[Federal Register: February 25, 2002 (Volume 67, Number 37)]
[Notices]
[Page 8674-8677]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25fe02-113]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Funding Availability (NOFA) for the Section 515 Rural
Rental Housing Program for Fiscal Year 2002
AGENCY: Rural Housing Service (RHS), USDA.
ACTION: Notice.
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SUMMARY: This NOFA announces the timeframe to submit applications for
section 515 Rural Rental Housing (RRH) loan funds and section 521
Rental Assistance (RA) for new construction, including applications for
the nonprofit set-aside for eligible nonprofit entities, the set-aside
for the most Underserved Counties and Colonias (Cranston-Gonzalez
National Affordable Housing Act), and the set-aside for Empowerment
Zones and Enterprise Communities (EZ/ECs) and Rural Economic Area
Partnership (REAP) communities. This document describes the methodology
that will be used to distribute funds, the application process,
submission requirements, and areas of special emphasis or
consideration.
DATES: The closing deadline for receipt of all applications, including
those for the set-asides, in response to this NOFA is 5:00 p.m., local
time for each Rural Development State office on April 26, 2002. The
application closing deadline is firm as to date and hour. RHS 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 date and time.
Acceptance by the United States Postal Service or private mailer does
not constitute delivery. Facsimile (FAX) and postage due applications
will not be accepted.
ADDRESSES: Applicants wishing to apply for assistance must contact the
Rural Development State office serving the place in which they desire
to submit an application for rural rental housing to receive further
information and copies of the application package. Rural Development
will date and time stamp incoming applications to evidence timely
receipt, and, upon request, will provide the applicant with a written
acknowledgment of receipt. A listing of Rural Development State
offices, their addresses, telephone numbers, and person to contact
follows:
Note: Telephone numbers listed are not toll-free.
Alabama State Office, Suite 601, Sterling Centre, 4121 Carmichael Road,
Montgomery, AL 36106-3683,
[[Page 8675]]
(334) 279-3455, TDD (334) 279-3495, James B. Harris
Alaska State Office, 800 West Evergreen, Suite 201, Palmer, AK 99645,
(907) 761-7740, TDD (907) 761-8905, Deborah Davis
Arizona State Office, Phoenix Corporate Center, 3003 N. Central Ave.,
Suite 900, Phoenix, AZ 85012-2906, (602) 280-8765, TDD (602) 280-8706,
Johnna Vargas
Arkansas State Office, 700 W. Capitol Ave., Room 3416, Little Rock, AR
72201-3225, (501) 301-3250, TDD (501) 301-3279, Cathy Jones
California State Office, 430 G Street, Agency 4169, Davis, CA 95616-
4169, (530) 792-5819 or, (530) 792-5830, TDD (530) 792-5848, Jeff Deiss
Colorado State Office, 655 Parfet Street, Room E100, Lakewood, CO
80215, (720) 544-2922, TDD (720) 544-2976, ``Sam'' Mitchell
Connecticut
Served by Massachusetts State Office
Delaware and Maryland State Office, 5201 South Dupont Highway, PO Box
400, Camden, DE 19934-9998, (302) 697-4353, TDD (302) 697-4303, Pat
Baker
Florida & Virgin Islands State Office, 4440 N.W. 25th Place,
Gainesville, FL 32614-7010, (352) 338-3465, TDD (352) 338-3499, Joseph
P. Fritz
Georgia State Office, Stephens Federal Building, 355 E. Hancock Avenue,
Athens, GA 30601-2768, (706) 546-2164, TDD (706) 546-2034, Wayne Rogers
Guam
Served by Hawaii State Office
Hawaii and Western Pacific State Office, Room 311, Federal Building,
154 Waianuenue Avenue, Hilo, HI 96720, (808) 933-8309, TDD (808) 933-
8321, Thao Khamoui
Idaho State Office, Suite A1, 9173 West Barnes Dr., Boise, ID 83709,
(208) 378-5630, TDD (208) 378-5644, LaDonn McElligott
Illinois State Office, 2118 West Park Court, Suite A, Champaign, IL
61821, (217) 403-6222, TDD (217) 403-6240, Barry L. Ramsey
Indiana State Office, 5975 Lakeside Boulevard, Indianapolis, IN 46278,
(317) 290-3100 (ext. 423), TDD (317) 290-3343, John Young
Iowa State Office, 873 Federal Building, 210 Walnut Street, Des Moines,
IA 50309, (515) 284-4666, TDD (515) 284-4858, Julie Sleeper
Kansas State Office, 1303 SW First American Place, Suite 100, Topeka,
KS 66604-4040, (785) 271-2721, TDD (785) 271-2767, Virginia M.
Hammersmith
Kentucky State Office, 771 Corporate Drive, Suite 200, Lexington, KY
40503, (859) 224-7325, TDD (859) 224-7422, Paul Higgins
Louisiana State Office, 3727 Government Street, Alexandria, LA 71302,
(318) 473-7962, TDD (318) 473-7655, Yvonne R. Emerson
Maine State Office, 967 Illinois Ave., Suite 4, PO Box 405, Bangor, ME
04402-0405, (207) 990-9110, TDD (207) 942-7331, Dale D. Holmes
Maryland
Served by Delaware State Office
Massachusetts, Connecticut, & Rhode Island State Office, 451 West
Street, Amherst, MA 01002, (413) 253-4333, TDD (413) 253-4590, Donald
Colburn
Michigan State Office, 3001 Coolidge Road, Suite 200, East Lansing, MI
48823, (517) 324-5192, TDD (517) 337-6795, Philip Wolak
Minnesota State Office, 410 AgriBank Building, 375 Jackson Street, St.
Paul, MN 55101-1853, (651) 602-7804, TDD (651) 602-7830, Joyce Vondal
Mississippi State Office, Federal Building, Suite 831, 100 W. Capitol
Street, Jackson, MS 39269, (601) 965-4325, TDD (601) 965-5850, Darnella
Smith-Murray
Missouri State Office, 601 Business Loop 70 West, Parkade Center, Suite
235, Columbia, MO 65203, (573) 876-0990, TDD (573) 876-9301, Charlie
Marcks
Montana State Office, Unit 1, Suite B, 900 Technology Blvd., Bozeman,
MT 59715, (406) 585-2551, TDD (406) 585-2562, Deborah Chorlton
Nebraska State Office, Federal Building, Room 152, 100 Centennial Mall
N, Lincoln, NE 68508, (402) 437-5594, TDD (402) 437-5093, Phil Willnerd
Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-
9910, (775) 887-1222 (ext. 13), TDD (775) 885-0633, William L. Brewer
New Hampshire State Office, Concord Center, Suite 218, Box 317, 10
Ferry Street, Concord, NH 03301-5004, (603) 223-6062, TDD (603) 229-
0536, Jim Fowler
New Jersey State Office, Tarnsfield Plaza, Suite 22, 790 Woodland Road,
Mt. Holly, NJ 08060, (609) 265-3636, TDD (609) 265-3687, George Hyatt,
Jr.
New Mexico State Office, 6200 Jefferson St., NE, Room 255, Albuquerque,
NM 87109, (505) 761-4944, TDD (505) 761-4938, Carmen N. Lopez
New York State Office, The Galleries of Syracuse, 441 S. Salina Street,
Suite 357, Syracuse, NY 13202, (315) 477-6419, TDD (315) 477-6447,
George N. Von Pless
North Carolina State Office, 4405 Bland Road, Suite 260, Raleigh, NC
27609, (919) 873-2066, TDD (919) 873-2003, Terry Strole
North Dakota State Office, Federal Building, Room 208, 220 East Rosser,
PO Box 1737, Bismarck, ND 58502, (701) 530-2049, TDD (701) 530-2113,
Kathy Lake
Ohio State Office, Federal Building, Room 507, 200 North High Street,
Columbus, OH 43215-2477, (614) 255-2418, TDD (614) 255-2554, Melodie
Taylor
Oklahoma State Office, 100 USDA, Suite 108, Stillwater, OK 74074-2654,
(405) 742-1070, TDD (405) 742-1007, Phillip F. Reimers
Oregon State Office, 101 SW Main, Suite 1410, Portland, OR 97204-3222,
(503) 414-3325, TDD (503) 414-3387, Bill Daniel
Pennsylvania State Office, One Credit Union Place, Suite 330,
Harrisburg, PA 17110-2996, (717) 237-2281, TDD (717) 237-2261, Gary
Rothrock
Puerto Rico State Office, 654 Munoz Rivera Avenue, IBM Plaza, Suite
601, Hato Rey, PR 00918, (787) 766-5095 (ext. 249), TDD (787) 766-5332,
Lourdes Colon
Rhode Island
Served by Massachusetts State Office
South Carolina State Office, Strom Thurmond Federal Building, 1835
Assembly Street, Room 1007, Columbia, SC 29201, (803) 253-3432, TDD
(803) 765-5697, Larry D. Floyd
South Dakota State Office, Federal Building, Room 210, 200 Fourth
Street, SW., Huron, SD 57350, (605) 352-1132, TDD (605) 352-1147,
Dwight Wullweber
Tennessee State Office, Suite 300, 3322 West End Avenue, Nashville, TN
37203-1084, (615) 783-1375, TDD (615) 783-1397, G. Benson Lasater
Texas State Office, Federal Building, Suite 102, 101 South Main,
Temple, TX 76501, (254) 742-9755, TDD (254) 742-9712, Eugene G. Pavlat
Utah State Office, Wallace F. Bennett Federal Building, 125 S. State
Street, Room 4311, Salt Lake City, UT 84147-0350, (801) 524-4324, TDD
(801) 524-3309, Robert L. Milianta
Vermont State Office, City Center, 3rd Floor, 89 Main Street,
Montpelier, VT 05602, (802) 828-6028, TDD (802) 223-6365, Sandra
Mercier
Virgin Islands
Served by Florida State Office
Virginia State Office, Culpeper Building, Suite 238, 1606 Santa Rosa
Road, Richmond, VA 23229, (804) 287-1547, TDD (804) 287-1753, Eileen
Nowlin
Washington State Office, Puyallup Executive Park, 1011 E. Main, Suite
[[Page 8676]]
306, Puyallup, WA 98372-6771, (253) 845-9272 (ext. 5), TDD (253) 845-
0553, Robert Lund
Western Pacific Territories
Served by Hawaii State Office
West Virginia State Office, Federal Building, 75 High Street, Room 320,
Morgantown, WV 26505-7500, (304) 284-4889, TDD (304) 284-4836, Craig
St. Clair
Wisconsin State Office 4949 Kirschling Court, Stevens Point, WI 54481,
(715) 345-7615 (ext. 151), TDD (715) 345-7614, Sherry Engel
Wyoming State Office, 100 East B, Federal Building, Room 1005, PO Box
820, Casper, WY 82602, (307) 261-6315, TDD (307) 261-6333, Charles Huff
FOR FURTHER INFORMATION CONTACT: For general information, applicants
may contact Linda Armour, Senior Loan Officer, Multi-Family Housing
Processing Division, Rural Housing Service, United States Department of
Agriculture, Stop 0781, 1400 Independence Avenue, SW, Washington, DC
20250, telephone (202) 720-1753 (voice) (this is not a toll free
number) or (800) 877-8339 (TDD-Federal Information Relay Service).
SUPPLEMENTARY INFORMATION:
Programs Affected
The Rural Rental Housing program is listed in the Catalog of
Federal Domestic Assistance under Number 10.415, Rural Rental Housing
Loans. Rental Assistance is listed in the Catalog under Number 10.427,
Rural Rental Assistance Payments.
Discussion of Notice
I. Authority and Distribution Methodology
A. Authority
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) provides
RHS with the authority to make loans to any individual, corporation,
association, trust, Indian tribe, public or private nonprofit
organization, consumer cooperative, or partnership to provide rental or
cooperative housing and related facilities in rural areas for very-low,
low, or moderate income persons or families, including elderly persons
and persons with disabilities. Rental assistance (RA) is a tenant
subsidy for very-low and low-income families residing in rural rental
housing facilities with RHS financing and may be requested with
applications for such facilities.
B. Distribution Methodology
The total amount available for FY 2002 for section 515 is
$114,068,998, of which $49,000,000 is available for new construction as
follows:
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Section 515 new construction funds..................... $16,715,502
Set-aside for nonprofits............................... 10,266,209
Set-aside for Underserved Counties and Colonias........ 5,703,450
Set-aside for EZ, EC, and REAP Zones................... 14,814,839
State Rental Assistance (RA) Designated reserve........ 1,500,000
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C. Section 515 New Construction Funds
For fiscal year 2002 the Administrator has determined that it would
not be practical to allocate funds to States because of funding
limitations; therefore, section 515 new construction funds will be
distributed to States based on a National competition, as follows:
1. States will accept, review, score, and rank requests in
accordance with 7 CFR part 1944, subpart E. The scoring factors are:
(a) The presence and extent of leveraged assistance for the units
that will serve RHS income-eligible tenants at basic rents comparable
to those if RHS provided full financing, computed as a percentage of
the RHS total development cost (TDC). RHS TDC excludes non-RHS eligible
costs such as a developer's fee. The required applicant contribution is
not considered leveraged assistance. Leveraged assistance includes
loans and grants from other sources, contributions from the applicant
above the required contribution indicated by the Sources and Uses
Comprehensive Evaluation (available from the Rural Development State
Office) and tax abatements or other savings in operating costs provided
that, at the end of the abatement period when the benefit is no longer
available, the basic rents are comparable to or lower than the basic
rents if RHS provided full financing. Loan proposals that include
secondary funds from other sources that have been requested but have
not yet been committed will be processed as follows: The proposal will
be scored based on the requested funds, provided (1) the applicant
includes evidence of a filed application for the funds; and (2) the
funding date of the requested funds will permit processing of the loan
request in the current funding cycle, or, if the applicant does not
receive the requested funds, will permit processing of the next highest
ranked proposal in the current year. Points will be awarded in
accordance with the following table. (0 to 20 points)
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Percentage of leveraging Points
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75 or more.................................................... 20
70-74......................................................... 19
65-69......................................................... 18
60-64......................................................... 17
55-59......................................................... 16
50-54......................................................... 15
45-49......................................................... 14
40-44......................................................... 13
35-39......................................................... 12
30-34......................................................... 11
25-29......................................................... 10
20-24......................................................... 9
15-19......................................................... 8
10-14......................................................... 7
5-9........................................................... 6
0-4........................................................... 0
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(b) The units to be developed are in a colonia, tribal land, EZ,
EC, or REAP community, or in a place identified in the State
Consolidated Plan or State Needs Assessment as a high need community
for multifamily housing. (20 points)
(c) In states where RHS has an on-going formal working
relationship, agreement, or Memorandum of Understanding (MOU) with the
State to provide State resources (State funds, State RA, HOME funds,
CDBG funds, or Low-Income Housing Tax Credits) for RHS proposals; or
where the State provides preference or points to RHS proposals in
awarding such State resources, 20 points will be provided to loan
requests that include such State resources in an amount equal to at
least 5 percent of the total development cost. Native American Housing
and Self Determination Act (NAHASDA) funds may be considered a State
Resource if the Tribal Plan for NAHASDA funds contains provisions for
partnering with RHS for multifamily housing. (National office
initiative)
(d) The loan request includes donated land meeting the provisions
of 7 CFR 1944.215(r)(4). (5 points)
2. The National office will rank all requests nationwide and
distribute funds to States in rank order, within funding and RA limits.
If insufficient funds or RA remain for the next ranked proposal, the
Agency will select the next ranked proposal that falls within the
remaining levels. Point score ties will be handled as follows: The
highest ranked same-pointed proposal from each State will be selected,
followed by the second highest ranked proposal, and so on, until funds
are exhausted. If there are insufficient funds to select the highest
ranked proposal from each State, selection will be made by lottery.
[[Page 8677]]
D. Applications That Do Not Require New Construction Rental Assistance
(RA)
For fiscal year 2002 limited new construction RA is available.
Therefore, the Agency is inviting applications to develop units in
markets that do not require RA. The market study for non-RA proposals
must clearly demonstrate a need and demand for the units by prospective
tenants at income levels that can support the proposed rents without
tenant subsidies. The proposed units must offer amenities that are
typical for the market area at rents that are comparable to
conventional rents in the market for similar units.
E. Set-asides
Loan requests will be accepted for the following set-asides:
1. Nonprofit set-aside. An amount of $10,266,209 has been set aside
for nonprofit applicants. All loan proposals must be in designated
places in accordance with 7 CFR part 1944, subpart E. A State or
jurisdiction may receive one proposal from this set-aside, which cannot
exceed $1 million. A State could get additional funds from this set-
aside if any funds remain after funding one proposal from each
participating State. If there are insufficient funds to fund one loan
request from each participating State, selection will be made by point
score. If there are any funds remaining, they will revert to the
National office reserve. Funds from this set-aside will be available
only to nonprofit entities, which may include a partnership that has as
its general partner a nonprofit entity or the nonprofit entity's for-
profit subsidiary which will be receiving low-income housing tax
credits authorized under section 42 of the Internal Revenue Code of
1986. To be eligible for this set-aside, the nonprofit entity must be
an organization that:
(a) Will own an interest in the project to be financed and will
materially participate in the development and the operations of the
project;
(b) Is a private organization that has nonprofit, tax exempt status
under section 501(c)(3) or section 501(c)(4) of the Internal Revenue
Code of 1986;
(c) Has among its purposes the planning, development, or management
of low-income housing or community development projects; and
(d) Is not affiliated with or controlled by a for-profit
organization.
2. Underserved counties and colonias set-aside. An amount of
$5,703,450 has been set aside for loan requests to develop units in the
100 most needy underserved counties or colonias as defined in section
509(f) of the Housing Act of 1949.
3. EZ, EC, and REAP set-aside. An amount of $14,814,839 has been
set aside to develop units in EZ, EC, or REAP communities. Loan
requests that are eligible for this set-aside may also be eligible for
regular section 515 funds as a high-need community. The state must
indicate on the list submitted to the National office if the request is
eligible for the EZ, EC, and REAP set-aside and regular section 515
funds. If requests for this set-aside exceed available funds, selection
will be made by point score.
II. Funding Limits
A. Individual loan requests may not exceed $1 million. This applies
to regular section 515 funds and set-aside funds. The Administrator may
make an exception to this limit in cases where a State's average total
development costs exceed the National average by 50 percent or more.
B. No State may receive more than $2.5 million, including set-
asides funds.
III. Rental Assistance (RA)
New construction RA will be held in the National office for use
with section 515 Rural Rental Housing loans. RA may be requested by
applicants, except for non-RA requests in accordance with section I.D.
above.
IV. Application Process
All applications for section 515 new construction funds must be
filed with the appropriate Rural Development State office and must meet
the requirements of 7 CFR part 1944, subpart E and section V of this
NOFA. Incomplete applications will not be reviewed and will be returned
to the applicant. No application will be accepted after 5:00 p.m.,
local time, on the application deadline previously mentioned unless
that date and time is extended by a Notice published in the Federal
Register.
V. Application Submission Requirements
A. Each application shall include all of the information,
materials, forms and exhibits required by 7 CFR part 1944, subpart E as
well as comply with the provisions of this NOFA. Applicants are
encouraged, but not required, to include a checklist and to have their
applications indexed and tabbed to facilitate the review process. The
Rural Development State office will base its determination of
completeness of the application and the eligibility of each applicant
on the information provided in the application.
B. Applicants are advised to contact the Rural Development State
office serving the place in which they desire to submit an application
for the following:
1. Application information and
2. List of designated places for which applications for new section
515 facilities may be submitted.
VI. Areas of Special Emphasis or Consideration
A. The selection criteria contained in 7 CFR part 1944, subpart E
includes two optional criteria, one set by the National Office and one
by the State office. This fiscal year, the National Office initiative
will be used in the selection criteria as follows: In states where RHS
has an on-going formal working relationship, agreement, or Memorandum
of Understanding (MOU) with the State to provide State resources (State
funds, State RA, HOME funds, CDBG funds, or LIHTC) for RHS proposals;
or where the State provides preference or points to RHS proposals in
awarding these State Resources, 20 points will be provided to loan
requests that include such State resources in an amount equal to at
least 5 percent of the total development cost. Native American Housing
and Self Determination Act (NAHASDA) funds may be considered a State
Resource if the Tribal Plan for NAHASDA funds contains provisions for
partnering with RHS for multifamily housing. No State selection
criteria will be used this fiscal year.
B. $10,266,209 is available nationwide in a set-aside for eligible
nonprofit organizations as defined in 42 U.S.C. 1485(w).
C. $5,703,450 is available nationwide in a set-aside for the 100
most Underserved Counties and Colonias.
D. $14,814,839 is available nationwide in a set-aside for EZ, EC,
and REAP communities.
E. $1,500,000 is available nationwide in a reserve for States with
viable State Rental Assistance (RA) programs. In order to participate,
States are to submit specific written information about the State RA
program, i.e., a memorandum of understanding, documentation from the
provider, etc., to the National Office.
Dated: February 15, 2002.
James C. Alsop,
Acting Administrator, Rural Housing Service.
[FR Doc. 02-4330 Filed 2-22-02; 8:45 am]
BILLING CODE 3410-XV-P
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