Affordable Housing Development In Main Street Rejuvenation Projects (14.878)
Program
14.878 Affordable Housing Development In Main Street Rejuvenation Projects
Federal Agency
Agency: Department of Housing and Urban Development
Office: Office Of Public And Indian Housing
Authorization
HOPE VI Program Reauthorization and Small Community Mainstreet Rejuvenation and Housing Act of 2003, Public Law 108-186.
Program Number
14.878
Last Known Status
Active
Objectives
To assist small communities with populations of 50,000 or less and 100 Public Housing units or less in the rejuvenation of historic or traditional central business districts or "Main Street Areas" by replacing unused commercial space in buildings with Affordable housing units. The objectives of the program are to: (1) Redevelop Main Street Areas; (2) Preserve historic or traditional architecture or design features in Main Street Areas; (3) Enhance economic development efforts in Main Street Areas; and (4) Provide affordable housing in Main Street Areas.
Types of Assistance
PROJECT GRANTS
Uses and Use Restrictions
Main Street grant funds may be used to rehabilitate or develop new affordable housing that is included in a Main Street rejuvenation effort. Main Street housing units must be maintained as affordable for the initial residents only. Each resident (or family) must have an adjusted income of 80 percent or less of the area median income. Allowable activities that may be funded by a Main Street grant include: development of new housing units; rehabilitation of non-habitable existing housing units; acquisition activities; homeownership activities; necessary management improvement costs; relocation costs for affected residents; and community and supportive services. Main Street grant funded activities are limited to: affordable housing development that is part of an existing Main Street rejuvenation effort; development cost up to a maximum of HUD's Total Development Cost for public housing units; maximum fees and soft costs listed in HUD's public housing Safe Harbor Cost Controls; and a maximum of 15 percent of the grant amount to support community and supportive services activities. Main Street grant funds must NOT be used to develop or replace public housing or to repair existing habitable housing.
Eligibility Requirements
Applicant Eligibility
Eligible applicants include, and are limited to, Units of Local Government ("Local Government") that are subdivisions of State governments, and other governments listed in Section 102 of the Housing and Community Development Act of 1974. The jurisdiction of the Local Government must contain a population of no more than 50,000. The Local Government must either have no Public Housing Agency (PHA) or a PHA that administers no more than 100 public housing units.
Beneficiary Eligibility
The beneficiaries are low-income families that occupy the newly developed affordable housing, and the local community that is benefiting from the Main Street rejuvenation project.
Credentials/Documentation
Eligibility requirements to apply for a Main Street grant are included in each year's Notice of Funding Availability (NOFA). OMB Circular No. A-87 applies to this program.
Application and Award Process
Preapplication Coordination
Preapplication coordination is required. An environmental impact statement is required for this program. An environmental impact assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Application Procedure
This program is excluded from coverage under OMB Circular No. A-102. OMB Circular No. A-110 applies to this program. A NOFA is published in the Federal Register announcing the availability of funds and referring applicants to application materials available from Grants.gov at http://www.grants.gov. Applications must be submitted electronically to Grants.gov. Further information on registration into Grants.gov can be obtained on HUD's grants website at http://www.hud.gov/grants.
Award Procedure
HUD Headquarters reviews each eligible application for threshold compliance, assigns rating points to applications that pass all thresholds, and the highest-rated applications are notified that they have been selected to receive a Main Street grant. Funds are obligated when HUD and the applicant execute a form HUD-1044, "Assistance Award/Amendment".
Deadlines
Contact the headquarters or regional office, as appropriate, for application deadlines.
Range of Approval/Disapproval Time
From 30 to 60 days.
Appeals
From 15 to 30 days. Applicants are notified by HUD if an application is not approved.
Renewals
Not Applicable.
Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
Matching Requirements: Percent: 5.%.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
Grants have a term of 30 months. The applicant must include its program schedule in the application. See the following for information on how assistance is awarded/released: After execution of the grant agreement, pre-development funds are made available. Upon HUD approval of the development proposal and the beginning of construction, the remainder of funds are released.
Post Assistance Requirements
Reports
No program reports are required. No cash reports are required. Quarterly reports on production and annual accomplishment reports are required. Program funds are tracked in HUD's financial system and leveraged funds are self reported by the grantees on a quarterly basis. The grant manager visits the sites after execution of the grant agreement and then annually.
Audits
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Main Street grants are audited with regular audits of the unit of local government and after grant close-out.
Records
Grantees should keep copies of budgets and accumulative cost records through the grant period, along with other records necessary to indicate compliance with the Grant Agreement.
Program Accomplishments
Fiscal Year 2008: Approximately half of the Main Street grants funded the development of housing units in small, single building projects. The other half of the grants added to the mixed-finance funding of larger developments of up to 75 units. Fiscal Year 2009: Based on the application history, approximately half of the Main Street grants will fund the development of housing units in small, single building projects. The other half of the grants will be added to the mixed-finance funding of larger developments of up to 75 units. Fiscal Year 2010: The program is not authorized at this time for FY 2010.
Financial Information
Account Identification
86-0218-0-1-604.
Obligations
(Project Grants) FY 08 $4,000,000; FY 09 est $4,000,000; FY 10 est $0
Range and Average of Financial Assistance
The statutory maximum of each grant is $1,000,000 and in recent years all grants have been for the maximum amount.
Regulations, Guidelines and Literature
Authorizing legislation in Section 24 of the 1937 Housing Act is extremely detailed. No regulations have been published. Main Street housing development is processed using HUD's Office of Public and Indian Housing Mixed-finance regulations detailed in 24 CFR 941.606, or HOPE VI homeownership regulations under Section 24 of the 1937 Act. Each grant is subject to the terms of its NOFA and Grant Agreement, which is the contract signed by the Grantee and HUD. HUD posts guidance on its Main Street website at http://www.hud.gov/offices/pih/programs/ph/hope6/grants/mainstreet/ with links to Main Street's most recent NOFA, program summaries, general guidance materials, mixed-finance guidance materials, and relevant statutes, regulations and notices. This web site provides Grantees with information on timelines, budgets, financial instructions, and other program guidance.
Related Programs
14.866 Demolition and Revitalization of Severely Distressed Public Housing; 14.872 Public Housing Capital Fund
Information Contacts
Regional or Local Office
None. All Main Street grants are administered at Headquarters by the Office of Public Housing Investments (OPHI). The level of field office involvement in the administration of Main Street grants is limited to issuance of the required environmental review (24 CFR Part 50), and construction inspections. Grantees should contact OPHI at (202) 401-8812, until a HUD Grant Manager is assigned. Grantees should also contact the HUD Field Office Public Housing Division that has jurisdiction for their area. Local Public Housing Divisions are listed on the internet at http://www.hud.gov/offices/pih/about/focontacts.cfm.
Headquarters Office
Lawrence Gnessin 451 7th Street, S.W., Room 4130, Washington, District of Columbia 20410 Email: Lawrence.gnessin@hud.gov Phone: 202.401.8812
Web Site Address
Examples of Funded Projects
Not Applicable.
Criteria for Selecting Proposals
As published in each NOFA.
