Notice of Solicitation of Applications (NOSA) for Section 514 Farm Labor Housing Loans and Section 516 Farm Labor Housing Grants for Off-Farm Housing for Fiscal Year (FY) 2016, 1611-1617 [2016-00483]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Housing Service

[Federal Register Volume 81, Number 8 (Wednesday, January 13, 2016)]
[Notices]
[Pages 1611-1617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-00483]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Solicitation of Applications (NOSA) for Section 514 
Farm Labor Housing Loans and Section 516 Farm Labor Housing Grants for 
Off-Farm Housing for Fiscal Year (FY) 2016

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Housing Service (RHS) announces the timeframe to 
submit pre-applications for Section 514 Farm Labor Housing (FLH) loans 
and Section 516 FLH grants for the construction of new off-farm FLH 
units and related facilities for domestic farm laborers and for the 
purchase and substantial rehabilitation of an existing non-FLH 
property. The intended purpose of these loans and grants is to increase 
the number of available housing units for domestic farm laborers. This 
Notice describes the method used to distribute funds, the application 
process, and submission requirements.
    RHS will publish on its Web site, https://www.rd.usda.gov/programs-services/farm-labor-housing-direct-loans-grants, the amount of funding 
available in FY 2016 based on current appropriations.
    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 over the last 30 years. This emphasis will 
support Rural Development's mission of improving the quality of life 
for rural Americans and commitment to directing resources to those who 
most need them.

DATES: The deadline for receipt of all applications in response to this 
Notice is 5:00 p.m., local time to the appropriate Rural Development 
State Office on April 12, 2016. Rural Development will not consider any 
application that is received after the deadline unless the date and 
time is extended by another Notice published in the Federal Register. 
Applicants intending to mail applications must provide sufficient time 
to permit delivery on or before the deadline. Acceptance by a post 
office or private mailer does not constitute delivery. Facsimile (FAX) 
and postage due applications will not be accepted.

ADDRESSES: Applicants wishing to submit an application in response to 
this Notice must contact the Rural Development State Office serving the 
State of the proposed off-FLH project in order to receive further 
information and copies of the application package. You may find the 
addresses and contact information for each State Office following this 
web link, https://www.rd.usda.gov/contact-us/state-offices. Rural 
Development will date and time stamp incoming applications to evidence 
timely receipt and, upon request, will provide the applicant with a 
written acknowledgment of receipt.

FOR FURTHER INFORMATION CONTACT: Mirna Reyes-Bible, Finance and Loan 
Analyst, Multi-Family Housing Preservation and Direct Loan Division, 
STOP 0781 (Room 1263-S), USDA Rural Development, 1400 Independence 
Avenue SW., Washington, DC 20250-0781, telephone: (202) 720-1753 (this 
is not a toll free number), or via email: 
mirna.reyesbible@wdc.usda.gov.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Housing Service.
    Funding Opportunity Title: NOSA for Section 514 Farm Labor Housing 
Loans and Section 516 Farm Labor Housing Grants for Off-Farm Housing 
for Fiscal Year 2016.
    Announcement Type: Solicitation of pre-applications from qualified 
applicants for FY 2016.
    Catalog of Federal Domestic Assistance Numbers (CFDA): 10.405 and 
10.427.
    Due Date for Applications: April 12, 2016.

A. Federal Award Description

    Pre-applications will only be accepted through the date and time 
listed in this Notice. All awards are subject to availability of 
funding. Individual requests may not exceed $3 million (total loan and 
grant).
    No State may receive more than 30 percent of available FLH funding 
available in FY 2016. If there are insufficient applications from 
around the country to exhaust Sections 514/516 funds available, the 
Agency may then exceed the 30 percent cap per State. Section 516 off-
farm FLH grants may not

[[Page 1612]]

exceed 90 percent of the total development cost (TDC) of the housing as 
defined in 7 CFR 3560.11.
    If leveraged funds are going to be used and are in the form of tax 
credits, the applicant must include in its pre-application written 
evidence that a tax credit application has been submitted and accepted 
by the Housing Finance Agency (HFA). All applications that will receive 
any leveraged funds must have firm commitments in place within 12 
months of the issuance of a ``Notice of Pre-application Review 
Action,'' Handbook Letter 103 (3560). Applicants without written 
evidence that a tax credit application has been submitted and accepted 
by the HFA must certify in writing they will apply for tax credits to 
the HFA and obtain a firm commitment within 12 months of the issuance 
of a ``Notice of Pre-application Review Action.''
    Rental Assistance (RA) and operating assistance will be available 
for new construction in FY 2016. Operating assistance is explained at 7 
CFR 3560.574 and may be used in lieu of tenant-specific RA in off-FLH 
projects that serve migrant farm workers as defined in 7 CFR 3560.11, 
that are financed under Section 514 or Section 516 (h) of the Housing 
Act of 1949, as amended (42 U.S.C. 1484 and 1486(h) respectively), and 
otherwise meet the requirements of 7 CFR 3560.574.

B. Eligibility Information

1. Eligibility
    Housing Eligibility--Housing that is constructed with FLH loans 
and/or grants must meet Rural Development's design and construction 
standards contained in 7 CFR part 1924, subparts A and C. Once 
constructed, off-farm FLH must be managed in accordance with 7 CFR part 
3560. In addition, off-farm FLH must be operated on a non-profit basis 
and tenancy must be open to all qualified domestic farm laborers, 
regardless at which farm they work. Section 514(f)(3) of the Housing 
Act of 1949, as amended (42 U.S.C. 1484(f)(3)) defines domestic farm 
laborers to include any person regardless of the person's source of 
employment, who receives a substantial portion of his or her income 
from the primary production of agricultural or aqua cultural 
commodities in the unprocessed or processed stage, and also includes 
the person's family.
    Tenant Eligibility--Tenant eligibility is limited to persons who 
meet the definition of a ``disabled domestic farm laborer,'' or a 
``domestic farm laborer,'' or ``retired domestic farm laborer,'' as 
defined in 7 CFR 3560.11. Farm workers who are admitted to this country 
on a temporary basis under the Temporary Agricultural Workers (H-2A 
Visa) program are not eligible to occupy Sections 514/516 off-farm FLH.
    Applicant Eligibility--
    (a) To be eligible to receive a Section 516 grant for off-farm FLH, 
the applicant must be a broad-based non-profit organization, including 
community and faith-based organizations, a non-profit organization of 
farm workers, a Federally recognized Indian tribe, an agency or 
political subdivision of a State or local Government, or a public 
agency (such as a housing authority). The applicant must be able to 
contribute at least one-tenth of the TDC from non-Rural Development 
resources which can include leveraged funds.
    (b) To be eligible to receive a Section 514 loan for off-farm FLH, 
the applicant must be a broad-based non-profit organization, including 
community and faith-based organizations, a non-profit organization of 
farm workers, a Federally recognized Indian tribe, an agency or 
political subdivision of a State or local Government, a public agency 
(such as a housing authority), or a limited partnership which has a 
non-profit entity as its general partner, and
    (i) Be unable to provide the necessary housing from its own 
resources;
    (ii) Except for State or local public agencies and Indian tribes, 
be unable to obtain similar credit elsewhere at rates that would allow 
for rents within the payment ability of eligible residents.
    (iii) Broad-based non-profit organizations must have a membership 
that reflects a variety of interests in the area where the housing will 
be located.
    2. Cost Sharing or Matching--Section 516 grants for off-farm FLH 
may not exceed 90 percent of the TDC as provided in 7 CFR 
3560.562(c)(1).
    3. Other Requirements--The following requirements apply to loans 
and grants made in response to this Notice:
    (a) 7 CFR part 1901, subpart E, regarding equal opportunity 
requirements;
    (b) For grants only, 2 CFR parts 200 and 400, which establishes the 
uniform administrative and audit requirements for grants and 
cooperative agreements to State and local Governments and to non-profit 
organizations;
    (c) 7 CFR part 1901, subpart F, regarding historical and 
archaeological properties;
    (d) 7 CFR part 1940, subpart G, regarding environmental 
assessments;
    (e) 7 CFR part 3560, subpart L, regarding the loan and grant 
authorities of the off-farm FLH program;
    (f) 7 CFR part 1924, subpart A, regarding planning and performing 
construction and other development;
    (g) 7 CFR part 1924, subpart C, regarding the planning and 
performing of site development work;
    (h) For construction financed with a Section 516 grant, the 
provisions of the Davis-Bacon Act (40 U.S.C. 276(a)-276(a)-5) and 
implementing regulations published at 29 CFR parts 1, 3, and 5;
    (i) All other requirements contained in 7 CFR part 3560, regarding 
the Sections 514/516 off-farm FLH programs; and
    (j) Please note that grant applicants must obtain a Dun and 
Bradstreet Data Universal Numbering System (DUNS) number and maintain 
registration in the Central Contractor Registration (CCR) prior to 
submitting a pre-application pursuant to 2 CFR 25.200(b). In addition, 
an entity applicant must maintain registration in the CCR database at 
all times during which it has an active Federal award or an application 
or plan under construction 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).

C. Application and Submission Information

1. Pre-Application Submission
    The application process will be in two phases: The initial pre-
application (or proposal) and the submission of a final application. 
Only those pre-applications or proposals that are selected for further 
processing will be invited to submit final applications. In the event 
that a proposal is selected for further processing and the applicant 
declines, the next highest ranked unfunded pre-application may be 
selected for further processing. All pre-applications for Sections 514 
and 516 funds must be filed with the appropriate Rural Development 
State Office and must meet the requirements of this Notice. Incomplete 
pre-applications will not be reviewed and will be returned to the 
applicant. No pre-application will be accepted after the deadline 
unless date and time are extended by another Notice published in the 
Federal Register.
    Pre-applications can be submitted either electronically using the 
FLH Pre-Application form found at https://

[[Page 1613]]

www.rd.usda.gov/programs-services/farm-labor-housing-direct-loans-
grants or in hard copy to the appropriate Rural Development Office 
where the project will be located. Follow the link for the RD Office 
address for requesting and submitting pre-application at: https://www.rurdev.usda.gov/StateofficeAddresses.html. Applicants are strongly 
encouraged, but not required, to submit the pre-application 
electronically. The electronic form contains a button labeled ``Send 
Form.'' By clicking on the button, the applicant will see an email 
message window with an attachment that includes the electronic form the 
applicant filled out as a data file with a .pdf extension. In addition, 
an auto-reply acknowledgement will be sent to the applicant when the 
electronic Loan Proposal form is received by the Agency unless the 
sender has software that will block the receipt of the auto-reply 
email. The State Office will record pre-applications received 
electronically by the actual date and time when all attachments are 
received at the State Office.
    Submission of the electronic Section 514 Loan Proposal form does 
not constitute submission of the entire proposal package which requires 
additional forms and supporting documentation as listed within this 
Notice. You may use one of the following three options for submitting 
the entire proposal package comprising of all required forms and 
documents. On the Loan Proposal form you can indicate the option you 
will be using to submit each required form and document.
    (a) Electronic Media Option. Submit all forms and documents as 
read-only Adobe Acrobat files on electronic media such as CDs, DVDs or 
USB drives. For each electronic device submitted, the applicant should 
include a Table of Contents of all documents and forms on that device. 
The electronic media should be submitted to the Rural Development State 
Office listed in this Notice where the property is located. Any forms 
and documents that are not sent electronically, including the check for 
credit reports, must be mailed to the Rural Development State Office.
    (b) Email Option. On the Loan Proposal form you will be asked for a 
submission email address. This email address will be used to establish 
a folder on the U.S. Department of Agriculture (USDA) server with your 
unique email address. Once the Loan Proposal form is processed, you 
will receive an additional email notifying you of the email address 
that you can use to email your forms and documents. Please Note: All 
forms and documents must be emailed from the same submission email 
address. This will ensure that all forms and documents that you send 
will be stored in the folder assigned to that email address. Any forms 
and documents that are not sent in via the email option must be 
submitted on an electronic media or in hard copy form to the Rural 
Development State Office.
    (c) Hard Copy Submission to the Rural Development State Office. If 
you are unable to send the proposal package electronically using either 
of the options listed above, you may send a hard copy of all forms and 
documents to the Rural Development State Office where the property is 
located. Hard copy pre-applications received on or before the deadline 
date will receive the close of business time of the day received as the 
receipt time. Hard copy pre-applications must be received by the 
submission deadline and no later than 5:00 p.m., local time, April 12, 
2016. Assistance for filing electronic and hard copy pre-applications 
can be obtained from any Rural Development State Office.
    For electronic submissions, there is a time delay between the time 
it is sent and the time it is received depending on network traffic. As 
a result, last-minute submissions sent before the deadline date and 
time could well be received after the deadline date and time because of 
the increased network traffic. Applicants are reminded that all 
submissions received after the deadline date and time will be rejected, 
regardless of when they were sent.
    If a pre-application is accepted for further processing, the 
applicant must submit a complete, final application, acceptable to 
Rural Development prior to the obligation of Rural Development funds. 
If the pre-application is not accepted for further processing the 
applicant will be notified of appeal rights under 7 CFR part 11.
2. Pre-Application Requirements
    (a) The pre-application must contain the following:
    (1) A summary page listing the following items. This information 
should be double-spaced between items and not be in narrative form.
    (i) Applicant's name.
    (ii) Applicant's Taxpayer Identification Number.
    (iii) Applicant's address.
    (iv) Applicant's telephone number.
    (v) Name of applicant's contact person, telephone number, and 
address.
    (vi) Amount of loan and/or grant requested.
    (vii) For grants of Federal financial assistance (including loans 
and grants, cooperative agreements, etc.), the applicant's Dun and 
Bradstreet Data Universal Numbering System (DUNS) number and 
registration in the CCR database in accordance with 2 CFR part 25. As 
required by the Office of Management and Budget (OMB), all grant 
applicants must provide a DUNS number when applying for Federal grants, 
on or after October 1, 2003. Organizations can receive a DUNS number at 
no cost by calling the dedicated toll-free number at (866) 705-5711 or 
via the Internet at: https://www.dnb.com/. Additional information 
concerning this requirement can be obtained on the Grants.gov Web site 
at www.grants.gov. Similarly, applicants may register for the CCR at: 
https://www.uscontractorregistration.com/ or by calling (877) 252-2700.
    (2) Awards made under this Notice are subject to the provisions 
contained in an appropriation in FY 2016 that funds FLH.
    (3) A narrative verifying the applicant's ability to meet the 
eligibility requirements stated earlier in this Notice. If an applicant 
is selected for further processing, Rural Development will require 
additional documentation as set forth in a Conditional Commitment in 
order to verify the entity has the legal and financial capability to 
carry out the obligation of the loan.
    (4) Standard Form 424, ``Application for Federal Assistance,'' can 
be obtained at: https://www.grants.gov or from any Rural Development 
State Office listed in Section VII of this Notice.
    (5) For loan pre-applications, current (within 6 months of pre-
application date) financial statements with the following paragraph 
certified by the applicant's designated and legally authorized signer:
    ``I/we certify the above is a true and accurate reflection of our 
financial condition as of the date stated herein. This statement is 
given for the purpose of inducing the United States of America to make 
a loan or to enable the United States of America to make a 
determination of continued eligibility of the applicant for a loan as 
requested in the loan application of which this statement is a part.''
    (6) For loan pre-applications, a check for $24 from applicants made 
out to the U.S. Department of Agriculture. This will be used to pay for 
credit reports obtained by Rural Development.
    (7) Evidence that the applicant is unable to obtain credit from 
other sources. Letters from credit institutions which normally provide 
real estate loans in the area should be obtained and these letters 
should indicate the rates and terms upon which a loan might be 
provided. (Note: Not required from State

[[Page 1614]]

or local public agencies or Indian tribes.)
    (8) If a FLH grant is desired, a statement concerning the need for 
a FLH grant. The statement should include preliminary estimates of the 
rents required with and without a grant.
    (9) A statement of the applicant's experience in operating labor 
housing or other rental housing. If the applicant's experience is 
limited, additional information should be provided to indicate how the 
applicant plans to compensate for this limited experience (i.e., 
obtaining assistance and advice of a management firm, non-profit group, 
public agency, or other organization which is experienced in rental 
management and will be available on a continuous basis).
    (10) A brief statement explaining the applicant's proposed method 
of operation and management (i.e., on-site manager, contract for 
management services, etc.). As stated earlier in this Notice, the 
housing must be managed in accordance with the program's management 
regulation, 7 CFR part 3560 and tenancy is limited to ``disabled 
domestic farm laborers,'' ``domestic farm laborers,'' and ``retired 
domestic farm laborers,'' as defined in 7 CFR 3560.11.
    (11) Applicants must also provide:
    (i) A copy of, or an accurate citation to, the special provisions 
of State law under which they are organized, a copy of the applicant's 
charter, Articles of Incorporation, and by-laws;
    (ii) The names, occupations, and addresses of the applicant's 
members, directors, and officers; and
    (iii) If a member or subsidiary of another organization, the 
organization's name, address, and nature of business.
    (12) A preliminary market survey or market study to identify the 
supply and demand for farm labor housing in the market area. The market 
area must be clearly identified and may include only the area from 
which tenants can reasonably be drawn for the proposed project. 
Documentation must be provided to justify a need within the intended 
market area for the housing of ``domestic farm laborers,'' as defined 
in 7 CFR 3560.11. The documentation must take into account disabled and 
retired farm workers. The preliminary survey should address or include 
the following items:
    (i) The annual income level of farmworker families in the area and 
the probable income of the farm workers who will likely occupy the 
proposed housing;
    (ii) A realistic estimate of the number of farm workers who remain 
in the area where they harvest and the number of farm workers who 
normally migrate into the area. Information on migratory workers should 
indicate the average number of months the migrants reside in the area 
and an indication of what type of family groups are represented by the 
migrants (i.e., single individuals as opposed to families);
    (iii) General information concerning the type of labor intensive 
crops grown in the area and prospects for continued demand for farm 
laborers;
    (iv) The overall occupancy rate for comparable rental units in the 
area and the rents charged and customary rental practices for these 
units (i.e., will they rent to large families, do they require annual 
leases, etc.);
    (v) The number, condition, adequacy, rental rates and ownership of 
units currently used or available to farm workers;
    (vi) A description of the units proposed, including the number, 
type, size, rental rates, amenities such as carpets and drapes, related 
facilities such as a laundry room or community room and other 
facilities providing supportive services in connection with the housing 
and the needs of the prospective tenants such as a health clinic or day 
care facility, estimated development timeline, estimated TDC, and 
applicant contribution; and
    (vii) The applicant must also identify all other sources of funds, 
including the dollar amount, source, and commitment status. (Note: A 
Section 516 grant may not exceed 90 percent of the TDC of the housing.)
    (13) The applicant must submit a checklist, certification, and 
signed affidavit by the project architect or engineer, as applicable, 
for any energy programs listed in Section IV the applicant intends to 
participate in.
    (14) The following forms are required:
    (i) A completed Form RD 1940-20, ``Request for Environmental 
Information,'' and a description of anticipated environmental issues or 
concerns. The form can be found at: https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1940-20.PDF.
    (ii) A prepared HUD Form 935.2A, ``Affirmative Fair Housing 
Marketing Plan (AFHM) Multi-Family Housing,'' in accordance with 7 CFR 
1901.203(c). The plan will reflect that occupancy is open to all 
qualified ``domestic farm laborers,'' regardless of which farming 
operation they work and that they will not discriminate on the basis of 
race, color, sex, age, disability, marital or familial status or 
National origin in regard to the occupancy or use of the units. The 
form can be found at: https://portal.hud.gov/hudportal/documents/huddoc?id=935-2a.PDF.
    (iii) A proposed operating budget utilizing Form RD 3560-7, 
``Multiple Family Housing Project Budget/Utility Allowance,'' can be 
found at: https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-7.PDF.
    (iv) An estimate of development cost utilizing Form RD 1924-13, 
``Estimate and Certificate of Actual Cost,'' can be found at: https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1924-13.PDF.
    (v) Form RD 3560-30, ``Certification of no Identity of Interest 
(IOI),'' can be found at: https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-30.PDF and Form RD 3560-31, ``Identity of 
Interest Disclosure/Qualification Certification,'' can be found at: 
https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-31.PDF.
    (vi) Form HUD 2530, ``Previous Participation Certification,'' can 
be found at: https://portal.hud.gov/hudportal/documents/huddoc?id=2530.pdf.
    (vii) If requesting RA or Operating Assistance, Form RD 3560-25, 
``Initial Request for Rental Assistance or Operating Assistance,'' can 
be found at: https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-25.PDF.
    (viii) Form RD 400-4, ``Assurance Agreement,'' can be found at: 
https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD400-4.PDF. Applicants for revitalization, repair, and rehabilitation 
funding are to apply through the Multifamily Housing Preservation and 
Revitalization (MPR) Demonstration Program.
    (ix) Evidence of compliance with Executive Order 12372. The 
applicant must send a copy of Form SF-424, ``Application for Federal 
Assistance'', to the applicant's State clearinghouse for 
intergovernmental review. If the applicant is located in a State that 
does not have a clearinghouse, the applicant is not required to submit 
the form. Applications from Federally recognized Indian tribes are not 
subject to this requirement.
    (15) Evidence of site control, such as an option contract or sales 
contract. In addition, a map and description of the proposed site, 
including the availability of water, sewer, and utilities and the 
proximity to community facilities and services such as shopping, 
schools, transportation, doctors, dentists, and hospitals.
    (16) Preliminary plans and specifications, including plot plans, 
building layouts, and type of

[[Page 1615]]

construction and materials. The housing must meet Rural Development's 
design and construction standards contained in 7 CFR part 1924, 
subparts A and C and must also meet all applicable Federal, State, and 
local accessibility standards.
    (17) A supportive services plan, which describes services that will 
be provided on-site or made available to tenants through cooperative 
agreements with service providers in the community, such as a health 
clinic or day care facility. Off-site services must be accessible and 
affordable to farm workers and their families. Letters of intent from 
service providers are acceptable documentation at the pre-application 
stage.
    (18) A sources and uses statement which shows all sources of 
funding included in the proposed project. The terms and schedules of 
all sources included in the project should be included in the sources 
and uses statement.
    (19) A separate one-page information sheet listing each of the 
``Pre-Application Scoring Criteria,'' contained in this Notice, 
followed by a reference to the page numbers of all relevant material 
and documentation that is contained in the proposal that supports the 
criteria.
    (20) Applicants are encouraged, but not required, to include a 
checklist of all of the pre-application requirements and to have their 
pre-application indexed and tabbed to facilitate the review process;
    (21) Evidence of compliance with the requirements of the applicable 
State Housing Preservation Office (SHPO), and/or Tribal Historic 
Preservation Officer (THPO). A letter from the SHPO and/or THPO where 
the off-farm labor housing project is located, signed by their designee 
will serve as evidence of compliance.

D. Pre-Application Review Information

    1. Selection Criteria. Section 514 FLH loan funds and Section 516 
FLH grant funds will be distributed to States based on a national 
competition, as follows:
    (a) Rural Development State Office will accept, review, and score 
pre-applications in accordance with this Notice. The scoring factors 
are:
    (1) The presence of construction cost savings, including donated 
land and construction leverage assistance, for the units that will 
serve program-eligible tenants. The savings will be calculated as a 
percentage of the Rural Development TDC. The percentage calculation 
excludes any costs prohibited by Rural Development as loan expenses, 
such as a developer's fee. Construction cost savings includes, but is 
not limited to, funds for hard construction costs, and State or Federal 
funds which are applicable to construction costs. A minimum of 10 
percent cost savings is required to earn points; however, if the total 
percentage of cost savings is less than 10 percent and the proposal 
includes donated land, two points will be awarded for the donated land. 
To count as cost savings for purposes of the selection criteria, the 
applicant must submit written evidence from the third-party funder that 
an application for those funds has been submitted and accepted points 
will be awarded in accordance with the following table using rounding 
to the nearest whole number.

------------------------------------------------------------------------
                       Percentage                             Points
------------------------------------------------------------------------
75 or more..............................................              20
60-74...................................................              18
50-59...................................................              16
40-49...................................................              12
30-39...................................................              10
20-29...................................................               8
10-19...................................................               5
0-9.....................................................               0
------------------------------------------------------------------------

    (2) The presence of operational cost savings, such as tax 
abatements, non-Rural Development tenant subsidies or donated services 
are calculated on a per-unit cost savings for the sum of the savings. 
Savings must be available for at least 5 years and documentation must 
be provided with the application demonstrating the availability of 
savings for 5 years. To calculate the savings, take the total amount of 
savings and divide it by the number of units in the project that will 
benefit from the savings to obtain the per unit cost savings. For non-
Rural Development tenant subsidy, if the value changes during the 5 
year calculation, the applicant must use the lower of the non-Rural 
Development tenant subsidy to calculate per unit cost savings. For 
example, a 10-unit property with 100 percent designated farm labor 
housing units receiving $20,000 per year non-Rural Development subsidy 
yields a cost savings of $100,000 ($20,000 x 5 years); resulting to a 
$10,000 per-unit cost savings ($100,000/10 units).
    Use the following table to apply points:

------------------------------------------------------------------------
                  Per-unit cost savings                       Points
------------------------------------------------------------------------
Above $15,000...........................................              50
$10,001-$15,000.........................................              35
$7,501-$10,000..........................................              20
$5,001-$7,500...........................................              15
$3,501-$5,000...........................................              10
$2,001-$3,500...........................................               5
$1,000-$2,000...........................................               2
------------------------------------------------------------------------

    (3) Percent of units for seasonal, temporary, migrant housing. (10 
points for up to and including 50 percent of the units; 20 points for 
51 percent or more units used for seasonal, temporary, or migrant 
housing.)
    (4) Additional 10 points will be awarded to projects in persistent 
poverty counties. A county is considered persistently poor if 20 
percent or more of its population was living in poverty over the last 
30 years (measured by the 1980, 1990 and 2000 decennial censuses and 
2007-2011 American Community Survey 5-year estimates).
    (5) Presence of tenant services.
    (i) Up to 25 points will be awarded based on the presence of and 
extent to which a tenant services plan exists that clearly outlines 
services that will be provided to the residents of the proposed 
project. These services may include, but are not limited to, 
transportation related services, on-site English as a Second Language 
(ESL) classes, move-in funds, emergency assistance funds, homeownership 
counseling, food pantries, after school tutoring, and computer learning 
centers.
    (ii) Two points will be awarded for each resident service included 
in the tenant services plan up to a maximum of 10 points. Plans must 
detail how the services are to be administered, who will administer 
them, and where they will be administered. All tenant service plans 
must include letters of intent that clearly state the service that will 
be provided at the project for the benefit of the residents from any 
party administering each service, including the applicant.
    (6) Energy Initiative Scoring Points (maximum 70 points)
    Properties may receive points for energy initiatives in the 
categories of energy conservation, energy generation, water 
conservation and green property management. Depending on the scope of 
work (SOW), properties may earn ``energy initiative'' points (up to a 
maximum of 70 points) in either one of two categories: 1) New 
Construction or 2) Purchase and Rehabilitation of an Existing Non-Farm 
Labor Housing Building. Projects will be eligible for one category of 
the two, but not both.
    Energy programs including LEED for Homes, Green Communities, etc., 
will each have an initial checklist indicating prerequisites for 
participation in its energy program. The applicable energy program 
checklist will establish whether prerequisites for the energy program's 
participation will be met. All checklists must be accompanied by a 
signed affidavit by the project architect or engineer stating that the 
goals are achievable and the project has been enrolled in these 
programs if enrollment

[[Page 1616]]

is applicable to that program. In addition, projects that apply for 
points under the energy generation category must include calculations 
of savings of energy. Compare property energy usage of three scenarios: 
(1) Property built to required code of State with no renewables, to (2) 
property as-designed with commitments to stated energy conservation 
programs without the use of renewables and (3) property as-designed 
with commitments to stated energy conservation programs and the use of 
proposed renewables. Use local average metrics for weather and utility 
costs and detail savings in kWh and dollars. Provide payback 
calculations. These calculations must be done by a licensed engineer or 
credentialed renewable energy provider. Include with application, the 
provider/engineer's credentials including qualifications, 
recommendations, and proof of previous work. The checklist, affidavit, 
calculations and qualifications of engineer/energy provider must be 
submitted together with the loan application.
    Enrollment in EPA Portfolio Manager Program. All projects awarded 
scoring points for energy initiatives must enroll the project in the 
EPA Portfolio Manager program to track post-construction energy 
consumption data. More information about this program may be found at: 
https://www.energystar.gov/buildings/facility-owners-and-managers/existing-buildings/use-portfolio-manager.
    (i) Energy Conservation for New Construction or Purchase and 
Rehabilitation of an Existing Non-Farm Labor Housing Building (maximum 
55 points). Projects may be eligible for up to 55 points when the pre-
application includes a written certification by the applicant to 
participate and achieve certification in the following energy 
efficiency programs.
    The points will be allocated as follows:
     Participation in the EPA's Energy Star for Homes V3 
program. (20 points) https://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.pt_bldr.
OR
     Participation in the Green Communities program by the 
Enterprise Community Partners. (30 points) https://www.enterprisecommunity.com/solutions-and-innovation/enterprise-green-communities.
OR
     Participation in one of the following two programs will be 
awarded points for certification.
    Note: Each program has four levels of certification. State the 
level of certification that the applicant plans will achieve in their 
certification:
     LEED for Homes program by the United States Green Building 
Council (USGBC): https://www.usgbc.org.

--Certified Level (30 points), OR
--Silver Level (35 points), OR
--Gold Level (40 points), OR
--Platinum Level (45 points)

    Applicant must state the level of certification that the 
applicant's plans will achieve in their certification in its pre-
application.
OR
     Home Innovation's and The National Association of Home 
Builders (NAHB) ICC 700 National Green Building Standard TM: https://www.nahb.org/.

--Green-Bronze Level (30 points), OR
--Silver Level (35 points), OR
--Gold Level (40 points), OR
--Emerald Level (45 points).

    Applicant must state the level of certification that the 
applicant's plans will achieve in their certification in its pre-
application.

AND

     Participation in the Department of Energy's Zero Energy 
Ready program. (8 points) https://www.energy.gov/eere/buildings/zero-energy-ready-home.

AND

     Participation in local green/energy efficient building 
standards. Applicants who participate in a city, county or municipality 
program, will receive an additional 2 points.
    (ii) Energy Conservation for Rehabilitation (maximum 55 points). 
Pre-applications for the purchase and rehabilitation of non-program MFH 
and related facilities in rural areas may be eligible to receive 55 
points when the pre-application includes a written certification by the 
applicant to participate in one of the following energy efficiency 
programs. Again, the certification must be accompanied by a signed 
affidavit by the project architect or engineer stating that the goals 
are achievable. Points will be award as follows:
     Participation in the Green Communities program by the 
Enterprise Community Partners (53 points) https://www.enterprisecommunity.com/solutions-and-innovation/enterprise-green-communities. At least 30 percent of the points needed to qualify for 
the Green Communities program must be earned under the Energy 
Efficiency section of Green Communities.

AND

     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 of and look for additional requirements that are sometimes 
embedded in the third-party program's rating and verification systems. 
(2 points)
    (iii) Energy Generation (maximum 7 points). Pre-applications for 
new construction or purchase and rehabilitation of non-program multi-
family projects which participate in the above mentioned programs and 
receive at least 20 points in the point allocations above are eligible 
to earn additional points for installation of on-site renewable energy 
sources. Energy analysis of preliminary building plans using industry-
recognized simulation software must document the projected total energy 
consumption of all of the building components and building site usage. 
Projects with an energy analysis of the preliminary or rehabilitation 
building plans 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) will be awarded points as follows:
     0 to 9 percent commitment to energy generation receives 0 
points
     10 to 20 percent commitment to energy generation receives 
1 point
     21 to 40 percent commitment to energy generation receives 
2 points
     41 to 60 percent commitment to energy generation receives 
3 points
     61 to 80 percent commitment to energy generation receives 
4 points
     81-100 percent or more commitment to energy generation 
receives 5 points
    Projects may participate in Power Purchase Agreements or Solar 
Leases to achieve their on-site renewable energy generation goals 
provided that the financial obligations of the lease/purchase 
agreements are clearly documented and included in the application, and 
qualifying ratios continue to be achieved.
    An additional (2) points will be awarded for off-grid systems, or 
elements of systems, provided that at least 5 percent of on-site 
renewable system is off-grid. See www.dsireusa.org for State and local 
specific incentives and regulations of energy initiatives.
    (iv) Water Conservation in Irrigation Measures (maximum 3 points). 
Projects may be awarded 3 points for the use of an engineered recycled 
water (gray water or storm water) for landscape irrigation covering 50 
percent or more of the property's site landscaping needs.

[[Page 1617]]

    (v) Property Management Credentials (maximum 5 points). Projects 
may be awarded an additional 5 points if the designated property 
management company or individuals that will assume maintenance and 
operations responsibilities upon completion of construction work have a 
Credential for Green Property Management. Credentialing can be obtained 
from the National Apartment Association (NAA), National Affordable 
Housing Management Association, the Institute for Real Estate 
Management, U.S. Green Building Council's Leadership in Energy and 
Environmental Design for Operations and Maintenance (LEED OM), or 
another source with a certifiable credentialing program. Credentialing 
must be illustrated in the resume(s) of the property management team 
and included with the pre-application.
    The National Office will rank all pre-applications nationwide and 
distribute funds to States in rank order, within funding and RA limits. 
When proposals have an equal score, preference will be given first to 
Indian tribes as defined in Sec.  3560.11 and then local non-profit 
organizations or public bodies whose principal purposes include low-
income housing that meet the conditions of Sec.  3560.55(c) and the 
following conditions:
     Is exempt from Federal income taxes under section 
501(c)(3) or 501(c)(4) of the Internal Revenue code;
     Is not wholly or partially owned or controlled by a for-
profit or limited-profit type entity;
     Whose members, or the entity, do not share an identity of 
interest with a for-profit or limited-profit type entity;
     Is not co-venturing with another entity; and
     The entity or its members will not be receiving any direct 
or indirect benefits pursuant to Low Income Housing Tax Credits.
    If there are two or more applications that have the same score and 
both cannot be funded, a lottery in accordance with 7 CFR 3560.56(c)(2) 
will be used to break the tie. If insufficient funds or RA remain for 
the next ranked proposal, that applicant will be given a chance to 
modify their pre-application to bring it within remaining funding 
levels. This will be repeated for each next ranked eligible proposal 
until an award can be made or the list is exhausted.
    Rural Development will notify all applicants whether their 
applications have been accepted or rejected and provide appeal rights 
under 7 CFR part 11, as appropriate.

E. Federal Award Administration Information

1. Federal Award Notices
    Loan applicants must submit their initial applications by the due 
date specified in this Notice. Once the applications have been scored 
and ranked by the National Office, the National Office will advise 
State Offices of the proposals selected for further processing, State 
Offices will respond to applicants by letter.
    If the application is not accepted for further processing, the 
applicant will be notified of appeal rights under 7 CFR part 11.
2. Administrative and National Policy
    All Farm Labor Housing loans and grants are subject to the 
restrictive-use provisions contained in 7 CFR 3560.72(a) (2).
3. Reporting
    Borrowers must maintain separate financial records for the 
operation and maintenance of the project and for tenant services. 
Tenant services will not be funded by Rural Development. Funds 
allocated to the operation and maintenance of the project may not be 
used to supplement the cost of tenant services, nor may tenant service 
funds be used to supplement the project operation and maintenance. 
Detailed financial reports regarding tenant services will not be 
required unless specifically requested by Rural Development, and then 
only to the extent necessary for Rural Development and the borrower to 
discuss the affordability (and competitiveness) of the service provided 
to the tenant. The project audit, or verification of accounts on Form 
RD 3560-10, ``Borrower Balance Sheet,'' together with an accompanying 
Form RD 3560-7, ``Multiple Family Housing Project Budget Utility 
Allowance,'' must allocate revenue and expense between project 
operations and the service component.

F. Equal Opportunity and Non-Discrimination Requirements

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family/parental status, income derived from a public assistance 
program. Political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARTET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at: https://www.ascr.usda.gov/complaint_filing_cust.html, and at any USDA office 
or write a letter addressed to USDA and provide in the letter all of 
the information requested in the form. To request a copy of a complaint 
form, call, (866) 632-9992. Submit your completed form or letter to 
USDA by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW., Washington, 
DC 20250-9410;
    (2) Fax: (202) 690-7442; or
    (3) Email at: program.intake@usda.gov.
    USDA is an equal opportunity provider, employer, and lender.
    Exceptions to Including the Full USDA Non-Discrimination Statement.
    If the size of the material to too small to include the full 
statement, the material will at a minimum, include the following 
statement in print in the same size as the text:
    ``USDA is an equal opportunity provider, employer, and lender.'' 
Where appropriate, a recipient may state:
    ``This institution in an equal opportunity provider.''

     Dated: January 4, 2016.
Tony Hernandez,
Administrator, Housing and Community Facilities Programs.
[FR Doc. 2016-00483 Filed 1-12-16; 8:45 am]
BILLING CODE 3410-XV-P