Notice of Funding Availability for the Native Community Development Financial Institution (NCDFI) Relending Demonstration Program FY 2023, 31669-31674 [2023-10605]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Housing Service

[Federal Register Volume 88, Number 96 (Thursday, May 18, 2023)]
[Notices]
[Pages 31669-31674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10605]


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Federal Register / Vol. 88, No. 96 / Thursday, May 18, 2023 / 
Notices

[[Page 31669]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

[Docket No. RHS-23-SFH-0004]


Notice of Funding Availability for the Native Community 
Development Financial Institution (NCDFI) Relending Demonstration 
Program FY 2023

AGENCY: Rural Housing Service, USDA.

ACTION: Notice of funding availability.

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SUMMARY: The Rural Housing Service (RHS or the Agency), an agency 
within the Rural Development mission area (RD) of the United States 
Department of Agriculture (USDA), announces the availability of funding 
for applications under its Native Community Development Financial 
Institution (NCDFI) Relending Demonstration Program for fiscal year 
(FY) 2023. The purpose of this notice is to announce the opening and 
closing dates for receipt of applications for the NCDFI Relending 
Demonstration Program from eligible applicants, as well as submission 
requirements. These loans will be made to qualified NCDFIs to relend 
funds to low- and very low-income ultimate recipients to acquire, 
build, rehabilitate, improve, or relocate dwellings on Tribal Land in 
rural areas. This program has $7,502,000 available for FY 23. 
Applicants are responsible for any expenses incurred in developing 
their applications.

DATES: Completed applications must be submitted using one of the 
following methods:
     Paper submissions: The Agency must receive a paper 
application by 4:30 p.m. local time, July 17, 2023. Application can be 
mailed to: USDA Rural Development, Washington State Office, Attention: 
Andria Hively, 1835 Black Lake Blvd. SW, Olympia, WA 98512.
     Electronic submissions: Electronic applications must be 
submitted via email to [email protected] by 11:59 p.m. Eastern Time 
(ET) on July 17, 2023.
    The Agency will not solicit or consider scoring or eligibility 
information that is submitted after the application deadline. The 
application dates and times are firm. The Agency will not consider any 
application received after the deadline. The Agency reserves the right 
to contact applicants to seek clarification information on materials 
contained in the submitted application.

ADDRESSES: Applicants wanting to apply for assistance may download the 
application documents and requirements as stated in this Notice from 
the NCDFI Relending Demonstration website at: https://www.rd.usda.gov/programs-services/single-family-housing-programs/native-community-development-financial-institution-relending-demonstration-program. 
Applicants may also request paper application packages from the Rural 
Development National Office by emailing [email protected].

FOR FURTHER INFORMATION CONTACT: Brian Hudson, Finance and Loan 
Analyst, Single Family Housing Direct Division, Special Programs and 
New Initiatives Branch at (608) 697-7725 (voice) (this is not a toll-
free number) or [email protected].

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency Name: Rural Housing Service (RHS).
    Funding Opportunity Title: Native Community Development Financial 
Institution (NCDFI) Relending Demonstration Program.
    Announcement Type: Notice of Funding Availability (NOFA).
    Assistance Listing (AL) Numbers: 10.410.
    Dates: Completed applications and supporting materials must be sent 
via mail or delivered to: USDA Rural Development, Washington State 
Office, Attention: Andria Hively, 1835 Black Lake Blvd. SW, Olympia, WA 
98512 by 4:30 p.m. Pacific Time (PT) on July 17, 2023, or sent via 
email to [email protected] by 11:59 p.m. Eastern Time (ET) on July 
17, 2023. Late or incomplete applications will not be accepted.
    Rural Development Key Priorities: The Agency encourages applicants 
to consider projects that will advance the following key priorities 
(more details available at https://www.rd.usda.gov/priority-points):
     Reducing climate pollution and increasing resilience to 
the impacts of climate change through economic support to rural 
communities;
     Ensuring all rural residents have equitable access to RD 
programs and benefits from RD funded projects; and
     Assisting rural communities recover economically through 
more and better market opportunities and through improved 
infrastructure.
    For further information, visit https://www.rd.usda.gov/priority-points.

A. Program Description

    1. Purpose of the Program. The purpose of the NCDFI Relending 
Demonstration Program is to increase homeownership opportunities for 
Native American Tribes, Alaska Native Communities, and Native Hawaiian 
Communities in rural areas. The program will provide capital to NCDFIs; 
loans made to NCDFIs will be relent to the ultimate recipients (low- 
and very low-income people who will live on Tribal Lands and are in 
need of affordable, modest single-family homes).
    2. Statutory Authority. Funding is authorized pursuant to the 
Consolidated Appropriation Act, 2023, Public Law 117-328, and Section 
502 of the Housing Act of 1949, 42 U.S.C. 1472, implemented under 7 CFR 
part 3550.
    3. Definitions. In addition to the terms defined below, the 
definitions and terms applicable to the loan process for ultimate 
recipients can be found at 7 CFR 3550.10):
    a. Native Community Development Financial Institution (NCDFI). An 
entity that has been certified as a Native Community Development 
Financial Institution (NCDFI) by the Secretary of the Treasury; that is 
not less than 50 percent owned or controlled by members of Native 
American Tribes, Alaska Native Communities, or Native Hawaiian 
Communities; and for which not less than 50 percent of the activities 
of the entity serve Indian Tribes, Alaska Native communities, or Native 
Hawaiian communities;
    b. Native Hawaiian. The term `Native Hawaiian' has the meaning 
given the term in the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4221);

[[Page 31670]]

    c. Principals of NCDFI. Members, officers, directors, and other 
individuals or entities directly involved in the operation and 
management (including setting policy) of an NCDFI.
    d. Tribal Land. Tribal Land includes any of the following:
    (i) any land located within the boundaries of--
    (I) an Indian reservation, pueblo, or rancheria; or
    (II) a former reservation within Oklahoma;
    (ii) any land not located within the boundaries of an Indian 
reservation, pueblo, or rancheria, the title to which is held--
    (I) in trust by the United States for the benefit of an Indian 
Tribe or an individual Indian;
    (II) by an Indian Tribe or an individual Indian, subject to 
restriction against alienation under laws of the United States; or
    (III) by a dependent Indian community;
    (iii) any land located within a region established pursuant to 
section 7(a) of the Alaska Native Claims Settlement Act (43 U.S.C. 
1606(a));
    (iv) Hawaiian Homelands, as defined in the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4221); or
    (v) those areas or communities designated by the Assistant 
Secretary of Indian Affairs of the Department of the Interior that are 
near, adjacent, or contiguous to reservations where financial 
assistance and social service programs are provided to Indians because 
of their status as Indians.
    e. Ultimate recipient. An individual that receives a mortgage loan 
from a NCDFI Relending Demonstration Program fund.
    4. Application Awards. The Agency will review, evaluate and score 
applications received in response to this notice based on the 
provisions found in this notice. Awards under the NCDFI Relending 
Demonstration Program will be made on a competitive basis using 
specific selection criteria contained in this notice. The Agency 
advises all interested parties that all expenses incurred in applying 
for this Notice are the applicant's sole risk.

B. Federal Award Information

    Type of Award: Loan.
    Fiscal Year Funds: FY 2023.
    Available Funds: $7,502,000.
    Award Amounts: A minimum loan request of $800,000 is required. 
There is no maximum loan limit. Applications with requests larger than 
$1 million will be evaluated and awarded, based on program demand.
    Anticipated Award Date: September 15, 2023.
    Performance Period: No loan shall be extended for a period 
exceeding 33 years. The interest rate will be one percent. Interest and 
principal payments will be scheduled annually. The initial principal 
and interest payment will be deferred by the Agency for 3 years. Loan 
funds must be disbursed and delivered to the ultimate recipients within 
three years from the date of loan closing.
    Renewal or Supplemental Awards: None.
    Type of Assistance Instrument: Direct loan.
    Approximate Number of Awards: The Agency anticipates making five to 
seven awards.

C. Eligibility Information

    1. Eligible Applicants. Eligible entities for these competitively 
awarded loans include certified NCDFI's as determined by the Community 
Development Financial Institutions Fund of the U.S. Department of the 
Treasury. Any delinquent debt to the Federal Government by the NCDFI or 
any principal of the NCDFI shall cause the NCDFI to be ineligible to 
receive any NCDFI Relending Demonstration Program loan funds. Agency 
loan funds may not be used to satisfy the debt.
    Debarment and suspension information is required in accordance with 
2 CFR part 180 (OMB's Guidelines to Agencies on Governmentwide 
Debarment and Suspension (Nonprocurement) (Non procurement) 
supplemented by 2 CFR part 417 (Nonprocurement Debarment and 
Suspension) if it applies. The section heading is ``What information 
must I provide before entering into a covered transaction with a 
Federal agency?'' located at 2 CFR 180.335. It is part of OMB's 
Guidance for Grants and Agreements concerning Governmentwide Debarment 
and Suspension. Applicants are not eligible if they have been debarred 
or suspended or otherwise excluded from, or ineligible for, 
participation in Federal assistance programs under 2 CFR parts 180 and 
417.
    2. Non-Eligible Applicants. Applications will not be considered for 
funding if they do not provide enough information to determine 
eligibility, are not suitable for evaluation, or are missing required 
elements as stated in this notice. All applications submitted must meet 
the eligibility in this notice and demonstrate that the loans will be 
made to ultimate recipients who meet the eligibility criteria in 7 CFR 
3550.53 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3550/subpart-B/section-3550.53.
    3. Cost Sharing or Matching. An NCDFI that receives a loan under 
this section shall be required to match not less than 20 percent of the 
amount received. The NCDFI must demonstrate ability to meet the 
required match, or the application will be deemed ineligible. Matching 
funds from other Federal programs are allowed, unless the statutory 
requirements of the program from which the matching funds are being 
committed state that program funds cannot be used as matching funds.
    (a) Matching funds must be in the form of cash or confirmed funding 
commitments. Matching funds must also be committed for a period of not 
less than the loan disbursement period of 3 years.
    (b) In-kind contributions such as salaries, donated time and 
effort, real and nonexpendable personal property, and goods and 
services cannot be used as matching funds.
    (c) The NCDFI is responsible for demonstrating that matching funds 
are available and committed. Matching funds may be provided by the 
NCDFI or a third party.
    4. Discretionary Points. None.
    5. Other. For FY 2023 applications the following additional 
eligibility requirements apply, and the application must address the 
applicant's proposal ensuring compliance with all program delivery 
requirements (available at the website: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3550/subpart-B/section-3550.53):
    (a) The NCDFI must have been legally organized for a minimum of 
three years and have at least one year prior experience working with 
residential mortgage lending. Applicants that do not meet this 
requirement can provide documentation regarding other related 
experience (e.g., staff expertise, other loan products, homeownership 
training, counseling and assistance, etc.) to justify that they have 
adequate experience to effectively and efficiently manage and repay a 
loan through this demonstration program;
    (b) Proposals must be structured to utilize the funds, by making 
loans to eligible ultimate recipients, within 3 years from the date of 
award;
    (c) A six percent reserve for bad debt or Loan Loss Reserve (LLR) 
will be required;
    (d) An NCDFI proposing to serve ultimate recipients from one or 
more federally recognized Tribes must include letters of support with 
its application from the Tribe(s) and/or Tribally Designated Housing 
Entities/

[[Page 31671]]

Tribal Housing Authorities/Tribal Housing program(s) that serve those 
same ultimate recipients and/or a board resolution;
    (e) Loan funds may not be used for payment of the NCDFI's 
administrative costs or expenses.
    (f) Loans to ultimate recipients.
    i. NCDFI Relending Demonstration Program loan funds must be used to 
provide direct loans made to eligible ultimate recipients in accordance 
with 7 CFR 3550. Loans from the NCDFI to the ultimate recipient using 
the NCDFI Relending Demonstration Program fund must be used to buy, 
build, rehabilitate, improve, or relocate an eligible dwelling in 
accordance with 7 CFR 3550.52(a) on Tribal Land, for use by the 
borrower as a permanent residence. The following regulatory 
requirements apply to loans made to ultimate recipients:
    a. Eligible costs in accordance with 7 CFR 3550.52(d).
    b. Restrictions on use of loan funds in accordance with 7 CFR 
3550.52(e).
    c. Ultimate recipient eligibility requirements in accordance with 7 
CFR 3550.53.
    d. Calculation of Ultimate recipients' income and assets in 
accordance with 7 CFR 3550.54.
    e. Site requirements in accordance with 7 CFR 3550.56; site must 
also be located on Tribal Lands.
    f. Dwelling requirement in accordance with 7 CFR 3550.57.
    g. Ownership requirements in accordance with 7 CFR 3550.58.
    h. Security requirements in accordance with 7 CFR 3550.59, except 
that NCDFIs need not use Agency closing forms, and security will be 
vested in the NCDFI and not to the agency.
    For more information on how ultimate recipient loans can be 
processed, the Section 502 program Handbook-1-3550 can be found online 
at: https://rd.usdsa.gov/resources/directives/handbooks.
    (ii) Requests to make loans to ultimate recipients. Prior Agency 
concurrence is required when an NCDFI requests a disbursement of the 
NCDFI Relending Demonstration Program loan funds to make a loan to an 
ultimate recipient. The request for Agency concurrence in approval of a 
proposed loan to an ultimate recipient must include:
    (a) A certification by the NCDFI that:
    i. The proposed ultimate recipient is eligible for the loan;
    ii. The proposed loan is for eligible purposes;
    iii. The proposed loan complies with all applicable statutes and 
regulations;
    (b) Copies of sufficient material from the ultimate recipient's 
application and the NCDFI's related files, to allow the Agency to 
determine the:
    i. Name and address of the ultimate recipient;
    ii. Loan purposes;
    iii. Interest rate and term; and
    iv. Confirmation of the NCDFI matching funds.
    (g) NCDFI Relending Program Loan Servicing Requirements. NCDFI 
Relending Demonstration Program servicing requirements by the Agency 
are specified in this notice as follows:
    (i) Quarterly reports are due 30 days after the end of each quarter 
as described below;
    1. Reports will be required quarterly during the first year after 
loan closing and, if all loan funds are not utilized during the first 
year, quarterly reports will be continued until at least 90 percent of 
the Agency loan funds have been advanced to ultimate recipients. 
Thereafter, reports will be required semiannually. Also, the Agency may 
require quarterly reports if the NCDFI becomes delinquent in repayment 
of its loan or otherwise fails to fully comply with the provisions of 
its work plan or loan agreement, or the Agency determines that the 
NCDFI Relending Demonstration Program fund is not adequately protected 
by the current sound worth and paying capacity of the ultimate 
recipients.
    2. These reports shall contain information on the NCDFI Relending 
Demonstration Program loan fund, and when other funds are included, the 
NCDFI Relending Demonstration Program portion shall be segregated from 
the others.
    3. The reports will be collected on a form provided by the Agency 
and must include information on the NCDFI Relending Demonstration 
Program loan fund, NCDFI Relending Demonstration Program lending 
activity, income and expenses, financial condition and a summary of 
names and characteristics of the ultimate recipients the NCDFI has 
financed. When other funds are included in the reports, the NCDFI 
Relending Demonstration Program portion shall be segregated from the 
others.
    (h) Loan Closing Information
    1. The selected NCDFI will be issued a Letter of Conditions and be 
required to Complete Form RD 1942-46, ``Letter of Intent to Meet 
Conditions'', as applicable. Conditions may include but are not limited 
to completion of:

a. Form SF 3881, ``ACH Vendor Payment Enrollment Form''
b. Form SF 270, ``Request for Advance or Reimbursement''
c. HUD Form 935.2B, ``Affirmative Fair Housing Marketing Plan--Single 
Family Housing''
d. Form RD 400-8, ``Compliance Review''

    2. The selected NCDFI will execute Form RD 1940-1, ``Request for 
Obligation of Funds'' prior to obligation.
    3. The attorney, staff, or qualified professional for the NCDFI 
will work with USDA to prepare all necessary documents to close and 
secure the loan subject to USDA review and concurrence.
    4. The NCDFI will be required to execute a Loan Agreement, Security 
Agreement, Promissory Note, and Deposit Agreement at closing. These 
items are available for review at the website: https://www.rd.usda.gov/programs-services/single-family-housing-programs/native-community-development-financial-institution-relending-demonstration-program.
    5. A Financing Statement under the Uniform Commercial Code will be 
filed as security for the NCDFI Relending Demonstration Program loan 
funds account.
    All applications submitted must meet the eligibility in this notice 
and demonstrate the loans will be made to ultimate recipients who meet 
the eligibility criteria in 7 CFR 3550.53 (https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3550/subpart-B/section-3550.53).

D. Application and Submission Information

    1. Address to Request Application Package. Entities wishing to 
apply for assistance may acquire the application documents described in 
this notice from the NCDFI Relending Demonstration Program website: 
https://www.rd.usda.gov/programs-services/single-family-housing-programs/native-community-development-financial-institution-relending-demonstration-program.
    Applicants may also request paper application packages from the 
Rural Development National Office by emailing [email protected].
    2. Content and Form of Application Submission. If the applicant is 
ineligible or the application is incomplete, the Agency will inform the 
applicant in writing of the decision, reasons therefore, and its appeal 
rights and no further evaluation of the application will occur.
    The Agency requires the following information to make an 
eligibility determination:
    (i) Standard Form (SF)-424, ``Application for Federal Assistance''.

[[Page 31672]]

    (ii) A written work plan to demonstrate the NCDFI's ability to meet 
the objectives of this notice. The plan must, at a minimum:
    a. Document the NCDFI's ability to administer NCDFI Relending 
Demonstration Program funds in accordance with the provisions of this 
notice. To adequately demonstrate the ability to administer the 
program, the NCDFI must provide a complete listing of all personnel 
responsible for administering this program along with a statement of 
their qualifications and experience. The personnel may be board and/or 
loan committee members or employees of the NDCFI's organization or 
contract personnel hired for this purpose. If the personnel are to be 
contracted for, the contract between the NCDFI and the entity providing 
such service will be submitted for Agency review, and the terms of the 
contract and its duration must be sufficient to adequately service the 
Agency loan through to its maturity date. If the Agency determines the 
personnel lack the necessary expertise to administer the program, the 
loan request will not be approved;
    b. Document the NCDFI's ability to commit financial resources under 
the control of the NCDFI to the establishment of an NCDFI Relending 
Demonstration Program. This should include a statement of the sources 
of non-Agency funds for administration of the NCDFI's operations and 
financial assistance for projects;
    c. Demonstrate a need for loan funds. As a minimum, the NCDFI 
should identify a sufficient number of proposed and known ultimate 
recipients to justify Agency funding of its loan request, or include 
well developed targeting criteria for ultimate recipients consistent 
with the NCDFI's mission and strategy for the NCDFI Relending 
Demonstration Program, along with supporting statistical or narrative 
evidence that such prospective recipients exist in sufficient numbers 
to justify Agency funding of the loan request;
    d. Include a list of proposed fees and other charges it will assess 
the ultimate recipients, if applicable;
    e. Include the NCDFI's plan (specific loan purposes) for relending 
the loan funds. The plan must be of sufficient detail to provide the 
Agency with a complete understanding of what the NCDFI will accomplish 
by lending the funds to the ultimate recipient and the complete 
mechanics of how the funds will get from the NCDFI to the ultimate 
recipient. The service area, eligibility criteria, loan purposes, fees, 
rates, terms, collateral requirements, limits, priorities, application 
process, method of disposition of the funds to the ultimate recipient, 
monitoring of the ultimate recipient's accomplishments, and reporting 
requirements by the ultimate recipient's management are items that must 
be addressed by the NCDFI's relending plan;
    f. Provide a set of goals, strategies, and anticipated outcomes for 
the NCDFI's program. Outcomes should be expressed in quantitative or 
observable terms such as the number of homeowners assisted, and the 
number of homes financed, and should relate to the purpose of NCDFI 
Relending Demonstration Program; and
    g. Provide specific information as to whether and how the NCDFI 
will ensure that technical assistance is made available to ultimate 
recipients and potential ultimate recipients. Describe the 
qualifications of the technical assistance providers, the nature of 
technical assistance that will be available, and expected and committed 
sources of funding for technical assistance. If other than the NCDFI 
itself, describe the organizations providing such assistance and the 
arrangements between such organizations and the NCDFI.
    (iii) Environmental information on a form provided by the Agency 
(Form RD 1970-B, Exhibit D) for all projects positively identified as 
proposed ultimate recipient loans that are categorical exclusion 
actions under 7 CFR part 1970 subpart B.
    (iv) A pro forma balance sheet at start-up and projected balance 
sheets for at least 3 additional years; financial statements for the 
last 3 years, or from inception of the operations of the NCDFI if less 
than 3 years; and projected cash flow and earnings statements for at 
least 4 years supported by a list of assumptions showing the basis for 
the projections. Principal repayment on the NCDFI Relending 
Demonstration Program loan will not be scheduled during the first 3 
years, thus the projections for the NCDFI Relending Demonstration 
Program fund must extend to include a year with a full annual 
installment on the NCDFI Relending Demonstration Program loan.
    (v) Statement of compliance with 2 CFR 200 and last financial audit 
report.
    (vi) An agreement on a form provided by the Agency (Form RD 400-4, 
``Assurance Agreement,'' and Form RD 400-1, ``Equal Opportunity 
Agreement'') assuring compliance with title VI of the Civil Rights Act 
of 1964.
    (vii) Complete organizational documents, including documentation of 
NCDFI certification status, Certificate of Good Standing, By-laws and 
Articles of Incorporation, and evidence of authority to conduct the 
proposed activities.
    (viii) A form provided by the Agency (Form RD 1910-11, ``Applicant 
Certification Federal Collection Policies for Consumer or Commercial 
Debts'') in which the applicant certifies its understanding of the 
Federal collection policies for consumer or commercial debts.
    (ix) A statement on a form provided by the Agency (Exhibit A-1 of 
RD Instruction 1940-Q) regarding lobbying.
    3. System for Award Management and Unique Entity Identifier.
    (a) At the time of application, each applicant must have an active 
registration in the System for Award Management (SAM) before submitting 
its application in accordance with 2 CFR part 25. In order to register 
in SAM, entities will be required to create a Unique Entity Identifier 
(UEI). Instructions for obtaining the UEI are available at https://sam.gov/content/entity-registration.
    (b) Applicants must maintain an active SAM registration, with 
current, accurate and complete information, at all times during which 
it has an active Federal award or an application under consideration by 
a Federal awarding agency.
    (c) Applicants must ensure they complete the Financial Assistance 
General Certifications and Representations in SAM.
    (d) Applicants must provide a valid UEI in their application, 
unless determined exempt under 2 CFR 25.110.
    (e) The Agency will not make an award until the applicant has 
complied with all SAM requirements including providing the UEI. If an 
applicant has not fully complied with the requirements by the time the 
Agency is ready to make an award, the Agency may determine that the 
applicant is not qualified to receive a Federal award and use that 
determination as a basis for making a Federal award to another 
applicant.
    4. Submission Dates and Times. The Agency will not solicit or 
consider new scoring or eligibility information that is submitted after 
the application deadline. RHS reserves the right to ask applicants for 
clarifying information and additional verification of assertions in the 
submitted application. Completed applications must be submitted using 
one of the following methods:
     Paper submissions: The Agency must receive a paper 
application by 4:30 p.m. Pacific Time (PT), July 17, 2023. Application 
can be mailed or delivered to: USDA Rural Washington State Office, 
Attention: Andria Hively, 1835 Black Lake Blvd. SW, Olympia, WA 98512.

[[Page 31673]]

     Electronic submissions: Electronic applications must be 
submitted via email to [email protected] by 11:59 p.m. Eastern Time 
(ET) on July 17, 2023.
    The application dates and times are firm. The Agency will not 
consider any application received after the deadline.
    5. Intergovernmental Review. Not applicable.
    6. Funding Restrictions. Expenses incurred in developing 
applications will be at the applicant's cost.
    7. Other Submission Requirements. None.
    (a) Other Federal Statutes. The applicant must certify to 
compliance with other Federal Statutes and regulations by completing 
the Financial Assistance General Certification and Representations in 
SAM, including, but not limited to the following:
    (i) 7 CFR part 15, subpart A--Nondiscrimination in Federally 
Assisted Programs of the Department of Agriculture--Effectuation of 
Title VI of the Civil Rights Act of 1964. Civil Rights compliance 
includes, but is not limited to the following:
    (A) Collect and maintain data provided by ultimate recipients on 
race, sex, and national origin and ensure that ultimate recipients 
collect and maintain this data.
    (B) Race and ethnicity data will be collected in accordance with 
Office of Management and Budget (OMB) Federal Register notice, 
``Revisions to the Standards for the Classification of Federal Data on 
Race and Ethnicity'' (published October 30, 1997, at 62 FR 58782); sex 
data will be collected in accordance with title IX of the Education 
Amendments of 1972. These items should not be submitted with the 
application but should be available upon request by RD.
    (ii) The applicant and the ultimate recipient must comply with 
title VI of the Civil Rights Act of 1964, title IX of the Education 
Amendments of 1972, the Americans with Disabilities Act (ADA), Section 
504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 
1975, Executive Order 12250, and 7 CFR part 1901, subpart E.
    (iii) 2 CFR parts 200 and 400 (Uniform Administrative Requirements, 
Cost Principles and Audit Requirements for Federal Awards), or any 
successor regulation.
    (iv) Executive Order 13166, ``Improving Access to Services for 
Persons with Limited English Proficiency.'' For information on limited 
English proficiency and agency-specific guidance, go to https://www.lep.gov/.
    (v) Federal Obligation Certification on Delinquent Debt.
    (b) Risk Review: RD may request additional documentation from 
selected applicants in order to evaluate the financial, management, and 
performance risk posed by awardees as required by 2 CFR 200.206. Based 
on this risk review, RD may apply special conditions that correspond to 
the degree of risk assessed.

E. Application Review Information

    1. Criteria. All eligible and complete applications will be 
evaluated and scored based on the selection criteria contained in this 
notice. Failure to address any of the application criteria by the 
application deadline will result in the application being determined 
ineligible, and the application will not be considered for funding.
    2. Review and Selection Process. The Agency reserves the right to 
offer the applicant less than the loan funding requested. Rural 
Development National Office will utilize the following threshold 
project selection criteria for applicants in accordance with this 
notice.
    (a) Providing a financially feasible program for single family 
residential mortgage lending, which will result in affordable housing 
for very low- and low-income persons.
    (b) Serving Tribal lands in an eligible rural area with affordable 
housing for very low- and low-income persons.
    (c) Being an eligible applicant as defined in this notice.
    (e) Submitting a complete application as outlined in this notice.
    3. Scoring. For applicants meeting all the requirements listed 
above, the Rural Development National Office will use weighted criteria 
in accordance with this notice as selection for the loan recipients. 
Each application and its accompanying statement of activities will be 
evaluated and, based solely on the information contained in the 
application, the applicant's proposal will be numerically rated on each 
criterion within the range provided. The highest-ranking applicant(s) 
will be selected using the following criteria:
    a. Years experience in residential mortgage lending:

(i) Less than one: 0 points
(ii) 1-2: 1 point
(iii) 3: 2 points
(iv) 4-5: 3 points
(v) More than 5 years: 4 points

    b. Years experience in servicing residential mortgage loans:

(i) Less than one: 0 points
(ii) 1-2: 1 point
(iii) 3: 2 points
(iv) 4-5: 3 points
(v) More than 5 years: 4 points

    c. Years experience managing a loan fund:

(i) Less than one: 0 points
(ii) 1-2: 1 point
(iii) 3: 2 points
(iv) 4-5: 3 points
(v) More than 5 years: 4 points

    d. Years experience managing federal funds:

(i) Less than one: 0 points
(ii) 1-2: 1 point
(iii) 3: 2 points
(iv) 4-5: 3 points
(v) More than 5 years: 4 points

    e. Matching funding:

(i) Less than 20%: Not Eligible
(ii) 20%-40%: 1 point
(iii) More than 40%-60%: 2 points
(iv) More than 60%-80%: 3 points
(v) More than 80%-100%: 4 points

    4. Anticipated Announcement and Federal Award Dates. Awards will be 
made by September 15, 2023.

F. Federal Award Administration Information

    1. Federal Award Notices. Successful applicants will receive 
notification for funding from the USDA Rural Development National 
Office. Applicants must comply with all applicable statutes and 
regulations before the loan award will be obligated. The Agency will 
notify, in writing, applicants that have been selected for funding. At 
the time of notification, the Agency will advise the applicant what 
further information and documentation, if any, is required along with a 
timeline for submitting the additional information. If at any point the 
Agency determines it is unable to select the application for funding, 
the applicant will be informed in writing. Such notification will 
include the reasons the applicant was not selected. The Agency will 
advise applicants whose applications did not meet eligibility and/or 
selection criteria of their review rights or appeal rights in 
accordance with 7 CFR 3550.4 and/or 7 CFR part 11.
    2. Administrative and National Policy Requirements. The loan 
recipient must include the required nondiscrimination statements in any 
of their advertisements and brochures. The loan recipient will be 
required to collect and maintain data provided by the ultimate 
recipients on race, sex, and national origin and ensure recipients 
collect and maintain this data. Race and ethnicity data will be 
collected in accordance with OMB Federal Register notice, ``Revisions 
to the Standards for the Classification of Federal Data on Race and 
Ethnicity,'' (62 FR 58782), October 30, 1997. Data on recipients' sex 
will be collected in accordance with title IX of

[[Page 31674]]

the Education Amendments of 1972. These items should not be submitted 
with the application but should be available upon request by the 
Agency.
    3. Reporting. Performance reporting, including applicable forms, 
narratives, and other documentation, are to be completed and submitted 
in accordance with the provisions of this notice and the loan documents 
referenced in the `other' section of this notice. Further, all 
borrowers must submit an audit or financial information pursuant to 2 
CFR part 200 covering the defined period of performance as outlined in 
this notice and the Agreements referenced in the `other' section of 
this notice.

G. Federal Awarding Agency Contact(s)

    For general questions about this announcement, please contact Brian 
Hudson, Finance and Loan Analyst, Single Family Housing Direct 
Division, Special Programs and New Initiatives Branch at (608) 697-7725 
(voice) (this is not a toll-free number) or [email protected]. 
Applicants wanting to apply for assistance may download the application 
documents and requirements as stated in this notice from the NCDFI 
Relending Demonstration Program website: https://www.rd.usda.gov/programs-services/single-family-housing-programs/native-community-development-financial-institution-relending-demonstration-program.

H. Other Information

    1. Paperwork Reduction Act. RHS has concluded that the reporting 
requirements contained in this NOFA will involve less than 10 persons 
and does not require an approval under the provisions of the Act. In 
accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 3501 et 
seq.), OMB must approve all collection of information as a requirement 
for ``answers to * * * identical reporting or recordkeeping 
requirements imposed on ten or more persons * * *.'' (44 U.S.C. 
3502(3)(A).)
    2. National Environmental Policy Act. All recipients under this 
notice are subject to the requirements of 7 CFR part 1970 available at 
the website: https://rd.usda.gov/resources/environmental-studies/environmental-guidance and must comply in accordance with 7 CFR 3550.5.
    3. Federal Funding Accountability and Transparency Act. All 
applicants, in accordance with 2 CFR part 25, must be registered in SAM 
and have a UEI number as stated in Section D.3, of this notice. All 
recipients of Federal financial assistance are required to report 
information about first-tier sub-awards and executive total 
compensation in accordance with 2 CFR part 170.
    4. Civil Rights Act. All loans made under this notice are subject 
to title VI of the Civil Rights Act of 1964 as required by the USDA (7 
CFR part 15, subpart A--Nondiscrimination in Federally-Assisted 
Programs of the Department of Agriculture--Effectuation of Title VI of 
the Civil Rights Act of 1964) and section 504 of the Rehabilitation Act 
of 1973, title VIII of the Civil Rights Act of 1968, title IX, 
Executive Order 13166 (Limited English Proficiency), Executive Order 
11246, and the Equal Credit Opportunity Act of 1974.
    5. Non-Discrimination Statement. In accordance with Federal civil 
rights law and USDA civil rights regulations and policies, USDA, its 
Mission Areas, agencies, staff offices, employees and institutions 
participating in or administering USDA programs are prohibited from 
discrimination 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 711 Relay Service.
    To file a program discrimination complaint, the complainant should 
complete the USDA Program Discrimination Complaint Form AD-3027 (PDF), 
which can be obtained online at: https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint, from any USDA office, by 
calling (866) 632-9992 or by writing a letter addressed to USDA, and at 
any USDA office or write 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 the 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: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Joaquin Altoro,
Administrator, Rural Housing Service, USDA Rural Development.
[FR Doc. 2023-10605 Filed 5-17-23; 8:45 am]
BILLING CODE 3410-XV-P