Rural Housing Service January 2009 – Federal Register Recent Federal Regulation Documents

This is a request for proposals for loan guarantees under the section 538 Guaranteed Rural Rental Housing Program (GRRHP) pursuant to 7 CFR 3565.4 for Fiscal Year (FY) 2009 subject to the availability of funding. FY 2008 funding for the section 538 program was $129,090,000. For FY 2009, there are approximately $2 million in additional funds for GRRHP properties that are located in a presidentially declared disaster area. Disaster funds may be used for new construction or repair and rehabilitation. To be eligible for these disaster funds, a property must be located in a county affected by hurricanes, floods, and other natural disasters occurring during 2008 for which the President declared a major disaster under Title IV of the Robert T. Stafford and Disaster and Emergency Assistance of 1974. Applicants must notify the Rural Development contact person for the respective state, as indicated in the ``Submission Address'' section of this notice, that their project is located in an eligible disaster zone and that they want the project considered for these funds. Applicants for both general program funding or disaster funds will submit proposals in the form of ``RESPONSES.'' The commitment of program dollars will be made to applicants of selected responses that have fulfilled the necessary requirements for obligation. Expenses incurred in developing applications will be at the applicant's risk. The following paragraphs outline the timeframes, eligibility requirements, lender responsibilities, and the overall response and application processes. The GRRHP operates under 7 CFR part 3565. The GRRHP Origination and Servicing Handbook (HB-1-3565) is available to provide lenders and the general public with guidance on program administration. HB-1-3565, which contains a copy of 7 CFR part 3565 in Appendix 1, can be found at the Agency's Instructions Web site address https://www.rurdev.usda.gov/ regs/hblist.html#hbw6. Eligible lenders are invited to submit responses for the new construction and the acquisition with rehabilitation of affordable rural rental housing. Also eligible is the revitalization, repair, and transfer (as stipulated in 7 CFR 3560.406) of existing direct section 515 housing (transfer costs are subject to Agency approval and must be an eligible use of loan proceeds as listed in 7 CFR 3565.205), and properties involved in the Agency's multi-family preservation and revitalization program (MPR). Equity payments, as stipulated in 7 CFR 3560.406, in connection with the transfer of existing direct section 515 housing, are an eligible use of guaranteed loan proceeds. In order to be considered, the transfer of direct section 515 housing and MPR projects must need repairs and undergo revitalization of a minimum of $6,500 per unit. A Section 538 guaranteed loan used in conjunction with a section 515 transfer that includes an equity payment and that qualifies for an interest credit award, will receive interest credit according to the following schedule:

The Rural Housing Service is delaying the effective date of a direct final rule, which was published on November 4, 2008 to amend its existing income limit structure for the Single Family Housing Guaranteed Loan Program.