[Federal Register: March 14, 2005 (Volume 70, Number 48)]
[Notices]
[Page 12569-12575]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14mr05-142]
[[Page 12569]]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice for Requests for Proposals for Guaranteed Loans Under the
Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal
Year 2005
AGENCY: Rural Housing Service, USDA.
ACTION: Notice.
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SUMMARY: This is a request for proposals for guaranteed loans under the
section 538 Guaranteed Rural Rental Housing Program (GRRHP) pursuant to
7 CFR 3565.4 for Fiscal Year (FY) 2005 subject to the availability of
funding. FY 2005 funding for the section 538 program is $99.2 million.
Applicants 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. 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 Rural Development Instructions Web site address http://
www.rurdev.usda.gov/regs.
Eligible lenders are invited to submit responses for the
development of affordable rental housing to serve rural America. The
Rural Housing Service (RHS) will review responses submitted by eligible
lenders, on the lender's letterhead, and signed by both the prospective
borrower and lender. Although a complete application is not required in
response to this Notice, eligible lenders may submit a complete
application concurrently with the response. The submission of a
complete application will not affect the scoring process.
DATES: The RHS will review and score all responses received through
June 13, 2005. Those responses that are selected that subsequently
submit complete applications and meet all Federal environmental
requirements will receive commitments to the extent an appropriation
act provides funding for GRRHP for FY 2005 until all funds are
expended. If any FY 2005 funds have not been exhausted by June 13,
2005, the Agency will continue reviewing and scoring NOFA responses
every month after June 13, 2005. Each month after June 13, 2005, the
Agency will select proposals with a threshold score of 25 or higher
with priority being given based on score rank until all funds are
expended. Priority for the selection of proposals that meet the
threshold score of 25 will be given to the highest scoring proposals. A
Notice will be placed in the Federal Register when all funds are
committed for FY 2005.
Eligible lenders intending to mail a response or application must
provide sufficient time to permit delivery to the Submission Address on
or before the closing deadline date and time. Acceptance by a U.S. Post
Office or private mailer does not constitute delivery. Postage due
responses and applications will not be accepted.
Submission Address: Eligible lenders will send responses to the
Multi-Family Housing Director in the State Office where the project
will be located. Rural Development State Offices, their addresses,
telephone numbers, and person to contact follows:
Note: Telephone numbers listed are not toll-free.
Alabama State Office
Suite 601, Sterling Centre
4121 Carmichael Road
Montgomery, AL 36106-3683
(334) 279-3455
TDD (334) 279-3495
James B. Harris
Alaska State Office
800 West Evergreen, Suite 201
Palmer, AK 99645
(907) 761-7740
TDD (907) 761-8905
Debbie Andrys
Arizona State Office
Phoenix Courthouse and Federal Building
230 North First Ave., Suite 206
Phoenix, AZ 85003-1706
(602) 280-8765
TDD (602) 280-8706
Johnna Vargas
Arkansas State Office
700 W. Capitol Ave., Room 3416
Little Rock, AR 72201-3225
(501) 301-3250
TDD (501) 301-3063
Cathy Jones
California State Office
430 G Street, 4169
Davis, CA 95616-4169
(530) 792-5830
TDD (530) 792-5848
Jeff Deiss
Colorado State Office
655 Parfet Street, Room E100
Lakewood, CO 80215
(720) 544-2923
TDD (800) 659-2656
Mary Summerfield
Connecticut
Served by Massachusetts State Office
Delaware and Maryland State Office
4607 South Dupont Highway
PO Box 400
Camden, DE 19934-9998
(302) 697-4353
TDD (302) 697-4303
Pat Baker
Florida & Virgin Islands State Office
4440 N.W. 25th Place
Gainesville, FL 32606-6563
(352) 338-3465
TDD (352) 338-3499
Elizabeth M. Whitaker
Georgia State Office
Stephens Federal Building
355 E. Hancock Avenue
Athens, GA 30601-2768
(706) 546-2164
TDD (706) 546-2034
Wayne Rogers
Hawaii State Office
(Services all Hawaii, American Samoa Guam, and Western Pacific)
Room 311, Federal Building
154 Waianuenue Avenue
Hilo, HI 96720
(808) 933-8305
TDD (808) 933-8321
Jack Mahan
Idaho State Office
Suite A1
9173 West Barnes Dr.
Boise, ID 83709
(208) 378-5630
TDD (208) 378-5644
LaDonn McElligott
Illinois State Office
2118 West Park Court, Suite A
Champaign, IL 61821-2986
(217) 403-6222
TDD (217) 403-6240
Barry L. Ramsey
Indiana State Office
5975 Lakeside Boulevard
Indianapolis, IN 46278
(317) 290-3100 (ext. 423)
TDD (317) 290-3343
John Young
Iowa State Office
210 Walnut Street Room 873
Des Moines, IA 50309
(515) 284-4666
TDD (515) 284-4858
Sue Wilhite
Kansas State Office
1303 SW. First American Place, Suite 100
Topeka, KS 66604-4040
(785) 271-2721
TDD (785) 271-2767
Virginia M. Hammersmith
Kentucky State Office
771 Corporate Drive, Suite 200
Lexington, KY 40503
(859) 224-7325
TDD (859) 224-7422
Paul Higgins
Louisiana State Office
3727 Government Street
Alexandria, LA 71302
(318) 473-7962
TDD (318) 473-7655
Yvonne R. Emerson
Maine State Office
967 Illinois Ave., Suite 4
PO Box 405, Bangor, ME 04402-0405
(207) 990-9110
TDD (207) 942-7331
[[Page 12570]]
Bob Nadeau
Maryland
Served by Delaware State Office
Massachusetts, Connecticut, & Rhode Island State Office
451 West Street, Amherst, MA 01002
(413) 253-4333
TDD (413) 253-4590
Donald Colburn
Michigan State Office
3001 Coolidge Road, Suite 200
East Lansing, MI 48823
(517) 324-5192
TDD (517) 337-6795
Ghulam R. Simbal
Minnesota State Office
375 Jackson Street Building, Suite 410
St. Paul, MN 55101-1853
(651) 602-7782
TDD (651) 602-7830
Peter Lundquist
Mississippi State Office
Federal Building, Suite 831
100 W. Capitol Street
Jackson, MS 39269
(601) 965-4325
TDD (601) 965-5850
Darnella Smith-Murray
Missouri State Office
601 Business Loop 70 West
Parkade Center, Suite 235
Columbia, MO 65203
(573) 876-0990
TDD (573) 876-9480
Colleen James
Montana State Office
900 Technology Blvd. Suite B
Bozeman, MT 59715
(406) 585-2565
TDD (406) 585-2562
Deborah Chorlton
Nebraska State Office
Federal Building, Room 152
100 Centennial Mall N
Lincoln, NE 68508
(402) 437-5594
TDD (402) 437-5093
Phil Willnerd
Nevada State Office
1390 South Curry Street
Carson City, NV 89703-9910
(775) 887-1222 (ext. 25)
TDD (775) 885-0633
Angilla Denton
New Hampshire State Office
Concord Center
Suite 218, Box 317
10 Ferry Street
Concord, NH 03301-5004
(603) 223-6046
TDD (603) 229-0536
Jim Fowler
New Jersey State Office
5th Floor North Suite 500
8000 Midlantic Dr.
Mt. Laurel, NJ 08054
(856) 787-7740
TDD (856) 787-7784
George Hyatt, Jr.
New Mexico State Office
6200 Jefferson St., NE., Room 255
Albuquerque, NM 87109
(505) 761-4944
TDD (505) 761-4938
Carmen N. Lopez
New York State Office
The Galleries of Syracuse
441 S. Salina Street, Suite 357 5th Floor
Syracuse, NY 13202
(315) 477-6419
TDD (315) 477-6447
George N. Von Pless
North Carolina State Office
4405 Bland Road, Suite 260
Raleigh, NC 27609
(919) 873-2066
TDD (919) 873-2003
Terry Strole
North Dakota State Office
Federal Building, Room 208
220 East Rosser
PO Box 1737
Bismarck, ND 58502
(701) 530-2049
TDD (701) 530-2113
Kathy Lake
Ohio State Office
Federal Building, Room 507
200 North High Street
Columbus, OH 43215-2477
(614) 255-2418
TDD (614) 255-2554
Melodie Taylor-Ward
Oklahoma State Office
100 USDA, Suite 108
Stillwater, OK 74074-2654
(405) 742-1070
TDD (405) 742-1007
Ivan S. Graves
Oregon State Office
101 SW. Main, Suite 1410
Portland, OR 97204-3222
(503) 414-3325
TDD (503) 414-3387
Margo Donelin
Pennsylvania State Office
One Credit Union Place, Suite 330
Harrisburg, PA 17110-2996
(717) 237-2281
TDD (717) 237-2261
Martha Eberhart
Puerto Rico State Office
654 Munoz Rivera Avenue
IBM Plaza, Suite 601
Hato Rey, PR 00918
(787) 766-5095 (ext. 249)
TDD (787) 766-5332
Lourdes Colon
Rhode Island
Served by Massachusetts State Office
South Carolina State Office
Strom Thurmond Federal Building
1835 Assembly Street, Room 1007
Columbia, SC 29201
(803) 253-3432
TDD (803) 765-5697
Larry D. Floyd
South Dakota State Office
Federal Building, Room 210
200 Fourth Street, SW.
Huron, SD 57350
(605) 352-1132
TDD (605) 352-1147
Roger Hazuka or Pam Reilly
Tennessee State Office
Suite 300
3322 West End Avenue
Nashville, TN 37203-1084
(615) 783-1375
TDD (615) 783-1397
G. Benson Lasater
Texas State Office
Federal Building, Suite 102
101 South Main
Temple, TX 76501
(254) 742-9758
TDD (254) 742-9712
Julie Hayes
Utah State Office
Wallace F. Bennett Federal Building
125 S. State Street, Room 4311
Salt Lake City, UT 84147-0350
(801) 524-4325
TDD (801) 524-3309
Janice Kocher
Vermont State Office
City Center, 3rd Floor
89 Main Street
Montpelier, VT 05602
(802) 828-6021
TDD (802) 223-6365
Heidi Setien
Virgin Islands
Served by Florida State Office
Virginia State Office
Culpeper Building, Suite 238
1606 Santa Rosa Road
Richmond, VA 23229
(804) 287-1596
TDD (804) 287-1753
CJ Michels
Washington State Office
1835 Black Lake Blvd., Suite B
Olympia, WA 98512
(360) 704-7730
TDD (360) 704-7760
Robert Lund
Western Pacific Territories
Served by Hawaii State Office
West Virginia State Office
Federal Building
75 High Street, Room 320
Morgantown, WV 26505-7500
(304) 284-4889
TDD (304) 284-4836
Craig St. Clair
Wisconsin State Office
4949 Kirschling Court
Stevens Point, WI 54481
(715) 345-7615 (ext. 151)
TDD (715) 345-7614
Peter Kohnen
Wyoming State Office
PO Box 11005
Casper, WY 82602
(307) 233-6715
TDD (307) 233-6733
Jack Hyde
FOR FURTHER INFORMATION CONTACT: Arlene Nunes, Senior Loan Specialist,
Guaranteed Loans, Multi-Family Housing Processing Division, U.S.
Department of Agriculture, South Agriculture Building, Room 1271, STOP
0781, 1400 Independence Avenue, SW., Washington, DC 20250-0781. E-mail:
arlene.nunes@usda.gov. Telephone: (202) 401-2307. This number is not
toll-free. Hearing or speech-impaired persons may access that number by
[[Page 12571]]
calling the Federal Information Relay Service toll-free at (800) 877-
8339.
Eligiblity of Prior Year Selected Notice of Funding Availability
(NOFA) Responses: NOFA Responses selected, but not yet funded, in prior
years, are eligible for FY 2005 program dollars. Prior year NOFA
responses selected by RHS may compete for FY 2005 funding without
completing a FY 2005 response. These NOFA responses are not subject to
the scoring process. RHS will commit and obligate funds on a ``first-
come first-served basis'' only to lenders that submit a complete
application for prior year selected NOFA response, including all
Federal environmental documents required by 7 CFR part 1940, subpart G,
a Form RD 3565-1, and the $2,500 application fee. FY 2005 will be the
last fiscal year that selected prior year NOFA responses will be
considered for funding. If prior year selections do not develop into a
complete application and funds are not obligated to the subject
project, the prior year NOFA response selection will be automatically
cancelled. A new NOFA response for the project can be submitted subject
to the conditions of the then current NOFA year.
General Program Information
Program Purpose: The section 538 GRRHP is designed to increase the
supply of affordable multi-family housing through partnerships between
the RHS and major lending sources, as well as state and local housing
finance agencies and bond issuers.
Responses Must Be Submitted by: The Agency will only accept
responses from GRRHP eligible or approved lenders as described in 7 CFR
3565.102 and 3565.103 respectively.
Qualifying Properties: Qualifying properties include new
construction for multi-family housing units or acquisition of existing
structures with a minimum per unit rehabilitation expenditure
requirement in accordance with 7 CFR 3565.252. The portion of
guaranteed funds for acquisition with rehabilitation is limited to 25
percent of the program authority.
Eligible Financing Sources: Any form of Federal, state, and
conventional sources of financing can be used in conjunction with the
loan guarantee, including Home Investment Partnership Program (HOME)
grant funds, tax exempt bonds, and low income housing tax credits.
Maximum Guarantee: The maximum guarantee for a permanent loan will
be 90 percent of the unpaid balance and interest on the loan. The
maximum guarantee on a construction loan will be 90 percent of the work
in place, which have credit enhancements, or up to 90 percent of the
amount actually advanced by the lender, whichever is less.
Reimbursement of Losses: Any losses will be split on a pro-rata
basis between the lender and the RHS from the first dollar lost.
Interest Rate: RHS will accept the best rate negotiated between the
lender and prospective borrower. The lender is not required to provide
the interest rate in the response. The interest rate must be fixed over
the term of the loan.
Interest Credit: RHS will provide additional financial assistance
for at least 20 percent of the loans by providing an interest credit to
reduce the interest rate to the Long Term Monthly Applicable Federal
Rate (AFR) subject to appropriations. The interest credit will be paid
following the January 1st of the year in which the project has reached
occupancy standards, and the permanent loan note guarantee is issued.
If 20 percent of the loans have not received interest credit by June
13, 2005, then RHS will award interest credit to those loans that
initially requested interest credit and have the highest interest
credit priority score until at least 20 percent of the loans have
received interest credit. Requests for interest credit must be made in
the response. When interest credit assistance is requested, lenders
must state in the response the maximum basis points above the Long Term
Monthly AFR that will be used to calculate the interest rate. Priority
points will be given for basis points equal to or less than 250 above
the Long Term Monthly AFR. Lenders should use the Long Term Monthly AFR
in effect at the closing of the lender's loan. Lenders are not
permitted to make requests for interest credit after the selection
process has taken place.
Due to limited funding and in order to distribute interest credit
assistance as broadly as possible, the Agency has decided to limit the
interest credit to $1.5 million per loan. For example, if an eligible
request were made for interest credit on a loan of $2.5 million, up to
$1.5 million of the loan would receive interest credit. Interest credit
is not available for construction loans. Interest credit is only
available for permanent loans. Lenders with projects that are viable
with or without interest credit are encouraged to submit a response
reflecting financial and market feasibility under both funding options.
Responses requesting consideration under both options will not affect
interest credit selection. However, once the interest credit funds are
exhausted, only those responses requesting consideration under both
funding options or the Non-Interest Credit option will be further
considered.
Due to limited interest credit funds and the responsibility of RHS
to target and give priority to rural areas most in need, responses
requesting interest credit must score a minimum of 55 points under the
criteria established in this NOFA. In the event of ties, selection
between responses will be by lot.
Surcharges for Guarantee of Construction Advances: There is no
surcharge for the guarantee of construction advances for FY 2005.
Program Fees for FY 2005: The following information stipulates the
program fees.
(1) There is an initial guarantee fee of 1 percent of the total
guarantee amount, which will be due when the loan guarantee is issued.
In the case of a combination construction and permanent loan guarantee,
the 1 percent initial fee will be paid when the construction loan note
guarantee is issued. For purposes of calculating this fee, the
guarantee amount is the product of the percentage of the guarantee
times the initial principal amount of the guaranteed loan.
(2) There is an annual renewal fee of 0.5 percent of the
outstanding principal and interest of the loan. This fee will be
collected annually on January 1st of each calendar year.
(3) There is no fee for site assessment and market analysis or
preliminary feasibility in FY 2005.
(4) There is a non-refundable application fee of $2,500 when the
application is submitted.
(5) There is a flat fee of $500 when a lender requests RHS to
extend the term of a guarantee commitment.
(6) There is a flat fee of $500 when a lender requests RHS to
reopen an application when a commitment has expired.
(7) There is a flat fee of $1,250 when a lender requests RHS to
approve the transfer of property and assumption of the loan to an
eligible prospective borrower.
(8) There is no lender application fee for lender approval in FY
2005.
Eligible Lenders: An eligible lender for the section 538 GRRHP as
required by 7 CFR 3565.102 must be a licensed business entity or
Housing Finance Agency (HFA) in good standing in the state or states
where it conducts business. Lender eligibility requirements are
contained in 7 CFR 3565.102. Below is a list of some of the eligible
lender criteria under 7 CFR 3565.102:
(1) Licensed business entity that meets the qualifications and has
the
[[Page 12572]]
approval of the Secretary of Housing and Urban Development (HUD) to
make multi-family housing loans that are insured under the National
Housing Act. A complete list of HUD approved lenders can be found on
the HUD Web site at http://www.hud.gov.
(2) A licensed business entity that meets the qualifications and
has the approval of the Ginnie Mae or Freddie Mac or Fannie Mae
corporations to make multi-family housing loans that are sold to the
same corporations. A complete list of Freddie Mac approved lenders can
be found in Freddie Mac's Web site at http://www.freddiemac.com. Fannie
Mae approved lenders are found at http://www.fanniemae.com. For a list
of Ginnie Mae issuers, contact Ginnie Mae at http://www.ginniemae.gov.
(3) A state or local HFA with a top-tier rating from Moody's or
Standard & Poors, or member of the Federal Home Loan Bank system, and
the demonstrated ability to underwrite, originate, process, close,
service, manage, and dispose of multi-family housing loans in a prudent
manner.
(4) Be a GRRHP approved lender, defined as an entity with an
executed multi-family housing Lender's Agreement with RHS.
(5) Lenders that can demonstrate the capacity to underwrite,
originate, process, close, service, manage, and dispose of multi-family
housing loans in a prudent manner. In order to be approved the lender
will have to have an acceptable level of financial soundness as
determined by a lender rating service. The submission of materials
demonstrating capacity will be required if the lender's response is
selected. Lenders who are otherwise ineligible may become eligible if
they maintain a correspondent relationship with an eligible lender that
does have the capacity to underwrite, originate, process, close,
service, manage, and dispose of multi-family housing loans in a prudent
manner. In this case, the eligible lender must submit the response and
application. All contractual and legal documentation will be signed
between RHS and the lender that submitted the response and application.
GRRHP Lender Approval Application: Lenders whose responses are
selected will be notified by the RHS to submit a request for GRRHP
lender approval application within 30 days of notification. Lenders
that have received GRRHP lender approval in the past and are in good
standing do not need to reapply for GRRHP lender approval.
Submission of Documentation for GRRHP Lender Approval: All lenders
that have not yet received GRRHP lender approval must submit a complete
lender application to: Director, Multi-Family Housing Processing
Division, Rural Housing Service, U.S. Department of Agriculture, Room
1263, STOP 0781, 1400 Independence Avenue, SW., Washington, DC 20250-
0781. Lender applications must be identified as ``Section 538
Guaranteed Rural Rental Housing Program'' on the envelope.
As RHS does not have a formal application form, a complete
application consists of a cover letter requesting GRRHP lender approval
and the following documentation:
(1) Request for GRRHP lender approval on the lender's letterhead;
(2) Lenders who are HUD, Ginnie Mae, Freddie Mac or Fannie Mae
multi-family approved lenders are required to show evidence of this
status, such as a copy of a letter designating the distinction;
(3) The lender's Loan Origination, Loan Servicing and Portfolio
Management Handbooks. These handbooks should detail the lender's
policies and procedures on loan origination through termination for
multi-family loans;
(4) Portfolio performance data;
(5) Copies of standard documents that will be used in processing
GRRHP loans;
(6) Resumes and qualifications of key personnel that will be
involved in the GRRHP;
(7) Identification of standards and processes that deviate from
those outlined in the GRRHP Origination and Servicing Handbook (HB-1-
3565) found at http://rdinit.usda.gov/regs;
(8) A copy of the most recent audited financial statements;
(9) Lender specific information including: (a) Legal name and
address, (b) list of principal officers and their responsibilities, (c)
certification that the officers and principals of the lender have not
been debarred or suspended from Federal programs, (d) Form AD 1047, (e)
certification that the lender is not in default or delinquent on any
Federal debt or loan, or possesses as an outstanding finding of
deficiency in a federal housing program, and (f) certification of the
lender's credit rating; and
(10) Documentation on bonding and insurance.
GRRHP Lender Approval Requirements: Lenders who request GRRHP
lender approval must meet the standards stipulated in the 7 CFR
3565.103.
Lender Responsibilities: Lenders will be responsible for the full
range of loan origination, underwriting, management, servicing,
compliance issues and property disposition activities associated with
their projects. The lender will be expected to provide guidance to the
prospective borrower on the RHS requirements during the application
phase. Once the guarantee is issued, the lender is expected to service
each loan it underwrites or contract these services to another capable
entity.
Discussion of Notice
Content of Notice Responses: All responses require lender
information and project specific data. Incomplete responses will not be
considered for funding. Lenders will be notified of incomplete
responses. Complete responses are to include a signed cover letter from
the lender on the lender's letterhead and the following information:
(1) Lender certification--The lender must certify that the lender
will make a loan to the prospective borrower for the proposed project,
under specified terms and conditions subject to the issuance of the
GRRHP guarantee. Lender certification must be on the lender's
letterhead and signed by both the lender and the prospective borrower.
(2) Project specific data--The lender must submit the project
specific data below on the lender's letterhead, signed by both the
lender and the prospective borrower.
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Lender Name Insert the lender's name.
-------------------------------------------
Lender Tax ID Insert lender's tax ID
.
-------------------------------------------
Lender Contact Name Name of the lender contact
for loan.
-------------------------------------------
Mailing Address Lender's complete mailing
address.
-------------------------------------------
Phone Phone for lender
contact.
-------------------------------------------
[[Page 12573]]
Fax Insert lender's fax .
-------------------------------------------
E-mail Address Insert lender contact e-mail
address.
-------------------------------------------
Borrower Name and Organization Type State whether borrower is a
Limited Partnership,
Corporation, Indian Tribe,
etc.
-------------------------------------------
Tax Classification Type State whether borrower is
for profit, not for profit,
etc.
-------------------------------------------
Borrower Tax ID Insert borrower's tax ID
.
-------------------------------------------
Borrower Address, including County Insert borrower's address
and county.
-------------------------------------------
Borrower Phone Insert borrower's phone
.
-------------------------------------------
Principal or Key Member for the Borrower Insert name and title.
-------------------------------------------
Borrower Information and Statement of Attach relevant information.
Housing Development Experience
-------------------------------------------
New Construction or Acquisition with State whether the project is
Rehabilitation new construction or
acquisition with
rehabilitation.
-------------------------------------------
Project Location Town or City Town or city in which the
project is located.
-------------------------------------------
Project County County in which the project
is located.
-------------------------------------------
Project State State in which the project
is located.
-------------------------------------------
Project Zip Code Insert zip code.
-------------------------------------------
Project Congressional District Congressional District for
project location.
-------------------------------------------
Project Name Insert project name.
-------------------------------------------
Project Type Family, senior (all
residents 55 years or
older), or mixed.
-------------------------------------------
Property Description and Proposed Provide as an attachment.
Development Schedule
-------------------------------------------
Total Project Development Cost Enter amount for total
project.
-------------------------------------------
of Units Insert the of
units in the project.
-------------------------------------------
Ratio of 3-5 bedroom units to total units Insert percentage of 3-5
bedroom units to total
units.
-------------------------------------------
Cost Per Unit Total development cost
divided by of
units.
-------------------------------------------
Rent Proposed rent structure.
-------------------------------------------
Median Income for Community Provide median income for
the community.
-------------------------------------------
Evidence of Site Control Attach relevant information.
-------------------------------------------
Description of Any Environmental Issues Attach relevant information.
-------------------------------------------
Loan Amount Insert the loan amount.
-------------------------------------------
Interest Credit (IC) Is interest credit requested
for this loan? (Yes or No)
-------------------------------------------
Basis Points over the Long Term Monthly Lenders seeking interest
Applicable Federal Rate (for interest credit must provide the
credit requests only) maximum basis points above
the Long Term Monthly AFR
that will be used to
calculate the interest
rate. Priority points will
be given for basis points
equal to or less than 250
above the Long Term Monthly
AFR. Lenders should use the
Long Term Monthly AFR in
effect at the closing of
the lender's loan.
-------------------------------------------
If Above Is Yes, Should Proposal Be If Yes, proposal must show
Considered Under Non-IC Selection if IC financial feasibility for
Funds Are Exhausted? Non-IC consideration.
-------------------------------------------
Borrower's Proposed Equity Insert amount.
-------------------------------------------
Tax Credits Will the project be
allocated tax credits? How
much? What is the estimated
value of the tax credits
awarded?
-------------------------------------------
Other Sources of Funds List all funding sources
other than tax credits and
amounts for each source.
-------------------------------------------
[[Page 12574]]
Loan to Total Development Cost Guaranteed loan divided by
the total development costs
of project.
-------------------------------------------
Debt Coverage Ratio Net Operating Income divided
by debt service payments.
-------------------------------------------
Percentage of Guarantee Percentage guarantee
requested.
-------------------------------------------
Collateral Attach relevant information.
-------------------------------------------
Empowerment Zone(EZ) or Enterprise Yes or No. Is the project in
Community(EC), Colonia or Tribal Lands a recognized EZ or EC,
Colonia or on an Indian
Reservation?
-------------------------------------------
Population Must be within the 20,000
population limit set for
the program.
-------------------------------------------
Is a Guarantee for Construction Being State yes or no. The Agency
Requested? Are Advances Being Requested? will guarantee construction
advances, only as part of a
combination construction
and permanent loan.
-------------------------------------------
Loan Term Up to a 40-year amortized
loan. Balloon mortgages
with a minimum 25-year term
are eligible.
------------------------------------------------------------------------
Scoring of Priority Criteria for Selection of Projects: All 2005
NOFA responses will be scored based on the criteria set forth below to
establish their priority for obligation of funds. Priority criteria
include population size, median income, loan to development cost ratio,
highest percentage of 3-5 bedroom units to total units, and location in
Empowerment Zones/Enterprise Communities or on Tribal Land. Prior to
June 13, 2005, projects with an overall score of 25 points and a loan
to development cost ratio less than 70 percent will be processed and,
when ready, obligated on a first-come-first-serve basis, provided funds
are available. Projects that score less than 25 points, and projects
that score 25 points or more and do not have a loan to development cost
ratio less than 70 percent, may be processed up to the point of
obligation, but they will not be obligated until after June 13, 2005.
Each month after June 13, 2005, the Agency will select proposals with a
threshold score of 25 or higher until all funds are expended. Priority
for the selection of proposals that meet the threshold score of 25 will
be given to the highest scoring proposals. A notice will be placed in
the Federal Register when all funds are committed for FY 2005.
Scoring of Priority Criteria for Selection of Projects With
Interest Credit Requests: RHS will allocate points to projects with
requests for interest credit. Subject to available funding, all
projects scoring 55 points or more on the six priority criteria below
and demonstrate a need for the interest credit subsidy will receive
interest credit awards.
The six priority criteria for projects with requests for interest
credit are listed below.
Priority 1--Projects located in eligible rural communities with the
lowest populations will receive the highest points.
------------------------------------------------------------------------
Population size Points
------------------------------------------------------------------------
0-5,000 people................................................ 15
5,001-10,000 people........................................... 10
10,001-15,000 people.......................................... 5
15,001-20,000 people.......................................... 0
------------------------------------------------------------------------
Priority 2--The most needy communities as determined by the median
income from the most recent census data will receive points. The RHS
will allocate points to projects located in communities having the
lowest median income. Points for median income will be awarded as
follows:
------------------------------------------------------------------------
Median income (dollars) Points
------------------------------------------------------------------------
Less than $35,000............................................. 20
$35,000-less than $45,000..................................... 15
$45,000-less than $55,000..................................... 10
$55,000-less than $65,000..................................... 5
$65,000 or more............................................... 0
------------------------------------------------------------------------
Priority 3--Projects that demonstrate partnering and leveraging in
order to develop the maximum number of units and promote partnerships
with state and local communities will also receive points. Points will
be awarded as follows:
------------------------------------------------------------------------
Loan to total development cost ratio (percentage %) Points
------------------------------------------------------------------------
90-100........................................................ 0
Less than 90-70............................................... 15
Less than 70-50............................................... 20
Less than 50.................................................. 30
------------------------------------------------------------------------
Priority 4--The development of projects on Tribal Lands, or in an
Empowerment Zone or Enterprise Community will receive points. The RHS
will attribute 20 points to projects that are developed in any of the
locations described in this priority. The development of projects in a
Colonia or in a place identified in the State's Consolidated Plan or
State Needs Assessment as a high need community for multi-family
housing will receive points. The RHS will attribute 20 points to
projects that are developed in any of the locations described in this
priority.
Priority 5--RHS will award points for basis points above the long
term monthly AFR used to calculate the interest rate. Lenders should
use the Long Term Monthly AFR in effect at the closing of the lender's
loan. The score for basis points is as follows:
------------------------------------------------------------------------
Basis points Points
------------------------------------------------------------------------
More than 250 basis points.................................... -20
200 to 250 basis points, inclusive............................ 10
100 to 199 basis points, inclusive............................ 15
0 to 99 basis points, inclusive............................... 20
------------------------------------------------------------------------
Priority 6--The RHS will award points to projects with the highest
ratio of 3-5 bedroom units to total units as follows:
------------------------------------------------------------------------
Ratio of 3-5 bedroom units to total units Points
------------------------------------------------------------------------
More than 50%................................................. 6
21%-50%....................................................... 5
Less than 21%-more than 0%.................................... 1
------------------------------------------------------------------------
Notifications: Responses will be reviewed for completeness and
eligibility. The RHS will notify those lenders whose responses are
selected via letter. The RHS will request lenders without GRRHP lender
approval to apply for GRRHP lender approval within 30 days upon receipt
of notification of selection. For information regarding GRRHP lender
approval, please refer to the section entitled ``Submission of
Documentation for GRRHP Lender Approval'' in this Notice.
Lenders will also be invited to submit a complete application and
the required application fee of $2,500 to the Rural Development State
Office where the project is located.
Submission of GRRHP Applications: Notification letters will
instruct lenders
[[Page 12575]]
to contact the Rural Development State Office immediately following
notification of selection to schedule required agency reviews.
Rural Development State Office staff will work with lenders in the
development of an application package. Required documentation for a
complete application package is stated in section 3 of chapter 4 of HB-
1-3565.
The deadline for the submission of a complete application and
application fee is 90 days from the date of notification of response
selection. If the application and fee are not submitted within 90 days
from the date of notification, the selection is subject to
cancellation, thereby allowing another response that is ready to
proceed with processing to be selected.
Obligation of Program Funds: The RHS will only obligate funds to
projects that meet the requirements for obligation, including
undergoing a satisfactory environmental review in accordance with the
National Environmental Protection Act (NEPA) and lenders who have
submitted the $2,500 application fee and completed Form RD 3565-1 for
the selected project.
Conditional Commitment: Once required documents for obligation and
the application fee are received and all NEPA requirements have been
met, the Rural Development State Office will issue a conditional
commitment, which stipulates the conditions that must be fulfilled
before the issuance of a guarantee, in accordance with 7 CFR 3565.303.
Issuance of Guarantee: The RHS State Office will issue a guarantee
to the lender for a project in accordance with 7 CFR 3565.303. No
guarantee can be issued without a complete application, review of
appropriate certifications, satisfactory assessment of the appropriate
level of environmental review, and the completion of any conditional
requirements.
Dated: March 3, 2005.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. 05-4776 Filed 3-11-05; 8:45 am]
BILLING CODE 3410-XV-C