Notice of Funding Availability (NOFA): Section 515 Multi-Family Housing Preservation Revolving Loan Fund (PRLF) Demonstration Program for Fiscal Year 2007, 44076-44081 [07-3841]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Housing Service

[Federal Register Volume 72, Number 151 (Tuesday, August 7, 2007)]
[Notices]
[Pages 44076-44081]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-3841]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Funding Availability (NOFA): Section 515 Multi-Family 
Housing Preservation Revolving Loan Fund (PRLF) Demonstration Program 
for Fiscal Year 2007

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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Overview Information

SUMMARY: The Rural Housing Service (RHS) announces the availability of 
funds and the timeframe to submit applications for loans to private 
non-profit organizations, or such non-profit organizations' affiliate 
loan funds and State and local housing finance agencies, to carry out a 
housing demonstration program to provide revolving loans for the 
preservation and revitalization of low-income multi-family housing. 
Housing that is assisted by this demonstration program must be financed 
by RHS through its multi-family housing loan program under Section 515 
of the Housing Act of 1949. The goals of this demonstration program 
will be achieved through loans making to intermediaries. The 
intermediaries will establish their programs for the purpose of 
providing loans to ultimate recipients for the preservation and 
revitalization of Section 515 multi-family housing as affordable 
housing.

DATES: The deadline for receipt of all applications in response to this 
NOFA is 5 p.m., Eastern Time, September 6, 2007. 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, Jr., Senior Loan 
Specialist, Multi-Family Housing Processing Division, STOP 0781 (Room 
1263-S), or Bonnie Edwards-Jackson, Senior Loan Specialist, Multi-
Family Housing Processing Division, STOP 0781 (Room 1239-S), U.S. 
Department of Agriculture, Rural Housing Service, 1400 Independence 
Ave., SW., Washington, DC 20250-0781 or by telephone at (202) 720-1753 
or (202) 690-0759, or via e-mail at Henry.Searcy@wdc.usda.gov or 
Bonnie.Edwards@wdc.usda.gov. (Please note the phone numbers are not 
toll free numbers.)

SUPPLEMENTARY INFORMATION

Paperwork Reduction Act

    Under the Paperwork Reduction Act, 44 U.S.C. 3501 (2005) et seq., 
OMB must approve all ``collections of information'' by RHS. The Act 
defines ``collection of information'' as a requirement for ``answers to 
* * * identical reporting or recordkeeping requirements imposed on ten 
or more persons * * *.'' (44 U.S.C. 3502(3)(A)). Because this NOFA will 
receive less than 10 respondents, the Paperwork Reduction Act does not 
apply.

Programs Affected

    This program is listed in the Catalog of Federal Domestic 
Assistance under Number 10.415.

Overview

    The Agriculture, Rural Development, Food and Drug Administration, 
and Related Agencies Appropriations Act, 2007 (Division A of Pub. L. 
110-5) provided funding for, and authorizes RHS to, establish a 
revolving loan fund demonstration program for the preservation and 
revitalization of the Section 515 multi-family housing portfolio. The 
section 515 multi-family housing program is authorized by section 515 
of the Housing Act of 1949 (42 U.S.C. 1485) and provides RHS the 
authority to make loans for low income multi-family housing and related 
facilities.

Program Administration

I. Funding Opportunities Description

    This NOFA requests applications from eligible applicants for loans 
to establish and operate revolving loan funds for the preservation of 
low-income multi-family housing within the Agency's section 515 multi-
family housing portfolio. Agency regulations for the section 515 multi-
family housing program are published at 7 CFR part 3560.
    Housing that is constructed or repaired must meet the Agency design 
and construction standards and the

[[Page 44077]]

development standards contained in 7 CFR part 1924, subparts A and C, 
respectively. Once constructed, section 515 multi-family housing must 
be managed in accordance with the program's management regulation, 7 
CFR part 3560, subpart C. Tenant eligibility is limited to persons who 
qualify as a very low-, low-, or moderate-income household or who are 
eligible under the requirements established to qualify for housing 
benefits provided by sources other than the Agency, such as U.S. 
Department of Housing and Urban Development section 8 assistance or Low 
Income Housing Tax Credit Assistance, when a tenant receives such 
housing benefits. Additional tenant eligibility requirements are 
contained in 7 CFR 3560.152.

II. Award Information

    Public Law 110-5, (February 15, 2007) made funding available for 
loans to private non-profit organizations, or such non-profit 
organizations' affiliate loan funds and State and local housing finance 
agencies, to carry out a housing demonstration program to provide 
revolving loans for the preservation of the section 515 multi-family 
housing portfolio. The total amount of funding available for this 
program is $6,300,769.55. Loans to intermediaries under this 
demonstration program shall have an interest rate of no more than one 
percent and the Secretary of Agriculture may defer the interest and 
principal payment to RHS for up to three years during the first three 
years of the loan. The term of such loans shall not exceed 30 years. 
Funding priority will be given to entities with equal or greater 
matching funds, including housing tax credits for rural housing 
assistance and to entities with experience in the administration of 
revolving loan funds and the preservation of multi-family housing.

III. Eligibility Information

Applicant Eligibility

    (1) Eligibility requirements--Intermediary.
    (a) The types of entities which may become intermediaries are 
private non-profit organizations, which may include faith based 
organizations, or such non-profit organizations' affiliate loan funds 
and State and local housing finance agencies.
    (b) The intermediary must have:
    (i) The legal authority necessary for carrying out the proposed 
loan purposes and for obtaining, giving security for, and repaying the 
proposed loan.
    (ii) A proven record of successfully assisting low-income multi-
family housing projects. Such record will include recent experience in 
loan making and servicing with loans that are similar in nature to 
those proposed for the PRLF demonstration program and a delinquency and 
loss rate acceptable to the Agency. The applicant will be responsible 
for providing such information to the Agency.
    (iii) A staff with loan making and servicing expertise acceptable 
to the Agency.
    (iv) A plan acceptable to the Agency, that the Ultimate recipients 
will only use the funds to preserve or purchase through a transfer and 
assumption 515 housing.
    (c) No loans will be extended to an intermediary unless:
    (i) There is adequate assurance of repayment of the loan evidenced 
by the fiscal and managerial capabilities of the proposed intermediary.
    (ii) The amount of the loan, together with other funds available, 
is adequate to assure completion preservation or revitalization of the 
project or achieve the purposes for which the loan is made.
    (iii) At least 51 percent of the outstanding interest or membership 
in any nonpublic body intermediary must be composed of citizens of the 
United States or individuals who reside in the United States after 
being legally admitted for permanent residence.
    (iv) The Intermediary's prior calendar year audit indicates an 
unqualified audited opinion as a result of the audit which provides a 
statement relating to the accuracy of the financial statements.
    (d) Intermediaries, and the principals of the intermediaries, must 
not be suspended, debarred, or excluded based on the ``List of Parties 
Excluded from Federal Procurement and Nonprocurement Programs.'' In 
addition, intermediaries and their principals must not be delinquent on 
Federal debt or be Federal judgments debtors.
    (e) The intermediary and its principal officers (including 
immediate family) must hold no legal or financial interest or influence 
in the ultimate recipient.
    (2) The intermediary's Debt Service Coverage Ratio (DSCR) must be 
greater than 1.25 for the fiscal year immediately prior to the year of 
application. The DSCR is the financial ratio the loan committee will 
use to determine an applicant's capacity to borrow and service 
additional debt.
    The loan committee will use two methodologies when calculating 
DSCR. The first methodology the loan committee will use is Earnings 
Before Interest and Taxes (EBIT). This is determined by adding net 
profit or net loss to depreciation and interest expense. The loan 
committee will compare the principal and interest payment multiplied by 
the DSCR to the EBIT derived from the applicants consolidated income 
statement. For example, if an applicant requests a loan amount of 
$2,000,000 at a 1 percent interest rate amortized over 30 years, the 
principal and interest payments will be $77,193, annually. Therefore, 
an applicant who requests $2,000,000 needs an EBIT of at least 
$96,491.00 ($77,193 x 1.25) .
    The second methodology used is Net Operating Income (NOI) divided 
by Total Debt Service (TDS) which is the principal and interest. NOI, 
also known as the bottom line, is equal to operating revenues minus 
operating expenses, minus non-operating interest expense or plus non-
operating interest income. TDS is the amount of money necessary to pay 
interest and principal on maturing bonds.
    Eligibility will be determined using methodology 1. Only eligible 
applicants will be scored and ranked. Cost Sharing or Matching. Funding 
priority will be given to entities with equal or greater matching 
funds, including housing tax credits for rural housing assistance. 
Refer to the Selection Criteria section of the NOFA for further 
information on funding priorities.
    (3) Eligibility requirements--Ultimate recipients.
    (a) To be eligible to receive loans from the PRLF, ultimate 
recipients must:
    (i) Currently have a RHS section 515 loan for the property being 
assisted by the PRLF demonstration program, or be a transferee of such 
a loan before receiving any benefits from the PRLF demonstration 
program.
    (ii) Be unable to provide funding to preserve and revitalize 
existing 515 properties the necessary housing from its own resources 
and, except for State or local public agencies and Indian tribes, be 
unable to obtain the necessary credit from other sources upon terms and 
conditions the applicant could reasonably be expected to fulfill.
    (iii) Certify that the ultimate recipient along with its principal 
officers (including their immediate family), hold no legal or financial 
interest or influence in the intermediary.
    (iv) Be in compliance with all Agency program requirements or have 
an Agency approved workout plan in place which will correct a non-
compliance status.
    (b) Any delinquent debt to the Federal Government, by the ultimate 
recipient or any of its principals, shall cause the proposed ultimate 
recipient to be ineligible to receive a loan from the

[[Page 44078]]

PRLF. PRLF loan funds may not be used to satisfy the delinquency.
Equal Opportunity and Nondiscrimination Requirements
    (1) In accordance with the Fair Housing Act, title VI of the Civil 
Rights Act of 1964, the Equal Credit Opportunity Act, the Age 
Discrimination Act of 1975, Executive Order 12898, the Americans with 
Disabilities Act, and Section 504 of the Rehabilitation Act of 1973, 
neither the intermediary nor the Agency will discriminate against any 
employee, proposed intermediary or proposed ultimate recipient on the 
basis of sex, marital status, race, color, religion, national origin, 
age, physical or mental disability (provided the proposed intermediary 
or proposed ultimate recipient has the capacity to contract), because 
all or part of the proposed intermediary's or proposed ultimate 
recipient's income is derived from public assistance of any kind, or 
because the proposed intermediary or proposed ultimate recipient has in 
good faith exercised any right under the Consumer Credit Protection 
Act, with respect to any aspect of a credit transaction anytime Agency 
loan funds are involved.
    (2) The policies and regulations contained in 7 CFR part 1901, 
subpart E apply to this program.
    (3) The Rural Housing Service Administrator will assure that equal 
opportunity and nondiscrimination requirements are met in accordance 
with the Fair Housing Act, title VI of the Civil Rights Act of 1964, 
the Equal Credit Opportunity Act, the Age Discrimination Act of 1975, 
Executive Order 12898, the Americans with Disabilities Act, and Section 
504 of the Rehabilitation Act of 1973.
    (4) All housing must meet the accessibility requirements found at 7 
CFR 3560.60(d).
Other Administrative Requirements
    (1) The following policies and regulations apply to loans to 
intermediaries made in response to this NOFA:
    (a) PRLF intermediaries will be required to provide the Agency with 
the following reports:
    (i) An annual audit;
    (A) The dates of the audit report period need not coincide with 
other reports on the PRLF. Audit reports shall be due 90 days following 
the audit period. Audits must cover all of the intermediary's 
activities. Audits will be performed by an independent certified public 
accountant. An acceptable audit will be performed in accordance with 
Generally Accepted Government Auditing Standards and include such tests 
of the accounting records as the auditor considers necessary in order 
to express an unqualified audited opinion on the financial condition of 
the intermediary.
    (B) It is not intended that audits required by this program be 
separate and apart from audits performed in accordance with State and 
local laws or for other purposes. To the extent feasible, the audit 
work for this program should be done in connection with these other 
audits. Intermediaries covered by OMB Circular A-133 should submit 
audits made in accordance with that circular.
    (ii) Quarterly or semiannual Performance Reports (due 30 days after 
the end of the quarter or half);
    (A) Performance Reports will be required quarterly during the first 
year after loan closing. Thereafter, reports will be required 
semiannually. Also, the Agency may resume requiring quarterly reports 
if the intermediary becomes delinquent in repayment of its loan or 
otherwise fails to fully comply with the provisions of its work plan or 
Loan Agreement, or the Agency determines that the intermediary's PRLF 
is not adequately protected by the current financial status and paying 
capacity of the ultimate recipients.
    (B) These reports shall contain information only on the PRLF, or if 
other funds are included, the PRLF portion shall be segregated from the 
others; and in the case where the intermediary has more than one PRLF 
from the Agency, a separate report shall be made for each PRLF.
    (C) The reports will include, on Standard Form 269, Financial 
Status Report and Standard Form 272, Federal Cash Transaction Report. 
These reports will provide information on the intermediary's lending 
activity, income and expenses, financial condition and a summary of 
names and characteristics of the ultimate recipients the intermediary 
has financed.
    (iii) Annual proposed budget for the following year; and
    (iv) Other reports as the Agency may require from time to time 
regarding the conditions of the loan.
    (b) RHS may consider, on a case by case basis, subordinating its 
security interest on the ultimate recipient's property to the lien of 
the intermediary so that RHS has a junior lien interest when an 
independent appraisal verifies the RHS subordinated lien will continue 
to be fully secured.
    (c) The term of the loan to an ultimate recipient may not exceed 
the remaining term of the RHS loan.
    (d) When loans are made to ultimate recipients for equity purposes, 
Restrictive Use Provisions must be incorporated into the loan 
documents, as outlined in 7 CFR part 3560.662.
    (e) The policies and regulations contained in 7 CFR part 1901, 
subpart F regarding historical and archaeological properties apply to 
all loans funded under this NOFA.
    (f) The policies and regulations contained in 7 CFR part 1940, 
subpart G regarding environmental assessments apply to all loans to 
ultimate recipents funded under this NOFA. Loans to intermediaries 
under this program will be considered a Categorical Exclusion under the 
National Environmental Policy Act, requiring the completion of Form RD 
1940-22, ``Environmental Checklist for Categorical Exclusions,'' by the 
Agency.
    (g) An ``Intergovernmental Review,'' will be conducted in 
accordance with the procedures contained in 7 CFR part 3015, subpart V, 
if the applicant is a cooperative.
    (2) The intermediary agrees to the following:
    (a) To obtain the written Agency approval, before the first lending 
of PRLF funds to an ultimate recipient, of:
    (i) All forms to be used for relending purposes, including 
application forms, loan agreements, promissory notes, and security 
instruments; and
    (ii) Intermediary's policy with regard to the amount and form of 
security to be required.
    (b) To obtain written approval from the Agency before making any 
significant changes in forms, security policy, or the work plan. The 
Agency may approve changes in forms, security policy, or work plans at 
any time upon a written request from the intermediary and determination 
by the Agency that the change will not jeopardize repayment of the loan 
or violate any requirement of this NOFA or other Agency regulations. 
The intermediary must comply with the work plan approved by the Agency 
so long as any portion of the intermediary's PRLF loan is outstandig;
    (c) To allow the Agency to take a security interest in the PRLF, 
including its portfolio of investments derived from the proceeds of the 
loan award, and other rights and interests as the Agency may require;
    (d) To return, as an extra payment on the loan any funds that have 
not been used in accordance with the intermediary's work plan by a date 
2 years from the date of the loan agreement. The intermediary 
acknowledges that the Agency may cancel the approval of any funds not 
yet

[[Page 44079]]

delivered to the intermediary if funds have not been used in accordance 
with the intermediary's work plan within the 2 year period. The Agency, 
at its sole discretion, may allow the intermediary additional time to 
use the loan funds by delaying cancellation of the funds by not more 
than 3 additional years. If any loan funds have not been used by 5 
years from the date of the loan agreement, the approval will be 
canceled for any funds that have not been delivered to the intermediary 
and the intermediary will return, as an extra payment on the loan, any 
funds it has received and not used in accordance with the work plan. In 
accordance with the Agency approved promissory note, regular loan 
payments will be based on the amount of funds actually drawn by the 
intermediary.
    (3) The intermediary will be required to enter into an Agency 
approved loan agreement and promissory note.
    (4) Loans made to the PRLF ultimate recipient must meet the intent 
of providing decent, safe, and sanitary rural housing and be consistent 
with the requirements of title V of the Housing Act of 1949.
    (5) When an intermediary proposes to make a loan from the PRLF to 
an ultimate recipient, Agency concurrence is required prior to final 
approval of the loan. The intermediary must submit a request for Agency 
concurrence of a proposed loan to an ultimate recipient. Such request 
must include:
    (a) Certification by the intermediary that:
    (i) The proposed ultimate recipient is eligible for the loan;
    (ii) The proposed loan is for eligible purposes;
    (iii) The proposed loan complies with all applicable statutes and 
regulations; and
    (iv) Prior to closing the loan to the ultimate recipient, the 
intermediary and its principal officers (including immediate family) 
hold no legal or financial interest or influence in the ultimate 
recipient, and the ultimate recipient and its principal officers 
(including immediate family) hold no legal or financial interest or 
influence in the intermediary.
    (b) Copies of sufficient material from the ultimate recipient's 
application and the intermediary's related files, to allow the Agency 
to determine the:
    (i) Name and address of the ultimate recipient;
    (ii) Loan purposes;
    (iii) Interest rate and term;
    (iv) Location, nature, and scope of the project being financed;
    (v) Other funding included in the project; and
    (vi) Nature and lien priority of the collateral.
    (vii) Environmental impacts of this action. This will include an 
original Form RD 1940-20, ``Request for Environmental Information,'' 
completed and signed by the intermediary. Attached to this form will be 
a statement stipulating the age of the building to be rehabilitated and 
a completed and signed FEMA Form 81-93, ``Standrd Flood Hazard 
Determination.'' If the age of the building is over 50 years old or if 
the building is either on or eligible for inclusion in the National 
Register of Historic Places, then the intermediary will immediately 
contact the Agency to begin section 106 consultation with the State 
Historic Preservation Officer. If the building is located within a 100-
year flood plain, then the intermediary will immediately contact the 
Agency to analyze any effects as outlined in 7 CFR part 1940, subpart 
G, Exhibit C. The intermediary will assist the Agency in any additional 
requirements necessary to complete the environmental review.
    (c) Such other information as the Agency may request on specific 
cases.
    (6) Upon receipt of a request for concurrence in a loan to an 
ultimate recipient the Agency will:
    (a) Review the material submitted by the intermediary for 
consistency with the Agency's preservation and revitalization 
principles which include the following:
    (i) There is a continuing need for the property in the community as 
affordable housing;
    (ii) When the transaction is complete, the property will be owned 
and controlled by eligible section 515 borrowers;
    (iii) The transaction will address the physical needs of the 
property;
    (iv) Existing tenants will not be displaced because of increased 
post transaction rents;
    (v) Post transaction basic rents will not exceed comparable market 
rents; and
    (vi) Any equity loan amount will be supported by a market value 
appraisal.
    (b) Issue a letter concurring with the loan when all requirements 
have been met or notify the intermediary in writing the reasons for 
denial when the Agency determines it is unable to concur in the loan.

IV. Application and Submission Information

    The application process will be two fold: First, all applicants 
will submit proposals to the National Office for Loan Committee review. 
The loan committee will determine borrower eligibility and rank 
applicants according to the criteria established in this NOFA. Only 
eligible borrowers will be scored. The loan committee will select 
proposals for further processing. In the event that a proposal is 
selected for further processing and the applicant declines, the next 
highest ranked unfunded applicant may be selected.
    Second, prior to relending PRLF funds, the State Office in the 
applicant's residence or state where the applicant will be doing its 
intermediary work will provide written approval of all forms to be used 
for relending purposes, including application forms, loan agreements, 
promissory notes, and security instruments. Additionally, the State 
Office will provide written approval of the applicant's binding policy 
with regard to the amount and form of security to be required.
    If an application is accepted for further processing and the loan 
closed, the applicant will be required to comply with the terms of its 
work plan, the loan agreement and the promissory note and any other 
loan closing docs. At the time of loan closing, the Agency and loan 
recipient shall enter into a loan agreement and a promissory note 
acceptable to the Agency.

Application Requirements

    The application must contain the following:
    (1) A summary page, that is double-spaced and not in narrative 
form, that lists the following items.
    (a) Applicant's name.
    (b) Applicant's Taxpayer Identification Number.
    (c) Applicant's address.
    (d) Applicant's telephone number.
    (e) Name of applicant's contact person, telephone number, and 
address.
    (f) Amount of loan requested.
    (2) Form RD 4274-1, ``Application for Loan (Intermediary Relending 
Program).''
    (3) A written work plan and other evidence the Agency requires to 
demonstrate the feasibility of the intermediary's program to meet the 
objectives of this demonstration program. The plan must, at a minimum:
    (a) Document the intermediary's ability to administer this 
demonstration program in accordance with the provisions of this NOFA. 
In order to adequately demonstrate the ability to administer the 
program, the intermediary must provide a complete listing of all 
personnel responsible for administering this program along with a 
statement of their qualifications and experience. The personnel may be 
either members or employees of the intermediary's organization or 
contract

[[Page 44080]]

personnel hired for this purpose. If the personnel are to be contracted 
for, the contract between the intermediary and the entity providing 
such service will be submitted for Agency review, and the terms of the 
contract and its duration must be sufficient to adequately service the 
Agency loan through to its ultimate conclusion. If the Agency 
determines the personnel lack the necessary expertise to administer the 
program, the loan request will be denied;
    (b) Document the intermediary's ability to commit financial 
resources under the control of the intermediary to the establishment of 
the demonstration program. This should include a statement of the 
sources of non-Agency funds for administration of the intermediary's 
operations and financial assistance for projects;
    (c) Demonstrate a need for loan funds. As a minimum, the 
intermediary should identify a sufficient number of proposed and known 
ultimate recipients to justify Agency funding of its loan request, or 
include well developed targeting criteria for ultimate recipients 
consistent with the intermediary's mission and strategy for this 
demonstration program, along with supporting statistical or narrative 
evidence that such prospective recipients exist in sufficient numbers 
to justify Agency funding of the loan request;
    (d) Include a list of proposed fees and other charges it will 
assess the ultimate recipients;
    (e) Demonstrate to Agency satisfaction that the intermediary has 
secured commitments of significant financial support from public 
agencies and private organizations;
    (f) Include the intermediary's plan (specific loan purposes) for 
relending the loan funds. The plan must be of sufficient detail to 
provide the Agency with a complete understanding of what the 
intermediary will accomplish by lending the funds to the ultimate 
recipient and the complete mechanics of how the funds will flow from 
the intermediary to the ultimate recipient. The service area, 
eligibility criteria, loan purposes, fees, rates, terms, collateral 
requirements, limits, priorities, application process, method of 
disposition of the funds to the ultimate recipient, monitoring of the 
ultimate recipient's accomplishments, and reporting requirements by the 
ultimate recipient's management must at least be addressed by the 
intermediary's relending plan;
    (g) Provide a set of goals, strategies, and anticipated outcomes 
for the intermediary's program. Outcomes should be expressed in 
quantitative or observable terms such as low-income housing complexes 
rehabilitated or low-income housing units preserved, and should relate 
to the purpose of this demonstration program; and
    (h) Provide specific information as to whether and how the 
intermediary will ensure that technical assistance is made available to 
ultimate recipients and potential ultimate recipients. Describe the 
qualifications of the technical assistance providers, the nature of 
technical assistance that will be available, and expected and committed 
sources of funding for technical assistance. If other than the 
intermediary itself, describe the organizations providing such 
assistance and the arrangements between such organizations and the 
intermediary.
    (4) A pro forma balance sheet at start-up and projected balance 
sheets for at least 3 additional years; and projected cash flow and 
earnings statements for at least 3 years supported by a list of 
assumptions showing the basis for the projections. The projected 
earnings statement and balance sheet must include one set of 
projections that shows the PRLF must extend to include a year with a 
full annual installment on the PRLF loan.
    (5) A written agreement of the intermediary to the Agency audit 
requirements.
    (6) Form RD 400-4, ``Assurance Agreement.''
    (7) Complete organizational documents, including evidence of 
authority to conduct the proposed activities.
    (8) Latest unqualified audit report.
    (9) Form RD 1910-11, ``Applicant Certification Federal Collection 
Policies for Consumer or Commercial Debts.''
    (10) Form AD-1047, ``Certification Regarding Debarment, Suspension, 
and other Responsibility Matters--Primary Covered Transactions.''
    (11) Exhibit A-1 of RD Instruction 1940-Q, ``Certification for 
Contracts, Grants, and Loans.''
    (12) Copy of the applicant's tax returns three years prior to 
application, and most recent financial statements.
    (13) A separate one-page information sheet listing each of the 
``Application Scoring Criteria'' contained in this Notice, followed by 
the page numbers of all relevant material and documentation that is 
contained in the proposal that supports these criteria. Applicants are 
also encouraged, but not required, to include a checklist of all of the 
application requirements and to have their application indexed and 
tabbed to facilitate the review process.
    (14) Consolidated Financial Statements for the year prior to this 
NOFA.

Funding Restrictions

    Loans made to the PRLF intermediary under this demonstration 
program may not exceed $2,125,000 and may be limited by geographic area 
so that multiple loan recipients are not providing similar services to 
the same service areas.
    Loans made to the PRLF ultimate recipient must meet the intent of 
providing decent, safe, and sanitary rural housing and be consistent 
with the requirements of title V of the Housing Act of 1949.
    Submission address. Applications should be submitted to USDA Rural 
Housing Service; Attention: Henry Searcy, Jr., Senior Loan Specialist, 
Multi-Family Housing Processing Division STOP 0781 (Room 1263-S), or 
Bonnie Edwards-Jackson, Senior Loan Specialist, Multi-Family Housing 
Processing Division, STOP 0781 (Room 1239-S), U.S. Department of 
Agriculture, Rural Housing Service, 1400 Independence Ave., SW., 
Washington, DC 20250-0781 or by telephone at (202) 720-1753 or (202) 
690-0759 or via e-mail, Henry.Searcy@wdc.usda.gov or 
Bonnie.Edwards@wdc.usda.gov. (Please note the phone numbers are not 
toll free numbers.)

V. Application Review Information

    All applications will be evaluated by a loan committee. The loan 
committee will make recommendations to the Agency Administrator 
concerning preliminary eligibility determinations and for the selection 
of applications for further processing based on the selection criteria 
contained in this NOFA and the availability of funds. The Administrator 
will inform applicants of the status of their application within 30 
days of the loan application closing date of the NOFA.

Selection Criteria

    Selection criteria points will be allowed only for factors 
evidenced by well documented, reasonable plans which, in the opinion of 
the Agency, provide assurance that the items have a high probability of 
being accomplished. The points awarded will be as specified in 
paragraphs (1) through (4) of this section. In each case, the 
intermediary's work plan must provide documentation that the selection 
criteria have been met in order to qualify for selection criteria 
points. If an application does not fit one of the categories listed, it 
receives no points for that paragraph.
    (1) Other funds. Points allowed under this paragraph are to be 
based on documented successful history or

[[Page 44081]]

written evidence that the funds are available.
    (a) The intermediary will obtain non-Agency loan or grant funds or 
provide housing tax credits (measured in dollars) to pay part of the 
cost of the ultimate recipients' project cost. The Intermediary shall 
pledge as collateral its PRLF Revolving Fund, including its portfolio 
of investments derived from the proceeds of other funds and this loan 
award.
    Points for the amount of funds from other sources are as follows:
    (i) At least 10% but less than 25% of the total project cost--5 
points;
    (ii) At least 25% but less than 50% of the total project cost--10 
points; or
    (iii) 50% or more of the total project cost--15 points.
    (b) The intermediary will provide loans to the ultimate recipient 
from its own funds (not loan or grant) to pay part of the ultimate 
recipients' project cost. The amount of the intermediary's own funds 
will average:
    (i) At least 10% but less than 25% of the total project costs--5 
points;
    (ii) At least 25% but less than 50% of total project costs--10 
points; or
    (iii) 50% or more of total project costs--15 points.
    (2) Intermediary contribution. The Intermediary will contribute its 
own funds not derived from the Agency. The non-Agency contributed funds 
will be placed in a separate account from the PRLF loan account. The 
Intermediary shall contribute funds not derived from the Agency into a 
separate bank account or accounts according to their ``work plan''. 
These funds are to be placed into an interest bearing counter-
signature-account until the PRLF revolves. No other funds shall be 
commingled with such money.
    The amount of non-Agency derived funds contributed to the PRLF will 
equal the following percentage of the Agency PRLF loan:
    (a) At least 5% but less than 15%--15 points;
    (b) At least 15% but less than 25%--30 points; or
    (c) 25% or more--50 points.
    (3) Experience. The intermediary has actual experience in the 
administration of revolving loan funds and the preservation of multi-
family housing, with a successful record, for the following number of 
full years. Applicants must have actual experience in both the 
administration of revolving loan funds and the preservation of multi-
family housing in order to qualify for points under this selection 
criteria. If the number of years of experience differs between the two 
types of above listed experience, the type of experience with the 
lesser number of years will be used for this selection criteria.
    (a) At least 1 but less than 3 years--5 points;
    (b) At least 3 but less than 5 years--10 points;
    (c) At least 5 but less than 10 years--20 points; or
    (d) 10 or more years--30 points.
    (4) Administrative. The Administrator may assign up to 25 
additional points to an application to account for the following items 
not adequately covered by the other priority criteria set out in this 
section. The items that will be considered are the amount of funds 
requested in relation to the amount of need; a particularly successful 
affordable housing development record; a service area with no other 
PRLF coverage; a service area with severe affordable housing problems; 
a service area with emergency conditions caused by a natural disaster; 
an innovative proposal; the quality of the proposed program; a work 
plan that is in accord with a strategic plan, particularly a plan 
prepared as part of a request for an Empowerment Zone/Enterprise 
Community designation; or excellent utilization of an existing 
revolving loan fund program.

VI. Appeal Process

    All adverse determinations regarding applicant eligibility and the 
awarding of points as part of the selection process are appealable. 
Instructions on the appeal process will be provided at the time an 
applicant is notified of the adverse action.

    Dated: July 30, 2007.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. 07-3841 Filed 8-6-07; 8:45 am]
BILLING CODE 3410-XV-M