[Federal Register: March 13, 2006 (Volume 71, Number 48)]
[Notices]
[Page 12671-12674]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13mr06-23]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Notice of Availability of Hurricane Disaster Assistance
AGENCIES: Rural Housing Service, Rural Business-Cooperative Service and
Rural Utilities Service, USDA.
ACTION: Notice.
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SUMMARY: The Rural Housing Service, Rural Business-Cooperative Service,
and Rural Utilities programs are administered through USDA Rural
Development. This Notice is intended to announce the availability of
hurricane disaster assistance provided pursuant to chapter 1 of title I
of Division B of the Department of Defense, Emergency Supplemental
Appropriations to Address Hurricanes in the Gulf of Mexico and Pandemic
Influenza Act, 2006 with respect to programs and activities of the
Rural Development Mission Area of USDA.
DATES: Effective Date: March 13, 2006.
FOR FURTHER INFORMATION CONTACT: Information for the various USDA Rural
Development programs as set forth in Section I., may be obtained by
contacting your USDA Rural Development State Office as outlined in
Section I. D.
Background: The Rural Development Mission Area agencies (Rural
Housing Service, Rural Utilities Service, and Rural Business-
Cooperative Service of the United States Department of Agriculture)
provide a wide variety of grant, loan, and loan guarantee assistance to
rural residents, rural communities, and rural utility systems. The
eligibility criteria for each of the programs differ widely.
Chapter 1 of title I of Division B of the Department of Defense,
Emergency Supplemental Appropriations to Address Hurricanes in the Gulf
of Mexico and Pandemic Influenza Act, 2006 (Pub. L. 109-148) (Act)
provides USDA Rural Development with additional authorities to waive
certain program requirements and resources to address the damage caused
by the Gulf Coast hurricanes and, in some instances, provides
additional latitude in program administration for a six-month period
beginning on the date of enactment.
Based upon the extensiveness and the magnitude of the damages to
housing; community facilities such as schools, hospitals, first
responder services; businesses; water and waste disposal services and
other utilities, USDA Rural Development has determined that even with
additional resources provided in the Act, it does not have the
resources to fully implement all of the authorities provided within the
Act within the six-month time frame provided. As a result,
[[Page 12672]]
in implementing the authorities provided in the Act, USDA Rural
Development has determined that it is most efficient and effective to
provide assistance to the areas and activities that are currently
served by its programs. To the extent that USDA Rural Development has
determined that there are resources available to expand areas and
activities served by June 30, 2006, by implementing the waiver
authorities of the Act, it has implemented such waiver authority.
The matching funds requirement for the community facilities program
will be waived; however, the median family income requirements will
remain the same as provided in current regulations. Further, the six-
month limitation imposed by the Act precludes implementation of the
waivers associated with the Value-Added Producer Grant Program, the
Rural Cooperative Development Grant Program and the Renewable Energy
Systems/Energy Efficiency Improvements Program due to the time required
to prepare, review, and process applications on a competitive basis.
Therefore, these provisions of the Act will not be implemented. Should
the authority to waive certain requirements be extended, USDA Rural
Development will review, on a program-by-program basis, its ability to
implement each of the waiver provisions.
For programs for which USDA Rural Development has decided not to
implement specific provisions of the Act, applicants located in both
designated disaster areas and non-designated disaster areas may apply
for funding under the already published statutory and regulatory
provisions.
I. General Provisions
A. Rural Area
Section 105 of chapter 1 of title I of Division B of the Act
(section 105) provides that the Secretary may ``waive the application
of the rural area or similar limitations under any program funded
through an appropriations act and administered by the Rural Development
Mission Area.'' Based upon the limitations of resources and time, USDA
Rural Development has selectively implemented this waiver authority
and, therefore, has decided not to implement a general waiver for all
of its programs. In the case of the housing programs, USDA Rural
Development, with authority provided in section 541 of the Housing Act
of 1949 (42 U.S.C. 1490q), has increased the population limitation for
rural areas to 50,000 and for a limited number of communities to
75,000. With the additional funding provided for the water and waste
disposal grant program, USDA Rural Development will consider waivers of
the rural area definition on a project-by-project basis. Should
additional funding become available in the future, USDA Rural
Development will review, on a program-by-program basis, its ability to
further implement the rural area definition waiver.
B. Designated Disaster Area
For the purposes of this Notice, the designated disaster area shall
be those Presidentially-declared areas in the states of Alabama,
Florida, Louisiana, Mississippi, and Texas in accordance with the
Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42
U.S.C. 5121 et seq.
C. Limitation of Grant Amounts
The Act enables the Secretary of Agriculture to make grants under
the Renewable Energy Systems and Energy Efficiency Improvements
Program, Value-Added Producer Grants Program, Rural Cooperative
Development Grant Program, and the Community Facilities Grant Program
without regard to any grant amount limitation. The Act did not,
however, provide additional funding for these programs. Therefore, USDA
Rural Development has determined that it is most efficient and
effective to provide assistance through these programs without waiving
the statutory or regulatory grant limitations. Should additional
funding become available in the future, USDA Rural Development will
review, on a program-by-program basis, its ability to increase the
grant amount limitations.
D. Contacts for Additional Information
For questions about USDA Rural Development's programs and for
application assistance, please contact your USDA Rural Development
State Office. The contact information for your State Office can be
found at: http://www.rurdev.usda.gov. You can also reach your State
Office by calling (202) 720-4323 and pressing ``1''.
E. Programs Referenced in This Notice Are Subject to Applicable Civil
Rights Laws
These laws include the Equal Credit Opportunity Act, Title VI of
the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of
1968, as amended in 1988, Section 504 of the Rehabilitation Act of 1973
and the Age Discrimination Act of 1975.''
II. Assistance Available Through This Notice
A. Agricultural Producers
1. Description of Assistance
i. Renewable Energy--Section 105 enables USDA Rural Development to
make Renewable Energy Systems/Energy Efficiency Improvements loans,
grants and guaranteed loans in designated disaster areas with (a) a
cost share requirement not to exceed 50 percent, (b) no limitation of
the grant amount, and (c) the inclusion of businesses processing
unsegregated solid waste and paper. However, because the authority is
restricted to a six-month period following the enactment of the law and
because the Notice of Funding Availability (NOFA) for this year's grant
funding cycle has already been announced in the Federal Register on
February 13, 2006 (71 FR 7509), the above cited provisions are not
being implemented at this time. Should the authority to implement the
above cited provisions be extended, USDA Rural Development will
consider issuing a separate NOFA to address the provisions.
ii. Value-Added--Section 105 enables USDA Rural Development to make
Value-Added Producer Grants in designated disaster areas without a
matching fund requirement. However, because the authority is restricted
to a six-month period following the enactment of the law and because
USDA Rural Development does not anticipate announcing grant awards
until August 31, 2006, the matching funds requirement is not being
waived at this time. Should the authority to waive the matching funds
requirement be extended, USDA Rural Development will contemplate
reducing the matching funds requirement for successful applicants
located in the designated disaster areas, as long as the proposed
projects would still be viable with the reduced matching funds
requirement.
2. Eligibility Criteria
i. Renewable Energy--Farmers, ranchers and rural small businesses
located in rural areas are eligible to apply.
ii. Value-Added--Independent producers, agriculture producer
groups, farmer- and rancher-cooperatives, and majority-controlled
producer-based business ventures located in rural areas are eligible to
apply.
3. Statutory or Regulatory Authority
i. Renewable Energy:
7 U.S.C. 8106; and
[[Page 12673]]
7 CFR Part 4280, Subpart B, Renewable Energy Systems and
Energy Efficiency Improvements Program.
ii. Value-Added:
7 U.S.C. 1621 note;
7 CFR Part 4284, Subpart A, General Requirements for
Cooperative Services Grant Programs; and
7 CFR Part 4284, Subpart J, Value-Added Producer Grants.
B. Community Programs
1. Description of Assistance
i. Community Facilities--Section 105 enables USDA Rural Development
to make Community Facilities Grants in designated disaster areas
without regard to graduated funding or matching fund requirements.
ii. Water and Waste Disposal--The Act provides an additional $45
million in grant funds to respond to damage caused by hurricanes by
rebuilding, repairing, or otherwise improving water and waste disposal
systems in designated disaster areas.
2. Eligibility Criteria
i. Community Facilities--Public entities such as municipalities,
counties, and special-purpose districts, as well as non-profit
corporations and tribal governments in designated disaster areas are
eligible to apply.
ii. Water and Waste Disposal--Municipalities, counties, special
purpose districts, Native American Tribes and non-profit corporations
in designated disaster areas are eligible to apply. As stated in the
preamble, these funds are available to systems serving populations of
10,000 or less. However, under the authority of the waiver of rural
area definitions, the program officials will consider waivers of the
population requirement on a project-by-project basis.
3. Applicable Statutory or Regulatory Authority
i. Community Facilities:
Consolidated Farm and Rural Development Act, Section 306
(7 U.S.C. 1926(a)(1) and (19)); and
7 CFR, Part 3570, Subpart B, Community Facilities Grant
Program.
ii. Water and Waste Disposal:
7 CFR Part 1780, Water and Waste Loans and Grants; and
7 CFR Part 1778, Emergency and Imminent Community Water
Assistance Grants.
7 U.S.C. 1926a.
C. Housing
1. Description of Assistance
The Act provides the following monetary resources for USDA Rural
Development's housing programs to respond to hurricane damage in
designated disaster areas:
$1,293,103,000 in deliverable Section 502 guaranteed
homeownership funds;
$175,593,000 in deliverable Section 502 direct
homeownership funds;
$34,188,000 in deliverable Section 504 direct repair/
rehabilitation loans; and
$20,000,000 in deliverable Section 504 direct repair/
rehabilitation grants.
In addition, the Act provided the following assistance in
designated disaster areas:
Section 105 provided Rural Development the authority, for
a six-month period, to provide Section 502 guaranteed homeownership
funds to refinance any loan made to a single-family Resident who
resided in an affected county at the time of the disaster and that was
used to acquire or construct the single-family residence if the
residence will be used as the borrower's principal residence and is
located in an eligible rural area. Funds may also be used for essential
repairs or rehabilitation. Based upon the limited time frame for
enactment, Rural Development will be unable to implement these
provisions during the permitted six-month time period authorized.
Should the authority to implement the above cited provisions be
extended, Rural Development will consider issuing a separate NOFA to
address the provisions.
Under the Rural Housing Assistance Grants account, the
aforementioned funds for Section 504 direct repair/rehabilitation
grants were appropriated without age restrictions. Funds for Section
504 grants are generally provided only to persons 62 years of age and
older. USDA Rural Development intends to provide the $20 million in
Section 504 grant funds provided under the Act to applicants regardless
of age (provided the applicant has the legal authority to enter into
such a transaction). There were no time restrictions on the use of
these funds under the Act.
The Act provides that housing vouchers may be made
available to families and individuals whose residence became
uninhabitable or inaccessible as a result of the hurricanes. USDA Rural
Development is currently working with the United States Department of
Housing and Urban Development (HUD) on a ``USDA Voucher Program'' that
will serve these residents and tenants. If USDA Rural Development
intends to implement this provision of the Act, a separate
Implementation Notice will be published in the Federal Register.
2. Eligibility Criteria
i. Section 502 programs--Applicants that have an income below 80%
of the area median income for a direct homeownership loan or below 115%
of the area median income for a guaranteed homeownership loan for a
home in designated disaster areas are eligible to apply. Applicants
must have credit history that indicates reasonable ability and
willingness to meet debt obligations.
ii. Section 504 programs--Existing homeowners in designated
disaster areas that have an income that does not exceed 50% of the area
median income are eligible to apply. Loans up to $20,000 are provided
at a 1% interest rate. Grants are limited to $7,500 and only to those
who cannot afford a 1% loan. Loan applicants must have a credit history
that indicates reasonable ability and willingness to meet debt
obligations.
iii. Expanded Rural Area Definition: USDA Rural Development's
housing programs are governed by the Housing Act of 1949, as amended
(42 U.S.C. 1471, et seq.). Section 541 of the Housing Act (42 U.S.C.
1490q), which only applies to USDA Rural Development's housing
programs, provided the authority to waive population limits subsequent
to a natural disaster. Further, the statute allowed the population
limits to be waived for a period of three (3) years from the date of
declaration. Based upon this statutory authority, USDA Rural
Development immediately increased the population limits for its housing
program to 50,000 in any county or parish declared for individual
assistance as a result of Hurricanes Katrina and Rita. In addition,
USDA Rural Development included the cities of Biloxi and Gulfport,
Mississippi; Kenner, Louisiana; and the Quad cities, Hartselle and
Decatur, Alabama, all of which had populations under 75,000 to be
considered ``rural'' for housing assistance.
3. Statutory and Regulatory Authority
i. Section 502 guaranteed homeownership funds:
42 U.S.C. 1472(h); and
7 CFR Part 1980, Subpart D, Rural Housing Loans.
ii. Section 502 direct homeownership funds:
42 U.S.C. 1472; and
7 CFR Part 3550, Direct Single Family Housing Loans and
Grants.
iii. Section 504 direct repair/rehabilitation loans and grants:
[[Page 12674]]
42 U.S.C. 1474; and
7 CFR Part 3550, Direct Single Family Housing Loans and
Grants.
iv. Vouchers:
42 U.S.C. 1490(a) and 42 U.S.C. 1490(r); and
7 CFR Part 3560, Direct Multi-Family Housing Loans and
Grants.
D. Non-Profit Institutions
1. Description of the Assistance
Section 105 enables USDA Rural Development to make Rural
Cooperative Development Grants in designated disaster areas without a
matching fund requirement. However, because the authority is restricted
to a six-month period following the enactment of the law and because
USDA Rural Development does not anticipate announcing grant awards
until September 2006, the matching funds requirement is not being
waived at this time. Should the authority to waive the matching funds
requirement be extended, USDA Rural Development will contemplate
reducing the matching funds requirement for successful applicants
located in the designated disaster areas, as long as the proposed
projects would still be viable with the reduced matching funds
requirement.
2. Eligibility Criteria
Non-profit corporations and institutions of higher learning
proposing cooperative development projects in rural areas are eligible
to apply.
3. Statutory or Regulatory Authority
7 U.S.C. 1932(e);
7 CFR Part 4284, Subpart A, General Requirements for
Cooperative Services Grant Programs; and
7 CFR Part 4284, Subpart F, Rural Cooperative Development
Grants.
E. Electric and Telecommunications
1. Description of Assistance
i. Electric--The Act provides $8 million in funding to respond to
damage caused by hurricanes by covering the cost of loan modifications
such as deferring principal and interest payments on existing loans
issued to rural electric cooperatives serving designated disaster
areas.
ii. Telecommunications--The Act provides $50,000,000 in loan
guarantees to be issued to the Federal Financing Bank to respond to
damage of telecommunications service in designated disaster areas.
2. Eligibility Criteria
i. Electric--Existing borrowers located in designated disaster
areas who are experiencing difficulty in meeting debt service
obligations are eligible to apply.
ii. Telecommunications--Organizations providing or proposing to
provide telephone service in designated disaster areas including
cooperative, nonprofit, limited dividend, mutual, and commercial
companies are eligible to apply.
3. Applicable Statutory or Regulatory Authority
i. Electric:
Rural Electrification Act of 1936 (7 U.S.C. 1926 et seq.);
and
7 CFR 1721, Subpart B, Extensions of Payments of Principal
and Interest.
ii. Telecommunications:
Rural Electrification Act of 1936 (7 U.S.C. 1926 et seq.);
7 CFR Part 1735, General Policies, Types of Loans, Loan
Requirements--Telecommunications Program; and
7 CFR Part 1737, Pre-Loan Policies and Procedures Common
to Insured and Guaranteed Telecommunications Loans.
III. Emergency Declaration
Consistent with Proclamation 7925 issued by President Bush, the
USDA Rural Development Mission Area has determined that it would be
impracticable, unnecessary, and contrary to public interest to delay
the effective date of this Notice for any reason. The USDA Rural
Development Agencies need to act promptly on hurricane related needs in
the designated disaster areas. Delay is contrary to the public interest
because the regulations of USDA Rural Development agencies prescribe
policies and procedures for obtaining loans, grants, guarantees for
rebuilding critical community facilities, buildings, housing and
infrastructure such electricity, telecommunications and water and waste
disposal systems.
IV. Non-Discrimination Statement
The U. S. Department of Agriculture (USDA) prohibits discrimination
in all its programs and activities on the basis of race, color,
national origin, age, disability, and where applicable, sex, marital
status, familial status, parental status, religion, sexual orientation,
genetic information, political beliefs, reprisal, or because all or
part of an individual's income is derived from any public assistance
program. (Not all prohibited bases apply to all programs.) Persons with
disabilities who require alternative means for communication of program
information (Braille, large print, audiotape, etc.) should contact
USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a
complaint of discrimination, write to USDA, Director, Office of Civil
Rights, 1400 Independence Avenue, SW., Washington, DC 20250-9410, or
call (800) 795-3272 (voice), or (202) 720-6382 (TDD). ``USDA is an
equal opportunity provider, employer, and lender''.
Dated: March 7, 2006.
Thomas C. Dorr,
Under Secretary, Rural Development.
[FR Doc. E6-3546 Filed 3-10-06; 8:45 am]
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