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]
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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
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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
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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:
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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
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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
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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.
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(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:
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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:
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• 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.
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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
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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.
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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
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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
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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
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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
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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
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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.)
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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
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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
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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
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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.
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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
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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
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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
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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.
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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
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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
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19:55 Jul 31, 2015
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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).
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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
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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
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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
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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.
-----------------------------------------------------------------------
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