowner and New Resident Orientation
LH
Provide a walk-through and orientation to the homeowner or new
resident using the Occupant Manual from 8-2 above that reviews the
building’s green features, operations and maintenance along with
neighborhood conveniences.

Mandatory
Mandatory

Mandatory

2 points or 0
1 point or 0

Mandatory

Mandatory

Mandatory

Mandatory

80
(b) Rating Factor 2 – Strategy for Green Communities – Amended Optional
Enterprise Green Communities Criteria (30 points maximum).
Applicants applying under Option 1 may also earn up to 30 points by certifying that they will
implement/comply with (if funded) the amended optional Enterprise Green Communities
Criteria, in accordance with the section, “Option 1, Substantial Rehabilitation or New
Construction, Threshold Requirements” and as enumerated in the amended Enterprise Green
Communities Criteria Checklist above. Each optional criterion has a point value listed in the
right-most column. For each optional criterion the applicant certifies it will implement/comply
with (if funded), the applicant will receive that point value. For each optional criterion the
applicant does not certify it will implement/comply with (if funded), the applicant will receive
zero points.
(c) Rating Factor 3 – Leverage Funds (10 points maximum). See the definition of
leverage in Section I.C.
(i) The application will receive 4 points if it certifies that it has firm commitments of
leverage funds to CFRC grant funds at a ratio that is greater than or equal to 0.10:1, but less than
or equal to 0.25:1.
(ii) The application will receive 6 points if it certifies that it has firm commitments of
leverage funds to CFRC grant funds at a ratio that is greater than 0.25:1, but less than or equal to
0.50:1.
(iii) The application will receive 8 points it certifies that it has firm commitments of
leverage funds to CFRC grant funds at a ratio that is greater than 0.50:1, but less than or equal to
0.75:1.
(iv) The application will receive 10 points if it certifies that it has firm commitments of

81
leverage funds to CFRC grant funds at a ratio that is greater than 0.75:1.
(v) The application will receive 0 points if it does not certify that it has firm
commitments of leverage funds to CFRC grant funds at a ratio that is less than 0.10:1.
(d) Rating Factor 4. Job Creation – Economic Opportunities for Low- and Very
Low-Income Persons (Section 3) and Workforce Investment Boards (5 Points maximum)
(i) Section 3. As noted in Section VI.B.3.e, grant recipients must comply with section 3
of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and its implementing
regulations at 24 CFR part 135. Specifically, grantees are required to ensure, to the greatest
extent feasible, that training, employment, and other economic opportunities will be directed to
low- and very low-income persons, particularly those who are recipients of government
assistance for housing, and to business concerns that provide economic opportunities to low- and
very low-income persons in the area in which the project is located. Additional information on
these requirements can be found at http://www.hud.gov/section3.
(A) Section 3 Compliance (1 Point). You will receive 1 point if your application
certifies that your PHA complied with the requirements of Section 3 during the most recent fiscal
or calendar year. You will receive zero points if your application does not certify that you
complied with the requirements of Section 3 during the most recent fiscal or calendar year.
Evidence of such compliance is a copy of the applicant’s most recent Section 3 Annual Summary
Report (Form HUD 60002) which must be kept on file by the applicant.
(B) Section 3 Plan (2 Points). You will receive 2 points if you certify that you have
completed a feasible Section 3 plan, which must be kept on file by the applicant, for directing
training, employment and contracting opportunities generated by the expenditure of covered
financial assistance to Section 3 residents and Section 3 business concerns. To earn the two

82
points, your application must certify that your Section 3 plan addresses at least a majority of the
items listed below in paragraphs (I)-(VII). (Your Section 3 plan may also include items not
listed in (I)-(VII)). You will receive zero points if your application does not certify that your
Section 3 plan addresses at least a majority of the items listed below in paragraphs (I)-(VII).
These items must be clearly addressed in your Section 3 plan.
(I) Types and amounts of employment and contracting opportunities to be generated as a
result of proposed plan activities;
(II) Specific actions that will be taken to ensure that low- and very low-income persons
and the business concerns that substantially employ these persons will be given priority
consideration for employment and contracting opportunities in accordance with 24 CFR Part
135.34 and Part 135.36;
(III) Eligibility criteria to be used for certifying Section 3 residents and business
concerns;
(IV) Process to be used for notifying Section 3 residents and business concerns about the
availability of training, employment, and contracting opportunities;
(V) Methodology to be used for monitoring contractors and subcontractors that are
awarded covered contracts to ensure their compliance with the requirements of Section 3;
(VI) Strategies for meeting the Section 3 minimum numeric goals for employment and
contracting opportunities found at 24 CFR Part 135.30;
(VII) Contact information and qualifications for staff persons that will be responsible for
the day-to-day implementation of Section 3.
(ii) Partnership with Workforce Investment Board and Other Organizations, 2
Points. Strong partnership between a PHA and its area Workforce Investment Board (WIB) can

83
have a significant positive impact on assisting public housing residents to prepare for and gain
employment.
(A) Workforce Investment Board (1 point)
(I) You will receive 1 point if you certify that you have a letter of commitment (or
other commitment document if available, including MOU, interagency cooperation agreement,
etc.) which firmly commits both the area WIB and the PHA to work together to facilitate the
connection of public housing residents to employment opportunities and training. The WIB must
have the necessary capacity to successfully facilitate the connection of public housing residents
to employment opportunities and training. The letter of commitment (or other commitment
document) must be kept on file by the applicant.
(II)

You will receive zero points if your application does not certify that you have a

letter of commitment (or other commitment document), in accordance with the terms of (I)
above.
(B) Other Organizations (1 point)
(I) You will receive 1 point if you certify that you have a have a relationship(s) with
other organizations (e.g., community-based organizations, faith-based organizations, service
providers, community colleges, etc.) that are equipped to help facilitate the connection of public
housing residents to employment opportunities and training. The other organization must have
the necessary capacity to successfully facilitate the connection of public housing residents to
employment opportunities and training. Evidence of this relationship(s) must be kept on file by
the applicant.
(II)

You will receive zero points if your application does not certify that you have a

84
relationship(s) with other organizations that are equipped to help facilitate the connection of
public housing residents to employment opportunities and training, in accordance with the terms
of (I) above.
(e) Rating Factor 5. Capacity of Applicant – Public Housing Assessment System
(PHAS) Designation (5 points maximum). If an applicant was rated overall as a High
Performer for its PHAS review for the quarters ending 12/31/06, 3/31/07, 6/30/07 and 9/30/07, it
will receive 5 points. In the case of an MTW agency that did not report into PHAS during those
quarters, if its MTW Agreement that was in place during those quarters deemed it a High
Performer, it will receive 5 points. See the following website for a listing of PHA designations:
http://www.hud.gov/recovery/ (which will link to the Office of Capital Improvements website,
http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm). If an applicant does not meet
these criteria, they earn zero points.
(2) Option 2, Moderate Rehabilitation, Rating Factors (110 total points
maximum).
Applicants for Option 2 must respond to the following Rating Factors in order to be rated and
ranked. A maximum of 110 points may be earned under the Option 2 rating factors.
(a) Rating Factor 1 – Certify to Strategies that Provide Green, Healthy Homes (45
points maximum).
(i) Applicants that certify that they will adopt Green Operations and Maintenance
practices will earn 10 points. A manual should be developed that includes a routine maintenance
plan; operations and maintenance guidance for all appliances, HVAC operation, water-system
turnoffs, lighting equipment, paving materials and landscaping, and other systems that are part of
each occupancy unit; and an occupancy turnover plan that describes in detail the process of

85
educating the resident about proper use and maintenance of all building systems. If the applicant
does not make this certification, it will earn zero points.
(ii) Applicants that certify that they will specify the use of low or no volatile organic
compounds (VOC) paints, primers, adhesives and sealants will earn 5 points. If the applicant
does not make this certification, it will earn zero points.
(iii) Applicants that certify that they will adopt Integrated Pest Management Protocols
will earn 5 points. If the applicant does not make this certification, it will earn zero points. The
Integrated Pest Management (IPM) plan should evidence the PHA’s commitment to establish
and maintain IPM principles and practices. The plan should confirm that the selected pest
control operator is experienced or has been trained in IPM principles and practices, that the IPM
Plan will be adopted at the project, and that on-site staff and residents will be trained upon
conversion to an IPM Plan and upon the move-in of new residents and change of staff in the
future. Additional information on the requirements of a successful plan can be found in PIH
Notice 2007 Integrated Pest Management at:
http://www.hud.gov/offices/adm/hudclips/notices/pih/07pihnotices.cfm
(iv) Applicants that certify that they will commit to using at least 25 percent (by cost)
wood products and materials that are salvaged wood, engineered framing materials or certified in
accordance with the Forest Stewardship Council will earn 5 points. If the applicant does not
make this certification, it will earn zero points.
(v) Applicants that certify that they will have a green assessment of facilities conducted
to identify “Green” investment options in the project plan, and that they will implement
recommendations of the green assessment to the maximum extent feasible, will earn 20 points.
The assessment should focus on energy efficiency, water conservations, indoor air quality,

86
materials and construction. It should review greening opportunities that can provide both short
and long term environmental, social and economic impacts to identify and prioritize
sustainability initiatives based upon costs and estimated payback as well as other benefits that
support the PHA’s goals. The plan should include actions, costs, timeframes, estimated
operational cost savings and a summary of expected benefits to residents and the environment,
detailed data on effective green building measures and costs. If the applicant does not make this
certification, it will earn zero points.
(vi) Applicants will receive zero points for each activity that they do not certify to
implement as part of the grant strategy.
(b) Rating Factor 2 – Strategy for Energy Efficient Communities (45 Points
maximum).
The applicant will certify that they have developed and documented a strategy that will provide
substantial savings in energy/water consumption. Points will be awarded in accordance with the
following criteria:
Greater than 35 percent savings in energy/water consumption: 45 points
Greater than 25 percent, but less than or equal to 35 percent savings in energy/water
consumption: 35 points
Greater than 15 percent, but less than or equal to 25 percent savings in energy/water
consumption: 25 points
Greater than 5 percent, but less than or equal to 15 percent savings in energy/water
consumption: 10 points
5 percent or less savings in energy/water consumption: 0 points

87
In order to comply with Category 4, Option 2, Rating Factor 2, Strategy for Energy Efficient
Communities, a PHA is required to document savings in energy and water consumption. The
PHA must substantiate a savings in energy consumption for the project that is the subject of the
application by converting all energy sources to a common unit, the British Thermal Unit (BTU).
The savings will be verified through the comparison of an established baseline developed upon
an independent energy audit and a post retrofit energy audit. Savings in water consumption will
be measured in gallons and verified through the comparison of a baseline established through pre
retrofit water consumption as documented by the local water utility and a post retrofit water
consumption as documented by the local water utility. The percent savings in energy and water
consumption is to be determined by adjusting the energy and water consumption savings to
reflect the breakdown of an average PHA’s utility costs of 70% for energy and 30% for water
(30% + 70%=100% utility costs). The adjusted percentages of water and energy consumption
savings are then added together as in the following example:
45 Percent savings in energy consumption:

45% x 70%= 31.5%

25 Percent savings in water consumption:

25% x 30%= 7.5%

Total Percentage of energy/water consumption savings

39%

(c) Rating Factor 3 – Leverage Funds (10 points maximum). See the definition of
leverage in Section I.C.
(i) The application will receive 4 points if it certifies that it has firm commitments of
leverage funds to CFRC grant funds at a ratio that is greater than or equal to 0.10:1, but less than
or equal to 0.25:1.
(ii) The application will receive 6 points if it certifies that it has firm commitments of

88
leverage funds to CFRC grant funds at a ratio that is greater than 0.25:1, but less than or equal to
0.50:1.
(iii) The application will receive 8 points it certifies that it has firm commitments of
leverage funds to CFRC grant funds at a ratio that is greater than 0.50:1, but less than or equal to
0.75:1.
(iv) The application will receive 10 points if it certifies that it has firm commitments of
leverage funds to CFRC grant funds at a ratio that is greater than 0.75:1.
(v) The application will receive 0 points if it does not certify that it has firm
commitments of leverage funds to CFRC grant funds at a ratio that is less than 0.10:1.
(d) Rating Factor 4. Job Creation – Economic Opportunities for Low- and Very LowIncome Persons (Section 3) and Workforce Investment Boards (5 Points maximum)
(i) Section 3. As noted in Section VI.B.3.e, grant recipients must comply with section 3
of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and its implementing
regulations at 24 CFR part 135. Specifically, grantees are required to ensure, to the greatest
extent feasible, that training, employment, and other economic opportunities will be directed to
low- and very low-income persons, particularly those who are recipients of government
assistance for housing, and to business concerns that provide economic opportunities to low- and
very low-income persons in the area in which the project is located. Additional information on
these requirements can be found at http://www.hud.gov/section3.
(A) Section 3 Compliance (1 Point). You will receive 1 point if your application
certifies that your PHA complied with the requirements of Section 3 during the most recent fiscal
or calendar year. You will receive zero points if your application does not certify that you
complied with the requirements of Section 3 during the most recent fiscal or calendar year.

89
Evidence of such compliance is a copy of the applicant’s most recent Section 3 Annual Summary
Report (Form HUD 60002) which must be kept on file by the applicant.
(B) Section 3 Plan (2 Points). You will receive 2 points if you certify that you have
completed a feasible Section 3 plan, which must be kept on file by the applicant, for directing
training, employment and contracting opportunities generated by the expenditure of covered
financial assistance to Section 3 residents and Section 3 business concerns. To earn the two
points, your application must certify that your Section 3 plan addresses at least a majority of the
items listed below in paragraphs (I)-(VII). (Your Section 3 plan may also include items not
listed in (I)-(VII)). You will receive zero points if your application does not certify that your
Section 3 plan addresses at least a majority of the items listed below in paragraphs (I)-(VII).
These items must be clearly addressed in your Section 3 plan.
(I) Types and amounts of employment and contracting opportunities to be generated as a
result of proposed plan activities;
(II) Specific actions that will be taken to ensure that low- and very low-income persons
and the business concerns that substantially employ these persons will be given priority
consideration for employment and contracting opportunities in accordance with 24 CFR Part
135.34 and Part 135.36;
(III) Eligibility criteria to be used for certifying Section 3 residents and business
concerns;
(IV) Process to be used for notifying Section 3 residents and business concerns about the
availability of training, employment, and contracting opportunities;
(V) Methodology to be used for monitoring contractors and subcontractors that are
awarded covered contracts to ensure their compliance with the requirements of Section 3;

90
(VI) Strategies for meeting the Section 3 minimum numeric goals for employment and
contracting opportunities found at 24 CFR Part 135.30;
(VII) Contact information and qualifications for staff persons that will be responsible for
the day-to-day implementation of Section 3.
(ii) Partnership with Workforce Investment Board and Other Organizations, 2
Points. Strong partnership between a PHA and its area Workforce Investment Board (WIB) can
have a significant positive impact on assisting public housing residents to prepare for and gain
employment.
(A) Workforce Investment Board (1 point)
(I) You will receive 1 point if you certify that you have a letter of commitment (or
other commitment document if available, including MOU, interagency cooperation agreement,
etc.) which firmly commits both the area WIB and the PHA to work together to facilitate the
connection of public housing residents to employment opportunities and training. The WIB must
have the necessary capacity to successfully facilitate the connection of public housing residents
to employment opportunities and training. The letter of commitment (or other commitment
document) must be kept on file by the applicant.
(II) You will receive zero points if your application does not certify that you have a
letter of commitment (or other commitment document), in accordance with the terms of (I)
above..
(B) Other Organizations (1 point)
(I) You will receive 1 point if you certify that you have a have a relationship(s) with
other organizations (e.g., community-based organizations, faith-based organizations, service
providers, community colleges, etc.) that are equipped to help facilitate the connection of public

91
housing residents to employment opportunities and training. The other organization must have
the necessary capacity to successfully facilitate the connection of public housing residents to
employment opportunities and training. Evidence of this relationship(s) must be kept on file by
the applicant.
(II) You will receive zero points if your application does not certify that you have a
relationship(s) with other organizations that are equipped to help facilitate the connection of
public housing residents to employment opportunities and training, in accordance with the terms
of (I) above.
(e) Rating Factor 5. Capacity of Applicant – Public Housing Assessment System
(PHAS) Designation (5 points maximum). If an applicant was rated overall as a High
Performer for its PHAS review for the quarters ending 12/31/06, 3/31/07, 6/30/07 and 9/30/07, it
will receive 5 points. In the case of an MTW agency that did not report into PHAS during those
quarters, if its MTW Agreement that was in place during those quarters deemed it a High
Performer, it will receive 5 points. See the following website for a listing of PHA designations:
http://www.hud.gov/recovery/ (which will link to the Office of Capital Improvements website,
http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm). If an applicant does not meet
these criteria, they earn zero points.
d. Application Content and Organization.
(1) Applicants for funding under this Category must submit their application
electronically in accordance with Section IV.B. and include in their application the
following:
(a) A completed-signed Application for Federal Assistance (SF-424)

92
(b) A completed-signed anti-lobbying certification (SF LLL) scanned into a .pdf
document
(c) a completed Microsoft Excel CFRC Application spreadsheet: note that the
spreadsheet will contain the following:
(i) Program Overview Narrative. Applicants must provide a brief description of their
proposed program. Activities described must follow the criteria of the Eligible Activities,
Thresholds and Rating Factors for this Category above. The Program Overview must contain the
following information: A description of the proposed program, including the purpose and
activities, to be funded by the CFRC grant. The description must be of sufficient detail so as to
ensure that the CFRC grant funds will not supplant expenditure from other Federal, State, or
local sources or funds independently generated by the grantee. An identification of the
participating parties, if applicable.
(ii) A checklist for certifying to threshold requirements for all applications
(iii) A checklist for certifying to category specific threshold requirements
(iv) Budget. Review the Budget, Leverage and Financing Thresholds above (under the
Category Specific Threshold Requirements section) and the Funding Restrictions section of the
NOFA (Section IV.D). Additional instructions:
(A) For Option 1: Construction period and permanent sources and uses schedules, as
well as a completed TDC/HCC analysis. If the project exceeds TDC/HCC limits, the application
must include a request for a waiver of TDC/HCC limits. If costs exceed TDC/HCC limits and a
waiver is not requested, or a waiver request is made but not approved by HUD, the application
shall be rejected.

93
(B) For Option 2: HUD form 50075.1, Annual Statement/Performance and Evaluation
Report.
(v) TDC/HCC Waiver Request, if any. The TDC/HCC waiver request must include: the
amount requested for approval, indicating the current TDC/HCC limit and the difference
between the two, and a justification of why this waiver is needed and why the current TDC/HCC
is insufficient. As relevant, an explanation of extraordinary site costs must be included with the
request.
(vi) Program Schedule. Review the Program Schedule Threshold Requirement above
(under the Category Specific Threshold Requirements section).
(vii) Rating Factor Response form (for Option 1 or 2, Rating Factors 1, 2, 3 and 4)
(2) Applicants under Category 4 must review Section V.B for detailed information on
the Reviews and Selection Process, including the processing for curing technical deficiencies.
HUD will not fund incomplete applications or does not cure its technical deficiencies.
(3) The commitments made for each grant application will be strictly monitored. A false
statement in an application is grounds for denial or termination or recapture of an award and
possible criminal, civil or administrative sanctions. See Section VI.B.3(n) for enforcement
requirements.
B. Reviews and Selection Process. Applicants must identify each CFRC application by its
appropriate Category.
Each application must respond to a single Category;
e.g., do not include Category 1 activities in the same application as Category 2. Combined
applications will be returned to the applicants and not reviewed.

94
1. Reviews and Selection Process for Threshold-Based Applications. Grants for the
Category 1 (Categories of Improvements Addressing the Needs of the Elderly and/or Persons
with Disabilities); Category 2 (Public Housing Transformation); and Category 3 (Gap Financing
for Projects that are Stalled Due to Financing Issues) will be awarded on a threshold basis, by
Ordinal, Category and Round, as indicated below, until available amounts are obligated or funds
expire, whichever comes first. This Section V.B.1 applies only to these three Categories. Note:
Category 4 (Creation of Energy Efficient, Green Communities) grants will not be awarded on a
threshold basis, but will be rated and ranked, as described in Section V.B.2 below.
a. Categories. See Section V.A for detailed information on Category criteria. See Section II
for approximate Category funding caps.
b. Ordinals. Upon receipt, HUD will assign each CFRC grant application an Ordinal (i.e.,
ranking number) that reflects the date HUD Headquarters received the application. Ordinals
correspond to calendar days, starting with July 6, 2009 and ending on the application deadline
closing date August 18, 2009, in accordance with the deadline date information in this NOFA,
specifically Section IV. HUD will consider all applications received on the same date as
received at the same time on that date, and those applications will all be assigned the same
Ordinal. In cases where a PHA applies for multiple grants on the same day, and where there may
not be sufficient funds available to fund all applications, and applications are of equal standing, it
is necessary for HUD to know the order in which the applicant wishes the applications to be
funded. Accordingly, applicants will be able to indicate this prioritization in the CFRC
application. If a PHA submits multiple applications on the same day and fails to specify an
order, HUD will process them in order of receipt. Ordinals will only be used for the thresholdbased categories: Improvements Addressing the Needs of the Elderly and/or Persons with

95
Disabilities; Public Housing Transformation; and Gap Financing for Projects that are Stalled due
to Financing Issues.
c. Application Screening.
(1) HUD will not fund incomplete applications. If an application is missing any aspect,
the application will be considered non-responsive to the NOFA, thus leaving the application
ineligible for review. If an application needs revisions to meet requirements, the application
shall be deemed incomplete and therefore ineligible for funding. Applicants notified by HUD of
incomplete or nonresponsive applications must resubmit the application. Resubmission shall be
placed in the funding queue based upon the date and time for receipt of the resubmission.
(2) HUD will screen the application to ensure that it meets each threshold requirement
listed in this NOFA.
(3) If HUD determines that an application is not eligible to receive funding (e.g., the
applicant is not a PHA), HUD will not consider the application further and will notify the
applicant that the application has been rejected.
(4) If HUD determines that an applicant is eligible but the application is incomplete,
HUD will contact the applicant by email to identify the missing information. The applicant must
then resubmit the corrected, complete application.
(5) Applicants whose applications HUD receives on the same date, and who have
missing items, will be notified by HUD of their missing items on the same day to ensure that all
applicants have the same number of days to provide the missing information. PLEASE NOTE:
THIS PROVISION MEANS THAT THE NEARER TO THE DEADLINE DATE YOU SUBMIT YOUR
APPLICATION, THE LESS TIME YOU WILL HAVE TO CORRECT ANY DEFICIENCIES, AND IF HUD
RECEIVES YOUR APPLICATION ON THE DEADLINE DATE AND THERE IS A DEFICIENCY, THAT

96
APPLICATION WILL NOT BE ELIGIBLE FOR FUNDING. YOU ARE ADVISED TO SUBMIT YOUR
APPLICATION AS SOON AS POSSIBLE, IN THE EVENT THAT HUD IDENTIFIES A DEFICIENCY THAT
YOU NEED TO CORRECT.

(6) If HUD determines that the resubmitted application is still not complete, HUD will
notify you of the remaining deficiency. You will have the opportunity to submit information in
response to notifications of deficiency until the grant application due date.
(7) Each resubmission shall be placed in the funding queue with a new Ordinal based
upon the date and time for receipt of the resubmission.
(8) If you do not submit a complete application by the application deadline closing date,
your application will be ineligible for funding.
d. Funding Rounds. Threshold-based applications (Categories 1, 2, and 3) will be awarded in
two rounds.
(1) Round 1.
(a) Round 1 will last from July 6, 2009 to July 31, 2009.
(b) During Round 1, Category Funding Caps, Threshold Funding Caps, Funding Request
Limits, Number of Applications Limits, and threshold requirements, as detailed in this NOFA,
apply.
(c) HUD will select for funding Round 1 eligible applications by Ordinal, in accordance
with the award information of Section II of the NOFA, until no Round 1 eligible applications
remain or until no more funds remain. See V.B.1.b above for information on Ordinals. TieBreaking criteria are below, as needed.
(d) Threshold Funding Caps.

97
(i) Approximately 50 percent of each Category’s Round 1 Funding Cap (see Section II)
is reserved for applications from High Performer applicants. Threshold Funding Caps will be
administered by Ordinal. That is, applications from High Performer PHAs will be selected for
funding by Ordinal, until the 50 percent Threshold Funding Cap is reached, or until no eligible
High Performer applications remain. This will be done in each of Categories 1, 2 and 3.
(ii) The balance of funds that remain from the Round 1 Category Funding Caps
(approximately 50 percent in each Category) will be available for funding remaining applications
by Ordinal from eligible High Performers and eligible non-High Performers, until no funds
remain or until no Round 1 eligible applications remain. This will be done in each of Categories
1, 2 and 3.
(e) Eligible High Performer and eligible non-High Performer applications that are not
able to be funded during Round 1 will be considered under Round 2. Such applications would
have priority (in terms of Ordinal) for funding during Round 2.
(f) Applicants are allowed to submit applications during Round 1 that could only qualify
for funding under Round 2. Such applications would have priority (in terms of Ordinal) for
funding during Round 2.
(g) If all funds are awarded during Round 1, there will not be a Round 2.
(2) Round 2:
(a) Round 2 will last from August 1, 2009 to August 18, 2009.
(b) HUD will select for funding Round 2 eligible applications by
Ordinal, in accordance with the criteria of this section V.B.1.d(2), until no eligible applications
remain or until no more funds remain. See V.B.1.b above for information on Ordinals. TieBreaking criteria are below, as needed.

98
(c) During Round 2, subject to the availability of funds, HUD will lift certain NOFA
criteria as indicated in this section, one-by-one, and in the order listed below in (i) through (vi).
HUD will lift the first criteria and fund the applications that become eligible as a result, based on
Ordinal. HUD will next lift the second criteria, and so on, until no funds remain or until there
are no eligible applications.
(i) Threshold Funding Caps/Capacity, High Performer threshold (Section II and
Threshold Requirements for All Applications). For Categories 1, 2, and 3, the Capacity, High
Performer threshold is used only in relation to the Section II Threshold Funding Caps (i.e.,
During Round 1, approximately 50 percent of each Category Funding Cap is reserved for eligible
applications from High Performers. The balance of the Category Funding Cap will be available
for remaining eligible applications from High Performers and non-High Performers). The
Threshold Funding Caps/Capacity, High Performer threshold do not apply in Round 2 at any
stage.
(ii) Leverage (Category Specific Threshold Requirement, Section V.A).
(iii) Capacity, Compliance with Section 9(j) of The Act (Section III.C.2, Threshold
Requirements for All Applications).
(iv) Category Funding Caps (Section II)
(v) Funding Request Limits (Section II)
(vi) Number of Applications Limits (if any) per PHA (Section II)
(d) Applicants are allowed to submit applications during Round 1 that could only qualify
for funding under Round 2. Such applications would have priority (in terms of Ordinal) for
funding during Round 2.

99
(e) HUD may continue to fund eligible applications that were received by the August 18,
2009 deadline, after that date has passed, subject to the criteria of this NOFA.
(3) Tie-Breaking. As applicable, where applications are of equal standing in accordance
with the NOFA criteria, whether the tie occurs during Round 1 or Round 2, and there are
insufficient funds to fund all these applications, HUD will fund applications as follows:
(i) Leverage and Match. HUD will add together an applicant’s leverage and match (if
any) commitments (Section V.A) and will then calculate the actual ratio of both leverage and
match (indicating four decimal places) to every $1.00 of CFRC grant funds. HUD will then fund
applications in descending order of the actual ratio (the higher ratio gets funded).
(ii) Lottery. If after using the tie-breaking criteria above there still remain applications
of equal standing, and there are insufficient funds to fund all of them, HUD will conduct a lottery
among those applications to determine which application(s) will be funded.
(4) Partial Funding. HUD reserves the right to partially fund the next eligible
application if insufficient funds remain to fund the entire amount requested, and HUD
determines that the funds available are adequate to carry out priority activities.
2. Reviews and Selection Process for Rated and Ranked Applications. This Section V.B.2
applies only to the Creation of Energy Efficient, Green Communities Category, which will be
rated and ranked (not awarded on a threshold basis, by Ordinal, Category and Round).
a. Application Screening.
(1) Screening Purpose. HUD will screen each application to determine if:
(a) It is incomplete or contains any technical deficiencies (as defined below); and

100
(b) It meets the threshold criteria listed in section III.C.2 and V.A.4 of this NOFA.
Applications that do not meet all the threshold requirements (after the cure period) will not be
rated and ranked (except as indicated in V.B.2.d) unless otherwise indicated in this NOFA.
(2) Corrections to Deficient Application.
(a) After the application deadline, HUD may not, consistent with its regulations in 24
CFR Part 4, subpart B, consider any unsolicited information that an applicant may want to
provide. HUD may contact an applicant to clarify an item in its application or to correct curable
(correctable) technical deficiencies. HUD may not seek clarification of items or responses that
improve the substantive quality of an applicant’s response to any rating 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 inconsistencies in the funding
request, failure to submit the proper certifications, and failure to submit an application that
contains a signature by an official able to make a legally binding commitment on behalf of the
applicant If there is an inconsistency between the funding amount listed in the application
spreadsheet and the SF 424, HUD will use the amount listed in the spreadsheet and not the
amount listed on the SF 424. HUD will not consider such a situation an inconsistency.
(b) If HUD finds a curable deficiency in the application, HUD will notify the applicant
in writing by describing the clarification or technical deficiency. HUD will notify applicants by
email. Clarifications or corrections of technical deficiencies in accordance with the information
provided by HUD must be submitted within 5 calendar days of the date of receipt of the HUD
notification. (If the deadline date falls on a Saturday, Sunday, or federal holiday, the applicant’s
correction must be received by HUD on the next day that is not a Saturday, Sunday, or federal

101
holiday.) Applicants must submit responses to requests for clarifications or corrections of
technical deficiencies to HUD via email, or as otherwise indicated by HUD. The response
information will be matched to the electronic application in HUD’s files. If the deficiency is not
corrected within the above time frame, HUD will reject the application as incomplete, and it will
not be considered for funding.
(3) Applications that will not be rated or ranked. HUD will not rate or rank
applications that are deficient at the end of the cure period stated in this NOFA or that have not
met the thresholds described in Section III.C.2 and V.A.4 of this NOFA(except as indicated in
V.B.2.d). Such applications will not be eligible for funding.
b. Rating and Ranking.
(1) Rating.
(a) HUD staff will rate each eligible application, solely on the basis of the rating factors
described in section V.A.4 of this NOFA, the Creation of Energy Efficient, Green Communities
Category.
(b) HUD will assign a score for each rating factor and a preliminary total score for each
eligible application.
(c) The maximum score for each application is: 110 points for Option 1 and 110 points
for Option 2.
(d) The minimum score required to be funded is: 60 points for Option 1 and 60 points for
Option 2.
(2) Ranking.
(a) After rating, Option 1 applications will be ranked in descending order of score and
Option 2 applications will be ranked in descending order of score.

102
(b) Option 1 applications will be funded in descending ranked order, in accordance with
the minimum score for Option 1 and the funding caps in Section II ($300,000,000 is allocated for
Option 1 applications). Option 2 applications will be funded in descending ranked order
simultaneously with Option 1 applications, in accordance with the minimum score for Option 2
and the funding caps in Section II ($300,000,000 is allocated for Option 2 applications). See
“Remaining Funds” below.
c. Tie-Breaking.
(1) Tie Scores. If two or more applications have the same score and there are
insufficient funds to select all of them, HUD will select for funding the Option 1 application(s)
over the Option 2 application(s). If the applications are of the same Option, HUD will select for
funding the application(s) with the highest score for the following rating factors in the order
below, until the tie is broken:
(a) Option 1:
(i) Rating Factor 1 – Strategy for Green Communities – Amended Mandatory Enterprise
Green Communities Criteria (60 points maximum);
(ii) Rating Factor 2 – Strategy for Green Communities – Amended Optional Enterprise
Green Communities Criteria (30 points maximum);
(iii) Rating Factor 3 – Leverage Funds (10 points maximum);
(iv) Rating Factor 4. Job Creation – Economic Opportunities for Low- and Very LowIncome Persons (Section 3) and Workforce Investment Boards (5 Points maximum);
(v) Rating Factor 5. Capacity of Applicant – Public Housing Assessment System
(PHAS) Designation (5 points maximum).
(b) Option 2:

103
(i) Rating Factor 1 – Certify to Strategies that Provide Green, Healthy Homes (45
points maximum);
(ii) Rating Factor 2 – Strategy for Energy Efficient Communities (45 Points
maximum);
(iii) Rating Factor 3 – Leverage Funds (10 points maximum);
(iv) Rating Factor 4. Job Creation – Economic Opportunities for Low- and Very LowIncome Persons (Section 3) and Workforce Investment Boards (5 Points maximum);
(v) Rating Factor 5. Capacity of Applicant – Public Housing Assessment System
(PHAS) Designation (5 points maximum).
(2) Lottery. If after using the Tie Scores criteria in (1) above there still remain
applications of equal standing, and there are insufficient funds to fund all of them, HUD will
conduct a lottery among those applications to determine which application(s) will be funded.
d. Remaining Funds. If funds remain after funding the Category 4 applications in accordance
with Section V.B.2 above, HUD will lift the funding request limits, category caps, and threshold
criteria indicated in this section, one-by-one, and in the order listed below in (1) through (3).
HUD will lift the first criteria and fund the applications that become eligible as a result. HUD
will next lift the second criteria, and so on, until no funds remain or until there are no eligible
applications.
(1) Capacity, Compliance with Section 9(j) of the Act (Section III.C.2, Threshold
Requirements for All Applications).
(2) Category Funding Caps (Section II).
(3) Funding request limits (Section II).

104
(4) Partial funding. HUD reserves the right to partially fund the next eligible application
if insufficient funds remain to fund the entire amount requested, and HUD determines that the
funds available are adequate to carry out priority activities.
(5) Transfer of Funds to Other Option. If funds remain after all eligible Category 4
applications for an Option are funded and the amount remaining is inadequate to feasibly fund
the next eligible application in that Option (if any remain), HUD reserves the right to reallocate
unused funds to fund or supplement the next eligible Category 4 grant application(s) in the other
Option.
3. Funding Reductions. HUD reserves the right to make reductions in funding for any
ineligible items included in an applicant’s proposed budget.
4. Transfer of Funds to Other Categories. If funds remain after all eligible CFRC
applications for a Category are funded and the amount remaining is inadequate to feasibly fund
the next eligible application in that Category, HUD reserves the right to reallocate unused funds
to fund or supplement the next eligible CFRC grant application(s) in another Category.
5. Number of CFRC Grants per Project. HUD will not fund more than one CFRC grant for
any one project. While an applicant is allowed to apply for funding of a project under more than
one Category, HUD will fund only one grant for that project in accordance with the Review and
Selection Process in Section V.B. above. Thus, as noted elsewhere in the NOFA, it is important
for applicants that are submitting multiple applications on the same day to indicate the priority in
which they wish their applications to be funded in the event there are not sufficient funds
available to fund them all. For example, a PHA submits applications for Project ABC under a
Category 2 and Category 4 Option 1 (Substantial Rehabilitation or New Construction). While
both may be deemed eligible to be funded, HUD will only fund one.

105
6. Notification of Funding Decisions.
a. Threshold-Based CFRC grants. Because the Improvements Addressing the Needs of the
Elderly and/or Persons with Disabilities; Public Housing Transformation; and Gap Financing for
Projects that are Stalled Due to Financing Issues CFRC grants are awarded on a threshold basis,
by Ordinal, Category and Round, HUD reserves the right either to award funds for applications
as soon as they are determined to be eligible for funding, on an intermittent basis, or announce
all awards at once after the grant application deadline date has passed. HUD will notify
ineligible applicants of their ineligibility after that determination has been made. HUD will
provide written notification to all applicants, whether or not they have been selected for funding.
b. Rated and Ranked CFRC grants. HUD reserves the right either to announce for the
awards for the Creation of Energy Efficient, Green Communities CFRC grants once they are all
determined, in accordance with the rating and ranking procedures in Section V.B.2 above, after
the grant application deadline date has passed. HUD will notify ineligible applicants of their
ineligibility after that determination has been made. HUD will provide written notification to all
applicants, whether or not they have been selected for funding.
C. Anticipated Announcement and Award Dates: HUD must obligate all the CFRC funds to
grantees by September 30, 2009.
VI. Award Administration Information:
A. Award Notices
1. Applicants will receive notification from HUD indicating whether or not their applicant(s)
were funded.
2. For funded applications, the CFRC ACC Amendment shall serve as the obligating document.
Unsuccessful applicants will be notified within 30 days of the announcements of the awards.

106
3. Adjustments to Funding. HUD will not fund any portion of your application that is not
eligible for funding under this program, does not meet the requirements of this NOFA, or may be
duplicative of other funded programs or activities. Only the eligible portion of your application
will be funded.
B. Administrative, Program and National Policy Requirements.
1. Recovery Act Requirements. The Recovery Act includes the following information for
PHAs:
a. PHAs shall give priority to capital projects that can award contracts based on bids within 120
days from the date the funds are made available to the PHAs;
b. PHAs shall prioritize capital projects that are already underway or included in the 5-year
capital fund plans required by the Act (42 U.S.C. 1437c-1(a)).
c. Funds provided under this NOFA must serve to supplement and not supplant expenditures
from other Federal, State, or local sources or funds independently generated by the grantee.
d. Statutory Time Limits – Obligation and Expenditure of Funds: The obligation and
expenditure requirements found at section 9(j) of the 1937 Act regarding the obligation and
expenditure of Capital Funds do not apply. The Recovery Act provides for alternate obligation
and expenditure deadlines (and penalties) as follows:
(1) HUD must obligate the CFRC grant funding to grantees by September 30, 2009.
(2) PHAs must obligate 100 percent of the grant funds awarded under this NOFA within 1
year of the date on which funds become available to the PHA for obligation (which is the
effective date of the ACC amendment). If a PHA fails to comply with the 1-year obligation
requirement, HUD will recapture all remaining unobligated funds awarded to the PHA .
(3) PHAs must expend at least 60 percent of the grant funds within 2 years of the date on

107
which funds become available to the PHA for obligation (which is the effective date of the ACC
amendment). If a PHA fails to comply with the 2-year expenditure requirement, HUD will
recapture the balance of the funds awarded to the PHA.
(4) PHAs must expend 100 percent of the grant funds within 3 years of the date on which
funds become available to the PHA for obligation (which is the effective date of the ACC
amendment). If a PHA fails to comply with the 3-year expenditure requirement, HUD will
recapture the balance of the funds awarded to the PHA.
(5) Extensions of the Obligation Deadlines: Extension of the obligation and expenditure
deadlines are not permitted under the Recovery Act. Additionally, if a PHA fails to obligate any
of its other Capital Fund grants during this time, an extension of the obligation deadline for that
grant will not be granted based solely on the justification that the PHA was engaged in obligating
Recovery Act funds, as it does not meet the criteria established in section 9(j) of the 1937 Act.
2. Program Requirements
a. Previous Plans. As relevant by Category, PHAs are permitted to substitute any work item
from the latest approved Five-Year Action Plan to any previously approved CFP Budget or CFP
Annual Statement and to move work items among approved budgets without prior HUD
approval. The PHA can only substitute work items in the annual or five year plans to the CFRC
grant that are not obligated to an open capital fund grant.
b. Process for Obtaining Public Comment on Five-Year Action Plan and Annual Plan.
According to 24 CFR 903.17, the PHA’s board of directors or similar governing board must
conduct a public hearing to discuss the Five-Year Action Plan and/or Annual Plan and invite the
public to comment on the plan. The regulation provides a 45-day notice period informing the
public that the information is available for review and inspection and announcing the public

108
hearing. For all PHAs accepting these grant funds (including MTW agencies), the Secretary is
using the waiver authority in the Recovery Act to reduce this public notice period to 10 calendar
days for PHAs amending their Five-Year Action Plan and/or Annual Plan due in part to these
grant funds. This waiver provides for adequate notice, but does not limit the information and
activities required to be performed by the PHA. This waiver also permits these PHAs to
continue planning and ultimately obligate and expend these funds as intended by the Recovery
Act.
c. Grant Administration. Grantees must administer the grant in accordance with all
requirements of this NOFA and all requirements applicable to public housing, including the
1937 Act, the Recovery Act, HUD regulations, the ACC, including all amendments, and all other
Federal statutory, Executive Order, and regulatory requirements as such requirements may be
amended from time to time.
d. Participating In HUD-Sponsored Program Evaluation. As a condition of the receipt of
financial assistance under a HUD program NOFA, all successful applicants will be required to
cooperate with all HUD staff or contractors who perform HUD-funded research or evaluation
studies.
e. Reporting Requirements. Grantees are required to report to HUD on the progress of
awarded grants. Grantees must report to HUD on the performance measures identified in this
NOFA and as otherwise requested by HUD. HUD will provide the format and additional
instruction to grantees after grant award (subject to OMB guidance). More detailed reporting
information will be forthcoming from HUD and OMB. Information on this program, pre- and
post- award, will be posted to http://www.hud.gov/recovery/ (which will link to the Office of
Capital Improvements website, http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm).

109
f. Performance Measures and Reporting Requirements by Category.
(1) Category 1 - Improvements Addressing the Needs of the Elderly and/or Persons
with Disabilities
(a) Activity Type 1.
(i) Performance Measures for Activity Type 1. If awarded a CFRC grant for Activity
Type 1, the applicant agrees to make the number of units identified in V.A.1.b(3)(a)(i) above
within the public housing project targeted in the application UFAS compliant. The recipient
PHA can change the specific units designated for modification under Activity Type 1 without
prior HUD approval; however, the total number of units that will be modified must be the same
total amount identified in the application. Failure to comply with the performance measure will
subject the grant to sanctions including recapture of grant funds proportional to the shortfall in
the number of UFAS compliant units.
(ii) Reporting Requirements for Activity Type 1. Applicants, if awarded funds, must
report the following data to HUD:
(A) Identity of all dwelling units in the project that are being/have been modified to be
UFAS compliant.
(B) Description of the modifications made to dwelling units to bring them into UFAS
compliance,
(C) The date of significant milestones used to measure progress including but not limited
to: date construction/activity commenced and date construction/activity was completed.
(b) Activity Type 2.
(i) Performance Measures for Activity Type 2. If awarded a CFRC grant for Activity
Type 2, the applicant agrees to modify the number of units identified in V.A.1.b(3)(b)(i) above

110
within the public housing project targeted in the application adequately to make them suitable for
use by service providers. The recipient PHA can change the specific units designated for
modification under Activity Type 2 without prior HUD approval; however, the total number of
units that will be modified must be the same total amount identified in the application. Failure to
comply with the performance measure will subject the grant to sanctions including recapture of
grant funds proportional to the shortfall in the number of units made suitable for service
providers.
(ii) Reporting Requirements for Activity Type 2: Applicants, if awarded funds, must
report the following data to HUD:
(A) Identity of all dwelling units in the project that are being/have been converted into
space suitable for service providers.
(B) The date of significant milestones used to measure progress including: date
construction/activity commenced and date construction/activity was completed.
(C) Number and percentage of elderly and/or disabled residents that utilize the space to
receive supportive services from providers.
(D) Description of conversions of dwelling units into space suitable for service providers.
(E) Identify portion of operating subsidy, standard capital fund, combined MTW funds,
existing ROSS-Elderly and Persons with Disabilities grant funding, and/or ROSS-Service
Coordinator (if funded to serve elderly) funding committed for service coordination to ensure
that community facilities are used for their intended purpose. Please note this commitment may
not be counted as leverage or match.
(F) Hours per week that providers use the space to provide supportive services to the
residents.

111
(c) Activity Type 3.
(i) Performance Measures for Activity Type 3. If awarded a CFRC grant for Activity
Type 3, the applicant agrees to make the proposed improvements to the proposed non-dwelling
areas identified in V.A.1.b(3)(c)(i) above within the project targeted in the application as
described. The recipient PHA can change the specific non-dwelling areas designated for
modification under Activity Type 3 without prior HUD approval; however, the total square
footage that is to be converted must be the same total quantity that was identified in the
application. Failure to comply with the performance measure will subject the grant to sanctions
including recapture of grant funds proportional to the shortfall in the modifications to the nondwelling space.
(ii) Reporting Requirements for Activity Type 3. Applicants, if awarded funds,
must report the following data to HUD:
(A) Description of the improvements to non-dwelling areas that are made accessible and
ADA-compliant.
(B) The date of significant milestones used to measure progress including but not limited
to: date construction/activity commenced and date construction/activity was completed.
(C) Identity of non-dwelling areas that are made accessible and ADA-compliant.
(D) The square footage of space that is made accessible and ADA-compliant
(d) Activity Type 4.
(i) Performance Measures for Activity Type 4. If awarded a CFRC grant for Activity
Type 4, the applicant agrees to carry out the improvement or construction as described in
V.A.1.b(3)(d)(i) above within the project targeted in the application adequately to make the nondwelling space suitable for use by service providers. The recipient PHA can change the location

112
of the improvements or construction under Activity Type 4 without prior HUD approval
provided that it does not materially change the scope of the improvements/construction. Failure
to comply with the performance measure will subject the grant to sanctions including recapture
of grant funds proportional to the shortfall in the scope of the improvements/construction of
suitable non-dwelling space for service providers.
(ii) Reporting Requirements for Activity Type 4: Applicants, if awarded funds,
must report the following data to HUD.
(A) The additional square footage of space dedicated to the provision of supportive
services.
(B) Identity of non-dwelling area that is improved or constructed in order to attract or
promote the coordinated delivery of services.
(C) Description of improvements to or construction of non-dwelling areas to provide
additional space for support services.
(D) Identify portion of operating subsidy, standard capital fund, combined MTW funds,
existing ROSS-Elderly and Persons with Disabilities grant funding, and/or ROSS-Service
Coordinator (if funded to serve elderly) funding committed for service coordination to ensure
that community facilities are used for their intended purpose.
(E) Number and percentage of elderly and/or disabled residents that utilize the space
improved or constructed with grant funds.
(F) Hours per week that providers use the space to provide supportive services to the
residents.
(G) The date of significant milestones used to measure progress including: date
construction/activity commenced and date construction/activity was completed.

113
(2) Category 2 – Public Housing Transformation
(a) Performance Measures. If awarded a Category 2 CFRC grant, the applicant agrees to
carry out the removal and replacement or revitalization described in V.A.(2)(b) above. The
recipient PHA can deviate by up to 10 percent in terms of the unit count and aggregate bedroom
count produced without prior HUD approval, as long as the project is within the TDC limit or the
TDC limit approved by HUD through a waiver. Failure to comply with the performance
measure will subject the grant to sanctions including recapture of grant funds proportional to the
shortfall in the number of units, overall square foot dimensions, and/or aggregate number of
bedrooms.
(b) Reporting Requirements for Category 2: Applicants, if awarded funds, must report
the following data to HUD:
(i) The number of public housing units demolished.
(ii) The number of public housing units produced or renovated.
(iii) The number of public housing residents housed in the units built or renovated.
(iv)

The date of significant milestones used to measure progress including but not

limited to: date of closing (if financing is involved), date demolition or disposition approval was
completed, date construction commenced and date construction was completed.
(3) Category 3 - Gap Financing for Projects that are Stalled due to Financing Issues
(a) Performance Measures. If awarded a Category 3 CFRC grant, the applicant agrees to
carry out the removal and replacement or revitalization described in (2)(a) above. The recipient
PHA can deviate by up to 10 percent in terms of the unit count and aggregate bedroom count
produced without prior HUD approval, as long as the project is within the TDC limit or the TDC
limit approved by HUD through a waiver. Failure to comply with the performance measure will

114
subject the grant to sanctions including recapture of grant funds proportional to the shortfall in
the number of units and/or aggregate number of bedrooms.
(b) Reporting Requirements for Category 3: Applicants, if awarded funds, must report the
following data to HUD.
(i) Number of units produced
(ii) Number of units modernized
(iii)The date of significant milestones used to measure progress including but not limited
to: date of closing, date demolition or disposition approval was completed, date construction
commenced and date construction was completed.
(iv) Number and description of non-dwelling structures modernized
(v) Number and description of non-dwelling structures newly constructed
(vi) Number of public housing residents housed in units built or modernized.
(4) Category 4 - Creation of an Energy Efficient, Green Community
(a) Option 1, Substantial Rehabilitation or New Construction
(i) Performance Measures. If awarded a Category 4, Option 1 CFRC grant, the applicant
agrees to carry out the substantial rehabilitation or new construction and the activities that it
agreed to undertake in order to claim points in the rating factor section of this category identified
in (2)(a) above. The recipient PHA must obtain prior HUD approval to deviate from its
application in a significant way. Failure to comply with the performance measure will subject
the grant to sanctions including recapture of grant funds proportional to the shortfall in scope of
committed activities.
(ii) Reporting Requirements for Category 4: Applicants, if awarded funds, must report
the following data to HUD:

115
(A) Number of units successfully developed/rehabilitated.
(B) Cost of interventions per unit.
(C) Number of units utilizing renewable energy sources if applicable.
(D) Number of units developed/rehabilitated to provide safe/healthy living environments.
(E) For Category 4 CFRC grants, HUD will conduct an evaluation of the effectiveness of
the approaches proposed and will require the grantee collect and provide baseline and post
project energy consumption at the building level, contract scopes and costs.
(F) Substantiate the proper installation of specified systems through the certification of an
independent audit.
(b) Option 2 - Moderate Rehabilitation
(i) Performance Measures. If awarded a Category 4, Option 1 or Option 2 CFRC grant,
the applicant agrees to carry out the substantial rehabilitation or new construction and the
activities that it agreed to undertake in order to claim points in the rating factor section of this
category identified in (2)(a) above. The recipient PHA must obtain prior HUD approval to
deviate from its application in a significant way. Failure to comply with the performance
measure will subject the grant to sanctions including recapture of grant funds proportional to the
shortfall in scope of committed activities.
(ii) Reporting Requirements for Category 4: Applicants, if awarded funds, must report
the following data to HUD:
(A) Number of units successfully developed/rehabilitated.
(B) Cost of interventions per unit.
(C) Number of units utilizing renewable energy sources if applicable.
(D) Number of units developed/rehabilitated to provide safe/healthy living environments.

116
(E) For Category 4 CFRC grants, HUD will conduct an evaluation of the effectiveness of
the approaches proposed and will require the grantee collect and provide baseline and post
project energy consumption at the building level, contract scopes and costs.
(F) For Category 4 CFRC grants, for moderate rehab, a PHA must substantiate a savings
in energy consumption, by converting all energy sources to a common unit, the British Thermal
Unit (BTU). This should be verifiable through an established baseline based upon an
independent energy audit. The length and quality of the baseline consumption should be
addressed. Agencies should describe how the energy consumption following energy
conservation retrofits will be measured to provide accurate consumption values. Savings are
determined as the difference between the baseline consumption and the consumption after the
energy conservation measures have been installed. Utility consumption may be adjusted for
conditions, such as weather (Note: the consumption should be provided in unadjusted and
adjusted levels, and the data used for the adjustment should be provided). Strategies for weather
adjustments should be consistent with industry principles and described. See Category 4, Option
2, Rating Factor 2, Strategy for Energy Efficient Communities, for additional guidance.
(G) Substantiate the proper installation of specified systems through the certification of
an independent audit.
(H) HUD will conduct an evaluation of the effectiveness of the approaches proposed and
will require the grantee collect and provide baseline and post project energy consumption at the
building level, contract scopes and costs.
g. Post-Award HUD Proposal Reviews. Once funded, projects must undergo a standard
development proposal review, review of a mixed-finance proposal and evidentiary documents
(unless waived by HUD), or other HUD review process to the extent required by the activity

117
funded. HUD will review the submittal to ensure compliance with applicable regulations and
policies, such as site and neighborhood standards and HUD’s Cost Control and Safe Harbor
Standards.
h. Pro Rata Share. Upon completion, as relevant, the project must comply with the HUD pro
rata share test, which compares the percent of all public housing funds invested in the project
with the percent of public housing units in the project. Therefore, if there are both public
housing and non-public housing units being constructed as part of the project, the percent of
public housing funds to total funds dedicated to unit production may not exceed the percent of
public housing units to total units.
i. Unit Restrictions. The Capital Fund section of the Recovery Act provides “That
notwithstanding any other provision of law….any restriction of funding to replacement housing
uses shall be inapplicable.” Therefore, section 9(g)(3)of the United States Housing Act of 1937 is
inapplicable with regards to this funding and PHAs can construct new public housing and
acquire new public housing (including acquisition with rehabilitation) without the restrictions in
section 9(g)(3) when using Recovery Act funds. If other Public Housing funds are used in the
development then section 9(g)(3) would apply. PHAs should continue to follow Part 941 and
submit their Development Proposal for HUD review.
j. Program Regulations. Grantees must ensure they comply with the governing regulations
affecting their CFRC grant, including 24 CFR Part 905, 941, and 968, as applicable.
3. Administrative Requirements.
a. Procurement. The following procurement requirements shall be followed:
(1) Priorities: PHAs shall give priority to Capital Fund Stimulus (including CFRC) Grant
projects that can award contracts based on bids within 120 days from February 17, 2009.

118
(2) State and Local: Any requirements relating to the procurement of goods and services
arising under state and local laws and regulations shall not apply to Capital Fund Stimulus
(including CFRC) Grants. PHAs shall instead follow the Part 85 requirements.
(3) Part 85 Compliance: PHAs shall amend their procurement standards and policies as
necessary in order to expedite and facilitate the use of the funds. This amended policy can be
used only for procurements related to Capital Fund Stimulus (including CFRC) Grants. This
must be done in writing and consistent with PHA policies and procedures (such as Board
approval) and labeled as Capital Fund Stimulus (including CFRC) Grant Procurement Policy.
Specifically, PHAs shall remove all procurement standards that are contrary to Part 85 or the
Recovery Act. Where permitted by Part 85, PHAs may insert their own procedures provided that
they are not contrary to the purposes of the Recovery Act.
(a) For example, a PHA may use their existing protest procedures, written codes of
standards for employees engaged in the award and administration of the contracts and other
procedures as long as they are not contrary to Part 85.
(b) It is important to note that PHAs shall continue to follow all Part 85 requirements
regarding conflicts of interest, contract cost and price.
(4) HUD Handbook: PHAs may use the Procurement Handbook for Public Housing
Agencies (7460.8 rev-2) for guidance. The Handbook can be found at:
http://www.hud.gov/offices/adm/hudclips/handbooks/pihh/74608/index.cfm.
(5) Noncompetitive Proposals: According to 24 CFR 85.36(d)(4), if solicitation of a
proposal is only from one source or if the PHA finds that after solicitation of a number of
sources, that competition is inadequate, the PHA may award the contract noncompetitively
where small purchase procedures, sealed bids or competitive proposals are infeasible and one of

119
the circumstances in 85.36(d)(4)(i) applies. One such circumstance is public exigency that will
not permit a delay resulting from competitive solicitation (85.36(d)(4)(i)(B)). If the PHA finds
that other competitive methods of procurement are infeasible, HUD will support the PHA’s use
of the public exigency circumstance based on the purpose and requirements of the Recovery Act.
Section 3 of the Recovery Act provides that these funds shall be managed and expended to
achieve the purposes specified including commencing expenditures and activities as quickly as
possible consistent with prudent management. Further the Recovery Act has imposed
expeditious obligation and expenditure requirements on the Capital Fund Stimulus (including
CFRC) Grants and directs HUD to assist PHAs as necessary to expedite and facilitate the use of
these grants. PHAs may use the noncompetitive proposals method, but must do so on a contractby-contract basis and in compliance with all Part 85 requirements including the requirement for a
cost analysis and the conflict of interest requirement. The PHA must ensure that the
noncompetitive proposals process followed is clearly captured in their amended Capital Fund
Stimulus (including CFRC) Grant Procurement Policy. Further, the PHA must maintain records
sufficient to detail the significant history of each contract’s procurement. These records will
include, but are not necessarily limited to the following: rationale for the method of procurement,
selection of contract type, contractor selection or rejection, and the basis for the contract price
(85.36(b)(9)). No HUD pre-award review is required for noncompetitive proposals as stated in
Section 8.4(C), Chapter 8 of HUD Handbook No. 7460.8 Rev 2. However, all PHAs are
reminded that they must make available upon HUD’s request the PHA Capital Fund Stimulus
Grant (including CFRC) Procurement Policy and any documents requested related to
procurement activity as stated in 24 CFR 85.36(g).
(6) Force Account: To the extent feasible, the PHA should consider employing

120
existing or additional force account laborers on either a permanent or a temporary basis to
perform Capital Fund stimulus (including CFRC) grant work. See 24 CFR 968.105 and
968.120. No prior HUD approval is required specifically for force account labor, but such work
must be incorporated into the Capital Fund planning, budgeting and reporting documents.
(7) Buy American: PHAs shall follow Buy American requirements of section
1605 of the Recovery Act and use only iron, steel and manufactured goods produced in the
United States in their projects. PHAs must to follow the Interim Final Guidance of OMB at 2
CFR Part 176, published April 23, 2009 at 74 Federal Register 18449.
(8) Questions: HUD’s PIH Customer Service Center (CSC) can address questions
related to HUD’s public housing procurement policy as it relates to the Recovery Act. Energy
conservation information can be obtained through the CSC as well. The toll free number is 1800-955-2232. Emails can be sent to [email protected]. HUD will reply to each inquiry. A
summary of responses will be posted periodically at the Capital Fund webpage.
(9) Procurement of Recovered Materials. State agencies and agencies of a political
subdivision of a state that are using assistance under a HUD program for procurement, and any
person contracting with such an agency with respect to work performed under an assisted
contract, must comply with the requirements of Section 6002 of the Solid Waste Disposal Act, as
amended by the Resource Conservation and Recovery Act. In accordance with Section 6002,
these agencies and persons must procure items designated in guidelines of the Environmental
Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered
materials practicable, consistent with maintaining a satisfactory level of competition, where the
purchase price of the item exceeds $10,000 or the value of the quantity acquired in the preceding
fiscal year exceeded $10,000; must procure solid waste management services in a manner that

121
maximizes energy and resource recovery; and must have established an affirmative procurement
program for procurement of recovered materials identified in the EPA guidelines.
b. Conducting Business in Accordance with Core Values and Ethical Standards/Code of
Conduct. Applicants are subject to 24 CFR Part 85 and are required to develop and maintain a
written code of conduct (see 24 CFR 85.36(b)(3)). Consistent with regulations governing the
Capital Fund Program, your code of conduct must prohibit real and apparent conflicts of interest
that may arise among officers, employees, or agents; prohibit the solicitation and acceptance of
gifts or gratuities by your officers, employees, or agents for their personal benefit in excess of
minimal value; and outline administrative and disciplinary actions available to remedy violations
of such standards.
c. False Statements. A false statement in an application is grounds for denial or termination of
an award and possible criminal, civil or administrative sanctions. See Section VI.B.3(n) for
enforcement requirements.
d. Prohibition Against Lobbying Activities. Applicants are subject to the provisions of
Section 319 of Public Law 101-121 (approved October 23, 1989) (31 U.S.C. 1352) (the Byrd
Amendment), which prohibits recipients of federal contracts, grants, or loans from using
appropriated funds for lobbying the executive or legislative branches of the federal government
in connection with a specific contract, grant, or loan. In addition, applicants must disclose, using
Standard Form LLL (SF-LLL), “Disclosure of Lobbying Activities,” any funds, other than
federally appropriated funds, that will be or have been used to influence federal employees,
members of Congress, or congressional staff regarding specific grants or contracts.
e. Economic Opportunities for Low and Very Low-Income Persons (Section 3). Section 3
of the Housing and Urban Development Act of 1968 (Section 3), 12 U.S.C. 1701u (Economic

122
Opportunities for Low-and Very Low-Income Persons in Connection with Assisted Projects),
and the HUD regulations at 24 CFR Part 135 apply to HUD-funded Housing Projects. Section 3
requires recipients to ensure, to the greatest extent feasible, that employment, and other
economic opportunities will be directed to low- and very-low income persons, particularly those
who are recipients of government assistance for housing, and to business concerns that provide
economic opportunities to low- and very low-income persons in the area in which the project is
located. Additionally, the Section 3 regulations at 24 CFR part 135, subpart E, impose certain
reporting requirements on recipients, including the submission of an annual report, using form
HUD-60002 or HUD’s online system at http://www.hud.gov/offices/fheo/section3/section3.cfm.
The annual report is highly important to the Department in determining compliance with Section
3. Applicants are placed on notice that they are required to annually report Section 3 data, as
applicable. Failure to meet reporting requirements can result in sanctions such as debarment,
suspension, or denial of participation in HUD programs (24 CFR Part 135.76(g)).
f. Drug-Free Workplace. Applicants awarded funds from HUD are required to provide a drugfree workplace. Compliance with this requirement means that the applicant will:
(1) Publish a statement notifying employees that it is unlawful to manufacture, distribute,
dispense, possess, or use a controlled substance in the applicant’s workplace and that such
activities are prohibited. The statement must specify the actions that will be taken against
employees for violation of this prohibition. The statement must also notify employees that, as a
condition of employment under the federal award, they are required to abide by the terms of the
statement and that each employee must agree to notify the employer in writing of any violation
of a criminal drug statute occurring in the workplace no later than 5 calendar days after such
violation;

123
(2) Establish an ongoing drug-free awareness program to inform employees about:
(a) The dangers of drug abuse in the workplace;
(b) The applicant’s policy of maintaining a drug-free workplace;
(c) Any available drug counseling, rehabilitation, or employee maintenance programs;
and
(d) The penalties that may be imposed upon employees for drug abuse violations
occurring in the workplace.
(3) Notify the federal agency in writing within 10 calendar days after receiving notice
from an employee of a drug abuse conviction or otherwise receiving actual notice of a drug
abuse conviction. The notification must be provided in writing to HUD’s Office of
Departmental Grants Management and Oversight, Department of Housing and Urban
Development, 451 Seventh Street, SW., Room 3156, Washington, DC 20410-3000, along with
the following information:
(a) The program title and award number for each HUD award covered;
(b) The HUD staff contact name, telephone, and fax numbers; and
(c) A grantee contact name, telephone, and fax numbers; and
(4) Require that each employee engaged in the performance of the federally funded
award be given a copy of the drug-free workplace statement required in item(a) above and notify
the employee that one of the following actions will be taken against the employee within 30
calendar days of receiving notice of any drug abuse conviction:
(a) Institution of a personnel action against the employee, up to and including
termination consistent with requirements of the Rehabilitation Act of 1973, as amended; or

124
(b) Imposition of a requirement that the employee participate satisfactorily in a drug
abuse assistance or rehabilitation program approved for such purposes by a federal, state, or local
health, law enforcement, or other appropriate agency.
g. Compliance with the Federal Funding Accountability and Transparency Act of 2006
(Pub.L. 109-282) (Transparency Act). Applicants receiving an award from HUD should be
aware of the requirements of the Transparency Act. The Transparency Act requires the
establishment of a central website that make information available to the public regarding
entities receiving federal financial assistance, by not later than January 1, 2008. In fulfillment of
the requirements of the Act, OMB launched http://www.USAspending.gov in December 2007.
The website makes information available to the public on the direct awards made by the federal
government. The Transparency Act also requires beginning not later than January 2009, that
data on subawards be made available on the same website. [Note. There are no subawards in the
Capital Fund Program or in the CFRC Grants.] The only exceptions to this requirement under
the Act are: (1) Federal transactions below $25,000, (ii) credit card transactions prior to October
1, 2008, (iii) awards to entities from all sources did not exceed $300,000 in the previous tax year
of such entity, and (iv) award to individuals. Guidance for receiving an exception under item
(iii) above has not been finalized by OMB. HUD is responsible for placing award information
for direct grantees on the government Web site. Additional information regarding these
requirements will be issued by OMB and will be provided when available.
h. Maximize job creation and economic benefit. PHAs shall give preference to activities that
can be started and completed expeditiously, including a goal of using at least 50 percent of the
funds for activities that can be initiated not later than 120 days after February 17, 2009. (See

125
Section 1602 of the Recovery Act). PHA shall use these grant funds in a manner that maximizes
job creation and economic benefit.
i. Immigration and Nationality Act. It shall be unlawful for the PHA to hire any
nonimmigrant described in section 101(a)(15)(h)(i)(b) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(15)(h)(i)(b)) unless the recipient is in compliance with the requirements for an
H–1B dependent employer (as defined in section 212(n)(3) of such Act (8 U.S.C.1182(n)(3))),
except that the second sentence of section212(n)(1)(E)(ii) of such Act shall not apply. The term
‘‘hire’’ means to permit a new employee to commence a period of employment. This
requirement shall be effective during the 2-year period beginning February 17, 2009.
j. Prevailing Wages and Federal Labor Standards. Federal labor standards are applicable to
CFRC grants. These labor standards involve the payment of not less than prevailing wage rates,
and may include overtime requirements (premium pay for hours worked over 40 in a workweek),
and recordkeeping and reporting requirements.
(1) Davis-Bacon wage requirements apply to the activities funded with CFRC grant
funds. The PHA must obtain the appropriate Davis-Bacon wage decision, which sets forth the
minimum wage rates that may be paid to construction laborers and mechanics. This wage
decision and provisions requiring compliance with federal labor standards must be included in
any bid specifications and construction contracts. Development work undertaken directly by the
PHA, with its own employees, is also subject to Davis-Bacon wage requirements.
(2) HUD-determined wage rates are applicable to all maintenance laborers and
mechanics engaged in the operation of revitalized housing.
(3) Exclusions. Under Section 12(b) of the 1937 Act, prevailing wage requirements do
not apply to individuals who:

126
(a) Perform services for which they volunteered;
(b) Do not receive compensation for those services or are paid expenses, reasonable
benefits, or a nominal fee for the services; and
(c) Are not otherwise employed in the work involved (24 CFR Part 70).
(4) If other federal programs are used in connection with CFRC activities, federal labor
standards requirements apply to the extent required by the other federal programs on portions of
the project that are not subject to Section 12 of the 1937 Act. Where other federal programs and
funding are mixed in the CFRC activity, Section 12 of the 1937 Act would apply to the entire
activity.
k. Environmental Requirements.
(1) HUD Approval. HUD notification that you have been selected to receive a CFRC
grant constitutes only preliminary approval. Grant funds may not be released under this NOFA
(except for activities that are excluded from environmental review under 24 CFR part 58 or part
50) until the responsible entity, as defined in 24 CFR 58.2(a)(7), completes an environmental
review and you submit and obtain HUD approval of a request for release of funds and the
responsible entity’s environmental certification, in accordance with 24 CFR part 58 (or HUD has
completed an environmental review under 24 CFR part 50, where HUD has determined to
conduct the environmental review).
(2) Responsibility. If you are selected for funding and an environmental review has not
been conducted on the targeted site, the responsible entity must assume the environmental review
responsibilities for projects being funded by CFRC. If you object to the responsible entity
conducting the environmental review, on the basis of performance, timing, or compatibility of
objectives, HUD will review the facts and determine who will perform the environmental

127
review. At any time, HUD may reject the use of a responsible entity to conduct the
environmental review in a particular case on the basis of performance, timing, or compatibility of
objectives, or in accordance with 24 CFR 58.77(d)(1). If a responsible entity objects to
performing an environmental review, or if HUD determines that the responsible entity should not
perform the environmental review, HUD may designate another responsible entity to conduct the
review or may itself conduct the environmental review in accordance with the provisions of 24
CFR part 50. You must provide any documentation to the responsible entity (or HUD, where
applicable) that is needed to perform the environmental review.
(3) Phase I and Phase II Environmental Site Assessments. If you are selected for
funding, you must get a Phase I environmental site assessment completed in accordance with the
ASTM Standard E 1527-05, as amended, for each affected site. A Phase I assessment is required
whether the environmental review is completed under 24 CFR part 50 or 24 CFR part 58. The
results of the Phase I assessment must be included in the documents that must be provided to the
responsible entity (or HUD) for the environmental review. If the Phase I assessment recognizes
environmental concerns or if the results are inconclusive, a Phase II environmental site
assessment will be required.
(4) Request for Release of Funds. You, and any participant in the development process,
may not undertake any actions with respect to the project that are choice-limiting or could have
environmentally adverse effects, including demolishing, acquiring, rehabilitating, converting,
leasing, repairing, or constructing property proposed to be assisted under this NOFA, and you,
and any participant in the development process, may not commit or expend HUD or local funds
for these activities, until HUD has approved a Request for Release of Funds following a
responsible entity’s environmental review under 24 CFR part 58, or until HUD has completed an

128
environmental review and given approval for the action under 24 CFR part 50. In addition, you
must carry out any mitigating/remedial measures required by the responsible entity (or HUD). If
a remediation plan, where required, is not approved by HUD and a fully funded contract with a
qualified contractor licensed to perform the required type of remediation is not executed, HUD
reserves the right to determine that the grant is in default.
l. Funding Restrictions. Funds awarded must be expended only for approved uses. Grantees
must following the funding restrictions in Section IV.D of this NOFA.
m. Relocation. If residents will need to be relocated, the applicant must develop a relocation
plan, in consultation with the affected residents, within three (3) months of grant award.
Relocation or temporary relocation carried out as a result of the grant is subject to the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), the URA
regulations at 49 CFR part 24, and regulations at 24 CFR 968.108 or successor part.
n. Enforcement. The commitments made for each grant application will be strictly monitored
and enforced. A false statement in an application is grounds for denial or termination of an
award and possible criminal, civil or administrative sanctions. CFRC funds not used in
accordance with this NOFA will be recaptured or repaid with non-public housing funding
sources. HUD may take all other available remedies to ensure funds are used in compliance with
this NOFA. Further, failure to comply with the performance measures as indicated in this NOFA
will subject the grant to sanctions including recapture of grant funds proportional to the shortfall
of the performance measure(s).
o. OMB Circulars Relevant to Leverage and Match. It is important to note that the following
Office of Management and Budget (OMB) circulars are applicable, and particular attention

129
should be given to the provisions concerning the use of federal funds for leverage and/or match
requirements.
(1) OMB Circular A-102 (Grants and Cooperative Agreements with State and Local
Governments) establishes consistency and uniformity among federal agencies in the management
of grants and cooperative agreements with state, local, and federally recognized Indian tribal
governments. The circular provides that state and local administration of federal funds must
include fiscal and administrative requirements that are sufficiently specific to ensure that funds
are used in compliance with all applicable federal statutory and regulatory provisions, costs are
reasonable and necessary for operating these programs, and funds are not to be used for general
expenses required to carry out other responsibilities of a state or its subrecipients. HUD’s
implementation of OMB Circular A-102 is found at 24 CFR part 85.
(2) OMB Circular A-110 (Uniform Administrative Requirements for Grants and
Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit
Organizations) sets forth standards for obtaining consistency and uniformity among federal
agencies in the administration of grants and agreements with institutions of higher education,
hospitals, and other nonprofit organizations. This circular specifies the conditions for which
funds may be used for cost sharing or matching and provides that federal funds shall not be
accepted as cost sharing or matching, except where authorized by federal statute to be used for
cost sharing or matching. HUD’s implementation of OMB Circular A-110 is found at 24 CFR
part 84.
(3) OMB Circular A-87 (2 CFR Part 225) (Cost Principles for State, Local, and Indian
Tribal Governments) establishes principles and standards for determining costs for federal
awards carried out through grants, cost reimbursement contracts, and other agreements with state

130
and local governments and federally recognized Indian tribal governments (governmental units).
This circular provides that an allowable cost under a federal award does not include a cost
sharing or matching requirement of any other federal award in the applicable funding period,
except as specifically provided by federal law or regulation.
(4) OMB Circular A-122 (2 CFR 230) (Cost Principles for Non-Profit Organizations)
establishes principles for determining costs of grants, contracts, and other agreements with
nonprofit organizations. This circular provides, similar to OMB Circular A-87, that an allowable
cost under a federal award in the applicable funding period does not include a cost sharing or
matching requirement of any other federally financed program.
(5) NOTE: Applicants for funding under this NOFA are reminded of the importance of
confirming that any federal grant funds that they intend to use as leverage or match are
available to be used as that way under applicable statutes and regulations.
VII. Agency Contact(s):
Before the application deadline date, HUD staff will be available to provide you with general
guidance and technical assistance. However, HUD staff is not permitted to assist in preparing
your application. If you have a question or need a clarification, you may contact the Office of
Capital Improvements by sending an email message to [email protected]
VIII. Other Information:
A. Paperwork Reduction Act.
The information collection requirements contained in this document have been approved by the
Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3520) and assigned OMB control number 2577-0261 . In accordance with the
Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to

131
respond to, a collection of information unless the collection displays a currently valid OMB
control number. Public reporting burden for the collection of information is estimated to average
the following number of hours per PHA for each Category’s application: a Category 1
application averages 9 hours per PHA per application; a Category 2 application averages 6 hours
per PHA per application; a Category 3 application averages 6 hours per PHA per application; a
Category 4 application averages 7 hours per PHA per application. This includes the time for
collecting, reviewing, and reporting the data for the application. The information will be used
for grantee selection and monitoring the administration of funds. Response to this request for
information is required in order to receive the benefits to be derived.