Notice of Funding Availability (NOFA) for Loan Guarantees Under Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal Year 2009, 30503-30510 [E9-14940]
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Federal Register / Vol. 74, No. 122 / Friday, June 26, 2009 / Notices
Animal & Plant Health Inspection
Service
Title: Animal Welfare.
OMB Control Number: 0579–0036.
Summary of Collection: The
Laboratory Animal Welfare Act (AWA)
(Pub. L. 89–544) enacted August 24,
1966, and as amended, required the U.S.
Department of Agriculture (USDA), to
regulate the humane care and handling
of dogs, cats, guinea pigs, hamsters,
rabbits, and nonhuman primates. This
legislation was the result of extensive
demand by organized animal welfare
groups and private citizens requesting a
Federal law covering the transportation,
care, and handling of laboratory
animals. The Animal and Plant Health
Inspection Service (APHIS), Regulatory
Enforcement and Animal Care (AC) has
the responsibility to enforce the Animal
Welfare Act (7 U.S.C. 2131–2156) and
the provisions of 9 CFR, Subchapter A,
which implements the Animal Welfare
Act. The purpose of the AWA is to
ensure that animal use in research
facilities or exhibition purposes are
provided humane care and treatment, to
ensure humane treatment of the animal
during transportation in commerce, and
to protect the owners of animals from
the theft of their animals by preventing
the sale or use of animals which have
been stolen. APHIS will collect
information using several forms.
Need and Use of the Information:
APHIS will collect health certificates,
program of veterinary care, application
for license and record of acquisition,
disposition and transportation of
animals. The information is used to
ensure those dealers, exhibitors,
research facilities, carriers, etc., are in
compliance with the Animal Welfare
Act and regulations and standards
promulgated under this authority of the
Act.
Description of Respondents: Business
or other for-profit; Individuals or
households.
Number of Respondents: 7,450.
Frequency of Responses:
Recordkeeping; Reporting: On occasion.
Total Burden Hours: 87,252.
Animal and Plant Health Inspection
Service
Title: Lacey Act Declaration
Requirements; Plants and Plant
Products.
OMB Control Number: 0579–0349.
Summary of Collection: The Lacey
Act, enacted in 1900 and significantly
amended in 1988, is the United States’
oldest Wildlife Protection Statute. The
Act combats trafficking in ‘‘illegal’’
wildlife, fish, or plants. The Food,
Conservation and Energy Act of 2008,
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which took effect May 22, 2008,
amended the Lacey Act by expanding its
protection to a broader range of plants
and plant products (Section 8204,
Prevention of Illegal Logging Practices).
Need and Use of the Information:
Under the amended Lacey Act,
importers are required to submit a
declaration form (PPQ–505) for certain
plants and plant products. The
declaration must contain, among other
things, the scientific name of the plant,
value of the importation, quantity of the
plant, and name of the country from
which the plant was harvested. If
species varies or is unknown, importers
will have to declare the name of each
species that may have been used to
produce the product. Failure to collect
this information would cause significant
losses for importers of plants and plant
products resulting in serious economic
consequences to the U.S. industries.
Description of Respondents: Business
or other for-profit.
Number of Respondents: 279,398.
Frequency of Responses: Reporting:
On occasion.
Total Burden Hours: 5,029,164.
Ruth Brown,
Departmental Information Collection
Clearance Officer.
[FR Doc. E9–15138 Filed 6–25–09; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Funding Availability (NOFA)
for Loan Guarantees Under Section
538 Guaranteed Rural Rental Housing
Program (GRRHP) for Fiscal Year 2009
Rural Housing Service, USDA.
NOFA.
AGENCY:
ACTION:
SUMMARY: This NOFA supersedes the
notice published January 21, 2009 (74
FR 3551–3558). Responses to the notice
published January 21, 2009 (74 FR
3551–3558) will no longer be accepted.
This is a request for proposals for loan
guarantees under the section 538
Guaranteed Rural Rental Housing
Program pursuant to 7 CFR 3565.4 for
Fiscal Year (FY) 2009. The Omnibus
Appropriations Act, 2009, Public Law
111–8 (the Act) signed on March 11,
2009, states funds to be available from
the rural housing fund for the section
538 guaranteed multi-family loans up to
$129,090,000. The Act goes on to state:
‘‘Provided further, That, for applications
received under the 2009 notice of
funding availability, section 538 multifamily housing guaranteed loans funded
pursuant to this paragraph shall not be
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30503
subject to a guarantee fee and the
interest on such loans may not be
subsidized.’’
For FY 2009, there are also
approximately $12,372,000 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. Interest credit
assistance will be available for
responses that request and are eligible
for disaster funds. 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 Act of 1974. Applicants must
notify the Rural Development contact
person for the respective State, as
indicated in the ‘‘Submission Address’’
section of this NOFA, 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 (MPR)
program. 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
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Federal Register / Vol. 74, No. 122 / Friday, June 26, 2009 / Notices
guaranteed loan proceeds. In order to be
considered, for a transfer, the direct
section 515 housing and MPR projects
must need repairs and undergo
revitalization of a minimum of $6,500
cost per unit. 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 NOFA
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: Eligible responses to this NOFA
will be accepted per this guidance until
December 31, 2009 12 p.m. Eastern
Time. FY 2009 funding will cease to be
available after September 30, 2009.
Funding of applications received after
September 30, 2009 will be subject to
appropriation of and availability of
Fiscal Year 2010 funds.
Selected responses that develop into
complete applications and meet all
Federal environmental requirements
will receive commitments until all
funds are expended. A notice will be
placed in the Federal Register if all FY
2009 funds are committed prior to
September 30, 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 July 20, 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 July
20, 2009, with the highest scoring
responses receiving priority subject to
availability of funds. After July 20, 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 July 20, 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
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16:39 Jun 25, 2009
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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, August 7, 2009, to Thursday,
August 13, 2009, will be obligated by
Tuesday, August 18, 2009). However,
requests received prior to July 20, 2009,
that are not eligible for obligation until
after July 20, 2009, will be obligated no
earlier than Tuesday, July 28, 2009.
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 1263, 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.
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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, Tresca Clemmons.
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 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.
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Federal Register / Vol. 74, No. 122 / Friday, June 26, 2009 / Notices
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.
Michigan State Office, 3001 Coolidge
Road, Suite 200, East Lansing, MI
48823, (517) 324–5154, 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.
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,
(585) 394–0525 ext. 4, TDD (315) 477–
6447, Celeste Frohm.
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.
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16:39 Jun 25, 2009
Jkt 217001
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,
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,
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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, P.O. 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 1263, 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.
Eligibility 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 NOFA.
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, ‘‘Application for Loan and
Guarantee’’ 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.
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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 in 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
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’s 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
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16:39 Jun 25, 2009
Jkt 217001
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 FY 2009
appropriation act does not permit
interest credit.
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
fees to the lender.
(1) There is a flat fee of $500 when a
lender requests USDA Rural
Development to extend the term of a
guarantee commitment.
(2) There is a flat fee of $500 when a
lender requests USDA Rural
Development to reopen an application
when a commitment has expired.
(3) 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.
(4) 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
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Fmt 4703
Sfmt 4703
at https://www.fanniemae.com. For a list
of Ginnie Mae issuers, contact Ginnie
Mae at https://www.ginniemae.gov.
(3) A State or local HFA with a toptier rating from Moody’s or Standard &
Poors, or member of the Federal Home
Loan Bank system, and the
demonstrated ability to underwrite,
originate, process, close, service,
manage, and dispose of multi-family
housing loans in a prudent manner.
(4) Be a GRRHP approved lender,
defined as an entity with a current
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 7 CFR 3565.
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.
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.
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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 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, ‘‘Certification Regarding
Debarment, Suspension, and Other
Responsibility Matters—Primary
Covered Transaction’’, (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 Chapter 2, paragraphs 2.4 and 2.5 of
HB–1–3565 and the lender approval
requirements set forth in Chapter 2
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 Chapter 2,
paragraph 2.5 of HB–1–3565. The
30507
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 NOFA Responses
Content of NOFA Responses: All
responses require lender information
and project specific data. Incomplete
responses will not be considered for
funding. Lenders will be notified of
incomplete responses. Complete
responses are to include a signed cover
letter from the lender on the lender’s
letterhead and the following
information:
(1) Lender certification—The lender
must certify that the lender will make a
loan to the prospective borrower for the
proposed project, under specified terms
and conditions subject to the issuance of
the GRRHP guarantee. Lender
certification must be on the lender’s
letterhead and signed by both the lender
and the prospective borrower.
(2) Project specific data—The lender
must submit the project specific data
below on the lender’s letterhead, signed
by both the lender and the prospective
borrower.
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 ..................................................................
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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.
Sfmt 4703
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Data element
Information that must be included
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 ............................................................................................
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 ..............
Population .................................................................................................
Is a Guarantee for Construction Being Requested?
Loan Term ................................................................................................
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.
Prior to July 20, 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-comefirst-serve basis, provided funds are
available. Projects that score less than
25 points, and projects that score 25
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16:39 Jun 25, 2009
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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.
Have tax credits been awarded?
If tax credits were awarded, submit a copy of the award NOFA/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.
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 July 20, 2009. After
July 20, 2009, the Agency will select the
highest scoring proposals using the
procedure outlined in the DATES section
of this NOFA.
The six 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
0–10,000 people ...........................
10,001–15,000 people ..................
15,001–20,000 people ..................
Frm 00009
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Sfmt 4703
Median income
(dollars)
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 ...........................
Points
20
15
10
5
0
Priority 3—Projects that demonstrate
partnering and leveraging in order to
Points
develop the maximum number of units
and promote partnerships with state and
15 local communities will also receive
10 points. Points will be awarded as
5
follows:
Priority 2—The most needy
communities as determined by the
median income from the most recent
census data will receive points. The
PO 00000
Agency will allocate points to projects
located in communities having the
lowest median income. Points for
median income will be awarded as
follows:
Loan to total development cost
ratio (percentage %)
90–100 ..........................................
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0
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Loan to total development cost
ratio (percentage %)
Points
Less than 90–70 ...........................
Less than 70–50 ...........................
Less than 50 .................................
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:
USDA Rural Development State Office
staff will work with lenders in the
development of an application package.
In response to the NOFA, lenders must
submit a response to the office address
identified in the NOFA for the scoring
and ranking of a proposed GRRHP
project. The lender must provide the
requested information concerning the
project, to establish the purpose of the
proposed project, its location, and how
it meets the established priorities for
funding. The Agency will determine the
highest ranked responses based on
priority criteria and a threshold score.
NOFA responses will at least include
the following [but the Agency, at its sole
discretion, may request additional
information]:
(1) The Project
(a) A brief description of the proposed
location of the project, including town,
county, state, and congressional district.
(b) A description of the property and
improvements, including lot size,
number of units, building type, type of
construction, etc., including preliminary
Ratio of 3–5 bedroom units to
drawings, if available.
Points
total units
(c) The proposed development
More than 50% .............................
10 schedule.
(d) Total project development cost.
21%–50% .....................................
5
(e) The proposed rent structure and
Less than 21%–more than 0% .....
1
area median income (HUD published
area median incomes can be found
Priority 6—NOFA responses for the
online at https://www.huduser.org).
revitalization, repair, and transfer (as
(f) Evidence of site control by the
stipulated in 7 CFR 3560.406) of
proposed borrower or a purchase
existing direct section 515 housing and
option.
properties involved in the Agency’s
(g) Description of any environmental
MPR program (transfer costs, including
issues that may affect the project.
equity payments, are subject to Agency
(h) Amount of loan to be guaranteed.
approval and must be an eligible use of
(i) Type of project (e.g., elderly or
loan proceeds listed in 7 CFR 3565.205)
family).
will receive an additional 30 points.
Notifications: Responses will be
(2) The Proposed Financing
reviewed for completeness and
(a) Proposed loan amount and the
eligibility. The USDA Rural
proposed borrower’s equity.
Development will notify those lenders
(b) Estimated development budget
whose responses are selected via letter.
(total and cost/unit) and the proposed
The USDA Rural Development will
sources and uses of funds. This
request lenders without GRRHP lender
information should include all proposed
approval to apply for GRRHP lender
financing sources—the amount, type,
approval within 30 days upon receipt of rates and terms of loans, tax credits, or
notification of selection. For
grant funds. Letters of application and
information regarding GRRHP lender
commitment letters should be included,
approval, please refer to the section
if available.
entitled ‘‘Submission of Documentation
(c) Estimated loan-to-development
for GRRHP Lender Approval’’ in this
cost ratio for the guaranteed loan.
NOFA.
(d) Proposed Agency guarantee
Lenders will also be invited to submit percentage for guaranteed loan (under
a complete application to the USDA
no condition can the percentage exceed
Rural Development State Office where
90 percent of the loan amount).
the project is located.
(e) Collateral—all security, in addition
Submission of GRRHP Applications:
to the real property, proposed to secure
Notification letters will instruct lenders the loan.
to contact the USDA Rural Development
(3) The Proposed Borrower
State Office immediately following
notification of selection to schedule
(a) The name of the borrower and the
required agency reviews.
type of ownership entity. List the
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30509
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
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 ‘‘NOFA to
Proceed with Application Processing’’
letter.
(5) Competitive Criteria
Information that shows how the
proposal is responsive to the selection
criteria specified in the NOFA.
(6) Lender Certification
A commitment letter signed by the
lender, on the lender’s letterhead,
indicating that the lender will make a
loan to the borrower for the proposed
project, under specified terms and
conditions subject only to the issuance
of a guarantee by the Agency. The
deadline for the submission of a
complete application and is 90 days
from the date of notification of response
selection. If the application is 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 90day 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 completed Form RD 3565–1 for the
selected project.
Conditional Commitment: Once the
required documents for obligation are
received and all NEPA requirements
have been met, the USDA Rural
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Federal Register / Vol. 74, No. 122 / Friday, June 26, 2009 / Notices
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: June 18, 2009.
˜
Tammye H. Trevino,
Administrator, Rural Housing Service.
[FR Doc. E9–14940 Filed 6–25–09; 8:45 am]
BILLING CODE 3410–XV–P
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Funds Availability (NOFA)
Inviting Applications for the Rural
Community Development Initiative
(RCDI) for Fiscal Year 2009
Rural Housing Service, USDA.
ACTION: Notice of solicitation of
applications.
AGENCY:
SUMMARY: This Notice announces the
availability of $6,256,000 of competitive
grant funds for the RCDI program
through the Rural Housing Service
(RHS), an agency within the USDA
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16:39 Jun 25, 2009
Jkt 217001
Rural Development mission area herein
referred to as the Agency. Applicants
must provide matching funds in an
amount at least equal to the Federal
grant. These grants will be made to
qualified intermediary organizations
that will provide financial and technical
assistance to recipients to develop their
capacity and ability to undertake
projects related to housing, community
facilities, or community and economic
development. This Notice lists the
information needed to submit an
application for these funds.
DATES: The deadline for receipt of an
application is 4 p.m. local time,
September 24, 2009. The application
date and time are firm. The Agency will
not consider any application received
after the deadline. Applicants intending
to mail applications must provide
sufficient time to permit delivery on or
before the closing deadline date and
time. Acceptance by the United States
Postal Service or private mailer does not
constitute delivery. Facsimile (FAX) and
postage due applications will not be
accepted.
Entities wishing to apply for
assistance may download the
application documents and
requirements delineated in this Notice
from the RCDI Web site: https://
www.rurdev.usda.gov/rhs/rcdi/
index.htm. Application information for
electronic submissions may be found at
https://www.grants.gov. Applicants may
also request paper application packages
from the Rural Development office in
their state. A list of Rural Development
offices is included in this Notice.
FOR FURTHER INFORMATION CONTACT: The
Rural Development office for the state
the applicant is located in. A list of
Rural Development State Office contacts
is included in this Notice.
ADDRESSES:
Programs Affected
This program is listed in the Catalog
of Federal Domestic Assistance under
Number 10.446. This program is not
subject to the provisions of Executive
Order 12372, which requires
intergovernmental consultation with
State and local officials because it is not
listed by the Secretary of Agriculture,
pursuant to 7 CFR 3015.302, as a
covered program.
Paperwork Reduction Act
The paperwork burden has been
cleared by the Office of Management
and Budget (OMB) under OMB Control
Number 0575–0180.
National Environmental Policy Act
This document has been reviewed in
accordance with 7 CFR part 1940–G,
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Frm 00011
Fmt 4703
Sfmt 4703
‘‘Environmental Program.’’ Rural
Development has determined that this
NOFA does not constitute a major
federal action significantly affecting the
quality of the human environment, and
an Environmental Impact Statement is
not required. Furthermore, individual
awards under this NOFA are hereby
classified as Categorial Exclusions
which do not require any additional
documentation.
SUPPLEMENTARY INFORMATION:
Overview
Federal Agency: Rural Housing
Service.
Funding Opportunity Title: Rural
Community Development Initiative.
Announcement Type: Initial
Announcement.
Catalog of Federal Domestic
Assistance (CFDA) Number: 10.446.
Part I—Funding Opportunity
Description
Congress initially created the RCDI in
Fiscal Year (FY) 2000 to develop the
capacity and ability of nonprofit
organizations, low-income rural
communities, or federally recognized
tribes to undertake projects related to
housing, community facilities, or
community and economic development
in rural areas.
Part II—Award Information
Congress appropriated $6,256,000 in
FY 2009 for the RCDI. Qualified private,
nonprofit and public (including tribal)
intermediary organizations proposing to
carry out financial and technical
assistance programs will be eligible to
receive the funding. The intermediary
will be required to provide matching
funds in an amount at least equal to the
RCDI grant. The respective minimum
and maximum grant amount per
intermediary is $50,000 and $300,000.
The intermediary must provide a
program of financial and technical
assistance to a private nonprofit,
community-based housing and
development organization, a lowincome rural community or a federally
recognized tribe.
Part III—Eligibility Information
A. Eligible Applicants
1. Qualified private, nonprofit,
including faith-based, and community
organizations in accordance with 7 CFR
Part 16, and public (including tribal)
intermediary organizations. Definitions
that describe eligible organizations and
other key terms are listed below.
2. RCDI grantees that have an
outstanding grant over 3 years old, as of
the application due date in this Notice,
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]]>Agencies
[Federal Register Volume 74, Number 122 (Friday, June 26, 2009)]
[Notices]
[Pages 30503-30510]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-14940]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Funding Availability (NOFA) for Loan Guarantees Under
Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal
Year 2009
AGENCY: Rural Housing Service, USDA.
ACTION: NOFA.
-----------------------------------------------------------------------
SUMMARY: This NOFA supersedes the notice published January 21, 2009 (74
FR 3551-3558). Responses to the notice published January 21, 2009 (74
FR 3551-3558) will no longer be accepted.
This is a request for proposals for loan guarantees under the
section 538 Guaranteed Rural Rental Housing Program pursuant to 7 CFR
3565.4 for Fiscal Year (FY) 2009. The Omnibus Appropriations Act, 2009,
Public Law 111-8 (the Act) signed on March 11, 2009, states funds to be
available from the rural housing fund for the section 538 guaranteed
multi-family loans up to $129,090,000. The Act goes on to state:
``Provided further, That, for applications received under the 2009
notice of funding availability, section 538 multi-family housing
guaranteed loans funded pursuant to this paragraph shall not be subject
to a guarantee fee and the interest on such loans may not be
subsidized.''
For FY 2009, there are also approximately $12,372,000 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. Interest credit assistance will be
available for responses that request and are eligible for disaster
funds. 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 Act of 1974. Applicants must notify the Rural
Development contact person for the respective State, as indicated in
the ``Submission Address'' section of this NOFA, 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
(MPR) program. 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
[[Page 30504]]
guaranteed loan proceeds. In order to be considered, for a transfer,
the direct section 515 housing and MPR projects must need repairs and
undergo revitalization of a minimum of $6,500 cost per unit. 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
NOFA 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: Eligible responses to this NOFA will be accepted per this
guidance until December 31, 2009 12 p.m. Eastern Time. FY 2009 funding
will cease to be available after September 30, 2009. Funding of
applications received after September 30, 2009 will be subject to
appropriation of and availability of Fiscal Year 2010 funds.
Selected responses that develop into complete applications and meet
all Federal environmental requirements will receive commitments until
all funds are expended. A notice will be placed in the Federal Register
if all FY 2009 funds are committed prior to September 30, 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 July 20, 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 July 20, 2009,
with the highest scoring responses receiving priority subject to
availability of funds. After July 20, 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 July 20, 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, August 7, 2009, to
Thursday, August 13, 2009, will be obligated by Tuesday, August 18,
2009). However, requests received prior to July 20, 2009, that are not
eligible for obligation until after July 20, 2009, will be obligated no
earlier than Tuesday, July 28, 2009. 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 1263, 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, Tresca
Clemmons.
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.
[[Page 30505]]
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.
Michigan State Office, 3001 Coolidge Road, Suite 200, East Lansing, MI
48823, (517) 324-5154, 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.
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, (585) 394-0525 ext. 4, TDD
(315) 477-6447, Celeste Frohm.
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,
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, P.O. 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 1263, 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.
Eligibility 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 NOFA.
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, ``Application
for Loan and Guarantee'' 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.
[[Page 30506]]
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 in
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 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's 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 FY 2009 appropriation act does not permit
interest credit.
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 fees to the lender.
(1) There is a flat fee of $500 when a lender requests USDA Rural
Development to extend the term of a guarantee commitment.
(2) There is a flat fee of $500 when a lender requests USDA Rural
Development to reopen an application when a commitment has expired.
(3) 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.
(4) 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, 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 7 CFR 3565. 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.
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.
[[Page 30507]]
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,
``Certification Regarding Debarment, Suspension, and Other
Responsibility Matters--Primary Covered Transaction'', (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 Chapter 2, paragraphs 2.4 and 2.5 of
HB-1-3565 and the lender approval requirements set forth in Chapter 2
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 Chapter 2, 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 NOFA Responses
Content of NOFA Responses: All responses require lender information
and project specific data. Incomplete responses will not be considered
for funding. Lenders will be notified of incomplete responses. Complete
responses are to include a signed cover letter from the lender on the
lender's letterhead and the following information:
(1) Lender certification--The lender must certify that the lender
will make a loan to the prospective borrower for the proposed project,
under specified terms and conditions subject to the issuance of the
GRRHP guarantee. Lender certification must be on the lender's
letterhead and signed by both the lender and the prospective borrower.
(2) Project specific data--The lender must submit the project
specific data below on the lender's letterhead, signed by both the
lender and the prospective borrower.
------------------------------------------------------------------------
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.
[[Page 30508]]
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.
Borrower's Proposed Equity.............
Tax Credits............................ Have tax credits been awarded?
If tax credits were awarded,
submit a copy of the award
NOFA/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.
------------------------------------------------------------------------
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.
Prior to July 20, 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
July 20, 2009. After July 20, 2009, the Agency will select the highest
scoring proposals using the procedure outlined in the DATES section of
this NOFA.
The six 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
[[Page 30509]]
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--NOFA 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 NOFA.
Lenders will also be invited to submit a complete application 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 NOFA,
lenders must submit a response to the office address identified in the
NOFA for the scoring and ranking of a proposed GRRHP project. The
lender must provide the requested information concerning the project,
to establish the purpose of the proposed project, its location, and how
it meets the established priorities for funding. The Agency will
determine the highest ranked responses based on priority criteria and a
threshold score.
NOFA responses will at least include the following [but the Agency,
at its sole discretion, may request additional information]:
(1) The Project
(a) A brief description of the proposed location of the project,
including town, county, state, and congressional district.
(b) A description of the property and improvements, including lot
size, number of units, building type, type of construction, etc.,
including preliminary drawings, if available.
(c) The proposed development schedule.
(d) Total project development cost.
(e) The proposed rent structure and area median income (HUD
published area median incomes can be found online at https://www.huduser.org).
(f) Evidence of site control by the proposed borrower or a purchase
option.
(g) Description of any environmental issues that may affect the
project.
(h) Amount of loan to be guaranteed.
(i) Type of project (e.g., elderly or family).
(2) The Proposed Financing
(a) Proposed loan amount and the proposed borrower's equity.
(b) 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.
(c) Estimated loan-to-development cost ratio for the guaranteed
loan.
(d) Proposed Agency guarantee percentage for guaranteed loan (under
no condition can the percentage exceed 90 percent of the loan amount).
(e) 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
``NOFA to Proceed with Application Processing'' letter.
(5) Competitive Criteria
Information that shows how the proposal is responsive to the
selection criteria specified in the NOFA.
(6) Lender Certification
A commitment letter signed by the lender, on the lender's
letterhead, indicating that the lender will make a loan to the borrower
for the proposed project, under specified terms and conditions subject
only to the issuance of a guarantee by the Agency. The deadline for the
submission of a complete application and is 90 days from the date of
notification of response selection. If the application is 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 completed Form RD
3565-1 for the selected project.
Conditional Commitment: Once the required documents for obligation
are received and all NEPA requirements have been met, the USDA Rural
[[Page 30510]]
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: June 18, 2009.
Tammye H. Trevi[ntilde]o,
Administrator, Rural Housing Service.
[FR Doc. E9-14940 Filed 6-25-09; 8:45 am]
BILLING CODE 3410-XV-P
