Notice for Request for Proposals for Loan Guarantees under the Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal Year 2009, 3551-3558 [E9-1074]
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Federal Register / Vol. 74, No. 12 / Wednesday, January 21, 2009 / Notices
Washington, Room 6866 South
Agriculture Building, STOP 3225, 1400
Independence Avenue, SW.,
Washington, DC 20250–3225.
Copies of the presentations and any
additional written comments that are
received within the 15 days following
the public meeting will be available for
review at https://www.usda.gov/wps/
portal/!ut/p/_s.7_0_A/7_0_2KD?navid=
FARMBILL2008.
Participants who require a sign
language interpreter or other special
accommodations should contact Lori
Washington as directed above.
The oral and written information
obtained from interested parties will be
considered in implementing provisions
of Sections 6022 and 6023. In order to
assure that the Act is implemented to
meet constituent needs, USDA, Rural
Development is sponsoring a listening
forum and soliciting written comments
to encourage public input and
comments and in making
recommendations on program
implementation. All comments are
welcome, and no attempt will be made
to establish a consensus.
Non-Discrimination Statement
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‘‘The U.S. Department of Agriculture
(USDA) prohibits discrimination in all
its programs and activities on the basis
of race, color, national origin, age,
disability, and where applicable, sex,
marital status, familial status, parental
status, religion, sexual orientation,
genetic information, political beliefs,
reprisal, or because all or part of an
individual’s income is derived from any
public assistance program. (Not all
prohibited bases apply to all programs).
Persons with disabilities who require
alternative means for communication of
program information (Braille, large
print, audiotape, etc.) should contact
USDA’s TARGET Center at (202) 720–
2600 (voice and TDD). To file a
complaint of discrimination, write to
USDA, Director, Office of Adjudication
and Compliance, 1400 Independence
Avenue, SW., Washington, DC 20250–
9410, or call (800) 795–3272 (voice), or
(202) 720–6382 (TDD). USDA is an
equal opportunity provider, employer,
and lender.’’
Dated: January 9, 2009.
Ben Anderson,
Administrator, Rural Business—Cooperative
Service.
[FR Doc. E9–1014 Filed 1–16–09; 8:45 am]
BILLING CODE 3410–XY–P
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice for Request for Proposals for
Loan Guarantees under the Section
538 Guaranteed Rural Rental Housing
Program (GRRHP) for Fiscal Year 2009
Rural Housing Service, USDA.
Notice.
AGENCY:
ACTION:
SUMMARY: This is a request for proposals
for loan guarantees under the section
538 Guaranteed Rural Rental Housing
Program (GRRHP) pursuant to 7 CFR
3565.4 for Fiscal Year (FY) 2009 subject
to the availability of funding. FY 2008
funding for the section 538 program was
$129,090,000.
For FY 2009, there are approximately
$2 million in additional funds for
GRRHP properties that are located in a
presidentially declared disaster area.
Disaster funds may be used for new
construction or repair and
rehabilitation. To be eligible for these
disaster funds, a property must be
located in a county affected by
hurricanes, floods, and other natural
disasters occurring during 2008 for
which the President declared a major
disaster under Title IV of the Robert T.
Stafford and Disaster and Emergency
Assistance of 1974. Applicants must
notify the Rural Development contact
person for the respective state, as
indicated in the ‘‘Submission Address’’
section of this notice, that their project
is located in an eligible disaster zone
and that they want the project
considered for these funds.
Applicants for both general program
funding or disaster funds will submit
proposals in the form of ‘‘RESPONSES.’’
The commitment of program dollars
will be made to applicants of selected
responses that have fulfilled the
necessary requirements for obligation.
Expenses incurred in developing
applications will be at the applicant’s
risk. The following paragraphs outline
the timeframes, eligibility requirements,
lender responsibilities, and the overall
response and application processes.
The GRRHP operates under 7 CFR
part 3565. The GRRHP Origination and
Servicing Handbook (HB–1–3565) is
available to provide lenders and the
general public with guidance on
program administration. HB–1–3565,
which contains a copy of 7 CFR part
3565 in Appendix 1, can be found at the
Agency’s Instructions Web site address
https://www.rurdev.usda.gov/regs/
hblist.html#hbw6.
Eligible lenders are invited to submit
responses for the new construction and
the acquisition with rehabilitation of
affordable rural rental housing.
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Also eligible is the revitalization,
repair, and transfer (as stipulated in 7
CFR 3560.406) of existing direct section
515 housing (transfer costs are subject to
Agency approval and must be an
eligible use of loan proceeds as listed in
7 CFR 3565.205), and properties
involved in the Agency’s multi-family
preservation and revitalization program
(MPR). Equity payments, as stipulated
in 7 CFR 3560.406, in connection with
the transfer of existing direct section
515 housing, are an eligible use of
guaranteed loan proceeds. In order to be
considered, the transfer of direct section
515 housing and MPR projects must
need repairs and undergo revitalization
of a minimum of $6,500 per unit. A
Section 538 guaranteed loan used in
conjunction with a section 515 transfer
that includes an equity payment and
that qualifies for an interest credit
award, will receive interest credit
according to the following schedule:
Guaranteed loan amount
Maximum interest
credit basis points
award
Over $1,000,000 .............
$1,000,000 or less ..........
$750,000 or less .............
$600,000 or less .............
$450,000 or less .............
$300,000 or less .............
0
50
100
150
200
250
The ‘‘Maximum Interest Credit Basis
Points Award’’ is applied to the whole
loan amount, therefore a qualifying
$600,000 loan guarantee for example,
would be awarded 150 interest credit
basis points for the whole $600,000 (not,
250 interest credit basis points for the
first $300,000, 200 interest credit basis
points for the next $150,000 up to
$450,000, and 150 interest credit basis
points for the next $150,000 up to
$600,000).
The Agency will review responses
submitted by eligible lenders, on the
lender’s letterhead, and signed by both
the prospective borrower and lender.
Although a complete application is not
required in response to this Notice of
request for proposals, eligible lenders
may submit a complete application
concurrently with the response.
Submitting a complete application will
not have any effect on the respondent’s
NOFA response score.
DATES: As long as funds remain
available, eligible responses to this
notice will be accepted and eligible
requests will be obligated per this
guidance until September 28, 2009,
12:00 P.M. Eastern Time. Selected
responses that develop into complete
applications and meet all Federal
environmental requirements will
receive commitments to the extent an
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appropriation act provides funding for
GRRHP for FY 2009 until all funds are
expended. A notice will be placed in the
Federal Register if all FY 2009 funds are
committed prior to September 28, 2009.
The Agency will select the responses
that meet eligibility criteria and invite
lenders to submit complete applications
to the Agency. Those responses that are
selected that subsequently submit
complete applications that meet all
program requirements and are received
prior to or on March 31, 2009, but score
less than 25 points, or score 25 points
or more, but have a development cost
ratio equal to or greater than 70 percent,
may be selected for obligation after
March 31, 2009, with the highest
scoring responses receiving priority
subject to availability of funds. After
March 31, 2009, responses that develop
into complete applications that meet all
program requirements will be selected
for further processing regardless of
score, subject to the availability of
funding.
The USDA Rural Development will
prioritize the obligation requests
received after March 31, 2009, using the
highest score and the procedures
outlined as follows. Once a complete
application is received and approved by
the State Office, an obligation request
for 2009 funds will be submitted [via
fax] by the State Office to the National
Office. Obligation requests submitted to
the National Office will be accumulated,
but not obligated, throughout the week
until the weekly obligation request
submission deadline of midnight
Eastern Time every Thursday. To the
extent that funds remain available, the
National Office will obligate the
requests accumulated through the
weekly request submission deadline of
the previous week by the following
Tuesday (i.e., requests received from
Friday, May 15, 2009, to Thursday, May
21, 2009, will be obligated by Tuesday,
May 26, 2009). However, requests
received prior to March 31, 2009, that
are not eligible for obligation until after
March 31, 2009, will be obligated no
earlier than Friday, April 3, 2008. Funds
will be allocated in scoring order, with
the highest scoring requests being
obligated first, until all funds are
exhausted. In the event of a tie, priority
will be given to the request for the
project that: 1st—has the highest
percentage of leveraging (lowest Loan to
Cost); 2nd—is in the smaller rural
community.
Eligible lenders mailing a response or
application must provide sufficient time
to permit delivery to the Submission
Address on or before the closing
deadline date and time. Acceptance by
a U.S. Post Office or private mailer does
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not constitute delivery. Postage due
responses and applications will not be
accepted.
Submission Address: Eligible lenders
will send responses to the contact
person in the State Office where the
project will be located. The lender will
also send a copy of its response (copies
of ‘‘Lender Certification’’ letter and
‘‘Project Specific Data’’ sheets only; do
not include any application supporting
documentation, i.e., market studies,
plans/specs, etc.) to: Tammy S. Daniels,
Financial and Loan Analyst, USDA
Rural Development Guaranteed Rural
Rental Housing Program, Multi-Family
Housing Guaranteed Loan Division, U.S.
Department of Agriculture, South
Agriculture Building, Room 1265, STOP
0781, 1400 Independence Avenue, SW.,
Washington, DC 20250–0781.
USDA Rural Development State
Offices, their addresses, telephone
numbers, and person to contact follows:
[this information may also be found at
https://www.rurdev.usda.gov/
recd_map.html].
Note: Telephone numbers listed are not
toll-free.
Alabama State Office: Suite 601,
Sterling Centre, 4121 Carmichael
Road, Montgomery, AL 36106–3683,
(334) 279–3455, TDD (334) 279–3495,
Vann L. McCloud.
Alaska State Office: 800 West Evergreen,
Suite 201, Palmer, AK 99645, (907)
761–7740, TDD (907) 761–8905,
Deborah Davis.
Arizona State Office: Phoenix
Courthouse and Federal Building, 230
North First Ave., Suite 206, Phoenix,
AZ 85003–1706, (602) 280–8768, TDD
(602) 280–8706, Carol Torres.
Arkansas State Office: 700 W. Capitol
Ave., Room 3416, Little Rock, AR
72201–3225, (501) 301–3250, TDD
(501) 301–3279, Gregory Kemper.
California State Office: 430 G Street,
#4169, Davis, CA 95616–4169, (530)
792–5830, TDD (530) 792–5848,
Stephen Nnodim.
Colorado State Office: 655 Parfet Street,
Room E100, Lakewood, CO 80215,
(720) 544–2923, TDD (800) 659–2656,
Mary Summerfield.
Connecticut: Served by Massachusetts
State Office.
Delaware and Maryland State Office:
1221 College Park Drive, Suite 200,
Dover, DE 19904, (302) 857–3600,
TDD (302) 857–3585, Patricia M.
Baker.
Florida & Virgin Islands State Office:
4440 N.W. 25th Place, Gainesville, FL
32606–6563, (352) 338–3465, TDD
(352) 338–3499, Elizabeth M.
Whitaker.
Georgia State Office: Stephens Federal
Building, 355 E. Hancock Avenue,
PO 00000
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Athens, GA 30601–2768, (706) 546–
2164, TDD (706) 546–2034, Wayne
Rogers.
Hawaii State Office (Services all Hawaii,
American Samoa, Guam, and Western
Pacific): Room 311, Federal Building,
154 Waianuenue Avenue, Hilo, HI
96720, (808) 933–8305, TDD (808)
´ ´
541–2600, Don Etes.
Idaho State Office: Suite A1, 9173 West
Barnes Dr., Boise, ID 83709, (208)
378–5630, TDD (208) 378–5644, Roni
Atkins.
Illinois State Office: 2118 West Park
Court, Suite A, Champaign, IL 61821–
2986, (217) 403–6222, TDD (217) 403–
6240, Barry L. Ramsey.
Indiana State Office: 5975 Lakeside
Boulevard, Indianapolis, IN 46278,
(317) 290–3100 (ext. 413), TDD (317)
290–3343, Paul Neumann.
Iowa State Office: 210 Walnut Street,
Room 873, Des Moines, IA 50309,
(515) 284–4666, TDD (515) 284–4858,
Heather Honkomp.
Kansas State Office: 1303 SW First
American Place, Suite 100, Topeka,
KS 66604–4040, (785) 271–2718, TDD
(785) 271–2767, Tim Rogers.
Kentucky State Office: 771 Corporate
Drive, Suite 200, Lexington, KY
40503, (859) 224–7325, TDD (859)
224–7422, Paul Higgins.
Louisiana State Office: 3727
Government Street, Alexandria, LA
71302, (318) 473–7962, TDD (318)
473–7655, Yvonne R. Emerson.
Maine State Office: 967 Illinois Ave.,
Suite 4, PO Box 405, Bangor, ME
04402–0405, (207) 990–9110, TDD
(207) 942–7331, Dale D. Holmes.
Maryland: Served by Delaware State
Office.
Massachusetts, Connecticut, & Rhode
Island State Office: 451 West Street,
Amherst, MA 01002, (413) 253–4333,
TDD (413) 253–4590, Arlene Nunes or
Paul Geoffroy.
Michigan State Office: 3001 Coolidge
Road, Suite 200, East Lansing, MI
48823, (517) 324–5192, TDD (517)
337–6795, Ghulam R. Sumbal.
Minnesota State Office: 375 Jackson
Street Building, Suite 410, St. Paul,
MN 55101–1853, (651) 602–7804,
TDD (651) 602–7830, Tom Osborne.
Mississippi State Office: Federal
Building, Suite 831, 100 W. Capitol
Street, Jackson, MS 39269, (601) 965–
4326, TDD (601) 965–5850, Darnella
Smith-Murray.
Missouri State Office: 601 Business
Loop 70 West, Parkade Center, Suite
235, Columbia, MO 65203, (573) 876–
0990, TDD (573) 876–9480, Anita J.
Dunning.
Montana State Office: 900 Technology
Blvd., Suite B, Bozeman, MT 59715,
(406) 585–2565, TDD (406) 585–2562,
Deborah Chorlton.
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Nebraska State Office: Federal Building,
Room 152, 100 Centennial Mall N.,
Lincoln, NE 68508, (402) 437–5594,
TDD (402) 437–5093, Mike Buethe.
Nevada State Office: 1390 South Curry
Street, Carson City, NV 89703–9910,
(775) 887–1222 (ext. 25), TDD (775)
885–0633, William Brewer.
New Hampshire State Office: Concord
Center, Suite 218, Box 317, 10 Ferry
Street, Concord, NH 03301–5004,
(603) 223–6046, TDD (603) 229–0536,
Robert McCarthy.
New Jersey State Office: 5th Floor
North, Suite 500, 8000 Midlantic Dr.,
Mt. Laurel, NJ 08054, (856) 787–7740,
TDD (856) 787–7730, George Hyatt, Jr.
New Mexico State Office: 6200 Jefferson
St., NE., Room 255, Albuquerque, NM
87109, (505) 761–4944, TDD (505)
761–4938, Art Garcia.
New York State Office: The Galleries of
Syracuse, 441 S. Salina Street, Suite
357, 5th Floor, Syracuse, NY 13202,
(315) 477–6419, TDD (315) 477–6447,
George N. Von Pless.
North Carolina State Office: 4405 Bland
Road, Suite 260, Raleigh, NC 27609,
(919) 873–2063, TDD (919) 873–2003,
William Hobbs.
North Dakota State Office: Federal
Building, Room 208, 220 East Rosser,
PO Box 1737, Bismarck, ND 58502,
(701) 530–2049, TDD (701) 530–2113,
Mark Wax.
Ohio State Office: Federal Building,
Room 507, 200 North High Street,
Columbus, OH 43215–2477, (614)
255–2418, TDD (614) 255–2554,
Gerald Arnott.
Oklahoma State Office: 100 USDA, Suite
108, Stillwater, OK 74074–2654, (405)
742–1070, TDD (405) 742–1007,
Tommy Earls.
Oregon State Office: 101 SW Main, Suite
1410, Portland, OR 97204–3222, (503)
414–3353, TDD (503) 414–3387, Rod
Hansen.
Pennsylvania State Office: One Credit
Union Place, Suite 330, Harrisburg,
PA 17110–2996, (717) 237–2281, TDD
(717) 237–2261, Frank Wetherhold.
Puerto Rico State Office: 654 Munoz
Rivera Avenue, IBM Plaza, Suite 601,
Hato Rey, PR 00918, (787) 766–5095
(ext. 249), TDD (787) 766–5332, Pedro
Gomez or Lourdes Colon.
Rhode Island: Served by Massachusetts
State Office.
South Carolina State Office: Strom
Thurmond Federal Building, 1835
Assembly Street, Room 1007,
Columbia, SC 29201, (803) 253–3432,
TDD (803) 765–5697, Larry D. Floyd.
South Dakota State Office: Federal
Building, Room 210, 200 Fourth
Street, SW., Huron, SD 57350, (605)
352–1132, TDD (605) 352–1147, Roger
Hazuka or Pam Reilly.
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Tennessee State Office: Suite 300, 3322
West End Avenue, Nashville, TN
37203–1084, (615) 783–1375, TDD
(615) 783–1397, Don Harris.
Texas State Office: Federal Building,
Suite 102, 101 South Main, Temple,
TX 76501, (254) 742–9758, TDD (254)
742–9712, Leon Carey or Michael
Canales.
Utah State Office: Wallace F. Bennett
Federal Building, 125 S. State Street,
Room 4311, Salt Lake City, UT
84147–0350, (801) 524–4325, TDD
(801) 524–3309, David E. Brown.
Vermont State Office: City Center, 3rd
Floor, 89 Main Street, Montpelier, VT
05602, (802) 828–6026, TDD (802)
223–6365, Heidi Setien.
Virgin Islands: Served by Florida State
Office,
Virginia State Office: Culpeper Building,
Suite 238, 1606 Santa Rosa Road,
Richmond, VA 23229, (804) 287–
1596, TDD (804) 287–1753, CJ
Michels.
Washington State Office: 1835 Black
Lake Blvd., Suite B, Olympia, WA
98512, (360) 704–7730, TDD (360)
704–7760, Robert Lund.
Western Pacific Territories: Served by
Hawaii State Office.
West Virginia State Office: Federal
Building, 75 High Street, Room 320,
Morgantown, WV 26505–7500, (304)
284–4872, TDD (304) 284–4836,
Dianne Crysler.
Wisconsin State Office: 4949 Kirschling
Court, Stevens Point, WI 54481, (715)
345–7600, TDD (715) 345–7614, Dave
Schwobe.
Wyoming State Office: PO Box 11005,
Casper, WY 82602, (307) 233–6715,
TDD (307) 233–6733, Alan Brooks.
FOR FURTHER INFORMATION CONTACT:
Tammy S. Daniels, Financial and Loan
Analyst, USDA Rural Development
Guaranteed Rural Rental Housing
Program, Multi-Family Housing
Guaranteed Loan Division, U.S.
Department of Agriculture, South
Agriculture Building, Room 1271, STOP
0781, 1400 Independence Avenue, SW.,
Washington, DC 20250–0781. E-mail:
tammy.daniels@wdc.usda.gov.
Telephone: (202) 720–0021. This
number is not toll-free. Hearing or
speech-impaired persons may access
that number by calling the Federal
Information Relay Service toll-free at
(800) 877–8339.
Eligiblity of Prior Year Selected Notice
of Funding Availability Responses: FY
2008 NOFA response selections that did
not develop into complete applications
within the time constraints stipulated
by the corresponding State Office have
been cancelled. A new response for the
project may be submitted subject to the
conditions of this Notice.
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FY 2008 NOFA responses that were
selected by the Agency, with a complete
application (including all Federal
environmental documents required by 7
CFR part 1940, subpart G, a Form RD
3565–1, and the $2,500 application fee)
submitted by the lender within 90 days
from the date of notification of response
selection (unless an extension was
granted by the State office), will be
eligible for FY 2009 program dollars and
will compete for available FY 2009
funds without having to complete a FY
2009 response.
General Program Information
Program Purpose: The purpose of the
GRRHP is to increase the supply of
affordable rural rental housing through
the use of loan guarantees that
encourage partnerships between the
Agency, private lenders, and public
agencies.
Responses Must be Submitted by: The
Agency will only accept responses from
GRRHP eligible or approved lenders as
described in 7 CFR 3565.102 and
3565.103, respectively.
Qualifying Properties: Qualifying
properties include new construction for
multi-family housing units and the
acquisition of existing structures with a
minimum per unit rehabilitation
expenditure requirement in accordance
with 7 CFR 3565.252.
Also eligible is the revitalization,
repair and transfer (as stipulated in 7
CFR 3560.406) of existing direct section
515 housing (transfer costs are subject to
Agency approval and must be an
eligible use of loan proceeds as listed in
7 CFR 3565.205) and properties
involved in the Agency’s MPR program.
Equity payment, as stipulated 7 CFR
3560.406, in the transfer of existing
direct section 515 housing, is an eligible
use of guaranteed loan proceeds. In
order to be considered, the transfer of
direct section 515 housing and MPR
projects must need repairs and undergo
revitalization of a minimum of $6,500
per unit.
Eligible Financing Sources: Any form
of Federal, state, and conventional
sources of financing can be used in
conjunction with the loan guarantee,
including Home Investment Partnership
Program (HOME) grant funds, tax
exempt bonds, and low income housing
tax credits.
Maximum Guarantee: The Agency
can guarantee the ‘‘permanent’’ loan.
The Agency can only guarantee
construction advances for the
construction of the property if a
guarantee for the permanent loan is
requested for the same property. The
Agency cannot, however, guarantee only
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the ‘‘construction’’ advances for the
construction of a property.
The maximum guarantee for a
permanent loan will be 90 percent of the
unpaid principal and interest up to
default and accrued interest 90 calendar
days from the date the liquidation plan
is approved by the Agency, as defined
in 7 CFR 3565.452. Penalties incurred as
a result of default are not covered by the
guarantee. The Agency may provide a
lesser guarantee based upon its
evaluation of the credit quality of the
loan. The Agency liability under any
guarantee will decrease or increase, in
proportion to any decrease or increase
in the amount of the unpaid portion of
the loan, up to the maximum amount
specified in the Loan Note Guarantee.
The maximum guarantee of
construction advances will not at any
time exceed the lesser of 90 percent of
the amount of principal and interest up
to default advanced for eligible uses of
loan proceeds or 90 percent of the
original principal amount and interest
up to default of the loan. Penalties
incurred as a result of default are not
covered by the guarantee. The Agency
may provide a lesser guarantee based
upon its evaluation of the credit quality
of the loan.
Reimbursement of Losses: Any losses
will be split on a pro-rata basis between
the lender and the Agency from the first
dollar lost.
Interest Credit: The Housing and
Recovery Act of 2008 (HERA) made
changes to several affordable housing
programs. One of the changes was the
elimination of the reference to the
Applicable Federal Rate (AFR) within
section 42(i)(2)(D) of the Internal
Revenue Code of 1986. The change in
the tax code has an impact on the
Section 538 GRRHP. Prior to the HERA,
GRRHP used the AFR to calculate the
effective rate to the borrower through
the Agency’s payment of interest credit.
Interest credit was awarded by the
Agency to bring the effective interest
rate of the loan to the AFR. Since the
reference to the AFR in section
42(i)(2)(D) of the tax code was
eliminated by HERA, the section 538
reference to the AFR is no longer
applicable. To date the Congress has not
made a corresponding change to section
538 of the Housing Act of 1949,
therefore the Agency is providing an
alternative method of applying Interest
Credit.
Until such time appropriate
legislative and regulatory changes to the
law and regulation governing the
section 538 program can be effected, the
program will proceed under the
following interim guidance:
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18:54 Jan 16, 2009
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All loan guarantees obligated under the
Fiscal Year 2009 NOFA will apply the
interest credit basis points awarded to the
note rate negotiated between the borrower
and the lender (i.e., 7% note rate—250
interest credit basis points = 4.5% effective
note rate to the borrower).
At least 20 percent of all loans made
during the fiscal year must receive
interest credit. Requests for interest
credit must be made in the response to
the NOFA. Lenders are not permitted to
make requests for interest credit after
the selection process has taken place.
When interest credit is requested,
lenders must state in the response the
maximum number of basis points that
will be used to calculate the interest.
Priority points will be awarded only to
those responses submitting proposed
interest rates equal to or less than 250
basis points. Any response submitted
that exceeds 250 basis points will
receive a deduction of 20 points from its
Priority Score (refer to ‘‘Scoring the
Priority Criteria for Selection of
Projects’’ section of this Notice). An
increasing amount of points will be
deducted from the Priority Score of any
response requesting 300 or more basis
points.
Due to limited funding, and in order
to distribute interest credit assistance as
broadly as possible and minimize
program costs, the Agency will limit the
interest credit to $1.5 million of the
guaranteed loan funds per project. For
example, if an eligible request were
made for interest credit on a loan of $2.5
million, up to $1.5 million of the loan
would receive interest credit. Interest
credit is only available for the
permanent loan (not construction
loans). Lenders with projects that are
viable with or without interest credit are
encouraged to submit a response
reflecting financial and market
feasibility under both funding options.
Responses requesting consideration
under both options will not affect
interest credit selection. Due to limited
interest credit funds and the
responsibility of USDA Rural
Development to target and give priority
to rural areas most in need, responses
requesting interest credit must score a
minimum of 55 points under the criteria
established in this Notice.
Surcharges for Guarantee of
Construction Advances: There is no
surcharge for the guarantee of
construction advances for FY 2009.
Program Fees for FY 2009: As a
condition of receiving a loan guarantee,
the Agency will charge the following
guarantee fees to the lender.
(1) Initial guarantee fee. The Agency
will charge an initial guarantee fee equal
to one percent of the guaranteed loan
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Sfmt 4703
amount. For purposes of calculating this
fee, the guaranteed loan amount is the
product of the percentage of the
guarantee times the initial principal
amount of the guaranteed loan.
(2) Annual guarantee fee. An annual
guarantee fee of at least 50 basis points
(one-half percent) of the outstanding
principal amount of the loan as of
December 31 will be charged each year
or portion of a year that the guarantee
is in effect.
(3) There is a non-refundable
application fee of $2,500 when the
application is submitted.
(4) There is a flat fee of $500 when a
lender requests USDA Rural
Development to extend the term of a
guarantee commitment.
(5) There is a flat fee of $500 when a
lender requests USDA Rural
Development to reopen an application
when a commitment has expired.
(6) There is a flat fee of $1,250 when
a lender requests USDA Rural
Development to approve the transfer of
property and assumption of the loan to
an eligible prospective borrower.
(7) There is no lender application fee
for lender approval in FY 2009.
Eligible Lenders: An eligible lender
for the section 538 GRRHP as required
by 7 CFR 3565.102 must be a licensed
business entity or Housing Finance
Agency (HFA) in good standing in the
state or states where it conducts
business. Lender eligibility
requirements are contained in 7 CFR
3565.102. Please review 7 CFR 3565.102
for a complete list of all of the criteria.
Below is a list of some of the eligible
lender criteria under 7 CFR 3565.102:
(1) Licensed business entity that
meets the qualifications and has the
approval of the Secretary of Housing
and Urban Development (HUD) to make
multi-family housing loans that are
insured under the National Housing
Act. A complete list of HUD approved
lenders can be found on the HUD Web
site at https://www.hud.gov.
(2) A licensed business entity that
meets the qualifications and has the
approval of the Ginnie Mae or Freddie
Mac or Fannie Mae corporations to
make multi-family housing loans that
are sold to the same corporations. A
complete list of Freddie Mac approved
lenders can be found in Freddie Mac’s
Web site at https://www.freddiemac.com.
Fannie Mae approved lenders are found
at https://www.fanniemae.com. For a list
of Ginnie Mae issuers, contact Ginnie
Mae at https://www.ginniemae.gov.
(3) A state or local HFA with a toptier rating from Moody’s or Standard &
Poors, or member of the Federal Home
Loan Bank system, and the
demonstrated ability to underwrite,
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originate, process, close, service,
manage, and dispose of multi-family
housing loans in a prudent manner.
(4) Be a GRRHP approved lender,
defined as an entity with a current
executed multi-family housing Lender’s
Agreement with USDA Rural
Development.
(5) Lenders that can demonstrate the
capacity to underwrite, originate,
process, close, service, manage, and
dispose of multi-family housing loans in
a prudent manner. In order to be
approved the lender will have to have
an acceptable level of financial
soundness as determined by a lender
rating service. The submission of
materials demonstrating capacity will be
required if the lender’s response is
selected. Lenders who are otherwise
ineligible may become eligible if they
maintain a correspondent relationship
with an eligible lender that does have
the capacity to underwrite, originate,
process, close, service, manage, and
dispose of multi-family housing loans in
a prudent manner. In this case, the
eligible lender must submit the response
and application on company letterhead.
All contractual and legal documentation
will be signed between USDA Rural
Development and the lender that
submitted the response and application.
GRRHP Lender Approval Application:
Lenders whose responses are selected
will be notified by the USDA Rural
Development to submit a request for
GRRHP lender approval application
within 30 days of notification. Lenders
who request GRRHP approval must
meet the standards in the 7 CFR
3565.102 and 103. Lenders that have
received GRRHP lender approval in the
past and are in good standing do not
need to reapply for GRRHP lender
approval. Requirements for retaining
approved lender status are defined in 7
CFR 3565.105.
Submission of Documentation for
GRRHP Lender Approval: All lenders
that have not yet received GRRHP
lender approval must submit a complete
lender application to: Director, MultiFamily Housing Guaranteed Loan
Division, Rural Development, U.S.
Department of Agriculture, Room 1263,
STOP 0781, 1400 Independence
Avenue, SW., Washington, DC 20250–
0781. Lender applications must be
identified as ‘‘Section 538 Guaranteed
Rural Rental Housing Program’’ on the
envelope.
As the Section 538 program does not
have a formal application form, a
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18:54 Jan 16, 2009
Jkt 217001
complete application consists of a cover
letter requesting GRRHP lender
approval and the following
documentation:
(1) Request for GRRHP lender
approval on the lender’s letterhead;
(2) Lenders who are HUD, Ginnie
Mae, Freddie Mac or Fannie Mae multifamily approved lenders are required to
show evidence of this status, such as a
copy of a letter designating the
distinction;
(3) The lender’s Loan Origination,
Loan Servicing, and Portfolio
Management Handbooks. These
handbooks should detail the lender’s
policies and procedures on loan
origination through termination for
multi-family loans;
(4) Portfolio performance data;
(5) Copies of standard documents that
will be used in processing GRRHP
loans;
(6) Resumes and qualifications of key
personnel that will be involved in the
GRRHP;
(7) Identification of standards and
processes that deviate from those
outlined in the GRRHP Origination and
Servicing Handbook (HB–1–3565) found
at https://www.rurdev.usda.gov/regs/
hblist.html#hbw6.
(8) A copy of the most recent audited
financial statements;
(9) Lender specific information
including: (a) Legal name and address,
(b) list of principal officers and their
responsibilities, (c) certification that the
officers and principals of the lender
have not been debarred or suspended
from Federal programs, (d) Form AD
1047, (e) certification that the lender is
not in default or delinquent on any
Federal debt or loan, or possesses an
outstanding finding of deficiency in a
Federal housing program, and
(f) certification of the lender’s credit
rating; and
(10) Documentation on bonding and
insurance.
Additional Construction Lender
Requirements
The Agency can guarantee the
‘‘permanent’’ loan. The Agency can only
guarantee construction advances for the
construction of the property if a
guarantee for the permanent loan is
requested for the same property. The
Agency cannot, however, guarantee only
the ‘‘construction’’ advances for the
construction of a property.
A lender making a construction loan
must demonstrate an ability to originate
and service construction loans, in
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3555
addition to meeting the other
requirements of 7 CFR part 3565,
subpart C. A lender who originates and
services construction/permanent loans
must agree to manage the construction
and draw activities in the manner
described in the Chapter 5 of HB–1–
3565. Lenders must meet either the
basic or the demonstrated eligibility test
in paragraphs 2.4 and 2.5 of HB–1–3565
and the lender approval requirements
set forth in paragraph 2.6 of HB–1–3565.
Lenders must clearly identify policies
and processes for multi-family
construction lending. Lenders must also
provide a summary of their multi-family
construction lending activity in the
same form as specified in paragraph 2.5
of HB–1–3565. The Agency may, at its
discretion, consider other types of
construction loans—such as those for
commercial development—as a
substitute for multi-family construction
experience.
Lender Responsibilities: Lenders will
be responsible for the full range of loan
origination, underwriting, management,
servicing, compliance issues, and
property disposition activities
associated with their projects. The
lender will be expected to provide
guidance to the prospective borrower on
the Agency requirements during the
application phase. Once the guarantee is
issued, the lender is expected to service
each loan it underwrites or contract
these services to another capable entity.
Discussion of Notice Responses
Content of Notice Responses: All
responses require lender information
and project specific data. Incomplete
responses will not be considered for
funding. Lenders will be notified of
incomplete responses. Complete
responses are to include a signed cover
letter from the lender on the lender’s
letterhead and the following
information:
(1) Lender Certification—The lender
must certify that the lender will make a
loan to the prospective borrower for the
proposed project, under specified terms
and conditions subject to the issuance of
the GRRHP guarantee. Lender
certification must be on the lender’s
letterhead and signed by both the lender
and the prospective borrower.
(2) Project Specific Data—The lender
must submit the project specific data
below on the lender’s letterhead, signed
by both the lender and the prospective
borrower.
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Federal Register / Vol. 74, No. 12 / Wednesday, January 21, 2009 / Notices
Data element
Information that must be included
Lender Name ............................................................................................
Lender Tax ID # .......................................................................................
Lender Contact Name ..............................................................................
Mailing Address ........................................................................................
Phone # ....................................................................................................
Fax # .........................................................................................................
E-mail Address .........................................................................................
Borrower Name and Organization Type ..................................................
Insert the lender’s name.
Insert lender’s tax ID #.
Name of the lender contact for loan.
Lender’s complete mailing address.
Phone # for lender contact.
Insert lender’s fax #.
Insert lender contact e-mail address.
State whether borrower is a Limited Partnership, Corporation, Indian
Tribe, etc.
Optional Completion
State whether borrower is for profit, not for profit, etc.
Insert borrower’s tax ID #.
Insert DUNS number.
Insert borrower’s address and county.
Insert borrower’s phone #.
Insert name and title.
Attach relevant information.
Equal Opportunity Survey ........................................................................
Tax Classification Type ............................................................................
Borrower Tax ID # ....................................................................................
Borrower DUNS # .....................................................................................
Borrower Address, including County ........................................................
Borrower Phone # ....................................................................................
Principal or Key Member for the Borrower ..............................................
Borrower Information and Statement of Housing Development Experience.
New Construction, Acquisition With Rehabilitation, or the Revitalization,
Repair, and Transfer (as stipulated in 7 CFR 3560.406) of Existing
Direct Section 515 Housing or MPR.
Project Location Town or City ..................................................................
Project County ..........................................................................................
Project State .............................................................................................
Project Zip Code .......................................................................................
Project Congressional District ..................................................................
Project Name ............................................................................................
Project Type .............................................................................................
Property Description and Proposed Development Schedule ...................
Total Project Development Cost ..............................................................
# of Units ..................................................................................................
Ratio of 3–5 bedroom units to total units .................................................
Cost Per Unit ............................................................................................
Rent ..........................................................................................................
Median Income for Community ................................................................
Evidence of Site Control ...........................................................................
Description of Any Environmental Issues ................................................
Loan Amount ............................................................................................
Interest Credit (IC) ....................................................................................
Basis Points ..............................................................................................
If Above Is Yes, Should Proposal Be Considered Under Non-Interest
Credit Selection If Scoring Does Not Meet The Minimum Point
Threshold of 55 Points for an Interest Credit Award?
Borrower’s Proposed Equity .....................................................................
Tax Credits ...............................................................................................
Other Sources of Funds ...........................................................................
Loan to Total Development Cost .............................................................
Debt Coverage Ratio ................................................................................
Percentage of Guarantee .........................................................................
Collateral ...................................................................................................
Empowerment Zone (EZ) or Enterprise Community (EC), Colonia, Tribal Lands, or State’s Consolidated Plan or State Needs Assessment.
Is the Property Located in a Federally Declared Disaster Area?
mstockstill on PROD1PC66 with NOTICES
Population .................................................................................................
Is a Guarantee for Construction Being Requested?
Loan Term ................................................................................................
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18:54 Jan 16, 2009
Jkt 217001
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Frm 00016
Fmt 4703
State whether the project is new construction or acquisition with rehabilitation. Transfer costs, including equity payments, are subject to
Agency approval and must be an eligible use of loan proceeds in 7
CFR 3565.205.
Town or city in which the project is located.
County in which the project is located.
State in which the project is located.
Insert zip code.
Congressional District for project location.
Insert project name.
Family, senior (all residents 55 years or older), or mixed.
Provide as an attachment.
Enter amount for total project.
Insert the # of units in the project.
Insert percentage of 3–5 bedroom units to total units.
Total development cost divided by # of units.
Proposed rent structure.
Provide median income for the community.
Attach relevant information.
Attach relevant information.
Insert the loan amount.
Is interest credit requested for this loan?
Lenders seeking interest credit must provide the maximum basis points
that will be used to calculate the interest rate. Priority points will only
be given for basis points equal to or less than 250 basis points.
If Yes, proposal must show financial feasibility for Non-IC consideration.
Insert amount.
Have tax credits been awarded?
If tax credits were awarded, submit a copy of the award notice/evidence of award with your response.
If not, when do you anticipate an award will be made (announced)?
What is the [estimated] value of the tax credits?
List all funding sources other than tax credits and amounts for each
source.
Guaranteed loan divided by the total development costs of project.
Net Operating Income divided by debt service payments.
Percentage guarantee requested.
Attach relevant information.
Yes or No. Is the project in a recognized EZ or EC, Colonia, on an Indian Reservation, or in a place identified in the State’s Consolidated
Plan or State Needs Assessment as a high need community for
multi-family housing?
If yes, please provide documentation (i.e., Presidential Declaration document).
Provide the population of the county, city, or town where the project is
or will be located.
State yes or no. The Agency can guarantee the construction advances
of the property if the guarantee for the permanent loan is requested
for the same property.
Minimum 25-year term.
Maximum 40-year term (includes construction period).
May amortize up to 40 years.
Balloon mortgages permitted after the 25th year.
Sfmt 4703
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Federal Register / Vol. 74, No. 12 / Wednesday, January 21, 2009 / Notices
Scoring of Priority Criteria for
Selection of Projects: All 2009 responses
will be scored based on the criteria set
forth below to establish their priority for
obligation of funds. Per 7 CFR 3565.5(b),
priority will be given to projects: in
smaller rural communities, in the most
needy communities having the highest
percentage of leveraging, having the
lowest interest rate, having the highest
ratio of 3–5 bedroom units to total units,
or located in Empowerment Zones/
Enterprise Communities or on tribal
lands. In addition, the Agency may, at
its sole discretion, set aside assistance
for or rank projects that meet important
program goals. This Fiscal Year
additional points will be awarded to
responses for the revitalization, repair,
and transfers of existing direct Section
515 housing.
Prior to March 31, 2009, projects with
an overall score of 25 points or more
and a loan to development cost ratio
less than 70 percent will be processed
and, when ready, obligated on a firstcome-first-serve basis, provided funds
are available. Projects that score less
than 25 points, and projects that score
25 points or more and do not have a
loan to development cost ratio less than
70 percent, may be processed up to the
point of obligation, but will not be
obligated until after March 31, 2009.
After March 31, 2009, the Agency will
select the highest scoring proposals
using the procedure outlined in the
DATES section of this Notice.
All projects that score 55 points or
more on the seven priority criteria, and
request and demonstrate a need for an
interest credit subsidy, will receive
interest credit awards, subject to the
availability of funding.
The seven priority criteria for projects
are listed below.
Priority 1—Projects located in eligible
rural communities with the lowest
populations will receive the highest
points.
Population size
mstockstill on PROD1PC66 with NOTICES
0–10,000 people .............................
10,001–15,000 people ....................
15,001–20,000 people ....................
18:54 Jan 16, 2009
Points
Less than $45,000 ..........................
$45,000—less than $55,000 ..........
$55,000—less than $65,000 ..........
$65,000—less than $75,000 ..........
$75,000 or more .............................
20
15
10
5
0
Priority 3—Projects that demonstrate
partnering and leveraging in order to
develop the maximum number of units
and promote partnerships with state and
local communities will also receive
points. Points will be awarded as
follows:
Loan to total development
cost ratio
(percentage %)
Points
90–100 ............................................
Less than 90–70 .............................
Less than 70–50 .............................
Less than 50 ...................................
0
15
20
30
Priority 4—The development of
projects on Tribal Lands, or in an
Empowerment Zone or Enterprise
Community will receive points. The
USDA Rural Development will attribute
20 points to projects that are developed
in any of the locations described in this
priority. The development of projects in
a Colonia or in a place identified in the
State’s Consolidated Plan or State Needs
Assessment as a high-need community
for multi-family housing will receive
points. The USDA Rural Development
will attribute 20 points to projects that
are developed in any of the locations
described in this priority.
Priority 5—The USDA Rural
Development will award points to
projects with the highest ratio of 3–5
bedroom units to total units as follows:
Ratio of 3–5 bedroom units
to total units
Points
More than 50% ...............................
21%–50% .......................................
Less than 21%—more than 0% .....
10
5
1
Priority 6—USDA Rural Development
will award points for interest credit
basis points 250 points and below used
Points
to calculate the borrower’s effective note
15 interest rate. For all responses,
10 including Section 515 transfers that
5 include equity payments, the score for
basis points is as follows:
Priority 2—The most needy
communities as determined by the
median income from the most recent
census data will receive points. The
Agency will allocate points to projects
located in communities having the
lowest median income. Points for
median income will be awarded as
follows:
VerDate Nov<24>2008
Median income
(dollars)
Jkt 217001
Basis points
Points
0 to 100 basis points ......................
101 to 200 basis points ..................
201 to 250 basis points ..................
251 to 299 basis points ..................
300 to 349 basis points ..................
350 to 399 basis points ..................
400 and above basis points ...........
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20
15
10
¥20
¥30
¥50
¥70
3557
Priority 7—Notice responses for the
revitalization, repair, and transfer (as
stipulated in 7 CFR 3560.406) of
existing direct section 515 housing and
properties involved in the Agency’s
MPR program (transfer costs, including
equity payments, are subject to Agency
approval and must be an eligible use of
loan proceeds listed in 7 CFR 3565.205)
will receive an additional 30 points.
Notifications: Responses will be
reviewed for completeness and
eligibility. The USDA Rural
Development will notify those lenders
whose responses are selected via letter.
The USDA Rural Development will
request lenders without GRRHP lender
approval to apply for GRRHP lender
approval within 30 days upon receipt of
notification of selection. For
information regarding GRRHP lender
approval, please refer to the section
entitled ‘‘Submission of Documentation
for GRRHP Lender Approval’’ in this
Notice.
Lenders will also be invited to submit
a complete application and the required
application fee of $2,500 to the USDA
Rural Development State Office where
the project is located.
Submission of GRRHP Applications:
Notification letters will instruct lenders
to contact the USDA Rural Development
State Office immediately following
notification of selection to schedule
required agency reviews.
USDA Rural Development State Office
staff will work with lenders in the
development of an application package.
In response to the Notice, lenders must
submit a response to the office address
identified in the Notice for the scoring
and ranking of a proposed GRRHP
project. The lender must provide the
requested information concerning the
project, to establish the purpose of the
proposed project, its location, and how
it meets the established priorities for
funding. The Agency will determine the
highest ranked responses based on
priority criteria and a threshold score.
Notice responses will at least include
the following [but the Agency, at its sole
discretion, may request additional
information]:
(1) The Project
(a) A brief description of the proposed
location of the project, including town,
county, state, and congressional district.
(b) A description of the property and
improvements, including lot size,
number of units, building type, type of
construction, etc., including preliminary
drawings, if available.
(c) The proposed development
schedule.
(d) Total project development cost.
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(e) The proposed rent structure and
area median income (HUD published
area median incomes can be found
online at https://www.huduser.org).
(f) Evidence of site control by the
proposed borrower or a purchase
option.
(g) Description of any environmental
issues that may affect the project.
(h) Amount of loan to be guaranteed.
(i) Type of project (e.g., elderly or
family).
(2) The Proposed Financing
(a) Proposed loan amount and the
proposed borrower’s equity.
(b) Proposed use of interest credit—If
the lender proposes to use interest
credit, this section should include the
maximum basis points the lender will
charge the borrower for the project.
Selection and scoring criteria that the
project must meet to receive interest
credit will be published in the Notice.
(c) Estimated development budget
(total and cost/unit) and the proposed
sources and uses of funds. This
information should include all proposed
financing sources—the amount, type,
rates and terms of loans, tax credits, or
grant funds. Letters of application and
commitment letters should be included,
if available.
(d) Estimated loan-to-development
cost ratio for the guaranteed loan.
(e) Proposed Agency guarantee
percentage for guaranteed loan (under
no condition can the percentage exceed
90 percent of the loan amount).
(f) Collateral—all security, in addition
to the real property, proposed to secure
the loan.
(3) The Proposed Borrower
mstockstill on PROD1PC66 with NOTICES
(a) The name of the borrower and the
type of ownership entity. List the
general partners if a limited partnership,
officers if a corporation or members of
a Limited Liability Corporation.
(b) Borrower’s contact name, mailing
address, phone and fax numbers, and email address.
(c) Certification that the borrower or
principals of the ownership are not
barred from participating in Federal
housing programs and are not
delinquent on any Federal debt.
(d) Borrower’s unaudited or audited
financial statements.
(e) Statement of borrower’s housing
development experience.
(4) Lender Eligibility and Approval
Status
Evidence that the lender is either an
approved lender for the purposes of the
GRRHP or that the lender is eligible to
apply for approved lender status. The
lender’s application for approved lender
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18:54 Jan 16, 2009
Jkt 217001
status can be submitted with the
response but must be submitted to the
National Office within 30 calendar days
of the lender’s receipt of the ‘‘Notice to
Proceed with Application Processing’’
letter.
(5) Competitive Criteria
Information that shows how the
proposal is responsive to the selection
criteria specified in the Notice.
(6) Lender Certification
A commitment letter signed by the
lender, on the lender’s letterhead,
indicating that the lender will make a
loan to the borrower for the proposed
project, under specified terms and
conditions subject only to the issuance
of a guarantee by the Agency.
The deadline for the submission of a
complete application and application
fee is 90 days from the date of
notification of response selection. If the
application and fee are not received by
the appropriate State Office within 90
days from the date of notification, the
selection is subject to cancellation,
thereby allowing another response that
is ready to proceed with processing to
be selected. The State Office has the
ability to extend this 90 day deadline for
receipt of an application only for good
cause.
Obligation of Program Funds: The
Agency will only obligate funds to
projects that meet the requirements for
obligation, including having undergone
a satisfactory environmental review in
accordance with the National
Environmental Protection Act (NEPA)
and having submitted the $2,500
application fee and completed Form RD
3565–1 for the selected project.
Conditional Commitment: Once
required documents for obligation and
the application fee are received and all
NEPA requirements have been met, the
USDA Rural Development State Office
will issue a conditional commitment,
which stipulates the conditions that
must be fulfilled before the issuance of
a guarantee, in accordance with 7 CFR
3565.303.
Issuance of Guarantee: The USDA
Rural Development Office will issue a
guarantee to the lender for a project in
accordance with 7 CFR 3565.303. No
guarantee can be issued without a
complete application, review of
appropriate certifications, satisfactory
assessment of the appropriate level of
environmental review, and the
completion of any conditional
requirements.
Non-Discrimination Statement
USDA prohibits discrimination in all
its programs and activities on the basis
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Fmt 4703
Sfmt 4703
of race, color, national origin, age,
disability, and where applicable, sex,
marital status, religion, sexual
orientation, genetic information,
political beliefs, reprisal, or because all
or part of an individual’s income is
derived from any public assistance
program. (Not all prohibited bases apply
to all programs.) Persons with
disabilities who require alternative
means for communication of program
information (Braille, large print,
audiotape, etc.) should contact USDA’s
TARGET Center at (202) 720–2600
(voice and TDD). To file a complaint of
discrimination, write to USDA, Director,
Office of Civil Rights, 1400
Independence Avenue, SW.,
Washington, DC 20250–9410, or call
(800) 795–3272 (voice), or (202) 720–
6382 (TDD). ‘‘USDA is an equal
opportunity provider, employer, and
lender.’’
Dated: January 9, 2009.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. E9–1074 Filed 1–16–09; 8:45 am]
BILLING CODE 3410–XV–P
DEPARTMENT OF COMMERCE
Submission for OMB Review;
Comment Request
The Department of Commerce will
submit to the Office of Management and
Budget (OMB) for clearance the
following proposal for collection of
information under the provisions of the
Paperwork Reduction Act (44 U.S.C.
Chapter 35).
Agency: National Oceanic and
Atmospheric Administration (NOAA).
Title: Report of Whaling Operations.
Form Number(s): None.
OMB Approval Number: 0648–0311.
Type of Request: Regular submission.
Burden Hours: 31.
Number of Respondents: 250.
Average Hours per Response: 5
minutes.
Needs and Uses: Native Americans
are allowed to conduct certain
aboriginal subsistence whaling in
accordance with the provisions of the
International Whaling Commission
(IWC). The captains participating in
these operations must submit certain
information to the relevant Native
American whaling organization about
strikes on and catch of whales. Anyone
retrieving a dead whale is also required
to report. Captains must place a
distinctive permanent identification
mark on any harpoon, lance, or
explosive dart used, and must also
provide information on the mark and
E:\FR\FM\21JAN1.SGM
21JAN1
]]>Agencies
[Federal Register Volume 74, Number 12 (Wednesday, January 21, 2009)]
[Notices]
[Pages 3551-3558]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-1074]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice for Request for Proposals for Loan Guarantees under the
Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal
Year 2009
AGENCY: Rural Housing Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This is a request for proposals for loan guarantees under the
section 538 Guaranteed Rural Rental Housing Program (GRRHP) pursuant to
7 CFR 3565.4 for Fiscal Year (FY) 2009 subject to the availability of
funding. FY 2008 funding for the section 538 program was $129,090,000.
For FY 2009, there are approximately $2 million in additional funds
for GRRHP properties that are located in a presidentially declared
disaster area. Disaster funds may be used for new construction or
repair and rehabilitation. To be eligible for these disaster funds, a
property must be located in a county affected by hurricanes, floods,
and other natural disasters occurring during 2008 for which the
President declared a major disaster under Title IV of the Robert T.
Stafford and Disaster and Emergency Assistance of 1974. Applicants must
notify the Rural Development contact person for the respective state,
as indicated in the ``Submission Address'' section of this notice, that
their project is located in an eligible disaster zone and that they
want the project considered for these funds.
Applicants for both general program funding or disaster funds will
submit proposals in the form of ``RESPONSES.'' The commitment of
program dollars will be made to applicants of selected responses that
have fulfilled the necessary requirements for obligation. Expenses
incurred in developing applications will be at the applicant's risk.
The following paragraphs outline the timeframes, eligibility
requirements, lender responsibilities, and the overall response and
application processes.
The GRRHP operates under 7 CFR part 3565. The GRRHP Origination and
Servicing Handbook (HB-1-3565) is available to provide lenders and the
general public with guidance on program administration. HB-1-3565,
which contains a copy of 7 CFR part 3565 in Appendix 1, can be found at
the Agency's Instructions Web site address https://www.rurdev.usda.gov/
regs/hblist.html#hbw6.
Eligible lenders are invited to submit responses for the new
construction and the acquisition with rehabilitation of affordable
rural rental housing.
Also eligible is the revitalization, repair, and transfer (as
stipulated in 7 CFR 3560.406) of existing direct section 515 housing
(transfer costs are subject to Agency approval and must be an eligible
use of loan proceeds as listed in 7 CFR 3565.205), and properties
involved in the Agency's multi-family preservation and revitalization
program (MPR). Equity payments, as stipulated in 7 CFR 3560.406, in
connection with the transfer of existing direct section 515 housing,
are an eligible use of guaranteed loan proceeds. In order to be
considered, the transfer of direct section 515 housing and MPR projects
must need repairs and undergo revitalization of a minimum of $6,500 per
unit. A Section 538 guaranteed loan used in conjunction with a section
515 transfer that includes an equity payment and that qualifies for an
interest credit award, will receive interest credit according to the
following schedule:
------------------------------------------------------------------------
Maximum interest
Guaranteed loan amount credit basis
points award
------------------------------------------------------------------------
Over $1,000,000...................................... 0
$1,000,000 or less................................... 50
$750,000 or less..................................... 100
$600,000 or less..................................... 150
$450,000 or less..................................... 200
$300,000 or less..................................... 250
------------------------------------------------------------------------
The ``Maximum Interest Credit Basis Points Award'' is applied to
the whole loan amount, therefore a qualifying $600,000 loan guarantee
for example, would be awarded 150 interest credit basis points for the
whole $600,000 (not, 250 interest credit basis points for the first
$300,000, 200 interest credit basis points for the next $150,000 up to
$450,000, and 150 interest credit basis points for the next $150,000 up
to $600,000).
The Agency will review responses submitted by eligible lenders, on
the lender's letterhead, and signed by both the prospective borrower
and lender. Although a complete application is not required in response
to this Notice of request for proposals, eligible lenders may submit a
complete application concurrently with the response. Submitting a
complete application will not have any effect on the respondent's NOFA
response score.
DATES: As long as funds remain available, eligible responses to this
notice will be accepted and eligible requests will be obligated per
this guidance until September 28, 2009, 12:00 P.M. Eastern Time.
Selected responses that develop into complete applications and meet all
Federal environmental requirements will receive commitments to the
extent an
[[Page 3552]]
appropriation act provides funding for GRRHP for FY 2009 until all
funds are expended. A notice will be placed in the Federal Register if
all FY 2009 funds are committed prior to September 28, 2009.
The Agency will select the responses that meet eligibility criteria
and invite lenders to submit complete applications to the Agency. Those
responses that are selected that subsequently submit complete
applications that meet all program requirements and are received prior
to or on March 31, 2009, but score less than 25 points, or score 25
points or more, but have a development cost ratio equal to or greater
than 70 percent, may be selected for obligation after March 31, 2009,
with the highest scoring responses receiving priority subject to
availability of funds. After March 31, 2009, responses that develop
into complete applications that meet all program requirements will be
selected for further processing regardless of score, subject to the
availability of funding.
The USDA Rural Development will prioritize the obligation requests
received after March 31, 2009, using the highest score and the
procedures outlined as follows. Once a complete application is received
and approved by the State Office, an obligation request for 2009 funds
will be submitted [via fax] by the State Office to the National Office.
Obligation requests submitted to the National Office will be
accumulated, but not obligated, throughout the week until the weekly
obligation request submission deadline of midnight Eastern Time every
Thursday. To the extent that funds remain available, the National
Office will obligate the requests accumulated through the weekly
request submission deadline of the previous week by the following
Tuesday (i.e., requests received from Friday, May 15, 2009, to
Thursday, May 21, 2009, will be obligated by Tuesday, May 26, 2009).
However, requests received prior to March 31, 2009, that are not
eligible for obligation until after March 31, 2009, will be obligated
no earlier than Friday, April 3, 2008. Funds will be allocated in
scoring order, with the highest scoring requests being obligated first,
until all funds are exhausted. In the event of a tie, priority will be
given to the request for the project that: 1st--has the highest
percentage of leveraging (lowest Loan to Cost); 2nd--is in the smaller
rural community.
Eligible lenders mailing a response or application must provide
sufficient time to permit delivery to the Submission Address on or
before the closing deadline date and time. Acceptance by a U.S. Post
Office or private mailer does not constitute delivery. Postage due
responses and applications will not be accepted.
Submission Address: Eligible lenders will send responses to the
contact person in the State Office where the project will be located.
The lender will also send a copy of its response (copies of ``Lender
Certification'' letter and ``Project Specific Data'' sheets only; do
not include any application supporting documentation, i.e., market
studies, plans/specs, etc.) to: Tammy S. Daniels, Financial and Loan
Analyst, USDA Rural Development Guaranteed Rural Rental Housing
Program, Multi-Family Housing Guaranteed Loan Division, U.S. Department
of Agriculture, South Agriculture Building, Room 1265, STOP 0781, 1400
Independence Avenue, SW., Washington, DC 20250-0781.
USDA Rural Development State Offices, their addresses, telephone
numbers, and person to contact follows: [this information may also be
found at https://www.rurdev.usda.gov/recd_map.html].
Note: Telephone numbers listed are not toll-free.
Alabama State Office: Suite 601, Sterling Centre, 4121 Carmichael Road,
Montgomery, AL 36106-3683, (334) 279-3455, TDD (334) 279-3495, Vann L.
McCloud.
Alaska State Office: 800 West Evergreen, Suite 201, Palmer, AK 99645,
(907) 761-7740, TDD (907) 761-8905, Deborah Davis.
Arizona State Office: Phoenix Courthouse and Federal Building, 230
North First Ave., Suite 206, Phoenix, AZ 85003-1706, (602) 280-8768,
TDD (602) 280-8706, Carol Torres.
Arkansas State Office: 700 W. Capitol Ave., Room 3416, Little Rock, AR
72201-3225, (501) 301-3250, TDD (501) 301-3279, Gregory Kemper.
California State Office: 430 G Street, 4169, Davis, CA 95616-
4169, (530) 792-5830, TDD (530) 792-5848, Stephen Nnodim.
Colorado State Office: 655 Parfet Street, Room E100, Lakewood, CO
80215, (720) 544-2923, TDD (800) 659-2656, Mary Summerfield.
Connecticut: Served by Massachusetts State Office.
Delaware and Maryland State Office: 1221 College Park Drive, Suite 200,
Dover, DE 19904, (302) 857-3600, TDD (302) 857-3585, Patricia M. Baker.
Florida & Virgin Islands State Office: 4440 N.W. 25th Place,
Gainesville, FL 32606-6563, (352) 338-3465, TDD (352) 338-3499,
Elizabeth M. Whitaker.
Georgia State Office: Stephens Federal Building, 355 E. Hancock Avenue,
Athens, GA 30601-2768, (706) 546-2164, TDD (706) 546-2034, Wayne
Rogers.
Hawaii State Office (Services all Hawaii, American Samoa, Guam, and
Western Pacific): Room 311, Federal Building, 154 Waianuenue Avenue,
Hilo, HI 96720, (808) 933-8305, TDD (808) 541-2600, Don
[Eacute]t[eacute]s.
Idaho State Office: Suite A1, 9173 West Barnes Dr., Boise, ID 83709,
(208) 378-5630, TDD (208) 378-5644, Roni Atkins.
Illinois State Office: 2118 West Park Court, Suite A, Champaign, IL
61821-2986, (217) 403-6222, TDD (217) 403-6240, Barry L. Ramsey.
Indiana State Office: 5975 Lakeside Boulevard, Indianapolis, IN 46278,
(317) 290-3100 (ext. 413), TDD (317) 290-3343, Paul Neumann.
Iowa State Office: 210 Walnut Street, Room 873, Des Moines, IA 50309,
(515) 284-4666, TDD (515) 284-4858, Heather Honkomp.
Kansas State Office: 1303 SW First American Place, Suite 100, Topeka,
KS 66604-4040, (785) 271-2718, TDD (785) 271-2767, Tim Rogers.
Kentucky State Office: 771 Corporate Drive, Suite 200, Lexington, KY
40503, (859) 224-7325, TDD (859) 224-7422, Paul Higgins.
Louisiana State Office: 3727 Government Street, Alexandria, LA 71302,
(318) 473-7962, TDD (318) 473-7655, Yvonne R. Emerson.
Maine State Office: 967 Illinois Ave., Suite 4, PO Box 405, Bangor, ME
04402-0405, (207) 990-9110, TDD (207) 942-7331, Dale D. Holmes.
Maryland: Served by Delaware State Office.
Massachusetts, Connecticut, & Rhode Island State Office: 451 West
Street, Amherst, MA 01002, (413) 253-4333, TDD (413) 253-4590, Arlene
Nunes or Paul Geoffroy.
Michigan State Office: 3001 Coolidge Road, Suite 200, East Lansing, MI
48823, (517) 324-5192, TDD (517) 337-6795, Ghulam R. Sumbal.
Minnesota State Office: 375 Jackson Street Building, Suite 410, St.
Paul, MN 55101-1853, (651) 602-7804, TDD (651) 602-7830, Tom Osborne.
Mississippi State Office: Federal Building, Suite 831, 100 W. Capitol
Street, Jackson, MS 39269, (601) 965-4326, TDD (601) 965-5850, Darnella
Smith-Murray.
Missouri State Office: 601 Business Loop 70 West, Parkade Center, Suite
235, Columbia, MO 65203, (573) 876-0990, TDD (573) 876-9480, Anita J.
Dunning.
Montana State Office: 900 Technology Blvd., Suite B, Bozeman, MT 59715,
(406) 585-2565, TDD (406) 585-2562, Deborah Chorlton.
[[Page 3553]]
Nebraska State Office: Federal Building, Room 152, 100 Centennial Mall
N., Lincoln, NE 68508, (402) 437-5594, TDD (402) 437-5093, Mike Buethe.
Nevada State Office: 1390 South Curry Street, Carson City, NV 89703-
9910, (775) 887-1222 (ext. 25), TDD (775) 885-0633, William Brewer.
New Hampshire State Office: Concord Center, Suite 218, Box 317, 10
Ferry Street, Concord, NH 03301-5004, (603) 223-6046, TDD (603) 229-
0536, Robert McCarthy.
New Jersey State Office: 5th Floor North, Suite 500, 8000 Midlantic
Dr., Mt. Laurel, NJ 08054, (856) 787-7740, TDD (856) 787-7730, George
Hyatt, Jr.
New Mexico State Office: 6200 Jefferson St., NE., Room 255,
Albuquerque, NM 87109, (505) 761-4944, TDD (505) 761-4938, Art Garcia.
New York State Office: The Galleries of Syracuse, 441 S. Salina Street,
Suite 357, 5th Floor, Syracuse, NY 13202, (315) 477-6419, TDD (315)
477-6447, George N. Von Pless.
North Carolina State Office: 4405 Bland Road, Suite 260, Raleigh, NC
27609, (919) 873-2063, TDD (919) 873-2003, William Hobbs.
North Dakota State Office: Federal Building, Room 208, 220 East Rosser,
PO Box 1737, Bismarck, ND 58502, (701) 530-2049, TDD (701) 530-2113,
Mark Wax.
Ohio State Office: Federal Building, Room 507, 200 North High Street,
Columbus, OH 43215-2477, (614) 255-2418, TDD (614) 255-2554, Gerald
Arnott.
Oklahoma State Office: 100 USDA, Suite 108, Stillwater, OK 74074-2654,
(405) 742-1070, TDD (405) 742-1007, Tommy Earls.
Oregon State Office: 101 SW Main, Suite 1410, Portland, OR 97204-3222,
(503) 414-3353, TDD (503) 414-3387, Rod Hansen.
Pennsylvania State Office: One Credit Union Place, Suite 330,
Harrisburg, PA 17110-2996, (717) 237-2281, TDD (717) 237-2261, Frank
Wetherhold.
Puerto Rico State Office: 654 Munoz Rivera Avenue, IBM Plaza, Suite
601, Hato Rey, PR 00918, (787) 766-5095 (ext. 249), TDD (787) 766-5332,
Pedro Gomez or Lourdes Colon.
Rhode Island: Served by Massachusetts State Office.
South Carolina State Office: Strom Thurmond Federal Building, 1835
Assembly Street, Room 1007, Columbia, SC 29201, (803) 253-3432, TDD
(803) 765-5697, Larry D. Floyd.
South Dakota State Office: Federal Building, Room 210, 200 Fourth
Street, SW., Huron, SD 57350, (605) 352-1132, TDD (605) 352-1147, Roger
Hazuka or Pam Reilly.
Tennessee State Office: Suite 300, 3322 West End Avenue, Nashville, TN
37203-1084, (615) 783-1375, TDD (615) 783-1397, Don Harris.
Texas State Office: Federal Building, Suite 102, 101 South Main,
Temple, TX 76501, (254) 742-9758, TDD (254) 742-9712, Leon Carey or
Michael Canales.
Utah State Office: Wallace F. Bennett Federal Building, 125 S. State
Street, Room 4311, Salt Lake City, UT 84147-0350, (801) 524-4325, TDD
(801) 524-3309, David E. Brown.
Vermont State Office: City Center, 3rd Floor, 89 Main Street,
Montpelier, VT 05602, (802) 828-6026, TDD (802) 223-6365, Heidi Setien.
Virgin Islands: Served by Florida State Office,
Virginia State Office: Culpeper Building, Suite 238, 1606 Santa Rosa
Road, Richmond, VA 23229, (804) 287-1596, TDD (804) 287-1753, CJ
Michels.
Washington State Office: 1835 Black Lake Blvd., Suite B, Olympia, WA
98512, (360) 704-7730, TDD (360) 704-7760, Robert Lund.
Western Pacific Territories: Served by Hawaii State Office.
West Virginia State Office: Federal Building, 75 High Street, Room 320,
Morgantown, WV 26505-7500, (304) 284-4872, TDD (304) 284-4836, Dianne
Crysler.
Wisconsin State Office: 4949 Kirschling Court, Stevens Point, WI 54481,
(715) 345-7600, TDD (715) 345-7614, Dave Schwobe.
Wyoming State Office: PO Box 11005, Casper, WY 82602, (307) 233-6715,
TDD (307) 233-6733, Alan Brooks.
FOR FURTHER INFORMATION CONTACT: Tammy S. Daniels, Financial and Loan
Analyst, USDA Rural Development Guaranteed Rural Rental Housing
Program, Multi-Family Housing Guaranteed Loan Division, U.S. Department
of Agriculture, South Agriculture Building, Room 1271, STOP 0781, 1400
Independence Avenue, SW., Washington, DC 20250-0781. E-mail:
tammy.daniels@wdc.usda.gov. Telephone: (202) 720-0021. This number is
not toll-free. Hearing or speech-impaired persons may access that
number by calling the Federal Information Relay Service toll-free at
(800) 877-8339.
Eligiblity of Prior Year Selected Notice of Funding Availability
Responses: FY 2008 NOFA response selections that did not develop into
complete applications within the time constraints stipulated by the
corresponding State Office have been cancelled. A new response for the
project may be submitted subject to the conditions of this Notice.
FY 2008 NOFA responses that were selected by the Agency, with a
complete application (including all Federal environmental documents
required by 7 CFR part 1940, subpart G, a Form RD 3565-1, and the
$2,500 application fee) submitted by the lender within 90 days from the
date of notification of response selection (unless an extension was
granted by the State office), will be eligible for FY 2009 program
dollars and will compete for available FY 2009 funds without having to
complete a FY 2009 response.
General Program Information
Program Purpose: The purpose of the GRRHP is to increase the supply
of affordable rural rental housing through the use of loan guarantees
that encourage partnerships between the Agency, private lenders, and
public agencies.
Responses Must be Submitted by: The Agency will only accept
responses from GRRHP eligible or approved lenders as described in 7 CFR
3565.102 and 3565.103, respectively.
Qualifying Properties: Qualifying properties include new
construction for multi-family housing units and the acquisition of
existing structures with a minimum per unit rehabilitation expenditure
requirement in accordance with 7 CFR 3565.252.
Also eligible is the revitalization, repair and transfer (as
stipulated in 7 CFR 3560.406) of existing direct section 515 housing
(transfer costs are subject to Agency approval and must be an eligible
use of loan proceeds as listed in 7 CFR 3565.205) and properties
involved in the Agency's MPR program. Equity payment, as stipulated 7
CFR 3560.406, in the transfer of existing direct section 515 housing,
is an eligible use of guaranteed loan proceeds. In order to be
considered, the transfer of direct section 515 housing and MPR projects
must need repairs and undergo revitalization of a minimum of $6,500 per
unit.
Eligible Financing Sources: Any form of Federal, state, and
conventional sources of financing can be used in conjunction with the
loan guarantee, including Home Investment Partnership Program (HOME)
grant funds, tax exempt bonds, and low income housing tax credits.
Maximum Guarantee: The Agency can guarantee the ``permanent'' loan.
The Agency can only guarantee construction advances for the
construction of the property if a guarantee for the permanent loan is
requested for the same property. The Agency cannot, however, guarantee
only
[[Page 3554]]
the ``construction'' advances for the construction of a property.
The maximum guarantee for a permanent loan will be 90 percent of
the unpaid principal and interest up to default and accrued interest 90
calendar days from the date the liquidation plan is approved by the
Agency, as defined in 7 CFR 3565.452. Penalties incurred as a result of
default are not covered by the guarantee. The Agency may provide a
lesser guarantee based upon its evaluation of the credit quality of the
loan. The Agency liability under any guarantee will decrease or
increase, in proportion to any decrease or increase in the amount of
the unpaid portion of the loan, up to the maximum amount specified in
the Loan Note Guarantee.
The maximum guarantee of construction advances will not at any time
exceed the lesser of 90 percent of the amount of principal and interest
up to default advanced for eligible uses of loan proceeds or 90 percent
of the original principal amount and interest up to default of the
loan. Penalties incurred as a result of default are not covered by the
guarantee. The Agency may provide a lesser guarantee based upon its
evaluation of the credit quality of the loan.
Reimbursement of Losses: Any losses will be split on a pro-rata
basis between the lender and the Agency from the first dollar lost.
Interest Credit: The Housing and Recovery Act of 2008 (HERA) made
changes to several affordable housing programs. One of the changes was
the elimination of the reference to the Applicable Federal Rate (AFR)
within section 42(i)(2)(D) of the Internal Revenue Code of 1986. The
change in the tax code has an impact on the Section 538 GRRHP. Prior to
the HERA, GRRHP used the AFR to calculate the effective rate to the
borrower through the Agency's payment of interest credit. Interest
credit was awarded by the Agency to bring the effective interest rate
of the loan to the AFR. Since the reference to the AFR in section
42(i)(2)(D) of the tax code was eliminated by HERA, the section 538
reference to the AFR is no longer applicable. To date the Congress has
not made a corresponding change to section 538 of the Housing Act of
1949, therefore the Agency is providing an alternative method of
applying Interest Credit.
Until such time appropriate legislative and regulatory changes to
the law and regulation governing the section 538 program can be
effected, the program will proceed under the following interim
guidance:
All loan guarantees obligated under the Fiscal Year 2009 NOFA
will apply the interest credit basis points awarded to the note rate
negotiated between the borrower and the lender (i.e., 7% note rate--
250 interest credit basis points = 4.5% effective note rate to the
borrower).
At least 20 percent of all loans made during the fiscal year must
receive interest credit. Requests for interest credit must be made in
the response to the NOFA. Lenders are not permitted to make requests
for interest credit after the selection process has taken place. When
interest credit is requested, lenders must state in the response the
maximum number of basis points that will be used to calculate the
interest. Priority points will be awarded only to those responses
submitting proposed interest rates equal to or less than 250 basis
points. Any response submitted that exceeds 250 basis points will
receive a deduction of 20 points from its Priority Score (refer to
``Scoring the Priority Criteria for Selection of Projects'' section of
this Notice). An increasing amount of points will be deducted from the
Priority Score of any response requesting 300 or more basis points.
Due to limited funding, and in order to distribute interest credit
assistance as broadly as possible and minimize program costs, the
Agency will limit the interest credit to $1.5 million of the guaranteed
loan funds per project. For example, if an eligible request were made
for interest credit on a loan of $2.5 million, up to $1.5 million of
the loan would receive interest credit. Interest credit is only
available for the permanent loan (not construction loans). Lenders with
projects that are viable with or without interest credit are encouraged
to submit a response reflecting financial and market feasibility under
both funding options. Responses requesting consideration under both
options will not affect interest credit selection. Due to limited
interest credit funds and the responsibility of USDA Rural Development
to target and give priority to rural areas most in need, responses
requesting interest credit must score a minimum of 55 points under the
criteria established in this Notice.
Surcharges for Guarantee of Construction Advances: There is no
surcharge for the guarantee of construction advances for FY 2009.
Program Fees for FY 2009: As a condition of receiving a loan
guarantee, the Agency will charge the following guarantee fees to the
lender.
(1) Initial guarantee fee. The Agency will charge an initial
guarantee fee equal to one percent of the guaranteed loan amount. For
purposes of calculating this fee, the guaranteed loan amount is the
product of the percentage of the guarantee times the initial principal
amount of the guaranteed loan.
(2) Annual guarantee fee. An annual guarantee fee of at least 50
basis points (one-half percent) of the outstanding principal amount of
the loan as of December 31 will be charged each year or portion of a
year that the guarantee is in effect.
(3) There is a non-refundable application fee of $2,500 when the
application is submitted.
(4) There is a flat fee of $500 when a lender requests USDA Rural
Development to extend the term of a guarantee commitment.
(5) There is a flat fee of $500 when a lender requests USDA Rural
Development to reopen an application when a commitment has expired.
(6) There is a flat fee of $1,250 when a lender requests USDA Rural
Development to approve the transfer of property and assumption of the
loan to an eligible prospective borrower.
(7) There is no lender application fee for lender approval in FY
2009.
Eligible Lenders: An eligible lender for the section 538 GRRHP as
required by 7 CFR 3565.102 must be a licensed business entity or
Housing Finance Agency (HFA) in good standing in the state or states
where it conducts business. Lender eligibility requirements are
contained in 7 CFR 3565.102. Please review 7 CFR 3565.102 for a
complete list of all of the criteria. Below is a list of some of the
eligible lender criteria under 7 CFR 3565.102:
(1) Licensed business entity that meets the qualifications and has
the approval of the Secretary of Housing and Urban Development (HUD) to
make multi-family housing loans that are insured under the National
Housing Act. A complete list of HUD approved lenders can be found on
the HUD Web site at https://www.hud.gov.
(2) A licensed business entity that meets the qualifications and
has the approval of the Ginnie Mae or Freddie Mac or Fannie Mae
corporations to make multi-family housing loans that are sold to the
same corporations. A complete list of Freddie Mac approved lenders can
be found in Freddie Mac's Web site at https://www.freddiemac.com. Fannie
Mae approved lenders are found at https://www.fanniemae.com. For a list
of Ginnie Mae issuers, contact Ginnie Mae at https://www.ginniemae.gov.
(3) A state or local HFA with a top-tier rating from Moody's or
Standard & Poors, or member of the Federal Home Loan Bank system, and
the demonstrated ability to underwrite,
[[Page 3555]]
originate, process, close, service, manage, and dispose of multi-family
housing loans in a prudent manner.
(4) Be a GRRHP approved lender, defined as an entity with a current
executed multi-family housing Lender's Agreement with USDA Rural
Development.
(5) Lenders that can demonstrate the capacity to underwrite,
originate, process, close, service, manage, and dispose of multi-family
housing loans in a prudent manner. In order to be approved the lender
will have to have an acceptable level of financial soundness as
determined by a lender rating service. The submission of materials
demonstrating capacity will be required if the lender's response is
selected. Lenders who are otherwise ineligible may become eligible if
they maintain a correspondent relationship with an eligible lender that
does have the capacity to underwrite, originate, process, close,
service, manage, and dispose of multi-family housing loans in a prudent
manner. In this case, the eligible lender must submit the response and
application on company letterhead. All contractual and legal
documentation will be signed between USDA Rural Development and the
lender that submitted the response and application.
GRRHP Lender Approval Application: Lenders whose responses are
selected will be notified by the USDA Rural Development to submit a
request for GRRHP lender approval application within 30 days of
notification. Lenders who request GRRHP approval must meet the
standards in the 7 CFR 3565.102 and 103. Lenders that have received
GRRHP lender approval in the past and are in good standing do not need
to reapply for GRRHP lender approval. Requirements for retaining
approved lender status are defined in 7 CFR 3565.105.
Submission of Documentation for GRRHP Lender Approval: All lenders
that have not yet received GRRHP lender approval must submit a complete
lender application to: Director, Multi-Family Housing Guaranteed Loan
Division, Rural Development, U.S. Department of Agriculture, Room 1263,
STOP 0781, 1400 Independence Avenue, SW., Washington, DC 20250-0781.
Lender applications must be identified as ``Section 538 Guaranteed
Rural Rental Housing Program'' on the envelope.
As the Section 538 program does not have a formal application form,
a complete application consists of a cover letter requesting GRRHP
lender approval and the following documentation:
(1) Request for GRRHP lender approval on the lender's letterhead;
(2) Lenders who are HUD, Ginnie Mae, Freddie Mac or Fannie Mae
multi-family approved lenders are required to show evidence of this
status, such as a copy of a letter designating the distinction;
(3) The lender's Loan Origination, Loan Servicing, and Portfolio
Management Handbooks. These handbooks should detail the lender's
policies and procedures on loan origination through termination for
multi-family loans;
(4) Portfolio performance data;
(5) Copies of standard documents that will be used in processing
GRRHP loans;
(6) Resumes and qualifications of key personnel that will be
involved in the GRRHP;
(7) Identification of standards and processes that deviate from
those outlined in the GRRHP Origination and Servicing Handbook (HB-1-
3565) found at https://www.rurdev.usda.gov/regs/hblist.html#hbw6.
(8) A copy of the most recent audited financial statements;
(9) Lender specific information including: (a) Legal name and
address, (b) list of principal officers and their responsibilities, (c)
certification that the officers and principals of the lender have not
been debarred or suspended from Federal programs, (d) Form AD 1047, (e)
certification that the lender is not in default or delinquent on any
Federal debt or loan, or possesses an outstanding finding of deficiency
in a Federal housing program, and
(f) certification of the lender's credit rating; and
(10) Documentation on bonding and insurance.
Additional Construction Lender Requirements
The Agency can guarantee the ``permanent'' loan. The Agency can
only guarantee construction advances for the construction of the
property if a guarantee for the permanent loan is requested for the
same property. The Agency cannot, however, guarantee only the
``construction'' advances for the construction of a property.
A lender making a construction loan must demonstrate an ability to
originate and service construction loans, in addition to meeting the
other requirements of 7 CFR part 3565, subpart C. A lender who
originates and services construction/permanent loans must agree to
manage the construction and draw activities in the manner described in
the Chapter 5 of HB-1-3565. Lenders must meet either the basic or the
demonstrated eligibility test in paragraphs 2.4 and 2.5 of HB-1-3565
and the lender approval requirements set forth in paragraph 2.6 of HB-
1-3565. Lenders must clearly identify policies and processes for multi-
family construction lending. Lenders must also provide a summary of
their multi-family construction lending activity in the same form as
specified in paragraph 2.5 of HB-1-3565. The Agency may, at its
discretion, consider other types of construction loans--such as those
for commercial development--as a substitute for multi-family
construction experience.
Lender Responsibilities: Lenders will be responsible for the full
range of loan origination, underwriting, management, servicing,
compliance issues, and property disposition activities associated with
their projects. The lender will be expected to provide guidance to the
prospective borrower on the Agency requirements during the application
phase. Once the guarantee is issued, the lender is expected to service
each loan it underwrites or contract these services to another capable
entity.
Discussion of Notice Responses
Content of Notice Responses: All responses require lender
information and project specific data. Incomplete responses will not be
considered for funding. Lenders will be notified of incomplete
responses. Complete responses are to include a signed cover letter from
the lender on the lender's letterhead and the following information:
(1) Lender Certification--The lender must certify that the lender
will make a loan to the prospective borrower for the proposed project,
under specified terms and conditions subject to the issuance of the
GRRHP guarantee. Lender certification must be on the lender's
letterhead and signed by both the lender and the prospective borrower.
(2) Project Specific Data--The lender must submit the project
specific data below on the lender's letterhead, signed by both the
lender and the prospective borrower.
[[Page 3556]]
------------------------------------------------------------------------
Information that must be
Data element included
------------------------------------------------------------------------
Lender Name............................ Insert the lender's name.
Lender Tax ID ................ Insert lender's tax ID .
Lender Contact Name.................... Name of the lender contact for
loan.
Mailing Address........................ Lender's complete mailing
address.
Phone ........................ Phone for lender
contact.
Fax .......................... Insert lender's fax .
E-mail Address......................... Insert lender contact e-mail
address.
Borrower Name and Organization Type.... State whether borrower is a
Limited Partnership,
Corporation, Indian Tribe,
etc.
Equal Opportunity Survey............... Optional Completion
Tax Classification Type................ State whether borrower is for
profit, not for profit, etc.
Borrower Tax ID .............. Insert borrower's tax ID .
Borrower DUNS ................ Insert DUNS number.
Borrower Address, including County..... Insert borrower's address and
county.
Borrower Phone ............... Insert borrower's phone .
Principal or Key Member for the Insert name and title.
Borrower.
Borrower Information and Statement of Attach relevant information.
Housing Development Experience.
New Construction, Acquisition With State whether the project is
Rehabilitation, or the Revitalization, new construction or
Repair, and Transfer (as stipulated in acquisition with
7 CFR 3560.406) of Existing Direct rehabilitation. Transfer
Section 515 Housing or MPR. costs, including equity
payments, are subject to
Agency approval and must be an
eligible use of loan proceeds
in 7 CFR 3565.205.
Project Location Town or City.......... Town or city in which the
project is located.
Project County......................... County in which the project is
located.
Project State.......................... State in which the project is
located.
Project Zip Code....................... Insert zip code.
Project Congressional District......... Congressional District for
project location.
Project Name........................... Insert project name.
Project Type........................... Family, senior (all residents
55 years or older), or mixed.
Property Description and Proposed Provide as an attachment.
Development Schedule.
Total Project Development Cost......... Enter amount for total project.
of Units..................... Insert the of units
in the project.
Ratio of 3-5 bedroom units to total Insert percentage of 3-5
units. bedroom units to total units.
Cost Per Unit.......................... Total development cost divided
by of units.
Rent................................... Proposed rent structure.
Median Income for Community............ Provide median income for the
community.
Evidence of Site Control............... Attach relevant information.
Description of Any Environmental Issues Attach relevant information.
Loan Amount............................ Insert the loan amount.
Interest Credit (IC)................... Is interest credit requested
for this loan?
Basis Points........................... Lenders seeking interest credit
must provide the maximum basis
points that will be used to
calculate the interest rate.
Priority points will only be
given for basis points equal
to or less than 250 basis
points.
If Above Is Yes, Should Proposal Be If Yes, proposal must show
Considered Under Non-Interest Credit financial feasibility for Non-
Selection If Scoring Does Not Meet The IC consideration.
Minimum Point Threshold of 55 Points
for an Interest Credit Award?
Borrower's Proposed Equity............. Insert amount.
Tax Credits............................ Have tax credits been awarded?
If tax credits were awarded,
submit a copy of the award
notice/evidence of award with
your response.
If not, when do you anticipate
an award will be made
(announced)?
What is the [estimated] value
of the tax credits?
Other Sources of Funds................. List all funding sources other
than tax credits and amounts
for each source.
Loan to Total Development Cost......... Guaranteed loan divided by the
total development costs of
project.
Debt Coverage Ratio.................... Net Operating Income divided by
debt service payments.
Percentage of Guarantee................ Percentage guarantee requested.
Collateral............................. Attach relevant information.
Empowerment Zone (EZ) or Enterprise Yes or No. Is the project in a
Community (EC), Colonia, Tribal Lands, recognized EZ or EC, Colonia,
or State's Consolidated Plan or State on an Indian Reservation, or
Needs Assessment. in a place identified in the
State's Consolidated Plan or
State Needs Assessment as a
high need community for multi-
family housing?
Is the Property Located in a Federally If yes, please provide
Declared Disaster Area? documentation (i.e.,
Presidential Declaration
document).
Population............................. Provide the population of the
county, city, or town where
the project is or will be
located.
Is a Guarantee for Construction Being State yes or no. The Agency can
Requested? guarantee the construction
advances of the property if
the guarantee for the
permanent loan is requested
for the same property.
Loan Term.............................. Minimum 25-year term.
Maximum 40-year term (includes
construction period).
May amortize up to 40 years.
Balloon mortgages permitted
after the 25th year.
------------------------------------------------------------------------
[[Page 3557]]
Scoring of Priority Criteria for Selection of Projects: All 2009
responses will be scored based on the criteria set forth below to
establish their priority for obligation of funds. Per 7 CFR 3565.5(b),
priority will be given to projects: in smaller rural communities, in
the most needy communities having the highest percentage of leveraging,
having the lowest interest rate, having the highest ratio of 3-5
bedroom units to total units, or located in Empowerment Zones/
Enterprise Communities or on tribal lands. In addition, the Agency may,
at its sole discretion, set aside assistance for or rank projects that
meet important program goals. This Fiscal Year additional points will
be awarded to responses for the revitalization, repair, and transfers
of existing direct Section 515 housing.
Prior to March 31, 2009, projects with an overall score of 25
points or more and a loan to development cost ratio less than 70
percent will be processed and, when ready, obligated on a first-come-
first-serve basis, provided funds are available. Projects that score
less than 25 points, and projects that score 25 points or more and do
not have a loan to development cost ratio less than 70 percent, may be
processed up to the point of obligation, but will not be obligated
until after March 31, 2009. After March 31, 2009, the Agency will
select the highest scoring proposals using the procedure outlined in
the DATES section of this Notice.
All projects that score 55 points or more on the seven priority
criteria, and request and demonstrate a need for an interest credit
subsidy, will receive interest credit awards, subject to the
availability of funding.
The seven priority criteria for projects are listed below.
Priority 1--Projects located in eligible rural communities with the
lowest populations will receive the highest points.
------------------------------------------------------------------------
Population size Points
------------------------------------------------------------------------
0-10,000 people............................................... 15
10,001-15,000 people.......................................... 10
15,001-20,000 people.......................................... 5
------------------------------------------------------------------------
Priority 2--The most needy communities as determined by the median
income from the most recent census data will receive points. The Agency
will allocate points to projects located in communities having the
lowest median income. Points for median income will be awarded as
follows:
------------------------------------------------------------------------
Median income (dollars) Points
------------------------------------------------------------------------
Less than $45,000............................................. 20
$45,000--less than $55,000.................................... 15
$55,000--less than $65,000.................................... 10
$65,000--less than $75,000.................................... 5
$75,000 or more............................................... 0
------------------------------------------------------------------------
Priority 3--Projects that demonstrate partnering and leveraging in
order to develop the maximum number of units and promote partnerships
with state and local communities will also receive points. Points will
be awarded as follows:
------------------------------------------------------------------------
Loan to total development cost ratio (percentage %) Points
------------------------------------------------------------------------
90-100........................................................ 0
Less than 90-70............................................... 15
Less than 70-50............................................... 20
Less than 50.................................................. 30
------------------------------------------------------------------------
Priority 4--The development of projects on Tribal Lands, or in an
Empowerment Zone or Enterprise Community will receive points. The USDA
Rural Development will attribute 20 points to projects that are
developed in any of the locations described in this priority. The
development of projects in a Colonia or in a place identified in the
State's Consolidated Plan or State Needs Assessment as a high-need
community for multi-family housing will receive points. The USDA Rural
Development will attribute 20 points to projects that are developed in
any of the locations described in this priority.
Priority 5--The USDA Rural Development will award points to
projects with the highest ratio of 3-5 bedroom units to total units as
follows:
------------------------------------------------------------------------
Ratio of 3-5 bedroom units to total units Points
------------------------------------------------------------------------
More than 50%................................................. 10
21%-50%....................................................... 5
Less than 21%--more than 0%................................... 1
------------------------------------------------------------------------
Priority 6--USDA Rural Development will award points for interest
credit basis points 250 points and below used to calculate the
borrower's effective note interest rate. For all responses, including
Section 515 transfers that include equity payments, the score for basis
points is as follows:
------------------------------------------------------------------------
Basis points Points
------------------------------------------------------------------------
0 to 100 basis points......................................... 20
101 to 200 basis points....................................... 15
201 to 250 basis points....................................... 10
251 to 299 basis points....................................... -20
300 to 349 basis points....................................... -30
350 to 399 basis points....................................... -50
400 and above basis points.................................... -70
------------------------------------------------------------------------
Priority 7--Notice responses for the revitalization, repair, and
transfer (as stipulated in 7 CFR 3560.406) of existing direct section
515 housing and properties involved in the Agency's MPR program
(transfer costs, including equity payments, are subject to Agency
approval and must be an eligible use of loan proceeds listed in 7 CFR
3565.205) will receive an additional 30 points.
Notifications: Responses will be reviewed for completeness and
eligibility. The USDA Rural Development will notify those lenders whose
responses are selected via letter. The USDA Rural Development will
request lenders without GRRHP lender approval to apply for GRRHP lender
approval within 30 days upon receipt of notification of selection. For
information regarding GRRHP lender approval, please refer to the
section entitled ``Submission of Documentation for GRRHP Lender
Approval'' in this Notice.
Lenders will also be invited to submit a complete application and
the required application fee of $2,500 to the USDA Rural Development
State Office where the project is located.
Submission of GRRHP Applications: Notification letters will
instruct lenders to contact the USDA Rural Development State Office
immediately following notification of selection to schedule required
agency reviews.
USDA Rural Development State Office staff will work with lenders in
the development of an application package. In response to the Notice,
lenders must submit a response to the office address identified in the
Notice for the scoring and ranking of a proposed GRRHP project. The
lender must provide the requested information concerning the project,
to establish the purpose of the proposed project, its location, and how
it meets the established priorities for funding. The Agency will
determine the highest ranked responses based on priority criteria and a
threshold score.
Notice responses will at least include the following [but the
Agency, at its sole discretion, may request additional information]:
(1) The Project
(a) A brief description of the proposed location of the project,
including town, county, state, and congressional district.
(b) A description of the property and improvements, including lot
size, number of units, building type, type of construction, etc.,
including preliminary drawings, if available.
(c) The proposed development schedule.
(d) Total project development cost.
[[Page 3558]]
(e) The proposed rent structure and area median income (HUD
published area median incomes can be found online at https://
www.huduser.org).
(f) Evidence of site control by the proposed borrower or a purchase
option.
(g) Description of any environmental issues that may affect the
project.
(h) Amount of loan to be guaranteed.
(i) Type of project (e.g., elderly or family).
(2) The Proposed Financing
(a) Proposed loan amount and the proposed borrower's equity.
(b) Proposed use of interest credit--If the lender proposes to use
interest credit, this section should include the maximum basis points
the lender will charge the borrower for the project. Selection and
scoring criteria that the project must meet to receive interest credit
will be published in the Notice.
(c) Estimated development budget (total and cost/unit) and the
proposed sources and uses of funds. This information should include all
proposed financing sources--the amount, type, rates and terms of loans,
tax credits, or grant funds. Letters of application and commitment
letters should be included, if available.
(d) Estimated loan-to-development cost ratio for the guaranteed
loan.
(e) Proposed Agency guarantee percentage for guaranteed loan (under
no condition can the percentage exceed 90 percent of the loan amount).
(f) Collateral--all security, in addition to the real property,
proposed to secure the loan.
(3) The Proposed Borrower
(a) The name of the borrower and the type of ownership entity. List
the general partners if a limited partnership, officers if a
corporation or members of a Limited Liability Corporation.
(b) Borrower's contact name, mailing address, phone and fax
numbers, and e-mail address.
(c) Certification that the borrower or principals of the ownership
are not barred from participating in Federal housing programs and are
not delinquent on any Federal debt.
(d) Borrower's unaudited or audited financial statements.
(e) Statement of borrower's housing development experience.
(4) Lender Eligibility and Approval Status
Evidence that the lender is either an approved lender for the
purposes of the GRRHP or that the lender is eligible to apply for
approved lender status. The lender's application for approved lender
status can be submitted with the response but must be submitted to the
National Office within 30 calendar days of the lender's receipt of the
``Notice to Proceed with Application Processing'' letter.
(5) Competitive Criteria
Information that shows how the proposal is responsive to the
selection criteria specified in the Notice.
(6) Lender Certification
A commitment letter signed by the lender, on the lender's
letterhead, indicating that the lender will make a loan to the borrower
for the proposed project, under specified terms and conditions subject
only to the issuance of a guarantee by the Agency.
The deadline for the submission of a complete application and
application fee is 90 days from the date of notification of response
selection. If the application and fee are not received by the
appropriate State Office within 90 days from the date of notification,
the selection is subject to cancellation, thereby allowing another
response that is ready to proceed with processing to be selected. The
State Office has the ability to extend this 90 day deadline for receipt
of an application only for good cause.
Obligation of Program Funds: The Agency will only obligate funds to
projects that meet the requirements for obligation, including having
undergone a satisfactory environmental review in accordance with the
National Environmental Protection Act (NEPA) and having submitted the
$2,500 application fee and completed Form RD 3565-1 for the selected
project.
Conditional Commitment: Once required documents for obligation and
the application fee are received and all NEPA requirements have been
met, the USDA Rural Development State Office will issue a conditional
commitment, which stipulates the conditions that must be fulfilled
before the issuance of a guarantee, in accordance with 7 CFR 3565.303.
Issuance of Guarantee: The USDA Rural Development Office will issue
a guarantee to the lender for a project in accordance with 7 CFR
3565.303. No guarantee can be issued without a complete application,
review of appropriate certifications, satisfactory assessment of the
appropriate level of environmental review, and the completion of any
conditional requirements.
Non-Discrimination Statement
USDA prohibits discrimination in all its programs and activities on
the basis of race, color, national origin, age, disability, and where
applicable, sex, marital status, religion, sexual orientation, genetic
information, political beliefs, reprisal, or because all or part of an
individual's income is derived from any public assistance program. (Not
all prohibited bases apply to all programs.) Persons with disabilities
who require alternative means for communication of program information
(Braille, large print, audiotape, etc.) should contact USDA's TARGET
Center at (202) 720-2600 (voice and TDD). To file a complaint of
discrimination, write to USDA, Director, Office of Civil Rights, 1400
Independence Avenue, SW., Washington, DC 20250-9410, or call (800) 795-
3272 (voice), or (202) 720-6382 (TDD). ``USDA is an equal opportunity
provider, employer, and lender.''
Dated: January 9, 2009.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. E9-1074 Filed 1-16-09; 8:45 am]
BILLING CODE 3410-XV-P
