[Federal Register: July 12, 2006 (Volume 71, Number 133)]
[Notices]               
[Page 39283-39293]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12jy06-36]                         

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DEPARTMENT OF AGRICULTURE

Rural Housing Service

 
Notice of Funds Availability (NOFA) Inviting Applications for the 
Rural Community Development Initiative (RCDI)

AGENCY: Rural Housing Service, USDA.

ACTION: Notice of solicitation of applications.

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SUMMARY: This Notice announces the availability of approximately $6 
million of grant funds for the RCDI program through the Rural Housing 
Service (RHS), an agency within the USDA Rural Development mission area 
herein referred to as the Agency. Applicants must provide matching 
funds in an amount at least equal to the Federal grant. These grants 
will be made to qualified intermediary organizations that will provide 
financial and technical assistance to recipients to develop their 
capacity and ability to undertake projects related to housing, 
community facilities, or community and economic development. This 
Notice lists the information needed to submit an application for these 
funds.

DATES: The deadline for receipt of an application is 4 p.m. eastern 
standard time, October 10, 2006. The application date and time are 
firm. The Agency will not consider any application received after the 
deadline.

ADDRESSES: Entities wishing to apply for assistance may download the 
application requirements delineated in this Notice from the RCDI Web 
site: http://www.rurdev.usda.gov/rhs/rcdi/index.htm. Applicants may 

also request application packages from: William Kenney, Rural Housing 
Service, Room 0183, Stop 0787, 1400 Independence Ave., SW., Washington, 
DC 20250-0787, Telephone (202) 720-1506, E-mail: 
william.kenney@wdc.usda.gov.


FOR FURTHER INFORMATION CONTACT: William Kenney, Senior Loan 
Specialist, Community Programs, RHS, USDA, STOP 0787, Rm. 0183, 1400 
Independence Ave., SW., Washington, DC 20250-0787, Telephone (202) 720-
1506, Facsimile (202) 690-0471, E-mail: william.kenney@wdc.usda.gov. 
You may also obtain information from the RCDI Web site: http://www.rurdev.usda.gov/rhs/rcdi/index.htm
.


Programs Affected

    This program is listed in the Catalog of Federal Domestic 
Assistance under Number 10.446. This program is not subject to the 
provisions of Executive Order 12372, which requires intergovernmental 
consultation with State and local officials.

Paperwork Reduction Act

    The paperwork burden has been cleared by the Office of Management 
and Budget (OMB) under OMB Control Number 0575-0180.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Housing Service.
    Funding Opportunity Title: Rural Community Development Initiative.
    Announcement Type: Initial Announcement.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.446.

Part I--Funding Opportunity Description

    Congress initially created the RCDI in fiscal year (FY) 2000 to 
develop the capacity and ability of nonprofit organizations, low-income 
rural communities, or federally recognized tribes to undertake projects 
related to housing, community facilities, or community and economic 
development in rural areas. Numerous changes have been made each year 
since.

Part II--Award Information

    Congress appropriated approximately $6 million in FY 2006 for the 
RCDI. Qualified private, nonprofit and public (including tribal) 
intermediary organizations proposing to carry out financial and 
technical assistance programs will be eligible to receive the funding. 
The intermediary will be required to provide matching funds in an 
amount at least equal to the RCDI grant. The respective minimum and 
maximum grant amount per intermediary is $50,000 and $300,000. The 
intermediary must provide a program of financial and technical 
assistance to a private nonprofit, community-based housing and

[[Page 39284]]

development organization, a low-income rural community or a federally 
recognized tribe.

Part III--Eligibility Information

A. Eligible Applicants

    Qualified private, nonprofit and public (including tribal) 
intermediary organizations. Definitions that describe eligible 
organizations and other key terms are listed below:

B. Program Definitions

    Agency--The Rural Housing Service (RHS) or its successor.
    Beneficiary--Entities or individuals that receive benefits from 
assistance provided by the recipient.
    Capacity--The ability of a recipient to finance and implement 
housing, community facilities, or community and economic development 
projects.
    Federally recognized tribes--Tribal entities recognized and 
eligible for funding and services from the Bureau of Indian Affairs, 
based on the Notice in the Federal Register published by the Bureau of 
Indian Affairs on November 25, 2005, (70 FR 71194). Tribally Designated 
Housing Entities are eligible RCDI recipients.
    Financial assistance--Funds used by the intermediary to support the 
recipient's program, including funds that pass through the intermediary 
to the recipient for eligible RCDI purposes.
    Funds--The RCDI grant and matching money.
    Intermediary--A qualified private, nonprofit, or public (including 
tribal) organization that provides financial and technical assistance 
to multiple recipients.
    Low-income rural community--An authority, district, economic 
development authority, regional council, or unit of government 
representing an incorporated city, town, village, county, township, 
parish, or borough.
    Recipient--The entity that receives the financial and technical 
assistance from the intermediary. The recipient must be a private 
nonprofit community-based housing and development organization, a low-
income rural community, or a federally recognized tribe.
    Rural and rural area--Any area other than (i) a city or town that 
has a population of greater than 50,000 inhabitants; and (ii) the 
urbanized area contiguous and adjacent to such city or town.
    Technical assistance--Skilled help in improving the recipient's 
abilities in the areas of housing, community facilities, or community 
and economic development. The Agency will determine whether a specific 
activity qualifies as technical assistance.

C. Cost Sharing or Matching

    Matching funds--Cash or confirmed funding commitments. Matching 
funds must be at least equal to the grant amount. These funds can only 
be used for eligible RCDI activities. In-kind contributions cannot be 
used as matching funds. Grant funds and matching funds must be used in 
equal proportions. This does not mean funds have to be used equally by 
line item. The request for reimbursement and supporting documentation 
must show that RCDI fund usage does not exceed the cumulative amount of 
matching funds used. Grant funds will be disbursed pursuant to relevant 
provisions of 7 CFR parts 3015, 3016, and 3019, as applicable.
    Matching funds must be used to support the overall purpose of the 
RCDI program. RCDI funds will be disbursed on a reimbursable basis 
only. No advances will be made. Matching funds cannot be expended prior 
to execution of the RCDI Grant Agreement. No reimbursement will be made 
for any funds expended prior to execution of the RCDI Grant Agreement 
unless the grantee has requested and received written Agency approval 
of the costs prior to the actual expenditure. This exception is 
applicable for up to 90 days prior to grant closing and only applies to 
grantees that have received written approval but have not executed the 
RCDI Grant Agreement. The Agency cannot retroactively approve 
reimbursement for expenditures prior to execution of the RCDI Grant 
Agreement.

D. Other

Program Requirements
    1. The recipient and beneficiary, but not the intermediary, must be 
located in an eligible rural area. The physical location of the 
recipient's headquarters office that will be receiving the financial 
and technical assistance must be in a community with a median household 
income at or below 80 percent of the State or national median household 
income. The applicable Rural Development State Office can assist in 
determining the eligibility of an area. A listing of Rural Development 
State Offices is included in this Notice.
    2. The recipients must be private nonprofit community-based housing 
and development organizations, low-income rural communities, or 
federally recognized tribes based on the RCDI definitions of these 
groups.
    3. Documentation must be submitted to verify recipient eligibility. 
Acceptable documentation varies depending on the type of recipient. 
Private nonprofit community-based housing and development organizations 
must provide a letter confirming its tax-exempt status from the IRS, a 
certificate of incorporation and good standing from the Secretary of 
State, or other similar and valid documentation of nonprofit status. 
For low-income rural community recipients, the Agency requires evidence 
the entity is a public body and census data verifying that the median 
household income of the community where the office receiving the 
financial and technical assistance is located is at, or below, 80 
percent of the State or national median household income. For Federally 
recognized tribes, the Agency needs the page listing their name from 
the current Federal Register list of tribal entities recognized and 
eligible for funding services (see the definition of federally 
recognized tribes in this Notice for details on this list).
    4. Individuals cannot be recipients.
    5. The intermediary must provide matching funds at least equal to 
the amount of the grant.
    6. The intermediary must provide a program of financial and 
technical assistance to the recipient.
    7. The intermediary organization must have been legally organized 
for a minimum of 3 years and have at least 3 years prior experience 
working with private nonprofit community-based housing and development 
organizations, low-income rural communities, or tribal organizations in 
the areas of housing, community facilities, or community and economic 
development.
    8. Proposals must be structured to utilize the grant funds within 3 
years from the date of the award.
    9. Each intermediary, whether singularly or jointly, may only 
submit one application for RCDI funds under this NOFA unless the 
intermediary's participation is limited to providing all or part of the 
matching funds.
    10. Recipients can participate in more than one RCDI application; 
however, after grant selections are made, the recipient can only 
participate in multiple RCDI grants if the type of financial and 
technical assistance they will receive is not duplicative.
    11. The intermediary and the recipient cannot be the same entity. 
The recipient can be a related entity to the intermediary, if it meets 
the definition of a recipient.
    12. A nonprofit recipient must provide evidence that it is a valid 
nonprofit when the intermediary applies for the RCDI grant.

[[Page 39285]]

Organizations with pending requests for nonprofit designations are not 
eligible.
    13. If the recipient is a low-income rural community, identify the 
unit of government to which the financial and technical assistance will 
be provided, e.g., town council or village board. The financial and 
technical assistance must be provided to the organized unit of 
government representing that community, not the community at large.
    14. Nonprofit recipients located in a rural area that is also a 
census designated place (CDP) are eligible recipients.
    15. The indirect cost category in the project budget should be used 
only when a grant applicant currently has an indirect cost rate 
approved by the Department of Agriculture or another cognizant Federal 
agency. If the applicant will charge indirect costs to the grant, 
enclose a copy of the current rate agreement. If the applicant is in 
the process of initially developing or renegotiating a rate, the 
applicant must submit the indirect cost proposal to the cognizant 
agency immediately after the applicant is advised that an award will be 
made. In no event, shall the indirect cost proposal be submitted later 
than three months after the effective date of the award. Consult OMB 
Circular A-122 for information about indirect costs.
Eligible Fund Uses
    Fund uses must be consistent with the RCDI purpose. A nonexclusive 
list of eligible grant uses includes the following:
    1. Provide financial and technical assistance to develop 
recipients' capacity and ability to undertake projects related to 
housing, community facilities, or community and economic development, 
i.e., the intermediary hires a staff person to provide technical 
assistance to the recipient or the recipient hires a staff person, 
under the supervision of the intermediary, to carry out the financial 
and technical assistance provided by the intermediary.
    2. Develop the capacity of recipients to conduct community 
development programs, e.g., homeownership education or training for 
business entrepreneurs.
    3. Develop the capacity of recipients to conduct development 
initiatives, e.g., programs that support micro-enterprise and 
sustainable development.
    4. Develop the capacity of recipients to increase their leveraging 
ability and access to alternative funding sources by providing training 
and staffing.
    5. Develop the capacity of recipients to provide the financial and 
technical assistance component for essential community facilities 
projects.
    6. Assist recipients in completing pre-development requirements for 
housing, community facilities, or community and economic development 
projects by providing resources for professional services, e.g., 
architectural, engineering, or legal.
    7. Improve recipient's organizational capacity by providing 
training and resource material on developing strategic plans, board 
operations, management, financial systems, and information technology.
    8. Purchase computers, software, and printers at the recipient 
level when directly related to the financial or technical assistance 
program being undertaken by the intermediary.
    9. Provide funds to recipients for training-related travel costs 
and training expenses related to RCDI.
Ineligible Fund Uses
    1. Funding a revolving loan fund (RLF).
    2. Construction (in any form).
    3. Intermediary preparation of strategic plans for recipients.
    4. Funding illegal activities.
    5. Grants to individuals.
    6. Funding a grant where there may be a conflict of interest, or an 
appearance of a conflict of interest, involving any action by the 
Agency.
    7. Paying obligations incurred before the beginning date or after 
the ending date of the grant agreement.
    8. Purchasing real estate.
    9. Improvement or renovation of the grantee's office space or for 
the repair or maintenance of privately owned vehicles.
    10. Any other purpose prohibited in 7 CFR parts 3015, 3016, and 
3019, as applicable.
    11. Using funds for recipient's general operating costs.
    12. Using grant or matching funds for Individual Development 
Accounts.
Program Examples
    The purpose of this initiative is to develop or increase the 
recipient's capacity through a program of financial and technical 
assistance to perform in the areas of housing, community facilities, or 
community and economic development. Strengthening the recipient's 
capacity in these areas will benefit the communities they serve. The 
RCDI structure requires the intermediary (grantee) to provide a program 
of financial and technical assistance to recipients. The recipients 
will, in turn, provide programs to their communities (beneficiaries). 
The following are examples of eligible and ineligible purposes under 
the RCDI program. (These examples are illustrative and are not meant to 
limit the activities proposed in the application. Activities that meet 
the objective of the RCDI program will be considered eligible.)
    1. The intermediary must work directly with the recipient, not the 
beneficiaries. As an example: The intermediary provides training to the 
recipient on how to conduct homeownership education classes. The 
recipient then provides ongoing homeownership education to the 
residents of the community--the ultimate beneficiaries. This ``train 
the trainer'' concept fully meets the intent of this initiative. The 
intermediary is providing financial and technical assistance that will 
build the recipient's capacity by enabling them to conduct 
homeownership education classes for the public. This is an eligible 
purpose. However, if the intermediary directly provided homeownership 
education classes to individuals in the recipient's service area, this 
would not be an eligible purpose because the recipient would be 
bypassed.
    2. If the intermediary is working with a low-income community as 
the recipient, the intermediary must provide the financial and 
technical assistance to the entity that represents the low-income 
community and is identified in the application. Examples of entities 
representing a low-income community are a village board or a town 
council. If the intermediary provides technical assistance to the board 
of directors of the low-income community on how to establish a 
cooperative, this would be an eligible purpose. However, if the 
intermediary works directly with individuals from the community to 
establish the cooperative, this is not an eligible purpose. The 
recipient's capacity is built by learning skills that will enable them 
to support sustainable economic development in their communities on an 
ongoing basis.
    3. The intermediary may provide technical assistance to the 
recipient on how to create and operate a Revolving Loan Fund (RLF). The 
intermediary may not monitor or operate the RLF. RCDI funds, including 
matching funds, cannot be used to fund RLFs.

Part IV--Application and Submission Information

A. Address to Request Application Package

    Entities wishing to apply for assistance may download the 
application documents and requirements delineated in this Notice from 
the RCDI Web site: http://www.rurdev.usda.gov/rhs/rcdi/


[[Page 39286]]

index.htm. Application information for electronic submissions may be 
found at http://www.grants.gov. Applicants may also request paper 

application packages from: William Kenney, Rural Housing Service, Room 
0183, Stop 0787, 1400 Independence Ave., SW., Washington, DC 20250-
0787, Telephone (202) 720-1506, e-mail: william.kenney@wdc.usda.gov.

B. Content and Form of Application Submission

    A complete application for RCDI funds must include the following:
    1. A summary page, double-spaced between items, listing the 
following: (This information should not be presented in narrative 
form.)
    a. Applicant's name,
    b. Applicant's address,
    c. Applicant's telephone number,
    d. Name of applicant's contact person and telephone number,
    e. Applicant's fax number,
    f. County where applicant is located,
    g. Congressional district number where applicant is located,
    h. Amount of grant request,
    i. Applicant's Tax Identification Number,
    j. Data Universal Numbering System (DUNS) number (Applicant Only),
    k. Number of recipients, and
    l. Source and amount of matching funds.
    2. A detailed Table of Contents containing page numbers for each 
component of the application.
    3. A project overview, no longer than five pages, including the 
following items, which will also be addressed separately and in detail 
under ``Building Capacity'' of the ``Evaluation Criteria.''
    a. The type of financial and technical assistance to be provided to 
the recipients and how it will be implemented.
    b. How the capacity and ability of the recipients will be improved.
    c. The overall goals to be accomplished.
    d. The benchmarks to be used to measure the success of the program.
    4. Organizational documents, such as a certificate of incorporation 
and good standing from the Secretary of State where the applicant is 
incorporated and other similar and valid documentation of non-profit 
status, from the intermediary that confirms it has been legally 
organized for a minimum of 3 years as the applicant entity.
    5. Verification of matching funds, i.e., a copy of a bank statement 
if matching funds are in cash or a copy of the confirmed funding 
commitment from the funding source. The applicant will be contacted by 
the Agency prior to grant award to verify that the matching funds 
continue to be available. The applicant will have 10 working days from 
the date of contact to submit verification of matching funds. If the 
applicant is unable to provide the verification within that timeframe, 
the application will be considered ineligible.
    6. Applicant should verify that they have a DUNS number. Applicants 
can receive a DUNS number at no cost by calling the dedicated toll-free 
DUNS Number request line at 1-866-705-5711.
    7. The following information for each recipient:
    a. Recipient's entity name,
    b. Complete address (mailing and physical location, if different),
    c. County where located,
    d. Number of Congressional district where recipient is located, and
    e. Contact person's name and telephone number.
    8. Submit evidence that each recipient entity is eligible:
    a. Nonprofits--provide a valid letter from the IRS, confirming 
certificate from the Secretary of State, or other valid documentation 
of nonprofit status of each recipient.
    b. Low-income rural community--provide evidence the entity is a 
public body, and a copy of the 2000 census data to verify the 
population, and evidence that the median household income is at, or 
below, 80 percent of either the State or national median household 
income. We will only accept data from http://www.census.gov. The 

specific instructions to retrieve data from this site are detailed 
under the ``Evaluation Criteria'' for ``Population'' and ``Income.''
    c. Federally recognized tribes--provide the page listing their name 
from the current Federal Register list of tribal entities published on 
November 25, 2005, (70 FR 71194).
    9. Each of the ``Evaluation Criteria'' must be addressed 
specifically and individually by category. Present these criteria in 
narrative form. Documentation must be limited to three pages per 
criterion. The ``Population'' and ``Income'' criterions for recipient 
locations can be provided in the form of a list; however, the source of 
the data must be included on the page(s).
    10. A timeline identifying specific activities and proposed dates 
for completion.
    11. A detailed project budget that includes the RCDI grant amount 
and matching funds for the duration of the grant. This should be a 
line-item budget, by category. Categories such as salaries, 
administrative, other, and indirect costs that pertain to the proposed 
project must be clearly defined. Supporting documentation listing the 
components of these categories must be included.
    12. Form SF-424, ``Application for Federal Assistance.'' (Do not 
complete Form SF-424A, ``Budget Information.'' A separate line-item 
budget should be presented as described in No. 11 of this section.) The 
budget should be dated: year 1, year 2, year 3.
    13. Form SF-424B, ``Assurances--Non-Construction Programs.''
    14. Form AD-1047, ``Certification Regarding Debarment, Suspension, 
and Other Responsibility Matters--Primary Covered Transactions.''
    15. Form AD-1048, ``Certification Regarding Debarment, Suspension, 
Ineligibility and Voluntary Exclusion--Lower Tier Covered 
Transactions.''
    16. Form AD-1049, ``Certification Regarding Drug-Free Workplace 
Requirements.''
    17. Certification of Non-Lobbying Activities.
    18. Standard Form LLL, ``Disclosure of Lobbying Activities,'' if 
applicable.
    19. Form RD 400-4, ``Assurance Agreement,'' for the applicant and 
each recipient.
    20. Identify and report any association or relationship with Rural 
Development employees.
    The required forms and certifications can be downloaded from the 
RCDI Web site at: http://www.rurdev.usda.gov/rhs/rcdi/index.htm.


C. Other Submission Information

    The original application package must be submitted to: William 
Kenney, Rural Housing Service, STOP 0787, 1400 Independence Ave., SW., 
Washington, DC 20250-0787, and must be submitted to the Rural 
Development State Office where the applicant is located. A listing of 
Rural Development State Offices is included in this Notice.
    Applicants may file an electronic application at http://www.grants.gov.
 Applications will not be accepted via facsimile or 

electronic mail. Applicants must still submit a paper copy of the 
application to the Rural Development State Office even though the 
application is being submitted electronically. Grants.gov contains full 
instructions on all required passwords, credentialing, and software. 
Follow the instructions at Grants.gov for registering and submitting an 
electronic application. If a system problem or technical difficulty 
occurs with an electronic application, please use the customer support 
resources available at the Grants.gov Web site.
    First time Grants.gov users should go to the ``Get Started'' tab on 
the

[[Page 39287]]

Grants.gov site and carefully read and follow the steps listed. These 
steps need to be initiated early in the application process to avoid 
delays in submitting your application online. Step three, Registering 
with the Central Contractor Registry (CCR), will take some time to 
complete. Keep that in mind when beginning the application process.
    In order to register with the CCR, your organization will need a 
Data Universal Numbering System (DUNS) Number. A DUNS number is a 
unique nine-character identification number provided by the commercial 
company, Dun & Bradstreet (D&B). To investigate if your organization 
already has a DUNS number or to obtain a DUNS number, contact Dun & 
Bradstreet at 1-866-705-5711. Be sure to complete the Marketing Partner 
ID (MPIN) and Electronic Business Primary Point of Contact fields 
during the CCR registration process. These are mandatory fields that 
are required when submitting grant applications through Grants.gov. 
Information about registering with CCR was published in a Notice in the 
Federal Register entitled ``HHS Managing Partner Grants.gov E-
Government Initiative on January 17, 2006. (See 71 FR 2549.) Additional 
application instructions for submitting an electronic application can 
be found by selecting this funding opportunity on Grants.gov.
    The deadline for receipt of an application is 4 p.m. eastern time 
October 10, 2006. The application deadline date and time are firm and 
apply to submission of the original application to the National Office 
in Washington, DC. The Agency will not consider any application 
received after the deadline. A listing of Rural Development State 
Offices, their addresses, telephone numbers, and person to contact is 
provided elsewhere in this Notice.

D. Funding Restrictions

    Meeting expenses. In accordance with 31 U.S.C. 1345, ``Expenses of 
Meetings,'' appropriations may not be used for travel, transportation, 
and subsistence expenses for a meeting. RCDI grant funds cannot be used 
for these meeting-related expenses. Matching funds may be used to pay 
for these expenses. RCDI funds may be used to pay for a speaker as part 
of a program, equipment to facilitate the program, and the actual room 
that will house the meeting. RCDI funds can be used for travel, 
transportation, or subsistence expenses for training and technical 
assistance purposes. Any meeting or training not delineated in the 
application must be approved by the Agency to verify compliance with 31 
U.S.C. 1345. Travel and per diem expenses will be similar to those paid 
to Agency employees. Rates are based upon location. Rate information 
can be accessed on the Internet at http://policyworks.gov/perdiem. 

Grantees and recipients will be restricted to traveling coach class on 
common carrier airlines. Grantees and recipients may exceed the 
Government rate for lodging by a maximum of 20 percent. Meals and 
incidental expenses will be reimbursed at the same rate used by Agency 
employees. Mileage and gas reimbursement will be the same rate used by 
Agency employees. The current mileage and gas reimbursement rate is 
44.5 cents per mile.

Part V--Application Review Information

A. Evaluation Criteria

    Applications will be evaluated using the following criteria and 
weights:
1. Building Capacity--Maximum 60 Points
    The applicant must demonstrate how they will improve the 
recipients' capacity, through a program of financial and technical 
assistance, as it relates to the RCDI purposes. Capacity-building 
technical assistance should provide new functions to the recipients or 
expand existing functions that will enable the recipients to undertake 
projects in the areas of housing, community facilities, or community 
and economic development that will benefit the community. The program 
of financial and technical assistance provided, its delivery, and the 
measurability of the program's effectiveness will determine the merit 
of the application. All applications will be competitively ranked with 
the applications providing the most improvement in capacity development 
and measurable activities being ranked the highest. Capacity-building 
technical assistance may include, but is not limited to: Training to 
conduct community development programs, e.g., homeownership education, 
or the establishment of minority business entrepreneurs, cooperatives, 
or micro-enterprises; organizational development, e.g., assistance to 
develop or improve board operations, management, and financial systems; 
instruction on how to develop and implement a strategic plan; 
instruction on how to access alternative funding sources to increase 
leveraging opportunities; staffing, e.g., hiring a person at 
intermediary or recipient level to provide technical or financial 
assistance to recipients; and purchasing technology equipment at the 
recipient level, e.g., computers, printers, and software.
    a. The narrative response must:
    1. Describe the nature of financial and technical assistance to be 
provided to the recipients and the activities that will be conducted to 
deliver the financial and technical assistance;
    2. Explain how financial and technical assistance will develop or 
increase the recipient's capacity. Indicate whether a new function is 
being developed or if existing functions are being expanded or 
performed more effectively;
    3. Identify which RCDI purpose areas will be addressed with this 
assistance: Housing, community facilities, or community and economic 
development; and
    4. Describe how the results of the financial and technical 
assistance will be measured. What benchmarks will be used to measure 
effectiveness?
    b. The maximum 60 points for this criteria will be broken down as 
follows:
    1. Type of financial and technical assistance and implementation 
activities. 35 points.
    2. An explanation of how financial and technical assistance will 
develop capacity. 10 points.
    3. Identification of the RCDI purpose. 5 points.
    4. Measurement of outcomes. 10 points.
2. Expertise--Maximum 30 Points
    The applicant must demonstrate that it has conducted programs of 
financial and technical assistance and achieved measurable results in 
the areas of housing, community facilities, or community and economic 
development in rural areas. Provide the name, contact information, and 
amount of the financial and technical assistance the applicant 
organization has provided to the following for the last 5 years:
    a. Nonprofit organizations in rural areas.
    b. Low-income communities in rural areas, (also include the type of 
entity, e.g., city government, town council, or village board).
    c. Federally recognized tribes or any other culturally diverse 
organizations.
3. Population--Maximum 30 Points
    Population is based on the average population from the 2000 census 
data for the communities in which the recipients are located. Community 
is defined for scoring purposes as a city, town, village, county, 
parish, borough, or census-designated place where the recipient's 
headquarters office is physically located. The applicant must submit 
the census data from the

[[Page 39288]]

following Web site to verify the population figures used for each 
recipient. The data can be accessed on the Internet at http://www.census.gov
; click on ``American FactFinder'' from the left menu; 

click on ``Fact Sheet''from the left menu; at the right, fill in one or 
more fields and click `Go'; the name and population data for each 
recipient location must be listed in this section. The average 
population of the recipient locations will be used and will be scored 
as follows:

------------------------------------------------------------------------
                                                                Scoring
                          Population                            (points)
------------------------------------------------------------------------
5,000 or less................................................         30
5,001 to 10,000..............................................         20
10,001 to 20,000.............................................         10
20,001 to 50,000.............................................          5
------------------------------------------------------------------------

4. Income--Maximum 30 Points
    The average of the median household income for the communities 
where the recipients are physically located will determine the points 
awarded. Applicants may compare the average recipient median household 
income to the State median household income or the national median 
household income, whichever yields the most points. The national median 
household income to be used is $41,994. The applicant must submit the 
income data from the following Web site to verify the income for each 
recipient. The data being used is from the 2000 census. The data can be 
accessed on the Internet at http://www.census.gov; click on ``American 

FactFinder'' from the left menu; click on ``Fact Sheet'' from the left 
menu; at the right, fill in one or more fields and click `Go'; the name 
and income data for each recipient location must be listed in this 
section. Points will be awarded as follows:
    Average Recipient Median Income Is: Scoring.
    Less than 60 percent of the State or national median household 
income. 30 points.
    Between 60 and 70 percent of the State or national median household 
income. 20 points.
    Greater than 70 percent of the State or national median household 
income. 10 points.
5. Soundness of Approach--Maximum 50 Points
    The applicant can receive up to 50 points for soundness of 
approach. The overall proposal will be considered under this criterion. 
Applicants must list the page numbers in the application that address 
these factors.
    a. The ability to provide the proposed financial and technical 
assistance based on prior accomplishments has been demonstrated.
    b. The proposed financial and technical assistance program is 
clearly stated and the applicant has defined how this proposal will be 
implemented. The plan for implementation is viable.
    c. Cost effectiveness will be evaluated based on the budget in the 
application. The proposed grant amount and matching funds should be 
utilized to maximize capacity building at the recipient level.
    d. The proposal fits the objectives for which applications were 
invited.
6. Purpose Distribution Points--20 Points
    The applicant must state the primary purpose of the application, 
i.e., housing, community facilities, or community and economic 
development. The applicant may identify any special needs for the rural 
community regarding the purposes listed above. A special need, for 
example, may include showing the need of a rural community affected by 
a Presidential declared natural disaster. After applications have been 
evaluated and awarded points under the first 5 criteria, the Agency may 
award 20 points per application to promote diversity of RCDI purposes 
and special needs.
7. Proportional Distribution Points--20 Points
    This criteria does not have to be addressed by the applicant. After 
applications have been evaluated and awarded points under the first 5 
criteria, the Agency may award 20 points per application to promote an 
even distribution of grant awards between the range of $50,000 to 
$300,000.

B. Review and Selection Process

    Rating and ranking. Applications will be rated and ranked on a 
national basis by a review panel based on the ``Evaluation Criteria'' 
contained in this Notice. If there is a tied score after the 
applications have been rated and ranked, the tie will be resolved by 
reviewing the scores for ``Building Capacity'' and the applicant with 
the highest score in that category will receive a higher ranking. If 
the scores for ``Building Capacity'' are the same, the scores will be 
compared for the next criterion, in sequential order, until one highest 
score can be determined.
    Initial screening. The Agency will screen each application to 
determine eligibility during the period immediately following the 
application deadline. Listed below are many of the reasons for 
rejection from the previous funding rounds to help the applicant 
prepare a better application. The following reasons for rejection are 
not all inclusive; however, they represent the majority of the 
applications previously rejected.
    1. Recipients were not located in eligible rural areas based on the 
definition in this Notice.
    2. Applicants failed to provide evidence of recipient's status, 
i.e., documentation supporting nonprofit evidence of organization.
    3. Application did not follow the RCDI structure with an 
intermediary and recipients.
    4. Recipients were not identified in the application.
    5. Intermediary did not provide evidence it had been incorporated 
for at least 3 years as the applicant entity.
    6. Applicants failed to address the ``Evaluation Criteria.''
    7. The purpose of the proposal did not qualify as an eligible RCDI 
purpose.
    8. Inappropriate use of funds (e.g., construction or renovations).
    9. Providing financial and technical assistance directly to 
individuals.

Part VI--Award Administration Information

A. General Information

    Within the limit of funds available for such purpose, the awarding 
official of the Agency shall make grants to those responsible, eligible 
applicants whose applications are judged meritorious under the 
procedures set forth in this Notice.

B. Award Notice

    Applicant will be notified of selection by letter. In addition, 
applicant will be requested to verify that components of the 
application have not changed. The award is not approved until all 
information has been verified, and the awarding official of the Agency 
has signed Form RD 1940-1, ``Request for Obligation of Funds.''

C. Administrative and National Policy Requirements

    Grantees will be required to do the following:
    1. Execute a Rural Community Development Initiative Grant 
Agreement, which is published at the end of this NOFA.
    2. Execute Form RD 1940-1, ``Request for Obligation of Funds.''
    3. Use Form SF 270, ``Request for Advance or Reimbursement,'' to 
request reimbursements.
    4. Provide financial status and project performance reports on a 
quarterly basis starting with the first full quarter after the grant 
award.

[[Page 39289]]

    5. Maintain a financial management system that is acceptable to the 
Agency.
    6. Ensure that records are maintained to document all activities 
and expenditures utilizing RCDI grant funds and matching funds. 
Receipts for expenditures will be included in this documentation.
    7. Provide annual audits or management reports on Form RD 442-2, 
``Statement of Budget, Income, and Equity,'' and Form RD 442-3, 
``Balance Sheet,'' depending on the amount of Federal funds expended 
and the outstanding balance.
    8. Collect and maintain data provided by recipients on race, sex, 
and national origin and ensure recipients collect and maintain the same 
data on beneficiaries. Race and ethnicity data will be collected in 
accordance with OMB Federal Register notice, ``Revisions to the 
Standards for the Classification of Federal Data on Race and 
Ethnicity,'' (62 FR 58782), October 30, 1997. Sex data will be 
collected in accordance with Title IX of the Education Amendments of 
1972. These items should not be submitted with the application but 
should be available upon request by the Agency.
    9. Provide a final project performance report.
    10. Identify and report any association or relationship with Rural 
Development employees on a format provided by the Agency.
    11. The intermediary and recipient must comply with Title VI of the 
Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, 
Section 504 of the Rehabilitation Act of 1973, and Executive Order 
12250.
    12. The grantee must comply with policies, guidance, and 
requirements as described in the following applicable OMB Circulars and 
Code of Federal Regulations:
    a. OMB Circular A-87 (Cost Principles for State, Local, and Indian 
Tribal Government);
    b. OMB Circular A-122 (Cost Principles for Nonprofit 
Organizations);
    c. OMB Circular A-133 (Audits of States, Local Governments, and 
Non-Profit Organizations);
    d. 7 CFR part 3015 (Uniform Federal Assistance Regulations);
    e. 7 CFR part 3016 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments);
    f. 7 CFR part 3017 (Governmentwide Debarment and Suspension 
(Nonprocurement));
    g. 7 CFR part 3019 (Uniform Administrative Requirements for Grants 
and Agreements with Institutions of Higher Education, Hospitals, and 
Other Nonprofit Organizations); and
    h. 7 CFR part 3052 (Audits of States, Local Governments, and Non-
Profit Organizations).

D. Reporting

    Reporting requirements can be found in the Grant Agreement included 
in this Notice.

Part VII--Agency Contact

    William Kenney, Rural Housing Service, Room 0183, Stop 0787, 1400 
Independence Ave., SW., Washington, DC 20250-0787, Telephone (202) 720-
1506, e-mail: william.kenney@wdc.usda.gov.

Grant Amount Determination

    In the event the applicant is awarded a grant that is less than the 
amount requested, the applicant will be required to modify its 
application to conform to the reduced amount before execution of the 
grant agreement. The Agency reserves the right to reduce or withdraw 
the award if acceptable modifications are not submitted by the awardee 
within 15 working days from the date the request for modification is 
made. Any modifications must be within the scope of the original 
application.

Rural Development State Office Contacts

    Note: Telephone numbers listed are not toll-free.

Alabama State Office
Suite 601, Sterling Centre
4121 Carmichael Road,
Montgomery, AL 36106-3683
(334) 279-3400
TDD (334) 279-3495
James B. Harris

Alaska State Office
800 West Evergreen, Suite 201
Palmer, AK 99645
(907) 761-7705
TDD (907) 761-8905
Merlaine Kruse

Arizona State Office
230 North 1st Avenue, Suite 206
Phoenix, AZ 85003
(602) 280-8747
TDD (602) 280-8705
Leonard Gradillas

Arkansas State Office
700 W. Capitol Ave., Rm. 3416
Little Rock, AR 72201-3225
(501) 301-3250
TDD (501) 301-3200
Jerry Virden

California State Office
430 G Street, Agency 4169
Davis, CA 95616-4169
(530) 792-5810
TDD (530) 792-5848
Janice Waddell

Colorado State Office
655 Parfet Street, Room E-100
Lakewood, CO 80215
720-544-2928
TDD 720-544-2976
Mike Bailey

Connecticut

    Served by Massachusetts State Office

Delaware and Maryland State Office
1221 College Park Dr., Suite 200
Dover, DE 19904-8713
(302) 857-3580
TDD (302) 697-4303
James E. Waters

Florida & Virgin Islands State Office
4440 NW. 25th Place
P.O. Box 147010
Gainesville, FL 32614-7010
(352) 338-3485
TDD (352) 338-3499
Michael Langston

Georgia State Office
Stephens Federal Building
355 E. Hancock Avenue
Athens, GA 30601-2768
(706) 546-2171
TDD (706) 546-2034
Jerry M. Thomas

Guam

    Served by Hawaii State Office

Hawaii, Guam, & Western Pacific Territories State Office
Room 311, Federal Building
154 Waianuenue Avenue
Hilo, HI 96720
(808) 933-8380
TDD (808) 933-8321
Ted Matsuo

Idaho State Office
9173 West Barnes Dr., Suite A1
Boise, ID 83709
(208) 378-5617
TDD (208) 378-5600
Daniel H. Fraser

Illinois State Office
2118 West Park Court, Suite A
Champaign, IL 61821
(217) 403-6200
TDD (217) 403-6240
Gerald A. Townsend

Indiana State Office
5975 Lakeside Boulevard
Indianapolis, IN 46278
(317) 290-3100 (ext. 431)
TDD (317) 290-3343
Gregg Delp

Iowa State Office
873 Federal Building
210 Walnut Street
Des Moines, IA 50309
(515) 284-4663
TDD (515) 284-4858
Dorman Otte

Kansas State Office
1303 SW. First American Place
Suite 100
Topeka, KS 66604-4040
(785) 271-2730
TDD (785) 271-2767
Gary L. Smith

Kentucky State Office
771 Corporate Drive, Suite 200
Lexington, KY 40503
(859) 224-7336
TDD (859) 224-7300

[[Page 39290]]

Vernon Brown

Louisiana State Office
3727 Government Street
Alexandria, LA 71302
(318) 473-7962
TDD (318) 473-7920
Richard Hoff Pauir

Maine State Office
967 Illinois Ave., Suite 4
P.O. Box 405
Bangor, ME 04402-0405
(207) 990-9124
TDD (207) 942-7331
Ron Lambert

Maryland
    Served by Delaware State Office

Massachusetts, Connecticut, & Rhode Island State Office
451 West Street, Suite 2
Amherst, MA 01002-2999
(413) 253-4300
TDD (413) 253-7068
Daniel R. Beaudette

Michigan State Office
3001 Coolidge Road, Suite 200
East Lansing, MI 48823
(517) 324-5208
TDD (517) 337-6795
Frank J. Tuma

Minnesota State Office
410 Farm Credit Service Building
375 Jackson Street
St. Paul, MN 55101-1853
(651) 602-7800
TDD (651) 602-3799
William Slininger

Mississippi State Office
Federal Building, Suite 831
100 W. Capitol Street
Jackson, MS 39269
(601) 965-4316
TDD (601) 965-5850
Bettye Oliver

Missouri State Office
601 Business Loop 70 West
Parkade Center, Suite 235
Columbia, MO 65203
(573) 876-0995
TDD (573) 876-9480
Clark Thomas

Montana State Office
900 Technology Blvd., Suite B
Bozeman, MT 59771
(406) 585-2530
TDD (406) 585-2562
John Guthmiller

Nebraska State Office
Federal Building, Room 152
100 Centennial Mall N.
Lincoln, NE 68508
(402) 437-5559
TDD (402) 437-5551
Denise Brosius-Meeks

Nevada State Office
1390 South Curry Street
Carson City, NV 89703-9910
(775) 887-1222 (ext. 19)
TDD (775) 885-0633
Herb Shedd

New Hampshire State Office
Concord Center
Suite 218, Box 317
10 Ferry Street
Concord, NH 03301-5004
(603) 223-6055
TDD (603) 223-6083
William Konrad

New Jersey State Office
8000 Midlantic Drive
5th Floor North, Suite 500
Mt. Laurel, NJ 08054
(856) 787-7750
Michael P. Kelsey

New Mexico State Office
6200 Jefferson St. NE., Room 255
Albuquerque, NM 87109
(505) 761-4950
TDD (505) 761-4938
Martha Torrez

New York State Office
The Galleries of Syracuse
441 S. Salina Street, Suite 357
Syracuse, NY 13202-2541
(315) 477-6400
TDD (315) 477-6447
Gail Giannotta

North Carolina State Office
4405 Bland Road, Suite 260
Raleigh, NC 27609
(919) 873-2000
TDD (919) 873-2003
Roger Davis

North Dakota State Office
Federal Building, Room 208
220 East Rosser
P.O. Box 1737
Bismarck, ND 58502-1737
(701) 530-2037
TDD (701) 530-2113
Dale VanEchout

Ohio State Office
Federal Building, Room 507
200 North High Street
Columbus, OH 43215-2418
(614) 255-2400
TDD (614) 255-2554
David M. Douglas

Oklahoma State Office
100 USDA, Suite 108
Stillwater, OK 74074-2654
(405) 742-1000
TDD (405) 742-1007
Michael W. Schrammel

Oregon State Office
1201 NE Lloyd Blvd, Suite 801
Portland, OR 97232
(503) 414-3300
TDD (503) 414-3387
Wayne Dunlap

Pennsylvania State Office
One Credit Union Place, Suite 330
Harrisburg, PA 17110-2996
(717) 237-2299
TDD (717) 237-2261
Gary Rothrock

Puerto Rico State Office
IBM Building--Suite 601
654 Munos Rivera Avenue
San Juan, PR 00918-6106
(787) 766-5095
TDD (787) 766-5332
Ramon Melendez

Rhode Island

    Served by Massachusetts State Office

South Carolina State Office
Strom Thurmond Federal Building
1835 Assembly Street, Room 1007
Columbia, SC 29201
(803) 253-3656
TDD (803) 765-5697
Ken King

South Dakota State Office
Federal Building, Room 210
200 Fourth Street, SW.
Huron, SD 57350
(605) 352-1100
TDD (605) 352-1147
Doug Roehl

Tennessee State Office
Suite 300
3322 West End Avenue
Nashvile, TN 37203-1084
(615) 783-1300
TDD (615) 783-1397
Keith Head

Texas State Office
Federal Building, Suite 102
101 South Main
Temple, TX 76501
(254) 742-9700
TDD (254) 742-9712
Francesco Valentin

Utah State Office
Wallace F. Bennett Federal Building
125 South State Street, Room 4311
P.O. Box 11350
Salt Lake City, UT 84138
(801) 524-4326
TDD (801) 524-3309
Bonnie Carrig

Vermont State Office
City Center, 3rd Floor
89 Main Street
Montpelier, VT 05602
(802) 828-6000
TDD (802) 223-6365
Rhonda Shippee

Virgin Islands

    Served by Florida State Office

Virginia State Office
Culpeper Building, Suite 238
1606 Santa Rosa Road
Richmond, VA 23229
(804) 287-1550
TDD (804) 287-1753
Carrie Schmidt

Washington State Office
1835 Black Lake Boulevard, SW.
Suite B
Olympia, WA 98501-5715
(509) 664-0203
Sandi Boughton

Western Pacific Territories

    Served by Hawaii State Office

West Virginia State Office
Federal Building
75 High Street, Room 320
Morgantown, WV 26505-7500
(304) 284-4860
TDD (304) 284-4836
Randy Plum

Wisconsin State Office
4949 Kirschling Court
Stevens Point, WI 54481
(715) 345-7614
TDD (715) 345-7610
Mark Brodziski

Wyoming State Office
Federal Building, Room 1005

[[Page 39291]]

100 East B
P.O. Box 11005
Casper, WY 82601-5006
(307) 261-6300
TDD (307) 261-6333
Kaylyn Nerby

    Dated: June 13, 2006.
Russell T. Davis,
Administrator, Rural Housing Service.
OMB No. 0575-0180
United States Department of Agriculture
Rural Housing Service
Rural Community Development Initiative Grant Agreement

    THIS GRANT AGREEMENT (Agreement), effective the date the Agency 
official signs the document, is a contract for receipt of grant funds 
under the Rural Community Development Initiative (RCDI).

BETWEEN----------------------------------------------------------------
a private or public or tribal organization, (Grantee or Intermediary) 
and the United States of America acting through the Rural Housing 
Service, Department of Agriculture, (Agency or Grantor), for the 
benefit of recipients listed in Grantee's application for the grant.
WITNESSETH:
    The principal amount of the grant is $------------(Grant Funds). 
Matching funds, in an amount equal to the grant funds, will be provided 
by Grantee. The Grantee and Grantor will execute Form RD 1940-1, 
``Request for Obligation of Funds.''
WHEREAS,
    Grantee will provide a program of financial and technical 
assistance to develop the capacity and ability of nonprofit 
organizations, low-income rural communities, or federally recognized 
tribes to undertake projects related to housing, community facilities, 
or community and economic development in rural areas;
    According to the Paperwork Reduction Act of 1995, no persons are 
required to respond to a collection of information unless it displays a 
valid OMB control number. The valid OMB control number for this 
information collection is 0575-0180. The time required to complete this 
information collection is estimated to average 30 minutes per response, 
including the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and reviewing the 
collection of information.

    NOW, THEREFORE, in consideration of the grant;

    Grantee agrees that Grantee will:

    A. Provide a program of financial and technical assistance in 
accordance with the proposal outlined in the application, (see 
Attachment A), the terms of which are incorporated with this Agreement 
and must be adhered to. Any changes to the approved program of 
financial technical assistance must be approved in writing by the 
Grantor;
    B. Use Grant Funds only for the purposes and activities specified 
in the application package approved by the Agency including the 
approved budget. Any uses not provided for in the approved budget must 
be approved in writing by the Agency in advance;
    C. Charge expenses for travel and per diem that will not exceed the 
rates paid Agency employees for similar expenses. Grantees and 
recipients will be restricted to traveling coach class on common 
carrier airlines. Lodging rates may exceed the Government rate by a 
maximum of 20 percent. Meals and incidental expenses will be reimbursed 
at the same rate used by Agency employees, which is based upon 
location. Mileage and gas will be reimbursed at the existing Government 
rate. Rates can be accessed on the Internet at http://policyworks.gov/perdiem
;

    D. Charge meeting expenses in accordance with 31 U.S.C. 1345. Grant 
funds may not be used for travel, transportation, and subsistence 
expenses for a meeting. Matching funds may be used to pay these 
expenses. Any meeting or training not delineated in the application 
must be approved by the Agency to verify compliance with 31 U.S.C. 
1345;
    E. Request quarterly reimbursement for grant activities during the 
previous quarter. Reimbursement will be made on a pro rata basis with 
matching funds. Form SF 270, ``Request for Advance or Reimbursement,'' 
will be used to request reimbursement. A project performance report, in 
narrative form, and a financial report, reflecting the activities 
conducted, must accompany the request for reimbursement. Matching fund 
usage must be included in all reports;
    F. Provide periodic reports as required by the Grantor. A financial 
status report and a project performance report will be required on a 
quarterly basis (due 30 working days after each calendar quarter). The 
financial status report must show how grant funds and matching funds 
have been used to date. A final report may serve as the last quarterly 
report. Grantees shall constantly monitor performance to ensure that 
time schedules are being met and projected goals by time periods are 
being accomplished. The project performance reports shall include, but 
are not limited to, the following:
    1. Describe the activities that the funds reflected in the 
financial status report were used for;
    2. A comparison of actual accomplishments to the objectives for 
that period;
    3. Reasons why established objectives were not met, if applicable;
    4. Problems, delays, or adverse conditions which will affect 
attainment of overall program objectives, prevent meeting time 
schedules or objectives, or preclude the attainment of particular 
objectives during established time periods. This disclosure shall be 
accomplished by a statement of the action taken or planned to resolve 
the situation;
    5. Objectives and timetables established for the next reporting 
period;
    6. If available, a summary of the race, sex, and national origin of 
the recipients and a summary from the recipients of the race, sex, and 
national origin of the beneficiaries; and
    7. The final report will also address the following:
    a. What have been the most challenging or unexpected aspects of 
this program?
    b. What advice would you give to other organizations planning a 
similar program? Please include strengths and limitations of the 
program. If you had the opportunity, what would you have done 
differently?
    c. Are there any post-grant plans for this project? If yes, how 
will they be financed?
    d. If an innovative approach was used successfully, the grantee 
must describe their program in detail for replication by other 
organizations and communities.
    G. Consider potential recipients without discrimination as to race, 
color, religion, sex, national origin, age, marital status, sexual 
orientation, or physical or mental disability;
    H. Ensure that any services or training offered by the recipient, 
as a result of the financial and technical assistance received, must be 
made available to all persons in the recipient's service area without 
discrimination as to race, color, religion, sex, national origin, age, 
marital status, sexual orientation, or physical or mental disability at 
reasonable rates, including assessments, taxes, or fees. Programs and 
activities must be delivered from accessible locations. The recipient 
must ensure that, where there are non-English speaking populations, 
materials are provided in the language that is spoken;
    I. Ensure recipients are required to place nondiscrimination 
statements in

[[Page 39292]]

advertisements, notices, pamphlets and brochures making the public 
aware of their services. The Grantee and recipient are required to 
provide widespread outreach and public notification in promoting any 
type of training or services that are available through grant funds;
    J. The Grantee must collect and maintain data on recipients by 
race, sex, and national origin. The grantee must ensure that their 
recipients also collect and maintain data on beneficiaries by race, 
sex, and national origin as required by Title VI of the Civil Rights 
Act of 1964 and must be provided to the Agency for compliance review 
purposes;
    K. Upon any default under its representations or agreements 
contained in this instrument, Grantee, at the option and demand of 
Grantor, will immediately repay to Grantor any legally permitted 
damages together with any legally permitted interest from the date of 
the default. At Grantor's election, any default by the Grantee will 
constitute termination of the grant thereby causing cancellation of 
Federal assistance under the grant. The provisions of this Agreement 
may be enforced by Grantor, without regard to prior waivers of this 
Agreement, by proceedings in law or equity, in either Federal or State 
courts as may be deemed necessary by Grantor to ensure compliance with 
the provisions of this Agreement and the laws and regulations under 
which this grant is made;
    L. Provide Financial Management Systems that will include:
    1. Accurate, current, and complete disclosure of the financial 
results of each grant. Financial reporting will be on an accrual basis;
    2. Records that identify adequately the source and application of 
funds for grant-supported activities. Those records shall contain 
information pertaining to grant awards and authorizations, obligations, 
unobligated balances, assets, liabilities, outlays, and income related 
to Grant Funds and matching funds;
    3. Effective control over and accountability for all funds, 
property, and other assets. Grantees shall adequately safeguard all 
such assets and shall ensure that they are used solely for authorized 
purposes;
    4. Accounting records supported by source documentation; and
    5. Grantee tracking of fund usage and records that show matching 
funds and grant funds are used in equal proportions. The grantee will 
provide verifiable documentation regarding matching fund usage, i.e., 
bank statements or copies of funding obligations from the matching 
source.
    M. Retain financial records, supporting documents, statistical 
records, and all other records pertinent to the grant for a period of 
at least three years after grant closing except that the records shall 
be retained beyond the three-year period if audit findings have not 
been resolved. Microfilm or photocopies or similar methods may be 
substituted in lieu of original records. The Grantor and the 
Comptroller General of the United States, or any of their duly 
authorized representatives, shall have access to any books, documents, 
papers, and records of the Grantee's which are pertinent to the 
specific grant program for the purpose of making audits, examinations, 
excerpts, and transcripts;
    N. Provide an A-133 audit report if $500,000 or more of Federal 
funds are expended in a 1-year period. If Federal funds expended during 
a 1-year period are less than $500,000 and there is an outstanding loan 
balance of less than $500,000, a management report may be submitted on 
Forms RD 442-2, ``Statement of Budget, Income and Equity,'' and 442-3, 
``Balance Sheet'';
    O. Not encumber, transfer, or dispose of the equipment or any part 
thereof, acquired wholly or in part with Grantor funds without the 
written consent of the Grantor; and
    P. Not duplicate other program activities for which monies have 
been received, are committed, or are applied to from other sources 
(public or private).

    Grantor agrees that:

    A. It will make available to Grantee for the purpose of this 
Agreement funds in an amount not to exceed the Grant Funds. The funds 
will be disbursed to Grantee on a pro rata basis with the Grantee's 
matching funds; and
    B. At its sole discretion and at any time may give any consent, 
deferment, subordination, release, satisfaction, or termination of any 
or all of Grantee's grant obligations, with or without valuable 
consideration, upon such terms and conditions as Grantor may determine 
to be:
    1. Advisable to further the purpose of the grant or to protect 
Grantor's financial interest therein; and
    2. Consistent with both the statutory purposes of the grant and the 
limitations of the statutory authority under which it is made.
    Both Parties Agree:
    A. Extensions of this grant agreement may be approved by the 
Agency, in writing, provided in the Agency's sole discretion the 
extension is justified and there is a likelihood that the grantee can 
accomplish the goals set out and approved in the application package 
during the extension period;
    B. The Grantor must approve any changes in recipient or recipient 
composition;
    C. The Grantor has agreed to give the Grantee the Grant Funds, 
subject to the terms and conditions established by the Grantor: 
PROVIDED, HOWEVER, That any Grant Funds actually disbursed and not 
needed for grant purposes be returned immediately to the Grantor. This 
agreement shall terminate 3 years from this date unless extended or 
unless terminated beforehand due to default on the part of the Grantee 
or for convenience of the Grantor and Grantee. The Grantor may 
terminate the grant in whole, or in part, at any time before the date 
of completion, whenever it is determined that the Grantee has failed to 
comply with the conditions of this Agreement or the applicable 
regulations; Termination for convenience will occur when both the 
Grantee and Grantor agree that the continuation of the program will not 
produce beneficial results commensurate with the further expenditure of 
funds.
    D. As a condition of the Agreement, the Grantee certifies that it 
is in compliance with, and will comply in the course of the Agreement 
with, all applicable laws, regulations, Executive Orders, and other 
generally applicable requirements, which are incorporated into this 
agreement by reference, and such other statutory provisions as are 
specifically contained herein.
    E. The Grantee will ensure that the recipients comply with title VI 
of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act 
of 1973 and Executive Order 12250. Each recipient must sign Form RD 
400-4, ``Assurance Agreement'';
    F. The provisions of 7 CFR part 3015, ``Uniform Federal Assistance 
Regulations,'' part 3016, ``Uniform Administrative Requirements for 
Grants and Cooperative Agreements to State and Local Governments,'' or 
part 3019, ``Uniform Administrative Requirements for Grants and 
Agreements with Institutions of Higher Education, Hospitals, and Other 
Nonprofit Organizations,'' and the fiscal year 2006 ``Notice of Funds 
Availability (NOFA) Inviting Applications for the Rural Community 
Development Initiative (RCDI)'' are incorporated herein and made a part 
hereof by reference;

    IN WITNESS WHEREOF, Grantee has this day authorized and caused this 
Agreement to be executed by

-----------------------------------------------------------------------

Attest


[[Page 39293]]


-----------------------------------------------------------------------

By---------------------------------------------------------------------
 (Grantee)

(Title)----------------------------------------------------------------

Date-------------------------------------------------------------------

UNITED STATES OF AMERICA

RURAL HOUSING SERVICE

By---------------------------------------------------------------------
 (Grantor) (Name) (Title)

Date-------------------------------------------------------------------
ATTACHMENT A

    [Application proposal submitted by grantee.]

[FR Doc. 06-6150 Filed 7-11-06; 8:45 am]
BILLING CODE 3410-XV-P