[Federal Register Volume 65, Number 53 (Friday, March 17, 2000)]
[Notices]
[Pages 14694-14705]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 00-6572]



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Part III





Department of Housing and Urban Development





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Fiscal Year 2000 Funding Availability for the Assisted Living 
Conversion Program (ALCP) for Section 202 Projects; Notice

Federal Register / Vol. 65, No. 53 / Friday, March 17, 2000 / 
Notices

[[Page 14694]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4581-N-01]


Fiscal Year 2000 Notice of Funding Availability for the Assisted 
Living Conversion Program (ALCP) for Section 202 Projects

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Notice of funding availability (NOFA).

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SUMMARY: This NOFA announces the FY 2000 funding available for 
conversions of units within existing Section 202 projects into licensed 
Assisted Living Facilities (ALFs).
    Purpose of the Program. The purpose of this program is to provide 
the owners/borrowers of Section 202, 202/8 and 202 Project Rental 
Assistance Contract (PRAC) projects designed for the elderly with a 
grant to allow conversion of some or all of the units in these housing 
projects into ALFs serving frail elderly, as defined in Section 
232(B)(6) of the National Housing Act.
    Available Funds. $50 million for Section 202 conversions to ALFs.
    Eligible Applicants. Only owners/borrowers of eligible developments 
(as described in Section III of this NOFA) may apply for and become the 
recipient of a grant.
    Application Due Date. July 17, 2000.
    Match. None required.

ADDITIONAL INFORMATION:  

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

    Application Due Date. Your completed application (one original and 
four copies) is due on or before 6:00 pm, local time, on July 17, 2000, 
at the address shown below:
    Addresses for Submitting Applications. The official place for 
receipt of your application is ONLY in the designated lead Multifamily 
Hub in the HUD State Office.
    You must ALSO send one copy of your application to the Office of 
Portfolio Management, Room 6160, ATTN: ALCP Staff, HUD Building, 451 
Seventh Street, SW, Washington, DC 20410
    Submit an original and three copies of the ALCP application to the 
lead HUD Multifamily Hub, as designated in Section II of this NOFA, 
with jurisdiction over your development.
    Appendix A to this NOFA lists the four (4) lead Multifamily Hubs 
with the Program Centers under them, to facilitate applicants knowing 
the correct location to send the application. Appendix B to this NOFA 
consists of a list of the four (4) lead HUD Housing Multifamily Hubs 
designated to receive ALCP applications, with addresses and phone 
numbers.
    Application Submission Procedures. Mailed Applications. If your 
application is mailed, your application will be considered timely filed 
if postmarked on or before 12:00 midnight on the application due date 
and received by the appropriate HUD Multifamily Hub on or within ten 
(10) days of the application due date.
    Applications Sent by Overnight/Express Mail Delivery. If your 
application is sent by overnight delivery or express mail, your 
application will be considered timely filed if received at the 
Multifamily Hub before or on the application due date, or upon 
submission of documentary evidence that the application was placed in 
transit with the overnight delivery service by no later than the 
specified application due date.
    Hand Carried Applications. If your application is hand carried, the 
application will be accepted by a Multifamily Hub between 8:45 a.m. and 
5:15 p.m., local time, Monday through Friday (except on designated 
national holidays, e.g., Memorial Day (5/31/00) and Independence day 
(7/4/00)). On the application due date, applications will be accepted 
at the Hub up to 6:00 p.m. local time. This deadline is firm.
    For Application Kits, Further Information, and Technical 
Assistance. For Application Kits. You may obtain an ALCP application 
kit and supplemental information by calling either the Multifamily 
Housing Clearinghouse at (voice) 1-800-MULTI-70 (1-800-685-8470). There 
is a separate application kit for service coordination information 
(which is necessary for those needing to enhance or add service 
coordination per Section III(A)(14) of this NOFA). Please make sure to 
provide your name, address (including zip code), and telephone number 
(including area code). The application kit is also available on the 
Internet through the HUD web site at http://www.hud.gov.
    For Further Information and Technical Assistance. You should 
contact the lead Multifamily Hub where you will be mailing your ALCP 
Application. (Please refer to Hub telephone numbers in Appendix B.)
    You also may contact Aretha Williams, Housing Project Manager, 
Office of Business Products, Room 6138, at (202)-708-2866 x2480, for 
questions regarding the physical conversion of the ALF. Ms. Williams 
can be reached, also by e:mail, at ``aretha__m.__williams@hud.gov''. 
For questions about management of the ALF and coordination with 
agencies of the Department of Health and Human Services and other third 
parties, you may contact Jerry Nachison, Senior Housing Project 
Manager, Office of Portfolio Management, Room 6168 at (202)-708-3730 
x2485. Mr. Nachison may be reached also by e:mail at 
``jerold__s.__nachison@hud.gov''. Both Ms. Williams and Mr. Nachison 
are located at the Department of Housing and Urban Development, 451 
Seventh Street, SW, Washington, DC 20410 (neither of the telephone 
numbers are toll free).
    If you have a hearing or speech impairment, you may access either 
telephone number via TTY by calling the Federal Information Relay 
Service at 1-800-877-8339.

II. Amount Allocated

    This NOFA makes available $50,000,000 for the physical conversion 
of section 202 projects or portions of projects to ALFs. The FY 2000 
funding is in the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, for the 
fiscal year ending September 30, 2000 (Pub.L. 106-74, 113 Stat. 1047, 
approved October 20, 1999).
    Under the ALCP, the 18 HUD Multifamily Hubs are grouped into four 
geographic areas, so that the amount of fair-shared grant funds will be 
sufficient to enable reasonable competition, and insure projects of 
feasible size and quality.
    The four geographic areas and the lead Hub under the ALCP for each 
are:
    The lead Hub for the East Geographic Area is Buffalo (the other 
Hubs which feed into Buffalo for the ALCP are Boston, New York, 
Philadelphia, and Baltimore).
    The lead Hub for the South Geographic Area is Greensboro (the other 
Hubs which feed into Greensboro for the ALCP are Atlanta, Jacksonville, 
and Fort Worth).
    The lead Hub for the Central Geographic Area is Kansas City (the 
other Hubs which feed into Kansas City for the ALCP are Chicago, 
Columbus, Detroit, and Minneapolis).
    The lead Hub for the West Geographic Area is San Francisco (the 
other Hubs which feed into San Francisco for the ALCP are Seattle, Los 
Angeles and Denver).
    The allocation formula used for the ALCP reflects demographic 
characteristics of age and incidence of frailty that would be expected 
for program participants. The Fiscal Year (FY) 2000 formula consists of 
three data

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elements from the 1990 decennial census:
    (1) The number of non-institutional elderly population aged 55 
years or older with a self-care limitation,
    (2) The number of non-institutional elderly population aged 75 or 
older with a mobility limitation, and,
    (3) The number of the non-institutional elderly population aged 75 
or older with both a mobility limitation and a self-care limitation.
    The data were taken from the 1990 Census Special Tabulation on 
Aging, STP-14, sponsored by the Administration on Aging, U.S. 
Department of Health and Human Services.
    A mobility limitation is defined as a health condition that has 
lasted for six (6) or more months, making it difficult for the person 
to go outside the home alone. This includes outside activities such as 
shopping or visiting the doctor's office. A self-care limitation is 
defined as a health care limitation that has lasted for six (6) months 
or more which makes it difficult for the person to take care of his/her 
own personal needs such as dressing, bathing, or getting around in the 
home.
    A fair share factor for each state was developed by taking the sum 
of the three elements within each state as a percentage of the sum of 
the three elements for the total United States. The resulting 
percentage for each state was then adjusted to reflect the relative 
difference in the cost of providing housing among the states. The total 
of the grant funds available ($50 million) was multiplied by the 
adjusted fair share percentage for each state, and the resulting funds 
for each state were totaled for each of the four geographic areas.
    The ALCP grant funds fair share allocations for the four geographic 
areas are shown below:

 Fiscal Year Allocation 2000 for the Assisted Living Conversion Program
                                 (ALCP)
------------------------------------------------------------------------
                                                               Grant
                          Area                               authority
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East....................................................     $14,760,882
South...................................................      14,567,452
Central.................................................      11,989,455
West....................................................       8,682,211
                                                         ---------------
                                                              50,000,000
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III. Program Description; Eligible and Ineligible Applicants, 
Developments, and Activities

(A) Program Description

    Assisted living facilities are designed to accommodate frail 
elderly and people with disabilities who can live independently but 
need assistance with activities of daily living (e.g., assistance with 
eating bathing, grooming, dressing and home management activities. ALFs 
must provide support services such as personal care, transportation, 
meals, housekeeping, and laundry. Frail elderly person means an 
individual 62 years of age or older who is unable to perform at least 
three activities of daily living (ADLs) as defined by the regulations 
for HUD's Section 202 Program (Supportive Housing for the Elderly) at 
24 CFR 891.205.
    Assisted living is defined in section 232(b)(6) of the National 
Housing Act (12 U.S.C. 1715w). The ALCP provides funding for the 
physical costs of converting some or all of the units of a section 202 
development into an ALF, including the unit configuration, common and 
services space and any necessary remodeling, consistent with HUD or the 
State's statute/regulations (whichever is more stringent).
    Typical funding will cover basic physical conversion of existing 
project units, common and services space. There must be sufficient 
community space to accommodate a central kitchen or dining facility, 
lounges, recreation and other multiple-areas available to all residents 
of the Section 202 projects, or office/staff spaces in the ALF. When 
food is prepared at an off-site location, the preparation area of the 
facility must be of sufficient size to allow for the installation of a 
full kitchen, if necessary. You must provide supportive services for 
the residents either directly or through a third party. Your 
application must include a firm commitment for the supportive services 
to be offered within the ALF as part of the application. You may charge 
assisted living residents for meals and/or service fees. Residents may 
contract with third party agencies directly for nursing, therapy or 
other services not offered by the ALF.

(B) Program Requirements

    The following program requirements apply:
    (1) Your ALF facility must be licensed and regulated by the State 
(or if there is no State law providing such licensing and regulation, 
by the municipality or other subdivision in which the facility is 
located). Each assisted living unit must include its own kitchen, 
bathroom, living/dining area (1 bedroom unit) or bedroom/living/dining 
area (efficiency unit) and must meet the state and/or local licensing, 
building, zoning and other requirements for an ALF.
    (2) Your ALF must be available to qualified elderly and persons 
with disabilities, consistent with the rules and payment plans of the 
State, who need and want the supportive services in order to remain 
independent and avoid premature institutionalization.
    (3) Your ALF's residents are section 202 tenants and must comply 
with the requirements applicable thereto. Thus, you cannot charge 
additional rent over what is charged to residents in the non-ALF 
portion of the section 202 project. All admissions to the ALF must be 
through the section 202 project admissions office. However, persons 
accepted into the ALF also must sign an ALF admissions agreement which 
shall be an addendum to the section 202 lease.
    (4) At a minimum, your ALF must provide room, board (as defined in 
Section III(A)(6)) of this NOFA) and continuous protective oversight 
(CPO). CPO involves a range of activities and services that may include 
such things as awareness by management and staff of the occupant's 
condition and location as well as an ability to intervene in a crisis 
for dependent and relatively independent occupants on a 24-hour basis. 
The two occupant groups in an ALF are:
    (a) Independent Occupants: Awareness by management and staff of the 
occupant's condition and whereabouts as well as the availability of 
assistance for the occupants as needed.
    (b) Dependent occupants: Supervision of nutrition, assistance with 
medication and continuous responsibility for the occupants' welfare.
    (5) Anyone moving into an ALF unit must agree to accept as a 
condition of occupancy the board and services required for the purpose 
of complying with state and local law and regulation. However, 
occupancy in an ALF unit may not be conditioned on receipt of other 
services or board not required by state or local requirements.
    (6) Your ALF must offer three meals per day to each resident.
    (a) Residents in old section 202 (``SH'') projects (those approved 
before 1972) which may not have kitchens in their units must take such 
meals as required by their mandatory meals agreement, or by the state's 
mandated requirements if more stringent (e.g., 2 meals, 2 snacks 
daily).
    (b) Residents whose apartments have kitchens must take at least the 
number of meals a day provided by the facility, per their mandatory 
meals requirement, or as required by state or local rules, if more 
stringent. If the facility does not have a mandatory meals plan, then 
state and local rules govern.

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    In either case, ALF management must coordinate meals requirements 
with the needs of residents who are out part of the day, e.g., in day 
care. The meals program may not be operated at a profit by the owner/
borrower.
    (7) Your ALF's operation must be part of the section 202 owner/
borrower's management organization. Some or all of its functions may be 
contracted out. The ALF must predicate its budget on a two-tiered 
structure under which board and supportive service income and expenses 
must be maintained separately and independently from the regular income 
and expenses of the section 202 project. The two components of ALF 
costs are:
    (a) Charges/payment for board, which may be on a sliding scale or 
any other equitable fee system; and
    (b) Charges/payment for necessary supportive services, which may 
include a combination of resident fees, Medicaid and/or other third 
party payments.
    (8) Priority admissions for ALF units is as follows:
    (a) Current residents desiring an ALF unit and meeting the program 
requirements (no resident can be required to accept an ALF unit).
    (b) Qualified individuals or families needing ALF services who are 
already on the section 202 project's waiting list;
    (c) Qualified individuals or families in the community needing ALF 
services wanting to be added to the project's waiting list; and

    Note: Qualified physically disabled non-elderly persons needing 
assisted living services are eligible to occupy these units on the 
same basis as elderly persons.

    (9) The management of the section 202 project must set up a 
separate waiting list for ALF units. ALF units must be for eligible 
Section 202 residents who meet the admissions/discharge requirements as 
established for assisted living by State and local licensing, or HUD 
frailty requirements under 24 CFR 891.205 if more stringent.
    (10) Costs of meals and supportive services are NOT covered by this 
HUD grant.
    These items must be paid for through other sources, e.g., a mix of 
resident fees and/or third party providers. Evidence of third party 
commitment(s) must be included as part of the application. (See Section 
IV(B) of this NOFA.) The assisted living supportive services program 
must promote independence and provide personal care assistance based on 
individual needs in a home-like environment (see Section VI(B)(8)(b) 
through (c) of this NOFA).
    (11) Upon receipt of a grant under this program, all owner/
borrowers participating in the ALCP must provide a Declaration of 
Restrictive Covenants (DRC), which will be recorded with the land, to 
retain the low income character of the housing, and to maintain the 
project (including the ALF), as a moderate, low, or very low income 
facility (as appropriate) for at least 20 years beyond the current 40-
to-50 year term of the Section 202 mortgage loan or capital advance.
    (12) In addition to the physical costs of the conversion (see 
Section VI(B)(5) of this NOFA), the grant will pay for reasonable 
legal, architectural and consultant fees, and temporary relocation 
costs for current tenants if they must vacate their unit while 
conversion work is underway (normal temporary relocation costs include 
increases in rent, reconnection of telephones, moving costs and 
appropriate out-of-pocket expenses).
    (13) This program does NOT allow permanent displacement of any 
resident living in the project at the time the application was 
submitted to HUD.
    (14) The ALCP requires service coordination responsible for linking 
the ALF to services in the community which are available to low income 
persons. All section 202 projects funded under this NOFA must have 
sufficient service coordination in place, or request additional funds 
if appropriate, to ensure that services meeting licensing requirements 
are available to ALF residents on an ongoing basis. Service 
coordination must be described in the application (see Section 
VI(B)(8)(b) through (c) of this NOFA). If you need to enhance an 
existing service coordination program or add one where it does not 
exist, you must apply for funding through the Service Coordinator NOFA, 
published elsewhere in this edition of the Federal Register, and attach 
a copy of the Form HUD 424M so indicating the request to the ALCP 
application. Alternatively, you may show evidence that funding for the 
enhanced service coordination is provided by other sources and indicate 
such funding on the HUD Form 424M which is exhibit 10(c) of your ALF 
application. If you are funded under this NOFA and requested new or 
enhanced service coordination in this application, you will be funded 
first under the service coordinator NOFA.
    In addition to above requirements, the following applicable 
guidelines are stated:
    (a) The ALF must be staffed either directly or through coordination 
with local agencies, depending on state regulations or local 
requirements. These may also serve non-ALF residents of the project on 
a time available and appropriate fee basis.
    (b) The ALF may cater to the special needs of residents depending 
on the condition or diagnosis, such as Alzheimer's disease. If it does 
so, the design/environment of such facilities must accommodate those 
needs, e.g., dementia special care unit. However, the ALF CANNOT 
provide a service it is not licensed by the State or locality to 
provide.

    Note 1: Owners of section 202/PRAC projects are reminded that 
they may include a PRAC payment of up to $15/unit/month consistent 
with 24 CFR 891.225(b)(2) to cover part of the cost of meals and/or 
supportive services for frail elderly residents, including residents 
of the ALF.


    Note 2: Training for ALF staff is an eligible project cost under 
existing operating procedures.

    For further information on ALFs, please refer to Handbook 4600.1, 
CHG-1, ``Mortgage Insurance for Residential Care Facilities,'' Chapter 
13. This Handbook and recent ALF program Notices are accessible through 
HUDCLIPS on HUD's web site. The URL for the HUDCLIPS Database Selection 
Screen is http://www.hudclips.org/subscriber/cgi/legis.cgi. These 
notices are in the Handbooks and Notices--Housing Notices database. 
Enter only the number without the letter prefix (e.g., 99-16) in the 
``Document number'' to retrieve the program notice.
    For further guidance on service coordinators, please refer to 
Handbook 4381.5 REV-2, CHANGE-2, Chapter 8, ``The Management Agent's 
Handbook,'' which is also available through the HUDCLIPS database.

(C) Eligible Applicants

    Only owner/borrower corporations defined in 24 CFR part 278 as it 
existed before April 1, 1995 (those section 202 projects funded before 
1972), and in 24 CFR 891.200 and 891.500 (those section 202 projects 
funded from 1976 onward) are eligible for funding. To be eligible, 
owner/borrowers of any Section 202, 202/8 or Section 202/PRAC 
development must meet the following criteria:
    (1) Must be in compliance with your Loan Agreement, Capital Advance 
Agreement, Regulatory Agreement, Housing Assistance Payment contract, 
Project Rental Assistance Contract, Rent Supplement or LMSA contract, 
or any other HUD grant or contract.
    (2) Must be in compliance with all fair housing and civil rights 
laws, statutes, regulations, and executive orders as enumerated in 24 
CFR 5.105(a). See Section V(B) of this NOFA for further explanation.

    Note: If your eligibility status changes during the course of 
the grant term, making

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it ineligible to receive the grant (e.g., prepayment of mortgage, 
sale/TPA of property, or opting out of a Section 8 Housing 
Assistance payment (HAP) contract), HUD retains the right to 
terminate the grant and recover funds made available through this 
NOFA.

(D) Eligible Developments

    Section 202, 202/8 and 202/PRAC developments for the elderly that 
have been in occupancy for no less than five years since the date of 
the HUD-2485 Form ``permission to occupy'' permit and have completed 
Final Closing. Your project must:
    (1) Meet HUD's Uniform Physical Conditions Standards at 24 CFR part 
5, subpart G. Meeting these standards as described, means that the 
project, based on the most recent Real Estate Assessment center (REAC) 
physical inspection report and responses thereto, must have a 
``satisfactory'' rating as evidenced by a score of 60 or better or an 
approved and on schedule repair plan for developments scoring less than 
60. Additionally, the project must have no uncorrected and outstanding 
Exigent Health and Safety violations. Finally, the project must not 
have on file a management review with a rating of ``minimally 
satisfactory'' or ``unsatisfactory'' with open and unresolved findings.
    (2) Have a residual receipts account separate from the Reserve for 
Replacement account, or agree to establish this account as a condition 
for getting the award(s).

(E) Ineligible Applicants

    (1) Owners of Section 202 developments designed specifically for 
people with disabilities.
    (2) Owners of Section 232 developments and any other project 
insured by one or more sections of the National Housing Act.
    (3) Owners of Section 202/236 developments. These are section 202 
projects which were converted to section 236 mortgage insurance during 
their development phase in the early 1970s.
    (4) Property management companies and agents of property management 
companies.

(F) Eligible Conversion Activities

    Eligible activities are:
    (1) Retrofitting to meet Section 504 accessibility requirements, 
minimum property standards for accessibility and/or building codes and 
health and safety standards for ALFs in that jurisdiction. Examples are 
items such as addition of:
    (a) Sprinkler systems;
    (b) An elevator or upgrades thereto;
    (c) Lighting upgrades;
    (d) Major physical or mechanical systems of projects necessary to 
meet local code or assisted living requirements;
    (e) Upgrading to accessible units for the ALF with moveable 
cabinetry, accessible appliances, sinks, bathroom and kitchen fixtures, 
closets, hardware and grab bars, widening of doors, etc.
    (f) Upgrades to safety and emergency alert systems;
    (g) Addition of hallway railings; and,
    (h) Medication storage and work stations;
    (2) Retrofitting to add, modify and/or outfit common space, office 
or related space for ALF staff including a service coordinator and file 
security, and/or a central kitchen/dining facility to support the ALF 
function (e.g., outfit lounge/common space/dining furniture, kitchen 
equipment for cooking/serving and dishware).
    (3) Retrofitting to upgrade a regular unit to an accessible unit 
for a person/family with disabilities who is being displaced from an 
accessible unit in the portion of the project that is being converted 
to the ALF, where such unit is not available.
    (4) Temporary relocation; and,
    (5) Consultant, architectural and legal fees.

(G) Ineligible Activities

    You may not use funds available through this NOFA to:
    (1) Add additional dwelling units to the existing project;
    (2) Pay the costs of any of the necessary direct supportive 
services needed to operate the ALF;
    (3) Purchase or lease additional land;
    (4) Rehabilitate (see definition at 24 CFR 891.105) the project for 
needs unrelated directly to the conversion of units and common space 
for assisted living;
    (5) Use the ALCP to reduce the number of accessible units in the 
project that are not part of the ALF and currently occupied by people 
with disabilities who need the features of an accessible unit;
    (6) Permanently relocate any resident out of the project; and,
    (7) Increase the management fee.

IV. Program Requirements

    Each applicant must comply with the following requirements:

(A) Statutory, Regulatory and Other Program Requirements.

    You must comply with all section 202 program statutory requirement 
(see Section 202 of the Housing Act of 1959 as amended) and regulatory 
requirements (see 24 CFR part 891) and statutory requirements under 
Section 232(b)(6). Please note that all ALCP projects must conform to 
the 500-year flood plain limitation (See Section VIII of this NOFA.) 
Construction of ALCP units is considered a ``critical action'' for 
purposes of the flood plain requirement.
    Excess Residual Receipts (over $500/unit) and Reserve for 
Replacement (R4R) funds (over $1000/unit) in Project Accounts that are 
not approved for another use at the time of application to HUD under 
this NOFA are considered available funds and must be applied towards 
the cost of conversion activities. Before making this determination, 
however, HUD staff will consider the extent of repair/replacement needs 
indicated in the most recent REAC physical inspection and not yet 
approved and any ongoing commitments such as non-grant-based service 
coordinator or other funding, where existing, deduct the estimated 
costs of such items from the R4R and residual receipts balances to 
determine the extent of available residual receipts and R4R funds for 
the ALCP.
    If funded, you must also file a HUD Form-2530 for all construction 
contractors, architects, consultants, and service provider 
organizations under direct contract with you that will be engaged under 
this NOFA and comply with all state and local licensing, zoning and 
building code requirements.

(B) Meals and Supportive Services

    You must develop and submit a Supportive Services Plan (SSP) for 
the services and coordination of the supportive services which will be 
offered in the ALF to the appropriate State or local organization(s) 
which are expected to provide those supportive services. (See Section 
VI(B)(8) of this NOFA below, for the information which must be in the 
SSP.) You must submit one copy of your SSP to each appropriate state or 
local service funding organizations well in advance of the application 
deadline, for appropriate review. The state or local funding 
organization(s) must return the SSP to you with appropriate comments 
and indication of funding commitment, which you will then include with 
the application you submit to HUD.
    You must ALSO submit the application to the appropriate 
organization(s) which license ALFs in your jurisdiction. The licensing 
agency(ies) must approve your plan, and must also certify that the ALF 
and the proposed supportive services identified in your SSP, is 
consistent with local statute and regulations and well

[[Page 14698]]

designed to serve the needs of the frail elderly and people with 
disabilities who will reside in the ALF portion of your project.
    Finally, you must also submit an agreement to pursue appropriate 
ALF licensing in a timely manner.

(C) Minimum Size Limits for an ALF

    An ALF must be economically feasible. Consistent with HUD Handbook 
4600.1, CHG-1, the minimum size for an ALF is five units.

(D) Economic Opportunities for Low and Very Low-Income Persons (Section 
3).

    You must comply with section 3 of the Housing and Urban Development 
Act of 1968, 12 U.S.C. 1701u (Economic Opportunities for Low and Very 
Low Income Persons), and its implementing regulations at 24 CFR part 
135. You must ensure that training, employment and other economic 
opportunities shall, to the greatest extent feasible, be directed 
toward low and very low-income persons, particularly those who are 
recipients of government assistance for housing and to business 
concerns which provide economic opportunities to low and very low 
income persons and including people with disabilities.

(E) Compliance with Fair Housing and Civil Rights Laws

    If you, the applicant (a) have been charged with a systemic 
violation of the Fair Housing Act by the Secretary alleging ongoing 
discrimination; (b) are the 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 
noncompliance findings under Title VI of the Civil Rights Act of 1964, 
section 504 of the Rehabilitation Act of 1973, or section 109 of the 
Housing and Community Development Act of 1974, your application will 
not be evaluated under this NOFA if, the charge, lawsuit, or letter of 
findings has not been resolved to the satisfaction of the Department 
before the application deadline, HUD's decision regarding whether a 
charge, lawsuit, or a letter of findings has been satisfactorily 
resolved will be based upon whether appropriate actions have been taken 
necessary to address allegations of ongoing discrimination in the 
policies or practices involved in the charge, lawsuit, or letter of 
findings.

(F) Additional Nondiscrimination Requirements

    As you will be converting some of your project to an ALF, you 
should note that 24 CFR 891.120(b) requires you to meet all 
accessibility requirements. Additionally, you must comply with the 
section 504 regulations at 24 CFR part 8, the Americans with 
Disabilities Act and the regulations at 24 CFR part 36, as applicable.

V. Application Selection Process

(A) Review for Curable Deficiencies.

    You should ensure that your application is complete before 
submitting it to HUD.
    HUD will screen all applications received by the deadline for 
curable deficiencies. With respect to correction of deficient 
applications, HUD may not, after the application due date and 
consistent with HUD's regulations in 24 CFR part 4, subpart B, consider 
any unsolicited information an applicant may want to provide. HUD may 
contact an applicant to clarify an item in the application or to 
correct technical deficiencies. Please note, however, that HUD may not 
seek clarification of items or responses that improve the substantive 
quality of a response to any selection factors. In order not to 
unreasonably exclude applications from being rated and ranked, HUD may 
contact applicants to ensure proper completion of the application and 
will do so on a uniform basis for all applicants. Examples of curable 
(correctable) technical deficiencies include failure to submit the 
proper certifications or failure to submit an application that contains 
an original signature by an authorized official. In each case under 
this NOFA, the appropriate HUD field office will notify you in writing 
by describing the clarification or technical deficiency. You must 
submit clarifications or corrections of technical deficiencies in 
accordance with the information provided by the GMC within 14 calendar 
days of the date of receipt of the HUD notification. (If the due date 
falls on a Saturday, Sunday, or Federal holiday, your correction must 
be received by HUD on the next day that is not a Saturday, Sunday, or 
Federal holiday.) If the deficiency is not corrected within this time 
period, HUD will reject the application as incomplete, and it will not 
be considered for funding. The following is a list of the deficiencies 
that will be considered curable in ALCP applications:

Exhibits

    (1) *(a) Articles of Incorporation, or certification of Articles of 
Incorporation
    *(b) By-laws, or certification of by-laws
    (c) Exhibit 3--Evidence of occupancy for at least five years
    (d) Exhibit 5(c)--Original project plans
    (e) Exhibit 5(h)--Relocation
    (f) Exhibit 7 --Evidence of Permissive Zoning
    (g) Exhibit 8(h)--Support Letters from Governmental Agencies that 
License ALFs
    (10) Certifications and Forms
    (a) Standard Form 424, Application for Federal Assistance
    (b) Standard Form 424D, Assurances Construction Programs
    (c) Form HUD 424M, Federal Assistance Funding Matrix
    (d) Form HUD-50070, Drug-free Workplace
    (e) Form HUD-50071, Payments to Influence Federal Transactions and 
Standard Form-LLL, Disclosure of Lobbying Activities
    (f) Form HUD 2880, Applicant/Recipient Disclosure/Update Report, 
including Social Security and Employment Identification numbers
    (g) Form HUD-2992, Certification Regarding Debarment and 
Suspension,
    (h) Form HUD-2991, Certification of Consistency with the 
Consolidated Plan (Plan), for the Jurisdiction in Which the Proposed 
ALF will be located.
    (i) Executive Order 12372 Certification, a certification that you 
have submitted a copy of your application, if required, to the State 
agency (single point of contact) for State review in accordance with 
Executive Order 12372.
    (j) Certification of Residual Receipts Account
    (k) Conflict of Interest Certification
    (l) Certification for ALF
    (m) Combined Certification
    The HUD Office will notify you in writing if your application is 
missing any of the exhibits listed above and you will be given 14 days 
from the date of receipt of the HUD notification to submit the 
information required to cure the noted deficiencies. The exhibits 
listed in items 1(a)+(b), above, must be dated on or before the 
application deadline date. If not so dated the application will be 
rejected.
    After the completeness review, HUD Field Office staff will review 
your application to determine whether the application meets the Field 
Office threshold requirements listed below. Only if your application 
meets all the threshold requirements is it eligible to be rated and 
ranked.

(B) Field Office Threshold Review

    In order to pass threshold, you must:
    (1) Be in compliance with all fair housing and civil rights laws, 
statutes, regulations, and executive orders as enumerated in 24 CFR 
5.105(a), and as

[[Page 14699]]

noted earlier in this NOFA under Sections III(B)(2) and IV(E).
    (2) Additionally, HUD will also reject your application if the SSP 
and/or commitment and support letter(s) from the appropriate funding 
organizations and the appropriate licensing agency(ies): (i) are not 
submitted with your application; (ii) indicate that the ALF units, 
facilities, meals and supportive services to be provided are not 
designed to meet the special needs of the residents who will reside in 
the ALF as defined in this NOFA, (iii) do not show commitment for 
funding the meals and supportive services proposed; or (iv) indicate 
that the project as proposed will not meet the licensing requirements 
of the appropriate State/local agency(ies).

(C) Rating Panels

    The Office of Housing's Multifamily Hubs will establish review 
panels to rate all eligible applications that have passed threshold, 
using Rating Factors 1-5. The panels may include knowledgeable persons 
not currently employed by HUD.

(D) Rating of Applications

    HUD staff teams will review and rate ALCP applications in 
accordance with the Ranking and Selection procedures (see Section V(E) 
of this NOFA below). All applications will be either rated or 
technically rejected at the end of technical review. If your 
application meets all program eligibility requirements after completion 
of technical review, it will be rated according to the rating selection 
factors in Section V(F) of this NOFA. HUD reserves the right to reduce 
the cost of the application if any proposed components are ineligible 
or if the cost of items is not deemed reasonable.
    HUD will NOT reject an ALCP application based on technical review 
without notifying you of that rejection with all the reasons for the 
rejection, and providing you an opportunity to appeal. As discussed 
above, you will have 14 calendar days from the date of HUD's written 
notice to appeal a technical rejection to the Multifamily Hub where the 
applications were sent originally. HUD staff make a determination on an 
appeal before finalizing selection recommendations.

(E) Ranking and Selection Procedures

    Applications submitted in response to this NOFA that are eligible, 
pass threshold and have a total score of 60 points (or more) are 
eligible for ranking and selection.
    (1) Hub staff teams will be established for ALCP review in each 
geographic area to do the application ratings (see Section V(D) above). 
See list of lead Hubs in Section II of this NOFA.
    After the team's application ratings are finalized, the teams will 
place all rated applications from within that geographic area in rank 
order.
    (2) From within this rank order, Hub staff teams in each of the 
four geographic areas will select the highest ranking applications from 
within that geographic area in order, without regard to which Hub the 
application was submitted (see Section II of this NOFA) that can be 
funded from within the dollars available.
    (3) After making the initial selections, however, HUD may use any 
residual funds in each geographic area to select the next rank-ordered 
application by reducing the dollars requested by no more than 10 
percent (10%) and reducing the number of units proposed, but in no case 
reducing the number of units below the financial threshold feasibility 
of five ALF units.
    (4) Funds remaining after these processes are completed will be 
returned to HUD Headquarters. HUD will use these funds to restore units 
to any project reduced as a result of using the residual grant funds in 
a geographic area. Secondly, HUD will use these funds for selecting one 
or more additional applications based on field office rating and 
rankings, beginning with the highest rated application nationwide. Only 
one application will be selected per geographic area from the national 
residual amount. If there are no approvable applications in other 
geographic areas, the process will begin again with the selection of 
the next highest rated application nationwide. This process will 
continue until all approvable applications are selected using the 
available remaining funds. If there is a tie score between two or more 
applications, and there are insufficient residual funds to cover all 
tied applications, HUD Headquarters staff will choose the winning 
application(s) by lottery and/or reduction of grant requests consistent 
with Section VI(E) (3) or (4) of this NOFA, above.

(F) Factors For Award Used To Evaluate and Rate Applications

    HUD will rate ALCP applications that successfully complete 
technical processing using the Rating Factors set forth below and in 
accordance with the application submission requirements identified in 
Section VI(B) of this NOFA, below. The maximum number of points an 
application may receive under this program is 100.
Rating Factor 1: Capacity of the Applicant and Relevant Organizational 
Staff (15 Points)
    This factor addresses your capacity to carry out the conversion in 
a timely, cost-conscious and effective manner. It also reviews your 
experience with the supportive services which the ALF intends to 
provide to elderly residents, especially in such areas as meals, 24-
hour staffing and on-site health care. Submit information responding to 
this factor in accordance with Application Submission Requirements in 
Section VI(B)(4)(c), (5)(a), (8)(i), and (2)(d) of this NOFA.
    In rating this factor, HUD will consider the extent to which your 
application demonstrates your ability to carry out a successful 
conversion of the project and to implement the plan to deliver the 
supportive services on a long term basis, considering the following:
    (1) (7 points)  The practicality of your plan and timetable to 
carry out the physical conversion of the development to the ALF.
    (2) (8 points)  Your past experience in providing or arranging for 
supportive services either on or off site for those who are frail. 
Examples are: Meals delivered to apartment of resident or in a 
congregate setting (1 point), arranging for or providing personal care 
(2 points), providing 24-hour staffing (1 point), providing or making 
available on-site preventive health care (2 points) and other support 
services (1 point).
Rating Factor 2: Need/Extent of the Problem (25 Points)
    This factor addresses the extent to which the conversion is needed 
by the categories of elderly persons and persons with disabilities that 
the ALF is intended to serve (very low income elderly persons and 
people with disabilities who have limitations in three or more 
activities of daily living). The application must provide evidence of 
current needs among project residents and needs of potential residents 
in the housing market area for such persons including economic and 
demographic information on very-low income frail elderly and people 
with disabilities and information on current assisted living resources 
in the market area.
    The factor also addresses your inability to fund the repairs or 
conversion activities from existing financial resources. In making this 
determination, HUD will consider project financial information. The 
Department will also review more favorably those applications which 
establish a connection between the proposed ALF and the community's

[[Page 14700]]

Analysis of Impediments to Fair Housing Choice (AI) or other planning 
document that analyzes fair housing issues and is prepared by a local 
planning or similar organization. Submit information responding to this 
factor in accordance with Application Submission Requirements in 
Section VI(B)(1)(a) through (b), (2)(a) and (9)(a) through (c) of the 
NOFA. In evaluating this factor, HUD will consider:
    (1) (10 points)  The need for assisted living among the elderly and 
disabled residents of the project taking into consideration those 
currently in need and the depth of future needs given aging in place.
    (2) (5 points)  The need for assisted living among very-low income 
elderly persons and people with disabilities in the housing market 
area.
    (3) (10 points)  Insufficient funding for any needed conversion 
work, as evidenced by the project's financial statements and 
specifically the lack of excess reserve for replacement dollars (R4R) 
and residual receipts. If the available R4R and residual receipts are 
less than 10% of the total funds needed--10 points; if the available 
R4R and residual receipts are 10-50% of need = 5 points; and, if the 
available R4R and residual receipts are 51% or more of the total funds 
of needed = 0 points).
Rating Factor 3: Soundness of Approach (25 Points). This factor is 
rated by HUD Headquarters
    This factor addresses the quality and effectiveness of your 
proposal in addressing the proposed conversion, effectiveness of 
service coordination and management planning and the meals and 
supportive services which the ALF intends to provide. There must be a 
relationship between the proposed activities, the project's and the 
community's needs and purposes of the program funding for your 
application to receive points for this factor. Submit information 
responding to this factor in accordance with Application Submission 
Requirements in Section VI(B)(5)(b) and (c), and (7) and (B)(8))(a) 
through (e) and (g) and (h) of this NOFA.
    In evaluating this factor, HUD will consider the following:
    (1) (7 points)  The extent to which the proposed ALF design will 
meet the special physical needs of frail elderly or disabled persons 
expected to be served at reasonable cost (consider that ALF design = 
meets needs = 7 points; ALF design partially meets needs = 3 points; 
and ALF design does not meet needs = 0 points).
    (2) (7 points)  The extent to which the ALF's proposed management 
and operational plan ensures that the provision of both meals and 
supportive services planned will be accomplished over time. (Consider 
ALF design/management plan = meets needs of management operations, for 
7 points; ALF design/management plan partially meets needs of 
management operations, for 3 points; and ALF design/management plan 
does not meet needs of management operations, for 0 points.)
    (3) (5 points)  The extent to which the proposed supportive 
services meet the identified needs of the anticipated frail elderly and 
disabled residents (consider Yes = 5 points; partially meets needs = 3 
points; and, does not meet needs = 0 points); and
    (4) (5 points)  The extent to which the service coordination 
function is addressed and explained as onsite and sufficient, onsite 
and augmented or new, and addresses the ongoing procurement of needed 
services for the residents of the ALF (does meet = 5 points, partially 
meets = 3 points, does not meet = 0 points).
    (5) (1 point)  The extent to which there is an operating philosophy 
which promotes the autonomy and independence of the frail elderly 
persons it is intended to serve (is fully addressed = 1 point, no or 
not addressed = 0 points).
Rating Factor 4: Leveraging Resources (30 Points).
    This factor addresses your ability to secure other community 
resources which can be combined with HUD's grant funds to achieve 
program purposes. For the ALCP to succeed, you MUST generate local 
funding for the necessary supportive services to operate the ALF. HUD 
also encourages local funding for some of necessary conversion work, or 
other work needed in the project (e.g., general modernization) which is 
NOT specifically linked to the ALF).
    Submit information responding to this factor in accordance with 
Application Submission Requirements in Section VI(B)(5)(g), (B)(6) and 
(B)(8)(f) of this NOFA.
    (1) (25 points)  The extent to which there are commitments for the 
funding needed for the meals and the supportive services planned for 
the ALF and that the total cost of the estimated budget of the ALF is 
covered. Consider 90% or more commitment for the total budget with no 
more than 10% general support = 25 points; 80-89.9% or more commitment 
for the total budget with no more than 20% general support = 17 points; 
65-79.9% firm commitment with no more than 35% general support = 12 
points; 40-64.9% firm commitment for the total budget with no more than 
60% general commitment = 7 points; less than 40% firm commitment for 
the total budget with no more than 60% general support = 0 points.
    (2) (3 points)  The extent of local organizations' support which is 
firmly committed to providing at least 50 percent of the total cost of 
ALF conversion (consider 50% or more = 3 points, 20-49.9% = 2 points, 
and under 20% = 0 points).
    (3) (2 points)  The extent of local organizational support which is 
firmly committed to providing funds for additional repair or retrofit 
necessary for the project NOT specifically directed to activities 
eligible under this NOFA (consider yes = 1 point, no = 0 points).
Rating Factor 5: Comprehensiveness and Coordination (5 Points).
    This factor addresses the extent to which you have evidenced 
general support for conversion by participating in your community's 
Consolidated Planning Process, involving the residents in the planning 
and are working toward addressing the need in a holistic and 
comprehensive manner through linkages with other activities in the 
community. Submit information responding to this factor in accordance 
with Application Submission Requirements in Section VI(B)(2)(b) through 
(d) of this NOFA.
    (1) (3 points)  The involvement of project residents or their 
representatives, in the development of the ALCP application, and your 
intent to involve residents, in the development and operation of the 
project and in relocation planning (Minus one (-1) point if not 
addressed);
    (2) (1 point)  The extent to which you demonstrated that you have 
been actively involved (or if not currently active, the steps you will 
take to become actively involved) in your community's Consolidated 
Planning/AI processes to identify and address a need/problem that is 
related in whole or part, directly or indirectly to the proposed 
project;
    (3) (1 point)  The extent to which you developed linkages with 
other activities, programs or projects related to the proposed project 
to coordinate your activities so solutions are holistic and 
comprehensive.

VI. Application Submission Requirements

(A) Application--General

    Your application must include all of the information, materials, 
forms, and exhibits listed in Section VI(B). In cases

[[Page 14701]]

where your (i) articles of incorporation and (ii) by-laws have NOT 
changed since the project was originally approved by HUD, self-
certification to that effect--that the documents on file with HUD are 
current--is sufficient. Items in Section VI(B) for which self-
certification of currency is possible are denoted by a ``**''.
    In addition to this relief of paperwork burden in preparing 
applications, you will not have to submit certain new/recent 
information and exhibits you have previously prepared. See individual 
item descriptions, below to identify such items. An example of such an 
item may be the FY 1999 Annual Financial Statement.

(B) General Application Requirements

    (1) Evidence that you are a private nonprofit organization or 
nonprofit consumer cooperative and have the legal ability to operate an 
AFL program, per the following:
    (a) Articles of Incorporation, constitution, or other 
organizational documents, or self-certification of these documents, if 
there has been no change in the Articles since they were originally 
filed by HUD;**
    (b) By-laws, or self-certification of by-laws, if there has been no 
change in the by-laws since they were originally filed with HUD;**
    (2) A description of your community ties and established linkages.
    (a) A description of your links to the community at large and to 
the minority and elderly communities in particular; and
    (b) A description of your efforts to involve elderly persons, 
including minority elderly persons and persons with disabilities in:
    (i) The development of the application,
    (ii) The development of the ALF operating philosophy,
    (iii) Review of the application; and
    (iv) Your intent to involve elderly persons in the operation of the 
project or not.
    Also, demonstrate that you made the application available to the 
residents of the project (in their language(s)) AND requested and 
considered comments from them (in their language(s)).
    (c) A description of your involvement in your community's 
Consolidated Planning and Analysis of Impediments to Fair Housing (AI) 
processes including:
    (i) An identification of the lead/facilitating agency(ies) that 
organizes/administers the processes;
    (ii) A listing of the Consolidated Plan/AI issue areas in which you 
participate;
    (iii) The level of your participation in the processes, including 
active involvement with any neighborhood-based organizations, 
associations, or any committees that support programs and activities 
that enhance projects or the lives of residents of the projects, such 
as the one proposed in your application.
    If you are not currently active, describe the specific steps you 
will take to become active in the Consolidated Planning and AI 
processes. (Consult the local HUD Office for the identification of the 
Consolidated Plan community process for the appropriate area.)
    (d) A description of the linkages that you have developed with 
other related activities, programs or projects in order that the 
development of the project provides a comprehensive and holistic 
solution to the needs of the target population.
    (3) Evidence of your project being in occupancy for at least five 
years as of the date of application to HUD. This evidence must be 
submitted by all applicants whose section 202 identifying number has an 
``EE'' as digits 4 & 5, i.e., xxx-EExxx, OR any ``EH'' project, i.e., 
xxx-EHxxx, that was converted to PRAC.
    (4) A market analysis of the need for the proposed ALF units, 
including information from both the project and the housing market, 
containing:
    (a) Evidence of need for the ALF by current project residents:
    (i) A description of the demographic characteristics of the elderly 
residents currently living in the project, including the current number 
of residents, distribution of residents by age and sex, an estimate of 
the number of residents with frailties/limitations in activities of 
daily living and an estimate of the number of residents in need of 
assisted living services.
    (ii) A description of the services which are currently available to 
the residents and/or provided on or off-site and what services are 
lacking;
    (b) Evidence of the need for ALF units by very low income elderly 
and disabled households in the market area; a description of the trend 
in elderly and disabled population and household change; data on the 
demographic characteristics of the very low income elderly in need of 
assisted living services (age, race, sex, household size and tenure) 
and extent of residents with frailty/limitations in existed federally-
assisted housing for the elderly (HUD and Rural Housing Service): And 
an estimate of the very low income elderly and disabled in need of 
assisted living taking into consideration any available state or local 
data.
    (c) A description of the extent, types and availability and cost of 
alternate care and services locally, such as: Home health care, adult 
day care, housekeeping services, meals programs, visiting nurses, on-
call transportation services, health care and providers of supportive 
services who address the needs of the local low income population.
    (d) A description of how information in the community's Analysis of 
Impediments to Fair Housing Choice was used in documenting the need for 
the ALF (covering items in Section VI(B)(4)(a) and (b) of this NOFA).
    (5) A description of the physical ALF conversion, including the 
following:
    (a) How you propose to carry out the physical conversion (including 
a timetable and relocation planning).
    (b) A short narrative stating the number of units, special design 
features, community and office space/storage, dining and kitchen 
facility and staff space and the physical relationship to the rest of 
the 202 project. Also, you must describe how this design will 
facilitate the delivery of services in an economical fashion and 
accommodate the changing needs of the residents over at least the next 
10 years.
    (c) A copy of the original plans for all units and other areas of 
the development which will be included in the conversion.
    (d) A description of the conversion must clearly address the 
following accessibility issues: All door openings must have a minimum 
clear opening of 32''; and, All bathrooms and kitchens must be 
accessible to and functional for persons in wheelchairs, according to 
the ``Uniform Federal Accessibility Standards.''.
    (e) Architectural sketches of the conversion to a scale of \\1/4\ 
inch to one foot that indicate the following:
    (i) All doors being widened;
    (ii) Typical kitchen and bathroom reconfiguration: show all 
wheelchair clearances, wall reinforcing, grab bars and elevations of 
counters and work surfaces;
    (iii) Bedroom/living/dining area modification, if needed;
    (iv) Any reconfigured common space;
    (v) Added/reconfigured office and storage space;
    (vi) Monitoring stations, and
    (vii) The kitchen and dining facility.
    All architectural modifications must meet section 504 and ADA 
requirements as appropriate.
    (f) A budget showing at least estimated costs for materials, 
supplies, fixtures and labor for each of the items listed in Section 
VI(B)(5)(e), items i through vii, above.
    (g) Include firm commitment letters with specific dollar amounts 
from appropriate organization(s) for

[[Page 14702]]

conversion needs (within the scope of the ALF conversion NOFA) which 
will be supported by non-HUD funding.
    (h) A description of any relocation of current tenants including a 
statement that:
    (i) Indicates the estimated cost of temporary relocation payments 
and other related services.
    (ii) Identifies the staff organization that will carry out the 
relocation activities; and
    (iii) Identifies all tenants that will have to be temporarily moved 
to another unit within the development OR from the development during 
the period that the physical conversion of the project is under way.

    Note: If any of the relocation costs will be funded from sources 
other than the ALCP grant, you must provide evidence of a firm 
commitment of these funds. When evaluating applications, HUD will 
consider the total cost of proposals (i.e., cost of conversion, 
temporary relocation, service coordinator and other project costs).

    (6) A description of any retrofit or renovation which will be done 
at the project (with third party funds) that is separate and distinct 
from the ALF conversion. With such description, attach firm commitment 
letters from third party organizations in specific dollar amounts which 
will cover the cost of any work outside the scope of this NOFA.
    (7) Evidence of permissive zoning, showing that the modifications 
to include the ALF into the project as proposed are permissible under 
applicable zoning ordinances or regulations, or a statement of the 
proposed action required to make the proposed project permissible and 
the basis for your belief that the proposed action will be completed 
successfully within six months of the date of grant award by HUD. e.g., 
a summary of the results of any requests for rezoning and/or the 
procedures for obtaining special or conditional use permits on land in 
similar zoning classifications and the time required for such rezoning, 
or preliminary indications of acceptability from zoning bodies, etc.);
    (8) A supportive services plan (SSP), a copy of which must be 
submitted to the appropriate state and/or local agency as instructed in 
Section IV(C) of this NOFA. For those applicants needing to contact 
state Medicaid offices, a list of them may be accessed on the Internet 
at ``www.hcfa.gov/medicaid/scon1.htm''. The fifth character from the 
end is the numeral ``1'', not the letter ``l'' that includes:
    (a) A description of the supportive services needed for the frail 
elderly the ALF is expected to serve. This must include at least (i) 
meals and such other supportive services required locally or by the 
State, and (ii) such optional services or care to be offered on an ``as 
needed'' basis.
    Examples of both mandatory and optional services (which will vary 
from state to state) are: two meals and two snacks or three mails 
daily; 24-hour protective oversight; personal care; housekeeping 
services; personal counseling and transportation.
    (b) A description of how you will provide the supportive services 
to those who are frail and have disabilities (i.e., on or off-site or 
combination of on or off-site), including an explanation of how the 
service coordination role will facilitate the adequate provision of 
such services to ALF residents, and how the services will meet the 
identified needs of the residents.
    (c) A description of how the operation of your ALF will work. 
Address (i) general operating procedures, (ii) ALF philosophy and how 
it will promote the autonomy and independence of the frail elderly and 
persons with disabilities, (iii) what will the service coordination 
function will do and the extent to which it is existing, augmented or 
new, (iv) ALF staff training plans, and (v) the degree to which and how 
the ALF will relate to the day-to-day operations of the rest of the 
Section 202 project.
    (d) The monthly individual rate for board and supportive services 
for the ALF listing the total fee and components of the total fee for 
the items required by State or local licensing AND list the appropriate 
rate for any optional services the you plan to offer to the ALF 
residents. Provide an estimate of the total annual costs of the 
required board and supportive services you expect to provide and an 
estimate of the amount of optional services you expect to provide.
    (e) List who will pay for the board and supportive services, e.g., 
$__ for meals by sponsor, $__ for housekeeping services by city 
government; $__ for personal care by State Department of Health; $__ 
for __ by state __ program; $__ in fees by tenants; and, $__ by __.
    The amounts and commitments from both tenants and/or providers must 
equal the estimated amounts necessary to cover the monthly rates for 
the number of people expected to be served. If you include tenant fees 
in the proposal, list and show any proposed scaling mechanism. All 
amounts committed/collected must equal the annualized cost of the 
monthly rates calculated by the expected percentage of units filled.
    (f) A support/commitment letter from EACH listed proposed funding 
source per paragraph (e), above, for the planned meals and supportive 
services listed in the application. The letter must cover the total 
planned annual commitment (and multiyear amount total, if different), 
length of time for the commitment, and the amounts payable for each 
service covered by the provider/paying organization. There must be a 
letter from EACH participating organization listed in Section 
VI(B)(8)(e) of this NOFA, above.
    (g) A support letter from EACH governmental agency(ies) which 
provides licensing for ALFs in that jurisdiction.
    (h) A description of your relevant experience in arranging for and/
or delivering supportive services to frail residents. The description 
should include any supportive services facilities owned/operated; your 
past or current involvement in any project-based programs that 
demonstrates your management capabilities. The description should 
include data on the facilities and specific meals and/or supportive 
services provided on a regular basis, the racial/ethnic composition of 
the populations served, if available, and information and testimonials 
from residents or community leaders on the quality of the services.

    Note: If a funds request for service coordination for the ALF 
and/or the whole project is included as part of this application, 
the Form HUD-424M, indicating the dollars requested must be attached 
as Exhibit 10(c). Do NOT attach the whole service coordinator 
application.

    (9) A description of your project's resources:
    (a) A copy of the most recent project Repair and Replacement (R4R) 
account statement, and an R4R analysis showing plans for its use over 
the next five years, and any approvals received from the HUD field 
office to date.
    (b) A copy of the most recent Residual Receipts Account statement. 
Indicate any approvals for the use of such receipts from the field 
office for over $500/unit.
    (c) Annual Financial Statement (AFS). If your FY 2000 AFS was due 
to REAC more than 120 days BEFORE the due date for this application, in 
the interest of reducing work burden, only include the date that it was 
sent to REAC. If the AFS was due to REAC 120 days or less from the due 
date of this application, you MUST include a paper copy.
    (10) Forms, Certifications and Resolutions. The following exhibits, 
forms, certifications and assurances are required:
    (a) Standard Form 424, Application for Federal Assistance and 
indication of

[[Page 14703]]

whether you are delinquent on any federal debt.
    (b) Standard Form 424D, Assurances, Construction Programs
    (c) Form HUD 424M, Federal Assistance Funding Matrix.
    (d) Form HUD-50070, Drug-free Workplace. Certification to provide a 
drug-free workplace.
    (e) Form HUD-50071, Payments to Influence Federal Transactions and 
Standard Form-LLL, Disclosure of Lobbying Activities. Certification of 
whether any of the funds received will be used to influence any federal 
transactions and disclosure of these activities, if applicable.
    (f) Form-HUD 2880, Applicant/Recipient Disclosure/Update Report, 
including Social Security and Employment Identification numbers. A 
disclosure of assistance from other government sources received in 
connection with the project.
    (g) Certification Regarding Debarment and Suspension (HUD-2992) (24 
CFR 24.510).
    (h) Form HUD-2991, Certification of Consistency with the 
Consolidated Plan (Plan), for the jurisdiction in which the proposed 
ALF will be located. The certification must be made by the unit of 
general local government if it is required to have, or has, a complete 
Plan. Otherwise, the certification may be made by the State, or by the 
unit of general local government if the project will be located within 
the jurisdiction of the unit of general local government authorized top 
use an abbreviated strategy, and if it is willing to prepare such a 
Plan.
    All certifications must be made by the public official responsible 
for submitting the plan to HUD. The certifications must be submitted as 
part of the application by the application submission deadline date set 
forth herein.
    The Plan regulations are published in 24 CFR part 91.
    (i) Executive Order 12372 Certification. A certification that you 
have submitted a copy of your application, if required, to the State 
agency (single point of contact) for State review in accordance with 
Executive order 12372.
    (j) Certification of Residual Receipts Account. If you do not have 
an existing residual receipts account you must agree to set up one as 
soon as there is surplus cash available, as a condition of getting this 
grant award.
    (k) A certified Board Resolution that no officer or director of the 
Owner/borrower or Sponsor has or will have any financial interest in 
any contract with the Owner or in any firm or corporation that has or 
will have a contract with the Owner, including a current listing of all 
duly qualified and sitting officers and directors by title, and the 
beginning and ending dates of each person's term.
    (l) Certification for ALF. Certification that you agree to apply 
for an ALF license with due diligence and in a timely fashion (and that 
the conversion will NOT be a nursing home or an Intermediate Care 
facility).
    (m) Owner/borrower's Combined Certifications.
    (i) A certification of compliance with the requirements of the Fair 
Housing Act, Title VI of the Civil Rights Act, the Age Discrimination 
Act of 1975, Section 3 of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701u) and the implementing regulations at 24 CFR part 135, 
the affirmative fair housing marketing requirements of 24 CFR part 200, 
subpart M and the implementing regulations at 24 CFR part 108, and 
other applicable Federal, State and local laws prohibiting 
discrimination and promoting equal opportunity including affirmatively 
furthering fair housing, and other certifications listed in the 
application.
    (ii) Certification of Compliance with section 232 of the National 
Housing Act, as applicable, the Uniform Federal Accessibility Standards 
(24 CFR 40.7), section 504 of the Rehabilitation Act of 1973 and HUD's 
implementing regulations at 24 CFR part 8, and the design and 
construction requirements of the Fair Housing Act and HUD's 
implementing regulations at 24 CFR part 100, and the Americans with 
Disabilities Act of 1990 for all portions of the development physically 
affected by this proposal;
    (iii) Davis-Bacon. Certification of compliance with the Davis-Bacon 
requirements and the Contract Work Hours and Safety Standards Act as 
applied to this program. While it has been determined that Davis-Bacon 
does not apply statutorily to the ALCP, the Department has 
administratively determined that Davis-Bacon standards and overtime 
rates in accordance with the Contract-Work Hours and Safety Standards 
Act will be adhered to in any ALCP conversion grant in which the total 
cost of the physical conversion to an ALF (and including any additional 
renovation work undertaken at the same time) is $500,000 or more (this 
includes ALCP grant funds, owner funds, or any third party funds loaned 
or granted in support of the conversion or other renovation for the 
project associated with this grant), AND in which the ALF portion of 
the project is 12 units or more.

VII. Environmental Requirements

    Your ALCP application is subject to the National Environmental 
Policy Act of 1969 and applicable related Federal environmental 
authorities. (See 24 CFR part 50, as applicable.) An environmental 
review will be completed before the award of any grant under this 
program. Pursuant to 24 CFR Part 55, ALCP projects are critical actions 
for purposes of floodplain management review.

VIII. Findings and Certifications

(A) Paperwork Reduction Act

    The information collection requirements contained in this notice 
have been submitted to the Office of Management and Budget (OMB) for 
approval in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501-3520). The OMB approval number, once approved, will be 
published in the Federal Register. An agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a valid control number.

(B) Catalog of Federal Domestic Assistance Numbers

    The Catalog of Federal Domestic Assistance number for this program 
is 14.157.

(C) Executive Order 13132, Federalism

    This notice does not have federalism implications and does not 
impose substantial direct compliance costs on State and local 
governments or preempt State law within the meaning of Executive Order 
13132 (entitled ``Federalism''). This notice invites only applications 
from 202 developments for assisted living conversion grants.

(D) Prohibition Against Lobbying Activities

    You, the applicant, are subject to the provisions of section 319 of 
the Department of Interior and Related Agencies Appropriation Act for 
Fiscal Year 1991, 31 U.S.C. 1352 (the Byrd Amendment), 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. You are required to certify, using the certification 
found at Appendix A to 24 CFR part 87, that you will not, and have not, 
used appropriated funds for any prohibited lobbying activities.

[[Page 14704]]

    In addition, you must disclose, using Standard Form 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, and congressional staff regarding 
specific grants or contracts. Tribes and tribally designated housing 
entities (TDHEs) established by an Indian tribe as a result of the 
exercise of the tribe's sovereign power are excluded from coverage of 
the Byrd Amendment, but tribes and TDHEs established under State law 
are not excluded from the statute's coverage.

(E) Section 102 of the HUD Reform Act; Documentation and Public Access 
Requirements

    Section 102 of the Department of Housing and Urban Development 
Reform Act of 1989 (42 U.S.C. 3545) (HUD Reform Act) and the 
regulations codified in 24 CFR part 4, subpart A, contain a number of 
provisions that are designed to ensure greater accountability and 
integrity in the provision of certain types of assistance administered 
by HUD. On January 14, 1992 (57 FR 1942), HUD published a notice that 
also provides information on the implementation of section 102. The 
documentation, public access, and disclosure requirements of section 
102 apply to assistance awarded under this NOFA as follows:
    (1) Documentation and public access requirements. HUD will ensure 
that documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, including 
any letters of support, will be made available for public inspection 
for a 5-year period beginning not less than 30 days after the award of 
the assistance. Material will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations in 24 CFR part 15.
    (2) Disclosures. HUD will make available to the public for 5 years 
all applicant disclosure reports (HUD Form 2880) submitted in 
connection with this NOFA. Update reports (also Form 2880) will be made 
available along with the applicant disclosure reports, but in no case 
for a period less than 3 years. All reports--both applicant disclosures 
and updates--will be made available in accordance with the Freedom of 
Information Act (5 U.S.C. 552) and HUD's implementing regulations at 24 
CFR part 5.
    (3) Publication of Recipients of HUD Funding. HUD's regulations at 
24 CFR 4.7 provide that HUD will publish a notice in the Federal 
Register on at least a quarterly basis to notify the public of all 
decisions made by the Department to provide:
    (i) Assistance subject to section 102(a) of the HUD Reform Act; or
    (ii) Assistance that is provided through grants or cooperative 
agreements on a discretionary (non-formula, non-demand) basis, but that 
is not provided on the basis of a competition.

(F) Section 103 of the HUD Reform Act

    HUD's regulations implementing section 103 of the Department of 
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3537a), 
codified in 24 CFR part 4, apply to this funding competition. The 
regulations continue to apply until the announcement of the selection 
of successful applicants. HUD employees involved in the review of 
applications and in the making of funding decisions are limited by the 
regulations from providing advance information to any person (other 
than an authorized employee of HUD) concerning funding decisions, or 
from otherwise giving any applicant an unfair competitive advantage. 
Persons who apply for assistance in this competition must confine their 
inquiries to the subject areas permitted under 24 CFR part 4.
    Applicants or employees who have ethics related questions should 
contact the HUD Ethics Law Division at (202) 708-3815. (This is not a 
toll-free number.) For HUD employees who have specific program 
questions, the employee should contact the appropriate field office 
counsel, or Headquarters counsel for the program to which the question 
pertains.

(G) Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50, 
implementing section 102(2)(C) of the national Environmental Policy Act 
of 1969 (42 U.S.C. 4332). The Finding of No Significant Impact is 
available for public inspection during business hours in the Office of 
the Rules Docket Clerk, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410.

IX. Authority

    The Section 202 Supportive Housing for the Elderly Program is 
authorized by section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), 
as amended. The Assisted Living Conversion Program is authorized by 
Title V, section 522 of the FY 2000 Departments of Veteran's Affairs, 
HUD and Independent Agencies Appropriations Act, 2000 (12 U.S.C. 1701q-
2).

    Dated: March 13, 2000.
William C. Apgar,
Assistant Secretary for Housing--Federal Housing Commission.

Appendix A--Instructions for Application Submission to the Proper Hub

    (a) Applicants required to submit applications to the Buffalo 
Hub are normally serviced by the Boston, Hartford, Manchester, 
Providence, New York, Buffalo, Philadelphia, Charleston, Newark, 
Philadelphia, Pittsburgh, Baltimore, Washington, DC, and Richmond 
Field Offices.
    (b) Applicants required to submit applications to the Greensboro 
Hub are normally serviced by the Greensboro, Columbia, Atlanta, 
Caribbean, Knoxville, Louisville, Nashville, Jacksonville, Miami, 
Jackson, Ft. Worth, Albuquerque, Dallas, Houston, Little Rock, New 
Orleans, San Antonio, and Shreveport Field Offices.
    (c) Applicants required to submit applications to the Kansas 
City Hub are normally serviced by the Cincinnati, Cleveland, 
Columbus, Chicago, Indianapolis, Detroit, Grand Rapids, Des Moines, 
Kansas City, Oklahoma City, Omaha, St. Louis, Tulsa, Milwaukee and 
Minneapolis Field Offices.
    (d) Applicants required to submit applications to the San 
Francisco Hub are normally serviced by Denver, Los Angeles, San 
Diego, San Francisco, Honolulu, Las Vegas, Phoenix, Sacramento, 
Anchorage, Portland, Seattle and Spokane Field Offices.

[[Page 14705]]

Appendix B--HUD Field Office List for Mailing ALCP Applications

    Note: The first line of the mailing address for all offices is 
Department of Housing and Urban Development. Telephone numbers 
listed are not toll-free.

HUD--Buffalo Hub

Buffalo Office,

Fifth Floor, Lafayette Court, 465 Main Street, Buffalo, NY 14203-
1780, (716) 551-5755, TTY Number: (716) 551-5787.

HUD--Greensboro Hub

Greensboro Office

Koger Building, 2306 West Meadowview Road, Greensboro, NC 27407-
3707, (336) 547-4000, TTY Number: (336) 547-4055.

HUD--Great Plains

Kansas City Office

Room 200, Gateway Tower II, 400 State Avenue, Kansas City, KS 66101-
2406, OFC Phone: (913) 551-5462, FAX: (913) 551-6972.

HUD--San Francisco Hub

San Francisco Office

Phillip Burton Federal Building and U.S. Courthouse, 450 Golden Gate 
Avenue, P.O. Box 36003, San Francisco, CA 94102-3448, (415) 436-
6550, TTY Number: (415) 436-6594.

[FR Doc. 00-6572 Filed 3-14-00; 8:45 am]
BILLING CODE 4210-27-P