PRO Housing _Supporting Statement A final

Supporting Statement for Paperwork Reduction Act Submissions

PRO Housing Competition Application Collection

(OMB# 2506-new)

A. Justification

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statute and regulation mandating or authorizing the collection of information.

The Consolidated Appropriations Act, 2023 (PL 117-328) included funds for the identification and removal of barriers to affordable housing production and preservation. The law has made available $85 million for competitive grants. Pursuant to the requirements at 2 CFR 200.204, HUD is required to make these competitive funds available through the Notice of Funding Opportunity (NOFO) process. The competition will invite States, local governments, metropolitan planning organizations, and multijurisdictional entities to apply for funds for their eligible activities that develop, evaluate, and implement housing policy plans, improve housing strategies, and facilitate affordable housing production and preservation.

PL 117-328 language at Division L, Title II:

(2) $85,000,000 shall be available for the Secretary to award grants on a competitive basis to State and local governments, metropolitan planning organizations, and multijurisdictional entities for additional activities under title I of the [Housing and Community Development Act of 1974, as amended (42 U.S.C. 5301 et seq.)] for the identification and removal of barriers to affordable housing production and preservation: Provided, That eligible uses of such grants include activities to further develop, evaluate, and implement housing policy plans, improve housing strategies, and facilitate affordable housing production and preservation: Provided further, That the Secretary shall prioritize applicants that are able to (A) demonstrate progress and a commitment to overcoming local barriers to facilitate the increase in affordable housing production and preservation; and (B) demonstrate an acute demand for housing affordable to households with incomes below 100 percent of the area median income: Provided further, That funds allocated for such grants shall not adversely affect the amount of any formula assistance received by a jurisdiction under paragraph (1) of this heading: Provided further, That in administering such amounts the Secretary may waive or specify alternative requirements for any provision of such title I except for requirements related to fair housing, nondiscrimination, labor standards, the environment, and requirements that activities benefit persons of low- and moderate-income, upon a finding that any such waivers or alternative requirements are necessary to expedite or facilitate the use of such amounts;

2. Indicate how, by whom and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection.

New collection. Applications are electronically submitted through grants.gov. The information collected will be used by HUD’s Office of Community Planning and Development to assess applications against the competitive criteria and make funding awards to those applicants that meet all the requirements of the NOFO. HUD will conduct a threshold and quality control review using grant solutions. Applications that meet the threshold requirements will receive a panel review for assessment and scoring. Using the information obtained, HUD shall prioritize applicants during the scoring process that are able to (A) demonstrate progress and a commitment to overcoming local barriers to facilitate the increase in affordable housing production and preservation; and (B) demonstrate an acute demand for housing affordable to households with incomes below 100 percent of the area median income. The highest scored applicants will be selected for funding until all funds are awarded, or the obligation period has expired.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden.

The NOFO will be posted to Grants.gov and applications will be collected electronically. The basis for the decision is to provide an easily accessible avenue for application submission, assess the timeline of submission, and provide a way to ensure HUD receives all applications without delay.

Post award activity will utilize the Disaster Recovery Grant Reporting system. These activities have already been reviewed and approved by OMB and do not need any further review. For more information on Community Development Block Grant (CDBG) required post award activities see OMB Control #s 2506: 0077, 0085, 0117, and 0165.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Item 2 above.

This competition was authorized under the 2023 Consolidated Appropriations Act as a new initiative. This is a new collection of information for such initiative. As such, duplication is not an issue. The applications collected will be new applications for proposed projects from various entities across the nation.

5. If the collection of information impacts small businesses or other small entities describe any methods used to minimize burden.

Although the applicant pool is limited to States, local governments, metropolitan planning organizations, and multijurisdictional entities, this collection can impact small businesses or other small entities. To minimize burden to said entities, HUD recommends partnering with other entities. While it is not a requirement of the NOFO, small entities may partner with an eligible applicant to reduce any burden. Multijurisdictional partnerships will provide the most effective way to share the burden of completing the application process and carrying out the funded activities.

6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

The consequence to Federal Program or Policy activities if this collection is not conducted is that HUD will be unable to award the $85M to the communities who need it. There are no technical or legal obstacles to reducing burden that we are aware of. Application information will be collected for the purposes of this NOFO; it is required to fully assess each applicant’s qualifications for the specific purposes of the PRO Housing competition. All information collected is used to carefully consider applications for selection, funding, and to determine whether the selected applicants have met the expectations established by the Congressional appropriations and HUD leadership. If HUD collects less information, or collected it less frequently, the Department could not accurately identify eligible applicants, determine the eligibility of applicants for grant funds, or ensure that funds were spent according to the intention of the appropriations.

7. Explain any special circumstances that would cause an information collection to be conducted in a manner:

• requiring respondents to report information to the agency more than quarterly; Not Applicable

• requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it; Not Applicable

• requiring respondents to submit more than an original and two copies of any document; Not Applicable

• requiring respondents to retain records other than health, medical, government contract, grant-in-aid, or tax records for more than three years; Not Applicable

• in connection with a statistical survey, that is not designed to produce valid and reliable results than can be generalized to the universe of study; Not Applicable

• requiring the use of a statistical data classification that has not been reviewed and approved by OMB; Not applicable

• that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or Not Applicable

• requiring respondents to submit proprietary trade secret, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law. Not Applicable

There are no special circumstances.

8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.

• Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping disclosure, or reporting format (if any) and the data elements to be recorded, disclosed, or reported.

• Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every 3 years -- even if the collection of information activity is the same as in prior periods. There may be circumstances that preclude consultation in a specific situation. These circumstances should be explained.

In accordance with 5 CFR 1320(d), the Agency’s notice soliciting public comments was announced in the Federal Register on May 22, 2023, volume 88, No. 98, page 32782.

As of June 24^th, HUD has received comments from internal HUD departments and has not received any comments from the public. Upon the completion of the 60-day period, no comments were received.

9. Explain any decision to provide any payment or gift to respondents, other than renumeration of contractors or grantees.

There will be no payments or gifts to respondents outside of the awards made to successful applicants.

10. Describe any assurance of confidentiality provided to respondents and the basis for assurance in statute, regulation or agency policy.

In accordance with the Privacy Act, the collection tool and certification note the following: The Privacy Act of 1974 as amended (5 U.S.C. 552a) and P.L. 117-328 authorize collection of this information. The purpose of this collection is to accept applications for projects requesting federal grant funds made available in 2023 Consolidated Appropriations Act. Pursuant to 5 U.S.C. 552a (b)(3), additional disclosures of this information may be to: Research and Statistical Analysis Disclosure; Information Sharing; Environment Disclosure; Data Breach Remediation Purposes; Disclosures for Law Enforcement Investigations; Court or Law Enforcement Proceedings; Department of Justice for Litigation

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.

This information collection does not include any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. The information will collect program and system level data only, and no personally identifiable information will be collected regarding current or future program participants.

12. Provide estimates of the hour burden of the collection of information. The statement should:

• indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance. Generally, estimates should not include burden hours for customary and usual business practices;

• if this request covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens in Item 13 of OMB Form 83-I; and

• provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories. The cost of contracting out or paying outside parties for information collection activities should not be included here. Instead this cost should be included in Item 13.

The estimated burden for this NOFO application collection includes HUD’s Standardized Grant Application forms which have been reviewed and approved by OMB under control number: 2501-0017. Additionally, as stated above, OMB has reviewed and approved the post award activity for CDBG activities under control numbers: 2506- 0077, 0085, 0117, and 0165. The burden hours and requirements under the above-mentioned approved collections have not been altered in any way. Applicants are asked to provide narrative responses detailing their proposed activities using PRO Housing funding. Applicants are also required to affirmatively acknowledge the statutorily required certification, located in Appendix D of the NOFO. HUD is collecting certifications from all applicants, and there is a specific certification form depending on each applicant type: local governments, state governments, metropolitan planning organizations and multijurisdictional entities. Each applicant is only required to complete one certification form. The certification form collects information related to a variety of laws, including CDBG requirements and cross-cutting requirements. The applicant will be expected to review and sign the form.

If an applicant is proposing a partnership with one or more entities as part of their application submission, the applicant must provide documentation of that partnership in the form of partner letters from each partner and a partnership agreement. The burden hours include submission of documentation of partnership, if required. Optional partnership templates are included in the application package, which applicants may choose to use to satisfy these requirements.

The burden hours associated with the above-mentioned forms have been included in the burden hours list below.

Table 1: Estimated Public Burden

Information Collection	Number of Respondents	Frequency of Response	Responses Per Annum	Burden Hour Per Response	Annual Burden Hours	Hourly Cost Per Response*	Annual Cost
NOFO Application	100	1	100	10	1000	$38.92	$38,920
NOFO Certifications	100	1	100	1	100	$38.92	$3,892
Total	100	1	100	11	1100	$38.92	$42,812

* Given that the nature of the applicants is unknown at this time, HUD estimates the cost per response to average around OPMs supplied GS-13 base pay level (locality pay not included). While NOFO applicants may vary in experience, pay, and possibly industry, HUD believes that the average range of pay across the respondents will fall closely within the GS-13 pay range.

13. Provide an estimate of the total annual cost burden to respondents or recordkeepers resulting from the collection of information (do not include the cost of any hour burden shown in Items 12 and 14).

• The cost estimate should be split into two components: (a) a total capital and start-up cost component (annualized over its expected useful life); and (b) a total operation and maintenance purchase of services component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information. Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s) and the time period over which costs will be incurred. Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities;

• If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10) utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.

• generally, estimates should not include purchases of equipment or services, or portions thereof made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the government, or (4) as part of customary and usual business or private practices.

We do not anticipate any capital or start up costs needed as the projects should be ongoing. A successful applicant will have already started work on the project but needs an additional infusion of funds to help move the project to completion.

14. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information. Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table.

The cost to the Federal government is for dedicated staff hours. Staff will review applications during business hours so no overtime costs should be incurred. Based on previous HUD NOFO collection review information, it is expected that staff will collectively spend about 15 hours to complete the threshold, QC, and Full reviews of each application. Equipment costs are already allocated, and the agency should not incur any new costs associated with the collection of applications. The applications are collected through grants.gov and will be stored on a SharePoint site during the review period. There will be no printed materials. The table below shows the estimated cost of this application collection.

Table 2: Estimated HUD Burden

Information Collection	Number of Respondents	Frequency of Response	Responses Per Annum	Burden Hour Per Response	Annual Burden Hours	Hourly Cost Per Response*	Annual Cost
NOFO Review	100	1	100	15	1500	$38.92	$58,380

*HUD burden cost is based on OPMs 2022 furnished salaries for GS-13 level employees (locality pay not included). Given that salary grades may vary across panel review teams, HUD believes the GS-13 pay level is an accurate average across review teams. Some reviewers may make more or less than the stated burden cost.

15. Explain the reasons for any program changes or adjustments reported in Items 13 and 14 of the OMB Form 83-I.

Not applicable

16. For collection of information whose results will be published, outline plans for tabulation and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

In accordance with the Uniform Administrative Requirements, 2 CFR 200.212(a) and the statutory requirements for Federal Spending Transparency (e.g. FFATA), except as noted in this section, for applicable Federal awards the Federal awarding agency must announce all federal awarding publicly and publish the required information on a publicly available OMB-designated governmentwide website. The awardee information will be posted in the Federal Register. Panelists will review and score each application in accordance with the HUD Reform Act to ensure they meet threshold and application requirements. While we do not know the actual dates the NOFO will be posted, it will be made available to the public for a period not to exceed 90 days. Upon the end of the posting period, the NOFO applications will be reviewed and ranked. Those applications meeting the requirements of the NOFO can expect to be awarded no later than 90 days from the end of the application window.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

Not applicable

18. Explain each exception to the certification statement identified in item 19.

Not Applicable

B. Collections of Information Employing Statistical Methods