Final - 2577-0269 Supporting Statement A CN renewal

Supporting Statement for Paperwork Reduction Act Submissions

(Choice Neighborhoods post-award information collection)

(OMB Control No. 2577-0269)

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.

This information collection is required to manage Choice Neighborhoods grants.

Application content and othe pre-award documents for the Choice Neighborhoods program are now included in HUD’s Generic Solution for Solicitation for HUD’s Competitive Discretionary funding Opportunity Announcements Information Collection (OMB 2501-0044). This information collection only inlcudes the burden associated with post-award requirements of 2 CFR 200 and the grant terms and conditions to manage grant budgets (2 CFR 200.308-309), collect quarterly progress reports (2 CFR 328-330), close out grants (2 CFR 200.344-346), and payment requests (2 CFR 200.305). With grants awarded through FY24, currently planning grant terms run through 2027 and implementation grant terms run through 2033.

Grantees are local governments, public housing agencies, tribal entities, and owners of HUD-assisted housing. The program authority for the Choice Neighborhoods Initiative is Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v, https://www.govinfo.gov/content/pkg/USCODE-2023-title42/html/USCODE-2023-title42-chap8-subchapI-sec1437v.htm) (1937 Act), as amended by the annual appropriations laws. The annual appropriations act permits the HUD Secretary to use the appropriated amount for the Choice Neighborhoods Initiative.

Choice Neighborhoods funding focuses on the transformation of severely distressed public and/or HUD-assisted housing developments. HUD awards two types of grants: Planning and Implementation. Planning Grants support communities in developing a local plan, referred to as a ‘Transformation Plan,’ to redevelop severely distressed public and/or HUD-assisted housing, revitalize the surrounding neighborhood, and coordinate services to improve quality of life outcomes for residents. Implementation Grants provide funding to help communities execute their plans.

Building upon the successes achieved and the lessons learned from the HOPE VI program, Choice Neighborhoods is a program that employs a comprehensive approach to community development centered on housing revitalization. The program aims to transform neighborhoods of poverty into viable mixed-income neighborhoods with access to economic opportunities by revitalizing severely distressed public and HUD-assisted housing and investing and leveraging investments in well-functioning services, effective schools and education programs, public assets, public transportation, and improved access to jobs.

Choice Neighborhoods grants are governed by the Notice of Funding Opportunity (NOFO) and the Grant Agreements executed between each grant recipient and HUD.

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.

HUD staff in the Choice Neighborhoods office review the information collected as part of their financial management and performance monitoring duties. In addition, information provided by grantees in the quarterly progress reports is used to compile the Annual Report to Congress, assist HUD-sponsored evaluations, and inform policy decisions to improve the program.

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 Implementation Grantee quarterly progress report is submitted via CN Inform, an online platform (https://cninform.info/login/auth) to improve data quality and to reduce the public reporting burden. Other submissions are submitted directly via email to their assigned HUD grant manager.

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.

There is no duplication of effort. Information collected is unique to each type of collection and does not duplicate any similar information or method.

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

These information collections have no impact on small businesses or other entities as they are not eligible grantees.

6. Describe the consequences 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.

Federal requirements, including 2 CFR 200 and Congressional appropriations, mandate reporting and record retention on the Choice Neighborhoods program and for grant closeouts to be processed in a timely fashion.

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

7. 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.

In accordance with 5 CFR 1320.8(d), the agency’s notice announcing this collection of information appeared in the Federal Register on May 21, 2025 (Volume 90, No 97, page 21787). The public was given until July 21, 2025, to submit comments on the proposed information. No Comment(s) were received.

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

No payments or gifts are provided to respondents for any of these information collections.

10. Describe any assurance of confidentiality provided to respondents and the basis for assurance in statute, regulation or agency policy. If the collection requires a system of records notice (SORN) or privacy impact assessment (PIA), those should be cited and described here.

Assurance of confidentiality is neither provided nor needed for any of these information collections. The Privacy Act of 1974 provides privacy protection to respondents.

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.

No sensitive questions are being asked for any of these information collections.

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 chart below; 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.

Information Collection	Number of Respondents	Frequency of Response	Responses Per Annum	Burden Hour Per Response	Annual Burden Hours	Hourly Cost Per Response	Annual Cost
Implementation grantees on-line quarterly reporting (CN Inform) (Quarterly)	37	4	148	6	888	$51.97	$46,149.36
Implementation Grant Budget Form (HUD-53236) (Twice per year)	37	2	74	1.25	92.5	$51.97	$4,807.23
Planning grantees quarterly (reporting (Quarterly)	27	4	108	1.25	135	$51.97	$7,015.95
Planning Grant Budget Form (HUD-53421)	27	1	27	1	27	$51.97	$1,403.19
Actual Cost Certificate (HUD-50163) closeout	15	1	15	1	15	$51.97	$779.55
Voucher payments using eLOCCS (once per month) (OMB Approval No. 2535-0102)	64	12	768	0	0	0	0
Total	207		1,140		1,157.5		$60,155.28

The total annual burden for this collection is expected to be 1157.5 hours. The total estimated annual cost is $60,155.28. The ‘Number of Respondents’ is based on average of number of active grantees. Frequency is based on reporting requirements (for quarterly reports and closeout documents) and typical experience of prior/current grantees (budget form and LOCCS voucher payments). As the LOCCS voucher submission is covered by a different information collection, the burden in this information collection is zero. To estimate the hourly cost per respondent, HUD used the Department of Labor Bureau of Labor Statistics’ hourly mean wage rate for “Project Management Specialists” (occupation code 13-1082), May 2024 National Occupational Employment and Wage Estimates United States, https://www.bls.gov/oes/tables.htm.

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 already reflected on the burden worksheet 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.

There are no start-up or additional costs to the respondents other than those reported in Item 12 above in the Burden Cost Column.

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.

Information Collection	Number of Respondents	Frequency of Response	Responses Per Annum	Burden Hour Per Response	Annual Burden Hours	Hourly Cost Per Response	Annual Cost
Implementation grantees on-line quarterly reporting (CN Inform) (Quarterly)	37	4	148	1.5	222	$65.48	$14,536.56
Implementation Grant Budget Form (HUD-53236) (Twice per year)	37	2	74	1	74	$65.48	$4,845.52
Planning grantees quarterly reporting (Quarterly)	27	4	108	0.5	54	$65.48	$3,535.92
Planning Grant Budget Form (HUD-53421)	27	1	27	1	27	$65.48	$1,767.96
Actual Cost Certificate (HUD-50163) closeout	15	1	15	0.75	11.25	$65.48	$736.65
Voucher payments using eLOCCS (once per month) (OMB Approval No. 2535-0102)	64	12	768	0	0	0	0
Total	207		1,140		388.25		$25,422.61

The ‘Number of Respondents’ is based on average of number of active grantees. Frequency is based on reporting requirements (for quarterly reports and closeout documents) and typical experience of prior/current grantees (budget form and LOCCS voucher payments). Salary: OPM 2025, GS-13-5 for Washington, DC metro area

15. Explain the reasons for any program changes or adjustments reported in Items 12 and 14 of the Supporting Statement.

Program Change:

• All items related to applications and pre-award documents have been removed from this information collection and included with OMB 2501-0044-Generic Solution for Solicitation for HUD's Competitive Discretionary Funding Opportunity Announcements.

• Quarterly Progress Reports have been streamlined to reduce burden on grantees

• Number of active grants has increased due to increased funding and length of grant terms

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.

These data are not collected for use in research or planned publication. Aggregated information may be made available publicly depending on requests from OMB, Congress, or Federal agencies with appropriate authority. Individual information collection results will not be published.

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.

HUD is not seeking an exception to the certification statement.

18. Explain each exception to the certification statement.

This information collection does not employ statistical methods.