Notice of Funding Availability: Multi-Family Housing Preservation and Revitalization Demonstration Program-Section 514, 515, and 516 for Fiscal Year 2013, 75121-75143 [2012-30190]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Housing Service

[Federal Register Volume 77, Number 244 (Wednesday, December 19, 2012)]
[Notices]
[Pages 75121-75143]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30190]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Funding Availability: Multi-Family Housing Preservation 
and Revitalization Demonstration Program--Section 514, 515, and 516 for 
Fiscal Year 2013

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: USDA Rural Development, which administers the programs of the 
Rural Housing Service (RHS or Agency), announces the availability of up 
to $19.9 million in program dollars, and the timeframe to submit 
applications to participate in a demonstration program to preserve and 
revitalize existing rural rental housing projects under Section 515, 
Section 514, and Section 516 of the Housing Act of 1949, as amended. 
Under the demonstration program existing Section 515 Multi-Family 
Housing (MFH) loans and Section 514/516 Off-Farm Labor Housing loans 
will be restructured to ensure that sufficient resources are available 
to preserve the ability of rental projects to provide safe and 
affordable housing for very low-, low- or moderate-income residents. 
Projects participating in this program will be expected to be 
revitalized to extend their affordable use without displacing tenants 
because of increased rents. No additional Agency Rental Assistance (RA) 
units will be made available under this program.

DATES: Pre-applications in response to this Notice will be accepted 
until February 28, 2013, 5:00 p.m., Eastern Time. The pre-application 
closing deadline is firm as to date and hour. The Agency will not 
consider any pre-application that is received after the closing 
deadline. Applicants intending to mail pre-applications must allow 
sufficient time to permit delivery on or before the closing deadline. 
Acceptance by a post office or private mailer does not constitute 
delivery. Facsimile (FAX) and postage-due pre-applications will not be 
accepted.

FOR FURTHER INFORMATION CONTACT: Sherry Engel or Tiffany Tietz, at 
sherry.engel@wdc.usda.gov or tiffany.tietz@wdc.uda.gov, at (715) 345-
7677 or (616) 942-4111, extension 126, Finance and Loan Analyst, Multi-
Family Housing Preservation and Direct Loan Division, STOP 0782, (Room 
1263-S), U.S. Department of Agriculture, Rural Housing Service, 1400 
Independence Avenue SW., Washington, DC 20250-0782. All hard copy pre-
applications and required documents (attachments) must be submitted to 
this address. (Please note this telephone number is not a toll-free 
number.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The information collection requirements contained in this Notice 
have received approval from the Office of Management and Budget (OMB) 
under Control Number 0570-0190.

Overview Information

    Federal Agency Name: RHS, USDA.

[[Page 75122]]

    Funding Opportunity Title: Multi-Family Housing Preservation and 
Revitalization Demonstration Program--Section 514, 515, and 516 for 
Fiscal Year 2013.
    Announcement Type: Inviting applications from eligible applicants 
for Fiscal Year 2013, Funding.

Catalog of Federal Domestic Assistance Number (CFDA): 10.447

    DATES: Pre-applications in response to this Notice will be accepted 
until February 28, 2013, 5:00 p.m., Eastern Time. The pre-application 
closing deadline is firm as to date and hour. The Agency will not 
consider any pre-application that is received after the closing 
deadline. Applicants intending to mail pre-applications must allow 
sufficient time to permit delivery on or before the closing deadline. 
Acceptance by a post office or private mailer does not constitute 
delivery. Facsimile (FAX) and postage-due pre-applications will not be 
accepted.

I. Funding Opportunities Description

    The Consolidated and Further Continuing Appropriations Act, 2012 
(Pub. L. 112-55) (November 18, 2011) authorized the Agency to conduct a 
demonstration program for the preservation and revitalization of the 
Section 515 MFH portfolio and Section 514/516 Off-Farm Labor Housing 
(FLH) portfolio. Sections 514, 515 and 516 MFH programs are authorized 
by the Housing Act of 1949, as amended (42 U.S.C. 1484, 1485, 1486) and 
provide Rural Development with the authority to provide financial 
assistance for low-income MFH and FLH and related facilities as defined 
in 7 CFR Part 3560.
    This Notice solicits pre-applications from eligible borrowers/
applicants to restructure existing MFH projects already participating 
in the Agency's Section 515 MFH portfolio and Section 514/516 FLH 
portfolio for the purpose of revitalization and preservation. Eligible 
borrowers are sometimes referred to in this Notice as ``applicants,'' 
``borrowers,'' ``applicant/borrowers,'' or ``owners'' as seems most 
appropriate for the context of the relevant Notice provision. The 
demonstration program shall be referred to in this Notice as the Multi-
Family Housing Preservation and Revitalization Demonstration program 
(MPR). Agency regulations for the Section 515 MFH program and the 
Section 514/516 FLH program are published at 7 CFR part 3560.
    The intent of the MPR is to ensure that existing rental projects 
will continue to deliver decent, safe and sanitary affordable rental 
housing for 20 years or the remaining term of any Agency loan, 
whichever ends later. Applications will be selected by the Agency in 
the process described in this Notice and the selected applicants will 
be invited to participate in the MPR demonstration program. Upon 
written notification to the Agency from the selected applicant of 
acceptance to participate, an independent third-party capital needs 
assessment (CNA) will be conducted to provide a fair and objective 
review of projected capital needs. The Agency shall implement the 
restructuring proposal that may be offered under this Notice through an 
MPR Conditional Commitment (MPRCC) with the eligible borrower/applicant 
which will include all the terms and conditions offered by the Agency.
    One of the restructuring tools to be used in this program is debt 
deferral for up to 20 years of the existing Section 514 or 515 loans 
obligated prior to October 1, 1991. The cash flow from the deferred 
payment will be deposited, as directed by the Agency, to the reserve 
account to help meet the future physical needs of the project or to 
reduce rents. Debt deferral is described as follows:
    MPR Debt Deferral: A deferral of the existing Section 514 or 515 
Agency loan(s), obligated on or before 9/30/1991, for the lesser of the 
remaining term of the existing 514 or 515 loan or 20 years. All terms 
and conditions of the deferral will be described in the MPR Debt 
Deferral Agreement. A balloon payment of principal and accrued interest 
will be due at the end of the deferral period. Interest will accrue at 
the promissory note rate and subsidy will be applied as set out in the 
Agency's Interest Credit and Rental Assistance Agreement, if 
applicable.
    Other Agency MPR tools are as follows:
    1. MPR Grant: A grant limited to non-profit applicants/borrowers 
only. The grant will be limited to the cost of correcting health and 
safety violations or other physical needs of the project identified by 
the CNA and accepted by the Agency. The grant administration will be in 
accordance with applicable provisions of 7 CFR parts 3015 and 3019.
    2. MPR Zero Percent Loan: A loan with zero percent interest.
    (a) For Section 515 Rural Rental Housing projects, the maximum term 
will be 30 years and be amortized over 50 years.
    (b) For Section 514/516 projects, the loan will be amortized over a 
maximum term of 33 years.
    3. MPR Soft-Second Loan: A loan with a one percent interest rate 
that will have its accrued interest and principal deferred, to a 
balloon payment. The balloon payment will be due at the same time the 
latest maturing Section 514 or Section 515 loan already in place at the 
time of closing or the maturity date of any current loan being re-
amortized as part of the restructuring is due. The term of the soft 
second loan will not be timed to match the term of any new Section 514 
or 515 loan added during the transaction.
    4. Increased Return to Owner (RTO) for Stay-in-Owners: Section 515 
stay-in-owners, who will retain their project and contribute cash, 
other than proceeds from the sale of Low Income Housing Tax Credits, to 
fund any hard costs of construction to meet immediate needs identified 
by the CNA, may receive a Return on Investment (ROI) on those funds 
provided the Agency determines an increased ROI is financially 
feasible, and the Agency approves such a return in the revitalization 
plan. The Agency may also offer that the RTO be included in a ``cash 
flow split'' agreement as outlined in a MPRCC. The cash flow split, if 
approved, will allow up to 50 percent of excess cash, generated at the 
end of the owner's fiscal year end, to be split equally between paying 
down any outstanding deferred Agency loan balances and 50 percent to be 
returned to the borrower as an increased RTO, subject to the provisions 
of 7 CFR 3560.68.
    MPR funds cannot be used to build community rooms, playgrounds, 
laundry rooms or additional new units, unless the additional unit(s) 
are needed for the project to meet the 5 percent fully accessible 
requirement as defined by Uniform Federal Accessibility Standards 
(UFAS) and the Agency concurs. However, other funding sources as 
outlined below in (i) through (vi) can be used either for 
revitalization or for the improvements listed above.
    i. Rural Development Section 515 Rehabilitation loan funds;
    ii. Rural Development Section 514/516 Off-Farm rehabilitation loan/
grant funds;
    iii. Rural Development Section 538 Guaranteed Rural Rental Housing 
Program financing;
    iv. Rural Development Multi-Family Housing Re-Lending Demonstration 
Program Funds;
    v. Third-party loans with below market rates (below the Applicable 
Federal Rate (AFR)), grants, tax credits and tax-exempt financing; and
    vi. Owner-provided capital contributions in the form of a cash 
infusion. A cash infusion cannot be a loan.

[[Page 75123]]

    Transfers, subordinations, and consolidations may be approved as 
part of a MPR transaction in accordance with 7 CFR Part 3560. If a 
transfer is part of the MPR transaction, the transfer must first meet 
the requirements of 7 CFR 3560.406 before the MPR transaction is 
processed.
    For the purposes of the MPR, the restructuring transactions will be 
identified in three categories:
    1. ``Simple transactions'' involve no change in ownership.
    2. ``Complex transactions'' may consist of a project transfer to a 
new ownership, processed in accordance with 7 CFR 3560.406, with or 
without a consolidation, or transactions requiring a subordination 
agreement as a result of third-party funds. The applicant will submit 
one pre-application form. If a consolidation is proposed, all projects 
to be consolidated will be listed on one pre-application form. To be a 
complex transaction, at the MPR closing, the Agency assumes only one 
project remains upon completion.
    3. A ``Portfolio transaction'' includes two or more projects with 
one stay-in owner, or two or more projects with multiple project sale 
transactions to a common purchaser all located in one State. Each 
project included in the transaction will be submitted on a separate 
pre-application form unless some projects are being consolidated in 
which case those projects being consolidated will be listed on the same 
pre-application form. Each pre-application must have the same Portfolio 
name. If the owner chooses to remove one or more projects from the 
proposal, at least two projects must remain in order to be classified 
as a portfolio transaction. At the end of the transaction, it is 
assumed there will be two or more projects remaining. The stay-in owner 
or common purchaser must have at least one general partner in common.
    A transaction within each category may utilize any or all 
restructuring tools. Restructuring tools that may be available to 
address the capital needs of a project must be used to address 
preservation and rehabilitation items identified in the CNA.
    The liens against the project, with the exception of Agency 
deferred debt, cannot exceed Agency approved value of the project. All 
Agency debt, either in first lien position or a subordinated lien 
position, must be secured by the project, except deferred debt which is 
not included in the Agency's total lien position for computation of 
adequate security. Payment of such deferred debt will not be required 
from normal project operations income, but from excess cash from 
project operations after all other secured debts are satisfied or as 
directed by the Agency.
    The general steps of the MPR application process are as follows:
    1. Pre-application: Applicants must submit a pre-application 
described in Section VI. This pre-application process is designed to 
lessen the cost burden on all applicants including those who may not be 
eligible or whose proposals may not be feasible.

    Note: If you receive a loan or grant award under this Notice, 
USDA reserves the right to post all information submitted as part of 
the pre-application/application package which is not protected under 
the Privacy Act on a public Web site with free and open access to 
any member of the public.

    2. Eligible Projects: Using criteria described below in Section 
III, the Agency will conduct an initial screening for eligibility. As 
described in Section VIII, the Agency will conduct an additional 
eligibility screening later in the selection process.
    3. Scoring and Ranking: All complete, eligible and timely-filed 
pre-applications will be scored, ranked and put in potential funding 
categories as discussed in Sections VI and VII.
    4. Formal Applications: Top ranked pre-applicants will receive a 
letter from the Agency inviting them to submit a formal application. As 
discussed in Section VIII paragraph (2) of this Notice, the Agency will 
require the owner to provide a CNA completed in accordance with the 
Agency's published guidance, (available at https://www.rurdev.usda.gov/HMF_MPR.html) in order to underwrite the proposal to determine 
financial feasibility and to determine the proper combination of tools 
to be offered to the applicant. When proposals are found to be 
ineligible or financially infeasible applicants will be informed of 
this ineligibility or financial infeasibility. Any proposal denied by 
the Agency will be returned to the applicant and the applicant will be 
given appeal rights pursuant to 7 CFR part 11.
    5. Financial Feasibility: Using the results of the CNA to help 
identify the need for resources and applicant provided information 
regarding anticipated or available third-party financing, the Agency 
will determine the financial feasibility of each potential transaction, 
using restructuring tools available either through existing regulatory 
authorities or specifically authorized through this demonstration 
program. A project is financially feasible when it can provide 
affordable, decent, safe, and sanitary housing for 20 years or the 
remaining term of any Agency loan, whichever ends later, by using the 
authorities of this program while minimizing the cost to the Agency, 
and without increasing rents for eligible tenants or farm laborers, 
except when necessary to meet normal and necessary operating expenses. 
If the transaction is determined financially feasible by the Agency, 
the borrower will be offered a restructuring proposal, if funding is 
available. This will include a requirement that the borrower will 
execute, for recordation, an Agency approved restrictive use covenant 
for a period of 20 years, the remaining term of any loans, or the 
remaining term of any existing restrictive-use provisions, whichever 
ends later. The restructuring proposal will be established in the form 
of the MPRCC.
    6. MPR Agreements: If the offer is accepted by the applicant, the 
applicant must accept the MPRCC. By accepting the offer, the applicant 
must also agree to restrict the project pursuant to the MPRCC. Any 
third-party lender will be required to subordinate to the Agency's 
restrictive use covenant unless the Agency determines, on a case-by-
case basis, that the lender's refusal to subordinate will not 
compromise the purpose of the MPR. As part of the MPRCC, the Agency may 
require the applicant to sign an Agency approved agreement that 
requires the owner to escrow reserve, tax, and insurance payments in 
accordance with all pertinent current and future Agency regulations not 
otherwise inconsistent with this Notice. In addition, the MPRCC may 
also require the applicant to accept future rent increases based on an 
Annual Adjustment Factor (AAF) determined by the Secretary. The AAF 
allows rents to be adjusted by the annual inflation factor as 
determined by the United States Office of Management and Budget. The 
exact AAF will be established in the MPRCC.
    7. General Requirements: The MPR transactions may be conducted with 
a stay-in owner (simple) or may involve a change in ownership (complex 
or portfolio). Any housing or related facilities that are constructed 
or repaired must meet the Agency design and construction standards and 
the development standards contained in 7 CFR part 1924, subparts A and 
C, respectively. Once constructed, Section 515 MFH and Section 514/516 
FLH projects must be managed in accordance with 7 CFR part 3560. Tenant 
eligibility will be limited to persons who qualify as an eligible 
household under Agency regulations. Tenant eligibility requirements are 
contained in 7 CFR 3560.152.

[[Page 75124]]

    8. Voluntary ``Community Market Rent'' Demonstration (available for 
Section 515 projects only): In conjunction with this demonstration, the 
Agency also announces the opportunity for all successful Section 515 
applicants to participate on a voluntary basis in a viability test of a 
30 percent limitation on tenant rents, as proposed in Section 544 
(b)(7) of Saving American's Rural Housing Act of 2006, H.R. 5069, for 
post-restructured properties. Owners of projects in the Section 515 MPR 
program may elect to participate in the ``community market rent'' 
demonstration which will allow an owner to set a rent above the 
approved basic rent for any unit not currently occupied by a tenant 
receiving Agency RA. Eligible tenants for these units must have 
adjusted annual incomes sufficient to allow them to pay the community 
market rent using less than 30 percent of their adjusted income. With 
the Agency's consent, up to 50 percent of the difference between the 
basic rent and the new ``community market rent'' could be retained by 
the owner as an increased return.
    For example, if the basic rent is $350, the owner could create a 
community market rent at $410, and market the unit to tenants who could 
pay the $410 rent at less than 30 percent of adjusted income. A 
percentage of the $60 difference could be retained by the owner, as 
negotiated with the Agency, up to $30.
    Prior to implementation of the community market rent 
demonstrations, the Agency will issue guidance to successful applicants 
who have indicated an interest in participating in the demonstration 
providing further details with respect to the program.

II. Award Information

    The Consolidated and Further Continuing Appropriations Act, 2012 
(Pub. L. 112-55), November 18, 2011, appropriated $2,000,000 in budget 
authority to operate the MPR Demonstration Program. The budget 
authority is anticipated to make approximately $19.9 million available 
in program funds depending on the funding tools used. This funding 
remains available until expended.
    All Agency funding of applications submitted under this Notice must 
be approved no later than September 30, 2013. Applicants are alerted 
that the Agency has unfunded applications carried over from prior 
Notices that will receive priority based on that Notice. If funds 
available for the MPR are fully committed before all eligible pre-
applications selected for further processing are funded, the Agency 
shall suspend further processing of the pre-applications at that time. 
If additional funding is received during 2013, processing will 
continue. Any pre-applications or applications that have not been 
approved by September 30, 2013, will be considered (based on scoring 
under the prior applicable Notice) with any pre-applications received 
under any future Notice unless the application is withdrawn. Any pre-
applications selected under this Notice, or prior Notices, that are not 
approved by the Agency prior to September 30, 2014, will be considered 
withdrawn automatically. However, the applicants may reapply for 
funding under future Notices.

III. Eligibility Information

    Applicants (and the principals associated with each applicant) must 
meet the following requirements:
    1. Eligibility under applicable provisions of 7 CFR 3560.55 and 
3560.555; however, the requirements described in 7 CFR 3560.55(a)(5) 
pertaining to required borrower contributions and paragraph (a)(6) 
pertaining to required contributions of initial operating capital are 
waived for all MPR proposals. Eligibility consideration also includes 
the continued ability of the borrower/applicant to provide acceptable 
management and will include an evaluation of any current outstanding 
deficiencies. Any outstanding violations, recorded in the Agency's 
Automated MFH Information System (MFIS), will preclude further 
processing of any MPR applications associated with the borrower or 
Identity of Interest (IOI) management agent unless there is a current, 
approved workout plan in place and the plan is being satisfactorily 
followed as determined by the Agency.
    2. For Section 515 Rural Rental Housing (RRH) projects, the average 
physical vacancy rate for the 12 months preceding the filing of the 
pre-application can be no more than 10 percent for projects of 16 units 
or more and no more than 15 percent for projects less than 16 units 
unless an exception applies under Section VI paragraph (1)(ii) of this 
Notice. If a project consolidation is involved, the consolidation will 
remain eligible so long as the average vacancy rate for all the 
projects involved meets the occupancy standard noted in this paragraph. 
Projects that do not meet the occupancy threshold at the time of filing 
the application may be withdrawn by the owner from the application 
process without jeopardizing the application.
    3. For Section 514/516 FLH projects, rather than an average 
physical vacancy rate as noted in III(2) above, a positive cash flow 
for the previous full 3 years of operation is required unless an 
exception applies under Section VI paragraph (1)(ii) of this Notice.
    4. Ownership of and ability to operate the project after the 
transaction is completed. In the event of a transfer, the proposed 
transferee, with an executed purchase agreement or other evidence of 
site control, must apply. Purchase agreements that are not executed or 
are expired will not be accepted.
    5. An Agency approved CNA (for guidance refer to https://www.rurdev.usda.gov/HMF_MPR.html and an Agency financial evaluation 
must be conducted to ensure that utilization of the restructuring tools 
of the MPR program is financially feasible and necessary for the 
revitalization and preservation of the project for affordable housing. 
Initial eligibility for processing will be determined as of the date of 
the pre-application filing deadline. The Agency reserves the right to 
discontinue processing any application due to material changes in the 
applicant's status occurring at any time after the initial eligibility 
determination.
    6. Please note that all grant eligible applicants must obtain a Dun 
and Bradstreet Data Universal Numbering System (DUNS) number and 
register in the Central Contractor Registration (CCR) prior to 
submitting a pre-application pursuant to 2 CFR 25.200(b). In addition, 
an entity applicant must maintain registration in the CCR database at 
all times during which it has an active Federal award or an application 
or plan under consideration by the Agency. Similarly, all recipients of 
Federal Financial Assistance are required to report information about 
first-tier sub-awards and executive compensation, in accordance with 2 
CFR part 17a. So long as an entity applicant does not have an exception 
under 2 CFR 170.110(b), the applicant must have the necessary processes 
and systems in place to comply with the reporting requirements should 
the applicant receive funding. See 2 CFR 170.200(b).

IV. Equal Opportunity and Nondiscrimination Requirements

    USDA is an equal opportunity provider, employer, and lender.
    1. Borrowers and applicants will comply with the provisions of 7 
CFR 3560.2.
    2. All housing must meet the accessibility requirements found at 7 
CFR 3560.60(d).
    3. All MPR participants must submit or have on file a valid Form RD 
400-1, ``Equal Opportunity Agreement'' and

[[Page 75125]]

Form RD 400-4, ``Assurance Agreement.''
    USDA prohibits discrimination in all its programs and activities on 
the basis of race, color, national origin, age, disability, sex, 
marital status, familial status, religion, sexual orientation, or 
because all or part of an individual's income is derived from any 
public assistance program. (Not all prohibited bases apply to all 
programs.) Persons with disabilities who require alternative means for 
communication of program information (Braille, large print, audiotape, 
etc.) should contact USDA's TARGET Center at (202) 720-2600 (Voice and 
TDD). To file a complaint of discrimination, write to USDA, Director, 
Office of Adjudication and Compliance, 1400 Independence Avenue SW., 
Washington, DC 20250-9410, or call (800) 795-3272 (Voice) or (202) 720-
6382 (TDD).
    The policies and regulations contained in 7 CFR Part 1901, Subpart 
E, apply to this program.

V. Authorities Available for MPR

    MPR tools will be used in accordance with 7 CFR part 3560. The 
program will be administered within the resources available to the 
Agency through Public Law 112-55 and any future appropriations for the 
preservation and revitalization of Section 514/516 and Section 515 
financed projects. In the event that any provisions of 7 CFR part 3560 
conflict with this demonstration program, the provisions of the MPR 
will take precedence.

VI. Application and Submission Information

    1. The application submission and scoring process will be completed 
in two phases in order to avoid unnecessary effort and expense on the 
part of borrowers/applicants and to allow additional points for 
applicants that propose a transfer of a troubled project to an eligible 
owner.
    Phase I--The first phase is the pre-application process. The 
applicant must submit a complete pre-application by the deadline date 
under the ``DATES'' section of this Notice. The applicant's submission 
will be classified as ``complete'' when the MPR Pre-application form is 
received in the correct format and place as described in this Notice 
for each MPR proposal the applicant wishes to be considered in the 
demonstration. In the event the MPR proposal involves a project 
consolidation, it will be completed in accordance with 7 CFR 3560.410. 
One pre-application for the proposed consolidated project is required 
and must identify each project included in the consolidation. If the 
MPR proposal involves a portfolio transaction (sale or stay in owner), 
one pre-application for each project in the portfolio is required and 
each pre-application must identify each project included in the 
portfolio transaction. In addition, a synopsis of this program and the 
pre-application's universal resource locator (URL) will be listed by 
Catalog of Federal Domestic Assistance Number or at Federal GrantsWire 
at https://www.federalgrantswire.com.
    In order for the pre-application to be considered complete, all 
applicable information requested on the MPR Pre-application form must 
be provided. Additional information that must be provided with the pre-
application, when applicable, includes:
    i. A copy of a purchase agreement if a transfer of ownership is 
proposed.
    ii. A market survey for any pre-application project not meeting the 
occupancy standards cited in Section III (2) and (3) above. The market 
survey should show there is an overwhelming market demand for the 
project evidenced by waiting lists and a housing shortage confirmed by 
local housing agencies and realtors. The market survey must show a 
clear need and demand for the project once a restructuring transaction 
is completed. The results of the survey of existing or proposed rental 
or labor housing, including complex name, location, number of units, 
bedroom mix, family or elderly type, year built, and rent charges must 
be provided as well as the existing vacancy rate of all available 
rental units in the community, their waiting lists and amenities, and 
the availability of RA or other subsidies. The Agency will determine 
whether or not the proposal has market feasibility based on the data 
provided by the applicant. Any costs associated with the completion of 
the market survey is NOT an eligible program project expense.
    Unless an exception under this section applies, the requirements 
stated in Section III, paragraph (2) and (3) of this Notice must be 
met.

    Note: All documents must be received on or before the pre-
application closing deadline to be considered complete and timely 
filed. Pre-applications that do not include a Purchase Agreement for 
transfer proposals or market surveys for projects that do not meet 
the occupancy standards of Section III paragraphs (2) and (3) of 
this Notice, will be considered incomplete and will be returned to 
the applicant with appeal rights.

    Phase II--The second phase of the application process will be 
completed by the Agency based on Agency records and the pre-application 
information submitted. All complete, eligible, and timely-filed pre-
applications will be scored and ranked based on points received during 
this two-phase application process. Further, the Agency will categorize 
each MPR proposal as being potentially a Simple, Complex, or a 
Portfolio transaction based on the information submitted on the pre-
application and in accordance with the category description provided in 
Section I of this Notice.
    2. Pre-applications can be submitted either electronically or in 
hard copy. The Agency will record pre-applications received 
electronically by the actual date and time received in the MPR Web site 
mail box. This date may impact ranking of the application as discussed 
under section VII. For all hard copy pre-applications received, the 
recorded receipt time will be the close of business time for the day 
received. Assistance for filing electronic and hard copy pre-
applications can be obtained from any Rural Development State Office. A 
listing of State Offices, their addresses, telephone numbers and person 
to contact is included under Section X of this Notice.
    The pre-application is an Adobe Acrobat format and may be completed 
as a fillable form. The form contains a button labeled ``Submit by 
Email.'' Clicking on the button will result in an email containing a 
completed pre-application being sent to the MPR Web site mail box for 
consideration. If a purchase agreement or market survey is required, 
these additional documents are to be attached to the resulting email 
prior to submission.
    Pre-application forms may be downloaded from the Agency's Web site 
at https://www.rurdev.usda.gov/RD_NOFAs.html or obtained by contacting 
the State Office in the State the project is located. Hard copy pre-
applications and additional materials can be mailed to the attention of 
Sherry Engel or Tiffany Tietz, at sherry.engel@wdc.usda.gov or 
tiffany.tietz@wdc.uda.gov, at (715) 345-7677 (616) 942-4111, extension 
126, Finance and Loan Analyst, Multi-Family Housing Preservation and 
Direct Loan Division, STOP 0782 (Room 1263-S), U.S. Department of 
Agriculture, Rural Housing Service, 1400 Independence Avenue SW., 
Washington, DC 20250-0781. (Please note this telephone number is not a 
toll-free number.)

VII. Selection for Processing

    A. Pre-application ranking points will be based on information 
provided during the submission process and in Agency records. Only 
timely, complete

[[Page 75126]]

pre-applications will be ranked. Points will be awarded as follows:
    1. Contribution of other sources of funds. Other funds are those 
discussed in items (i) through (vi) of Section I of this Notice. Points 
awarded are to be based on documented written evidence that the funds 
are committed. The maximum points awarded for this criterion is 25 
points. These points will be awarded in the following manner:
    i. Evidence of a commitment of at least $3,000 to $5,000 per unit 
per project from other sources--15 points, or
    ii. Evidence of a commitment greater than $5,000 per unit per 
project from other sources--20 points.
    iii. Evidence of a commitment greater than $5,000 per unit per 
project from other sources and a binding written commitment by a third-
party to contribute 25 percent or more of any allowable developer fee 
to the hard costs of construction--25 points.
    2. Owner contribution. The maximum points awarded for this 
criterion is 10 points. These points will be awarded in the following 
manner:
    i. Owner contribution sufficient to pay transaction costs. (These 
funds cannot be from the project's reserve or operating funds.) 
Transaction costs are defined as those Agency approved costs required 
to complete the transaction under this Notice and include, but are not 
limited to, the CNA, legal and closing costs, appraisal costs and 
filing/recording fees. The minimum contribution required to receive 
these points is $10,000 per project and must be deposited into the 
respective project reserve account prior to closing the MPR transaction 
from the owner's non-project resources. 5 points
    ii. Owner contribution for the hard costs of construction. (These 
funds cannot be from the project's reserve account or project's general 
operating account or in the form of a loan.) Hard costs of construction 
are defined as those costs for materials, equipment, property or 
machinery required to complete the proposal under this Notice. Hard 
costs must be itemized on Form RD 1924-13, ``Estimate and Certificate 
of Actual Cost.'' Form RD 1924-13 which can be found at https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1924-13.PDF. The 
minimum contribution required to receive these points is $1,000 per 
unit per project which will be required to be deposited in the project 
reserve account or a supervised/construction account, as directed by 
Rural Development, prior to closing. An increased RTO may be budgeted 
and allowed for funds committed in accordance with 7 CFR 
3560.406(d)(14)(ii). 10 points
    3. Age of project. For project consolidation (including portfolio 
transactions) proposals, the project with the earliest operational date 
(operational date is the date the project initially placed in service 
and documented in the Agency's Multi-Family Housing Information System 
(MFIS)) will be used in determining the age of the project. Since the 
age of the project and the date the project placed in service are 
directly related to physical needs, a maximum of 25 points will be 
awarded based on the following criteria:
    i. Projects with initial operational dates prior to December 21, 
1979--25 points.
    ii. Projects with initial operational dates on or after December 
21, 1979, but before December 15, 1989--20 points.
    iii. Projects with initial operational dates on or after December 
15, 1989, but before October 1, 1991--15 points.
    iv. Projects with initial operational dates on or after October 1, 
1991--0 points.
    4. Troubled project points. The Agency may award up to 25 points to 
pre-applications involving projects that have been adversely impacted 
by an act of nature or where physical and/or financial deterioration or 
management deficiencies exist. Projects classified ``B'', ``C'' or 
``D'', as defined below, will be considered troubled and points will be 
awarded in the following manner:

Class ``D'' Projects

    Class ``D'' projects are in default and may be taken into 
inventory, be lost to the program or cause the displacement of tenants. 
Defaults can be monetary or non-monetary. Projects in non-monetary 
default are those where the Agency has notified the borrower of a 
violation using the Agency's three processing letter process and the 
borrower has not addressed the violation to the Agency's satisfaction.

Class ``C'' Projects

    Class ``C'' projects are projects with identified findings or 
violations, which are not associated to a workout plan and/or 
transition plan. This can include projects with violations where a 
servicing letter has been issued but 60 days have not passed.

Class ``B'' Projects

    Class ``B'' projects indicates that the Agency has taken servicing 
steps and the borrower is cooperating to resolve identified findings or 
violations by associating a workout plan and/or transition plan.
    For Transfer proposals:
    i. For projects classified a ``C'' or ``D'' for 24 months or more--
20 points.
    ii. For projects classified as a ``C'' or ``D'' for less than 24 
months--15 points.
    Stay in owner proposals:
    i. For projects classified as a ``B'' as a result of a workout plan 
and/or transition plan approved by the Agency prior to 1/1/2012--25 
points.
    ii. Projects with an Agency ``C'' classification, for 6 months or 
longer at the time the MPR pre- application is filed, will not be 
considered eligible to participate in the MPR.
    5. Proposed or Closed Sale of 515 projects to Non-Profit/Public 
Housing Authority. The Agency will award 20 points for projects that 
have or will be sold to non-profit organizations under the prepayment 
process as explained in 7 CFR part 3560, Subpart N. To receive points, 
the borrower/applicant must provide a copy of the executed purchase 
agreement (if sale is proposed) or a copy of the purchase agreement and 
filed deed (if sale is already closed to an eligible non-profit or 
public body)--20 points.
    6. Prior approved CNAs. In the interest of ensuring timely 
application processing and underwriting, the Agency will award up to 20 
points for projects with CNAs already approved by the Agency. 
``Approved'' means the initial CNA or an updated CNA was previously 
reviewed and approved by the Agency. CNAs or updates before October 1, 
2010 may not be used for MPR underwriting without an update approved by 
the Agency. Points will be awarded for:
    i. CNAs approved on or after October 1, 2010, but prior to October 
1, 2011--10 points.
    ii. CNAs approved on or after October 1, 2011, but prior to the 
publication of this Notice--20 points.
    7. Tenant service provision. The Agency will award 5 points for 
applications that include new services provided by either a for-profit 
or a non-profit organization, which may include a faith-based 
organization, or by another Government agency. Such services shall be 
provided at no cost to the project and shall be made available to all 
tenants. Examples of such services may include transportation for the 
elderly, after-school day care services or after-school tutoring.
    8. Consolidation of project operations. To encourage post-
transaction operational cost savings and management efficiencies, the 
Agency will award 5 points for pre-applications that include at least 
two and up to four projects that will consolidate project budget and 
management operations and 10 points for applicants that include at

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least five or more projects that will consolidate project budget and 
management operations. Consolidations must meet the requirements of 7 
CFR 3560.401. (5 or 10 points.)
    For portfolio sales and project consolidations, the Agency will 
calculate the average score for each project within the portfolio or 
consolidation.
    9. Energy Conservation, Energy Generation, and Green Property 
Management. Under the MPR Energy Initiatives, projects may receive a 
maximum of 42 points under three categories: Energy Conservation, 
Energy Generation and Green Property Management.
    i. Energy Conservation--30 points.
    Pre-applications for rehabilitation and preservation of projects 
may be eligible to receive a maximum of 30 points for the following 
energy conservation measures.
    (a) Participation in the Green Communities program by the 
Enterprise Community Partners, https://www.enterprisecommunity.com/solutions-and-innovation/enterprise green-communities, or an equivalent 
Agency approved program will be awarded 30 points for any project that 
qualifies for the program. At least 30 percent of the points needed to 
qualify for the Green Communities program must be earned under the 
Energy Efficiency section of the Green Communities qualification 
program. Green Communities has an initial checklist indicating 
prerequisites for participation. Each applicant must provide a 
checklist establishing that the prerequisites for each program's 
participation will be met. Additional points will be awarded for 
checklists that achieve higher levels of energy efficiency 
certification as set forth below. All checklists must be accompanied by 
a signed affidavit by the project architect or engineer stating that 
the goals are achievable.
    (b) If you are not enrolling in the Green Communities program, then 
points can be accumulated for each of the following items up to a total 
of 20 points. Provide documentation to substantiate your answers below:
    i. This proposal includes the replacement of heating, ventilation 
and air conditioning (HVAC) equipment with Energy Star qualified 
heating, ventilation and air conditioning equipment. 3 points.
    ii. This proposal includes the replacement of windows and doors 
with Energy Star qualified windows and doors. 3 points.
    iii. This proposal includes additional attic and wall insulation 
that exceeds the required R-Value of these building elements for your 
areas as per the International Energy Conservation Code 2009. Two 
points will be awarded if all exterior walls exceed insulation code, 
and 1 point will be awarded if attic insulation exceeds code for a 
maximum of 3 points.
    iv. This proposal includes the reduction in building shell air 
leakage by at least 15 percent as determined by pre- and post-rehab 
blower door testing on a sample of units. Building shell air leakage 
may be reduced through materials such as caulk, spray foam, gaskets and 
house-wrap. Sealing of duct work with mastic, foil-backed tape, or 
aerosolized duct sealants can also help reduce air leakage. 3 points.
    v. This proposal includes 100 percent of installed appliances and 
exhaust fans that are Energy Star qualified. 2 points
    vi. This proposal includes 100 percent of installed water heaters 
that are Energy Star qualified. 2 points.
    vii. This proposal included replacement of 100 percent of toilets 
with flush capacity of more than 1.6 gallon flush capacity with new 
toilets having 1.6 gallon flush capacity or less, and with Environment 
Protection Agency (EPA) Water Sense label. 1 point.
    viii. This proposal includes 100 percent of new showerheads with 
EPA Water Sense label. 1 point.
    ix. This proposal included 100 percent of new faucets with WPA 
Water Sense label. 1 point.
    x. This proposal included 100 percent energy-efficient lighting 
including Energy Star qualified fixtures, compact fluorescent 
replacement bulbs in standard incandescent fixtures and Energy Star 
ceiling fans. 1 point.

And

    (c) Participation in local green/energy efficient building 
standards. Applicants, who participate in a city, county or 
municipality program, will receive an additional 2 points. The 
applicant should be aware and look for additional requirements that are 
sometimes embedded in the third-party program's rating and verification 
systems. 2 points.
    10. Energy Generation (maximum 5 points).
    Pre-applications which participate in the Green Communities program 
by the Enterprise Community Partners or an equivalent Agency approved 
program or receive at least 8 points for Energy Conservation measures 
are eligible to earn additional points for installation of on-site 
renewable energy sources. Renewable, on-site energy generation will 
complement a weather-tight, well insulated building envelope with 
highly efficient mechanical systems. Possible renewable energy 
generation technologies include, but are not limited to: wind turbines 
and micro-turbines, micro-hydro power, photovoltaic (capable of 
producing a voltage when exposed to radiant energy, especially light), 
solar hot water systems and biomass/biofuel systems that do not use 
fossil fuels in production. Geo-exchange systems are highly encouraged 
as they lessen the total demand for energy and, if supplemented with 
other renewable energy sources, can achieve zero energy consumption 
more easily.
    Points under this paragraph will be awarded as follows. Projects 
with preliminary or rehabilitation building plans and energy analysis 
propose a 10 percent to 100 percent energy generation commitment (where 
generation is considered to be the total amount of energy needed to be 
generated on-site to make the building a net-zero consumer of energy) 
may be awarded points corresponding to their percent of commitment as 
follows:
    (a) 0 to 9 percent commitment to energy generation receives 0 
points;
    (b) 10 to 29 percent commitment to energy generation receives 1 
point;
    (c) 30 to 49 percent commitment to energy generation receives 2 
points;
    (d) 50 to 69 percent commitment to energy generation receives 3 
points;
    (e) 70 to 89 percent commitment to energy generation receives 4 
points;
    (f) 90 percent or more commitment to energy generation receives 5 
points.
    In order to receive more than 1 point for this energy generation 
paragraph, an accurate energy analysis prepared by an engineer will 
need to be submitted with the pre-application. Energy analysis of 
preliminary building plans using industry-recognized simulation 
software must document the projected total energy consumption of the 
building, the portion of building consumption which will be satisfied 
through on-site generation, and the building's Home Energy Rating 
System (HERS) score.
    11. Green Property Management Credentials (5 points).
    Pre-applications may be awarded an additional 5 points if the 
designated property management company or individuals that will assume 
maintenance and operations responsibilities upon completion of 
construction work have a Credential for Green Property Management. 
Credentialing can be obtained from the National Apartment Association 
(NAA), National Affordable Housing Management Association, The 
Institute for Real Estate Management, U.S. Green Building Council's 
Leadership in Energy and Environmental Design for

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Operations and Maintenance (LEED OM), or another Agency approved source 
with a certifiable credentialing program. Credentialing must be 
illustrated in the resume(s) of the property management team and 
included with the pre-application.
    The Agency will total the points awarded to each pre-application 
received within the timeframes of this Notice and rank each pre-
application according to total score. If point totals are equal, the 
earliest time and date the pre-application was received by the Agency 
will determine the ranking. In the event pre-applications are still 
tied, they will be further ranked by giving priority to those projects 
with the earliest Rural Development operational date as defined under 
paragraph VII. 3.
B. Confirmation of Eligibility
    Eligibility will be confirmed after ranking is completed on the 10 
highest-scoring pre-applications in each State. If one or more of the 
10 highest-scoring pre-applications is determined ineligible, (i.e. the 
applicant is a borrower that is not in good standing with the Agency or 
has been debarred or suspended by the Agency, etc.) the next highest-
scoring pre-application will be confirmed for eligibility.
    If one or more of the 10 highest-ranking pre-applications is a 
portfolio transaction, eligibility determinations will be conducted on 
each pre-application associated with the portfolio. Should any of the 
pre-applications associated with the portfolio sale be determined 
ineligible, those ineligible pre-application(s) will be rejected, but 
the overall eligibility of the portfolio sale will not be affected as 
long as the requirements in Section I and other provisions of this 
Notice are met.
    If one or more of the 10 highest-ranking pre-applications in a 
State is a project consolidation, and one of the projects involved in 
the consolidation does not meet the occupancy standards cited in 
Section III (2), that project(s) will be determined ineligible and 
eliminated from the proposed consolidation transaction.
C. Selection of Pre-Applications for Further Processing
    Once ranking and eligibility confirmations are complete, the Agency 
will conduct a four-step process to select eligible pre-applications 
for submission of formal applications. This process will allow the 
Agency to develop a representative sampling of revitalization 
transaction types, assure geographic distribution, and assure an 
adequate pipeline of transactions to use all available funding. All MPR 
tools are available to be used on both Section 514/516 and Section 515 
projects.
    Step One: The Agency will review the eligible pre-applications, 
categorize each pre-application as either Simple, Complex, or Portfolio 
(see section I) and sort them by State.
    Step Two: The Agency will select, for further processing, the top-
ranked portfolio transactions until a total of $50,000,000 in potential 
debt deferral is reached. Portfolio transactions will be limited to one 
per State (either RRH or FLH) and will count as one MPR transaction. A 
portfolio transaction, as defined in section I will be limited to a 
maximum of 15 projects.
    Step Three: The highest ranked complex transactions (RRH or FLH) 
will be selected for further processing, not to exceed 1 per State.
    Step Four: Additional projects will be selected from the highest 
ranked eligible pre-applications involving simple transactions in each 
State until a total of three RRH pre-applications for MPR transactions 
are reached. If a FLH complex transaction has not been selected in Step 
Three above, one additional FLH project will be selected from the 
highest ranked eligible pre-applications involving FLH simple 
transactions, until a total of four MPR pre-applications per State is 
reached. States that do not have a FLH pre-application will be limited 
to three MPR pre-applications.
    If there are insufficient funds for all projects under any step, 
the Agency may suspend further selections. Any remaining eligible 
applications will be carried over to the next fiscal year for 
consideration. Any pre-applications that have not been approved by 
September 30, 2013, will be rescored and ranked with any future pre-
applications according to the applicable future Notice unless it is 
withdrawn. Any such unfunded pre-applications not approved by the 
Agency prior to September 30, 2014, automatically will be considered 
withdrawn by the Agency. Applicants, however, may reapply for funding 
under future Notices.

VIII. Processing of Selected Pre-Applications

    Those eligible pre-applications that are ranked and then selected 
for further processing will be invited to submit a formal application 
on SF 424, ``Application for Federal Assistance.'' Those eligible pre-
applications that are not selected for further processing will be 
retained by the Agency unless they are withdrawn according to this 
Notice. Applicants rejected will be notified their pre-applications 
were not selected and provided with appeal rights under 7 CFR part 11. 
In the event a pre-application is selected for further processing and 
the applicant declines, the next highest ranked pre-application of the 
same transaction type in that State will be selected provided there is 
no change in the preliminary eligibility of the pre-applicant. If there 
are no other pre-applications of the same transaction type, then the 
next highest-ranked pre-application, regardless of transaction type, 
will be selected.
    Applications (SF 424s) can be obtained and completed online. An 
electronic version of this form may be found on the internet at https://www.epa.gov/ogd/AppKit/index.htm or a hard copy may be obtained by 
contacting the State Office in the State where the project is located 
and can be submitted either electronically or in hard copy (refer to 
Section X for a listing of State Offices)
    Awards made under this Notice are subject to the provisions 
contained in the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2012, Public 
Law 112-55, Division A sections 738 and 739 regarding corporate felony 
convictions and corporate federal tax delinquencies. To comply with 
these provisions, all applicants also must submit form AD-3030 which 
can be found here: https://www.ocio.usda.gov/forms/ocio_forms.html.
    If a pre-application is accepted for further processing, the 
applicant must submit additional information needed to demonstrate 
eligibility and feasibility (such as a CNA), consistent with this 
Notice and the appropriate sections of 7 CFR part 3560, prior to the 
issuance of any restructuring offer. The Agency will provide additional 
guidance to the applicant and request information and documents 
necessary to complete the underwriting and review process. Since the 
character of each application may vary substantially depending on the 
type of transaction proposed, information requirements will be provided 
as appropriate. Complete project information must be submitted as soon 
as possible, but in no case later than 45 calendar days from the date 
of Agency notification of the applicant's selection for further 
processing or September 1, 2013, whichever occurs first. Failure to 
submit the required information in a timely manner may result in the 
Agency discontinuing the processing of the request.
    The Agency will work with the applicants selected for further 
processing in accordance with the following:

[[Page 75129]]

    1. Based on the feasibility of the type of transaction that will 
best suit the project and the availability of funds, further 
eligibility confirmation determinations will be conducted by the 
Agency.
    2. If an Agency approved CNA has not already been submitted to the 
Agency, an Agency approved CNA will be required (see 7 CFR 3560.103(c) 
and the Agency's published ``Guidance on the Capital Needs Assessment 
Process'' available at https://www.rurdev.usda.gov/HMF_MPR.html and 
the CNA Statement of Work together with any non-conflicting 
amendments). Agency approved CNAs must be prepared by a qualified 
independent contractor and are obtained to determine needed repairs and 
any necessary adjustments to the reserve account for long-term project 
viability. In order for the Agency to approve a CNA it must also 
include:
    i. A physical inspection of the site, architectural features, 
common areas and all electrical and mechanical systems;
    ii. An inspection of a sample of dwelling units;
    iii. Identify repair or replacement needs;
    iv. Provide a cost estimate of the repair and replacement expenses; 
and
    v. Provide at least a 20-year analysis of the timing and funding 
for identified needs which includes reasonable assumptions regarding 
inflation. The cost of the CNA will be considered a part of the project 
expense and may be paid from the ``project reserve'' with prior 
approval of the Agency. The Agency approval for participation in this 
program will be contingent upon the Agency's final approval of the CNA 
and concurrence in the scope of work by the owner. The Agency, in its 
sole discretion, may choose to obtain a CNA, at its expense, if it 
determines that doing so is in the best interest of the Government.
    3. Underwriting will be conducted by the Agency. The feasibility 
and structure of each revitalization proposal will be based on the 
Agency's underwriting and determination of the restructuring tools that 
will minimize the cost to the Government consistent with the purposes 
of this Notice.

IX. MPR Offers

    Approved MPR offers will be presented to successful applicants who 
will then have up to 15 calendar days to accept or reject the offer in 
writing. If no offer is made, the application will be rejected and 
appeal rights will be given. Closing of MPR offers will occur within 90 
days of acceptance by the applicant unless extended in writing by the 
Agency.

X. USDA Rural Development MFH State Office Contacts

    (Note: Telephone numbers listed are not toll-free.)

Alabama State Office, Suite 601, Sterling Centre, 121 Carmichael 
Road, Montgomery, AL 36106-3683, (334) 279-3455, Anne Chavers.
Alaska State Office, 800 West Evergreen, Suite 201, Palmer, AK 
99645, (907) 761-7723, Cindy Jackson.
Arizona State Office, Phoenix Courthouse and Federal Building, 230 
North First Avenue, Suite 206, Phoenix, AZ 85003-1706, (602) 280-
8764, Ernie Wetherbee.
Arkansas State Office, 700 W. Capitol Avenue, Room 3416, Little 
Rock, AR 72201-3225, (501) 301-3254, Jackie Young.
California State Office, 430 G Street, 4169, Davis, CA 
95616-4169, (530) 792-5821, Debra Moretton.
Colorado State Office, USDA Rural Development, Denver Federal 
Center, Building 56, Room 2300, P.O. Box 25426, Denver, CO 80225-
0426, (720) 544-2923, Mary Summerfield.
Connecticut, Served by Massachusetts State Office.
Delaware and Maryland State Office, 1221 College Park Drive, Suite 
200, Dover, DE 19904, (302) 857-3615, Debra Eason.
Florida & Virgin Islands State Office, 4440 NW. 25th Place, 
Gainesville, FL 32606-6563, (352) 338-3465, Tresca Clemmons.
Georgia State Office, Stephens Federal Building, 355 E. Hancock 
Avenue, Athens, GA 30601-2768, (706) 546-2164, Jack Stanek.
Hawaii State Office, (Services all Hawaii, American Samoa Guam, and 
Western Pacific), Room 311, Federal Building, 154 Waianuenue Avenue, 
Hilo, HI 96720, (808) 933-8305, Nate Reidel.
Idaho State Office, Suite A1, 9173 West Barnes Drive, Boise, ID 
83709, (208) 378-5628, Joyce Weinzetl.
Illinois State Office, 2118 West Park Court, Suite A, Champaign, IL 
61821-2986, (217) 403-6222, Barry L. Ramsey.
Indiana State Office, 5975 Lakeside Boulevard, Indianapolis, IN 
46278, (317) 290-3100, extension 425, Douglas Wright.
Iowa State Office, 210 Walnut Street, Room 873, Des Moines, IA 
50309, (515) 284-4493, Shannon Chase.
Kansas State Office, 1303 SW First American Place, Suite 100, 
Topeka, KS 66604-4040, (785) 271-2721, Mike Resnik.
Kentucky State Office, 771 Corporate Drive, Suite 200, Lexington, KY 
40503, (859) 224-7325, Paul Higgins.
Louisiana State Office, 3727 Government Street, Alexandria, LA 
71302, (318) 473-7962, Yvonne R. Emerson.
Maine State Office, 967 Illinois Ave., Suite 4, Bangor, ME 04402-
0405, (207) 990-9110, Bob Nadeau.
Maryland, Served by Delaware State Office.
Massachusetts, Connecticut, & Rhode Island State Office, 451 West 
Street, Amherst, MA 01002, (413) 253-4310, Richard Lavoie.
Michigan State Office, 3001 Coolidge Road, Suite 200, East Lansing, 
MI 48823, (517) 324-5192, Julie Putnam.
Minnesota State Office, 375 Jackson Street Building, Suite 410, St. 
Paul, MN 55101-1853, (651) 602-7820, Linda Swanson.
Mississippi State Office, Federal Building, Suite 831, 100 W. 
Capitol Street, Jackson, MS 39269, (601) 965-4325, Darnella Smith-
Murray.
Missouri State Office, 601 Business Loop 70 West, Parkade Center, 
Suite 235, Columbia, MO 65203, (573) 876-0987, Rachelle Long.
Montana State Office, 2229 Boot Hill Court, Bozeman, MT 59715, (406) 
585-2515, Deborah Chorlton.
Nebraska State Office, Federal Building, Room 152, 100 Centennial 
Mall N, Lincoln, NE 68508, (402) 437-5734, Linda Anders.
Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-
5146, (775) 887-1222, extension 105, William Brewer.
New Hampshire State Office, Concord Center, Suite 218, Box 317, 10 
Ferry Street, Concord, NH 03301-5004, (603) 223-6050, Heidi Setien.
New Jersey State Office, 5th Floor North Suite 500, 8000 Midlantic 
Drive, Mt. Laurel, NJ 08054, (856) 787-7732, Neil Hayes.
New Mexico State Office, 6200 Jefferson Street NE., Room 255, 
Albuquerque, NM 87109, (505) 761-4945, Yvette Wilson.
New York State Office, The Galleries of Syracuse, 441 S. Salina 
Street, Suite 357 5th Floor, Syracuse, NY 13202, (315) 477-6421, 
Michael Bosak.
North Carolina State Office, 4405 Bland Road, Suite 260, Raleigh, NC 
27609, (919) 873-2055, Beverly Casey.
North Dakota State Office, Federal Building, Room 208, 220 East 
Rosser, P.O. Box 1737, Bismarck, ND 58502, (701) 530-2049, Kathy 
Lake.
Ohio State Office, Federal Building, Room 507, 200 North High 
Street, Columbus, OH 43215-2477, (614) 255-2409, Cathy Simmons.
Oklahoma State Office, 100 USDA, Suite 108, Stillwater, OK 74074-
2654, (405) 742-1070, Laurie Ledford.
Oregon State Office, 1201 NE Lloyd Boulevard, Suite 801, Portland, 
OR 97232, (503) 414-3353, Rod Hansen.
Pennsylvania State Office, One Credit Union Place, Suite 330, 
Harrisburg, PA 17110-2996, (717) 237-2281, Martha Hanson.
Puerto Rico State Office, 654 Munoz Rivera Avenue, IBM Plaza, Suite 
601, Hato Rey, PR 00918, (787) 766-5095, extension 249, Lourdes 
Colon.
Rhode Island, Served by Massachusetts State Office.
South Carolina State Office, Strom Thurmond Federal Building, 1835 
Assembly Street, Room 1007, Columbia, SC 29201, (803) 765-5122, Tim 
Chandler.
South Dakota State Office, Federal Building, Room 210, 200 Fourth 
Street SW., Huron, SD 57350, (605) 352-1136, Linda Weber.
Tennessee State Office, Suite 300, 3322 West End Avenue, Nashville, 
TN 37203-1084, (615) 783-1380, Kathy Connelly.
Texas State Office, Federal Building, Suite 102, 101 South Main, 
Temple, TX 76501, (254) 742-9711, John Kirchhoff.

[[Page 75130]]

Utah State Office, Wallace F. Bennett Federal Building, 125 S. State 
Street, Room 4311, Salt Lake City, UT 84147-0350, (801) 524-4325, 
Janice Kocher.
Vermont State Office, City Center, 3rd Floor, 89 Main Street, 
Montpelier, VT 05602, (802) 828-6015, Robert McDonald.
Virgin Islands, Served by Florida State Office.
Virginia State Office, Culpeper Building, Suite 238, 1606 Santa Rosa 
Road, Richmond, VA 23229, (804) 287-1596, CJ Michels.
Washington State Office, 1835 Black Lake Boulevard, Suite B, 
Olympia, WA 98512, (360) 704-7706, Bill Kirkwood.
West Virginia State Office, Federal Building, 75 High Street, Room 
320, Morgantown, WV 26505-7500, (304) 372-3441, extension 105, Penny 
Thaxton.
Western Pacific Territories, Served by Hawaii State Office.
Wisconsin State Office, 4949 Kirschling Court, Stevens Point, WI 
54481, (715) 345-7620, extension 157, Debbie Biga.
Wyoming State Office, P.O. Box 11005, Casper, WY 82602, (307) 233-
6716, Timothy Brooks.

X. Appeal Process

    All adverse determinations are appealable pursuant to 7 CFR part 
11. Instructions on the appeal process will be provided at the time an 
applicant is notified of the adverse action.

     Dated: December 6, 2012.
Tammye Trevi[ntilde]o,
Administrator, Rural Housing Service.
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[FR Doc. 2012-30190 Filed 12-18-12; 8:45 am]
BILLING CODE 3410-XX-C