Notice of Acceptance of Proposals for the Section 538 Multi-Family Housing Guaranteed Rural Rental Housing Program (GRRHP) Demonstration Program for Fiscal Year 2009, 47185-47186 [E9-21859]
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47185
Notices
Federal Register
Vol. 74, No. 177
Tuesday, September 15, 2009
This section of the FEDERAL REGISTER
contains documents other than rules or
proposed rules that are applicable to the
public. Notices of hearings and investigations,
committee meetings, agency decisions and
rulings, delegations of authority, filing of
petitions and applications and agency
statements of organization and functions are
examples of documents appearing in this
section.
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Acceptance of Proposals for
the Section 538 Multi-Family Housing
Guaranteed Rural Rental Housing
Program (GRRHP) Demonstration
Program for Fiscal Year 2009
Rural Housing Service, USDA.
Notice.
AGENCY:
sroberts on DSKD5P82C1PROD with NOTICES
ACTION:
SUMMARY: Through this Notice, the
Agency announces the implementation
of a demonstration program under the
section 538 Guaranteed Rural Rental
Housing Program (GRRHP) pursuant to
7 CFR 3565.4 for Fiscal Year (FY) 2009
and 7 CFR 3565.17 demonstration
programs. The Demonstration Program’s
purpose is to test the viability and
efficacy of the concept of a continuous
loan note guarantee through the
construction and permanent loan
financing phases of a project. Those
applications that meet the
Demonstration Program’s qualifying
criteria and are selected to participate
will be offered one loan note guarantee
upon closing of the construction loan
that will be in effect throughout both of
the project’s construction and
permanent phases without interruption.
The Agency will permit
approximately $10 million in previously
obligated program loan authority to
participate in this Demonstration
Program. 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.
Eligible Lenders wishing to have their
GRRHP obligated, but unfunded
guaranteed 538 applications considered
for the FY 2009 Demonstration Program
must send a signed request on its
letterhead with the proposed project
details as outlined in the
VerDate Nov<24>2008
19:12 Sep 14, 2009
Jkt 217001
‘‘Demonstration Program Response
Submission Address’’ section of this
Notice. No other applications will be
considered.
Demonstration Program Guidelines
The following guidelines are being
provided to facilitate a structured
implementation of the program:
1. Demonstration guarantee. The
Demonstration guarantee is a guarantee
that will be offered to selected lenders
who submit applications in response to
this Notice. The Demonstration
guarantee will consist of one loan note
guarantee that will be issued upon
closing of the construction loan and will
be in effect throughout both of the
project’s construction and permanent
financing phases without interruption.
2. Upon approval of an eligible
previously obligated guaranteed 538
application from an approved lender,
the Agency will modify the outstanding
conditional commitment to provide a
demonstration guarantee for the
construction and permanent financing
phases of the project, subject to the
availability of funds.
3. Guarantee percentage and payment.
Both construction loan advances and
permanent loans are eligible for a
guarantee subject to the following
limitations:
Construction loan advances and
permanent loans. The Agency can
guarantee the ‘‘construction and
permanent’’ financing phases of a
project. The Agency cannot, however,
guarantee only the ‘‘construction’’
financing phase of a project. Guarantees
under the demonstration guarantee will
cover construction loan advances and
the subsequent permanent loan. 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 a 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.
4. A lender making a construction
loan must demonstrate an ability to
originate and service construction loans.
5 Guarantee during construction. The
Agency will issue a demonstration
guarantee only to an approved lender.
PO 00000
Frm 00001
Fmt 4703
Sfmt 4703
6. Demonstration guarantee program
compliance requirement. For a
demonstration guarantee, after the loan
note guarantee is issued, the following
items will have to be submitted and
approved by the Agency within the
timeframe stipulated by the Agency:
(i) A certificate of substantial
completion;
(ii) A certificate of occupancy or
similar evidence of local approval;
(iii) A final cost certification in a form
acceptable to the Agency;
(iv) A complete copy of the
permanent loan closing docket, if a
separate closing is conducted for the
permanent loan; and
(v) Any other information necessary
for the Agency to comply with its
regulations.
Items (i), (ii) and (iii) are only
required if the project is constructed. To
facilitate the implementation of the
program, certain program forms may be
addended to include relevant
Demonstration Program requirements.
The selected applicants will be
subject to the Demonstration Program
guidelines in this Notice, and GRRHP’s
controlling statute, regulations, and
handbook as amended. The GRRHP
operates under the Housing Act of 1949,
as amended, and regulations at 7 CFR
part 3565. The GRRHP Origination and
Servicing Handbook (HB–1–3565) is
available to provide lenders and the
general public with guidance on
program administration. HB–1–3565,
which contains a copy of 7 CFR part
3565 in Appendix 1, can be found at the
Rural Development Instructions Web
site address https://
www.rurdev.usda.gov/regs/
hblist.html#hbw6.
Demonstration Program Eligibility:
GRRHP obligated applications that meet
the following criteria will be eligible for
consideration to be selected into the
Demonstration Program:
1. The project must have been
awarded and continue to receive Low
Income Housing Tax Credits.
2. The project must have a loan to cost
(LTC) ratio equal to or lower than 50%.
3. The Lender must have submitted a
timely response to this Notice in
accordance with the ‘‘Demonstration
Program Response Submission
Address’’ section of this Notice.
4. A Lender must have submitted its
application under the GRRHP 2008
Notice published February 4, 2008,
E:\FR\FM\15SEN1.SGM
15SEN1
47186
Federal Register / Vol. 74, No. 177 / Tuesday, September 15, 2009 / Notices
Volume 73 FR 6469–6477, the GRRHP
2009 Notice published January 21, 2009,
Volume 74 FR, 3551–3558, or the
GRRHP 2009 Notice published on June
26, 2009, Volume 74 FR, 30503–30510.
5. The application to be considered
must have been obligated from October
1, 2008 to December 18, 2009. However,
if Demonstration funds have not been
fully utilized by December 18, 2009, the
Agency may consider applications
obligated on or after October 1, 2007.
6. The Lender must not have closed
the construction loan prior to its
selection to participate in the
Demonstration Program.
Demonstration Program Selection
Process
Selections from qualified applications
that have requested consideration and
met all requirements for this
Demonstration Program will be based on
priority scores they received on their
previously submitted applications, with
the highest scoring applications, being
selected first, until all available
Demonstration Program Authority is
used. In the event of a tie, priority will
be given to the application that: is in the
smaller rural community, and in case of
a subsequent tie to the application that
has the lowest LTC ratio.
The first round of selections into the
Demonstration Program will be made on
September 18, 2009. In the event there
are not enough qualified requests for
selection into the Demonstration
Program to utilize all the available
Demonstration Program Authority, then
until all funds are exhausted, an
additional selection process will be
conducted on the 3rd Friday of each the
month starting October 16, 2009, with
December 18, 2009 being the last
selection date. All applicants will be
notified of the selection results no later
than 30 business days from the date of
selection.
sroberts on DSKD5P82C1PROD with NOTICES
Demonstration Program Response
Submission Address
Eligible lenders wishing to have their
obligated applications considered for
selection into the Demonstration
Program must submit a signed request
(not to exceed one page) on its
letterhead that includes the following
information:
1. Developer’s Name
2. Borrower’s Name
3. Project’s Name
4. Project’s Address (City and State)
5. Project Type (Family, Senior, or
Mixed)
6. Project’s Total Units
7. Project’s Total Development Cost
(TDC)
8. Amount of 538 Loan Guarantee
VerDate Nov<24>2008
19:12 Sep 14, 2009
Jkt 217001
9. Amount of Tax Credits Awarded
10. Amount and Source of Other
Financing
11. Loan to Cost (LTC) %
12. Area Population
13. Date obligated or date of
Conditional Commitment
Send the Demonstration Program
Response Submission Letter with all of
the information listed above, along with
a copy of the State Office’s ‘‘Proceed
with Application/NOFA Response
Selection’’ letter and a copy of the tax
credit award notification to: Tammy S.
Daniels, Financial and Loan Analyst,
Multi-Family Housing Guaranteed Loan
Division, Guaranteed Rural Rental
Housing Program, USDA Rural
Development, South Agriculture
Building, Room 1233, STOP 0781, 1400
Independence Avenue, SW.,
Washington, DC 20250–0781.
Requests may also be faxed to 202–
690–3444 or sent by e-mail (signed PDF
copies of the above submissions) to
tammy.daniels@wdc.usda.gov. Eligible
lenders mailing a request must provide
sufficient time to permit delivery to the
Submission Address. If all the funds set
aside for the Demonstration Program
have not been utilized, the Agency will
continue to accept requests for inclusion
into the FY 2009 Demonstration
Program until December 17, 2009.
Acceptance by a U.S. Post Office or
private mailer does not constitute
delivery. Postage due responses and
applications will not be accepted.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995, the information
collection requirements contained in
this Notice is approved by the Office of
Management and Budget (OMB) under
OMB Control Number 0575–0174.
Nondiscrimination Statement
‘‘The U.S. Department of Agriculture
(USDA) prohibits discrimination in all
its programs and activities on the basis
of race, color, national origin, sex,
religion, age, disability, political beliefs,
sexual orientation, marital status or
family status (not all prohibited basis
apply to all programs). Persons with
disabilities who require alternative
means for communication of program
information (Braille, large print,
audiotape, etc.) should contact the
USDA’s Target Center at (202) 720–2600
(voice or TDD). To file a complaint of
discrimination, write USDA, Director,
Office of Civil Rights, Room 326–W,
Whitten Building, 1400 Independence
Avenue, SW., Washington, DC 20250–
9410, or call toll free, (866) 632–9992
(Voice). TDD users can contact USDA
through local relay (800) 720–6382
PO 00000
Frm 00002
Fmt 4703
Sfmt 4703
(TDD) or (866) 377–8642 (relay voice
users). USDA is an equal opportunity
provider and employer.’’
Dated: September 3, 2009.
Sylvia Bolivar,
Acting Administrator, Rural Housing Service.
[FR Doc. E9–21859 Filed 9–14–09; 8:45 am]
BILLING CODE 3410–XV–P
DEPARTMENT OF AGRICULTURE
Farm Service Agency
Information Collection; Disaster
Assistance (General)
Farm Service Agency, USDA.
Notice; request for comment.
AGENCY:
ACTION:
SUMMARY: In accordance with the
Paperwork Reduction Act of 1995, the
Farm Service Agency (FSA) is seeking
comments from all interested
individuals and organizations on an
extension and revision of a currently
approved information collection
associated with Disaster Assistance
programs. The information collection is
needed to identify disaster areas and
establish eligibility for both primary and
contiguous counties for assistance from
FSA. This assistance includes FSA
emergency loans and the Supplemental
Revenue Assistance Payments (SURE)
program (required by the 2008 Farm
Bill) that are available to eligible and
qualified farmers and ranchers. SURE
provides assistance to eligible producers
who suffered crop production or crop
quality losses, or both due to natural
disaster. The total burden hours have
been revised to reflect the number of
Secretarial requests for natural disaster
assistance during the 2008 crop year.
DATES: Comments must be received on
or before November 16, 2009. Comments
received after that date will be
considered to the extent practicable.
ADDRESSES: We invite you to submit
comments on this notice. In your
comments, include date, volume, and
page number of this issue of the Federal
Register. You may submit comments by
any of the following methods:
• Mail: Candance Thompson, Acting
Director, Production, Emergencies and
Compliance Division, to Farm Service
Agency, USDA, Mail Stop 0517, 1400
Independence Avenue, SW.,
Washington, DC 20250–0517
• E-mail:
Candy.Thompson@wdc.usda.gov.
• Fax: (202) 690–2130.
You may also send comments to the
Desk Officer for Agriculture, Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Washington, DC 20503. Copies of the
E:\FR\FM\15SEN1.SGM
15SEN1
Agencies
[Federal Register Volume 74, Number 177 (Tuesday, September 15, 2009)]
[Notices]
[Pages 47185-47186]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21859]
========================================================================
Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
========================================================================
Federal Register / Vol. 74, No. 177 / Tuesday, September 15, 2009 /
Notices
[[Page 47185]]
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Acceptance of Proposals for the Section 538 Multi-
Family Housing Guaranteed Rural Rental Housing Program (GRRHP)
Demonstration Program for Fiscal Year 2009
AGENCY: Rural Housing Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: Through this Notice, the Agency announces the implementation
of a demonstration program under the section 538 Guaranteed Rural
Rental Housing Program (GRRHP) pursuant to 7 CFR 3565.4 for Fiscal Year
(FY) 2009 and 7 CFR 3565.17 demonstration programs. The Demonstration
Program's purpose is to test the viability and efficacy of the concept
of a continuous loan note guarantee through the construction and
permanent loan financing phases of a project. Those applications that
meet the Demonstration Program's qualifying criteria and are selected
to participate will be offered one loan note guarantee upon closing of
the construction loan that will be in effect throughout both of the
project's construction and permanent phases without interruption.
The Agency will permit approximately $10 million in previously
obligated program loan authority to participate in this Demonstration
Program. 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.
Eligible Lenders wishing to have their GRRHP obligated, but
unfunded guaranteed 538 applications considered for the FY 2009
Demonstration Program must send a signed request on its letterhead with
the proposed project details as outlined in the ``Demonstration Program
Response Submission Address'' section of this Notice. No other
applications will be considered.
Demonstration Program Guidelines
The following guidelines are being provided to facilitate a
structured implementation of the program:
1. Demonstration guarantee. The Demonstration guarantee is a
guarantee that will be offered to selected lenders who submit
applications in response to this Notice. The Demonstration guarantee
will consist of one loan note guarantee that will be issued upon
closing of the construction loan and will be in effect throughout both
of the project's construction and permanent financing phases without
interruption.
2. Upon approval of an eligible previously obligated guaranteed 538
application from an approved lender, the Agency will modify the
outstanding conditional commitment to provide a demonstration guarantee
for the construction and permanent financing phases of the project,
subject to the availability of funds.
3. Guarantee percentage and payment. Both construction loan
advances and permanent loans are eligible for a guarantee subject to
the following limitations:
Construction loan advances and permanent loans. The Agency can
guarantee the ``construction and permanent'' financing phases of a
project. The Agency cannot, however, guarantee only the
``construction'' financing phase of a project. Guarantees under the
demonstration guarantee will cover construction loan advances and the
subsequent permanent loan. 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 a 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.
4. A lender making a construction loan must demonstrate an ability
to originate and service construction loans.
5 Guarantee during construction. The Agency will issue a
demonstration guarantee only to an approved lender.
6. Demonstration guarantee program compliance requirement. For a
demonstration guarantee, after the loan note guarantee is issued, the
following items will have to be submitted and approved by the Agency
within the timeframe stipulated by the Agency:
(i) A certificate of substantial completion;
(ii) A certificate of occupancy or similar evidence of local
approval;
(iii) A final cost certification in a form acceptable to the
Agency;
(iv) A complete copy of the permanent loan closing docket, if a
separate closing is conducted for the permanent loan; and
(v) Any other information necessary for the Agency to comply with
its regulations.
Items (i), (ii) and (iii) are only required if the project is
constructed. To facilitate the implementation of the program, certain
program forms may be addended to include relevant Demonstration Program
requirements.
The selected applicants will be subject to the Demonstration
Program guidelines in this Notice, and GRRHP's controlling statute,
regulations, and handbook as amended. The GRRHP operates under the
Housing Act of 1949, as amended, and regulations at 7 CFR part 3565.
The GRRHP Origination and Servicing Handbook (HB-1-3565) is available
to provide lenders and the general public with guidance on program
administration. HB-1-3565, which contains a copy of 7 CFR part 3565 in
Appendix 1, can be found at the Rural Development Instructions Web site
address https://www.rurdev.usda.gov/regs/hblist.html#hbw6.
Demonstration Program Eligibility: GRRHP obligated applications
that meet the following criteria will be eligible for consideration to
be selected into the Demonstration Program:
1. The project must have been awarded and continue to receive Low
Income Housing Tax Credits.
2. The project must have a loan to cost (LTC) ratio equal to or
lower than 50%.
3. The Lender must have submitted a timely response to this Notice
in accordance with the ``Demonstration Program Response Submission
Address'' section of this Notice.
4. A Lender must have submitted its application under the GRRHP
2008 Notice published February 4, 2008,
[[Page 47186]]
Volume 73 FR 6469-6477, the GRRHP 2009 Notice published January 21,
2009, Volume 74 FR, 3551-3558, or the GRRHP 2009 Notice published on
June 26, 2009, Volume 74 FR, 30503-30510.
5. The application to be considered must have been obligated from
October 1, 2008 to December 18, 2009. However, if Demonstration funds
have not been fully utilized by December 18, 2009, the Agency may
consider applications obligated on or after October 1, 2007.
6. The Lender must not have closed the construction loan prior to
its selection to participate in the Demonstration Program.
Demonstration Program Selection Process
Selections from qualified applications that have requested
consideration and met all requirements for this Demonstration Program
will be based on priority scores they received on their previously
submitted applications, with the highest scoring applications, being
selected first, until all available Demonstration Program Authority is
used. In the event of a tie, priority will be given to the application
that: is in the smaller rural community, and in case of a subsequent
tie to the application that has the lowest LTC ratio.
The first round of selections into the Demonstration Program will
be made on
September 18, 2009. In the event there are not enough qualified
requests for selection into the Demonstration Program to utilize all
the available Demonstration Program Authority, then until all funds are
exhausted, an additional selection process will be conducted on the 3rd
Friday of each the month starting October 16, 2009, with December 18,
2009 being the last selection date. All applicants will be notified of
the selection results no later than 30 business days from the date of
selection.
Demonstration Program Response Submission Address
Eligible lenders wishing to have their obligated applications
considered for selection into the Demonstration Program must submit a
signed request (not to exceed one page) on its letterhead that includes
the following information:
1. Developer's Name
2. Borrower's Name
3. Project's Name
4. Project's Address (City and State)
5. Project Type (Family, Senior, or Mixed)
6. Project's Total Units
7. Project's Total Development Cost (TDC)
8. Amount of 538 Loan Guarantee
9. Amount of Tax Credits Awarded
10. Amount and Source of Other Financing
11. Loan to Cost (LTC) %
12. Area Population
13. Date obligated or date of Conditional Commitment
Send the Demonstration Program Response Submission Letter with all
of the information listed above, along with a copy of the State
Office's ``Proceed with Application/NOFA Response Selection'' letter
and a copy of the tax credit award notification to: Tammy S. Daniels,
Financial and Loan Analyst, Multi-Family Housing Guaranteed Loan
Division, Guaranteed Rural Rental Housing Program, USDA Rural
Development, South Agriculture Building, Room 1233, STOP 0781, 1400
Independence Avenue, SW., Washington, DC 20250-0781.
Requests may also be faxed to 202-690-3444 or sent by e-mail
(signed PDF copies of the above submissions) to
tammy.daniels@wdc.usda.gov. Eligible lenders mailing a request must
provide sufficient time to permit delivery to the Submission Address.
If all the funds set aside for the Demonstration Program have not been
utilized, the Agency will continue to accept requests for inclusion
into the FY 2009 Demonstration Program until December 17, 2009.
Acceptance by a U.S. Post Office or private mailer does not constitute
delivery. Postage due responses and applications will not be accepted.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995, the
information collection requirements contained in this Notice is
approved by the Office of Management and Budget (OMB) under OMB Control
Number 0575-0174.
Nondiscrimination Statement
``The U.S. Department of Agriculture (USDA) prohibits
discrimination in all its programs and activities on the basis of race,
color, national origin, sex, religion, age, disability, political
beliefs, sexual orientation, marital status or family status (not all
prohibited basis apply to all programs). Persons with disabilities who
require alternative means for communication of program information
(Braille, large print, audiotape, etc.) should contact the USDA's
Target Center at (202) 720-2600 (voice or TDD). To file a complaint of
discrimination, write USDA, Director, Office of Civil Rights, Room 326-
W, Whitten Building, 1400 Independence Avenue, SW., Washington, DC
20250-9410, or call toll free, (866) 632-9992 (Voice). TDD users can
contact USDA through local relay (800) 720-6382 (TDD) or (866) 377-8642
(relay voice users). USDA is an equal opportunity provider and
employer.''
Dated: September 3, 2009.
Sylvia Bolivar,
Acting Administrator, Rural Housing Service.
[FR Doc. E9-21859 Filed 9-14-09; 8:45 am]
BILLING CODE 3410-XV-P