Notice of Solicitation of Applications (NOSA) for the Multifamily Preservation and Revitalization (MPR) Demonstration Program Under Section 514, Section 515, and Section 516 for Fiscal Year 2015, 45933-45942 [2015-18990]

Download as PDF mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Notices to the agricultural industry for pollinating numerous food crops for the world’s population. Concern for honey bee colony mortality has risen since the introduction of Varroa mites in the United States in the late 1980s and the appearance of Colony Collapse Disorder in the past decade. In the Pollinator Research Action Plan, the President’s Pollinator Health Task Force identified nearly 200 tasks that need to be conducted and coordinated from across the government to research all aspects of pollinator health and to come up with suggestions for improving this vital part of our food system. The Task Force’s plan will involve conducting research and collecting data for the following categories: Status & Trends, Habitats, Nutrition, Pesticides, Native Plants, Collections, Genetics, Pathogens, Decision Tools, and Economics. The pollinators have been classified into Honey Bee, Native Bee, Wasp, Moth/ Butterfly, Fly, and Vertebrate. The departments that will conduct the bulk of the research are the Department of the Interior (DOI), the Environmental Protection Agency (EPA), the National Science Foundation (NSF), the Smithsonian Institute (SI), and the United States Department of Agriculture (USDA). NASS has been given the tasks of collecting economic data related to honey bees and quantifying the number of colonies that were lost or reduced. NASS was approved to conduct the Quarterly and Annual Colony Loss Surveys under OMB approval number 0535–0255. NASS plans to also collect the economic data under this new collection. NASS collects data from crop farmers who rely on pollinators for their crops (fruits, nuts, vegetables, etc.). Data relating to the targeted crops will be collected for the total number of acres that rely on honey bee pollination, the number of honey bee colonies that were used on those acres, and any cash fees associated with honey bee pollination. Crop Farmers will also be asked if beekeepers who were hired to bring their bees to their farm were notified of pesticides used on the target acres, how many acres they were being hired to pollinate, and how much they were being paid to pollinate the targeted crops. Authority: These data will be collected under the authority of 7 U.S.C. 2204(a). Individually identifiable data collected under this authority are governed by Section 1770 of the Food Security Act of 1985 as amended, 7 U.S.C. 2276, which requires USDA to afford strict confidentiality to nonaggregated data provided by VerDate Sep<11>2014 18:35 Jul 31, 2015 Jkt 235001 respondents. This Notice is submitted in accordance with the Paperwork Reduction Act of 1995 (Pub. L. 104–113) and the Office of Management and Budget regulations at 5 CFR part 1320. NASS also complies with OMB Implementation Guidance, ‘‘Implementation Guidance for Title V of the E-Government Act, Confidential Information Protection and Statistical Efficiency Act of 2002 (CIPSEA),’’ Federal Register, Vol. 72, No. 115, June 15, 2007, p. 33376. Estimate of Burden: Public reporting burden for this collection of information is estimated to average 15 minutes per response. Publicity materials and an instruction sheet for reporting via internet will account for 5 minutes of additional burden per respondent. Respondents who refuse to complete a survey will be allotted 2 minutes of burden per attempt to collect the data. Once a year, NASS will contact approximately 53,000 crop farmers who rely on honey bees to pollinate their fruit, nut, vegetable, and other crops. NASS will conduct the annual survey initially using a mail and internet approach. This will be followed up with phone and personal enumeration for non-respondents. NASS will attempt to obtain at least an 80% response rate. Respondents: Farmers. Estimated Number of Respondents: 53,000. Estimated Total Annual Burden on Respondents: With an estimated response rate of approximately 80%, we estimate the burden to be 13,400 hours. Comments: Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency’s estimate of the burden of the proposed collection of information including the validity of the methodology and assumptions used; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on those who are to respond, through the use of appropriate automated, electronic, mechanical, technological, or other forms of information technology collection methods. All responses to this notice will become a matter of public record and be summarized in the request for OMB approval. Signed at Washington, DC, July 24, 2015. Joseph T. Reilly, Administrator. [FR Doc. 2015–18975 Filed 7–31–15; 8:45 am] BILLING CODE 3410–20–P PO 00000 Frm 00002 Fmt 4703 Sfmt 4703 45933 DEPARTMENT OF AGRICULTURE Rural Housing Service Notice of Solicitation of Applications (NOSA) for the Multifamily Preservation and Revitalization (MPR) Demonstration Program Under Section 514, Section 515, and Section 516 for Fiscal Year 2015 Rural Housing Service, USDA. Notice. AGENCY: ACTION: The Rural Housing Service (Agency) announces the timeframe to submit applications to participate in a demonstration program to preserve and revitalize existing Rural Rental Housing (RRH) projects under Section 514, Section 515, and Section 516 of the Housing Act of 1949, as amended. Under this demonstration program, existing Section 515 Multi-Family Housing (MFH) loans and Sections 514/ 516 Off-Farm Labor Housing (FLH) loans will be restructured to ensure 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) will be made available under this program. DATES: For Fiscal Year 2015, the Agency will facilitate use of the Fiscal Year 2015 Multifamily Preservation and Revitalization (MPR) funding tools by holding a competitive application round for MPR applications requesting other MPR funding tools, in addition to the available MPR deferral assistance, and by adding a continuous open application process for any transfer applications that request only the MPR loan deferral assistance. Application deadlines for these opportunities are: (1) For MPR applications requesting debt deferral of eligible Section 514 or Section 515 loans, plus other MPR funding tools, complete applications must be received no later than 5:00 p.m. Eastern Time,120 calendar days after August 3, 2015, and (2) For any MPR applications requesting debt deferral only for eligible Section 514 or Section 515 loans, complete applications may be submitted on an ongoing basis through COB 5:00 p.m. Eastern Time, December 31, 2015. 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. Applicant’s intending to mail SUMMARY: E:\FR\FM\03AUN1.SGM 03AUN1 45934 Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES 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: Dean Greenwalt, dean.greenwalt@ wdc.usda.gov, (314) 457–5933, and/or Abby Boggs abby.boggs@wdc.usda.gov, (615) 783 1382, Finance and Loan Analyst, Multi-Family Housing Preservation and Direct Loan Division, STOP 0782, (Room 1263–S) U.S. Department of Agriculture, Rural Development, 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 these telephone numbers are not a toll-free numbers.) SUPPLEMENTARY INFORMATION: This Fiscal Year (FY) 2015 funding for the MPR demonstration program will be posted on the Rural Development Web site, www.rd.usda.gov/newsroom/ notices-solicitation-applications-nosas. The commitment of program dollars will be made to applicants of selected applications that have fulfilled the necessary requirements for obligation, to the extent an appropriation act provides funding for the MPR demonstration program. Expenses incurred in applying for this Notice will be borne by and be at the applicant’s risk. Of particular note this year, the Rural Housing Service (the Agency) will assign additional points to preapplications for projects based in or serving census tracts with poverty rates greater than or equal to 20 percent. This emphasis will support Rural Development’s (RD) mission of improving the quality of life for Rural Americans and commitment to directing resources to those most in need. A synopsis of this program and the pre-application’s universal resource locator will be listed by Catalog of Federal Domestic Assistance Number or at Federal Grants Wire at https:// www.federalgrantswire.com. 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 Federal Agency Name: Rural Housing Service, USDA. Funding Opportunity Title: Multifamily Preservation and VerDate Sep<11>2014 18:35 Jul 31, 2015 Jkt 235001 Revitalization Demonstration Program— Section 514, Section 515, and Section 516 for Fiscal Year 2015. Announcement Type: Inviting responses in the form of preapplications from interested applicants. Catalog of Federal Domestic Assistance Number (CFDA): 10.447. I. Funding Opportunity Description The Consolidated and Further Continuing Appropriations Act, 2015, Public Law 113–235, signed December 16, 2014, authorized the Agency to conduct a demonstration program for the preservation and revitalization of the Section 515 MFH portfolio and Sections 514/516 Off-FLH portfolio. Section 514, Section 515 and Section 516 MFH programs are authorized by the Housing Act of 1949, as amended (42 U.S.C. 1484, 1485 and 1486) and provide Rural Development with the authority to provide financial assistance for low- income MFH and FLH and related facilities, as described in 7 CFR part 3560. This Notice solicits pre-applications from interested borrowers/applicants to restructure existing MFH projects already participating in the Agency’s Section 515 MFH portfolio and Sections 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 MPR demonstration program shall be referred to in this Notice as the Multifamily Preservation and Revitalization demonstration program. Agency regulations for the Section 515 MFH program and the Sections 514/516 FLH program are published at 7 CFR part 3560. The intent of the MPR demonstration program is to ensure that existing rental projects will continue to deliver decent, safe and sanitary affordable rental housing for 20 years, the remaining term of any Agency loan, or the remaining term of any existing Restrictive-Use Provisions (RUP) or prohibition, whichever ends later. Note: All pre-applications will be selected by the Agency using 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 their 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 any restructuring proposal that may be offered under this Notice through an PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 MPR Conditional Commitment (MPRCC) with the eligible borrower/applicant, which will include all the terms and conditions offered by the Agency. One of the MPR tools to be used in this program is debt deferral for up to 20 years of the existing Section 514 or Section 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, support new debt or to reduce rents, as determined by the Agency. A. Debt deferral is described as follows: 1. MPR Debt Deferral. A deferral of the existing Section 514 or Section 515 Agency loan(s), obligated prior to October 1, 1991, for 20 years. If the term of any existing Section 514 or Section 515 loans is less than 20 years, the Agency will offer a re-amortization of the existing loans extending the term to a minimum of 20 years. Section 514 or Section 515 loans obligated prior to October 1, 1991, and subsequently transferred on new rates and terms may not be eligible for deferral. Any questions on whether or not a loan is eligible for deferral should be directed to the local RD State Office at: https:// teamrd.usda.gov/rd/emp_services/ directory/states/Combined.doc. 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, if applicable, the subsidy will be applied as set out in the Agency’s ‘‘Multiple Family Housing Interest Credit Agreement’’ Form RD 3560–9, which is available at https:// forms.sc.egov.usda.gov/efcommon/ eFileServices/eForms/RD3560-9.PDF. B. Other Agency MPR funding tools are as follows: 1. MPR Grant. A grant limited to nonprofit applicants/borrowers only. The grant will be limited to the cost of correcting health and safety violations of a project identified by a CNA accepted by the Agency. The grant administration will be in accordance with applicable provisions of 2 CFR parts 200 and 400. 2. MPR Zero Percent Loan. A loan at zero percent interest. The loan’s maximum term and amortization will be as authorized by the respective program authority. (a) For Section 515 RRH projects, the maximum loan term is 30 years amortized over a maximum term of 50 years. E:\FR\FM\03AUN1.SGM 03AUN1 Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Notices (b) For Sections 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. MPR funds cannot be used to build community rooms, add additional parking areas, 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 (a) through (f) can be used either for such revitalization and/or improvements: mstockstill on DSK4VPTVN1PROD with NOTICES 4. Other Sources of Funds (a) Rural Development Section 515 Rehabilitation loan funds; (b) Rural Development Sections 514/ 516 Off-Farm rehabilitation loan/grant funds; (c) Rural Development Section 538 Guaranteed Rural Rental Housing (GRRH) program financing; (d) Rural Development Multi-Family Housing Preservation Revolving Loan Funds program; (e) Third-party loans, grants, tax credits and tax-exempt financing; and (f) Owner-provided capital contributions in the form of a cash infusion. A cash infusion cannot be a loan. Transfers, subordinations, and consolidations may be approved as part of an MPR transaction in accordance with 7 CFR part 3560. If a transfer is part of the MPR transaction, and the transfer includes a seller payment and/ or increase in the allowable Return to Owner (RTO), the transfer must first be underwritten to meet the requirements of 7 CFR 3560.406. The transfer underwriting may assume the deferral of all eligible Sections 514/516 or Section 515 loans. After the transfer has been underwritten and concurred with by the Agency’s Multifamily Housing Preservation and Direct Loan Division, the MPR transaction may be underwritten. For the purposes of the MPR demonstration program, the restructuring transactions will be identified by the Agency in three categories: VerDate Sep<11>2014 18:35 Jul 31, 2015 Jkt 235001 • Simple Transactions: These involve no change in ownership. • Complex Transactions: These 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 preapplication. If a consolidation is proposed, all projects to be consolidated must be submitted on one preapplication and be located in the same market area. To be considered in the same market area, projects must be in a neighborhood or similar area where the property competes for tenants; managed under one management plan and one management agreement; and, in sufficiently close proximity to permit convenient and efficient management of the property. Applicants should discuss proposed consolidations with the Rural Development State Office in the State(s) where the projects are located prior to filing their MPR pre-application to ensure Rural Development concurs with the applicant’s market area estimation. If either the Agency or the owner chooses to remove one or more projects from the proposal, this may be done without affecting the eligibility of the complex transaction. To be a complex transaction, the Agency assumes only one project remains at the MPR closing. • Portfolio transactions: These include 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. A stay-in-owner is defined as an existing Section 515 or Sections 514/ 516 borrower who owns two or more properties either as a single ownership entity or as separate legal entities with at least one common general partner/ managing member. Each project included in the portfolio will be submitted on a separate pre-application form unless some projects are located in the same market area, as defined above, and are being consolidated. Any projects in the portfolio proposed to be consolidated should be listed on the same pre-application form. Each preapplication 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, the Agency assumes there will be two or more projects. The projects of the stay-in owner or common purchaser must have at least one general partner/managing member in common. PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 45935 Transactions within each category may utilize any or all MPR funding tools described above in paragraph I, ‘‘Funding Opportunity Description.’’ MPR tools available through the MPR demonstration program will be used to address preservation and rehabilitation needs identified in the Agency accepted CNA. Liens against the project, with the exception of Agency deferred debt, cannot exceed the Agency-approved security 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 the Agency’s security value. Payment of any deferred debt will not be required from normal project operations income. Payment of any deferred debt will be required from excess cash generated from project operations after all other secured debts are satisfied or as directed by the Agency. Maturing Mortgage Applications The Agency recognizes that a number of Section 515 and Sections 514/516 properties are financed through mortgages scheduled to mature through calendar year 2018. The Agency will make an MPR debt deferral available to properties with all Agency mortgages maturing on or before December 31, 2018, in order to extend the affordable use of the housing and continue its eligibility for Section 521 Rental Assistance. Notwithstanding any other provisions of this Notice, applicants applying for a deferral of their eligible mortgage debt will be required to meet the eligibility requirements in either 7 CFR 3560.55 or 3560.555, as determined applicable by the Agency. Applicants applying solely for deferral of eligible maturing mortgages will only be required to submit the MPR preapplication within the established deadlines set out in the DATES section of this Notice; no additional supporting documentation is required. The applicant will complete the MPR pre-application documenting the date the Agency loans will mature. The Agency reserves the right to approve an MPR debt deferral under this paragraph in its sole discretion, based on factors including but not limited to: The preceding 12-month average physical vacancy; analysis of current ownership; evidence the property is financially solvent; the current physical condition of the property; amount of assistance needed to meet immediate and long term physical needs of the property; and E:\FR\FM\03AUN1.SGM 03AUN1 45936 Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Notices the availability of other subsidized housing within the community. If other MPR tools are needed, in addition to debt deferral, the Agency will require selected applicants to submit an approved Capital Needs Assessment to provide a fair and objective review of the property’s projected physical needs. mstockstill on DSK4VPTVN1PROD with NOTICES II. Award Information All Agency funding of preapplications selected under this Notice will carry over to the next fiscal year and be considered for funding. However, pre-applications selected under this Notice must be approved by the Agency no later than December 31, 2017. Any pre-applications selected under this Notice, not approved by the Agency prior to December 31, 2017, will be considered automatically withdrawn. Applicants may reapply for funding under future Notices. Applicants are alerted the Agency has unfunded applications carried over from prior Notices that will receive priority consideration for funding approval in FY 2015 based on the terms of those Notices. If fiscal year funds available for the MPR demonstration program are fully committed before all eligible preapplications selected for further processing under this Notice are funded, the Agency may suspend further processing of the pre-applications at that time. MPR funding 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 113–235 and any future appropriations for the preservation and revitalization of Sections 514/516 and Section 515financed projects. In the event that any provisions of 7 CFR part 3560 conflict with this Notice, the provisions of this Notice will take precedence. III. Eligibility Information A. Applicants (and the principals associated with each applicant) must meet the following requirements: 1. All applicants must meet the eligibility requirements included in 7 CFR 3560.55 or 3560.555, as determined appropriate by the Agency. This Notice requires selected applicants to make the required equity contribution as outlined in 3560.63(c) for any new Section 515 loan offered as part of the MPR. Funds committed under Section I may be used to fund all or a portion of the required equity contribution. Loan applicants will not be given consideration for any increased equity value the property may have since the initial loan was made. Eligibility also includes the continued VerDate Sep<11>2014 18:35 Jul 31, 2015 Jkt 235001 ability of the borrower/applicant to provide acceptable management and will include an evaluation of any current outstanding deficiencies. Any outstanding violations or extended open findings as defined in Section V, and recorded in the Agency’s automated Multi-Family Information System (MFIS), will preclude further processing of any MPR applications associated with the applicant/borrower as well as any affiliated entity having a 10 percent or more ownership interest unless there is a current, approved workout plan in place and the plan has been satisfactorily followed for a minimum of 6 consecutive months, as determined by the Agency. 2. For Section 515 RRH projects, the average physical vacancy rate for the 12 months preceding this Notice’s publication date can be no more than 10 percent for projects consisting of 16 or more revenue units and no more than 15 percent for projects less than 16 revenue units unless an exception applies under section VI paragraph (1) of this Notice. If a project consolidation is involved, the consolidation will remain eligible so long as the average vacancy rate for each individual project meets the occupancy standard noted in this paragraph. Projects that do not meet the occupancy threshold at the time of filing the application, regardless of reason, may be withdrawn by the owner or the Agency without jeopardizing the application. 3. For Sections 514/516 FLH projects, rather than an average physical vacancy rate as noted in section (ii) above, a positive cash flow for the previous full 3 years of operation is required unless an exception applies as described section III(A)(2), above. 4. Ownership of and ability to operate the project after the transaction is completed. In the event of a transfer, the proposed transferee must submit evidence of site control. Evidence may include a Purchase Agreement, Letter of Intent, or other documentation acceptable to the Agency. 5. An Agency approved CNA (for guidance refer to https:// www.rd.usda.gov/programs-services/ housing-preservation-revitalizationdemonstration-loans-grants) and an Agency financial evaluation must be conducted to ensure that utilization of the restructuring tools of the MPR demonstration 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 preapplication filing deadline. The Agency reserves the right to discontinue processing any application due to PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 material changes in the applicant’s status occurring at any time after the initial eligibility determination. 6. 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. 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 170. 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. Application and Submission Information A. The general steps of the MPR application process are as follows: 1. Pre-application: Applicants submit a pre-application described in Section IV below along with any supporting documentation as outlined in the Notice. Failure to timely submit all required documentation will result in an incomplete pre-application. This preapplication 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 VI, the Agency will conduct an additional eligibility screening later in the application process. 3. Scoring and Ranking: All complete, eligible and timely-filed preapplications will be scored, ranked and put in potential funding categories as discussed in Sections VI and VII below. 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 III of this Notice, the Agency will require the owner to provide a CNA, completed in accordance with the E:\FR\FM\03AUN1.SGM 03AUN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Notices Agency’s published guidance (available at https://www.rd.usda.gov/programsservices/housing-preservationrevitalization-demonstration-loansgrants) to underwrite the proposal to determine financial feasibility. Applicants will be informed of any proposals that are determined to be incomplete, ineligible or financially infeasible. 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: The Agency will use the results of the CNA to help identify the need for resources and applicant provided information regarding anticipated or available thirdparty financing, in order to determine the financial feasibility of each potential transaction, using restructuring tools available either through existing regulatory authorities or specifically authorized through the MPR 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, as determined by the Agency. If the transaction is determined financially feasible by the Agency, the borrower will be offered a restructuring proposal, subject to available funding. This will include a requirement that the borrower execute, for recordation, an Agency-approved Restrictive-Use Covenant (RUC) for a period of 20 years, the remaining term of any loans, or the remaining term of any existing RUPs, whichever ends later. The restructuring proposal will be established in the MPRCC. 6. MPR Agreements: If the offer is accepted by the applicant, the applicant must sign and return the MPRCC. By signing the offer, the applicant agrees to the terms of the MPRCC. Any thirdparty lender will be required to subordinate to the Agency’s RUC unless the Agency determines, on a case-bycase basis, that the lender’s refusal to subordinate will not compromise the purpose of the MPR demonstration program. 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 VerDate Sep<11>2014 18:35 Jul 31, 2015 Jkt 235001 construction standards and the development standards contained in 7 CFR part 1924, subparts A and C, respectively. Once constructed or rehabbed, Section 515 MFH and Sections 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. B. The application submission and scoring process will be completed in two phases in order to avoid unnecessary effort and expense on the part of applicants, are as follows: 1. Phase I—The first phase is the preapplication process. Applicants must submit a complete pre-application by the deadline listed under the DATES section of this Notice. The applicant’s submission will be classified as ‘‘complete’’ when the MPR preapplication is received in the correct format and place as described in this Notice for each existing property the applicant wishes to be considered in the demonstration program. 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 order for the preapplication 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 preapplication to be considered complete, when applicable, includes: (a) For all transfers of ownership, evidence of site control must be provided. (b) Current market data (defined as no more than 6 months old at time of filing) for any project not meeting the occupancy standards cited in sections III(2) and III(3) above. The market data must demonstrate there is need for the project evidenced by waiting lists and a housing shortage confirmed by local housing agencies and realtors and accepted by the Agency. The market data 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 PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 45937 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 data is not an eligible program project expense. (c) For a property that has been sold to a non-profit entity under the Sale to Non-Profit process defined in 3560, Subpart N, a copy of the recorded Deed. Unless an exception under this section applies, the requirements stated in Section III, paragraphs (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 evidence of site control for transfer proposals or current market data 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. 2. 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 a Simple, Complex, or Portfolio transaction based on the information submitted on the pre-application, in accordance with the category descriptions provided in Section I of this Notice. 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 pre-application as discussed under section VI. For all hard copy pre-applications received, the recorded receipt time will be the close of business time for the day received, for the location to which the preapplications are sent. Assistance for filing electronic and hard copy preapplications can be obtained from any Rural Development State Office. USDA Rural Development MFH State Office contacts can be found at https:// teamrd.usda.gov/rd/emp_services/ directory/states/Combined.doc (Note: Telephone numbers listed in the Web site are not toll-free.) E:\FR\FM\03AUN1.SGM 03AUN1 45938 Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES The pre-application is in 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 preapplication being sent to the MPR Web site mail box for consideration. If a purchase agreement or market data is required, these additional documents are to be attached to the resulting email prior to submission. Pre-applications may be downloaded from the Agency’s Web site at https:// www.rd.usda.gov/programs-services/ housing-preservation-revitalizationdemonstration-loans-grants 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 Dean Greenwalt or Abby Boggs, Finance and Loan Analyst, MultiFamily Housing Preservation and Direct Loan Division, STOP 0782, (Room 1263–S), U.S. Department of Agriculture, Rural Development, 1400 Independence Avenue SW., Washington, DC 20250–0782. V. Application Review Information A. Pre-application ranking points will be based on information provided during the submission process, and in Agency records. Only timely, complete pre-applications requesting debt deferral of eligible Section 514 or Section 515 loans plus other MPR funding tools will be ranked. Points will be awarded as follows: 1. Contribution of other sources of funds. Other funds are those discussed in Section I.B, ‘‘Other Sources of Funds’’ paragraph, items (a) through (f), above. Points will be awarded based on documented written evidence that the funds are committed, as determined by the Agency. ‘‘Commitment’’ means an actual award of funds, or another contractual agreement between a thirdparty funder and the borrower/applicant entity to provide funds.] Commitments that include the terms such as ‘may’ or ‘intend’ will not be acceptable for scoring purposes. The maximum points awarded for this criterion is 25 points. These points will be awarded in the following manner: (a) Evidence of a commitment of at least $3,000 to $5,000 per unit per project from other sources—15 points, or (b) Evidence of a commitment greater than $5,000 per unit per project from other sources—25 points. 2. Owner contribution. Points will be awarded if the owner agrees to make a contribution of at least $10,000 per project to pay transaction costs. (These VerDate Sep<11>2014 18:35 Jul 31, 2015 Jkt 235001 funds cannot be from the project’s reserve, operating funds, tax credit equity or be in the form of donated services provided by the applicant.) 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. This contribution must be deposited into the respective project reserve account prior to closing the MPR transaction from the owner’s nonproject resources. 20 points 3. 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 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 supervised/construction account, as directed by Rural Development, prior to closing. An increased RTO may be allowed for funds committed in accordance with 7 CFR 3560.406(d)(14)(ii). 10 points 4. Maturing Mortgages. Points will be awarded to properties where all existing RD loans will mature (make their final loan payment) on or before December 31, 2018. 10 Points. 5. Persistent poverty counties. Points will be awarded to projects located in persistent poverty counties. A persistent poverty county is a classification for counties in the United States that have had a relatively high rate of poverty over a long period. The USDA’s Economic Research Service (ERS) (https:// ers.usda.gov/) is the main source of economic information and research for USDA and a principal agency of the U.S. Federal Statistical System located in Washington, DC. ERS has defined counties as being persistently poor if 20 percent or more of their populations were living in poverty over the last 30 years (measured by the 1980, 1990, and 2000 decennial censuses and 2006–2010 American Community Survey 5-year estimates). 10 points 6. Points may be awarded to projects that have been adversely impacted by an event that, as determined by the Agency, directly and exclusively results PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 from the occurrence of natural causes that could not have been prevented by the exercise of foresight or caution over the previous 24 months, or other unavoidable accident causing physical property damage or failure that is not reimbursable by property, casualty or liability insurance any other form of third-party compensation, such as disaster loans and grants from other agencies. 25 points 7. Age of project. For a project consolidation (including portfolio transactions) proposal, the project with the earliest operational date (operational date is the date the project initially placed in service and documented in 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 generally directly related to physical needs, a maximum of 30 points will be awarded based on the following criteria: (a) Projects with initial operational dates prior to December 21, 1979—30 points. (b) Projects with initial operational dates on or after December 21, 1979, but before December 15, 1989—20 points. (c) Projects with initial operational dates on or after December 15, 1989, but before October 1, 1991—10 points. (d) Projects with initial operational dates on or after October 1, 1991—0 points; 8. Projects with Open Physical Findings. An ‘‘Open Physical Finding’’ is a condition at the property, identified by the Agency that is not in compliance with the Agency standards published in 7 CFR 3560.103. Projects with Open Physical Findings classified ‘‘B’’, ‘‘C,’’ or ‘‘D’’, as defined below, will be awarded points in the following manner: Class ‘‘D’’ Projects Class ‘‘D’’ projects are those projects that 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 nonmonetary. Projects in default are those where the Agency has notified the borrower of a violation using the Agency’s servicing letter process, and the borrower has not addressed the violation to the Agency’s satisfaction. Class ‘‘C’’ Projects Class ‘‘C’’ projects are projects with Open Physical or Financial findings or violations, which are not associated to an approved workout and/or transition plan. This can include projects with violations where a servicing letter has been issued but 60 calendar days have E:\FR\FM\03AUN1.SGM 03AUN1 Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Notices not passed since the issuance of the first servicing letter. mstockstill on DSK4VPTVN1PROD with NOTICES Class ‘‘B’’ Projects Class ‘‘B’’ projects indicate the Agency has taken servicing steps and the borrower is cooperating to resolve identified findings or violations by associating an approved workout plan and/or transition plan. For transfer proposals: (a) For projects classified a ‘‘C’’ or ‘‘D’’ for 24 months or more. 20 points (b) For projects classified as a ‘‘C’’ or ‘‘D’’ for less than 24 months. 15 points Stay-in owner proposals: (a) For projects classified as a ‘‘B’’ as a result of a workout and/or transition plan approved by the Agency prior to April 1, 2015. 25 points. (b) Projects with an Agency ‘‘C’’ classification for 24 months or longer with Open Findings at the time the MPR pre- application is filed, will not be eligible to participate in the MPR demonstration program. 1. Closed Sale of Section 515 projects to non-profit/Public Housing Authority. The Agency will award 20 points for projects that have been sold to nonprofit 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 filed deed with their pre-application. 20 points. 2. Prior approved Capital Needs Assessments (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 date the CNA or an updated CNA was approved by the Agency. CNAs or updates before October 1, 2013, may not be used for MPR underwriting without an update approved by the Agency. Points will be awarded for: (a) CNAs approved on or after October 1, 2014, but prior to the publication of this Notice 20 points (b) CNAs approved on or after October 1, 2013, but prior to October 1, 2014, 10 points 2. Tenant service provision. The Agency will award 5 points for applications that include new services provided by either a for-profit or a nonprofit 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, afterschool day care services or after-school tutoring. 5 points. VerDate Sep<11>2014 18:35 Jul 31, 2015 Jkt 235001 3. For portfolio sales and project consolidations, the Agency will award the following points: (a) Proposal does not involve a consolidation of properties 0 points; (b) Proposal involves a consolidation of 2–4 properties 5 points; (c) Proposal involves a consolidation of 5 or more properties 10 points. 4. 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. (a) 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. (1) Participation in the Green Communities program by the Enterprise Community Partners, https:// www.enterprisecommunity.com/ solutions-and-innovation/enterprisegreen-communities, 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 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 in paragraph 2 below. All checklists must be accompanied by a signed affidavit by the project architect or engineer stating that the goals are achievable. (2) 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: Documentation may include a signed statement agreeing to replace the items, when needed, with Energy Star rated items. (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 PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 45939 (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 2012. 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 EPA Water Sense label. 1 point (x) This proposal included 100 percent energy-efficient lighting including, but not limited to, Energy Star qualified fixtures, compact fluorescent replacement bulbs in standard incandescent fixtures and Energy Star ceiling fans. 1 point AND (3) 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 5. Energy Generation (Maximum 5 Points) Pre-applications which participate in the Green Communities program by the Enterprise Community Partners, or receive at least 20 points for Energy Conservation measures, are eligible to earn additional points for installation of on-site renewable energy sources. Renewable, on-site energy generation E:\FR\FM\03AUN1.SGM 03AUN1 45940 Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES will complement a weather-tight, wellinsulated 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 that 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 20 percent commitment to energy generation receives 1 point; (c) 21 to 40 percent commitment to energy generation receives 2 points; (d) 41 to 60 percent commitment to energy generation receives 3 points; (e) 61 to 80 percent commitment to energy generation receives 4 points; (f) 81 to 100 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. 6. 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 VerDate Sep<11>2014 18:35 Jul 31, 2015 Jkt 235001 Management Association, the Institute for Real Estate Management, or the U.S. Green Building Council’s Leadership in Energy and Environmental Design for Operations and Maintenance (LEED OM). 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 and rank each pre-application according to total score. If point totals are equal, the earliest time and date the preapplication 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 section V A 7. B. Confirmation of Eligibility For pre-applications submitted under Round 1 of this Notice requesting debt deferral only of the eligible Section 515 or Section 514 loans, the Agency will conduct eligibility determinations on an ongoing basis, and eligible applicants will be authorized to proceed, subject to the availability of appropriated funds under the MPR program. For pre-applications submitted under Round 2 of this Notice, Eligibility will be confirmed after ranking is completed on the highest-scoring pre-applications in each State. If one or more of the 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.), then the next highest-scoring preapplication will be confirmed for eligibility. If one or more of the highest ranking pre-applications is a portfolio transaction, eligibility determinations will be conducted on each preapplication associated with the portfolio. Should any of the preapplications associated with the portfolio be determined ineligible, those ineligible pre-application(s) will be rejected, but the overall eligibility of the portfolio will not be affected as long as the requirements in Section I and other provisions of this Notice are met, as determined by the Agency. If one or more of the 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 (ii), that project(s) will be determined ineligible and eliminated from the proposed consolidation transaction. PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 VI. Award Administration Information A. Selection of Pre-Applications for Further Processing For pre-applications submitted under this Notice and requesting debt deferral only, the Agency will complete the eligibility confirmations on an ongoing basis and authorize those applicants determined eligible to proceed, subject to the availability of appropriated funds under the MPR program For pre-applications submitted under this Notice, the Agency will conduct a four-step process, described below, 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. No State will be authorized to accept more than ten (10) pre-applications for submission of formal applications. If an insufficient number of pre-applications is received to use available funds, the Agency, at its sole discretion, may exceed the maximum pre-application cap per State. All MPR funding tools are available to be used on both Sections 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 by State. STEP TWO: Portfolio transactions will be limited to 3 per State (either RRH or FLH) and will count as 3 MPR transactions. 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 2 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 10 (RRH or FLH) preapplications for MPR transactions is reached. If there are insufficient funds for all projects selected under any step, the Agency may suspend further selections. This demonstration project is subject to the availability of funds. Any selected eligible applications from this Notice or prior NOFAs will be carried over to the next fiscal year for consideration. Any such unfunded pre-applications not approved by the Agency prior to December 31, 2017, will automatically be considered withdrawn by the Agency. Applicants, however, may E:\FR\FM\03AUN1.SGM 03AUN1 Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES reapply for funding under future Notices. B. Pre-Application Selection 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.’’ Applications (SF 424s) can be obtained and completed online. An electronic version of this form may be found at: https://www.epa.gov/ogd/AppKit/ index.htm. 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 VIII of this Notice, below, for a link to all Rural Development State Offices. 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 that their pre-applications were not selected and advised of their 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 preapplication, regardless of transaction type, will be selected. Awards made under this Notice are subject to the provisions contained in the Agriculture, Consolidated and Further Continuing Appropriations Act, 2015, Public Law 113–235, Division E, Title 1, sections 744 and 745, regarding corporate felony convictions and corporate federal tax delinquencies. In accordance with those provisions, only selected applicants that are or propose to be corporations need submit the following form as part of their MPR application; such applicants must submit an executed form AD–3030, which can be found online at: https:// www.ocio.usda.gov/document/ad3030. 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 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 VerDate Sep<11>2014 19:55 Jul 31, 2015 Jkt 235001 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. 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: (a) 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. (b) 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.rd.usda.gov/ programs-services/housingpreservation-revitalizationdemonstration-loans-grants 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. (c) 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 MPR funding tools that will minimize the cost to the Government consistent with the purposes of this Notice. C. 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 six months of the obligation of MPR tools unless extended in writing by the Agency. VII. Non-Discrimination Statement The U.S. Department of Agriculture (USDA) is an equal opportunity provider, employer, and lender. All borrowers and applicants will comply with the provisions of 7 CFR 3560.2. All housing must meet the accessibility requirements found at 7 CFR 3560.60(d). PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 45941 All MPR participants must submit or have on file a valid Form RD 400–1, ‘‘Equal Opportunity Agreement’’ and Form RD 400–4, ‘‘Assurance Agreement.’’ The U.S. Department of Agriculture prohibits discrimination against its customers, employees, and applicants for employment on the basis of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, all or part of an individual’s income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.) If you wish to file an employment complaint, you must contact your Agency’s EEO Counselor within 45 days of the date of the alleged discriminatory act, event, or in the case of a personnel action. Additional information can be found online at: https:// www.ascr.usda.gov/complaint_filing_ file.html. If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form (PDF), found online at: https:// www.ascr.usda.gov/complaint_filing_ cust.html, any USDA office, or call (866) 632–9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue SW., Washington, DC 20250– 9410, by fax (202) 720–7442 or email at: program.intake@usda.gov. Individuals who are deaf, hard of hearing or have speech disabilities and you wish to file either an EEO or program complaint please contact USDA through the Federal Relay Service at (800) 877–8339 or (800) 845– 6136 (in Spanish). Persons with disabilities, who wish to file a program complaint, please see information above on how to contact us by mail directly or by email. If you require alternative means of communication for program information (e.g., Braille, large print, audiotape, etc.) please contact USDA’s TARGET Center at (202) 720–2600 (voice and TDD). VIII. Award Agency Contacts USDA Rural Development MFH State Office contacts can be found at https:// teamrd.usda.gov/rd/emp_services/ E:\FR\FM\03AUN1.SGM 03AUN1 45942 Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Notices directory/states/Combined.doc. (Note: Telephone numbers listed are not tollfree.) Appropriation Act funding will be posted on the Rural Development Web site. 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: July 28, 2015. Tony Hernandez, Administrator, Rural Housing Service. BILLING CODE 3410–XV–P ARCTIC RESEARCH COMMISSION 104th Commission Meeting mstockstill on DSK4VPTVN1PROD with NOTICES Notice is hereby given that the U.S. Arctic Research Commission will hold its 104th meeting in Anchorage and Nome, Alaska, on August 24–26, 2015. The business sessions, open to the public, will convene at 9 a.m. in Anchorage and 8:30 a.m. in Nome. The Agenda items include: (1) Call to order and approval of the agenda (2) Approval of the minutes from the 103rd meeting (3) Commissioners and staff reports (4) Discussion and presentations concerning Arctic research activities The focus of the meeting will include reports and updates on programs and research projects affecting Alaska and the greater Arctic. If you plan to attend this meeting, please notify us via the contact information below. Any person planning to attend who requires special accessibility features and/or auxiliary aids, such as sign language interpreters, must inform the Commission of those needs in advance of the meeting. Contact person for further information: John Farrell, Executive Director, U.S. Arctic Research Commission, 703–525–0111 or TDD 703–306–0090. [FR Doc. 2015–18897 Filed 7–31–15; 8:45 am] BILLING CODE 7555–01–P VerDate Sep<11>2014 19:55 Jul 31, 2015 Jkt 235001 National Telecommunications and Information Administration First Responder Network Authority First Responder Network Authority Board Meeting First Responder Network Authority (FirstNet), National Telecommunications and Information Administration, Commerce. ACTION: Public meeting notice. AGENCY: The Board of the First Responder Network Authority (FirstNet) will hold a Special Meeting via telephone conference (teleconference) on August 17, 2015. DATES: The Special Meeting of the FirstNet Board will be held on August 17, 2015, from 10 a.m. to 12 p.m. Eastern Daylight Time. ADDRESSES: The Special Meeting of the Board will be conducted via teleconference. Members of the public may listen to the meeting by dialing tollfree 1–888–997–9859 and using passcode 3572169. Due to the limited number of ports, attendance via teleconference will be on a first-come, first-served basis. FOR FURTHER INFORMATION CONTACT: Uzoma Onyeije, Secretary, FirstNet, 12201 Sunrise Valley Drive, M/S 243, Reston, VA 20192; telephone: (703) 648–4165; email: uzoma.onyeije@ firstnet.gov. Please direct media inquiries to Ryan Oremland at (703) 648–4114. SUPPLEMENTARY INFORMATION: Background: The Middle Class Tax Relief and Job Creation Act of 2012 (Act), Public Law 112–96, 126 Stat. 156 (2012), created FirstNet as an independent authority within the National Telecommunications and Information Administration (NTIA). The Act directs FirstNet to ensure the establishment of a single nationwide, interoperable public safety broadband network. The FirstNet Board is responsible for making strategic decisions regarding FirstNet’s operations. As provided in section 4.08 of the FirstNet Bylaws, the Board through this Notice provides at least two days notice of a Special Meeting of the Board to be held August 17, 2015, from 10 a.m. to 12 p.m. Eastern Daylight Time. The Board may, by a majority vote, close a portion of the Special Meeting as necessary to preserve the confidentiality of commercial or financial information that is proprietary or confidential, to discuss personnel matters, or to discuss legal matters SUMMARY: [FR Doc. 2015–18990 Filed 7–31–15; 8:45 am] Kathy Farrow, Communications Specialist. DEPARTMENT OF COMMERCE PO 00000 Frm 00011 Fmt 4703 Sfmt 9990 affecting FirstNet, including pending or potential litigation. See 47 U.S.C. 1424(e)(2). Matters to be Considered: FirstNet will post a detailed agenda for the Special Meeting on its Web site, https:// www.firstnet.gov, prior to the meeting. The agenda topics are subject to change. Time and Date of Meeting: The open public meeting of the full FirstNet Board will be held via teleconference on August 17, 2015, between 10 a.m. and 12 p.m. Eastern Daylight Time. The times and dates are subject to change. Please refer to FirstNet’s Web site at www.firstnet.gov for the most up-to-date information. Other Information: The teleconference for the Special Meeting is open to the public. On the date and time of the Special Meeting, members of the public may call toll-free 1–888–997–9859 and use passcode 3572169 to listen to the meeting. To view the slide presentation, the public may visit https:// www.mymeetings.com/nc/join and enter Conference number: 276507910 and audience passcode: Board. As an alternative, members of the public may view the slide presentations by visiting: https://www.mymeetings.com/nc/ join.php?sigKey=mymeetings& i=276507910&p=Board&t=c. If you experience technical difficulty, please contact Eli Veenendaal by telephone at (703) 648–4167 or via email at elijah.veenendaal@firstnet.gov. Public access will be limited to listen-only. Due to the limited number of ports, attendance via teleconference will be on a first-come, first-served basis. The Special Meeting is accessible to people with disabilities. Individuals requiring accommodations are asked to notify Mr. Onyeije, by telephone at (703) 648–4165 or email at uzoma.onyeije@firstnet.gov, at least two (2) business days before the meeting. Records: FirstNet maintains records of all Board proceedings. Minutes of the meetings will be available at www.firstnet.gov. Dated: July 29, 2015. Eli Veenendaal, Attorney Advisor, First Responder Network Authority. [FR Doc. 2015–19006 Filed 7–31–15; 8:45 am] BILLING CODE 3510–TL–P E:\FR\FM\03AUN1.SGM 03AUN1

Agencies

[Federal Register Volume 80, Number 148 (Monday, August 3, 2015)]
[Notices]
[Pages 45933-45942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18990]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Solicitation of Applications (NOSA) for the Multifamily 
Preservation and Revitalization (MPR) Demonstration Program Under 
Section 514, Section 515, and Section 516 for Fiscal Year 2015

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Housing Service (Agency) announces the timeframe to 
submit applications to participate in a demonstration program to 
preserve and revitalize existing Rural Rental Housing (RRH) projects 
under Section 514, Section 515, and Section 516 of the Housing Act of 
1949, as amended. Under this demonstration program, existing Section 
515 Multi-Family Housing (MFH) loans and Sections 514/516 Off-Farm 
Labor Housing (FLH) loans will be restructured to ensure 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) will be made available under this program.

DATES: For Fiscal Year 2015, the Agency will facilitate use of the 
Fiscal Year 2015 Multifamily Preservation and Revitalization (MPR) 
funding tools by holding a competitive application round for MPR 
applications requesting other MPR funding tools, in addition to the 
available MPR deferral assistance, and by adding a continuous open 
application process for any transfer applications that request only the 
MPR loan deferral assistance. Application deadlines for these 
opportunities are:
    (1) For MPR applications requesting debt deferral of eligible 
Section 514 or Section 515 loans, plus other MPR funding tools, 
complete applications must be received no later than 5:00 p.m. Eastern 
Time,120 calendar days after August 3, 2015, and
    (2) For any MPR applications requesting debt deferral only for 
eligible Section 514 or Section 515 loans, complete applications may be 
submitted on an ongoing basis through COB 5:00 p.m. Eastern Time, 
December 31, 2015.
    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. Applicant's intending to mail

[[Page 45934]]

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: Dean Greenwalt, 
dean.greenwalt@wdc.usda.gov, (314) 457-5933, and/or Abby Boggs 
abby.boggs@wdc.usda.gov, (615) 783 1382, Finance and Loan Analyst, 
Multi-Family Housing Preservation and Direct Loan Division, STOP 0782, 
(Room 1263-S) U.S. Department of Agriculture, Rural Development, 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 these telephone numbers are not a toll-free 
numbers.)

SUPPLEMENTARY INFORMATION: This Fiscal Year (FY) 2015 funding for the 
MPR demonstration program will be posted on the Rural Development Web 
site, www.rd.usda.gov/newsroom/notices-solicitation-applications-nosas. 
The commitment of program dollars will be made to applicants of 
selected applications that have fulfilled the necessary requirements 
for obligation, to the extent an appropriation act provides funding for 
the MPR demonstration program.
    Expenses incurred in applying for this Notice will be borne by and 
be at the applicant's risk.
    Of particular note this year, the Rural Housing Service (the 
Agency) will assign additional points to pre-applications for projects 
based in or serving census tracts with poverty rates greater than or 
equal to 20 percent. This emphasis will support Rural Development's 
(RD) mission of improving the quality of life for Rural Americans and 
commitment to directing resources to those most in need.
    A synopsis of this program and the pre-application's universal 
resource locator will be listed by Catalog of Federal Domestic 
Assistance Number or at Federal Grants Wire at https://www.federalgrantswire.com.

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

    Federal Agency Name: Rural Housing Service, USDA.
    Funding Opportunity Title: Multifamily Preservation and 
Revitalization Demonstration Program--Section 514, Section 515, and 
Section 516 for Fiscal Year 2015.
    Announcement Type: Inviting responses in the form of pre-
applications from interested applicants.
    Catalog of Federal Domestic Assistance Number (CFDA): 10.447.

I. Funding Opportunity Description

    The Consolidated and Further Continuing Appropriations Act, 2015, 
Public Law 113-235, signed December 16, 2014, authorized the Agency to 
conduct a demonstration program for the preservation and revitalization 
of the Section 515 MFH portfolio and Sections 514/516 Off-FLH 
portfolio. Section 514, Section 515 and Section 516 MFH programs are 
authorized by the Housing Act of 1949, as amended (42 U.S.C. 1484, 1485 
and 1486) and provide Rural Development with the authority to provide 
financial assistance for low- income MFH and FLH and related 
facilities, as described in 7 CFR part 3560.
    This Notice solicits pre-applications from interested borrowers/
applicants to restructure existing MFH projects already participating 
in the Agency's Section 515 MFH portfolio and Sections 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 MPR 
demonstration program shall be referred to in this Notice as the 
Multifamily Preservation and Revitalization demonstration program. 
Agency regulations for the Section 515 MFH program and the Sections 
514/516 FLH program are published at 7 CFR part 3560.
    The intent of the MPR demonstration program is to ensure that 
existing rental projects will continue to deliver decent, safe and 
sanitary affordable rental housing for 20 years, the remaining term of 
any Agency loan, or the remaining term of any existing Restrictive-Use 
Provisions (RUP) or prohibition, whichever ends later.

    Note: All pre-applications will be selected by the Agency using 
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 their 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 any 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 MPR tools to be used in this program is debt deferral 
for up to 20 years of the existing Section 514 or Section 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, support 
new debt or to reduce rents, as determined by the Agency.
    A. Debt deferral is described as follows:
    1. MPR Debt Deferral. A deferral of the existing Section 514 or 
Section 515 Agency loan(s), obligated prior to October 1, 1991, for 20 
years. If the term of any existing Section 514 or Section 515 loans is 
less than 20 years, the Agency will offer a re-amortization of the 
existing loans extending the term to a minimum of 20 years. Section 514 
or Section 515 loans obligated prior to October 1, 1991, and 
subsequently transferred on new rates and terms may not be eligible for 
deferral. Any questions on whether or not a loan is eligible for 
deferral should be directed to the local RD State Office at: https://teamrd.usda.gov/rd/emp_services/directory/states/Combined.doc. 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, if applicable, the subsidy will be 
applied as set out in the Agency's ``Multiple Family Housing Interest 
Credit Agreement'' Form RD 3560-9, which is available at https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-9.PDF.
    B. Other Agency MPR funding 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 of a project identified by a CNA accepted by the 
Agency. The grant administration will be in accordance with applicable 
provisions of 2 CFR parts 200 and 400.
    2. MPR Zero Percent Loan. A loan at zero percent interest. The 
loan's maximum term and amortization will be as authorized by the 
respective program authority.
    (a) For Section 515 RRH projects, the maximum loan term is 30 years 
amortized over a maximum term of 50 years.

[[Page 45935]]

    (b) For Sections 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.
    MPR funds cannot be used to build community rooms, add additional 
parking areas, 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 (a) through (f) can be used either 
for such revitalization and/or improvements:

4. Other Sources of Funds

    (a) Rural Development Section 515 Rehabilitation loan funds;
    (b) Rural Development Sections 514/516 Off-Farm rehabilitation 
loan/grant funds;
    (c) Rural Development Section 538 Guaranteed Rural Rental Housing 
(GRRH) program financing;
    (d) Rural Development Multi-Family Housing Preservation Revolving 
Loan Funds program;
    (e) Third-party loans, grants, tax credits and tax-exempt 
financing; and
    (f) Owner-provided capital contributions in the form of a cash 
infusion. A cash infusion cannot be a loan.
    Transfers, subordinations, and consolidations may be approved as 
part of an MPR transaction in accordance with 7 CFR part 3560. If a 
transfer is part of the MPR transaction, and the transfer includes a 
seller payment and/or increase in the allowable Return to Owner (RTO), 
the transfer must first be underwritten to meet the requirements of 7 
CFR 3560.406. The transfer underwriting may assume the deferral of all 
eligible Sections 514/516 or Section 515 loans. After the transfer has 
been underwritten and concurred with by the Agency's Multifamily 
Housing Preservation and Direct Loan Division, the MPR transaction may 
be underwritten.
    For the purposes of the MPR demonstration program, the 
restructuring transactions will be identified by the Agency in three 
categories:
     Simple Transactions: These involve no change in ownership.
     Complex Transactions: These 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. If a consolidation is proposed, all 
projects to be consolidated must be submitted on one pre-application 
and be located in the same market area.
    To be considered in the same market area, projects must be in a 
neighborhood or similar area where the property competes for tenants; 
managed under one management plan and one management agreement; and, in 
sufficiently close proximity to permit convenient and efficient 
management of the property.
    Applicants should discuss proposed consolidations with the Rural 
Development State Office in the State(s) where the projects are located 
prior to filing their MPR pre-application to ensure Rural Development 
concurs with the applicant's market area estimation.
    If either the Agency or the owner chooses to remove one or more 
projects from the proposal, this may be done without affecting the 
eligibility of the complex transaction. To be a complex transaction, 
the Agency assumes only one project remains at the MPR closing.
     Portfolio transactions: These include 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. A 
stay-in-owner is defined as an existing Section 515 or Sections 514/516 
borrower who owns two or more properties either as a single ownership 
entity or as separate legal entities with at least one common general 
partner/managing member. Each project included in the portfolio will be 
submitted on a separate pre-application form unless some projects are 
located in the same market area, as defined above, and are being 
consolidated. Any projects in the portfolio proposed to be consolidated 
should 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, the Agency assumes there will be two or more projects. The 
projects of the stay-in owner or common purchaser must have at least 
one general partner/managing member in common.
    Transactions within each category may utilize any or all MPR 
funding tools described above in paragraph I, ``Funding Opportunity 
Description.'' MPR tools available through the MPR demonstration 
program will be used to address preservation and rehabilitation needs 
identified in the Agency accepted CNA.
    Liens against the project, with the exception of Agency deferred 
debt, cannot exceed the Agency-approved security 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 
the Agency's security value. Payment of any deferred debt will not be 
required from normal project operations income. Payment of any deferred 
debt will be required from excess cash generated from project 
operations after all other secured debts are satisfied or as directed 
by the Agency.
Maturing Mortgage Applications
    The Agency recognizes that a number of Section 515 and Sections 
514/516 properties are financed through mortgages scheduled to mature 
through calendar year 2018. The Agency will make an MPR debt deferral 
available to properties with all Agency mortgages maturing on or before 
December 31, 2018, in order to extend the affordable use of the housing 
and continue its eligibility for Section 521 Rental Assistance. 
Notwithstanding any other provisions of this Notice, applicants 
applying for a deferral of their eligible mortgage debt will be 
required to meet the eligibility requirements in either 7 CFR 3560.55 
or 3560.555, as determined applicable by the Agency. Applicants 
applying solely for deferral of eligible maturing mortgages will only 
be required to submit the MPR pre-application within the established 
deadlines set out in the DATES section of this Notice; no additional 
supporting documentation is required.
    The applicant will complete the MPR pre-application documenting the 
date the Agency loans will mature. The Agency reserves the right to 
approve an MPR debt deferral under this paragraph in its sole 
discretion, based on factors including but not limited to: The 
preceding 12-month average physical vacancy; analysis of current 
ownership; evidence the property is financially solvent; the current 
physical condition of the property; amount of assistance needed to meet 
immediate and long term physical needs of the property; and

[[Page 45936]]

the availability of other subsidized housing within the community.
    If other MPR tools are needed, in addition to debt deferral, the 
Agency will require selected applicants to submit an approved Capital 
Needs Assessment to provide a fair and objective review of the 
property's projected physical needs.

II. Award Information

    All Agency funding of pre-applications selected under this Notice 
will carry over to the next fiscal year and be considered for funding. 
However, pre-applications selected under this Notice must be approved 
by the Agency no later than December 31, 2017. Any pre-applications 
selected under this Notice, not approved by the Agency prior to 
December 31, 2017, will be considered automatically withdrawn. 
Applicants may reapply for funding under future Notices.
    Applicants are alerted the Agency has unfunded applications carried 
over from prior Notices that will receive priority consideration for 
funding approval in FY 2015 based on the terms of those Notices. If 
fiscal year funds available for the MPR demonstration program are fully 
committed before all eligible pre-applications selected for further 
processing under this Notice are funded, the Agency may suspend further 
processing of the pre-applications at that time.
    MPR funding 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 113-235 and any future appropriations for the 
preservation and revitalization of Sections 514/516 and Section 515-
financed projects. In the event that any provisions of 7 CFR part 3560 
conflict with this Notice, the provisions of this Notice will take 
precedence.

III. Eligibility Information

    A. Applicants (and the principals associated with each applicant) 
must meet the following requirements:
    1. All applicants must meet the eligibility requirements included 
in 7 CFR 3560.55 or 3560.555, as determined appropriate by the Agency. 
This Notice requires selected applicants to make the required equity 
contribution as outlined in 3560.63(c) for any new Section 515 loan 
offered as part of the MPR. Funds committed under Section I may be used 
to fund all or a portion of the required equity contribution. Loan 
applicants will not be given consideration for any increased equity 
value the property may have since the initial loan was made. 
Eligibility 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 or extended open findings as defined in Section V, and 
recorded in the Agency's automated Multi-Family Information System 
(MFIS), will preclude further processing of any MPR applications 
associated with the applicant/borrower as well as any affiliated entity 
having a 10 percent or more ownership interest unless there is a 
current, approved workout plan in place and the plan has been 
satisfactorily followed for a minimum of 6 consecutive months, as 
determined by the Agency.
    2. For Section 515 RRH projects, the average physical vacancy rate 
for the 12 months preceding this Notice's publication date can be no 
more than 10 percent for projects consisting of 16 or more revenue 
units and no more than 15 percent for projects less than 16 revenue 
units unless an exception applies under section VI paragraph (1) of 
this Notice. If a project consolidation is involved, the consolidation 
will remain eligible so long as the average vacancy rate for each 
individual project meets the occupancy standard noted in this 
paragraph. Projects that do not meet the occupancy threshold at the 
time of filing the application, regardless of reason, may be withdrawn 
by the owner or the Agency without jeopardizing the application.
    3. For Sections 514/516 FLH projects, rather than an average 
physical vacancy rate as noted in section (ii) above, a positive cash 
flow for the previous full 3 years of operation is required unless an 
exception applies as described section III(A)(2), above.
    4. Ownership of and ability to operate the project after the 
transaction is completed. In the event of a transfer, the proposed 
transferee must submit evidence of site control. Evidence may include a 
Purchase Agreement, Letter of Intent, or other documentation acceptable 
to the Agency.
    5. An Agency approved CNA (for guidance refer to https://www.rd.usda.gov/programs-services/housing-preservation-revitalization-demonstration-loans-grants) and an Agency financial evaluation must be 
conducted to ensure that utilization of the restructuring tools of the 
MPR demonstration 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. 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. 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 170. 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. Application and Submission Information

    A. The general steps of the MPR application process are as follows:
    1. Pre-application: Applicants submit a pre-application described 
in Section IV below along with any supporting documentation as outlined 
in the Notice. Failure to timely submit all required documentation will 
result in an incomplete pre-application. 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 VI, the Agency will conduct an additional 
eligibility screening later in the application 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 below.
    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 III of this Notice, the Agency will require the 
owner to provide a CNA, completed in accordance with the

[[Page 45937]]

Agency's published guidance (available at https://www.rd.usda.gov/programs-services/housing-preservation-revitalization-demonstration-loans-grants) to underwrite the proposal to determine financial 
feasibility. Applicants will be informed of any proposals that are 
determined to be incomplete, ineligible or financially infeasible. 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: The Agency will use the results of the 
CNA to help identify the need for resources and applicant provided 
information regarding anticipated or available third-party financing, 
in order to determine the financial feasibility of each potential 
transaction, using restructuring tools available either through 
existing regulatory authorities or specifically authorized through the 
MPR 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, as determined by the Agency. If the transaction is determined 
financially feasible by the Agency, the borrower will be offered a 
restructuring proposal, subject to available funding. This will include 
a requirement that the borrower execute, for recordation, an Agency-
approved Restrictive-Use Covenant (RUC) for a period of 20 years, the 
remaining term of any loans, or the remaining term of any existing 
RUPs, whichever ends later. The restructuring proposal will be 
established in the MPRCC.
    6. MPR Agreements: If the offer is accepted by the applicant, the 
applicant must sign and return the MPRCC. By signing the offer, the 
applicant agrees to the terms of the MPRCC. Any third-party lender will 
be required to subordinate to the Agency's RUC 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 demonstration 
program.
    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 or rehabbed, Section 515 MFH and 
Sections 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.
    B. The application submission and scoring process will be completed 
in two phases in order to avoid unnecessary effort and expense on the 
part of applicants, are as follows:
    1. Phase I--The first phase is the pre-application process. 
Applicants must submit a complete pre-application by the deadline 
listed under the DATES section of this Notice. The applicant's 
submission will be classified as ``complete'' when the MPR pre-
application is received in the correct format and place as described in 
this Notice for each existing property the applicant wishes to be 
considered in the demonstration program. 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 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 to be 
considered complete, when applicable, includes:
    (a) For all transfers of ownership, evidence of site control must 
be provided.
    (b) Current market data (defined as no more than 6 months old at 
time of filing) for any project not meeting the occupancy standards 
cited in sections III(2) and III(3) above. The market data must 
demonstrate there is need for the project evidenced by waiting lists 
and a housing shortage confirmed by local housing agencies and realtors 
and accepted by the Agency. The market data 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 data is not an eligible program project expense.
    (c) For a property that has been sold to a non-profit entity under 
the Sale to Non-Profit process defined in 3560, Subpart N, a copy of 
the recorded Deed.
    Unless an exception under this section applies, the requirements 
stated in Section III, paragraphs (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 evidence of site control 
for transfer proposals or current market data 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.

    2. 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 a Simple, Complex, or Portfolio transaction 
based on the information submitted on the pre-application, in 
accordance with the category descriptions provided in Section I of this 
Notice.
    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 pre-application as discussed under 
section VI. For all hard copy pre-applications received, the recorded 
receipt time will be the close of business time for the day received, 
for the location to which the pre-applications are sent. Assistance for 
filing electronic and hard copy pre-applications can be obtained from 
any Rural Development State Office. USDA Rural Development MFH State 
Office contacts can be found at https://teamrd.usda.gov/rd/emp_services/directory/states/Combined.doc
    (Note: Telephone numbers listed in the Web site are not toll-free.)

[[Page 45938]]

    The pre-application is in 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 data is required, 
these additional documents are to be attached to the resulting email 
prior to submission.
    Pre-applications may be downloaded from the Agency's Web site at 
https://www.rd.usda.gov/programs-services/housing-preservation-revitalization-demonstration-loans-grants 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 
Dean Greenwalt or Abby Boggs, Finance and Loan Analyst, Multi-Family 
Housing Preservation and Direct Loan Division, STOP 0782, (Room 1263-
S), U.S. Department of Agriculture, Rural Development, 1400 
Independence Avenue SW., Washington, DC 20250-0782.

V. Application Review Information

    A. Pre-application ranking points will be based on information 
provided during the submission process, and in Agency records. Only 
timely, complete pre-applications requesting debt deferral of eligible 
Section 514 or Section 515 loans plus other MPR funding tools will be 
ranked. Points will be awarded as follows:
    1. Contribution of other sources of funds. Other funds are those 
discussed in Section I.B, ``Other Sources of Funds'' paragraph, items 
(a) through (f), above. Points will be awarded based on documented 
written evidence that the funds are committed, as determined by the 
Agency. ``Commitment'' means an actual award of funds, or another 
contractual agreement between a third-party funder and the borrower/
applicant entity to provide funds.] Commitments that include the terms 
such as `may' or `intend' will not be acceptable for scoring purposes. 
The maximum points awarded for this criterion is 25 points. These 
points will be awarded in the following manner:
    (a) Evidence of a commitment of at least $3,000 to $5,000 per unit 
per project from other sources--15 points, or
    (b) Evidence of a commitment greater than $5,000 per unit per 
project from other sources--25 points.
    2. Owner contribution. Points will be awarded if the owner agrees 
to make a contribution of at least $10,000 per project to pay 
transaction costs. (These funds cannot be from the project's reserve, 
operating funds, tax credit equity or be in the form of donated 
services provided by the applicant.) 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. This 
contribution must be deposited into the respective project reserve 
account prior to closing the MPR transaction from the owner's non-
project resources. 20 points
    3. 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 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 supervised/construction account, as directed 
by Rural Development, prior to closing. An increased RTO may be allowed 
for funds committed in accordance with 7 CFR 3560.406(d)(14)(ii). 10 
points
    4. Maturing Mortgages. Points will be awarded to properties where 
all existing RD loans will mature (make their final loan payment) on or 
before December 31, 2018. 10 Points.
    5. Persistent poverty counties. Points will be awarded to projects 
located in persistent poverty counties. A persistent poverty county is 
a classification for counties in the United States that have had a 
relatively high rate of poverty over a long period. The USDA's Economic 
Research Service (ERS) (https://ers.usda.gov/) is the main source of 
economic information and research for USDA and a principal agency of 
the U.S. Federal Statistical System located in Washington, DC. ERS has 
defined counties as being persistently poor if 20 percent or more of 
their populations were living in poverty over the last 30 years 
(measured by the 1980, 1990, and 2000 decennial censuses and 2006-2010 
American Community Survey 5-year estimates). 10 points
    6. Points may be awarded to projects that have been adversely 
impacted by an event that, as determined by the Agency, directly and 
exclusively results from the occurrence of natural causes that could 
not have been prevented by the exercise of foresight or caution over 
the previous 24 months, or other unavoidable accident causing physical 
property damage or failure that is not reimbursable by property, 
casualty or liability insurance any other form of third-party 
compensation, such as disaster loans and grants from other agencies. 25 
points
    7. Age of project. For a project consolidation (including portfolio 
transactions) proposal, the project with the earliest operational date 
(operational date is the date the project initially placed in service 
and documented in 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 generally directly related to physical needs, a maximum 
of 30 points will be awarded based on the following criteria:
    (a) Projects with initial operational dates prior to December 21, 
1979--30 points.
    (b) Projects with initial operational dates on or after December 
21, 1979, but before December 15, 1989--20 points.
    (c) Projects with initial operational dates on or after December 
15, 1989, but before October 1, 1991--10 points.
    (d) Projects with initial operational dates on or after October 1, 
1991--0 points;
    8. Projects with Open Physical Findings. An ``Open Physical 
Finding'' is a condition at the property, identified by the Agency that 
is not in compliance with the Agency standards published in 7 CFR 
3560.103. Projects with Open Physical Findings classified ``B'', ``C,'' 
or ``D'', as defined below, will be awarded points in the following 
manner:

Class ``D'' Projects

    Class ``D'' projects are those projects that 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 default are those where the Agency has notified the 
borrower of a violation using the Agency's servicing letter process, 
and the borrower has not addressed the violation to the Agency's 
satisfaction.

Class ``C'' Projects

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

[[Page 45939]]

not passed since the issuance of the first servicing letter.

Class ``B'' Projects

    Class ``B'' projects indicate the Agency has taken servicing steps 
and the borrower is cooperating to resolve identified findings or 
violations by associating an approved workout plan and/or transition 
plan.
    For transfer proposals:
    (a) For projects classified a ``C'' or ``D'' for 24 months or more. 
20 points
    (b) For projects classified as a ``C'' or ``D'' for less than 24 
months. 15 points
    Stay-in owner proposals:
    (a) For projects classified as a ``B'' as a result of a workout 
and/or transition plan approved by the Agency prior to April 1, 2015. 
25 points.
    (b) Projects with an Agency ``C'' classification for 24 months or 
longer with Open Findings at the time the MPR pre- application is 
filed, will not be eligible to participate in the MPR demonstration 
program.
    1. Closed Sale of Section 515 projects to non-profit/Public Housing 
Authority. The Agency will award 20 points for projects that have been 
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 filed deed with their 
pre-application. 20 points.
    2. Prior approved Capital Needs Assessments (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 date the CNA or an updated CNA was 
approved by the Agency. CNAs or updates before October 1, 2013, may not 
be used for MPR underwriting without an update approved by the Agency. 
Points will be awarded for:
    (a) CNAs approved on or after October 1, 2014, but prior to the 
publication of this Notice 20 points
    (b) CNAs approved on or after October 1, 2013, but prior to October 
1, 2014, 10 points
    2. 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. 5 
points.
    3. For portfolio sales and project consolidations, the Agency will 
award the following points:
    (a) Proposal does not involve a consolidation of properties 0 
points;
    (b) Proposal involves a consolidation of 2-4 properties 5 points;
    (c) Proposal involves a consolidation of 5 or more properties 10 
points.
    4. 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.
(a) 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.
    (1) Participation in the Green Communities program by the 
Enterprise Community Partners, https://www.enterprisecommunity.com/solutions-and-innovation/enterprise-green-communities, 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 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 in paragraph 2 below. All checklists must be 
accompanied by a signed affidavit by the project architect or engineer 
stating that the goals are achievable.
    (2) 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: 
Documentation may include a signed statement agreeing to replace the 
items, when needed, with Energy Star rated items.
    (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 2012. 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 EPA 
Water Sense label. 1 point
    (x) This proposal included 100 percent energy-efficient lighting 
including, but not limited to, Energy Star qualified fixtures, compact 
fluorescent replacement bulbs in standard incandescent fixtures and 
Energy Star ceiling fans. 1 point
AND
    (3) 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
5. Energy Generation (Maximum 5 Points)
    Pre-applications which participate in the Green Communities program 
by the Enterprise Community Partners, or receive at least 20 points for 
Energy Conservation measures, are eligible to earn additional points 
for installation of on-site renewable energy sources. Renewable, on-
site energy generation

[[Page 45940]]

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 
that 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 20 percent commitment to energy generation receives 1 
point;
    (c) 21 to 40 percent commitment to energy generation receives 2 
points;
    (d) 41 to 60 percent commitment to energy generation receives 3 
points;
    (e) 61 to 80 percent commitment to energy generation receives 4 
points;
    (f) 81 to 100 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.
6. 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, or the U.S. Green Building 
Council's Leadership in Energy and Environmental Design for Operations 
and Maintenance (LEED OM). 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 
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 section V A 7.

B. Confirmation of Eligibility

    For pre-applications submitted under Round 1 of this Notice 
requesting debt deferral only of the eligible Section 515 or Section 
514 loans, the Agency will conduct eligibility determinations on an 
ongoing basis, and eligible applicants will be authorized to proceed, 
subject to the availability of appropriated funds under the MPR 
program.
    For pre-applications submitted under Round 2 of this Notice, 
Eligibility will be confirmed after ranking is completed on the 
highest-scoring pre-applications in each State. If one or more of the 
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.), then the next 
highest-scoring pre-application will be confirmed for eligibility.
    If one or more of the 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 be determined 
ineligible, those ineligible pre-application(s) will be rejected, but 
the overall eligibility of the portfolio will not be affected as long 
as the requirements in Section I and other provisions of this Notice 
are met, as determined by the Agency.
    If one or more of the 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 (ii), that project(s) will be determined ineligible and eliminated 
from the proposed consolidation transaction.

VI. Award Administration Information

A. Selection of Pre-Applications for Further Processing

    For pre-applications submitted under this Notice and requesting 
debt deferral only, the Agency will complete the eligibility 
confirmations on an ongoing basis and authorize those applicants 
determined eligible to proceed, subject to the availability of 
appropriated funds under the MPR program
    For pre-applications submitted under this Notice, the Agency will 
conduct a four-step process, described below, 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. No 
State will be authorized to accept more than ten (10) pre-applications 
for submission of formal applications. If an insufficient number of 
pre-applications is received to use available funds, the Agency, at its 
sole discretion, may exceed the maximum pre-application cap per State.
    All MPR funding tools are available to be used on both Sections 
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 by State.
    STEP TWO: Portfolio transactions will be limited to 3 per State 
(either RRH or FLH) and will count as 3 MPR transactions. 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 2 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 10 (RRH or FLH) pre-applications for MPR 
transactions is reached.
    If there are insufficient funds for all projects selected under any 
step, the Agency may suspend further selections.
    This demonstration project is subject to the availability of funds. 
Any selected eligible applications from this Notice or prior NOFAs will 
be carried over to the next fiscal year for consideration. Any such 
unfunded pre-applications not approved by the Agency prior to December 
31, 2017, will automatically be considered withdrawn by the Agency. 
Applicants, however, may

[[Page 45941]]

reapply for funding under future Notices.

B. Pre-Application Selection

    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.'' Applications (SF 
424s) can be obtained and completed online. An electronic version of 
this form may be found at: https://www.epa.gov/ogd/AppKit/index.htm. 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 VIII of this Notice, below, for a 
link to all Rural Development State Offices.
    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 that 
their pre-applications were not selected and advised of their 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.
    Awards made under this Notice are subject to the provisions 
contained in the Agriculture, Consolidated and Further Continuing 
Appropriations Act, 2015, Public Law 113-235, Division E, Title 1, 
sections 744 and 745, regarding corporate felony convictions and 
corporate federal tax delinquencies. In accordance with those 
provisions, only selected applicants that are or propose to be 
corporations need submit the following form as part of their MPR 
application; such applicants must submit an executed form AD-3030, 
which can be found online at: https://www.ocio.usda.gov/document/ad3030.
    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 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. 
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:
    (a) 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.
    (b) 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.rd.usda.gov/programs-services/housing-preservation-revitalization-demonstration-loans-grants 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.
    (c) 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 MPR funding tools that 
will minimize the cost to the Government consistent with the purposes 
of this Notice.

C. 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 
six months of the obligation of MPR tools unless extended in writing by 
the Agency.

VII. Non-Discrimination Statement

    The U.S. Department of Agriculture (USDA) is an equal opportunity 
provider, employer, and lender. All borrowers and applicants will 
comply with the provisions of 7 CFR 3560.2. All housing must meet the 
accessibility requirements found at 7 CFR 3560.60(d). All MPR 
participants must submit or have on file a valid Form RD 400-1, ``Equal 
Opportunity Agreement'' and Form RD 400-4, ``Assurance Agreement.''
    The U.S. Department of Agriculture prohibits discrimination against 
its customers, employees, and applicants for employment on the basis of 
race, color, national origin, age, disability, sex, gender identity, 
religion, reprisal, and where applicable, political beliefs, marital 
status, familial or parental status, sexual orientation, all or part of 
an individual's income is derived from any public assistance program, 
or protected genetic information in employment or in any program or 
activity conducted or funded by the Department. (Not all prohibited 
bases will apply to all programs and/or employment activities.)
    If you wish to file an employment complaint, you must contact your 
Agency's EEO Counselor within 45 days of the date of the alleged 
discriminatory act, event, or in the case of a personnel action. 
Additional information can be found online at: https://www.ascr.usda.gov/complaint_filing_file.html.
    If you wish to file a Civil Rights program complaint of 
discrimination, complete the USDA Program Discrimination Complaint Form 
(PDF), found online at: https://www.ascr.usda.gov/complaint_filing_cust.html, any USDA office, or call (866) 632-9992 to 
request the form. You may also write a letter containing all of the 
information requested in the form. Send your completed complaint form 
or letter to us by mail at U.S. Department of Agriculture, Director, 
Office of Adjudication, 1400 Independence Avenue SW., Washington, DC 
20250-9410, by fax (202) 720-7442 or email at: program.intake@usda.gov.
    Individuals who are deaf, hard of hearing or have speech 
disabilities and you wish to file either an EEO or program complaint 
please contact USDA through the Federal Relay Service at (800) 877-8339 
or (800) 845-6136 (in Spanish).
    Persons with disabilities, who wish to file a program complaint, 
please see information above on how to contact us by mail directly or 
by email. If you require alternative means of communication for program 
information (e.g., Braille, large print, audiotape, etc.) please 
contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

 VIII. Award Agency Contacts

    USDA Rural Development MFH State Office contacts can be found at 
https://teamrd.usda.gov/rd/emp_services/

[[Page 45942]]

directory/states/Combined.doc. (Note: Telephone numbers listed are not 
toll-free.)
    Appropriation Act funding will be posted on the Rural Development 
Web site.
    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: July 28, 2015.
Tony Hernandez,
Administrator, Rural Housing Service.
[FR Doc. 2015-18990 Filed 7-31-15; 8:45 am]
BILLING CODE 3410-XV-P
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