Notice for Requests for Proposals for Guaranteed Loans Under the Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal Year 2005, 12569-12575 [05-4776]
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[Federal Register Volume 70, Number 48 (Monday, March 14, 2005)] [Notices] [Pages 12569-12575] From the Federal Register Online via the Government Printing Office [www.gpo.gov] [FR Doc No: 05-4776] [[Page 12569]] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Rural Housing Service Notice for Requests for Proposals for Guaranteed Loans Under the Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal Year 2005 AGENCY: Rural Housing Service, USDA. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: This is a request for proposals for guaranteed loans under the section 538 Guaranteed Rural Rental Housing Program (GRRHP) pursuant to 7 CFR 3565.4 for Fiscal Year (FY) 2005 subject to the availability of funding. FY 2005 funding for the section 538 program is $99.2 million. Applicants will submit proposals in the form of ``RESPONSES.'' The commitment of program dollars will be made to applicants of selected responses that have fulfilled the necessary requirements for obligation. The following paragraphs outline the timeframes, eligibility requirements, lender responsibilities, and the overall response and application processes. The GRRHP operates under 7 CFR part 3565. The GRRHP Origination and Servicing Handbook (HB-1-3565) is available to provide lenders and the general public with guidance on program administration. HB-1-3565, which contains a copy of 7 CFR part 3565 in Appendix 1, can be found at the Rural Development Instructions Web site address https://www.rurdev.usda.gov/regs. Eligible lenders are invited to submit responses for the development of affordable rental housing to serve rural America. The Rural Housing Service (RHS) will review responses submitted by eligible lenders, on the lender's letterhead, and signed by both the prospective borrower and lender. Although a complete application is not required in response to this Notice, eligible lenders may submit a complete application concurrently with the response. The submission of a complete application will not affect the scoring process. DATES: The RHS will review and score all responses received through June 13, 2005. Those responses that are selected that subsequently submit complete applications and meet all Federal environmental requirements will receive commitments to the extent an appropriation act provides funding for GRRHP for FY 2005 until all funds are expended. If any FY 2005 funds have not been exhausted by June 13, 2005, the Agency will continue reviewing and scoring NOFA responses every month after June 13, 2005. Each month after June 13, 2005, the Agency will select proposals with a threshold score of 25 or higher with priority being given based on score rank until all funds are expended. Priority for the selection of proposals that meet the threshold score of 25 will be given to the highest scoring proposals. A Notice will be placed in the Federal Register when all funds are committed for FY 2005. Eligible lenders intending to mail a response or application must provide sufficient time to permit delivery to the Submission Address on or before the closing deadline date and time. Acceptance by a U.S. Post Office or private mailer does not constitute delivery. Postage due responses and applications will not be accepted. Submission Address: Eligible lenders will send responses to the Multi-Family Housing Director in the State Office where the project will be located. Rural Development State Offices, their addresses, telephone numbers, and person to contact follows: Note: Telephone numbers listed are not toll-free. Alabama State Office Suite 601, Sterling Centre 4121 Carmichael Road Montgomery, AL 36106-3683 (334) 279-3455 TDD (334) 279-3495 James B. Harris Alaska State Office 800 West Evergreen, Suite 201 Palmer, AK 99645 (907) 761-7740 TDD (907) 761-8905 Debbie Andrys Arizona State Office Phoenix Courthouse and Federal Building 230 North First Ave., Suite 206 Phoenix, AZ 85003-1706 (602) 280-8765 TDD (602) 280-8706 Johnna Vargas Arkansas State Office 700 W. Capitol Ave., Room 3416 Little Rock, AR 72201-3225 (501) 301-3250 TDD (501) 301-3063 Cathy Jones California State Office 430 G Street,4169 Davis, CA 95616-4169 (530) 792-5830 TDD (530) 792-5848 Jeff Deiss Colorado State Office 655 Parfet Street, Room E100 Lakewood, CO 80215 (720) 544-2923 TDD (800) 659-2656 Mary Summerfield Connecticut Served by Massachusetts State Office Delaware and Maryland State Office 4607 South Dupont Highway PO Box 400 Camden, DE 19934-9998 (302) 697-4353 TDD (302) 697-4303 Pat Baker Florida & Virgin Islands State Office 4440 N.W. 25th Place Gainesville, FL 32606-6563 (352) 338-3465 TDD (352) 338-3499 Elizabeth M. Whitaker Georgia State Office Stephens Federal Building 355 E. Hancock Avenue Athens, GA 30601-2768 (706) 546-2164 TDD (706) 546-2034 Wayne Rogers Hawaii State Office (Services all Hawaii, American Samoa Guam, and Western Pacific) Room 311, Federal Building 154 Waianuenue Avenue Hilo, HI 96720 (808) 933-8305 TDD (808) 933-8321 Jack Mahan Idaho State Office Suite A1 9173 West Barnes Dr. Boise, ID 83709 (208) 378-5630 TDD (208) 378-5644 LaDonn McElligott Illinois State Office 2118 West Park Court, Suite A Champaign, IL 61821-2986 (217) 403-6222 TDD (217) 403-6240 Barry L. Ramsey Indiana State Office 5975 Lakeside Boulevard Indianapolis, IN 46278 (317) 290-3100 (ext. 423) TDD (317) 290-3343 John Young Iowa State Office 210 Walnut Street Room 873 Des Moines, IA 50309 (515) 284-4666 TDD (515) 284-4858 Sue Wilhite Kansas State Office 1303 SW. First American Place, Suite 100 Topeka, KS 66604-4040 (785) 271-2721 TDD (785) 271-2767 Virginia M. Hammersmith Kentucky State Office 771 Corporate Drive, Suite 200 Lexington, KY 40503 (859) 224-7325 TDD (859) 224-7422 Paul Higgins Louisiana State Office 3727 Government Street Alexandria, LA 71302 (318) 473-7962 TDD (318) 473-7655 Yvonne R. Emerson Maine State Office 967 Illinois Ave., Suite 4 PO Box 405, Bangor, ME 04402-0405 (207) 990-9110 TDD (207) 942-7331 [[Page 12570]] Bob Nadeau Maryland Served by Delaware State Office Massachusetts, Connecticut, & Rhode Island State Office 451 West Street, Amherst, MA 01002 (413) 253-4333 TDD (413) 253-4590 Donald Colburn Michigan State Office 3001 Coolidge Road, Suite 200 East Lansing, MI 48823 (517) 324-5192 TDD (517) 337-6795 Ghulam R. Simbal Minnesota State Office 375 Jackson Street Building, Suite 410 St. Paul, MN 55101-1853 (651) 602-7782 TDD (651) 602-7830 Peter Lundquist Mississippi State Office Federal Building, Suite 831 100 W. Capitol Street Jackson, MS 39269 (601) 965-4325 TDD (601) 965-5850 Darnella Smith-Murray Missouri State Office 601 Business Loop 70 West Parkade Center, Suite 235 Columbia, MO 65203 (573) 876-0990 TDD (573) 876-9480 Colleen James Montana State Office 900 Technology Blvd. Suite B Bozeman, MT 59715 (406) 585-2565 TDD (406) 585-2562 Deborah Chorlton Nebraska State Office Federal Building, Room 152 100 Centennial Mall N Lincoln, NE 68508 (402) 437-5594 TDD (402) 437-5093 Phil Willnerd Nevada State Office 1390 South Curry Street Carson City, NV 89703-9910 (775) 887-1222 (ext. 25) TDD (775) 885-0633 Angilla Denton New Hampshire State Office Concord Center Suite 218, Box 317 10 Ferry Street Concord, NH 03301-5004 (603) 223-6046 TDD (603) 229-0536 Jim Fowler New Jersey State Office 5th Floor North Suite 500 8000 Midlantic Dr. Mt. Laurel, NJ 08054 (856) 787-7740 TDD (856) 787-7784 George Hyatt, Jr. New Mexico State Office 6200 Jefferson St., NE., Room 255 Albuquerque, NM 87109 (505) 761-4944 TDD (505) 761-4938 Carmen N. Lopez New York State Office The Galleries of Syracuse 441 S. Salina Street, Suite 357 5th Floor Syracuse, NY 13202 (315) 477-6419 TDD (315) 477-6447 George N. Von Pless North Carolina State Office 4405 Bland Road, Suite 260 Raleigh, NC 27609 (919) 873-2066 TDD (919) 873-2003 Terry Strole North Dakota State Office Federal Building, Room 208 220 East Rosser PO Box 1737 Bismarck, ND 58502 (701) 530-2049 TDD (701) 530-2113 Kathy Lake Ohio State Office Federal Building, Room 507 200 North High Street Columbus, OH 43215-2477 (614) 255-2418 TDD (614) 255-2554 Melodie Taylor-Ward Oklahoma State Office 100 USDA, Suite 108 Stillwater, OK 74074-2654 (405) 742-1070 TDD (405) 742-1007 Ivan S. Graves Oregon State Office 101 SW. Main, Suite 1410 Portland, OR 97204-3222 (503) 414-3325 TDD (503) 414-3387 Margo Donelin Pennsylvania State Office One Credit Union Place, Suite 330 Harrisburg, PA 17110-2996 (717) 237-2281 TDD (717) 237-2261 Martha Eberhart Puerto Rico State Office 654 Munoz Rivera Avenue IBM Plaza, Suite 601 Hato Rey, PR 00918 (787) 766-5095 (ext. 249) TDD (787) 766-5332 Lourdes Colon Rhode Island Served by Massachusetts State Office South Carolina State Office Strom Thurmond Federal Building 1835 Assembly Street, Room 1007 Columbia, SC 29201 (803) 253-3432 TDD (803) 765-5697 Larry D. Floyd South Dakota State Office Federal Building, Room 210 200 Fourth Street, SW. Huron, SD 57350 (605) 352-1132 TDD (605) 352-1147 Roger Hazuka or Pam Reilly Tennessee State Office Suite 300 3322 West End Avenue Nashville, TN 37203-1084 (615) 783-1375 TDD (615) 783-1397 G. Benson Lasater Texas State Office Federal Building, Suite 102 101 South Main Temple, TX 76501 (254) 742-9758 TDD (254) 742-9712 Julie Hayes Utah State Office Wallace F. Bennett Federal Building 125 S. State Street, Room 4311 Salt Lake City, UT 84147-0350 (801) 524-4325 TDD (801) 524-3309 Janice Kocher Vermont State Office City Center, 3rd Floor 89 Main Street Montpelier, VT 05602 (802) 828-6021 TDD (802) 223-6365 Heidi Setien Virgin Islands Served by Florida State Office Virginia State Office Culpeper Building, Suite 238 1606 Santa Rosa Road Richmond, VA 23229 (804) 287-1596 TDD (804) 287-1753 CJ Michels Washington State Office 1835 Black Lake Blvd., Suite B Olympia, WA 98512 (360) 704-7730 TDD (360) 704-7760 Robert Lund Western Pacific Territories Served by Hawaii State Office West Virginia State Office Federal Building 75 High Street, Room 320 Morgantown, WV 26505-7500 (304) 284-4889 TDD (304) 284-4836 Craig St. Clair Wisconsin State Office 4949 Kirschling Court Stevens Point, WI 54481 (715) 345-7615 (ext. 151) TDD (715) 345-7614 Peter Kohnen Wyoming State Office PO Box 11005 Casper, WY 82602 (307) 233-6715 TDD (307) 233-6733 Jack Hyde FOR FURTHER INFORMATION CONTACT: Arlene Nunes, Senior Loan Specialist, Guaranteed Loans, Multi-Family Housing Processing Division, U.S. Department of Agriculture, South Agriculture Building, Room 1271, STOP 0781, 1400 Independence Avenue, SW., Washington, DC 20250-0781. E-mail: arlene.nunes@usda.gov. Telephone: (202) 401-2307. This number is not toll-free. Hearing or speech-impaired persons may access that number by [[Page 12571]] calling the Federal Information Relay Service toll-free at (800) 877- 8339. Eligiblity of Prior Year Selected Notice of Funding Availability (NOFA) Responses: NOFA Responses selected, but not yet funded, in prior years, are eligible for FY 2005 program dollars. Prior year NOFA responses selected by RHS may compete for FY 2005 funding without completing a FY 2005 response. These NOFA responses are not subject to the scoring process. RHS will commit and obligate funds on a ``first- come first-served basis'' only to lenders that submit a complete application for prior year selected NOFA response, including all Federal environmental documents required by 7 CFR part 1940, subpart G, a Form RD 3565-1, and the $2,500 application fee. FY 2005 will be the last fiscal year that selected prior year NOFA responses will be considered for funding. If prior year selections do not develop into a complete application and funds are not obligated to the subject project, the prior year NOFA response selection will be automatically cancelled. A new NOFA response for the project can be submitted subject to the conditions of the then current NOFA year. General Program Information Program Purpose: The section 538 GRRHP is designed to increase the supply of affordable multi-family housing through partnerships between the RHS and major lending sources, as well as state and local housing finance agencies and bond issuers. Responses Must Be Submitted by: The Agency will only accept responses from GRRHP eligible or approved lenders as described in 7 CFR 3565.102 and 3565.103 respectively. Qualifying Properties: Qualifying properties include new construction for multi-family housing units or acquisition of existing structures with a minimum per unit rehabilitation expenditure requirement in accordance with 7 CFR 3565.252. The portion of guaranteed funds for acquisition with rehabilitation is limited to 25 percent of the program authority. Eligible Financing Sources: Any form of Federal, state, and conventional sources of financing can be used in conjunction with the loan guarantee, including Home Investment Partnership Program (HOME) grant funds, tax exempt bonds, and low income housing tax credits. Maximum Guarantee: The maximum guarantee for a permanent loan will be 90 percent of the unpaid balance and interest on the loan. The maximum guarantee on a construction loan will be 90 percent of the work in place, which have credit enhancements, or up to 90 percent of the amount actually advanced by the lender, whichever is less. Reimbursement of Losses: Any losses will be split on a pro-rata basis between the lender and the RHS from the first dollar lost. Interest Rate: RHS will accept the best rate negotiated between the lender and prospective borrower. The lender is not required to provide the interest rate in the response. The interest rate must be fixed over the term of the loan. Interest Credit: RHS will provide additional financial assistance for at least 20 percent of the loans by providing an interest credit to reduce the interest rate to the Long Term Monthly Applicable Federal Rate (AFR) subject to appropriations. The interest credit will be paid following the January 1st of the year in which the project has reached occupancy standards, and the permanent loan note guarantee is issued. If 20 percent of the loans have not received interest credit by June 13, 2005, then RHS will award interest credit to those loans that initially requested interest credit and have the highest interest credit priority score until at least 20 percent of the loans have received interest credit. Requests for interest credit must be made in the response. When interest credit assistance is requested, lenders must state in the response the maximum basis points above the Long Term Monthly AFR that will be used to calculate the interest rate. Priority points will be given for basis points equal to or less than 250 above the Long Term Monthly AFR. Lenders should use the Long Term Monthly AFR in effect at the closing of the lender's loan. Lenders are not permitted to make requests for interest credit after the selection process has taken place. Due to limited funding and in order to distribute interest credit assistance as broadly as possible, the Agency has decided to limit the interest credit to $1.5 million per loan. For example, if an eligible request were made for interest credit on a loan of $2.5 million, up to $1.5 million of the loan would receive interest credit. Interest credit is not available for construction loans. Interest credit is only available for permanent loans. Lenders with projects that are viable with or without interest credit are encouraged to submit a response reflecting financial and market feasibility under both funding options. Responses requesting consideration under both options will not affect interest credit selection. However, once the interest credit funds are exhausted, only those responses requesting consideration under both funding options or the Non-Interest Credit option will be further considered. Due to limited interest credit funds and the responsibility of RHS to target and give priority to rural areas most in need, responses requesting interest credit must score a minimum of 55 points under the criteria established in this NOFA. In the event of ties, selection between responses will be by lot. Surcharges for Guarantee of Construction Advances: There is no surcharge for the guarantee of construction advances for FY 2005. Program Fees for FY 2005: The following information stipulates the program fees. (1) There is an initial guarantee fee of 1 percent of the total guarantee amount, which will be due when the loan guarantee is issued. In the case of a combination construction and permanent loan guarantee, the 1 percent initial fee will be paid when the construction loan note guarantee is issued. For purposes of calculating this fee, the guarantee amount is the product of the percentage of the guarantee times the initial principal amount of the guaranteed loan. (2) There is an annual renewal fee of 0.5 percent of the outstanding principal and interest of the loan. This fee will be collected annually on January 1st of each calendar year. (3) There is no fee for site assessment and market analysis or preliminary feasibility in FY 2005. (4) There is a non-refundable application fee of $2,500 when the application is submitted. (5) There is a flat fee of $500 when a lender requests RHS to extend the term of a guarantee commitment. (6) There is a flat fee of $500 when a lender requests RHS to reopen an application when a commitment has expired. (7) There is a flat fee of $1,250 when a lender requests RHS to approve the transfer of property and assumption of the loan to an eligible prospective borrower. (8) There is no lender application fee for lender approval in FY 2005. Eligible Lenders: An eligible lender for the section 538 GRRHP as required by 7 CFR 3565.102 must be a licensed business entity or Housing Finance Agency (HFA) in good standing in the state or states where it conducts business. Lender eligibility requirements are contained in 7 CFR 3565.102. Below is a list of some of the eligible lender criteria under 7 CFR 3565.102: (1) Licensed business entity that meets the qualifications and has the [[Page 12572]] approval of the Secretary of Housing and Urban Development (HUD) to make multi-family housing loans that are insured under the National Housing Act. A complete list of HUD approved lenders can be found on the HUD Web site at https://www.hud.gov. (2) A licensed business entity that meets the qualifications and has the approval of the Ginnie Mae or Freddie Mac or Fannie Mae corporations to make multi-family housing loans that are sold to the same corporations. A complete list of Freddie Mac approved lenders can be found in Freddie Mac's Web site at https://www.freddiemac.com. Fannie Mae approved lenders are found at https://www.fanniemae.com. For a list of Ginnie Mae issuers, contact Ginnie Mae at https://www.ginniemae.gov. (3) A state or local HFA with a top-tier rating from Moody's or Standard & Poors, or member of the Federal Home Loan Bank system, and the demonstrated ability to underwrite, originate, process, close, service, manage, and dispose of multi-family housing loans in a prudent manner. (4) Be a GRRHP approved lender, defined as an entity with an executed multi-family housing Lender's Agreement with RHS. (5) Lenders that can demonstrate the capacity to underwrite, originate, process, close, service, manage, and dispose of multi-family housing loans in a prudent manner. In order to be approved the lender will have to have an acceptable level of financial soundness as determined by a lender rating service. The submission of materials demonstrating capacity will be required if the lender's response is selected. Lenders who are otherwise ineligible may become eligible if they maintain a correspondent relationship with an eligible lender that does have the capacity to underwrite, originate, process, close, service, manage, and dispose of multi-family housing loans in a prudent manner. In this case, the eligible lender must submit the response and application. All contractual and legal documentation will be signed between RHS and the lender that submitted the response and application. GRRHP Lender Approval Application: Lenders whose responses are selected will be notified by the RHS to submit a request for GRRHP lender approval application within 30 days of notification. Lenders that have received GRRHP lender approval in the past and are in good standing do not need to reapply for GRRHP lender approval. Submission of Documentation for GRRHP Lender Approval: All lenders that have not yet received GRRHP lender approval must submit a complete lender application to: Director, Multi-Family Housing Processing Division, Rural Housing Service, U.S. Department of Agriculture, Room 1263, STOP 0781, 1400 Independence Avenue, SW., Washington, DC 20250- 0781. Lender applications must be identified as ``Section 538 Guaranteed Rural Rental Housing Program'' on the envelope. As RHS does not have a formal application form, a complete application consists of a cover letter requesting GRRHP lender approval and the following documentation: (1) Request for GRRHP lender approval on the lender's letterhead; (2) Lenders who are HUD, Ginnie Mae, Freddie Mac or Fannie Mae multi-family approved lenders are required to show evidence of this status, such as a copy of a letter designating the distinction; (3) The lender's Loan Origination, Loan Servicing and Portfolio Management Handbooks. These handbooks should detail the lender's policies and procedures on loan origination through termination for multi-family loans; (4) Portfolio performance data; (5) Copies of standard documents that will be used in processing GRRHP loans; (6) Resumes and qualifications of key personnel that will be involved in the GRRHP; (7) Identification of standards and processes that deviate from those outlined in the GRRHP Origination and Servicing Handbook (HB-1- 3565) found at https://rdinit.usda.gov/regs; (8) A copy of the most recent audited financial statements; (9) Lender specific information including: (a) Legal name and address, (b) list of principal officers and their responsibilities, (c) certification that the officers and principals of the lender have not been debarred or suspended from Federal programs, (d) Form AD 1047, (e) certification that the lender is not in default or delinquent on any Federal debt or loan, or possesses as an outstanding finding of deficiency in a federal housing program, and (f) certification of the lender's credit rating; and (10) Documentation on bonding and insurance. GRRHP Lender Approval Requirements: Lenders who request GRRHP lender approval must meet the standards stipulated in the 7 CFR 3565.103. Lender Responsibilities: Lenders will be responsible for the full range of loan origination, underwriting, management, servicing, compliance issues and property disposition activities associated with their projects. The lender will be expected to provide guidance to the prospective borrower on the RHS requirements during the application phase. Once the guarantee is issued, the lender is expected to service each loan it underwrites or contract these services to another capable entity. Discussion of Notice Content of Notice Responses: All responses require lender information and project specific data. Incomplete responses will not be considered for funding. Lenders will be notified of incomplete responses. Complete responses are to include a signed cover letter from the lender on the lender's letterhead and the following information: (1) Lender certification--The lender must certify that the lender will make a loan to the prospective borrower for the proposed project, under specified terms and conditions subject to the issuance of the GRRHP guarantee. Lender certification must be on the lender's letterhead and signed by both the lender and the prospective borrower. (2) Project specific data--The lender must submit the project specific data below on the lender's letterhead, signed by both the lender and the prospective borrower. ------------------------------------------------------------------------ ------------------------------------------------------------------------ Lender Name Insert the lender's name. ------------------------------------------- Lender Tax ID Insert lender's tax ID . ------------------------------------------- Lender Contact Name Name of the lender contact for loan. ------------------------------------------- Mailing Address Lender's complete mailing address. ------------------------------------------- Phone Phone for lender contact. ------------------------------------------- [[Page 12573]] Fax Insert lender's fax . ------------------------------------------- E-mail Address Insert lender contact e-mail address. ------------------------------------------- Borrower Name and Organization Type State whether borrower is a Limited Partnership, Corporation, Indian Tribe, etc. ------------------------------------------- Tax Classification Type State whether borrower is for profit, not for profit, etc. ------------------------------------------- Borrower Tax ID Insert borrower's tax ID . ------------------------------------------- Borrower Address, including County Insert borrower's address and county. ------------------------------------------- Borrower Phone Insert borrower's phone . ------------------------------------------- Principal or Key Member for the Borrower Insert name and title. ------------------------------------------- Borrower Information and Statement of Attach relevant information. Housing Development Experience ------------------------------------------- New Construction or Acquisition with State whether the project is Rehabilitation new construction or acquisition with rehabilitation. ------------------------------------------- Project Location Town or City Town or city in which the project is located. ------------------------------------------- Project County County in which the project is located. ------------------------------------------- Project State State in which the project is located. ------------------------------------------- Project Zip Code Insert zip code. ------------------------------------------- Project Congressional District Congressional District for project location. ------------------------------------------- Project Name Insert project name. ------------------------------------------- Project Type Family, senior (all residents 55 years or older), or mixed. ------------------------------------------- Property Description and Proposed Provide as an attachment. Development Schedule ------------------------------------------- Total Project Development Cost Enter amount for total project. ------------------------------------------- of Units Insert the of units in the project. ------------------------------------------- Ratio of 3-5 bedroom units to total units Insert percentage of 3-5 bedroom units to total units. ------------------------------------------- Cost Per Unit Total development cost divided by of units. ------------------------------------------- Rent Proposed rent structure. ------------------------------------------- Median Income for Community Provide median income for the community. ------------------------------------------- Evidence of Site Control Attach relevant information. ------------------------------------------- Description of Any Environmental Issues Attach relevant information. ------------------------------------------- Loan Amount Insert the loan amount. ------------------------------------------- Interest Credit (IC) Is interest credit requested for this loan? (Yes or No) ------------------------------------------- Basis Points over the Long Term Monthly Lenders seeking interest Applicable Federal Rate (for interest credit must provide the credit requests only) maximum basis points above the Long Term Monthly AFR that will be used to calculate the interest rate. Priority points will be given for basis points equal to or less than 250 above the Long Term Monthly AFR. Lenders should use the Long Term Monthly AFR in effect at the closing of the lender's loan. ------------------------------------------- If Above Is Yes, Should Proposal Be If Yes, proposal must show Considered Under Non-IC Selection if IC financial feasibility for Funds Are Exhausted? Non-IC consideration. ------------------------------------------- Borrower's Proposed Equity Insert amount. ------------------------------------------- Tax Credits Will the project be allocated tax credits? How much? What is the estimated value of the tax credits awarded? ------------------------------------------- Other Sources of Funds List all funding sources other than tax credits and amounts for each source. ------------------------------------------- [[Page 12574]] Loan to Total Development Cost Guaranteed loan divided by the total development costs of project. ------------------------------------------- Debt Coverage Ratio Net Operating Income divided by debt service payments. ------------------------------------------- Percentage of Guarantee Percentage guarantee requested. ------------------------------------------- Collateral Attach relevant information. ------------------------------------------- Empowerment Zone(EZ) or Enterprise Yes or No. Is the project in Community(EC), Colonia or Tribal Lands a recognized EZ or EC, Colonia or on an Indian Reservation? ------------------------------------------- Population Must be within the 20,000 population limit set for the program. ------------------------------------------- Is a Guarantee for Construction Being State yes or no. The Agency Requested? Are Advances Being Requested? will guarantee construction advances, only as part of a combination construction and permanent loan. ------------------------------------------- Loan Term Up to a 40-year amortized loan. Balloon mortgages with a minimum 25-year term are eligible. ------------------------------------------------------------------------ Scoring of Priority Criteria for Selection of Projects: All 2005 NOFA responses will be scored based on the criteria set forth below to establish their priority for obligation of funds. Priority criteria include population size, median income, loan to development cost ratio, highest percentage of 3-5 bedroom units to total units, and location in Empowerment Zones/Enterprise Communities or on Tribal Land. Prior to June 13, 2005, projects with an overall score of 25 points and a loan to development cost ratio less than 70 percent will be processed and, when ready, obligated on a first-come-first-serve basis, provided funds are available. Projects that score less than 25 points, and projects that score 25 points or more and do not have a loan to development cost ratio less than 70 percent, may be processed up to the point of obligation, but they will not be obligated until after June 13, 2005. Each month after June 13, 2005, the Agency will select proposals with a threshold score of 25 or higher until all funds are expended. Priority for the selection of proposals that meet the threshold score of 25 will be given to the highest scoring proposals. A notice will be placed in the Federal Register when all funds are committed for FY 2005. Scoring of Priority Criteria for Selection of Projects With Interest Credit Requests: RHS will allocate points to projects with requests for interest credit. Subject to available funding, all projects scoring 55 points or more on the six priority criteria below and demonstrate a need for the interest credit subsidy will receive interest credit awards. The six priority criteria for projects with requests for interest credit are listed below. Priority 1--Projects located in eligible rural communities with the lowest populations will receive the highest points. ------------------------------------------------------------------------ Population size Points ------------------------------------------------------------------------ 0-5,000 people................................................ 15 5,001-10,000 people........................................... 10 10,001-15,000 people.......................................... 5 15,001-20,000 people.......................................... 0 ------------------------------------------------------------------------ Priority 2--The most needy communities as determined by the median income from the most recent census data will receive points. The RHS will allocate points to projects located in communities having the lowest median income. Points for median income will be awarded as follows: ------------------------------------------------------------------------ Median income (dollars) Points ------------------------------------------------------------------------ Less than $35,000............................................. 20 $35,000-less than $45,000..................................... 15 $45,000-less than $55,000..................................... 10 $55,000-less than $65,000..................................... 5 $65,000 or more............................................... 0 ------------------------------------------------------------------------ Priority 3--Projects that demonstrate partnering and leveraging in order to develop the maximum number of units and promote partnerships with state and local communities will also receive points. Points will be awarded as follows: ------------------------------------------------------------------------ Loan to total development cost ratio (percentage %) Points ------------------------------------------------------------------------ 90-100........................................................ 0 Less than 90-70............................................... 15 Less than 70-50............................................... 20 Less than 50.................................................. 30 ------------------------------------------------------------------------ Priority 4--The development of projects on Tribal Lands, or in an Empowerment Zone or Enterprise Community will receive points. The RHS will attribute 20 points to projects that are developed in any of the locations described in this priority. The development of projects in a Colonia or in a place identified in the State's Consolidated Plan or State Needs Assessment as a high need community for multi-family housing will receive points. The RHS will attribute 20 points to projects that are developed in any of the locations described in this priority. Priority 5--RHS will award points for basis points above the long term monthly AFR used to calculate the interest rate. Lenders should use the Long Term Monthly AFR in effect at the closing of the lender's loan. The score for basis points is as follows: ------------------------------------------------------------------------ Basis points Points ------------------------------------------------------------------------ More than 250 basis points.................................... -20 200 to 250 basis points, inclusive............................ 10 100 to 199 basis points, inclusive............................ 15 0 to 99 basis points, inclusive............................... 20 ------------------------------------------------------------------------ Priority 6--The RHS will award points to projects with the highest ratio of 3-5 bedroom units to total units as follows: ------------------------------------------------------------------------ Ratio of 3-5 bedroom units to total units Points ------------------------------------------------------------------------ More than 50%................................................. 6 21%-50%....................................................... 5 Less than 21%-more than 0%.................................... 1 ------------------------------------------------------------------------ Notifications: Responses will be reviewed for completeness and eligibility. The RHS will notify those lenders whose responses are selected via letter. The RHS will request lenders without GRRHP lender approval to apply for GRRHP lender approval within 30 days upon receipt of notification of selection. For information regarding GRRHP lender approval, please refer to the section entitled ``Submission of Documentation for GRRHP Lender Approval'' in this Notice. Lenders will also be invited to submit a complete application and the required application fee of $2,500 to the Rural Development State Office where the project is located. Submission of GRRHP Applications: Notification letters will instruct lenders [[Page 12575]] to contact the Rural Development State Office immediately following notification of selection to schedule required agency reviews. Rural Development State Office staff will work with lenders in the development of an application package. Required documentation for a complete application package is stated in section 3 of chapter 4 of HB- 1-3565. The deadline for the submission of a complete application and application fee is 90 days from the date of notification of response selection. If the application and fee are not submitted within 90 days from the date of notification, the selection is subject to cancellation, thereby allowing another response that is ready to proceed with processing to be selected. Obligation of Program Funds: The RHS will only obligate funds to projects that meet the requirements for obligation, including undergoing a satisfactory environmental review in accordance with the National Environmental Protection Act (NEPA) and lenders who have submitted the $2,500 application fee and completed Form RD 3565-1 for the selected project. Conditional Commitment: Once required documents for obligation and the application fee are received and all NEPA requirements have been met, the Rural Development State Office will issue a conditional commitment, which stipulates the conditions that must be fulfilled before the issuance of a guarantee, in accordance with 7 CFR 3565.303. Issuance of Guarantee: The RHS State Office will issue a guarantee to the lender for a project in accordance with 7 CFR 3565.303. No guarantee can be issued without a complete application, review of appropriate certifications, satisfactory assessment of the appropriate level of environmental review, and the completion of any conditional requirements. Dated: March 3, 2005. Russell T. Davis, Administrator, Rural Housing Service. [FR Doc. 05-4776 Filed 3-11-05; 8:45 am] BILLING CODE 3410-XV-C
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