profit sponsor as required under the section 202 Program.

B. Rating

Applications that fulfill each of the threshold requirements described above will be rated based on the selection criteria described in section XIII of these Guidelines, and placed in ranked order. Successful applicants will be expected to receive points in criteria A, B, and C.

In cases where the applicant requests assistance under more than one S+C component, the components will not be separately rated. Rather the application will be rated as a whole. However, in assigning points in such cases, HUD will consider the relative importance of each component (such as the number of persons to be served and the nature, extent, and location of the supportive services to be provided under each component) to the likely success of the overall program.

C. Final Selection

In the final stage of the selection process, the highest-rated applications will be considered for final selection in accordance with their ranked order, to the extent funds are available for the component or components requested. If funds are unavailable for one or more requested components, only those for which funds are available will be funded. Section 455(a)(2) of the McKinney Act, as amended by the NAHA, includes geographic diversity as one of the selection criteria. In order to achieve geographic diversity, HUD will determine, after applications are rated and ranked under the selection criteria, whether each of the four Census Regions contains at least one fundable application. If not, HUD will substitute the highest ranked applications in the necessary Census Region for applications at the bottom of the list of tentatively selected projects.

Before notifying an applicant of its selection for an award of assistance under the S+C/SRO component, HUD will certify that the amount of the grant being approved is not more than necessary to provide affordable housing, as required by section 102 of the HUD Reform Act and in accordance with 24 CFR part 12.

XIII. SELECTION CRITERIA

Applications remaining in competition after the initial threshold review will be rated and ranked under the following selection criteria:

A. Capability of Applicants

HUD will award up to 100 points based on the ability of the applicant, either directly

or through contractors, to develop and operate the proposed assisted housing and supportive services program. HUD will consider such factors as the quality of any ongoing programs of the applicant; the past experience of the applicant in programs serving the homeless, particularly the population to be served by the proposed program; the management and staffing plans of the applicant; and other factors relevant to the applicant's ability.

B. Need for the Program in the
Community

HUD will award up to 100 points based on a demonstration of the need for housing assistance and supportive services for eligible persons proposed to be served by the program in the community, particularly the hard-to-reach homeless. HUD will consider the extent to which the applicant demonstrates that an unmet need exists through data such as surveys of local homeless populations and other means of demonstrating the need for the program.

C. Appropriateness of Housing and Supportive Services

HUD will award up to 300 points based on the appropriateness of the proposed assisted housing and supportive services. HUD will consider the degree to which proposed housing and services are targeted to specific needs of the population to be served, the comprehensiveness of the plan in providing a continuum of housing and services to meet the changing needs of the target population, the qualifications of the service providers, and the appropriateness of any restrictions on where participants may live.

D. Assimilation of Participants Into Community

HUD will award up to 100 points based on the extent to which the program assimilates participants into the community. HUD will consider locations for housing and suportive services and any plans the applicant has for helping participants gain access to neighborhood activities, services, and institutions.

E. Service to Hard-to-Reach Homeless Persons

HUD will award up to 200 points based on the extent to which the program will serve both homeless persons who spend nights in public or private places not designed for, or ordinarily used as, regular sleeping accommodations for human beings (i.e., street persons) and those who reside in emergency shelters. HUD will consider the plans the applicant has for outreach to this popula

tion and for efforts to encourage them to remain in the housing. In awarding the maximum number of points under this criterion, HUD will give consideration to both the quality of the plan and the extent to which street persons will be served.

F. Service to Targeted Disabilities

HUD will award up to 200 points based on the extent to which the program will serve persons who are seriously mentally ill, or have chronic problems with alcohol, drugs, or both, or have AIDS and related diseases.

XIV. GRANT AGREEMENT

The grant agreement will be between HUD and the recipient. HUD will hold the recipient responsible for the overall administration of the S+C Program, including overseeing any contractors. The grant agreement will provide that the recipient agrees:

-To operate the program in accord

ance with the provisions of these Guidelines and applicable HUD regulations;

-To conduct an ongoing assessment

of the housing assistance and supportive services required by the participants in the program;

-To assure the adequate provision of supportive services to the participants in the program; and -To comply with such other terms and conditions, including recordkeeping and reports (which must include racial and ethnic data on participants), as the Secretary may establish for purposes of carrying out the program in an effective and efficient manner.

HUD will enforce the obligations in the grant agreement through such action as may be necessary, including recapturing assistance awarded under the program.

XV. OBLIGATION AND DEOBLIGATION OF FUNDS

Upon approval of an application for funding and notification to the applicant, HUD

will obligate funds to cover the amount of the approved assistance. After the initial obligation of funds for S+C/HRHA and S+C/ 202, HUD will not make any upward revisions to the amount obligated for any approved assistance.

HUD may deobligate all or a portion of the amounts approved for rental assistance if the proposed housing for which funding was approved or the supportive services proposed in the application are not provided in accordance with the approved application and the requirements of these Guidelines. The grant agreement may set forth other circumstances under which funds may be deobligated, and other sanctions may be imposed.

HUD may readvertise the availability of funds that have been deobligated in a notice of fund availability, or may reconsider applications that were submitted in response to the most recently published Notice of Funds Availability and select applications for funding with the deobligated funds. Such selections would be made in accordance with the selection process described in these Guidelines. Any selections made using deobligated funds will be subject to applicable appropriation act requirements governing the use of deobligated funding authority.

XVI. WAIVERS

The Secretary may waive any requirement in this Notice that is not required by law, whenever it is determined that undue hardship will result from applying the requirement, or where application of the requirement would adversely affect the purposes of the S+C Program. Each waiver will be in writing and will be supported by documentation of the pertinent facts and grounds. The Secretary periodically will publish notice of granted waivers in the FEDERAL REGISTER.

XVII. OTHER MATTERS

The collection of information requirements for this program were submitted to OMB for review under Section 3504(h) of the Paperwork Reduction Act of 1980. Information on these requirements is provided as follows:

These guidelines would not constitute a "major rule" as that term is defined in section 1(d) of the Executive Order on Federal Regulations issued by the President on February 17, 1981. An analysis of the guidelines indicates that it would not (1) have an annual effect on the economy of $100 million or more; (2) cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or (3) have a significant adverse effect on competition, employment, investment, productivity, innovation, or on the ability of United Statesbased enterprises to compete with foreignbased enterprises in domestic or export markets.

A Finding of No Significant Impact with respect to the environment has been made in accordance with HUD regulations at 24 CFR part 50, which implement section 102(2)(C) of the National Environmental Policy Act of 1969. The finding is available for public inspection between 7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket Clerk, Office of the General Counsel, Department of Housing and Urban Development, room 10276, 451 Seventh Street SW., Washington, DC 20410.

These guidelines were listed in the Department's Semiannual Agenda of Regulations published at 55 FR 44530 on October 29, 1990, under Executive Order 12291 and the Regulatory Flexibility Act.

The General Counsel, as the designated official under Executive Order 12606, The Family, has determined that some of the policies in these guidelines will have a potential significant impact on the formation, maintenance, and general well-being of the family. Participation of homeless families in the program can be expected to support family values, by helping families remain together; by enabling them to live in decent,

safe, and sanitary housing; and by offering the supportive services that are necessary to acquire the skills and means to live independently in mainstream American society. Since the impact on the family is considered to be a beneficial one, no further review is necessary.

The General Counsel has also determined, as the Designated Official for HUD under section 6(a) of Executive Order 12612, Federalism, that the provision in these guidelines requiring applicants to assume the responsibilities for environmental review, decisionmaking, and action under NEPA and other environmental authorities has Federalism implications. While the assignment of these responsibilities under section 104(g) of the Housing and Community Development Act of 1974 is discretionary with HUD, it is authorized by and clearly the intent of section 443 of the McKinney Act. Therefore, the policy is not subject to review under Executive Order 12612.

In accordance with 5 U.S.C. 605(b) (the Regulatory Flexibility Act), the undersigned hereby certifies that these guidelines would not have a significant economic impact on a substantial number of small entities. They would govern the procedures under which HUD would make rental assistance available to applicants under a program designed to house and provide supportive services to homeless persons with disabilities.

[56 FR 4494, Feb. 4, 1991]

EFFECTIVE DATE NOTE: At 56 FR 4494, Feb. 4, 1991, Appendix D was added. Several sections of this appendix contain information collection requirements that will become effective upon approval by the Office of Management and Budget. A notice announcing the effective date will be published in the FEDERAL REGISTER.