Fiscal Year 2000 Rural Housing Economic Development Program

BACKGROUND

This program provides flexible funding to rural areas to enhance their capacity to plan and carry out housing and economic development, to provide seed support and to carry out innovative programs in these areas. The program was first authorized in the FY 1999 Appropriations Act, and has been continued in the FY 2000 Appropriations. The Department of Housing and Urban Development (HUD) is responsible for the program and, in consultation with USDA, awards grants on a competitive basis. In FY 1999, 749 applications were received, and 91grants awarded for a total of $ 27 million.

THE FY 2000 RURAL HOUSING AND ECONOMIC DEVELOPMENT PROGRAM

A total of $ 24.75 million will be awarded, split as follows between the three categories: Capacity Building-$ 2.75 million, average award expected to be $ 150,000. Seed Support-$ 3 million, average award expected to be $ 200,000. Support for Innovative Activities-$ 19 million, average award expected to be $ 500,000

ELIGIBLE APPLICANTS

Local Rural non-profits, community development corporations and Indian Tribes can apply for all three categories of funding. State HFAs and state community/economic development agencies are eligible to apply only for grants for innovative activities.

ELIGIBLE RURAL AREAS

The area to be served must meet one of the following definitions:

1. A place having fewer than 2,500 inhabitants (within or outside of metropolitan areas).
2. A county with no urban population (i.e. city) of 20,000 inhabitants or more.
3. Territory, persons and housing units in the rural portions of "extended cities." The U.S. Census Bureau identifies the rural portions of extended cities in the U.S.
4. Open country which is not part of or associated with an urban area. The U.S. Department of Agriculture (USDA) determines what constitutes "open country".
5. Any place with a population not in excess of 20,000 and is not located in a Metropolitan Statistical Area.

RATING FACTORS

A total of 100 points is possible. Applications are rated only against applications in the same category. The Rating Factors are:
1. Capacity of the Applicant and Relevant Organizational Experience (up to 25 points).
2. Need and extent of the problem (Up to 25 points)
3. Soundness of Approach (Up to 30 points)
4. Leveraging Resources (Up to 10 points)
5. Comprehensiveness and Coordination (Up to 10 points)

Special Situations Relating to Rating Factors

Rating Factor 2-Need and extent of the problem includes a sub-category: Demographics of Economic Distress-Special Factors. In order to meet the needs of underserved areas, these five points will be awarded if the applicant is located in or proposes to serve one of the following special populations and will serve an eligible rural area:
1. Areas with very small populations in non-urban areas (2,500 population or less);
2. Migrant and seasonal farmworkers;
3. Indian tribes;
4. Colonias;
5. Appalachia's distressed counties; or
6. The lower Mississippi Delta Region.

Rating Factor 3-Soundness of Approach includes sub-category (h) which, for the Innovative Grant category only, provides for up to 5 points to those applicants that propose to structure and carry out diversified financial leveraging linkages that secure a pool of much larger funds from other funding sources, e.g., private institutions and foundations. The linkages should be designed to mitigate and reduce the risk to traditional lending institutions of lending in rural communities.

EZ/EC Bonus Points

In addition to the points awarded under the Rating Factors, HUD will award two (2) bonus points to applications which document that the proposed eligible activities/projects will be located in and serve Federally designated Rural Empowerment Zones or Enterprise Communities. These are listed at http://www.ezec.gov.

THE DEADLINE FOR APPLYING FOR THE RURAL HOUSING AND ECONOMIC DEVELOPMENT PROGRM IS MIDNIGHT, APRIL 7, 2000.

The information above has been excerpted from the Rural Housing and Economic Development NOFA, dated February 11, 2000. The NOFA includes complete details regarding eligible activities, application preparation and supplemental information required. The Rural Housing and Economic Development NOFA can be accessed through the HUD website at http://www.hud.gov