Notice of Funding Availability (NOFA) for Loan Guarantees Under Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal Year 2010, 8896-8902 [2010-3959]
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and completion of the environmental
review requirements as prescribed in
RUS’s Environmental Policies and
Procedures, 7 CFR part 1794, as
amended.
Dated: February 19, 2010.
Nivin A. Elgohary,
Acting Assistant Administrator, Electric
Programs, Rural Utilities Service.
[FR Doc. 2010–3986 Filed 2–25–10; 8:45 am]
BILLING CODE 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 2010
Rural Housing Service, USDA.
NOFA.
AGENCY:
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ACTION:
SUMMARY: This is a request for proposals
for loan guarantees under the section
538 Guaranteed Rural Rental Housing
Program (GRRHP) pursuant to 7 CFR
3565.4 for Fiscal Year (FY) 2010. FY
2010 funding for the section 538
program is $129,130,434.78. Applicants
will submit proposals in the form of
‘‘responses.’’ Responses to this NOFA
will be accepted until December 31,
2010, 12 p.m. Eastern Time. 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:
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 for guarantees 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
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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
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
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,
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, 2010, 12 p.m. Eastern
Time.
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
2010 funds are committed prior to
September 30, 2010. Responses to this
NOFA that are received after September
30, 2010, and deemed eligible for
further processing will be funded to the
extent an appropriation act provides
funding for GRRHP for FY 2011.
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 April 1, 2010, 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
April 1, 2010, with the highest scoring
responses receiving priority subject to
availability of funds. After April 1,
2010, 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 April 1, 2010, using the
highest score and the procedures
outlined as follows. Once a complete
application is received and approved,
the Agency will obligate funds.
Obligation requests submitted will be
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accumulated, but not obligated
throughout the week until midnight
Eastern Time every Thursday. To the
extent that funds remain available, the
Agency will obligate the requests
accumulated through the weekly request
deadline of the previous week by the
following Tuesday (i.e., requests
received from Friday, May 14, 2010, to
Thursday, May 20, 2010, will be
obligated by Tuesday, May 25, 2010).
However, requests received prior to
April 1, 2010, that are not eligible for
obligation until after April 1, 2010, will
be obligated no earlier than Tuesday,
April 6, 2010. Funds will be obligated
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) and in the event
there is still a tie;—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.
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, 4121 Carmichael Road,
Suite 601, Sterling Centre, Montgomery,
AL 36106–3683, (334) 279–3440, TDD
(334) 279–3495, Anne Chavers.
Alaska State Office, 800 West Evergreen,
Suite 201, Palmer, AK 99645, (907) 761–
7740, TDD (907) 761–8905, Deborah Davis.
Arizona State Office, 230 North First Ave.,
Suite 206, Phoenix, AZ 85003–1706, (602)
280–8768, TDD (602) 280–8706, Carol O.
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) 792–5813,
TDD (530) 792–5848, Edgar Morales.
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.
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Delaware and Maryland State Office, 1221
College Park Drive, Suite 200, Dover, DE
19904, (302) 857–3615, TDD (302) 857–
3585, Debra Eason.
Florida & Virgin Islands State Office, 4440
N.W. 25th Terrace, P.O. Box 147010,
Gainesville, FL 32614–7010, (352) 338–
3400, TDD (352) 338–3499, Tresca
Clemmons.
Georgia State Office, Stephens Federal
Building, 355 E. Hancock Avenue—Stop
307, 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)
933–8300, TDD (808) 933–8321, Nate
Riedel.
Idaho State Office, 9173 West Barnes Dr.,
Suite A1, 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 46278–1966,
(317) 290–3100 (ext. 413), Carla Orr
Haskins.
Iowa State Office, 210 Walnut Street Room
873, Des Moines, IA 50273, (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–
7300, TDD (859) 224–7422, Paul Higgins.
Louisiana State Office, 3727 Government
Street, Alexandria, LA 71302, (318) 473–
7962, TDD (318) 473–7655, Yvonne R.
Emerson.
Maine State Office, 967 Illinois Ave., Suite 4,
P.O. Box 405, Bangor, ME 04402–0405,
(207) 990–9110, TDD (207) 942–7331,
Robert Nadeau.
Maryland, Served by Delaware State Office.
Massachusetts, Connecticut, & Rhode Island
State Office, 451 West Street—Suite 2,
Amherst, MA 01002, (413) 253–4315, TDD
(413) 253–4590, Paul D. Geoffroy.
Michigan State Office, 3001 Coolidge Road,
Suite 200, East Lansing, MI 48823, (517)
324–5199, TDD (517) 324–5169, Julie
Putnam.
Minnesota State Office, 375 Jackson Street,
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–
5717, Darnella Smith-Murray.
Missouri State Office, 601 Business Loop 70
West, Parkade Center, Suite 235, Columbia,
MO 65203, (573) 876–0987, TDD (573)
876–9480, Rachelle Long.
Montana State Office, 900 Technology Blvd.
Suite B, Bozeman, MT 59718, (406) 585–
2530, TDD (406) 585–2562, Deborah
Chorlton.
Nebraska State Office, Federal Building,
Room 152, 100 Centennial Mall N, Lincoln,
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NE 68508, (402) 437–5734, TDD (402) 437–
5093, Linda Anders.
Nevada State Office, 1390 South Curry Street,
Carson City, NV 89703–9910, (775) 887–
1222 (ext. 13), TDD (775) 885–0633,
William Brewer.
New Hampshire State Office, 10 Ferry Street,
Concord, NH 03301–5004, Suite 218, Box
317, (603) 223–6050, TDD (802) 828–6365,
Robert McCarthy.
New Jersey State Office, 8000 Midlantic Dr.,
5th Floor North Suite 500, 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) 761–4950, TDD (505) 761–4938, Art
Garcia.
New York State Office, The Galleries of
Syracuse, 441 S. Salina Street, Suite 357,
Syracuse, NY 13202–2425, (585) 394–0525
ext. 109, TDD (315) 477–6447, Celeste
Frohm.
North Carolina State Office, 4405 Bland
Road, Suite 260, Raleigh, NC 27609, (919)
873–2063, TDD 711 (state relay system),
William Hobbs.
North Dakota State Office, Federal Building,
Room 208, 220 East Rosser, P.O. Box 1737,
Bismarck, ND 58502, (701) 530–2050, TDD
(701) 530–2090, Mark J. Wax.
Ohio State Office, Federal Building, Room
507, 200 North High Street, Columbus, OH
43215–2477, (614) 255–2418, TDD (800)
877–8339, Melodie Taylor-Ward.
Oklahoma State Office, 100 USDA, Suite 108,
Stillwater, OK 74074–2654, (405) 742–
1070, TDD (405) 742–1007, Ivan S. Graves.
Oregon State Office, 1201 NE. Lloyd Blvd.,
Suite 801, Portland, OR 97232–1274, (503)
414–3353, TDD (503) 414–3387, Rod
Hansen.
Pennsylvania State Office, One Credit Union
Place, Suite 330, Harrisburg, PA 17110–
2996, (717) 237–2279, TDD 711 (state relay
system), Frank Wetherhold.
Puerto Rico State Office, 654 Munoz Rivera
Avenue, Suite 601, Hato Rey, PR 00918,
(787) 766–5095, TDD (787) 766–5332,
Noemi Morant.
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, 3322 West End
Avenue, Suite 300, Nashville, TN 37203,
(615) 783–1300, TDD (615) 783–1397,
Kathy G. Connelly.
Texas State Office, Federal Building, Suite
102, 101 South Main, Temple, TX 76501,
(254) 742–9770, TDD (254) 742–9712,
Joyce McGlothlin.
Utah State Office, Wallace F. Bennett Federal
Building, 125 S. State Street, Room 4311,
Salt Lake City, UT 84138, (801) 524–4302,
TDD (801) 524–3309, Shelly Prothero.
Vermont State Office, City Center, 3rd Floor,
89 Main Street, Montpelier, VT 05602,
(802) 828–6067, TDD (802) 223–6365,
Kenneth Yearman.
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Virgin Islands, Served by Florida State
Office.
Virginia State Office, 1606 Santa Rosa Road,
Suite 238, Richmond, VA 23229, (804)
287–1596, TDD (804) 287–1753, C.J.
Michels.
Washington State Office, 1835 Black Lake
Blvd. SW., Suite B, Olympia, WA 98512,
(360) 704–7740, TDD (360) 704–7772,
Tammy Repine.
Western Pacific Territories, Served by Hawaii
State Office.
West Virginia State Office, Federal Building,
1550 Earl Core Road, Suite 101,
Morgantown, WV 26505, (304) 284–4872,
TDD (304) 284–4836, David L. Cain.
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) 856–7524 ext.
124, TDD (307) 233–6733, Yvette Wilson.
FOR FURTHER INFORMATION CONTACT:
Monica Cole, 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:
monica.cole@wdc.usda.gov. Telephone:
(202) 720–1251. This number is not tollfree. 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 2009 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 2009 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’’) submitted by the lender
within 90 days from the date of
notification of response selection
(unless an extension was granted by the
Agency), will be eligible for FY 2010
program dollars and will compete for
available FY 2010 funds without having
to complete a FY 2010 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
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Agency, private lenders, and public
agencies.
Responses Must Be Submitted By: The
Agency will only accept responses from
GRRHP eligible or approved lenders as
described in 7 CFR 3565.102 and
3565.103 respectively.
Qualifying Properties: Qualifying
properties include new construction for
multi-family housing units and the
acquisition of existing structures with a
minimum per unit rehabilitation
expenditure requirement in accordance
with 7 CFR 3565.252.
Also eligible is the revitalization,
repair and transfer (as stipulated in 7
CFR 3560.406) of existing direct section
515 housing (transfer costs are subject to
Agency approval and must be an
eligible use of loan proceeds as listed in
7 CFR 3565.205) and properties
involved in the Agency’s MPR program.
Equity payment, as stipulated 7 CFR
3560.406, in the transfer of existing
direct section 515 housing, is an eligible
use of guaranteed loan proceeds. In
order to be considered, the transfer of
direct section 515 housing and MPR
projects must need repairs and undergo
revitalization of a minimum of $6,500
per unit.
Eligible Financing Sources: Any form
of Federal, State, and conventional
sources of financing can be used in
conjunction with the loan guarantee,
including Home Investment Partnership
Program (HOME) grant funds, tax
exempt bonds, and low income housing
tax credits.
Maximum Guarantee: The Agency
can guarantee the ‘‘permanent’’ loan.
The Agency can only guarantee
construction advances for the
construction of the property if a
guarantee for the permanent loan is
requested for the same property. The
Agency cannot, however, guarantee only
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
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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.
Energy Conservation: USDA Rural
Development has adopted a policy that
all new multi-family housing projects
financed in whole or in part by the
USDA, will be encouraged to engage in
sustainable building development that
emphasizes energy-efficiency and
conservation. In order to assist in the
achievement of this goal, any GRRHP
project that participates in one or all of
the following programs may receive a
maximum of twenty (20) additional
points added to their project score.
Participation in these nationwide
initiatives is voluntary, but strongly
encouraged.
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 2010
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 2010.
Program Fees for FY 2010: As a
condition of receiving a loan guarantee,
the Agency will charge the following
fees to the lender.
(1) There is no application fee for
lenders submitting an application in FY
2010.
(2) There is a flat fee of $500 when a
lender requests USDA Rural
Development to extend the term of a
guarantee commitment.
(3) There is a flat fee of $500 when a
lender requests USDA Rural
Development to reopen an application
when a commitment has expired.
(4) 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.
(5) There is no lender application fee
for lender approval in FY 2010.
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.
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Below is a list of some of the eligible
lender criteria under 7 CFR 3565.102:
(1) Licensed business entity that
meets the qualifications and has the
approval of the Secretary of Housing
and Urban Development (HUD) to make
multi-family housing loans that are
insured under the National Housing
Act. A complete list of HUD approved
lenders can be found on the HUD Web
site at https://www.hud.gov.
(2) A licensed business entity that
meets the qualifications and has the
approval of the Ginnie Mae or Freddie
Mac or Fannie Mae corporations to
make multi-family housing loans that
are sold to the same corporations. A
complete list of Freddie Mac approved
lenders can be found in Freddie Mac’s
Web site at https://www.freddiemac.com.
Fannie Mae approved lenders are found
at https://www.fanniemae.com. For a list
of Ginnie Mae issuers, contact Ginnie
Mae at https://www.ginniemae.gov.
(3) A State or local HFA with a toptier rating from Moody’s or Standard &
Poors, or member of the Federal Home
Loan Bank system, and the
demonstrated ability to underwrite,
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
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meet the standards in the 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 ‘‘Lender Application—
Section 538 Guaranteed Rural Rental
Housing Program’’ on the envelope.
As the Section 538 program does not
have a formal application form, a
complete application consists of a cover
letter requesting GRRHP lender
approval and the following
documentation:
(1) Request for GRRHP lender
approval on the lender’s letterhead;
(2) Lenders who are HUD, Ginnie
Mae, Freddie Mac or Fannie Mae 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
8899
requirements of 7 CFR part 3565,
subpart C. 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 included
Lender Name ............................................................................................
Lender Tax ID # ........................................................................................
Lender Contact Name ...............................................................................
Mailing Address ........................................................................................
Phone # .....................................................................................................
Fax # .........................................................................................................
E-mail Address ..........................................................................................
Borrower Name and Organization Type ...................................................
sroberts on DSKD5P82C1PROD with NOTICES
Data element
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.
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Fmt 4703
State whether the project is new construction or acquisition with rehabilitation. Transfer costs, including equity payments, are subject to
Agency approval and must be an eligible use of loan proceeds in 7
CFR 3565.205.
Sfmt 4703
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Federal Register / Vol. 75, No. 38 / Friday, February 26, 2010 / Notices
Data element
Information that must be included
Project Location Town or City ..................................................................
Project County ..........................................................................................
Project State .............................................................................................
Project Zip Code .......................................................................................
Project Congressional District ...................................................................
Project Name ............................................................................................
Project Type ..............................................................................................
Property Description and Proposed Development Schedule ...................
Total Project Development Cost ...............................................................
# of Units ...................................................................................................
Ratio of 3–5 bedroom units to total units .................................................
Cost Per Unit ............................................................................................
Rent ...........................................................................................................
Median Income for Community .................................................................
Evidence of Site Control ...........................................................................
Description of Any Environmental Issues .................................................
Loan Amount .............................................................................................
Borrower’s Proposed Equity .....................................................................
Tax Credits ................................................................................................
Town or city in which the project is located.
County in which the project is located.
State in which the project is located.
Insert zip code.
Congressional District for project location.
Insert project name.
Family, senior (all residents 55 years or older), or mixed.
Provide as an attachment.
Enter amount for total project.
Insert the # of units in the project.
Insert percentage of 3–5 bedroom units to total units.
Total development cost divided by # of units.
Proposed rent structure.
Provide median income for the community.
Attach relevant information.
Attach relevant information.
Insert the loan amount.
Insert amount and source.
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.
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? ................................
sroberts on DSKD5P82C1PROD with NOTICES
Loan Term .................................................................................................
Scoring of Priority Criteria for
Selection of Projects: All 2010 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, or having the
highest ratio of 3–5 bedroom units to
total units.
On or prior to April 1, 2010, 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, to the
extent 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
VerDate Nov<24>2008
16:39 Feb 25, 2010
Jkt 220001
not be obligated until after April 1,
2010. After April 1, 2010, the Agency
will select the highest scoring proposals
using the procedure outlined in the
DATES section of this NOFA.
The seven priority criteria for projects
are listed below.
Priority 1—Projects located in eligible
rural communities with the lowest
populations will receive the highest
points.
Population size
Points
0–5,000 people .................................
5,001–10,000 people ........................
10,001–15,000 people ......................
15,001–20,000 people ......................
20
15
10
5
Priority 2—The neediest 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
PO 00000
Frm 00006
Fmt 4703
Sfmt 4703
income. Points for median income will
be awarded as follows:
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
develop the maximum number of units
and promote partnerships with state and
local communities will also receive
points. Points will be awarded as
follows:
Loan to total development cost ratio
(percentage %)
Points
90–100 ..............................................
Less than 90–70 ...............................
Less than 70–50 ...............................
0
10
20
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USDA Rural Development State Office
staff will work with lenders in the
development of an application package.
Less than 50 .....................................
30 In response to the NOFA, lenders must
submit a response to the office address
Priority 4—The USDA Rural
identified in the NOFA for the scoring
Development will award points to
and ranking of a proposed GRRHP
projects with the highest ratio of 3–5
project. The lender must provide the
bedroom units to total units as follows:
requested information concerning the
project, to establish the purpose of the
Ratio of 3–5 bedroom units to total
Points proposed project, its location, and how
units
it meets the established priorities for
More than 50% .................................
10 funding. The Agency will determine the
21%–50% .........................................
5 highest ranked responses based on
Less than 21%–more than 0% .........
1 priority criteria and a threshold score.
NOFA responses will at least include
Priority 5—NOFA responses for the
the following [but the Agency, at its sole
revitalization, repair, and transfer (as
discretion, may request additional
stipulated in 7 CFR 3560.406) of
information]:
existing direct section 515 housing and
(1) The Project
properties involved in the Agency’s
MPR program (transfer costs, including
(a) A brief description of the proposed
equity payments, are subject to Agency
location of the project, including town,
approval and must be an eligible use of
county, state, and congressional district.
loan proceeds listed in 7 CFR 3565.205)
(b) A description of the property and
will receive an additional 10 points.
improvements, including lot size,
Priority 6—Projects that are energynumber of units, building type, type of
efficient and are certified by the
construction, etc., including preliminary
following programs will receive twenty
drawings, if available.
(20) points:
(c) The proposed development
(1) Green Communities sponsored by
schedule.
The Enterprise Foundation (https://
(d) Total project development cost.
www.enterprisefoundation.org) or
(e) The proposed rent structure and
(2) LEED for Homes Program by the
area median income (HUD published
U.S. Green Builders (USGBC) (https://
area median incomes can be found
www.usgbc.org) or
online at https://www.huduser.org).
(3) National Association of Home
(f) Evidence of site control by the
Builders (NAHB) ICC 700–2008
proposed borrower or a purchase
National Green Building StandardTM
option.
(https://www.nahb.org) or
(g) Description of any environmental
(4) Any other program, specific to a
issues that may affect the project.
state or region that is similar to the
(h) Amount of loan to be guaranteed.
above three that is approved by the
(i) Type of project (e.g., elderly or
Agency.
family).
Notifications: Responses will be
(2) The Proposed Financing
reviewed for completeness and
eligibility. The USDA Rural
(a) Proposed loan amount and the
Development will notify those lenders
proposed borrower’s equity.
whose responses are selected via letter.
(b) Estimated development budget
The USDA Rural Development will
(total and cost/unit) and the proposed
request lenders without GRRHP lender
sources and uses of funds. This
approval to apply for GRRHP lender
information should include all proposed
approval within 30 days upon receipt of financing sources—the amount, type,
notification of selection. For
rates and terms of loans, tax credits, or
information regarding GRRHP lender
grant funds. Letters of application and
approval, please refer to the section
commitment letters should be included,
entitled ‘‘Submission of Documentation
if available.
for GRRHP Lender Approval’’ in this
(c) Estimated loan-to-development
NOFA.
cost ratio for the guaranteed loan.
Lenders will also be invited to submit
(d) Proposed Agency guarantee
a complete application to the USDA
percentage for guaranteed loan.
Rural Development State Office where
(e) Collateral—all security, in addition
the project is located.
to the real property, proposed to secure
Submission of GRRHP Applications:
the loan.
Notification letters will instruct lenders
to contact the USDA Rural Development (3) The Proposed Borrower
State Office immediately following
(a) The name of the borrower and the
notification of selection to schedule
type of ownership entity. List the
required agency reviews.
general partners if a limited partnership,
sroberts on DSKD5P82C1PROD with NOTICES
Loan to total development cost ratio
(percentage %)
VerDate Nov<24>2008
16:39 Feb 25, 2010
Points
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8901
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 ‘‘Notice to
Proceed with Application Processing’’
letter.
(5) Competitive Criteria
Information that shows how the
proposal is responsive to the selection
criteria specified in the 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 Agency
has the ability to extend this 90-day
deadline for receipt of an application at
its own discretion.
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
Development State Office will issue a
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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: February 4, 2010.
˜
Tammye H. Trevino,
Administrator, Rural Housing Service.
[FR Doc. 2010–3959 Filed 2–25–10; 8:45 am]
BILLING CODE 3410–XV–P
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
sroberts on DSKD5P82C1PROD with NOTICES
Funding Opportunity Title: Crop
Insurance Education in Targeted
States (Targeted States Program)
Announcement Type: Announcement
of Availability of Funds and Request for
Application for Competitive
Cooperative Agreements.
Catalog of Federal Domestic Assistance
Number (CFDA): 10.458
Dates: Electronic applications
submitted through Grants.gov must be
received by close of business (COB) on
VerDate Nov<24>2008
18:47 Feb 25, 2010
Jkt 220001
April 27, 2010. Hard copy applications
will not be accepted.
Summary: The Federal Crop
Insurance Corporation (FCIC), operating
through the Risk Management Agency
(RMA), announces the availability of
approximately $5,000,000 (subject to
availability of funds) to fund
cooperative agreements under the Crop
Insurance Education in Targeted States
program (the Targeted States Program).
The purpose of this cooperative
agreement program is to deliver crop
insurance education and information to
U.S. agricultural producers in certain
States that have been designated as
historically underserved with respect to
crop insurance. The states, collectively
referred to as Targeted States, are
Connecticut, Delaware, Hawaii, Maine,
Maryland, Massachusetts, Nevada, New
Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, Utah,
Vermont, West Virginia, and Wyoming.
Multiple cooperative agreements will be
funded not to exceed the maximum
funding amount established for each of
the 16 Targeted States. Awardees must
agree to the substantial involvement of
RMA in the project. Funding availability
for this program may be announced at
approximately the same time as funding
availability for similar but separate
programs—CFDA No. 10.455
(Community Outreach and Assistance
Partnerships), and CFDA No. 10.459
(Commodity Partnerships for Small
Agricultural Risk Management
Education Sessions). Prospective
applicants should carefully examine
and compare the notices for each
program.
The collections of information in this
announcement have been approved by
OMB under control number 0563–0067.
This Announcement Consists of Eight
Sections:
Section I—Funding Opportunity Description
A. Legislative Authority
B. Background
C. Project Goal
D. Purpose
Section II—Award Information
A. Type of Application
B. Funding Availability
C. Location and Target Audience
D. Maximum Award
E. Project Period
F. Description of Agreement Award—
Awardee Tasks
G. RMA Activities
H. Other Tasks
Section III—Eligibility Information
A. Eligible Applicants
B. Cost Sharing or Matching
Section IV—Application and Submission
Information
A. Electronic Application Package
B. Content and Form of Application
Submission
C. Funding Restrictions
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Frm 00008
Fmt 4703
Sfmt 4703
D. Limitation on Use of Project Funds for
Salaries and Benefits
E. Indirect Cost Rates
F. Other Submission Requirements
G. Acknowledgement of Applications
Section V—Application Review Process
A. Criteria
B. Selection and Review Process
Section VI—Award Administration
Information
A. Award Notices
B. Administrative and National Policy
Requirements
1. Requirement To Use Program Logo
2. Requirement To Provide Project
Information to an RMA-selected
Representative
3. Private Crop Insurance Organizations
and Potential Conflict of Interest
4. Access to Panel Review Information
5. Confidential Aspects of Applications
and Awards
6. Audit Requirements
7. Prohibitions and Requirements
Regarding Lobbying
8. Applicable OMB Circulars
9. Requirement To Assure Compliance
With Federal Civil Rights Laws
10. Requirement To Participate in a Post
Award Conference
11. Requirement To Submit Educational
Materials to the National AgRisk
Education Library
12. Requirement To Submit Proposed
Results to the National AgRisk Education
Library
13. Requirement To Submit a Project Plan
of Operation in the Event of a Human
Pandemic Outbreak
C. Reporting Requirements
Section VII—Agency Contact
Section VIII—Additional Information
A. Dun and Bradstreet Data Universal
Numbering System (DUNS)
B. Required Registration With the Central
Contract Registry (CCR) for Submission
of Proposals
C. Related Programs
Full Text of Announcement
I. Funding Opportunity Description
A. Legislative Authority
The Targeted States Program is
authorized under section 524(a)(2) of
the Federal Crop Insurance Act (Act).
B. Background
RMA promotes and regulates sound
risk management solutions to improve
the economic stability of American
agriculture. On behalf of FCIC, RMA
does this by offering Federal crop
insurance products through a network
of private-sector partners, overseeing the
creation of new risk management
products, seeking enhancements in
existing products, ensuring the integrity
of crop insurance programs, offering
outreach programs aimed at equal
access and participation of underserved
communities, and providing risk
management education and information.
One of RMA’s strategic goals is to
E:\FR\FM\26FEN1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 38 (Friday, February 26, 2010)]
[Notices]
[Pages 8896-8902]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-3959]
-----------------------------------------------------------------------
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 2010
AGENCY: Rural Housing Service, USDA.
ACTION: NOFA.
-----------------------------------------------------------------------
SUMMARY: This is a request for proposals for loan guarantees under the
section 538 Guaranteed Rural Rental Housing Program (GRRHP) pursuant to
7 CFR 3565.4 for Fiscal Year (FY) 2010. FY 2010 funding for the section
538 program is $129,130,434.78. Applicants will submit proposals in the
form of ``responses.'' Responses to this NOFA will be accepted until
December 31, 2010, 12 p.m. Eastern Time. 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: 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 for guarantees 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 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 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, 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, 2010, 12 p.m. Eastern Time.
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 2010 funds are committed prior to September 30, 2010.
Responses to this NOFA that are received after September 30, 2010, and
deemed eligible for further processing will be funded to the extent an
appropriation act provides funding for GRRHP for FY 2011.
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 April 1, 2010, 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 April 1, 2010,
with the highest scoring responses receiving priority subject to
availability of funds. After April 1, 2010, 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 April 1, 2010, using the highest score and the
procedures outlined as follows. Once a complete application is received
and approved, the Agency will obligate funds. Obligation requests
submitted will be accumulated, but not obligated throughout the week
until midnight Eastern Time every Thursday. To the extent that funds
remain available, the Agency will obligate the requests accumulated
through the weekly request deadline of the previous week by the
following Tuesday (i.e., requests received from Friday, May 14, 2010,
to Thursday, May 20, 2010, will be obligated by Tuesday, May 25, 2010).
However, requests received prior to April 1, 2010, that are not
eligible for obligation until after April 1, 2010, will be obligated no
earlier than Tuesday, April 6, 2010. Funds will be obligated 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) and in the event there is still a
tie;--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.
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, 4121 Carmichael Road, Suite 601, Sterling
Centre, Montgomery, AL 36106-3683, (334) 279-3440, TDD (334) 279-
3495, Anne Chavers.
Alaska State Office, 800 West Evergreen, Suite 201, Palmer, AK
99645, (907) 761-7740, TDD (907) 761-8905, Deborah Davis.
Arizona State Office, 230 North First Ave., Suite 206, Phoenix, AZ
85003-1706, (602) 280-8768, TDD (602) 280-8706, Carol O. 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) 792-5813, TDD (530) 792-5848, Edgar Morales.
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.
[[Page 8897]]
Delaware and Maryland State Office, 1221 College Park Drive, Suite
200, Dover, DE 19904, (302) 857-3615, TDD (302) 857-3585, Debra
Eason.
Florida & Virgin Islands State Office, 4440 N.W. 25th Terrace, P.O.
Box 147010, Gainesville, FL 32614-7010, (352) 338-3400, TDD (352)
338-3499, Tresca Clemmons.
Georgia State Office, Stephens Federal Building, 355 E. Hancock
Avenue--Stop 307, 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) 933-8300, TDD (808) 933-8321, Nate Riedel.
Idaho State Office, 9173 West Barnes Dr., Suite A1, 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
46278-1966, (317) 290-3100 (ext. 413), Carla Orr Haskins.
Iowa State Office, 210 Walnut Street Room 873, Des Moines, IA 50273,
(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) 224-7300, TDD (859) 224-7422, Paul Higgins.
Louisiana State Office, 3727 Government Street, Alexandria, LA
71302, (318) 473-7962, TDD (318) 473-7655, Yvonne R. Emerson.
Maine State Office, 967 Illinois Ave., Suite 4, P.O. Box 405,
Bangor, ME 04402-0405, (207) 990-9110, TDD (207) 942-7331, Robert
Nadeau.
Maryland, Served by Delaware State Office.
Massachusetts, Connecticut, & Rhode Island State Office, 451 West
Street--Suite 2, Amherst, MA 01002, (413) 253-4315, TDD (413) 253-
4590, Paul D. Geoffroy.
Michigan State Office, 3001 Coolidge Road, Suite 200, East Lansing,
MI 48823, (517) 324-5199, TDD (517) 324-5169, Julie Putnam.
Minnesota State Office, 375 Jackson Street, 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-
5717, Darnella Smith-Murray.
Missouri State Office, 601 Business Loop 70 West, Parkade Center,
Suite 235, Columbia, MO 65203, (573) 876-0987, TDD (573) 876-9480,
Rachelle Long.
Montana State Office, 900 Technology Blvd. Suite B, Bozeman, MT
59718, (406) 585-2530, TDD (406) 585-2562, Deborah Chorlton.
Nebraska State Office, Federal Building, Room 152, 100 Centennial
Mall N, Lincoln, NE 68508, (402) 437-5734, TDD (402) 437-5093, Linda
Anders.
Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-
9910, (775) 887-1222 (ext. 13), TDD (775) 885-0633, William Brewer.
New Hampshire State Office, 10 Ferry Street, Concord, NH 03301-5004,
Suite 218, Box 317, (603) 223-6050, TDD (802) 828-6365, Robert
McCarthy.
New Jersey State Office, 8000 Midlantic Dr., 5th Floor North Suite
500, 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) 761-4950, TDD (505) 761-4938, Art
Garcia.
New York State Office, The Galleries of Syracuse, 441 S. Salina
Street, Suite 357, Syracuse, NY 13202-2425, (585) 394-0525 ext. 109,
TDD (315) 477-6447, Celeste Frohm.
North Carolina State Office, 4405 Bland Road, Suite 260, Raleigh, NC
27609, (919) 873-2063, TDD 711 (state relay system), William Hobbs.
North Dakota State Office, Federal Building, Room 208, 220 East
Rosser, P.O. Box 1737, Bismarck, ND 58502, (701) 530-2050, TDD (701)
530-2090, Mark J. Wax.
Ohio State Office, Federal Building, Room 507, 200 North High
Street, Columbus, OH 43215-2477, (614) 255-2418, TDD (800) 877-8339,
Melodie Taylor-Ward.
Oklahoma State Office, 100 USDA, Suite 108, Stillwater, OK 74074-
2654, (405) 742-1070, TDD (405) 742-1007, Ivan S. Graves.
Oregon State Office, 1201 NE. Lloyd Blvd., Suite 801, Portland, OR
97232-1274, (503) 414-3353, TDD (503) 414-3387, Rod Hansen.
Pennsylvania State Office, One Credit Union Place, Suite 330,
Harrisburg, PA 17110-2996, (717) 237-2279, TDD 711 (state relay
system), Frank Wetherhold.
Puerto Rico State Office, 654 Munoz Rivera Avenue, Suite 601, Hato
Rey, PR 00918, (787) 766-5095, TDD (787) 766-5332, Noemi Morant.
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, 3322 West End Avenue, Suite 300, Nashville,
TN 37203, (615) 783-1300, TDD (615) 783-1397, Kathy G. Connelly.
Texas State Office, Federal Building, Suite 102, 101 South Main,
Temple, TX 76501, (254) 742-9770, TDD (254) 742-9712, Joyce
McGlothlin.
Utah State Office, Wallace F. Bennett Federal Building, 125 S. State
Street, Room 4311, Salt Lake City, UT 84138, (801) 524-4302, TDD
(801) 524-3309, Shelly Prothero.
Vermont State Office, City Center, 3rd Floor, 89 Main Street,
Montpelier, VT 05602, (802) 828-6067, TDD (802) 223-6365, Kenneth
Yearman.
Virgin Islands, Served by Florida State Office.
Virginia State Office, 1606 Santa Rosa Road, Suite 238, Richmond, VA
23229, (804) 287-1596, TDD (804) 287-1753, C.J. Michels.
Washington State Office, 1835 Black Lake Blvd. SW., Suite B,
Olympia, WA 98512, (360) 704-7740, TDD (360) 704-7772, Tammy Repine.
Western Pacific Territories, Served by Hawaii State Office.
West Virginia State Office, Federal Building, 1550 Earl Core Road,
Suite 101, Morgantown, WV 26505, (304) 284-4872, TDD (304) 284-4836,
David L. Cain.
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) 856-
7524 ext. 124, TDD (307) 233-6733, Yvette Wilson.
FOR FURTHER INFORMATION CONTACT: Monica Cole, 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:
monica.cole@wdc.usda.gov. Telephone: (202) 720-1251. 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 2009 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 2009 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'') submitted by the lender within 90 days from
the date of notification of response selection (unless an extension was
granted by the Agency), will be eligible for FY 2010 program dollars
and will compete for available FY 2010 funds without having to complete
a FY 2010 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
[[Page 8898]]
Agency, private lenders, and public agencies.
Responses Must Be Submitted By: The Agency will only accept
responses from GRRHP eligible or approved lenders as described in 7 CFR
3565.102 and 3565.103 respectively.
Qualifying Properties: Qualifying properties include new
construction for multi-family housing units and the acquisition of
existing structures with a minimum per unit rehabilitation expenditure
requirement in accordance with 7 CFR 3565.252.
Also eligible is the revitalization, repair and transfer (as
stipulated in 7 CFR 3560.406) of existing direct section 515 housing
(transfer costs are subject to Agency approval and must be an eligible
use of loan proceeds as listed in 7 CFR 3565.205) and properties
involved in the Agency's MPR program. Equity payment, as stipulated 7
CFR 3560.406, in the transfer of existing direct section 515 housing,
is an eligible use of guaranteed loan proceeds. In order to be
considered, the transfer of direct section 515 housing and MPR projects
must need repairs and undergo revitalization of a minimum of $6,500 per
unit.
Eligible Financing Sources: Any form of Federal, State, and
conventional sources of financing can be used in conjunction with the
loan guarantee, including Home Investment Partnership Program (HOME)
grant funds, tax exempt bonds, and low income housing tax credits.
Maximum Guarantee: The Agency can guarantee the ``permanent'' loan.
The Agency can only guarantee construction advances for the
construction of the property if a guarantee for the permanent loan is
requested for the same property. The Agency cannot, however, guarantee
only 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.
Energy Conservation: USDA Rural Development has adopted a policy
that all new multi-family housing projects financed in whole or in part
by the USDA, will be encouraged to engage in sustainable building
development that emphasizes energy-efficiency and conservation. In
order to assist in the achievement of this goal, any GRRHP project that
participates in one or all of the following programs may receive a
maximum of twenty (20) additional points added to their project score.
Participation in these nationwide initiatives is voluntary, but
strongly encouraged.
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 2010 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 2010.
Program Fees for FY 2010: As a condition of receiving a loan
guarantee, the Agency will charge the following fees to the lender.
(1) There is no application fee for lenders submitting an
application in FY 2010.
(2) There is a flat fee of $500 when a lender requests USDA Rural
Development to extend the term of a guarantee commitment.
(3) There is a flat fee of $500 when a lender requests USDA Rural
Development to reopen an application when a commitment has expired.
(4) 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.
(5) There is no lender application fee for lender approval in FY
2010.
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
[[Page 8899]]
meet the standards in the 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 ``Lender Application--Section
538 Guaranteed Rural Rental Housing Program'' on the envelope.
As the Section 538 program does not have a formal application form,
a complete application consists of a cover letter requesting GRRHP
lender approval and the following documentation:
(1) Request for GRRHP lender approval on the lender's letterhead;
(2) Lenders who are HUD, Ginnie Mae, Freddie Mac or Fannie Mae
multi-family approved lenders are required to show evidence of this
status, such as a copy of a letter designating the distinction;
(3) The lender's Loan Origination, Loan Servicing, and Portfolio
Management Handbooks. These handbooks should detail the lender's
policies and procedures on loan origination through termination for
multi-family loans;
(4) Portfolio performance data;
(5) Copies of standard documents that will be used in processing
GRRHP loans;
(6) Resumes and qualifications of key personnel that will be
involved in the GRRHP;
(7) Identification of standards and processes that deviate from
those outlined in the GRRHP Origination and Servicing Handbook (HB-1-
3565) found at https://www.rurdev.usda.gov/regs/hblist.html#hbw6;
(8) A copy of the most recent audited financial statements;
(9) Lender specific information including: (a) Legal name and
address, (b) list of principal officers and their responsibilities, (c)
certification that the officers and principals of the lender have not
been debarred or suspended from Federal programs, (d) Form AD 1047,
``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. 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.
------------------------------------------------------------------------
Data element Information that must be 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 Attach relevant information.
of Housing Development Experience.
New Construction, Acquisition With State whether the project is new
Rehabilitation, or the construction or acquisition with
Revitalization, Repair, and rehabilitation. Transfer costs,
Transfer (as stipulated in 7 CFR including equity payments, are
3560.406) of Existing Direct subject to Agency approval and
Section 515 Housing or MPR. must be an eligible use of loan
proceeds in 7 CFR 3565.205.
[[Page 8900]]
Project Location Town or City...... Town or city in which the project
is located.
Project County..................... County in which the project is
located.
Project State...................... State in which the project is
located.
Project Zip Code................... Insert zip code.
Project Congressional District..... Congressional District for project
location.
Project Name....................... Insert project name.
Project Type....................... Family, senior (all residents 55
years or older), or mixed.
Property Description and Proposed Provide as an attachment.
Development Schedule.
Total Project Development Cost..... Enter amount for total project.
of Units................. Insert the of units in
the project.
Ratio of 3-5 bedroom units to total Insert percentage of 3-5 bedroom
units. 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 Attach relevant information.
Issues.
Loan Amount........................ Insert the loan amount.
Borrower's Proposed Equity......... Insert amount and source.
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 recognized EZ or EC, Colonia, on
Lands, or State's Consolidated an Indian Reservation, or in a
Plan or State Needs Assessment. 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 If yes, please provide
Federally 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 State yes or no. The Agency can
Being 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 2010
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, or having the highest ratio of 3-5
bedroom units to total units.
On or prior to April 1, 2010, 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, to the extent 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 April 1, 2010. After April 1, 2010, the Agency
will select the highest scoring proposals using the procedure outlined
in the DATES section of this NOFA.
The seven priority criteria for projects are listed below.
Priority 1--Projects located in eligible rural communities with the
lowest populations will receive the highest points.
------------------------------------------------------------------------
Population size Points
------------------------------------------------------------------------
0-5,000 people................................................. 20
5,001-10,000 people............................................ 15
10,001-15,000 people........................................... 10
15,001-20,000 people........................................... 5
------------------------------------------------------------------------
Priority 2--The neediest communities as determined by the median
income from the most recent census data will receive points. The Agency
will allocate points to projects located in communities having the
lowest median income. Points for median income will be awarded as
follows:
------------------------------------------------------------------------
Median income (dollars) Points
------------------------------------------------------------------------
Less than $45,000.............................................. 20
$45,000-less than $55,000...................................... 15
$55,000-less than $65,000...................................... 10
$65,000-less than $75,000...................................... 5
$75,000 or more................................................ 0
------------------------------------------------------------------------
Priority 3--Projects that demonstrate partnering and leveraging in
order to develop the maximum number of units and promote partnerships
with state and local communities will also receive points. Points will
be awarded as follows:
------------------------------------------------------------------------
Loan to total development cost ratio (percentage %) Points
------------------------------------------------------------------------
90-100......................................................... 0
Less than 90-70................................................ 10
Less than 70-50................................................ 20
[[Page 8901]]
Less than 50................................................... 30
------------------------------------------------------------------------
Priority 4--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 5--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 10 points.
Priority 6--Projects that are energy-efficient and are certified by
the following programs will receive twenty (20) points:
(1) Green Communities sponsored by The Enterprise Foundation
(https://www.enterprisefoundation.org) or
(2) LEED for Homes Program by the U.S. Green Builders (USGBC)
(https://www.usgbc.org) or
(3) National Association of Home Builders (NAHB) ICC 700-2008
National Green Building StandardTM (https://www.nahb.org) or
(4) Any other program, specific to a state or region that is
similar to the above three that is approved by the Agency.
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.
(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
``Notice to Proceed with Application Processing'' letter.
(5) Competitive Criteria
Information that shows how the proposal is responsive to the
selection criteria specified in the 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 Agency has the ability to extend this 90-day deadline
for receipt of an application at its own discretion.
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
Development State Office will issue a
[[Page 8902]]
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: February 4, 2010.
Tammye H. Trevi[ntilde]o,
Administrator, Rural Housing Service.
[FR Doc. 2010-3959 Filed 2-25-10; 8:45 am]
BILLING CODE 3410-XV-P
