New Fee Structure for Section 538 Guaranteed Rural Rental Housing Program Initial and Annual Guarantee Fees, 12077-12078 [2022-04442]
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khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 42 / Thursday, March 3, 2022 / Notices
Summary of Collection: USDA’s Food
and Nutrition Service (FNS) depends
upon the APEC study series to provide
reliable, national estimates of errors and
improper payments made to school
districts in which the National School
Lunch Program (NSLP) and School
Breakfast Program (SBP) are operated.
This is the fourth study in the APEC
series and it will provide the required
information for school year (SY) 2023–
2024.
The Payment Integrity Information
Act of 2019 (PIIA) requires that FNS
identify and reduce improper payments
in these programs, including both
underpayments and overpayments. In
order to comply with the law, programs
must have a statistically valid rate of
improper payment below 10 percent,
and programs out of compliance with
PIIA are subject to increased scrutiny
and reporting requirements.
Need and Use of the Information: The
specific study objectives of APEC IV are:
Objective 1: Generate a national
estimate of the annual amount of
improper payments in the National
School Lunch Program and School
Breakfast Program based on SY 2023–
2024 by replicating and refining the
methodology used in prior APEC
studies. Objective 2: Provide a robust
examination of the relationship between
error rates and student (household),
school, and school food authority (SFA)
characteristics. Objective 3: Conduct
two sub-studies testing the effect that
data collection methods have on
responses.
APEC IV will collect data to measure
certification, aggregation, and meal
claiming errors via in-person visits to
SFAs and schools and surveys of SFA
directors and households. Data
collection will include (a) abstraction
from income eligibility applications and
categorical eligibility records; (b)
abstraction of meal count and claiming
records from SFAs, schools, States, and
FNS administrative data; (c) an online
survey of SFA directors; (d) meal
observations in schools; and (e) a
telephone survey of households.
Description of Respondents:
Individuals/Households, State, Local, or
Tribal government.
Number of Respondents: 13,068.
Frequency of Responses: Reporting:
Once, Annually.
Total Burden Hours: 21,013.
Ruth Brown,
Departmental Information Collection
Clearance Officer.
[FR Doc. 2022–04478 Filed 3–2–22; 8:45 am]
BILLING CODE 3410–30–P
VerDate Sep<11>2014
18:23 Mar 02, 2022
Jkt 256001
DEPARTMENT OF AGRICULTURE
Rural Housing Service
[Docket No. RHS–19–MFH–0024]
New Fee Structure for Section 538
Guaranteed Rural Rental Housing
Program Initial and Annual Guarantee
Fees
Rural Housing Service, USDA.
Notice.
AGENCY:
ACTION:
The Rural Housing Service
(RHS or the Agency), a Rural
Development agency of the United
States Department of Agriculture
(USDA), is announcing a new fee
structure for the Section 538 Guaranteed
Rural Rental Housing Program (GRRHP)
initial and annual guarantee fees.
DATES: The effective date of the revised
fees is April 4, 2022.
FOR FURTHER INFORMATION CONTACT:
Tammy Daniels, Finance and Loan
Analyst, Multi-Family Housing
Production and Preservation Division,
Rural Housing Service, USDA, STOP
0781, 1400 Independence Avenue SW,
Washington, DC 20250–0781,
Telephone: (202) 720–0021 (this is not
a toll-free number); email:
tammy.daniels@usda.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Authority
The RHS administers the 538
Guaranteed Rural Rental Housing
Program (GRRHP) loans under the
authority of the Housing Act of 1949, as
amended (42 U.S.C. 1490p–2) and
operates under 7 CFR part 3565. As set
forth in 7 CFR part 3565, the Agency
will publish any changes to the fees in
a Notice in the Federal Register.
Background
RHS administers the Section 538
Guaranteed Rural Rental Housing
Program (GRRHP) under the authority of
the Housing Act of 1949, as amended
(42 U.S.C. 1490p–2). Under the GRRHP,
RHS guarantees loans for the
development of housing and related
facilities in rural areas. Section 538(g)
authorizes the Secretary of Agriculture
to charge certain fees to lenders for loan
guarantees (see, 42 U.S.C. 1490p–2(g)).
The fees charged are used to cover the
costs of loan guarantees pursuant to the
provisions of the Credit Reform Act of
1990 (2 U.S.C. 661 et seq.).
On December 3, 2020, the Agency
published a final rule in the Federal
Register at 85 FR 77985 with an
effective date of January 4, 2021,which
amended 7 CFR part 3565 by removing
the stated amount that the Agency will
PO 00000
Frm 00004
Fmt 4703
Sfmt 4703
12077
charge for the initial and annual
guarantee fees. This regulation update
affords the program the flexibility and
ability to create the maximum housing
affordability to residents by lowering
program costs when practical, without
the need for a regulatory change. As
stated in the final rule, if changes occur
in the fee amounts, the Agency will
release those changes through a Notice
in the Federal Register and will provide
guidance on how to process the loans
which will be impacted by the new fee
structure. Interested parties will be able
to locate current fees on the Agency’s
website at: https://www.rd.usda.gov/
programs-services/multifamily-housingprograms/multifamily-housing-loanguarantees.
New Fee Structure
Projects with a fully executed (signed
by both the Agency and Lender)
conditional commitment as of the date
this notice is published, or a loan
obligated prior to October 1, 2021 are
ineligible for the reduced fees. Loans in
the following three categories will
receive a greater reductions in the fees:
(1) Green and Energy Efficient, (2)
Preservation of Existing Section 515,
514/516 Rural Development Properties,
and (3) Workforce Housing. The overall
status of the GRRHP portfolio is healthy.
There is a low delinquency rate, the
program operates at a negative subsidy,
and the program has used all or most of
its appropriations in the past 5 years.
The initial and annual guarantee fee is
usually passed on to the borrower.
Reducing the fees will decrease the debt
service for future loans which will
ultimately decrease the rents and
provide savings to the tenants, allow
more funds to be allocated toward
capital improvements while continuing
to offset the cost to operate the program.
On February 18, 2021, the Agency
conducted a forum soliciting feedback
from Section 538 lenders, borrowers,
and program stakeholders. The general
feedback was that the new fee structure
for the initial and annual guarantee fees
should take into account affordability
and target projects whose rents are at 60
percent Area Median Income (AMI) and
have current government subsidies. The
new fee structure being implemented
has taken this into account by providing
greater reduced fees for preservation of
existing Section 515, 514/516 Rural
Development properties.
The annual fee will not be changed
for existing Section 538 GRRHP loans.
At the discretion of the Agency, Section
538 GRRHP loans that are refinanced or
modified after the revised fee structure
goes into effect and can successfully
demonstrate that the reduced fee results
E:\FR\FM\03MRN1.SGM
03MRN1
12078
Federal Register / Vol. 87, No. 42 / Thursday, March 3, 2022 / Notices
in capital improvements to the property
or a reduction of rents, will be
considered for eligibility of a reduced
fee. Existing 538 GRRHP loans that are
refinanced or modified, solely as part of
an interest rate reduction, will not be
eligible for reduced annual fees. The
three categories that will receive a
greater reduction in the fees are detailed
as follows:
1. Workforce Housing: Workforce Housing
is defined as housing affordable to
households earning between 60 and 120
percent of area median income (AMI). By
statute, the income in the 538 program is
capped at 115 percent AMI. Properties with
100 percent of the units affordable to
households at 80 percent–115 percent AMI
will be eligible for the reduced fee.
2. Preservation of Existing Section 515,
514/516 Rural Development Properties.
3. Green and Energy Efficient Fee
Structure: Upon submission of the
application for existing properties that meet
the requirement of the Green/Energy Efficient
fee structure, the lender must collect from the
borrower and submit to the Agency evidence
that the specified, independent green
building standard has been achieved. Owners
may access the United States Environmental
Protection Agency’s ENERGY STAR Portfolio
Manager software at no cost. Evidence will be
in the form of a copy of the Portfolio
Manager’s report showing that the building
performance is at or above 75 on the 1–100
ENERGY STAR score in Portfolio Manager.
For new construction and substantial
rehabilitation or renovations, the lender and
owner must certify that it will pursue and
achieve an industry recognized standard for
green building. That evidence must be
submitted no more than 15 months after
completion of construction or 15 months
after break-even occupancy when those
standards have been achieved. If these
standards are not achieved, the Agency may
impose protocols or restrictions to ensure the
property is brought into compliance.
Acceptable, independently verified
standards include the Enterprise Green
Communities Criteria; U.S. Green Building
Council’s LEED–H, LEED–H Midrise, LEED–
NC, or LEED for Existing Buildings:
Operations & Maintenance; ENERGY STAR
certification; EarthCraft House; EarthCraft
Multifamily; Earth Advantage New Homes;
Greenpoint Rated New Home; Greenpoint
Rated Existing Home (Whole House or Whole
Building label); the National Green Building
Standard (NGBS); Passive Building
Certification or EnerPHit Retrofits
certification from the Passive House Institute
US (PHIUS), International Passive House
Association, or the Passive House Institute;
and Living Building Challenge Certification
from the International Living Future
Institute, or other industry-recognized green
building standards, in the sole discretion of
Rural Development, Multi-Family Housing.
These programs evolve and newer versions
are published, sometimes annually. Projects
must participate in the current version of the
programs and must consult with the program
provider for the most current, applicable and
available programs for their project location.
The Agency announces the new fee
structure as follows:
Initial guarantee fee
(due prior to or at closing)
Annual guarantee fee
(due each year or portion of
the year the guarantee
remains in effect) *
Basis points
Basis points
Amended Fee Structure ......................................................................................
Workforce Housing—Rents between 80%–115% AMI .......................................
Preservation of Existing Section 515, 514/516 Rural Development Properties
Section 538 New Construction/Substantial Rehab w/Green ...............................
65
60
60
60
35
25
25
25
* The annual guarantee fee is paid in advance. (Example: A loan that closes on December 31, 2021 will incur the annual fee for 2022).
khammond on DSKJM1Z7X2PROD with NOTICES
Non-Discrimination Statement
In accordance with Federal civil
rights laws and USDA civil rights
regulations and policies, the USDA, its
Mission Areas, agencies, staff offices,
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.
Program information may be made
available in languages other than
English. Persons with disabilities who
require alternative means of
communication to obtain program
information (e.g., Braille, large print,
audiotape, American Sign Language)
should contact the responsible Mission
Area, agency, or staff office; the USDA
VerDate Sep<11>2014
18:23 Mar 02, 2022
Jkt 256001
TARGET Center at (202) 720–2600
(voice and TTY); or the Federal Relay
Service at (800) 877–8339.
To file a program discrimination
complaint, a complainant should
complete a Form AD–3027, USDA
Program Discrimination Complaint
Form, which can be obtained online at
https://www.ocio.usda.gov/document/
ad-3027, from any USDA office, by
calling (866) 632–9992, or by writing a
letter addressed to USDA. The letter
must contain the complainant’s name,
address, telephone number, and a
written description of the alleged
discriminatory action in sufficient detail
to inform the Assistant Secretary for
Civil Rights (ASCR) about the nature
and date of an alleged civil rights
violation. The completed AD–3027 form
or letter must be submitted 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; or
(2) Fax: (833) 256–1665 or (202) 690–
7442; or
PO 00000
Frm 00005
Fmt 4703
Sfmt 4703
(3) Email: OASCR.Program-Intake.
Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2022–04442 Filed 3–2–22; 8:45 am]
BILLING CODE 3410–XV–P
COMMISSION ON CIVIL RIGHTS
Agenda and Notice of a Public
Meetings of the Maine Advisory
Committee
Commission on Civil Rights.
Announcement of a public
meetings.
AGENCY:
ACTION:
Notice is hereby given,
pursuant to the provisions of the rules
and regulations of the U.S. Commission
on Civil Rights (Commission), and the
Federal Advisory Committee Act
(FACA), that the Maine State Advisory
Committee to the Commission will hold
virtual meetings for project planning on
Thursday, March 31, 2022, at 2:00 p.m.
(ET); Thursday, April 28, 2022, at 12:00
p.m. (ET); and Wednesday, May 4, 2022,
at 12:00 p.m. (ET).
DATES:
SUMMARY:
E:\FR\FM\03MRN1.SGM
03MRN1
]]>Agencies
[Federal Register Volume 87, Number 42 (Thursday, March 3, 2022)]
[Notices]
[Pages 12077-12078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04442]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Housing Service
[Docket No. RHS-19-MFH-0024]
New Fee Structure for Section 538 Guaranteed Rural Rental Housing
Program Initial and Annual Guarantee Fees
AGENCY: Rural Housing Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural
Development agency of the United States Department of Agriculture
(USDA), is announcing a new fee structure for the Section 538
Guaranteed Rural Rental Housing Program (GRRHP) initial and annual
guarantee fees.
DATES: The effective date of the revised fees is April 4, 2022.
FOR FURTHER INFORMATION CONTACT: Tammy Daniels, Finance and Loan
Analyst, Multi-Family Housing Production and Preservation Division,
Rural Housing Service, USDA, STOP 0781, 1400 Independence Avenue SW,
Washington, DC 20250-0781, Telephone: (202) 720-0021 (this is not a
toll-free number); email: [email protected].
SUPPLEMENTARY INFORMATION:
Authority
The RHS administers the 538 Guaranteed Rural Rental Housing Program
(GRRHP) loans under the authority of the Housing Act of 1949, as
amended (42 U.S.C. 1490p-2) and operates under 7 CFR part 3565. As set
forth in 7 CFR part 3565, the Agency will publish any changes to the
fees in a Notice in the Federal Register.
Background
RHS administers the Section 538 Guaranteed Rural Rental Housing
Program (GRRHP) under the authority of the Housing Act of 1949, as
amended (42 U.S.C. 1490p-2). Under the GRRHP, RHS guarantees loans for
the development of housing and related facilities in rural areas.
Section 538(g) authorizes the Secretary of Agriculture to charge
certain fees to lenders for loan guarantees (see, 42 U.S.C. 1490p-
2(g)). The fees charged are used to cover the costs of loan guarantees
pursuant to the provisions of the Credit Reform Act of 1990 (2 U.S.C.
661 et seq.).
On December 3, 2020, the Agency published a final rule in the
Federal Register at 85 FR 77985 with an effective date of January 4,
2021,which amended 7 CFR part 3565 by removing the stated amount that
the Agency will charge for the initial and annual guarantee fees. This
regulation update affords the program the flexibility and ability to
create the maximum housing affordability to residents by lowering
program costs when practical, without the need for a regulatory change.
As stated in the final rule, if changes occur in the fee amounts, the
Agency will release those changes through a Notice in the Federal
Register and will provide guidance on how to process the loans which
will be impacted by the new fee structure. Interested parties will be
able to locate current fees on the Agency's website at: https://www.rd.usda.gov/programs-services/multifamily-housing-programs/multifamily-housing-loan-guarantees.
New Fee Structure
Projects with a fully executed (signed by both the Agency and
Lender) conditional commitment as of the date this notice is published,
or a loan obligated prior to October 1, 2021 are ineligible for the
reduced fees. Loans in the following three categories will receive a
greater reductions in the fees: (1) Green and Energy Efficient, (2)
Preservation of Existing Section 515, 514/516 Rural Development
Properties, and (3) Workforce Housing. The overall status of the GRRHP
portfolio is healthy. There is a low delinquency rate, the program
operates at a negative subsidy, and the program has used all or most of
its appropriations in the past 5 years. The initial and annual
guarantee fee is usually passed on to the borrower. Reducing the fees
will decrease the debt service for future loans which will ultimately
decrease the rents and provide savings to the tenants, allow more funds
to be allocated toward capital improvements while continuing to offset
the cost to operate the program.
On February 18, 2021, the Agency conducted a forum soliciting
feedback from Section 538 lenders, borrowers, and program stakeholders.
The general feedback was that the new fee structure for the initial and
annual guarantee fees should take into account affordability and target
projects whose rents are at 60 percent Area Median Income (AMI) and
have current government subsidies. The new fee structure being
implemented has taken this into account by providing greater reduced
fees for preservation of existing Section 515, 514/516 Rural
Development properties.
The annual fee will not be changed for existing Section 538 GRRHP
loans. At the discretion of the Agency, Section 538 GRRHP loans that
are refinanced or modified after the revised fee structure goes into
effect and can successfully demonstrate that the reduced fee results
[[Page 12078]]
in capital improvements to the property or a reduction of rents, will
be considered for eligibility of a reduced fee. Existing 538 GRRHP
loans that are refinanced or modified, solely as part of an interest
rate reduction, will not be eligible for reduced annual fees. The three
categories that will receive a greater reduction in the fees are
detailed as follows:
1. Workforce Housing: Workforce Housing is defined as housing
affordable to households earning between 60 and 120 percent of area
median income (AMI). By statute, the income in the 538 program is
capped at 115 percent AMI. Properties with 100 percent of the units
affordable to households at 80 percent-115 percent AMI will be
eligible for the reduced fee.
2. Preservation of Existing Section 515, 514/516 Rural
Development Properties.
3. Green and Energy Efficient Fee Structure: Upon submission of
the application for existing properties that meet the requirement of
the Green/Energy Efficient fee structure, the lender must collect
from the borrower and submit to the Agency evidence that the
specified, independent green building standard has been achieved.
Owners may access the United States Environmental Protection
Agency's ENERGY STAR Portfolio Manager software at no cost. Evidence
will be in the form of a copy of the Portfolio Manager's report
showing that the building performance is at or above 75 on the 1-100
ENERGY STAR score in Portfolio Manager. For new construction and
substantial rehabilitation or renovations, the lender and owner must
certify that it will pursue and achieve an industry recognized
standard for green building. That evidence must be submitted no more
than 15 months after completion of construction or 15 months after
break-even occupancy when those standards have been achieved. If
these standards are not achieved, the Agency may impose protocols or
restrictions to ensure the property is brought into compliance.
Acceptable, independently verified standards include the
Enterprise Green Communities Criteria; U.S. Green Building Council's
LEED-H, LEED-H Midrise, LEED-NC, or LEED for Existing Buildings:
Operations & Maintenance; ENERGY STAR certification; EarthCraft
House; EarthCraft Multifamily; Earth Advantage New Homes; Greenpoint
Rated New Home; Greenpoint Rated Existing Home (Whole House or Whole
Building label); the National Green Building Standard (NGBS);
Passive Building Certification or EnerPHit Retrofits certification
from the Passive House Institute US (PHIUS), International Passive
House Association, or the Passive House Institute; and Living
Building Challenge Certification from the International Living
Future Institute, or other industry-recognized green building
standards, in the sole discretion of Rural Development, Multi-Family
Housing. These programs evolve and newer versions are published,
sometimes annually. Projects must participate in the current version
of the programs and must consult with the program provider for the
most current, applicable and available programs for their project
location.
The Agency announces the new fee structure as follows:
----------------------------------------------------------------------------------------------------------------
Initial guarantee fee (due Annual guarantee fee (due
prior to or at closing) each year or portion of the
------------------------------ year the guarantee remains
in effect) *
Basis points -----------------------------
Basis points
----------------------------------------------------------------------------------------------------------------
Amended Fee Structure............................... 65 35
Workforce Housing--Rents between 80%-115% AMI....... 60 25
Preservation of Existing Section 515, 514/516 Rural 60 25
Development Properties.............................
Section 538 New Construction/Substantial Rehab w/ 60 25
Green..............................................
----------------------------------------------------------------------------------------------------------------
* The annual guarantee fee is paid in advance. (Example: A loan that closes on December 31, 2021 will incur the
annual fee for 2022).
Non-Discrimination Statement
In accordance with Federal civil rights laws and USDA civil rights
regulations and policies, the USDA, its Mission Areas, agencies, staff
offices, 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.
Program information may be made available in languages other than
English. Persons with disabilities who require alternative means of
communication to obtain program information (e.g., Braille, large
print, audiotape, American Sign Language) should contact the
responsible Mission Area, agency, or staff office; the USDA TARGET
Center at (202) 720-2600 (voice and TTY); or the Federal Relay Service
at (800) 877-8339.
To file a program discrimination complaint, a complainant should
complete a Form AD-3027, USDA Program Discrimination Complaint Form,
which can be obtained online at https://www.ocio.usda.gov/document/ad-3027, from any USDA office, by calling (866) 632-9992, or by writing a
letter addressed to USDA. The letter must contain the complainant's
name, address, telephone number, and a written description of the
alleged discriminatory action in sufficient detail to inform the
Assistant Secretary for Civil Rights (ASCR) about the nature and date
of an alleged civil rights violation. The completed AD-3027 form or
letter must be submitted 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; or
(2) Fax: (833) 256-1665 or (202) 690-7442; or
(3) Email: OASCR.Program-Intake.
Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2022-04442 Filed 3-2-22; 8:45 am]
BILLING CODE 3410-XV-P
