Notice for Requests for Proposals for Guaranteed Loans Under the Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal Year 2006, 4559-4566 [E6-1054]
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Federal Register / Vol. 71, No. 18 / Friday, January 27, 2006 / Notices
In addition to duty-free access to the
U.S. sugar market under NAFTA,
Mexico may enter under the provisions
of Additional U.S. Note 5 of chapter 17
of the HTS 2,954 metric tons, raw value,
of duty-free sugar under subheadings
1701.12.10, 1701.91.10, 1701.99.10,
1702.90.10 and 2106.90.44 during a FY
2006 quota period which opened
September 8, 2005.
Notice: I hereby give notice, in
accordance with Annex 703.2 of the
NAFTA, that an aggregate quantity of up
to 250,383 metric tons, raw value, of
sugar described in subheadings
1701.11.10, 1701.12.10, 1701.91.10,
1701.99.10, 1702.90.10 and 2106.90.44,
of the HTS may be entered or
withdrawn from warehouse for
consumption during the period from
October 1, 2005, through September 30,
2006. The quantity is based upon the
Department’s projection of Mexico’s net
production surplus of sugar which is
available for export to the United States.
The entire amount, which is authorized
for duty-free entry, is accounted for by
the domestic cane sugar marketing
allotment that the Commodity Credit
Corporation (CCC) estimates will not be
filled in FY 2006. CCC is reassigning
this deficit quantity to imports,
pursuant to section 359e(b)(1)(D) of the
Agricultural Adjustment Act of 1938, as
amended (7 U.S.C. 1359ee(b)(1)(D)).
I have further determined that all
entries of sugar entered from Mexico
under the provisions of Annex 703.2 of
the NAFTA during FY 2006 require
Certificates for Quota Eligibility issued
by the USDA Licensing Authority.
Signed at Washington, DC the 18th day of
January, 2006.
A. Ellen Terpstra,
Administrator, Foreign Agricultural Service.
[FR Doc. E6–1030 Filed 1–26–06; 8:45 am]
BILLING CODE 3410–10–P
DEPARTMENT OF AGRICULTURE
Forest Service
Notice of Lewis and Clark County
Advisory Committee Meeting
Forest Service, USDA.
Notice of meeting.
AGENCY:
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ACTION:
SUMMARY: Pursuant to the authorities in
the Federal Advisory Committee Act
(Pub. L. 92–463) and under the Secure
Rural Schools and Community SelfDetermination Act of 2000 (Pub. L. 106–
393) the Helena National Forest’s Lewis
and Clark County Resource Advisory
Committee will meet on Monday
February 27 from 3 p.m. until 6 p.m. in
Helena, Montana, for a business
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15:17 Jan 26, 2006
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meeting. The meeting is open to the
public.
DATES: Monday, February 27, 2006.
ADDRESSES: The meeting will be held in
the conference room at the Helena
Chamber of Commerce, 225 Cruse
Avenue, Helena, MT 59601.
FOR FURTHER INFORMATION CONTACT:
Duane H. Harp, Designated Forest
Official (DFO), District Ranger, Helena
Ranger District, Helena National Forest,
at (406) 449–5490.
SUPPLEMENTARY INFORMATION: Agenda
topics for this meeting include review of
projects proposed for funding and
public comment as authorized under
Title II of Pub. L. 106–393. If the
meeting location is changed, notice will
be posted in local newspapers,
including the Helena Independent
Record.
Dated: January 20, 2006.
Duane H. Harp,
District Ranger.
[FR Doc. E6–1028 Filed 1–26–06; 8:45 am]
BILLING CODE 3410–11–P
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 2006
Rural Housing Service, USDA.
Notice.
AGENCY:
ACTION:
SUMMARY: This is a request for proposals
for loan guarantees under the section
538 Guaranteed Rural Rental Housing
Program (GRRHP) pursuant to 7 CFR
3565.4 for Fiscal Year (FY) 2006 subject
to the availability of funding. FY 2006
funding for the section 538 program is
$99 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 commitment of program dollars
will be made to applicants of selected
responses that have fulfilled the
necessary requirements for obligation, to
the extent an appropriation act provides
funding for GRRHP for FY 2006.
Expenses incurred in developing
applications will be at the applicant’s
risk. 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
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4559
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/
hblist.html#hbw6.
Eligible lenders are invited to submit
responses for the development or
acquisition with rehabilitation of
affordable rental housing to serve rural
America. In addition, this fiscal year,
guarantees will be available for the
revitalization, repair, and transfer cost
of existing direct section 515 housing
(transfer costs are subject to Agency
approval and must be an eligible use of
loan proceeds as listed in 7 CFR
3565.205). In order to be considered,
direct section 515 housing projects must
need repairs and/or undergo
revitalization of a minimum of $6,500
per unit.
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 of Funding Availability
(NOFA), eligible lenders may submit a
complete application concurrently with
the response. However, submitting a
complete application will not have an
effect on the response’s score.
DATES: The RHS will review and score
all responses received through June 16,
2006. 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 2006 until all funds are
expended. Responses received prior to
June 16, 2006, that meet program
criteria, but score less than 25 points or
score 25 points or more but have a
development cost ratio of equal to or
more than 70 percent may be selected
for obligation after June 16, 2006, with
the highest scoring responses receiving
priority as long as funds remain
available. The Agency will continue to
select the highest scoring NOFA
responses received after June 16, 2006,
notwithstanding the score, as long as the
response meets program criteria and
funds remain available. A notice will be
placed in the Federal Register when all
funds are committed for FY 2006.
Eligible lenders mailing 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
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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. The
lender will also send a copy of its NOFA
response (copies of ‘‘Lender
Certification’’ letter and ‘‘Project
Specific Data’’ sheets only; do not
include any application supporting
documentation, i.e., market studies,
plans/specs, etc.) to: C.B. Alonso, Senior
Loan Specialist, Guaranteed Rural
Rental Housing Program, 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.
Rural Development State Offices, their
addresses, telephone numbers, and
person to contact follows: [This
information may also be found at https://
www.rurdev.usda.gov/recd_map.html.]
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. Deborah Davis.
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. Don Irby.
Arkansas State Office, 700 W. Capitol Ave.,
Room 3416, Little Rock, AR 72201–3225.
(501) 301–3250. TDD (501) 301–3063.
Gregory Kemper.
California State Office, 430 G Street, #4169,
Davis, CA 95616–4169. (530) 792–5830.
TDD (530) 792–5848. Stephen Nnodim.
Colorado State Office, 655 Parfet Street,
Room E100, Lakewood, CO 80215. (720)
544–2923. TDD (800) 659–2656. Jamie
Spakow.
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. W. Drew Clendaniel.
Florida & Virgin Islands State Office, 4440
NW. 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.
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Idaho State Office, Suite A1, 9173 West
Barnes Dr., Boise, ID 83709, (208) 378–
5630. TDD (208) 378–5644. Roni Atkins.
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. Ambrose H.
McGuire.
Kansas State Office, 1303 SW. First American
Place, Suite 100, Topeka, KS 66604–4040.
(785) 271–2721. TDD (785) 271–2767. Tim
Rogers.
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. Dale D.
Holmes.
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.
Sumbal.
Minnesota State Office, 375 Jackson Street
Building, Suite 410, St. Paul, MN 55101–
1853. (651) 602–7782. TDD (651) 602–
7830. Jackie Morris.
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, Anita J. Dunning.
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. Byron L. Fischer.
Nevada State Office, 1390 South Curry Street,
Carson City, NV 89703–9910. (775) 887–
1222 (ext. 25). TDD (775) 885–0633.
William Brewer.
New Hampshire State Office, Concord
Center, Suite 218, Box 317, 10 Ferry Street,
Concord, NH 03301–5004. (603) 223–6046.
TDD (603) 229–0536. Robert McDonald.
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.
Walter Taylor.
New York State Office, The Galleries of
Syracuse, 441 S. Salina Street, Suite 357
PO 00000
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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. William
Hobbs.
North Dakota State Office, Federal Building,
Room 208, 220 East Rosser, PO Box 1737,
Bismarck, ND 58502. (701) 530–2049. TDD
(701) 530–2113. Donald L. Warren.
Ohio State Office, Federal Building, Room
507, 200 North High Street, Columbus, OH
43215–2477. (614) 255–2418. TDD (614)
255–2554. Gerald Arnott.
Oklahoma State Office, 100 USDA, Suite 108,
Stillwater, OK 74074–2654. (405) 742–
1070. TDD (405) 742–1007. Anita Kinyon.
Oregon State Office, 101 SW Main, Suite
1410, Portland, OR 97204–3222. (503) 414–
3325. TDD (503) 414–3387. Jillene Davis.
Pennsylvania State Office, One Credit Union
Place, Suite 330, Harrisburg, PA 17110–
2996. (717) 237–2281. TDD (717) 237–
2261. Frank Wetherhold.
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. Pedro Gomez.
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. Don
Harris.
Texas State Office, Federal Building, Suite
102, 101 South Main, Temple, TX 76501.
(254) 742–9758. TDD (254) 742–9712.
Gayle Ledyard.
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. David E.
Brown.
Vermont State Office, City Center, 3rd Floor,
89 Main Street, Montpelier, VT 05602.
(802) 828–6021. TDD (802) 223–6365.
Robert McDonald.
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. Eileen Nowlin.
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) 284–4872. TDD
(304) 284–4836. David Cain.
Wisconsin State Office, 4949 Kirschling
Court, Stevens Point, WI 54481. (715) 345–
7615 (ext. 151). TDD (715) 345–7614. Peter
Kohnen.
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Wyoming State Office, PO Box 11005,
Casper, WY 82602. (307) 233–6715. TDD
(307) 233–6733. Alan Brooks.
C.B.
Alonso, Senior Loan Specialist,
Guaranteed Rural Rental Housing
Program, 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. Email:
cb.alonso@wdc.usda.gov. Telephone:
(202) 720–1624. This number is not tollfree. Hearing or speech-impaired
persons may access that number by
calling the Federal Information Relay
Service toll-free at (800) 877–8339.
Eligibility of Prior Year Selected
Notices of Funding Availability
Responses: NOFA response selections
prior to FY 2005 that did not develop
into a complete application or where
funds were not obligated have been
cancelled. A new NOFA response for
the project may be submitted subject to
the conditions of this NOFA.
FY 2005 NOFA responses that were
selected by the Agency, and a complete
application (including all Federal
environmental documents required by 7
CFR part 1940, subpart G, a Form RD
3565–1, and the $2,500 application fee)
was submitted by the lender within 90
days from the date of notification of
response selection (unless an extension
was granted by the State office), will be
eligible for FY 2006 program dollars and
will compete in the FY 2006 priority
scoring without having to complete a FY
2006 NOFA response.
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FOR FURTHER INFORMATION CONTACT:
General Program Information
Program Purpose: The purpose of the
GRRHP is to increase the supply of
affordable rural rental housing, through
the use of loan guarantees that
encourage partnerships between the
RHS, private lenders, and public
agencies.
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 the
acquisition of existing structures with a
minimum per unit rehabilitation
expenditure requirement in accordance
with 7 CFR 3565.252.
In addition, this fiscal year,
guarantees will be available for the
revitalization, repair and transfer cost of
existing direct section 515 housing
(transfer costs are subject to Agency
approval and must be an eligible use of
loan proceeds as listed in 7 CFR
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3565.205). In order to be considered,
direct section 515 housing projects must
need repairs and/or undergo
revitalization of a minimum of $6,500
per unit.
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 Agency
can guarantee the ‘‘permanent’’ portion
or both the ‘‘construction and
permanent’’ portions of a construction/
permanent loan. The Agency cannot,
however, guarantee only the
‘‘construction’’ portion of a
construction/permanent loan.
The maximum guarantee for a
permanent loan will be 90 percent of the
unpaid principal and interest up to
default and accrued interest 90 calendar
days from the date the liquidation plan
is approved by the Agency, as defined
in 7 CFR 3565.452. Penalties incurred as
a result of default are not covered by the
guarantee. The Agency may provide a
lesser guarantee based upon its
evaluation of the credit quality of the
loan. The Agency liability under any
guarantee will decrease or increase, in
proportion to any increase or decrease
in the amount of the unpaid portion of
the loan, up to the maximum amount
specified in the Loan Note Guarantee.
The maximum guarantee of
construction advances will not at any
time exceed the lesser of 90 percent of
the amount of principal and interest up
to default advanced for eligible uses of
loan proceeds or 90 percent of the
original principal amount and interest
up to default of the loan. Penalties
incurred as a result of default are not
covered by the guarantee. The Agency
may provide a lesser guarantee based
upon its evaluation of the credit quality
of the loan.
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 unless applying for interest
credit. The interest rate must be fixed
over the term of the loan.
Interest Credit: For at least 20 percent
of the loans made during each fiscal
year, the Agency will provide assistance
in the form of interest credit, to the
extent necessary to reduce the agreedupon rate of interest to the Long Term
Monthly Applicable Federal Rate (AFR)
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as such term is used in section
42(I)(2)(D) of the Internal Revenue Code
of 1986, 26 U.S.C. 7805, Sec. 1.42–1T.
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 16,
2006, 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 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. 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 2006.
Program Fees for FY 2006: As a
condition of receiving a loan guarantee,
the Agency will charge the following
guarantee fees to the lender.
(1) Initial guarantee fee. The Agency
will charge an initial guarantee fee equal
to one percent of the guarantee amount.
For purposes of calculating this fee, the
guarantee amount is the product of the
percentage of the guarantee times the
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initial principal amount of the
guaranteed loan.
(2) Annual guarantee fee. An annual
guarantee fee of at least 50 basis points
(one-half percent) of the outstanding
principal amount of the loan as of
December 31 will be charged each year
or portion of a year that the guarantee
is in effect.
(3) There is a non-refundable
application fee of $2,500 when the
application is submitted.
(4) There is a flat fee of $500 when a
lender requests RHS to extend the term
of a guarantee commitment.
(5) There is a flat fee of $500 when a
lender requests RHS to reopen an
application when a commitment has
expired.
(6) 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.
(7) There is no lender application fee
for lender approval in FY 2006.
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
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 toptier 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 a current
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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 who request
GRRHP approval must meet the
standards in the 7 CFR 3565.102 and
103. 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, MultiFamily 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 multifamily 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
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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://www.rurdev.usda.gov/regs/
hblist.html#hbw6;
(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 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.
Additional Construction Lender
Requirements
The Agency can guarantee the
‘‘permanent’’ portion or both the
‘‘construction and permanent’’ portions
of a construction/permanent loan. The
Agency will not, however, guarantee
only the ‘‘construction’’ portion of a
construction/permanent loan.
A lender making a construction loan
must demonstrate an ability to originate
and service construction loans, in
addition to meeting the other
requirements of 7 CFR part 3565,
subpart C. A lender who originates and
services construction/permanent loans
must agree to manage the construction
and draw activities in the manner
described in Chapter 5 of HB–1–3565.
Lenders must meet either the basic or
the demonstrated eligibility test in
paragraphs 2.4 and 2.5 of HB–1–3565
and the lender approval requirements
set forth in paragraph 2.6 of HB–1–3565.
Lenders must clearly identify policies
and processes for multifamily
construction lending. Lenders must also
provide a summary of their multifamily
construction lending activity in the
same form as specified in paragraph 2.5
of HB–1–3565. The Agency may, at its
discretion, consider other types of
construction loans—such as those for
commercial development—as a
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Federal Register / Vol. 71, No. 18 / Friday, January 27, 2006 / Notices
substitute for multifamily construction
experience.
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 NOFA
Content of NOFA 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:
4563
(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.
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.
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 Housing Development Experience
Attach relevant information.
New Construction, Acquisition With Rehabilitation, or the Revitalization, Repair, and Transfer Cost of Existing Direct Section 515
Housing
State whether the project is new construction or acquisition with rehabilitation. Transfer costs are subject to Agency approval and
must be an eligible use of loan proceeds listed in 7 CFR 3565.205.
Project Location Town or City
Town or city in which the project is located.
Project County
rmajette on PROD1PC67 with NOTICES
Lender Name
County in which the project is located.
Project State
State in which the project is located.
Project Zip Code
Insert zip code.
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Federal Register / Vol. 71, No. 18 / Friday, January 27, 2006 / Notices
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 Development Schedule
Provide as an attachment.
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 Applicable Federal Rate
Lenders seeking interest credit must provide the maximum basis
points above the Long Term Monthly AFR that will be used to
calculate the interest rate. Priority points will only be given for
basis points equal to or less than 250 above the Long Term
Monthly AFR.
If Above Is Yes, Should Proposal Be Considered Under Non-Interest
Credit Selection If Scoring Does Not Meet the Minimum Point
Threshold of 55 Points for an Interest Credit Award?
If Yes, proposal must show financial feasibility for 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.
Loan to Total Development Cost
Guaranteed loan divided by the total development costs of project.
Debt Coverage Ratio
rmajette on PROD1PC67 with NOTICES
Project Congressional District
Net Operating Income divided by debt service payments.
Percentage of Guarantee
Percentage guarantee requested.
Collateral
Attach relevant information.
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4565
Yes or No. Is the project in 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 Requested? Are Advances
Being Requested?
State yes or no. The Agency can guarantee the ‘‘permanent’’ portion
or both the ‘‘construction and permanent’’ portions of a construction/permanent loan. The Agency will not, however, guarantee
only the ‘‘construction’’ portion of a construction/permanent loan.
Loan Term
rmajette on PROD1PC67 with NOTICES
Empowerment Zone (EZ) or Enterprise Community (EC), Colonia or
Tribal Lands
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 2006 NOFA
responses will be scored based on the
criteria set forth below to establish their
priority for obligation of funds. Per 7
CFR 3565.5 (b), priority will be given to
projects: in smaller rural communities,
in the most needy communities having
the highest percentage of leveraging,
having the lowest interest rate, having
the highest ratio of 3–5 bedroom units
to total units, or located in
Empowerment Zones/Enterprise
Communities or on tribal lands. In
addition, the Agency may, at its sole
discretion, set aside assistance for or
rank projects that meet important
program goals.
In order to meet program goals, the
Agency will award additional points to
Fiscal Year 2006 NOFA responses for
the revitalization, repair, and transfer
cost of existing direct Section 515
housing.
Prior to June 16, 2006, 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-firstserve 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 16, 2006. Each
month after June 16, 2006, the Agency
will select the highest scoring proposals,
in light of the remaining funding, until
all funds are expended. A notice will be
placed in the Federal Register when all
funds are committed for FY 2006.
Subject to available funding, all
projects scoring 55 points or more on
the seven priority criteria below, and
that request and demonstrate a need for
an interest credit subsidy, will receive
interest credit awards.
The seven priority criteria for projects
are listed below.
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Priority 1—Projects located in eligible
rural communities with the lowest
populations will receive the highest
points.
Population size
Points
0–5,000 people .................................
5,001–10,000 people ........................
10,001–15,000 people ......................
15,001–20,000 people ......................
15
10
5
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)
Ratio of 3–5 bedroom units to total
units
More than 50% .................................
21%–50% .........................................
Less than 21%–more than 0% .........
Points
Less than $35,000 ............................
$35,000–less than $45,000 ..............
$45,000–less than $55,000 ..............
$55,000–less than $65,000 ..............
$65,000 or more ...............................
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—The RHS will award
points to projects with the highest ratio
of 3–5 bedroom units to total units as
follows:
20
15
10
5
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:
Points
6
5
1
Priority 6—RHS will award points for
basis points above the long term
monthly AFR used to calculate the
interest rate. The score for basis points
is as follows:
Basis points
More than 250 basis points ..............
200 to 250 basis points, inclusive ....
100 to 199 basis points, inclusive ....
0 to 99 basis points, inclusive ..........
Points
¥20
10
15
20
Priority 7—NOFA responses for the
revitalization, repair, and transfer cost
of existing direct section 515 housing
(transfer costs are subject to Agency
approval and must be an eligible use of
Loan to total development cost ratio
Points loan proceeds listed in 7 CFR 3565.205)
(percentage %)
will receive an additional 20 points.
Notifications: Responses will be
90–100 ..............................................
0
Less than 90–70 ...............................
15 reviewed for completeness and
Less than 70–50 ...............................
20 eligibility. The RHS will notify those
Less than 50 .....................................
30 lenders whose responses are selected
via letter. The RHS will request lenders
Priority 4—The development of
without GRRHP lender approval to
projects on Tribal Lands, or in an
apply for GRRHP lender approval
Empowerment Zone or Enterprise
within 30 days upon receipt of
Community will receive points. The
notification of selection. For
RHS will attribute 20 points to projects
information regarding GRRHP lender
that are developed in any of the
approval, please refer to the section
locations described in this priority. The entitled ‘‘SUBMISSION OF
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DOCUMENTATION FOR GRRHP
LENDER APPROVAL’’ in this NOFA.
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
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.
In response to the NOFA, lenders must
submit a NOFA response to the office
address identified in the NOFA for the
scoring and ranking of a proposed
GRRHP project. The lender must
provide the requested information
concerning the project, to establish the
purpose of the proposed project, its
location, and how it meets the
established priorities for funding. The
Agency will determine the highest
ranked responses based on priority
criteria and a threshold score.
NOFA responses will at least include
the following [but the Agency, at its sole
discretion, may request additional
information]:
(1) The Project
(a) A brief description of the proposed
location of the project, including town,
county, state, and congressional district.
(b) A description of the property and
improvements, including lot size,
number of units, building type, type of
construction, etc., including preliminary
drawings, if available.
(c) The proposed development
schedule.
(d) Total project development cost.
(e) The proposed rent structure and
area median income (HUD published
area median incomes can be found
online at https://www.huduser.org).
(f) Evidence of site control by the
proposed borrower or a purchase
option.
(g) Description of any environmental
issues that may affect the project.
(h) Amount of loan to be guaranteed.
(i) Type of project (e.g. elderly or
family).
rmajette on PROD1PC67 with NOTICES
(2) The Proposed Financing
(a) Proposed loan amount and the
proposed borrower’s equity.
(b) Proposed use of interest credit—If
the lender proposes to use interest
credit, this section should include the
maximum basis points the lender will
charge the borrower for the project. The
interest rate may not be lower than the
published Long Term Monthly AFR at
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Jkt 208001
the closing of the lender’s loan.
Selection and scoring criteria that the
project must meet to receive interest
credit will be published in the NOFA.
(c) Estimated development budget
(total and cost/unit) and the proposed
sources and uses of funds. This
information should include all proposed
financing sources—the amount, type,
rates and terms of loans, tax credits, or
grant funds. Letters of application and
commitment letters should be included,
if available.
(d) Estimated loan-to-development
cost ratio for the guaranteed loan.
(e) Proposed Agency guarantee
percentage for guaranteed loan (under
no condition can the percentage exceed
90 percent of the loan amount).
(f) Collateral—all security, in addition
to the real property, proposed to secure
the loan.
(3) The Proposed Borrower
(a) The name of the borrower and the
type of ownership entity. List the
general partners if a limited partnership,
officers if a corporation or members of
an Limited Liability Corporation.
(b) Borrower’s contact name, mailing
address, phone and fax numbers, and email address.
(c) Evidence that the borrower or
principals of the ownership are not
barred from participating in Federal
housing programs and are not
delinquent on any Federal debt.
(d) Borrower’s unaudited or audited
financial statements.
(e) Statement of borrower’s housing
development experience.
(4) Lender Eligibility and Approval
Status
Evidence that the lender is either an
approved lender for the purposes of the
GRRHP or that the lender is eligible to
apply for approved lender status. The
lender’s application for approved lender
status can be submitted with the NOFA
response but must be submitted to the
National Office within 45 calendar days
of the lender’s receipt of the ‘‘notice to
proceed with application processing’’
letter.
(5) Competitive Criteria
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 received by
the appropriate State Office 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: January 18, 2006.
David J. Villano,
Acting Administrator, Rural Housing Service.
[FR Doc. E6–1054 Filed 1–26–06; 8:45 am]
BILLING CODE 3410–XV–P
COMMITTEE FOR PURCHASE FROM
PEOPLE WHO ARE BLIND OR
SEVERELY DISABLED
Procurement List; Proposed Additions
and Deletion
(6) Lender Certification
Committee for Purchase from
People Who Are Blind or Severely
Disabled.
ACTION: Proposed additions to and
deletions from Procurement List.
A commitment letter signed by the
lender, on the lender’s letterhead,
indicating that the lender will make a
loan to the borrower for the proposed
project, under specified terms and
conditions subject only to the issuance
of a guarantee by the Agency.
SUMMARY: The Committee is proposing
to add to the Procurement List products
and services to be furnished by
nonprofit agencies employing persons
who are blind or have other severe
disabilities, and to delete a product
previously furnished by such agencies.
AGENCY:
Information that shows how the
proposal is responsive to the selection
criteria specified in the NOFA.
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]]>Agencies
[Federal Register Volume 71, Number 18 (Friday, January 27, 2006)]
[Notices]
[Pages 4559-4566]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-1054]
-----------------------------------------------------------------------
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 2006
AGENCY: Rural Housing Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This is a request for proposals for loan guarantees under the
section 538 Guaranteed Rural Rental Housing Program (GRRHP) pursuant to
7 CFR 3565.4 for Fiscal Year (FY) 2006 subject to the availability of
funding. FY 2006 funding for the section 538 program is $99 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 commitment of program dollars will be made to
applicants of selected responses that have fulfilled the necessary
requirements for obligation, to the extent an appropriation act
provides funding for GRRHP for FY 2006. Expenses incurred in developing
applications will be at the applicant's risk. 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/hblist.html#hbw6.
Eligible lenders are invited to submit responses for the
development or acquisition with rehabilitation of affordable rental
housing to serve rural America. In addition, this fiscal year,
guarantees will be available for the revitalization, repair, and
transfer cost of existing direct section 515 housing (transfer costs
are subject to Agency approval and must be an eligible use of loan
proceeds as listed in 7 CFR 3565.205). In order to be considered,
direct section 515 housing projects must need repairs and/or undergo
revitalization of a minimum of $6,500 per unit.
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 of Funding Availability (NOFA),
eligible lenders may submit a complete application concurrently with
the response. However, submitting a complete application will not have
an effect on the response's score.
DATES: The RHS will review and score all responses received through
June 16, 2006. 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 2006 until all funds are
expended. Responses received prior to June 16, 2006, that meet program
criteria, but score less than 25 points or score 25 points or more but
have a development cost ratio of equal to or more than 70 percent may
be selected for obligation after June 16, 2006, with the highest
scoring responses receiving priority as long as funds remain available.
The Agency will continue to select the highest scoring NOFA responses
received after June 16, 2006, notwithstanding the score, as long as the
response meets program criteria and funds remain available. A notice
will be placed in the Federal Register when all funds are committed for
FY 2006.
Eligible lenders mailing 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
[[Page 4560]]
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. The lender will also send a copy of its NOFA response
(copies of ``Lender Certification'' letter and ``Project Specific
Data'' sheets only; do not include any application supporting
documentation, i.e., market studies, plans/specs, etc.) to: C.B.
Alonso, Senior Loan Specialist, Guaranteed Rural Rental Housing
Program, 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.
Rural Development State Offices, their addresses, telephone
numbers, and person to contact follows: [This information may also be
found at https://www.rurdev.usda.gov/recd_map.html.]
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. Deborah Davis.
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. Don Irby.
Arkansas State Office, 700 W. Capitol Ave., Room 3416, Little Rock,
AR 72201-3225. (501) 301-3250. TDD (501) 301-3063. Gregory Kemper.
California State Office, 430 G Street, 4169, Davis, CA
95616-4169. (530) 792-5830. TDD (530) 792-5848. Stephen Nnodim.
Colorado State Office, 655 Parfet Street, Room E100, Lakewood, CO
80215. (720) 544-2923. TDD (800) 659-2656. Jamie Spakow.
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.
W. Drew Clendaniel.
Florida & Virgin Islands State Office, 4440 NW. 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. Roni Atkins.
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. Ambrose H. McGuire.
Kansas State Office, 1303 SW. First American Place, Suite 100,
Topeka, KS 66604-4040. (785) 271-2721. TDD (785) 271-2767. Tim
Rogers.
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. Dale D. Holmes.
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. Sumbal.
Minnesota State Office, 375 Jackson Street Building, Suite 410, St.
Paul, MN 55101-1853. (651) 602-7782. TDD (651) 602-7830. Jackie
Morris.
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,
Anita J. Dunning.
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. Byron
L. Fischer.
Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-
9910. (775) 887-1222 (ext. 25). TDD (775) 885-0633. William Brewer.
New Hampshire State Office, Concord Center, Suite 218, Box 317, 10
Ferry Street, Concord, NH 03301-5004. (603) 223-6046. TDD (603) 229-
0536. Robert McDonald.
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. Walter
Taylor.
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. William Hobbs.
North Dakota State Office, Federal Building, Room 208, 220 East
Rosser, PO Box 1737, Bismarck, ND 58502. (701) 530-2049. TDD (701)
530-2113. Donald L. Warren.
Ohio State Office, Federal Building, Room 507, 200 North High
Street, Columbus, OH 43215-2477. (614) 255-2418. TDD (614) 255-2554.
Gerald Arnott.
Oklahoma State Office, 100 USDA, Suite 108, Stillwater, OK 74074-
2654. (405) 742-1070. TDD (405) 742-1007. Anita Kinyon.
Oregon State Office, 101 SW Main, Suite 1410, Portland, OR 97204-
3222. (503) 414-3325. TDD (503) 414-3387. Jillene Davis.
Pennsylvania State Office, One Credit Union Place, Suite 330,
Harrisburg, PA 17110-2996. (717) 237-2281. TDD (717) 237-2261. Frank
Wetherhold.
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. Pedro Gomez.
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. Don Harris.
Texas State Office, Federal Building, Suite 102, 101 South Main,
Temple, TX 76501. (254) 742-9758. TDD (254) 742-9712. Gayle Ledyard.
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. David E. Brown.
Vermont State Office, City Center, 3rd Floor, 89 Main Street,
Montpelier, VT 05602. (802) 828-6021. TDD (802) 223-6365. Robert
McDonald.
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. Eileen
Nowlin.
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) 284-4872. TDD (304) 284-4836.
David Cain.
Wisconsin State Office, 4949 Kirschling Court, Stevens Point, WI
54481. (715) 345-7615 (ext. 151). TDD (715) 345-7614. Peter Kohnen.
[[Page 4561]]
Wyoming State Office, PO Box 11005, Casper, WY 82602. (307) 233-
6715. TDD (307) 233-6733. Alan Brooks.
FOR FURTHER INFORMATION CONTACT: C.B. Alonso, Senior Loan Specialist,
Guaranteed Rural Rental Housing Program, 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. Email: cb.alonso@wdc.usda.gov. Telephone:
(202) 720-1624. This number is not toll-free. Hearing or speech-
impaired persons may access that number by calling the Federal
Information Relay Service toll-free at (800) 877-8339.
Eligibility of Prior Year Selected Notices of Funding Availability
Responses: NOFA response selections prior to FY 2005 that did not
develop into a complete application or where funds were not obligated
have been cancelled. A new NOFA response for the project may be
submitted subject to the conditions of this NOFA.
FY 2005 NOFA responses that were selected by the Agency, and a
complete application (including all Federal environmental documents
required by 7 CFR part 1940, subpart G, a Form RD 3565-1, and the
$2,500 application fee) was submitted by the lender within 90 days from
the date of notification of response selection (unless an extension was
granted by the State office), will be eligible for FY 2006 program
dollars and will compete in the FY 2006 priority scoring without having
to complete a FY 2006 NOFA response.
General Program Information
Program Purpose: The purpose of the GRRHP is to increase the supply
of affordable rural rental housing, through the use of loan guarantees
that encourage partnerships between the RHS, private lenders, and
public agencies.
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 the acquisition of
existing structures with a minimum per unit rehabilitation expenditure
requirement in accordance with 7 CFR 3565.252.
In addition, this fiscal year, guarantees will be available for the
revitalization, repair and transfer cost of existing direct section 515
housing (transfer costs are subject to Agency approval and must be an
eligible use of loan proceeds as listed in 7 CFR 3565.205). In order to
be considered, direct section 515 housing projects must need repairs
and/or undergo revitalization of a minimum of $6,500 per unit.
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 Agency can guarantee the ``permanent''
portion or both the ``construction and permanent'' portions of a
construction/permanent loan. The Agency cannot, however, guarantee only
the ``construction'' portion of a construction/permanent loan.
The maximum guarantee for a permanent loan will be 90 percent of
the unpaid principal and interest up to default and accrued interest 90
calendar days from the date the liquidation plan is approved by the
Agency, as defined in 7 CFR 3565.452. Penalties incurred as a result of
default are not covered by the guarantee. The Agency may provide a
lesser guarantee based upon its evaluation of the credit quality of the
loan. The Agency liability under any guarantee will decrease or
increase, in proportion to any increase or decrease in the amount of
the unpaid portion of the loan, up to the maximum amount specified in
the Loan Note Guarantee.
The maximum guarantee of construction advances will not at any time
exceed the lesser of 90 percent of the amount of principal and interest
up to default advanced for eligible uses of loan proceeds or 90 percent
of the original principal amount and interest up to default of the
loan. Penalties incurred as a result of default are not covered by the
guarantee. The Agency may provide a lesser guarantee based upon its
evaluation of the credit quality of the loan.
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 unless applying for interest credit.
The interest rate must be fixed over the term of the loan.
Interest Credit: For at least 20 percent of the loans made during
each fiscal year, the Agency will provide assistance in the form of
interest credit, to the extent necessary to reduce the agreed-upon rate
of interest to the Long Term Monthly Applicable Federal Rate (AFR) as
such term is used in section 42(I)(2)(D) of the Internal Revenue Code
of 1986, 26 U.S.C. 7805, Sec. 1.42-1T. 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
16, 2006, 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 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. 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 2006.
Program Fees for FY 2006: As a condition of receiving a loan
guarantee, the Agency will charge the following guarantee fees to the
lender.
(1) Initial guarantee fee. The Agency will charge an initial
guarantee fee equal to one percent of the guarantee amount. For
purposes of calculating this fee, the guarantee amount is the product
of the percentage of the guarantee times the
[[Page 4562]]
initial principal amount of the guaranteed loan.
(2) Annual guarantee fee. An annual guarantee fee of at least 50
basis points (one-half percent) of the outstanding principal amount of
the loan as of December 31 will be charged each year or portion of a
year that the guarantee is in effect.
(3) There is a non-refundable application fee of $2,500 when the
application is submitted.
(4) There is a flat fee of $500 when a lender requests RHS to
extend the term of a guarantee commitment.
(5) There is a flat fee of $500 when a lender requests RHS to
reopen an application when a commitment has expired.
(6) 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.
(7) There is no lender application fee for lender approval in FY
2006.
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 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 a current
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 who
request GRRHP approval must meet the standards in the 7 CFR 3565.102
and 103. 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://www.rurdev.usda.gov/regs/hblist.html#hbw6;
(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 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.
Additional Construction Lender Requirements
The Agency can guarantee the ``permanent'' portion or both the
``construction and permanent'' portions of a construction/permanent
loan. The Agency will not, however, guarantee only the ``construction''
portion of a construction/permanent loan.
A lender making a construction loan must demonstrate an ability to
originate and service construction loans, in addition to meeting the
other requirements of 7 CFR part 3565, subpart C. A lender who
originates and services construction/permanent loans must agree to
manage the construction and draw activities in the manner described in
Chapter 5 of HB-1-3565. Lenders must meet either the basic or the
demonstrated eligibility test in paragraphs 2.4 and 2.5 of HB-1-3565
and the lender approval requirements set forth in paragraph 2.6 of HB-
1-3565. Lenders must clearly identify policies and processes for
multifamily construction lending. Lenders must also provide a summary
of their multifamily construction lending activity in the same form as
specified in paragraph 2.5 of HB-1-3565. The Agency may, at its
discretion, consider other types of construction loans--such as those
for commercial development--as a
[[Page 4563]]
substitute for multifamily construction experience.
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 NOFA
Content of NOFA 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.
------------------------------------
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 Insert name and title.
Borrower
------------------------------------
Borrower Information and Statement Attach relevant information.
of Housing Development Experience
------------------------------------
New Construction, Acquisition With State whether the project is new
Rehabilitation, or the construction or acquisition with
Revitalization, Repair, and rehabilitation. Transfer costs are
Transfer Cost of Existing Direct subject to Agency approval and
Section 515 Housing must be an eligible use of loan
proceeds listed in 7 CFR 3565.205.
------------------------------------
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.
------------------------------------
[[Page 4564]]
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 Insert percentage of 3-5 bedroom
units 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 Attach relevant information.
Issues
------------------------------------
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 Lenders seeking interest credit
Monthly Applicable Federal Rate must provide the maximum basis
points above the Long Term Monthly
AFR that will be used to calculate
the interest rate. Priority points
will only be given for basis
points equal to or less than 250
above the Long Term Monthly AFR.
------------------------------------
If Above Is Yes, Should Proposal Be If Yes, proposal must show
Considered Under Non-Interest financial feasibility for Non-IC
Credit Selection If Scoring Does consideration.
Not Meet the Minimum Point
Threshold of 55 Points for an
Interest Credit Award?
------------------------------------
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.
------------------------------------
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.
------------------------------------
[[Page 4565]]
Empowerment Zone (EZ) or Enterprise Yes or No. Is the project in a
Community (EC), Colonia or Tribal recognized EZ or EC, Colonia or on
Lands an Indian Reservation?
------------------------------------
Population Must be within the 20,000
population limit set for the
program.
------------------------------------
Is a Guarantee for Construction State yes or no. The Agency can
Being Requested? Are Advances guarantee the ``permanent''
Being Requested? portion or both the ``construction
and permanent'' portions of a
construction/permanent loan. The
Agency will not, however,
guarantee only the
``construction'' portion of a
construction/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 2006
NOFA responses will be scored based on the criteria set forth below to
establish their priority for obligation of funds. Per 7 CFR 3565.5 (b),
priority will be given to projects: in smaller rural communities, in
the most needy communities having the highest percentage of leveraging,
having the lowest interest rate, having the highest ratio of 3-5
bedroom units to total units, or located in Empowerment Zones/
Enterprise Communities or on tribal lands. In addition, the Agency may,
at its sole discretion, set aside assistance for or rank projects that
meet important program goals.
In order to meet program goals, the Agency will award additional
points to Fiscal Year 2006 NOFA responses for the revitalization,
repair, and transfer cost of existing direct Section 515 housing.
Prior to June 16, 2006, 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
16, 2006. Each month after June 16, 2006, the Agency will select the
highest scoring proposals, in light of the remaining funding, until all
funds are expended. A notice will be placed in the Federal Register
when all funds are committed for FY 2006.
Subject to available funding, all projects scoring 55 points or
more on the seven priority criteria below, and that request and
demonstrate a need for an interest credit subsidy, will receive
interest credit awards.
The seven priority criteria for projects 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--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
------------------------------------------------------------------------
Priority 6--RHS will award points for basis points above the long
term monthly AFR used to calculate the interest rate. 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 7--NOFA responses for the revitalization, repair, and
transfer cost of existing direct section 515 housing (transfer costs
are subject to Agency approval and must be an eligible use of loan
proceeds listed in 7 CFR 3565.205) will receive an additional 20
points.
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
[[Page 4566]]
DOCUMENTATION FOR GRRHP LENDER APPROVAL'' in this NOFA.
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 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. In response to the NOFA, lenders
must submit a NOFA response to the office address identified in the
NOFA for the scoring and ranking of a proposed GRRHP project. The
lender must provide the requested information concerning the project,
to establish the purpose of the proposed project, its location, and how
it meets the established priorities for funding. The Agency will
determine the highest ranked responses based on priority criteria and a
threshold score.
NOFA responses will at least include the following [but the Agency,
at its sole discretion, may request additional information]:
(1) The Project
(a) A brief description of the proposed location of the project,
including town, county, state, and congressional district.
(b) A description of the property and improvements, including lot
size, number of units, building type, type of construction, etc.,
including preliminary drawings, if available.
(c) The proposed development schedule.
(d) Total project development cost.
(e) The proposed rent structure and area median income (HUD
published area median incomes can be found online at https://
www.huduser.org).
(f) Evidence of site control by the proposed borrower or a purchase
option.
(g) Description of any environmental issues that may affect the
project.
(h) Amount of loan to be guaranteed.
(i) Type of project (e.g. elderly or family).
(2) The Proposed Financing
(a) Proposed loan amount and the proposed borrower's equity.
(b) Proposed use of interest credit--If the lender proposes to use
interest credit, this section should include the maximum basis points
the lender will charge the borrower for the project. The interest rate
may not be lower than the published Long Term Monthly AFR at the
closing of the lender's loan. Selection and scoring criteria that the
project must meet to receive interest credit will be published in the
NOFA.
(c) Estimated development budget (total and cost/unit) and the
proposed sources and uses of funds. This information should include all
proposed financing sources--the amount, type, rates and terms of loans,
tax credits, or grant funds. Letters of application and commitment
letters should be included, if available.
(d) Estimated loan-to-development cost ratio for the guaranteed
loan.
(e) Proposed Agency guarantee percentage for guaranteed loan (under
no condition can the percentage exceed 90 percent of the loan amount).
(f) Collateral--all security, in addition to the real property,
proposed to secure the loan.
(3) The Proposed Borrower
(a) The name of the borrower and the type of ownership entity. List
the general partners if a limited partnership, officers if a
corporation or members of an Limited Liability Corporation.
(b) Borrower's contact name, mailing address, phone and fax
numbers, and e-mail address.
(c) Evidence that the borrower or principals of the ownership are
not barred from participating in Federal housing programs and are not
delinquent on any Federal debt.
(d) Borrower's unaudited or audited financial statements.
(e) Statement of borrower's housing development experience.
(4) Lender Eligibility and Approval Status
Evidence that the lender is either an approved lender for the
purposes of the GRRHP or that the lender is eligible to apply for
approved lender status. The lender's application for approved lender
status can be submitted with the NOFA response but must be submitted to
the National Office within 45 calendar days of the lender's receipt of
the ``notice to proceed with application processing'' letter.
(5) Competitive Criteria
Information that shows how the proposal is responsive to the
selection criteria specified in the NOFA.
(6) Lender Certification
A commitment letter signed by the lender, on the lender's
letterhead, indicating that the lender will make a loan to the borrower
for the proposed project, under specified terms and conditions subject
only to the issuance of a guarantee by the Agency.
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 received by the
appropriate State Office 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: January 18, 2006.
David J. Villano,
Acting Administrator, Rural Housing Service.
[FR Doc. E6-1054 Filed 1-26-06; 8:45 am]
BILLING CODE 3410-XV-P
