Notice of Availability of Funds; Multi-Family Housing, Single Family Housing, 14056-14071 [06-2448]
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14056
Federal Register / Vol. 71, No. 53 / Monday, March 20, 2006 / Notices
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Availability of Funds; MultiFamily Housing, Single Family
Housing
Rural Housing Service, USDA.
ACTION: Notice.
AGENCY:
SUMMARY: The Rural Housing Service
(RHS) announces the availability of
housing funds for fiscal year 2006 (FY
2006). This action is taken to comply
with 42 U.S.C. 1490p, which requires
that RHS publish in the Federal
Register notice of the availability of any
housing assistance.
DATES: Effective March 20, 2006.
FOR FURTHER INFORMATION CONTACT: For
information regarding this notice
contact Lou Paulson, Management
Analyst, Single Family Housing Direct
Loan Division, telephone 202–720–
1478, for single family housing (SFH)
issues and Tammy S. Daniels, Loan
Specialist, Multi-Family Housing
Processing Division, telephone 202–
720–0021, for multi-family housing
(MFH) issues, U.S. Department of
Agriculture, 1400 Independence Ave.,
SW., Washington, DC, 20250. (The
telephone numbers listed are not toll
free numbers). For information on
applying for assistance, visit our
Internet Web site at https://
offices.usda.gov and select your State or
check the blue pages in your local
telephone directory under ‘‘Rural
Development’’ for the office serving
your area. Near the end of this Notice
is a listing of Rural Development State
Directors.
SUPPLEMENTARY INFORMATION:
Programs Affected
The following programs are subject to
the provisions of Executive Order 12372
that requires intergovernmental
consultation with State and local
officials. These programs or activities
are listed in the Catalog of Federal
Domestic Assistance under Nos.
10.405 Farm Labor Housing (LH)
Loans and Grants
10.410 Very Low to Moderate Income
Housing Loans
10.411 Rural Housing Site Loans and
Self-Help Housing Land Development
Loans
10.415 Rural Rental Housing Loans
10.417 Very Low Income Housing
Repair Loans and Grants
10.420 Rural Self-Help Housing
Technical Assistance
10.427 Rural Rental Assistance
Payments
10.433 Rural Housing Preservation
Grants
10.442 Housing Application Packaging
Grants
Discussion of Notice
Part 1940, subpart L of 7 CFR contains
the ‘‘Methodology and Formulas for
Allocation of Loan and Grant Program
Funds.’’ To apply for assistance under
these programs or for more information,
contact the Rural Development Office
for your area.
Multi-Family Housing (MFH)
I. General
A. This provides guidance on MFH
funding for the Rural Rental Housing
program (RRH) for FY 2006. Allocation
computations have been performed in
accordance with 7 CFR 1940.575 and
1940.578. For FY 2006, State Directors,
under the Rural Housing Assistance
Grants (RHAG), will have the flexibility
to transfer their initial allocations of
budget authority between the Single
Family Housing (SFH) Section 504
Rural Housing Grants and Section 533
Housing Preservation Grant (HPG)
programs.
B. MFH loan and grant levels for FY
2006 are as follows:
MFH Loan Programs Credit Sales ..............................................................................................................................................
Section 514 Farm Labor Housing (LH) loans * .......................................................................................................................
Section 515 Rural Rental Housing (RRH) loans .....................................................................................................................
Section 521 Rental Assistance (RA) and 502(c)(5)(C) Advance ............................................................................................
Section 516 LH grants ..............................................................................................................................................................
Sections 525 Technical and Supervisory Assistance grants (TSA) and 509 Housing Application Packaging grants
(HAPG) (Shared between single and multi-family housing) ................................................................................................
Section 533 Housing Preservation grants (HPG) * .................................................................................................................
Section 538 Guaranteed Rural Rental Housing Program .......................................................................................................
Preservation Revolving Loan Fund Demonstration Program ...................................................................................................
Section 515 Multi-Family Housing Preservation and Revitalization Restructuring Demonstration ..................................
Rural Housing Voucher Program ...............................................................................................................................................
Housing Demonstration Program for Mississippi Band of Choctaw Indians .........................................................................
Natural disaster 2003/2004 hurricane funds (Section 516 LH grants) ....................................................................................
* Includes Carryover Funds.
II. Funds Not Allocated to States
C. Multifamily Revitalization Initiative
Demonstration Program
A. Credit Sales Authority
For FY 2006, $1,485,000 will be set
aside for credit sales to program and
nonprogram buyers. Credit sale funding
will not be allocated by State.
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B. Section 538 Guaranteed Rural Rental
Housing Program
Guaranteed loan funds will be made
available under a Notice of Funding
Availability (NOFA) being published in
this Federal Register. Additional
guidance is provided in the NOFA.
The Multifamily Revitalization
Initiative Demonstration Program is
designed to preserve and revitalize
Section 515 multifamily rental housing
properties. The Program is designed to
utilize several tools to restructure debt
and financing of an aging portfolio of
rental properties. The objective is to
ensure that properties have sufficient
resources to continue providing safe and
affordable housing for low-income rural
residents.
D. Rural Housing Voucher Program
The Rural Housing Voucher Program,
authorized under Section 542 of the
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$1,485,000
$38,116,887
$99,000,000
$638,650,980
$13,860,000
$990,000
$10,497,716
$99,000,000
$6,415,183
$8,910,000
$15,840,000
$990,000
$880,519
Housing Act of 1949, is designed to
provide tenant protections in properties
that prepay their mortgages after
September 30, 2005. These Vouchers are
portable and will enable tenants to
continue to access affordable housing
without benefit of the traditional Rental
Assistance Program.
III. Farm Labor Housing (LH) Loans
and Grants
The Administrator has the authority
to transfer the allocation of budget
authority between the two programs.
Upon NOFA closing the Administrator
will evaluate the responses and
determine proper distribution of funds
between loans and grants.
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A. Section 514 Farm LH Loans
1. These loans are funded in
accordance with 7 CFR 1940.579(a).
FY 2006 Appropriation ..............................................................................................................................................................
Available for Off-Farm Loans ....................................................................................................................................................
Available for On-Farm Loans ....................................................................................................................................................
National Office Reserve ..............................................................................................................................................................
2. Off-farm loan funds will be made
available under a NOFA being
published in this Federal Register.
Additional guidance is provided in the
NOFA.
B. Section 516 Farm LH Grants
1. Grants are funded in accordance
with 7 CFR 1940.579(b). Unobligated
prior year balances and cancellations
will be added to the amount shown.
FY 2006 Appropriation ..............................................................................................................................................................
Available for LH Grants for Off-Farm .......................................................................................................................................
National Office Reserve ..............................................................................................................................................................
2. Labor Housing grant funds for OffFarm will be made available under a
NOFA being published in this Federal
Register. Additional guidance is
provided in the NOFA.
C. Labor Housing Rental Assistance
(RA) will be held in the National Office
for use with LH loan and grant
applications. RA is only available with
am LH loan of at least 5 percent of the
$38,116,887
$31,937,082
$2,000,000
$4,179,805
$13,860,000
$10,490,040
$3,369,960
total development cost. Projects without
a LH loan cannot receive RA.
IV. Section 515 RRH Loan Funds
FY 2006 Section 515 Rural Rental Housing allocation (Total) ................................................................................................
New Construction funds and set-asides ....................................................................................................................................
New construction loans ......................................................................................................................................................
Set-aside for nonprofits .......................................................................................................................................................
Set-aside for underserved counties and colonias ..............................................................................................................
Earmark for EZ, EC, or REAP Zones ..................................................................................................................................
State RA designated reserve ...............................................................................................................................................
Rehab and repair funds and equity ...........................................................................................................................................
Rehab and repair loans .......................................................................................................................................................
Designated equity loan reserve ...........................................................................................................................................
General Reserve ..........................................................................................................................................................................
$99,000,000
$25,740,000
$8,562,510
$8,910,000
$4,950,000
$2,327,490
$990,000
$53,460,000
$48,510,000
$4,950,000
$19,800,000
A. New Construction Loan Funds
3. EZ, EC or REAP Zone Earmark
E. Designated Reserve for Equity Loans
New construction loan funds will be
made available using a national NOFA
being published in this Federal
Register. Additional guidance is
provided in the NOFA.
An amount of $2,327,490 has been
earmarked for loan requests to develop
units in EZ or EC communities or REAP
Zones until June 30, 2006.
An amount of $4,950,000 has been
designated for the equity loan
preservation incentive described in 7
CFR 3560. The $4,950,000 will be
further divided into $4 million for
equity loan requests currently on the
pending funding list and $950,000 to
facilitate the transfer of properties from
for-profit owners to nonprofit
corporations and public bodies. Funds
for such transfers would be authorized
only for for-profit owners who are
currently on the pending funding list
who agree to transfer to nonprofit
corporations or public bodies rather
than to remain on the pending list. If
insufficient transfer requests are
generated to utilize the full $1 million
set aside for nonprofit and public body
transfers, the balance will revert to the
existing pending equity loan funding
list.
C. Designated Reserves for State RA
B. National Office New Construction
Set-asides
The following legislatively mandated
set-asides of funds are part of the
National office set-aside:
1. Nonprofit Set-aside
An amount of $8,562,510 has been set
aside for nonprofit applicants. All
Nonprofit loan proposals must be
located in designated places as defined
in 7 CFR 3560.
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2. Underserved Counties and Colonias
Set-Aside
An amount of $4,950,000 has been set
aside for loan requests to develop units
in the underserved 100 most needy
counties or colonias as defined in
section 509(f) of the Housing Act of
1949 as amended. Priority will be given
to proposals to develop units in colonias
or tribal lands.
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An amount of $990,000 of Section 515
loan funds has been set aside for
matching with projects in which an
active State sponsored RA program is
available. The State RA program must
be comparable to the RHS RA program.
D. Repair and Rehabilitation Loans
Tenant health and safety continues to
be the top priority. Repair and
rehabilitation funds must be first
targeted to RRH facilities that have
physical conditions that affect the
health and safety of tenants and
subsequently made available to facilities
that have deferred maintenance. All
funds will be held in the National office
and will be distributed based upon
indicated rehabilitation needs in the
MFH survey conducted in November
2005.
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F. General Reserve
There is one general reserve fund of
$19,800,000. Some examples of
immediate allowable uses include, but
are not limited to, hardships and
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emergencies, RH cooperatives or group
homes, or RRH preservation.
V. Section 533 Housing Preservation
Grants (HPG).
Total Available ...........................................................................................................................................................................
Carryover Funds .........................................................................................................................................................................
Less General Reserve ..................................................................................................................................................................
Less Earmark for EZ, EC or REAP Zones ..................................................................................................................................
Total Available for Distribution ................................................................................................................................................
Amount available for allocation. (See
end of this Notice for HPG State
allocations.) Fund availability will be
announced in a NOFA being published
in the Federal Register.
The amount of $594,000 is earmarked
for EZ, EC or REAP Zones until June 30,
2006.
Single Family Housing (SFH)
I. General
All SFH programs are administered
through field offices. For more
information or to make application,
please contact the Rural Development
office servicing your area. To locate
these offices, contact the appropriate
State Office from the attached State
Office listing, visit our Web site at
https://offices.usda.gov or check the blue
pages in your local telephone directory
under ‘‘Rural Development’’ for the
office serving your area.
A. This notice provides SFH
allocations for FY 2006. Allocation
computations have been made in
accordance with 7 CFR 1940.563
through 1940.568. Information on basic
formula criteria, data source and weight,
administrative allocation, pooling of
funds, and availability of the allocation
are located on a chart at the end of this
notice.
B. The SFH levels authorized for FY
2006 are as follows:
Section 502 Guaranteed Rural Housing (RH) loans:
Nonsubsidized Guarantees—Purchase ...................................................................................................................................
Nonsubsidized Guarantees—Refinance .................................................................................................................................
Section 502 Direct RH loans:
Very low-income subsidized loans ........................................................................................................................................
Low-income subsidized loans ................................................................................................................................................
Credit sales (Nonprogram) .........................................................................................................................................................
Section 504 housing repair loans ............................................................................................................................................
Section 504 housing repair grants ...........................................................................................................................................
Section 509 compensation for construction defects** ..........................................................................................................
Section 523 mutual and self-help housing grants ..................................................................................................................
Section 523 Self-Help Site Loans ............................................................................................................................................
Section 524 RH site loans ........................................................................................................................................................
Section 306C Water and waste disposal grants ......................................................................................................................
Section 525 Supervisory and technical Assistance and Section 509 Housing Application Packaging Grants Total
Available for single And multi-family ...................................................................................................................................
Natural disaster funds (Section 502 Direct loans) ....................................................................................................................
Natural disaster 2005 hurricane funds (Section 502 Direct loans) .........................................................................................
Natural disaster 2005 hurricane funds (Section 502 Guaranteed loans) ................................................................................
Natural disaster funds (Section 504 loans) ...............................................................................................................................
Natural disaster 2003/2004 hurricane funds (Section 504 loans) ...........................................................................................
Natural disaster 2005 hurricane funds (Section 504 loans) .....................................................................................................
Natural disaster funds (Section 504 grants) ..............................................................................................................................
Natural disaster 2003/2004 hurricane funds (Section 504 grants) ..........................................................................................
Natural disaster 2005 hurricane funds (Section 504 grants) ...................................................................................................
* Includes funds for EZ/EC and REAP communities until June 30, 2006.
** Carryover funds are included in the balance.
C. SFH Funding Not Allocated to States
The following funding is not allocated
to States by formula. Funds are made
available to each state on a case-by-case
basis.
1. Credit Sale Authority
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Credit sale funds in the amount of
$10,000,000 are available only for
nonprogram sales of Real Estate Owned
(REO) property.
2. Section 509 Compensation for
Construction Defects
3. Section 523 Mutual and Self-Help
Technical Assistance Grants
$34,374,327 is available for Section
523 Mutual and Self-Help Technical
Assistance Grants. Of these funds,
$990,000 is earmarked for EZ, EC or
REAP Zones until June 30, 2006. A
technical review and analysis must be
completed by the Technical and
Management Assistance (T&MA)
contractor on all predevelopment, new,
and existing (refunding) grant
applications.
$204,066 is available for
compensation for construction defects.
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$9,900,000
$597,716
$990,000
$594,000
$8,913,716
**$3,539,282,975
**$243,016,441
*$564,695,478
*$564,695,478
$10,000,000
*$34,651,692
*/**$30,123,945
$204,066
*/**$34,374,327
$4,998,058
$5,000,000
**$1,484,567
**$1,056,370
**$1,801,535
$175,592,625
$1,293,103,448
**$3,055,447
**$15,306,168
$34,188,034
**$38,157
**$2,360,903
$20,000,000
4. Section 523 Mutual and Self-Help
Site Loans and Section 524 RH Site
Loans
$4,998,058 and $5,000,000 are
available for Section 523 Mutual SelfHelp and Section 524 RH Site loans,
respectively.
5. Section 306C WWD Grants to
Individuals in Colonias
The objective of the Section 306C
WWD individual grant program is to
facilitate the use of community water or
waste disposal systems for the residents
of the colonias along the U.S.-Mexico
border.
The total amount available to Arizona,
California, New Mexico, and Texas will
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be $1,484,567 for FY 2006. This amount
includes carryover unobligated balance
and a transferred amount of $1 million
from the Rural Utilities Service (RUS) to
RHS for processing individual grant
applications.
6. Section 525 Technical and
Supervisory Assistance (TSA) and
Section 509 Housing Application
Packaging Grants (HAPG)
$1,056,370 is available for the TSA
and HAPG programs. Funds are
available on a limited basis for TSA
grants. In accordance with the
provisions of 7 CFR 1944.525, funding
will be targeted nationally and then on
an individual basis to States/areas with
the highest degree of substandard
housing and persons in poverty eligible
to receive Agency housing assistance.
States should submit proposals from
potential applicants to the National
Office for review and concurrence prior
to authorizing an application.
Requests should be submitted to the
National Office for HAPG based on
projected usage of these funds for the
quarter or as needed. HAPG requests
should be submitted by e-mail to Gloria
Denson, Senior Loan Specialist, SFH
Direct Loan Division, 202–720–1487.
Reserve funds will be held at the
National Office and requests from
eligible States will be considered on a
first-come, first-served basis. Additional
guidance is provided in the NOFA.
7. Natural Disaster Funds
Funds are available until exhausted to
those States with active Presidential
Declarations.
8. Deferred Mortgage Payment
Demonstration
There is no FY 2006 funding provided
for deferred mortgage authority or loans
for deferred mortgage assumptions.
II. State Allocations
A. Section 502 Nonsubsidized
Guaranteed RH (GRH) Loans
1. Purchase—Amount Available for
Allocation
Total Available—Purchase .........................................................................................................................................................
Less National office General Reserve .................................................................................................................................
Less Special Outreach Area Reserve ..................................................................................................................................
Basic Formula—Administrative Allocation ..............................................................................................................................
a. National office General Reserve.
The Administrator may restrict access to
this reserve for States not meeting their
goals in special outreach areas.
b. Special Outreach Areas. FY 2006
GRH funding is allocated to States in
two funding streams. Seventy percent of
GRH funds may be used in any eligible
area. Thirty percent of GRH funds are to
be used in special outreach areas.
Special outreach areas for the GRH
program are defined as those areas
within a State that are not located
within a metropolitan statistical area
(MSA).
c. National Office Special Area
Outreach Reserve. A special outreach
area reserve fund has been established
at the National office. Funds from this
reserve may only be used in special
outreach areas.
2. Refinance—Amount Available for
Allocation
Total Available—Refinance .......................................................................................................................................................
Less National office general reserve ...................................................................................................................................
Basic formula—Administrative Allocation ...............................................................................................................................
a. Refinance Funds. Refinance loan
funds will be distributed from the
National Office on a case-by-case basis.
b. National office general reserve. The
Administrator may restrict access to this
reserve for States not meeting their goals
in special outreach areas.
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a. State Office Reserve. State Directors
must maintain an adequate reserve to
fund the following applications:
(i) Hardship and homeless applicants
including the direct Section 502 loan
and Section 504 loan and grant
programs.
(ii) Rural Home Loan Partnerships
(RHLP) and Community Development
Financial Institutions (CDFI) loans.
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(iii) States will leverage with funding
from other sources.
(iv) Areas targeted by the State
according to its strategic plan.
b. National Office Reserves.
(i) General Reserve. The National
office has a general reserve of $148
million. Of this amount, the
Administrator’s reserve is $10,107,873.
One of the purposes of the
Administrator’s reserve will be for loans
in Indian Country. Indian Country
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$243,016,441
$243,016,441
$-0-
B. Section 502 Direct RH Loans
1. Amount Available for Allocation
Total Available ...........................................................................................................................................................................
Less Required Set Aside for Underserved Counties and Colonias ..................................................................................
EZ, EC and REAP Earmark ..........................................................................................................................................
Less General Reserve ...........................................................................................................................................................
Administrator’s Reserve ...............................................................................................................................................
Hardships & Homelessness ..........................................................................................................................................
Rural Housing Demonstration Program ......................................................................................................................
Homeownership Partnership .......................................................................................................................................
Program funds for the sale of REO properties ............................................................................................................
Less Designated Reserve for Self-Help ........................................................................................................................
Basic Formula Administrative Allocation ..................................................................................................................
2. Reserves
$3,539,282,975
$1,218,154,125
$522,066,053
$1,799,062,798
$1,129,390,956
$56,469,548
$10,679,648
$148,107,873
$10,107,873
$2,000,000
$1,000,000
$110,000,000
$25,000,000
$175,000,000
$739,133,887
consists of land inside the boundaries of
Indian reservations, communities made
up mainly of Native Americans, Indian
trust and restricted land, and tribal
allotted lands. Another purpose of the
reserve will be to provide funding for
subsequent loans for essential
improvements or repairs and transfers
with assumptions.
(ii) Hardship and Homelessness
Reserve. $2 million has been set aside
for hardships and homeless.
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(iii) Rural Housing Demonstration
Program. $1 million dollars has been set
aside for innovative demonstration
initiatives.
(iv) Program Credit Sales. $25 million
dollars has been set aside for program
sales of REO property.
c. Homeownership Partnership. $110
million dollars has been set aside for
Homeownership Partnerships. These
funds will be used to expand existing
partnerships and create new
partnerships, such as the following:
(i) Department of Treasury,
Community Development Financial
Institutions (CDFI). Funds will be
available to fund leveraged loans made
in partnership with the Department of
Treasury CDFI participants.
(ii) Partnership initiatives established
to carry out the objectives of the rural
home loan partnership (RHLP).
d. Designated Reserve for Self-Help.
$175 million dollars has been set aside
to assist participating Self-Help
applicants. The National office will
contribute 100 percent from the
National office reserve. States are not
required to contribute from their
allocated Section 502 RH funds.
e. Underserved Counties and
Colonias. An amount of $56,469,548 has
been set aside for the 100 underserved
counties and colonias.
f. Empowerment Zone (EZ), Enterprise
Community (EC) or Rural Economic
Area Partnership (REAP) earmark. An
amount of $10,679,648 has been
earmarked until June 30, 2006, for loans
in EZ, EC or REAP Zones.
g. State Office Pooling. If pooling is
conducted within a State, it must not
take place within the first 30 calendar
days of the first, second, or third
quarter. (There are no restrictions on
pooling in the fourth quarter.)
h. Suballocation by the State Director.
The State Director may suballocate to
each area office using the methodology
and formulas required by 7 CFR part
1940, subpart L. If suballocated to the
area level, the Rural Development
Manager will make funds available on a
first-come, first-served basis to all
offices at the field or area level. No field
office will have its access to funds
restricted without the prior written
approval of the Administrator.
B. Section 504
Grants
Housing Loans and
Section 504 grant funds are included
in the Rural Housing Assistance Grant
program (RHAG) in the FY 2006
appropriation.
1. Amount Available for Allocation
Section 504
Loans
Total Available ...........................................................................................................................................................................
Less 5% for 100 Underserved Counties and Colonias .............................................................................................................
EZ, EC or REAP Zone Earmark ..........................................................................................................................................
Less General Reserve ...........................................................................................................................................................
Basic Formula—Administrative Allocation ..............................................................................................................................
Section 504
Grants
Total Available ...........................................................................................................................................................................
Less 5% for 100 Underserved Counties and Colonias ......................................................................................................
Less EZ, EC or REAP Earmark ............................................................................................................................................
Less General Reserve ...........................................................................................................................................................
Basic Formula—Administrative Allocation ..............................................................................................................................
2. Reserves and Set-asides
a. State Office Reserve. State Directors
must maintain an adequate reserve to
handle all anticipated hardship
applicants based upon historical data
and projected demand.
b. Underserved Counties and
Colonias. Approximately $1,732,584
and $1,480,050 have been set aside for
the 100 underserved counties and
colonias until June 30, 2006, for the
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1. Basic formula criteria, data
source, and weight.
2. Administrative Allocation:
Western Pacific Area ..............
3. Pooling of funds:
a. Mid-year pooling .................
b. Year-end pooling ................
c. Underserved counties &
colonias.
d. EZ, EC or REAP .................
e. Credit sales .........................
4. Availability of the allocation:
20:42 Mar 17, 2006
Section 504 loan and grant programs,
respectively.
c. Empowerment Zone (EZ) and
Enterprise Community (EC) or Rural
Economic Area Partnership (REAP)
Earmark (Loan Funds Only). $652,086
and $594,000 have been earmarked
through June 30, 2006, for EZ, EC or
REAPs for the Section 504 loan and
grant programs, respectively.
d. General Reserve. $733,915 for
Section 504 loan hardships and
$1,649,895 for Section 504 grant
$30,123,945
$1,480,050
$594,000
$1,649,895
$26,400,000
extreme hardships have been set-aside
in the general reserve. For Section 504
grants, an extreme hardship case is one
requiring a significant priority in
funding, ahead of other requests, due to
severe health or safety hazards, or
physical needs of the applicant.
INFORMATION ON BASIC
FORMULA CRITERIA, DATA SOURCE
AND WEIGHT, ADMINISTRATIVE
ALLOCATION, POOLING OF FUNDS,
AND AVAILABILITY OF THE
ALLOCATION
Section 502
Nonsubsidized Guaranteed RH
Loans
No.\ Description
VerDate Aug<31>2005
$34,651,692
$1,732,584
$652,086
$733,915
$31,533,107
Section 502
Direct RH Loans
Section 504
Loans and Grants
See 7 CFR 1940.563(b) ...............
See 7 CFR 1940.565(b) ...............
See 7 CFR 1940.566(b) and
1940.567(b).
.......................................................
$4,000,000 ....................................
.......................................................
$2,000,000 ....................................
If necessary ..................................
August 12, 2006 ...........................
N/A ................................................
If necessary. .................................
July 14, 2006 ................................
June 30, 2006 ...............................
If necessary.
July 14, 2006.
June 30, 2006.
N/A ................................................
N/A ................................................
.......................................................
June 30, 2006. ..............................
June 30, 2006 ...............................
.......................................................
June 30, 2006.
N/A.
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$500,000 grant.
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Section 502
Nonsubsidized Guaranteed RH
Loans
No.\ Description
a. first quarter .........................
b. second quarter ....................
c. third quarter ........................
d. fourth quarter ......................
Section 502
Direct RH Loans
40 percent .....................................
70 percent .....................................
90 percent .....................................
100 percent ...................................
50 percent .....................................
75 percent .....................................
100 percent ...................................
100 percent ...................................
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1. Data derived from the 2000 U.S.
Census is available on the Web at
https://census.sc.egov.usda.gov.
2. Due to the absence of Census data.
3. All dates are tentative and are for
the close of business (COB). Pooled
funds will be placed in the National
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office reserve and made available
administratively. The Administrator
reserves the right to redistribute funds
based upon program performance.
4. Funds will be distributed
cumulatively through each quarter
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Section 504
Loans and Grants
50 percent.
75 percent.
100 percent.
100 percent.
listed until the National office year-end
pooling date.
Dated: March 8, 2006.
Russell T. Davis,
Administrator, Rural Housing Service.
BILLING CODE 3410–XV–P
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14070
Federal Register / Vol. 71, No. 53 / Monday, March 20, 2006 / Notices
[FR Doc. 06–2448 Filed 3–17–06; 8:45 am]
BILLING CODE 3410–XV–P
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Funds Availability (NOFA) for
Section 514 Farm Labor Housing
Loans and Section 516 Farm Labor
Housing Grants for Off-Farm Housing
for Fiscal Year 2006
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Announcement Type: Initial Notice
inviting applications from qualified
applicants for Fiscal Year 2006.
Catalog of Federal Domestic
Assistance Numbers (CFDA): 10.405 and
10.427.
SUMMARY: This NOFA announces the
timeframe to submit applications for
section 514 Farm Labor Housing (FLH)
loans and section 516 FLH grants for the
construction of new off-farm FLH units
and related facilities for domestic farm
laborers. The intended purpose of these
loans and grants is to increase the
number of available housing units for
domestic farm laborers. Applications
may also include requests for section
521 rental assistance (RA) and operating
assistance for migrant units. This
document describes the method used to
distribute funds, the application
process, and submission requirements.
DATES: The deadline for receipt of all
applications in response to this NOFA
is 5 p.m., local time for each Rural
Development State Office on May 19,
2006. The application closing deadline
is firm as to date and hour. The Agency
will not consider any application that is
received after the closing deadline.
Applicants intending to mail
applications must provide sufficient
time to permit delivery on or before the
closing deadline. Acceptance by a post
office or private mailer does not
constitute delivery. Facsimile (FAX),
COD, and postage due applications will
not be accepted.
FOR FURTHER INFORMATION CONTACT:
Henry Searcy, Senior Loan Specialist,
Multi-Family Housing Processing
Division—STOP 0781 (Room 1263–S),
U.S. Department of Agriculture—Rural
Housing Service, 1400 Independence
Ave. SW., Washington, DC 20250–0781,
by telephone at (202) 720–1627 (This is
not a toll free number.), or via email at
Henry.Searcy@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The reporting requirements contained
in this Notice have been approved by
the Office of Management and Budget
under Control Number 0575–0045.
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Overview
The FLH program is authorized by the
Housing Act of 1949: Section 514 (42
U.S.C. 1484) for loans and section 516
(42 U.S.C. 1486) for grants. Tenant
subsidies (RA) are available through
section 521 (42 U.S.C. 1490a). Sections
514 and 516 provide Rural Housing
Service (RHS) the authority to make
loans and grants for financing off-farm
housing to broad-based nonprofit
organizations, nonprofit organizations of
farmworkers, federally recognized
Indian tribes and agencies or political
subdivisions of State or local
government. In addition, loans may be
made to limited partnerships in which
the general partner is a nonprofit entity.
Program Administration
I. Funding Opportunities Description
The Agency’s FLH program is
authorized by Title V of the Housing Act
of 1949: Section 514 (42 U.S.C. 1484) for
loans and section 516 (42 U.S.C. 1486)
for grants. Tenant subsidies (RA and
operating assistance) are available
through section 521 (42 U.S.C. 1490a).
Agency regulations for the Off-FLH
program are published at 7 CFR part
3560, subpart L. Eligibility for section
516 off-farm FLH grants is limited to
broad-based nonprofit organizations,
nonprofit organizations of farmworkers,
federally recognized Indian tribes,
agencies or political subdivisions of
State or local government, and public
agencies (such as housing authorities).
Eligibility for section 514 off-farm FLH
loans includes each of the
aforementioned entities and also
includes limited partnerships which
have a nonprofit entity as their sole
general partner.
Housing that is constructed with these
loans and grants must meet the Agency
design and construction standards
contained in 7 CFR part 1924, subparts
A and C. Once constructed, off-farm
FLH must be managed in accordance
with the program’s management
regulation, 7 CFR part 3560. Tenant
eligibility is limited to persons who
meet the definition of a ‘‘domestic farm
laborer’’, a ‘‘retired domestic farm
laborer,’’ or a ‘‘disabled domestic farm
laborer,’’ as these terms are defined in
7 CFR 3560.11. A domestic farm labor
is defined as ‘‘[a] person who, * * *,
receives a substantial portion of his or
her income from farm labor employment
(not self-employed) in the United States,
Puerto Rico, or the Virgin Islands and
either is a citizen of the United States
or resides in the United States, Puerto
Rico, or the Virgin Islands after being
legally admitted for permanent
residence. This definition may include
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14071
the immediate family members residing
with such a person.’’ Farmworkers who
are admitted to this country on a
temporary basis under the Temporary
Agricultural Workers (H–2A Visa)
program are not eligible to occupy
section 514/516 off-farm FLH.
The term ‘‘farm labor,’’ as used in the
definition of domestic farm laborer,
includes ‘‘[services in connection with
cultivating the soil, raising or harvesting
any agriculture or aquaculture
commodity; or in catching, netting,
handling, planting, drying, packing,
grading, storing, or preserving in the
unprocessed stage, * * *, any
agriculture or aquaculture commodity;
or delivering to storage, market, or a
carrier for transportation to market or to
processing any agricultural or
aquacultural commodity in its
unprocessed stage].’’ In addition, offfarm FLH must be operated on a nonprofit basis and tenancy must be open
to all qualified domestic farm laborers,
regardless at which farm they work.
Operating assistance may be used in
lieu of tenant-specific rental assistance
in off-farm labor housing projects
financed under section 514 or section
516(i) of the Housing Act of 1949
(U.S.C. 1486(i)) that serve migrant
farmworkers. To be eligible for the
operating assistance, projects must be
off-farm FLH projects financed under
section 514 or section 516 with units
that are for migrant farmworkers
(housing units for year-round
farmworker households are ineligible)
and must otherwise meet the
requirements of 7 CFR 3560.574.
‘‘Migrants or migrant agricultural
laborer’’ is defined in 7 CFR 3560.11 as
‘‘[a] person (and the family of such
person) who receives a substantial
portion of his or her income from farm
labor employment and who establishes
a residence in a location on a seasonal
or temporary basis, in an attempt to
receive farm labor employment at one or
more locations away from their home
base state, excluding day-haul
agricultural workers whose travels are
limited to work areas within one day of
their residence.’’ Owners of eligible
projects may choose tenant-specific RA
or operating assistance, or a
combination of both; however, any
tenant or unit assisted with operating
assistance may not also receive RA.
II. Award Information
Applications for Fiscal Year (FY) 2006
will only be accepted through the date
and time listed in this NOFA.
Because RHS has the ability to adjust
loan and grant levels, final loan and
grant levels will fluctuate. The
estimated funds available for FY 2006
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[Federal Register Volume 71, Number 53 (Monday, March 20, 2006)]
[Notices]
[Pages 14056-14071]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-2448]
[[Page 14055]]
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Part II
Department of Agriculture
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Rural Housing Service
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Notice of Funds Availability; Multi[dash]Family Housing,
Single[dash]Family Housing, Housing Loans and Grants for Fiscal Year
2006; Notices
Federal Register / Vol. 71, No. 53 / Monday, March 20, 2006 /
Notices
[[Page 14056]]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Availability of Funds; Multi-Family Housing, Single
Family Housing
AGENCY: Rural Housing Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Rural Housing Service (RHS) announces the availability of
housing funds for fiscal year 2006 (FY 2006). This action is taken to
comply with 42 U.S.C. 1490p, which requires that RHS publish in the
Federal Register notice of the availability of any housing assistance.
DATES: Effective March 20, 2006.
FOR FURTHER INFORMATION CONTACT: For information regarding this notice
contact Lou Paulson, Management Analyst, Single Family Housing Direct
Loan Division, telephone 202-720-1478, for single family housing (SFH)
issues and Tammy S. Daniels, Loan Specialist, Multi-Family Housing
Processing Division, telephone 202-720-0021, for multi-family housing
(MFH) issues, U.S. Department of Agriculture, 1400 Independence Ave.,
SW., Washington, DC, 20250. (The telephone numbers listed are not toll
free numbers). For information on applying for assistance, visit our
Internet Web site at https://offices.usda.gov and select your State or
check the blue pages in your local telephone directory under ``Rural
Development'' for the office serving your area. Near the end of this
Notice is a listing of Rural Development State Directors.
SUPPLEMENTARY INFORMATION:
Programs Affected
The following programs are subject to the provisions of Executive
Order 12372 that requires intergovernmental consultation with State and
local officials. These programs or activities are listed in the Catalog
of Federal Domestic Assistance under Nos.
10.405 Farm Labor Housing (LH) Loans and Grants
10.410 Very Low to Moderate Income Housing Loans
10.411 Rural Housing Site Loans and Self-Help Housing Land Development
Loans
10.415 Rural Rental Housing Loans
10.417 Very Low Income Housing Repair Loans and Grants
10.420 Rural Self-Help Housing Technical Assistance
10.427 Rural Rental Assistance Payments
10.433 Rural Housing Preservation Grants
10.442 Housing Application Packaging Grants
Discussion of Notice
Part 1940, subpart L of 7 CFR contains the ``Methodology and
Formulas for Allocation of Loan and Grant Program Funds.'' To apply for
assistance under these programs or for more information, contact the
Rural Development Office for your area.
Multi-Family Housing (MFH)
I. General
A. This provides guidance on MFH funding for the Rural Rental
Housing program (RRH) for FY 2006. Allocation computations have been
performed in accordance with 7 CFR 1940.575 and 1940.578. For FY 2006,
State Directors, under the Rural Housing Assistance Grants (RHAG), will
have the flexibility to transfer their initial allocations of budget
authority between the Single Family Housing (SFH) Section 504 Rural
Housing Grants and Section 533 Housing Preservation Grant (HPG)
programs.
B. MFH loan and grant levels for FY 2006 are as follows:
MFH Loan Programs Credit Sales...................... $1,485,000
Section 514 Farm Labor Housing (LH) loans *......... $38,116,887
Section 515 Rural Rental Housing (RRH) loans........ $99,000,000
Section 521 Rental Assistance (RA) and 502(c)(5)(C) $638,650,980
Advance............................................
Section 516 LH grants............................... $13,860,000
Sections 525 Technical and Supervisory Assistance $990,000
grants (TSA) and 509 Housing Application Packaging
grants (HAPG) (Shared between single and multi-
family housing)....................................
Section 533 Housing Preservation grants (HPG) *..... $10,497,716
Section 538 Guaranteed Rural Rental Housing Program. $99,000,000
Preservation Revolving Loan Fund Demonstration $6,415,183
Program............................................
Section 515 Multi-Family Housing Preservation and $8,910,000
Revitalization Restructuring Demonstration.........
Rural Housing Voucher Program....................... $15,840,000
Housing Demonstration Program for Mississippi Band $990,000
of Choctaw Indians.................................
Natural disaster 2003/2004 hurricane funds (Section $880,519
516 LH grants).....................................
* Includes Carryover Funds.
II. Funds Not Allocated to States
A. Credit Sales Authority
For FY 2006, $1,485,000 will be set aside for credit sales to
program and nonprogram buyers. Credit sale funding will not be
allocated by State.
B. Section 538 Guaranteed Rural Rental Housing Program
Guaranteed loan funds will be made available under a Notice of
Funding Availability (NOFA) being published in this Federal Register.
Additional guidance is provided in the NOFA.
C. Multifamily Revitalization Initiative Demonstration Program
The Multifamily Revitalization Initiative Demonstration Program is
designed to preserve and revitalize Section 515 multifamily rental
housing properties. The Program is designed to utilize several tools to
restructure debt and financing of an aging portfolio of rental
properties. The objective is to ensure that properties have sufficient
resources to continue providing safe and affordable housing for low-
income rural residents.
D. Rural Housing Voucher Program
The Rural Housing Voucher Program, authorized under Section 542 of
the Housing Act of 1949, is designed to provide tenant protections in
properties that prepay their mortgages after September 30, 2005. These
Vouchers are portable and will enable tenants to continue to access
affordable housing without benefit of the traditional Rental Assistance
Program.
III. Farm Labor Housing (LH) Loans and Grants
The Administrator has the authority to transfer the allocation of
budget authority between the two programs. Upon NOFA closing the
Administrator will evaluate the responses and determine proper
distribution of funds between loans and grants.
[[Page 14057]]
A. Section 514 Farm LH Loans
1. These loans are funded in accordance with 7 CFR 1940.579(a).
FY 2006 Appropriation............................... $38,116,887
Available for Off-Farm Loans........................ $31,937,082
Available for On-Farm Loans......................... $2,000,000
National Office Reserve............................. $4,179,805
2. Off-farm loan funds will be made available under a NOFA being
published in this Federal Register. Additional guidance is provided in
the NOFA.
B. Section 516 Farm LH Grants
1. Grants are funded in accordance with 7 CFR 1940.579(b).
Unobligated prior year balances and cancellations will be added to the
amount shown.
FY 2006 Appropriation............................... $13,860,000
Available for LH Grants for Off-Farm................ $10,490,040
National Office Reserve............................. $3,369,960
2. Labor Housing grant funds for Off-Farm will be made available
under a NOFA being published in this Federal Register. Additional
guidance is provided in the NOFA.
C. Labor Housing Rental Assistance (RA) will be held in the
National Office for use with LH loan and grant applications. RA is only
available with am LH loan of at least 5 percent of the total
development cost. Projects without a LH loan cannot receive RA.
IV. Section 515 RRH Loan Funds
FY 2006 Section 515 Rural Rental Housing allocation $99,000,000
(Total)............................................
New Construction funds and set-asides............... $25,740,000
New construction loans.......................... $8,562,510
Set-aside for nonprofits........................ $8,910,000
Set-aside for underserved counties and colonias. $4,950,000
Earmark for EZ, EC, or REAP Zones............... $2,327,490
State RA designated reserve..................... $990,000
Rehab and repair funds and equity................... $53,460,000
Rehab and repair loans.......................... $48,510,000
Designated equity loan reserve.................. $4,950,000
General Reserve..................................... $19,800,000
A. New Construction Loan Funds
New construction loan funds will be made available using a national
NOFA being published in this Federal Register. Additional guidance is
provided in the NOFA.
B. National Office New Construction Set-asides
The following legislatively mandated set-asides of funds are part
of the National office set-aside:
1. Nonprofit Set-aside
An amount of $8,562,510 has been set aside for nonprofit
applicants. All Nonprofit loan proposals must be located in designated
places as defined in 7 CFR 3560.
2. Underserved Counties and Colonias Set-Aside
An amount of $4,950,000 has been set aside for loan requests to
develop units in the underserved 100 most needy counties or colonias as
defined in section 509(f) of the Housing Act of 1949 as amended.
Priority will be given to proposals to develop units in colonias or
tribal lands.
3. EZ, EC or REAP Zone Earmark
An amount of $2,327,490 has been earmarked for loan requests to
develop units in EZ or EC communities or REAP Zones until June 30,
2006.
C. Designated Reserves for State RA
An amount of $990,000 of Section 515 loan funds has been set aside
for matching with projects in which an active State sponsored RA
program is available. The State RA program must be comparable to the
RHS RA program.
D. Repair and Rehabilitation Loans
Tenant health and safety continues to be the top priority. Repair
and rehabilitation funds must be first targeted to RRH facilities that
have physical conditions that affect the health and safety of tenants
and subsequently made available to facilities that have deferred
maintenance. All funds will be held in the National office and will be
distributed based upon indicated rehabilitation needs in the MFH survey
conducted in November 2005.
E. Designated Reserve for Equity Loans
An amount of $4,950,000 has been designated for the equity loan
preservation incentive described in 7 CFR 3560. The $4,950,000 will be
further divided into $4 million for equity loan requests currently on
the pending funding list and $950,000 to facilitate the transfer of
properties from for-profit owners to nonprofit corporations and public
bodies. Funds for such transfers would be authorized only for for-
profit owners who are currently on the pending funding list who agree
to transfer to nonprofit corporations or public bodies rather than to
remain on the pending list. If insufficient transfer requests are
generated to utilize the full $1 million set aside for nonprofit and
public body transfers, the balance will revert to the existing pending
equity loan funding list.
F. General Reserve
There is one general reserve fund of $19,800,000. Some examples of
immediate allowable uses include, but are not limited to, hardships and
[[Page 14058]]
emergencies, RH cooperatives or group homes, or RRH preservation.
V. Section 533 Housing Preservation Grants (HPG).
Total Available..................................... $9,900,000
Carryover Funds..................................... $597,716
Less General Reserve................................ $990,000
Less Earmark for EZ, EC or REAP Zones............... $594,000
Total Available for Distribution.................... $8,913,716
Amount available for allocation. (See end of this Notice for HPG
State allocations.) Fund availability will be announced in a NOFA being
published in the Federal Register.
The amount of $594,000 is earmarked for EZ, EC or REAP Zones until
June 30, 2006.
Single Family Housing (SFH)
I. General
All SFH programs are administered through field offices. For more
information or to make application, please contact the Rural
Development office servicing your area. To locate these offices,
contact the appropriate State Office from the attached State Office
listing, visit our Web site at https://offices.usda.gov or check the
blue pages in your local telephone directory under ``Rural
Development'' for the office serving your area.
A. This notice provides SFH allocations for FY 2006. Allocation
computations have been made in accordance with 7 CFR 1940.563 through
1940.568. Information on basic formula criteria, data source and
weight, administrative allocation, pooling of funds, and availability
of the allocation are located on a chart at the end of this notice.
B. The SFH levels authorized for FY 2006 are as follows:
Section 502 Guaranteed Rural Housing (RH) loans:
Nonsubsidized Guarantees--Purchase................ **$3,539,282,975
Nonsubsidized Guarantees--Refinance............... **$243,016,441
Section 502 Direct RH loans:
Very low-income subsidized loans.................. *$564,695,478
Low-income subsidized loans....................... *$564,695,478
Credit sales (Nonprogram)........................... $10,000,000
Section 504 housing repair loans.................... *$34,651,692
Section 504 housing repair grants................... */**$30,123,945
Section 509 compensation for construction defects**. $204,066
Section 523 mutual and self-help housing grants..... */**$34,374,327
Section 523 Self-Help Site Loans.................... $4,998,058
Section 524 RH site loans........................... $5,000,000
Section 306C Water and waste disposal grants........ **$1,484,567
Section 525 Supervisory and technical Assistance and **$1,056,370
Section 509 Housing Application Packaging Grants
Total Available for single And multi-family........
Natural disaster funds (Section 502 Direct loans)... **$1,801,535
Natural disaster 2005 hurricane funds (Section 502 $175,592,625
Direct loans)......................................
Natural disaster 2005 hurricane funds (Section 502 $1,293,103,448
Guaranteed loans)..................................
Natural disaster funds (Section 504 loans).......... **$3,055,447
Natural disaster 2003/2004 hurricane funds (Section **$15,306,168
504 loans).........................................
Natural disaster 2005 hurricane funds (Section 504 $34,188,034
loans).............................................
Natural disaster funds (Section 504 grants)......... **$38,157
Natural disaster 2003/2004 hurricane funds (Section **$2,360,903
504 grants)........................................
Natural disaster 2005 hurricane funds (Section 504 $20,000,000
grants)............................................
* Includes funds for EZ/EC and REAP communities until June 30, 2006.
** Carryover funds are included in the balance.
C. SFH Funding Not Allocated to States
The following funding is not allocated to States by formula. Funds
are made available to each state on a case-by-case basis.
1. Credit Sale Authority
Credit sale funds in the amount of $10,000,000 are available only
for nonprogram sales of Real Estate Owned (REO) property.
2. Section 509 Compensation for Construction Defects
$204,066 is available for compensation for construction defects.
3. Section 523 Mutual and Self-Help Technical Assistance Grants
$34,374,327 is available for Section 523 Mutual and Self-Help
Technical Assistance Grants. Of these funds, $990,000 is earmarked for
EZ, EC or REAP Zones until June 30, 2006. A technical review and
analysis must be completed by the Technical and Management Assistance
(T&MA) contractor on all predevelopment, new, and existing (refunding)
grant applications.
4. Section 523 Mutual and Self-Help Site Loans and Section 524 RH Site
Loans
$4,998,058 and $5,000,000 are available for Section 523 Mutual
Self-Help and Section 524 RH Site loans, respectively.
5. Section 306C WWD Grants to Individuals in Colonias
The objective of the Section 306C WWD individual grant program is
to facilitate the use of community water or waste disposal systems for
the residents of the colonias along the U.S.-Mexico border.
The total amount available to Arizona, California, New Mexico, and
Texas will
[[Page 14059]]
be $1,484,567 for FY 2006. This amount includes carryover unobligated
balance and a transferred amount of $1 million from the Rural Utilities
Service (RUS) to RHS for processing individual grant applications.
6. Section 525 Technical and Supervisory Assistance (TSA) and Section
509 Housing Application Packaging Grants (HAPG)
$1,056,370 is available for the TSA and HAPG programs. Funds are
available on a limited basis for TSA grants. In accordance with the
provisions of 7 CFR 1944.525, funding will be targeted nationally and
then on an individual basis to States/areas with the highest degree of
substandard housing and persons in poverty eligible to receive Agency
housing assistance. States should submit proposals from potential
applicants to the National Office for review and concurrence prior to
authorizing an application.
Requests should be submitted to the National Office for HAPG based
on projected usage of these funds for the quarter or as needed. HAPG
requests should be submitted by e-mail to Gloria Denson, Senior Loan
Specialist, SFH Direct Loan Division, 202-720-1487. Reserve funds will
be held at the National Office and requests from eligible States will
be considered on a first-come, first-served basis. Additional guidance
is provided in the NOFA.
7. Natural Disaster Funds
Funds are available until exhausted to those States with active
Presidential Declarations.
8. Deferred Mortgage Payment Demonstration
There is no FY 2006 funding provided for deferred mortgage
authority or loans for deferred mortgage assumptions.
II. State Allocations
A. Section 502 Nonsubsidized Guaranteed RH (GRH) Loans
1. Purchase--Amount Available for Allocation
Total Available--Purchase........................... $3,539,282,975
Less National office General Reserve............ $1,218,154,125
Less Special Outreach Area Reserve.............. $522,066,053
Basic Formula--Administrative Allocation............ $1,799,062,798
a. National office General Reserve. The Administrator may restrict
access to this reserve for States not meeting their goals in special
outreach areas.
b. Special Outreach Areas. FY 2006 GRH funding is allocated to
States in two funding streams. Seventy percent of GRH funds may be used
in any eligible area. Thirty percent of GRH funds are to be used in
special outreach areas. Special outreach areas for the GRH program are
defined as those areas within a State that are not located within a
metropolitan statistical area (MSA).
c. National Office Special Area Outreach Reserve. A special
outreach area reserve fund has been established at the National office.
Funds from this reserve may only be used in special outreach areas.
2. Refinance--Amount Available for Allocation
Total Available--Refinance.......................... $243,016,441
Less National office general reserve............ $243,016,441
Basic formula--Administrative Allocation............ $-0-
a. Refinance Funds. Refinance loan funds will be distributed from
the National Office on a case-by-case basis.
b. National office general reserve. The Administrator may restrict
access to this reserve for States not meeting their goals in special
outreach areas.
B. Section 502 Direct RH Loans
1. Amount Available for Allocation
Total Available..................................... $1,129,390,956
Less Required Set Aside for Underserved Counties $56,469,548
and Colonias...................................
EZ, EC and REAP Earmark..................... $10,679,648
Less General Reserve............................ $148,107,873
Administrator's Reserve..................... $10,107,873
Hardships & Homelessness.................... $2,000,000
Rural Housing Demonstration Program......... $1,000,000
Homeownership Partnership................... $110,000,000
Program funds for the sale of REO properties $25,000,000
Less Designated Reserve for Self-Help....... $175,000,000
Basic Formula Administrative Allocation..... $739,133,887
2. Reserves
a. State Office Reserve. State Directors must maintain an adequate
reserve to fund the following applications:
(i) Hardship and homeless applicants including the direct Section
502 loan and Section 504 loan and grant programs.
(ii) Rural Home Loan Partnerships (RHLP) and Community Development
Financial Institutions (CDFI) loans.
(iii) States will leverage with funding from other sources.
(iv) Areas targeted by the State according to its strategic plan.
b. National Office Reserves.
(i) General Reserve. The National office has a general reserve of
$148 million. Of this amount, the Administrator's reserve is
$10,107,873. One of the purposes of the Administrator's reserve will be
for loans in Indian Country. Indian Country consists of land inside the
boundaries of Indian reservations, communities made up mainly of Native
Americans, Indian trust and restricted land, and tribal allotted lands.
Another purpose of the reserve will be to provide funding for
subsequent loans for essential improvements or repairs and transfers
with assumptions.
(ii) Hardship and Homelessness Reserve. $2 million has been set
aside for hardships and homeless.
[[Page 14060]]
(iii) Rural Housing Demonstration Program. $1 million dollars has
been set aside for innovative demonstration initiatives.
(iv) Program Credit Sales. $25 million dollars has been set aside
for program sales of REO property.
c. Homeownership Partnership. $110 million dollars has been set
aside for Homeownership Partnerships. These funds will be used to
expand existing partnerships and create new partnerships, such as the
following:
(i) Department of Treasury, Community Development Financial
Institutions (CDFI). Funds will be available to fund leveraged loans
made in partnership with the Department of Treasury CDFI participants.
(ii) Partnership initiatives established to carry out the
objectives of the rural home loan partnership (RHLP).
d. Designated Reserve for Self-Help. $175 million dollars has been
set aside to assist participating Self-Help applicants. The National
office will contribute 100 percent from the National office reserve.
States are not required to contribute from their allocated Section 502
RH funds.
e. Underserved Counties and Colonias. An amount of $56,469,548 has
been set aside for the 100 underserved counties and colonias.
f. Empowerment Zone (EZ), Enterprise Community (EC) or Rural
Economic Area Partnership (REAP) earmark. An amount of $10,679,648 has
been earmarked until June 30, 2006, for loans in EZ, EC or REAP Zones.
g. State Office Pooling. If pooling is conducted within a State, it
must not take place within the first 30 calendar days of the first,
second, or third quarter. (There are no restrictions on pooling in the
fourth quarter.)
h. Suballocation by the State Director. The State Director may
suballocate to each area office using the methodology and formulas
required by 7 CFR part 1940, subpart L. If suballocated to the area
level, the Rural Development Manager will make funds available on a
first-come, first-served basis to all offices at the field or area
level. No field office will have its access to funds restricted without
the prior written approval of the Administrator.
B. Section 504 Housing Loans and Grants
Section 504 grant funds are included in the Rural Housing
Assistance Grant program (RHAG) in the FY 2006 appropriation.
1. Amount Available for Allocation
Section 504 Loans
Total Available..................................... $34,651,692
Less 5% for 100 Underserved Counties and Colonias... $1,732,584
EZ, EC or REAP Zone Earmark..................... $652,086
Less General Reserve............................ $733,915
Basic Formula--Administrative Allocation............ $31,533,107
Section 504 Grants
Total Available..................................... $30,123,945
Less 5% for 100 Underserved Counties and $1,480,050
Colonias.......................................
Less EZ, EC or REAP Earmark..................... $594,000
Less General Reserve............................ $1,649,895
Basic Formula--Administrative Allocation............ $26,400,000
2. Reserves and Set-asides
a. State Office Reserve. State Directors must maintain an adequate
reserve to handle all anticipated hardship applicants based upon
historical data and projected demand.
b. Underserved Counties and Colonias. Approximately $1,732,584 and
$1,480,050 have been set aside for the 100 underserved counties and
colonias until June 30, 2006, for the Section 504 loan and grant
programs, respectively.
c. Empowerment Zone (EZ) and Enterprise Community (EC) or Rural
Economic Area Partnership (REAP) Earmark (Loan Funds Only). $652,086
and $594,000 have been earmarked through June 30, 2006, for EZ, EC or
REAPs for the Section 504 loan and grant programs, respectively.
d. General Reserve. $733,915 for Section 504 loan hardships and
$1,649,895 for Section 504 grant extreme hardships have been set-aside
in the general reserve. For Section 504 grants, an extreme hardship
case is one requiring a significant priority in funding, ahead of other
requests, due to severe health or safety hazards, or physical needs of
the applicant.
INFORMATION ON BASIC FORMULA CRITERIA, DATA SOURCE AND WEIGHT,
ADMINISTRATIVE ALLOCATION, POOLING OF FUNDS, AND AVAILABILITY OF THE
ALLOCATION
----------------------------------------------------------------------------------------------------------------
Section 502
No.\ Description Nonsubsidized Section 502 Direct RH Section 504 Loans and
Guaranteed RH Loans Loans Grants
----------------------------------------------------------------------------------------------------------------
1. Basic formula criteria, data See 7 CFR 1940.563(b).. See 7 CFR 1940.565(b).. See 7 CFR 1940.566(b)
source, and weight. and 1940.567(b).
2. Administrative Allocation: ....................... ....................... .......................
Western Pacific Area............. $4,000,000............. $2,000,000............. $500,000 loan.
$500,000 grant.
3. Pooling of funds:
a. Mid-year pooling.............. If necessary........... If necessary........... If necessary.
b. Year-end pooling.............. August 12, 2006........ July 14, 2006.......... July 14, 2006.
c. Underserved counties & N/A.................... June 30, 2006.......... June 30, 2006.
colonias.
d. EZ, EC or REAP................ N/A.................... June 30, 2006.......... June 30, 2006.
e. Credit sales.................. N/A.................... June 30, 2006.......... N/A.
4. Availability of the allocation: ....................... ....................... .......................
[[Page 14061]]
a. first quarter................. 40 percent............. 50 percent............. 50 percent.
b. second quarter................ 70 percent............. 75 percent............. 75 percent.
c. third quarter................. 90 percent............. 100 percent............ 100 percent.
d. fourth quarter................ 100 percent............ 100 percent............ 100 percent.
----------------------------------------------------------------------------------------------------------------
1. Data derived from the 2000 U.S. Census is available on the Web
at https://census.sc.egov.usda.gov.
2. Due to the absence of Census data.
3. All dates are tentative and are for the close of business (COB).
Pooled funds will be placed in the National office reserve and made
available administratively. The Administrator reserves the right to
redistribute funds based upon program performance.
4. Funds will be distributed cumulatively through each quarter
listed until the National office year-end pooling date.
Dated: March 8, 2006.
Russell T. Davis,
Administrator, Rural Housing Service.
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[FR Doc. 06-2448 Filed 3-17-06; 8:45 am]
BILLING CODE 3410-XV-P
