[Federal Register: March 20, 2006 (Volume 71, Number 53)]
[Notices]
[Page 13954-13958]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20mr06-17]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Funding Availability (NOFA): Section 515 Multi-Family
Housing Preservation Revolving Loan Fund (PRLF) Demonstration Program
for Fiscal Year 2006
AGENCY: Rural Housing Service, USDA.
ACTION: Notice.
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SUMMARY: The Rural Housing Service, (RHS), an Agency under USDA Rural
Development, announces the availability of funds and the timeframe to
submit applications for loans to private non-profit organizations, or
such non-profit organizations' affiliate loan funds and State and local
housing finance agencies, to carry out a housing demonstration program
to provide revolving loans for the preservation and revitalization of
low-income multi-family housing. Housing that is assisted by this
demonstration program must be financed by USDA Rural Development
through its multi-family housing loan program under section 515 of the
Housing Act of 1949. This demonstration program will be achieved
through loans made to intermediaries that establish programs for the
purpose of providing loans to ultimate recipients for the preservation
and revitalization of section 515 multi-family housing as affordable
housing.
DATES: The deadline for receipt of all applications in response to this
NOFA is 5 p.m., Eastern Time, June 19, 2006. The application closing
deadline is firm as to date and hour. The Agency will not consider any
application that is received after the closing deadline. Applicants
intending to mail applications must provide sufficient time to permit
delivery on or before the closing deadline. Acceptance by a post office
or private mailer does not constitute delivery. Facsimile (FAX), and
postage due applications will not be accepted.
FOR FURTHER INFORMATION CONTACT: Henry Searcy, Jr., Senior Loan
Specialist, Multi-Family Housing Processing Division, STOP 0781 (Room
1263-S), or Bonnie Edwards-Jackson, Senior Loan Specialist, Multi-
Family Housing Processing Division, STOP 0781 (Room 1239-S), U.S.
Department of Agriculture, USDA Rural Development, 1400 Independence
Ave., SW., Washington, DC 20250-0781 or by telephone at (202) 720-1753
or (202) 690-0759, or via e-mail at
Henry.Searcy@wdc.usda.gov or Bonnie.Edwards@wdc.usda.gov. (Please note the phone numbers are not
toll free numbers.)
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
Under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq., OMB must
approve all ``collections of information'' by USDA Rural Development.
The Act defines ``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)) Because
this NOFA will receive less than 10 respondents, the Paperwork
Reduction Act does not apply.
Equal Opportunity and Nondiscrimination Requirements
(1) In accordance with the Fair Housing Act, title VI of the Civil
Rights Act of 1964, the Equal Credit Opportunity Act, the Age
Discrimination Act of 1975, Executive Order 12898, the Americans with
Disabilities Act, and section 504 of the Rehabilitation Act of 1973,
neither the intermediary nor the Agency will discriminate against any
employee, proposed intermediary or proposed ultimate recipient on the
basis of sex, marital status, race, color, religion, national origin,
age, physical or mental disability (provided the proposed intermediary
or proposed ultimate recipient has the capacity to contract), because
all or part of the proposed intermediary's or proposed ultimate
recipient's income is derived from public assistance of any kind, or
because the proposed intermediary or proposed ultimate recipient has in
good faith exercised any right under the Consumer Credit Protection
Act, with respect to any aspect of a credit transaction anytime Agency
loan funds are involved.
(2) The policies and regulations contained in 7 CFR part 1901,
subpart E apply to this program.
(3) The Agency Administrator will assure that equal opportunity and
nondiscrimination requirements are met in accordance with the Fair
Housing Act, title VI of the Civil Rights Act of 1964, the Equal Credit
Opportunity Act, the Age Discrimination Act of 1975, Executive Order
12898, the Americans with Disabilities Act, and section 504 of the
Rehabilitation Act of 1973.
(4) All housing must meet the accessibility requirements found at 7
CFR 3560.60(d).
Programs Affected
This program is listed in the Catalog of Federal Domestic
Assistance under Number 10.415.
Overview
The Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 2006 (Division A of Pub. L.
109-97) provides funding for, and authorizes USDA Rural Development to,
establish a revolving loan fund demonstration program for the
preservation and revitalization of the section 515 multi-family housing
portfolio. The section 515 multi-family housing program is authorized
by section 515 of the Housing Act of 1949 (42 U.S.C. 1485) and provides
USDA Rural Development the authority to make loans for low income
multi-family housing and related facilities.
Program Administration
I. Funding Opportunities Description
This NOFA requests applications from eligible applicants for loans
to establish and operate revolving loan funds for the preservation of
low-income multi-family housing within the Agency's section 515 multi-
family housing portfolio. Agency regulations for the section 515 multi-
family housing program are published at 7 CFR part 3560.
Housing that is constructed or repaired must meet the Agency design
and construction standards and the development standards contained in 7
CFR part 1924, subparts A and C, respectively. Once constructed,
section 515 multi-family housing must be managed in accordance with the
program's management regulation, 7 CFR part 3560, subpart C. Tenant
eligibility is limited to persons who qualify as a very low-, low-, or
moderate-income household or who are eligible under the requirements
established to qualify for housing benefits provided by sources other
than the Agency, such as U.S. Department of Housing and Urban
Development section 8 assistance or Low Income Housing Tax Credit
Assistance, when a tenant receives such housing benefits. Additional
tenant eligibility requirements are contained in 7 CFR 3560.152.
[[Page 13955]]
II. Award Information
Public Law 109-97 (November 10, 2005) made funding available for
loans to private non-profit organizations, or such non-profit
organizations' affiliate loan funds and State and local housing finance
agencies, to carry out a housing demonstration program to provide
revolving loans for the preservation of the section 515 multi-family
housing portfolio. The total amount of funding available for this
program is $6,364,414.02. As required by this statute, loans to
intermediaries under this demonstration program shall have an interest
rate of no more than one percent, and the Secretary of Agriculture may
defer the interest and principal payment to USDA Rural Development for
up to three years during the first three years of the loan. The term of
such loans shall not exceed 30 years. Payments will be made on an
annual basis. Funding priority will be given to entities with equal or
greater matching funds, including housing tax credits for rural housing
assistance and to entities with experience in the administration of
revolving loan funds and the preservation of multi-family housing.
III. Eligibility Information
Applicant Eligibility
(1) Eligibility requirements--Intermediary.
(a) The types of entities which may become intermediaries are
private nonprofit organizations or such non-profit organizations'
affiliate loan funds and State and local housing finance agencies.
(b) The intermediary must have:
(i) The legal authority necessary for carrying out the proposed
loan purposes and for obtaining, giving security for, and repaying the
proposed loan.
(ii) A proven record of successfully assisting low-income multi-
family housing projects. Such record will include recent experience in
loan making and servicing loans that are similar in nature to those
proposed for the PRLF demonstration program and a delinquency and loss
rate acceptable to the Agency.
(iii) The services of a staff with loan making and servicing
expertise acceptable to the Agency.
(iv) Capitalization acceptable to the Agency.
(c) No loans will be extended to an intermediary unless:
(i) There is adequate assurance of repayment of the loan based on
the fiscal and managerial capabilities of the proposed intermediary.
(ii) The amount of the loan, together with other funds available,
is adequate to assure completion of the project or achieve the purposes
for which the loan is made.
(iii) At least 51 percent of the outstanding interest or membership
in any nonpublic body intermediary must be composed of citizens of the
United States or individuals who reside in the United States after
being legally admitted for permanent residence.
(iv) The Intermediary's Debt Service Coverage Ratio (DSCR) must be
greater than 1.1 for the fiscal year immediately prior to the year of
application and a minimum DSCR of 1 for the fiscal year two years prior
and the fiscal year three years prior to application.
(v) The Intermediary's prior calendar year audit indicates an
unqualified audited opinion as a result of the audit.
(d) Intermediaries, and the principals of the intermediaries, must
not be suspended, debarred, or excluded based on the ``List of Parties
Excluded from Federal Procurement and Nonprocurement Programs.''
(e) Intermediaries and their principals must not be delinquent on
Federal debt or be a Federal judgment debtor.
(2) Eligibility requirements--Ultimate recipients.
(a) To be eligible to receive loans from the PRLF, ultimate
recipients must:
(i) Currently have a USDA Rural Development section 515 loan for
the property to be assisted by the PRLF demonstration program, or be a
transferee of such a loan before receiving any benefits from the PRLF
demonstration program.
(ii) Be unable to provide the necessary housing from its own
resources and, except for State or local public agencies and Indian
tribes, be unable to obtain the necessary credit from other sources
upon terms and conditions the applicant could reasonably be expected to
fulfill.
(iii) Along with its principal officers (including their immediate
family), hold no legal or financial interest or influence in the
intermediary. Also, the intermediary and its principal officers
(including immediate family) must hold no legal or financial interest
or influence in the ultimate recipient.
(iv) Be in compliance with all Agency program requirements at 7 CFR
part 3560 or have an Agency approved workout plan in place which will
correct a non-compliance status.
(b) Any delinquent debt to the Federal Government, by the ultimate
recipient or any of its principals, shall cause the proposed ultimate
recipient to be ineligible to receive a loan from the PRLF. PRLF loan
funds may not be used to satisfy the delinquency.
(c) The ultimate recipient or any of its principals may not be a
Federal judgment debtor.
IV. Application and Submission Information
Application Requirements
The application must contain the following:
(1) A summary page, that is double-spaced and not in narrative
form, that lists the following items:
(a) Applicant's name.
(b) Applicant's Taxpayer Identification Number.
(c) Applicant's address.
(d) Applicant's telephone number.
(e) Name of applicant's contact person, telephone number, and
address.
(f) Amount of loan requested.
(2) Form RD 4274-1, ``Application for Loan (Intermediary Relending
Program).''
(3) A written work plan and other evidence the Agency requires to
demonstrate the feasibility of the intermediary's program to meet the
objectives of this demonstration program. The plan must, at a minimum:
(a) Document the intermediary's ability to administer this
demonstration program in accordance with the provisions of this NOFA.
In order to adequately demonstrate the ability to administer the
program, the intermediary 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
either members or employees of the intermediary's organization or
contract personnel hired for this purpose. If the personnel are to be
contracted for, the contract between the intermediary 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 ultimate conclusion. If the
Agency determines the personnel lack the necessary expertise to
administer the program, the loan request will not be approved;
(b) Document the intermediary's ability to commit financial
resources under the control of the intermediary to the establishment of
the demonstration program. This should include a statement of the
sources of non-Agency funds for administration of the intermediary's
operations and financial assistance for projects;
(c) Demonstrate a need for loan funds. At a minimum, the
intermediary must either (1) identify a sufficient number of
[[Page 13956]]
proposed and known ultimate recipients to justify Agency funding of its
loan request; or (2) include well-developed targeting criteria for
ultimate recipients consistent with the intermediary's mission and
strategy for this 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;
(e) Demonstrate to Agency satisfaction that the intermediary has
secured commitments of significant financial support from public
agencies and private organizations;
(f) Include the intermediary's plan for relending the loan funds.
The plan must be of sufficient detail to provide the Agency with a
complete understanding of what the intermediary will accomplish by
lending the funds to the ultimate recipient and the complete mechanics
of how the funds will get from the intermediary 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 must at least be
addressed by the intermediary's relending plan;
(g) Provide a set of goals, strategies, and anticipated outcomes
for the intermediary's program. Outcomes should be expressed in
quantitative or observable terms such as low-income housing complexes
rehabilitated or low-income housing units preserved, and should relate
to the purpose of this demonstration program; and
(h) Provide specific information as to whether and how the
intermediary 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
intermediary itself, describe the organizations providing such
assistance and any arrangements between such organizations and the
intermediary.
(4) 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 intermediary
if less than 3 years); and projected cash flow and earnings statements
for at least 3 years supported by a list of assumptions showing the
basis for the projections. The projected earnings statement and balance
sheet must include one set of projections which takes into
consideration a full annual installment on the PRLF loan.
(5) Form RD 400-4, ``Assurance Agreement.''
(6) Complete organizational documents, including evidence of
authority to conduct the proposed activities.
(7) Latest audit report.
(8) Form RD 1910-11, ``Applicant Certification Federal Collection
Policies for Consumer or Commercial Debts.''
(9) Form AD-1047, ``Certification Regarding Debarment, Suspension,
and other Responsibility Matters--Primary Covered Transactions.''
(10) Exhibit A-1 of RD Instruction 1940-Q, ``Certification for
Contracts, Grants, and Loans.''
(11) Tax Returns for three years prior to application, and a
current financial statement.
(12) A separate one-page information sheet listing each of the
``Application Scoring Criteria'' contained in this Notice, followed by
the page numbers of all relevant material and documentation that is
contained in the proposal that supports these criteria. Applicants are
also encouraged, but not required, to include a checklist of all of the
selection criteria as set out in more detail under Section V.
Application Review Information in this NOFA and to have their
application indexed and tabbed to facilitate the review process.
Submission address. Applications should be submitted to USDA Rural
Housing Service; Attention: Henry Searcy, Jr., Senior Loan Specialist,
Multi-Family Housing Processing Division STOP 0781 (Room 1263-S), or
Bonnie Edwards-Jackson, Senior Loan Specialist, Multi-Family Housing
Processing Division, STOP 0781 (Room 1239-S), U.S. Department of
Agriculture, USDA Rural Development, 1400 Independence Ave., SW.,
Washington, DC 20250-0781 or by telephone at (202) 720-1753 or (202)
690-0759 or via e-mail at
Henry.Searcy@wdc.usda.gov or Bonnie.Edwards@wdc.usda.gov. (Please note the phone numbers are not
toll free numbers.)
V. Application Review Information
All applications will be evaluated by a loan committee. The loan
committee will make recommendations to the Agency Administrator
concerning eligibility determinations and for the selection of
applications based on the selection criteria contained in this NOFA and
the availability of funds. The Administrator will inform applicants of
the selection status of their application within 30 days of the loan
application closing date of the NOFA.
Selection Criteria
Selection criteria points will be allowed only for factors
indicated by well documented, reasonable plans which, in the opinion of
the Agency, provide assurance that the items have a high probability of
being accomplished. The points awarded will be as specified in
paragraphs (1) through (4) of this section. In each case, the
intermediary's work plan must provide documentation that the selection
criteria have been met in order to qualify for selection criteria
points. If an application does not fit one of the categories listed, it
receives no points for that paragraph.
(1) Other funds. Points allowed under this paragraph are to be
based on documented successful history or written evidence acceptable
to the Agency that the other funds are available.
(a) The intermediary will obtain non-Agency loan or grant funds or
provide housing tax credits (measured in dollars) to pay part of the
cost of the ultimate recipients' project cost. The Intermediary shall
pledge as collateral its PRLF Revolving Fund, including its portfolio
of investments derived from the proceeds of other funds and this loan
award.
Points for the amount of funds from other sources are as follows:
(i) At least 10% but less than 25% of the total project cost--5
points;
(ii) At least 25% but less than 50% of the total project cost--10
points; or
(iii) 50% or more of the total project cost--15 points.
(b) The intermediary will provide loans to the ultimate recipient
from its own funds (not loan or grant) to pay part of the ultimate
recipients' project cost. The amount of the intermediary's own funds
will average:
(i) At least 10% but less than 25% of the total project costs--5
points;
(ii) At least 25% but less than 50% of total project costs--10
points; or
(iii) 50% or more of total project costs--15 points.
(2) Intermediary pledged security funds. The Intermediary will
pledge security funds not derived from the Agency and will be
considered security funds. The pledged security funds will be placed in
a separate account from the PRLF loan account and will remain in this
account until the PRLF revolves as described in the loan agreement. The
[[Page 13957]]
Intermediary shall contribute the pledged security funds into a
separate bank account or accounts according to their work plan. These
pledged security funds are to be placed into an interest bearing
counter-signature account until the PRLF revolves. No other funds shall
be commingled with such money.
The amount of the pledged security funds contributed to the PRLF
will equal the following percentage of the Agency PRLF loan:
(a) At least 5% but less than 15%--15 points;
(b) At least 15% but less than 25%--30 points; or
(c) 25% or more--50 points.
(3) Experience. The intermediary has actual experience in the
administration of revolving loan funds and the preservation of multi-
family housing, with a successful record, for the following number of
full years. Applicants must have actual experience in both the
administration of revolving loan funds and the preservation of multi-
family housing in order to qualify for points under this selection
criteria. If the number of years of experience differs between the two
types of experience, the type with the least number of years will be
used for this selection criteria.
(a) At least 1 but less than 3 years--5 points;
(b) At least 3 but less than 5 years--10 points;
(c) At least 5 but less than 10 years--20 points; or
(d) 10 or more years--30 points.
(4) Administrative. The Administrator may assign up to 35
additional points to an application to account for the following items
not adequately covered by the other priority criteria set out in this
section, including: The amount of funds requested in relation to the
amount of need; a particularly successful affordable housing
development record; a service area with no other PRLF coverage; a
service area with severe affordable housing problems; a service area
with emergency conditions caused by a natural disaster; an innovative
proposal; the quality of the proposed program; a work plan that is in
accord with a strategic plan, particularly a plan prepared as part of a
request for an Empowerment Zone/Enterprise Community designation; or
excellent utilization of an existing revolving loan fund program. The
Administrator will document his reasons for the points allocated.
VI. Other Administrative Requirements
(1) The following policies and regulations apply to loans to
intermediaries made in response to this NOFA:
(a) The PRLF intermediary may draw down up to 25 percent of USDA
PRLF loan funds at loan closing. Thereafter, the intermediary may draw
down, under this award, only such funds as are necessary to cover a 30-
day period in implementing its approved work plan. Advances will be
requested by the intermediary in writing. The date of such draw down
shall constitute the date the funds are advanced under the PRLF Loan
Agreement for purposes of computing interest payments.
(b) PRLF intermediaries will be required to provide the Agency with
the following reports:
(i) An annual audit;
(A) The dates of the audit report period need not coincide with
other reports on the PRLF. Audit reports shall be due 90 days following
the audit period. Audits must cover all of the intermediary's
activities. Audits will be performed by an independent certified public
accountant. An acceptable audit will be performed in accordance with
Generally Accepted Government Auditing Standards and include such tests
of the accounting records as the auditor considers necessary in order
to express an opinion on the financial condition of the intermediary.
(B) It is not intended that audits required by this program be
separate from audits performed in accordance with State and local laws
or for other purposes. To the extent feasible, the audit work for this
program should be done in connection with these other audits.
Intermediaries covered by the Office of Management and Budget Circular
A-133 should submit audits made in accordance with that circulars.
(ii) Quarterly or semiannual Performance Reports (due 30 days after
the end of the period);
(A) Performance Reports will be required quarterly during the first
year after loan closing. Thereafter, reports will be required
semiannually. Also, the Agency may resume requiring quarterly reports
if the intermediary 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 intermediary's PRLF
is not adequately protected by the current financial status and paying
capacity of the ultimate recipients.
(B) These reports shall contain information only on the PRLF loan.
If other funds are included, the PRLF portion shall be segregated from
the others. If the intermediary has more than one PRLF loan from the
Agency, a separate report shall be made for each PRLF loan.
(C) The reports will include, on a form to be provided by the
Agency, information on the intermediary's lending activity, income and
expenses, financial condition and a summary of names and
characteristics of the ultimate recipients the intermediary has
financed.
(iii) Annual proposed budget for the following year; and
(iv) Other reports as the Agency may require from time to time
regarding the conditions of the loan.
(c) USDA Rural Development may consider, on a case by case basis,
subordinating its security interest on the property to the lien of the
intermediary so that USDA Rural Development has a junior lien interest
when an independent appraisal documents that USDA Rural Development
will continue to be fully secured.
(d) The term of the loan to the ultimate recipient may not exceed
the remaining term of the USDA Rural Development loan.
(e) When loans are made to the ultimate recipients for preservation
purposes, Restrictive Use Provisions must be incorporated into the loan
documents, as outlined in 7 CFR 3560.662.
(f) The policies and regulations contained in 7 CFR part 1901,
subpart F regarding historical and archaeological properties apply to
all loans funded under this NOFA.
(g) The policies and regulations contained in 7 CFR part 1940,
subpart G regarding environmental assessments apply to all loans funded
under this NOFA. Loans to intermediaries under this program will be
considered a Categorical Exclusion under the National Environmental
Policy Act, requiring the completion of Form RD 1940-22,
``Environmental Checklist for Categorical Exclusions,'' by the Agency.
(h) These loans are subject to the provisions of Executive Order
12372 that require intergovernmental consultation with state and local
officials. USDA Rural Development conducts intergovernmental
consultations for each loan in a manner delineated in RD Instruction
1940-J which is available in any Rural Development office.
(2) The intermediary agrees to the following:
(a) To obtain the written Agency approval, before the first lending
of PRLF funds to an ultimate recipient, of:
(i) All forms to be used for relending purposes, including
application forms, loan agreements, promissory notes, and security
instruments; and
[[Page 13958]]
(ii) Intermediary's policy with regard to the amount and form of
security to be required.
(b) To obtain written approval from the Agency before making any
significant changes in forms, security policy, or the work plan. The
Agency may approve changes in forms, security policy, or work plans at
any time upon a written request from the intermediary and determination
by the Agency that the change will not jeopardize repayment of the loan
or violate any requirement of this NOFA or other Agency regulations.
The intermediary must comply with the work plan approved by the Agency
so long as any portion of the intermediary's PRLF loan is outstanding;
(c) To secure the indebtedness by pledging the PRLF, including its
portfolio of investments derived from the proceeds of the loan award,
and other rights and interests as the Agency may require;
(d) To return, as an extra payment on the loan any funds that have
not been used in accordance with the intermediary's work plan by a date
2 years from the date of the loan agreement. The intermediary
acknowledges that the Agency may cancel the approval of any funds not
yet delivered to the intermediary if revolving loan funds have not been
used in accordance with the intermediary's work plan within the 2 year
period. The Agency, at its sole discretion, may allow the intermediary
additional time to use the revolving loan funds by not more than 3
additional years. If any revolving loan funds have not been used by 5
years from the date of the loan agreement, the approval will be
canceled for any funds that have not been delivered to the intermediary
and the intermediary will return, as an extra payment on the loan, any
revolving loan funds it has received and not used in accordance with
the work plan. In accordance with the Agency approved promissory note,
regular loan payments will be based on the amount of funds actually
drawn by the intermediary.
(3) The intermediary will be required to enter into an Agency
approved loan agreement and promissory note. The promissory note will
have a term not to exceed 30 years, bear interest at no more than one
percent per annum, and provide for annual payments, provided that
interest and principal due to the Government during the first three
years of the loan may be deferred.
(4) Loans made to the PRLF ultimate recipient must meet the intent
of providing decent, safe, and sanitary rural housing and be consistent
with the requirements of title V of the Housing Act of 1949.
(5) When an intermediary proposes to make a loan from the PRLF to
an ultimate recipient, Agency concurrence is required prior to final
approval of the loan. A request for Agency concurrence in approval of a
proposed loan to an ultimate recipient must include:
(a) Certification by the intermediary 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; and
(iv) Prior to closing the loan to the ultimate recipient, the
intermediary and its principal officers (including immediate family)
hold no legal or financial interest or influence in the ultimate
recipient, and the ultimate recipient and its principal officers
(including immediate family) hold no legal or financial interest or
influence in the intermediary.
(b) Copies of sufficient material from the ultimate recipient's
application and the intermediary'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;
(iv) Location, nature, and scope of the project being financed;
(v) Other funding included in the project; and
(vi) Nature and lien priority of the collateral.
(vii) Environmental impacts of this action. This will include an
original Form RD 1940-20, ``Request for Environmental Information,''
completed and signed by the intermediary. Attached to this form will be
a statement stipulating the age of the building to be rehabilitated and
a completed and signed FEMA Form 81-93, ``Standard Flood Hazard
Determination.'' If the age of the building is over 50 years old or if
the building is either on or eligible for inclusion in the National
Register of Historic Places, then the intermediary will immediately
contact the Agency to begin section 106 consultation with the State
Historic Preservation Officer. If the building is located within a 100-
year flood plain, then the intermediary will immediately contact the
Agency to analyze any effects as outlined in 7 CFR part 1940, subpart
G, Exhibit C. The intermediary will assist the Agency in any additional
requirements necessary to complete the environmental review.
(c) Such other information as the Agency may request on specific
cases.
(6) Upon receipt of a request for concurrence in a loan to an
ultimate recipient the Agency will:
(a) Review the material submitted by the intermediary for
consistency with the Agency's preservation and revitalization
principals which include the following;
(i) There is a continuing need for the property in the community as
affordable housing.
(ii) When the transaction is complete, the property will be owned
and controlled by eligible section 515 borrowers.
(iii) The transaction will address the physical needs of the
property.
(iv) Existing tenants will not be displaced because of increased
post transaction rents.
(v) Post transaction basic rents will not exceed comparable market
rents.
(vi) Any equity loan amount will be supported by a market value
appraisal.
(b) Issue a letter concurring in the loan when all requirements
have been met or notify the intermediary in writing of the reasons for
denial when the Agency determines it is unable to concur in the loan.
Funding Restrictions
Loans made to the PRLF intermediary under this demonstration
program may not exceed $2,125,000 and may be limited by geographic area
so that multiple loan recipients are not providing similar services to
the same service areas.
Loans made to the PRLF ultimate recipient must meet the intent of
providing decent, safe, and sanitary rural housing and be consistent
with the requirements of title V of the Housing Act of 1949.
VII. Appeal Process
All adverse determination regarding applicant eligibility and the
awarding of points as part of the selection process are appealable.
Instructions on the appeal process will be provided at the time the
applicant is notified of the decision.
Dated: March 14, 2006.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. E6-3963 Filed 3-17-06; 8:45 am]
BILLING CODE 3410-XV-P