[Federal Register: February 25, 2002 (Volume 67, Number 37)]
[Notices]
[Page 8684-8697]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25fe02-116]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of Availability of Funds; Multi-Family Housing, Single
Family Housing
AGENCY: Rural Housing Service, USDA.
ACTION: Notice.
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SUMMARY: The Rural Housing Service (RHS) announces the availability of
housing funds for fiscal year 2002 (FY 2002). This action is taken to
comply with 42 U.S.C. 1490p, which requires that RHS publish in the
Federal Register notice of the availability of any housing assistance.
EFFECTIVE DATE: February 25, 2002.
FOR FURTHER INFORMATION CONTACT: For information regarding this notice
contact Teresa Sumpter, Loan Specialist, Single Family Housing Direct
Loan Division, telephone 202-720-1485, Stop 0783, for single family
housing (SFH) issues and Tammy S. Daniels, Loan Specialist, Multi-
Family Housing Processing Division, telephone 202-720-0021, Stop 0781
for multi-family housing (MFH) issues, U.S. Department of Agriculture,
1400 Independence Ave., SW., Washington, DC 20250. (The telephone
numbers listed are not toll free numbers). For information on applying
for assistance, visit our Internet Web site at www. rurdev.usda.gov/
recd__map.html and select your State or check the blue pages in your
local telephone directory under ``Rural Development'' for the office
serving your area. Also attached for information purposes is a listing
of Rural Development State Directors, State Office addresses and phone
numbers.
SUPPLEMENTARY INFORMATION:
Programs Affected
The following programs are subject to the provisions of Executive
Order 12372 that requires intergovernmental consultation with State and
local officials. These programs or activities are listed in the Catalog
of Federal Domestic Assistance under Nos.
10.405 Farm Labor Housing (LH) Loans and Grants
10.410 Very Low to Moderate Income Housing Loans
10.411 Rural Housing Site Loans and Self-Help Housing Land Development
Loans
10.415 Rural Rental Housing Loans
10.417 Very Low Income Housing Repair Loans and Grants
10.420 Rural Self-Help Housing Technical Assistance
10.427 Rural Rental Assistance Payments
10.433 Rural Housing Preservation Grants
10.442 Housing Application Packaging Grants
Discussion of Notice
Part 1940, subpart L of 7 CFR contains the ``Methodology and
Formulas for
[[Page 8685]]
Allocation of Loan and Grant Program Funds.'' To apply for assistance
under these programs or for more information, contact the Rural
Development Office for your area. Separate guidance has been provided
to our State offices for assistance available in our Multi- and Single-
Family Housing programs as follows:
Multi-Family Housing (MFH)
I. General
A. This provides guidance on MFH funding for the Rural Rental
Housing program (RRH) for FY 2002 (does not include carryover funds).
Allocation computations have been performed in accordance with 7 CFR
1940.575 and 1940.578. For FY 2002, State Directors, under the Rural
Housing Assistance Grants (RHAG), will have the flexibility to transfer
their initial allocations of budget authority between the Single Family
Housing (SFH) section 504 Rural Housing Grants and section 533 Housing
Preservation Grant (HPG) programs.
B. MFH loan and grant levels for FY 2002 are as follows:
MFH Loan Programs Credit Sales: $1,778,515
Section 514 Farm Labor Housing (LH) loans: *$28,459,099
Section 515 Rural Rental Housing (RRH) loans: *$114,068,998
Section 521 Rental Assistance (RA) and 502(c)(5)(C) Advance:
*$701,004,000
Section 516 LH grants: *$17,967,000
Section 525 Technical and Supervisory Assistance grants (TSA) and 509
Housing Application Packaging grants: $1,415,977
(HAPG) (Shared between single and multi-family housing): (includes
carryover)
Section 533 Housing Preservation grants (HPG): *$7,982,000
Section 538 Guaranteed Rural Rental Housing program: *$99,770,992
* Does not include disaster or regular program carryover.
II. Funds Not Allocated to States
A. Credit Sales Authority. For FY 2002, $1,778,515 will be set
aside for credit sales to program and nonprogram buyers. Credit sale
funding will not be allocated by State.
B. Section 538 Guaranteed Rural Rental Housing Program. Guaranteed
loan funds will be made available under a Notice of Funding
Availability (NOFA) being published in the Federal Register. Additional
guidance will be provided at that time.
III. Farm Labor Housing (LH) Loans and Grants.
The Administrator has the authority to transfer funds between the
two programs. Upon NOFA closing the Administrator will evaluate the
responses and determine proper distribution of funds between loans and
grants.
A. Section 514 Farm LH Loans
1. These loans are funded in accordance with 7 CFR 1940.579(a).
FY 2002 Appropriation: $28,459,099
Available for Off-Farm Loans: $22,459,099
Available for On-Farm Loans: $2,500,000
National Office Reserve: $3,500,000
2. Off-farm loan funds will be made available under a NOFA being
published in the Federal Register. Additional guidance will be provided
in the NOFA.
B. Section 516 Farm LH Grants
1. Grants are funded in accordance with 7 CFR 1940.579(b).
Unobligated prior year balances and cancellations will be added to the
amount shown.
FY 2002 Appropriation: $17,967,000
Available for LH Grants for Off-Farm: $13,967,000
Available for Technical Assistance Grants: $1,500,000
National Office Reserve: $2,500,000
2. Labor Housing grant funds for Off-Farm will be made available
under a NOFA being published in this Federal Register. Additional
guidance will be provided in the NOFA.
C. Labor Housing Rental Assistance (RA) will be held in the
National Office for use with LH loan and grant applications. RA is only
available with an LH loan of at least 5 percent of the total
development cost. Projects without a LH loan cannot receive RA.
IV. Section 515 RRH Loan Funds
FY 2002 section 515 Rural Rental Housing allocation (Total):
$114,068,998
New Construction funds and set-asides: $49,000,000
New construction loans: $16,715,502
Set-aside for nonprofits: $10,266,209
Set-aside for underserved counties and colonias: $5,703,450
Earmark for EZ, EC, or REAP Zones: $14,814,839
State RA designated reserve: $1,500,000
Rehab and repair funds and equity: $55,000,000
Rehab and repair loans: $50,000,000
Designated equity loan reserve: $5,000,000
General Reserve: $10,068,998
A. New construction loan funds. New construction loan funds will be
made available using a national NOFA being published in the Federal
Register. Upon closing of the NOFA, States will submit a list, in rank
order of the eligible projects.
B. National Office New Construction Set-asides. The following
legislatively mandated set-asides of funds are part of the National
office set-aside:
1. Nonprofit Set-aside. An amount of $10,266,209 has been set aside
for nonprofit applicants. All Nonprofit loan proposals must be located
in designated places as defined in RD Instruction 1944-E.
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
underserved 100 most needy counties or colonias as defined in section
509(f) of the Housing Act of 1949 as amended. Priority will be given to
proposals to develop units in colonias or tribal lands.
3. EZ, EC or REAP Zone Earmark. An amount of $14,814,839 has been
earmarked for loan requests to develop units in EZ or EC communities or
REAP Zones until June 30, 2002.
C. Rental Assistance (RA). Limited new construction RA will be held
in the National office for use with section 515 Rural Rental Housing
loans.
D. Designated Reserves for State RA. An amount of $1.5 million of
section 515 loan funds has been set aside for matching with projects in
which an active State sponsored RA program is available. The State RA
program must be comparable to the RHS RA program.
E. Repair and Rehabilitation Loans. Tenant health and safety
continues to be the top priority. Repair and rehabilitation funds must
be first targeted to RRH facilities that have physical conditions that
affect the health and safety of tenants and subsequently made available
to facilities that have deferred maintenance. All funds will be held in
the National office and will be distributed based upon indicated
rehabilitation needs in the MFH survey conducted in October 2001.
F. Designated Reserve for Equity Loans. An amount of $5 million has
been designated for the equity loan preservation incentive described in
RH Instruction 1965-E. The $5 million will be further divided into $4
million for equity loan requests currently on the pending funding list
and $1 million to facilitate the transfer of properties from for-profit
owners to nonprofit corporations and public bodies. Funds for such
transfers would be authorized
[[Page 8686]]
only for for-profit owners who are currently on the pending funding
list who agree to transfer to nonprofit corporations or public bodies
rather than to remain on the pending list. If insufficient transfer
requests are generated to utilize the full $1 million set aside for
nonprofit and public body transfers, the balance will revert to the
existing pending equity loan funding list.
G. General Reserve. There is one general reserve fund of
$10,068,998. Some examples of immediate allowable uses include, but are
not limited to, hardships and emergencies, RH cooperatives or group
homes, or RRH preservation.
V. Section 533 Housing Preservation Grants (HPG).
Total Available: $7,982,000
Less General reserve: $782,000
Less Earmark for EZ, EC, or REAP Zones: $600,000
Total Available for Distribution: $6,600,000
Amount available for allocation. See end of this Notice for HPG
State allocations. Fund availability will be announced in a NOFA being
published in the Federal Register.
The amount of $600,000 is earmarked for EZ, EC or REAP Zones until
June 30, 2002.
Single Family Housing (SFH)
I. General
All SFH programs are administered through field offices. For more
information or to make application, please contact the Rural
Development office servicing your area. To locate these offices,
contact the appropriate State Office from the attached State Office
listing, visit our web site at www.rurdev.usda.gov/recd__map.html or
check the blue pages in your local telephone directory under ``Rural
Development'' for the office serving your area.
A. This notice provides SFH allocations for FY 2002. Allocation
computations have been made in accordance with 7 CFR 1940.563 through
1940.568. Information on basic formula criteria, data source and
weight, administrative allocation, pooling of funds, and availability
of the allocation are located on a chart at the end of this notice.
B. The SFH levels authorized for FY 2002 are as follows:
Section 502 Guaranteed Rural Housing (RH) loans
Nonsubsidized Guarantees: $3,137,968,750
Section 502 Direct RH loans
Very low-income subsidized loans: $475,133,131
Low-income subsidized loans: $604,714,893
Credit sales (Nonprogram): $10,000,000
Section 504 housing repair loans: $32,324,929
Section 504 housing repair grants: ***$30,053,395
Section 509 compensation for construction defects: **$574,204
Section 523 mutual and self-help housing grants **: ***$56,055,462
Section 523 Self-Help Site Loans: $5,000,000
Section 524 RH site loans: $5,090,909
Section 306C Water and waste disposal grants: **$1,458,569
Section 525 Supervisory and technical assistance and section 509
Housing Application:
Packaging Grants Total Available for single and multi-family:
**$1,415,977
North Carolina Elderly Demonstration Program
Modular Home Loans: **$1,961,244
Modular Home Grants: **$3,998,627
Natural disaster funds (Section 502 loans): **$2,274,638
Natural disaster funds (Section 504 loans): **$13,462,253
Natural disaster funds (Section 504 grants): **$5,035,979
*Includes $600,000 for EZ/EC and REAP communities until June 30,
2002.
**Carryover funds are included in the balance.
***Includes $1,000,000 for EZ/EC and REAP communities until June
30, 2002.
c. SFH Funding Not Allocated to States. The following funding is
not allocated to States by formula. Funds are made available to each
state on a case-by-case basis.
1. Credit sale authority. Credit sale funds in the amount of
$10,000,000 are available only for nonprogram sales of Real Estate
Owned (REO) property.
2. Section 509 Compensation for Construction Defects. $574,204 is
available for compensation for construction defects.
3. Section 523 Mutual and Self-Help Technical Assistance Grants.
$56 million is available for section 523 Mutual and Self-Help Technical
Assistance Grants. Of these funds, $1 million is earmarked for EZ, EC
or REAP Zones until June 30, 2002. A technical review and analysis must
be completed by the Technical and Management Assistance (T&MA)
contractor on all predevelopment, new, and existing (refunding) grant
applications.
4. Section 523 Mutual and Self-Help Site Loans and Section 524 RH
Site Loans. $5,000,000 and $5,090,909 are available for section 523
Mutual Self-Help and Section 524 RH Site loans, respectively.
5. Section 306C WWD Grants to Individuals in Colonias. The
objective of the section 306C WWD individual grant program is to
facilitate the use of community water or waste disposal systems for the
residents of the colonias along the U.S.-Mexico border.
The total amount available to Arizona, California, New Mexico, and
Texas will be $1,458,569 for FY 2002. This amount includes the
carryover unobligated balance of $458,569 and the transferred amount of
$1 million from the Rural Utilities Service (RUS) to RHS for processing
individual grant applications.
6. Section 525 Technical and Supervisory Assistance (TSA) and
Section 509 Housing Application Packaging Grants (HAPG). $998,000 of
new funds and $417,977 of carryover funds from previous years remain
available for the TSA and HAPG programs. The 29 eligible States under
HAPG that have active grantees operating will be able to access up to
$5,000 for section 502 or 504 loan and grant programs in order to
continue operations. Reserve requests will be considered on a first-
come, first-served basis.
7. North Carolina Elderly Demonstration Program. Budget authority
was earmarked in FY 2001 for the North Carolina Elderly Demonstration
Program. These funds were used to provide Section 502 loans and grants
in North Carolina for very low- and low-income elderly families who
lost their housing as a result of a major disaster declared by the
President. Unobligated funds have been carried over into FY 2002 for
this demo program. These funds will remain available until they are
exhausted.
8. Natural Disaster Funds. Funds are available until exhausted to
those States with active Presidential Declarations.
9. Deferred Mortgage Payment Demonstration. There is no FY 2002
funding provided for deferred mortgage authority or loans for deferred
mortgage assumptions.
D. Contingency Reserve. For the Section 502 direct and Section 504
loan and grant programs, a 5 percent contingency reserve will be held
in the National Office pending a potential rescission of funds which
may be used to offset federal outlays to address the tragic events of
September 11, 2001. If no rescession occurs, these funds will be
distributed to the States based upon the allocation formula.
[[Page 8687]]
II. State allocations
A. Section 502 Nonsubsidized Guaranteed RH (GRH) Loans
1. Amount Available for Allocation.
Total Available: $3,137,968,750
Less National Office General Reserve: $700,348,107
Less Special Outreach Area Reserve: $300,120,643
Basic Formula--Administrative Allocation: $2,137,500,000
2. National Office General Reserve. The Administrator may restrict
access to this reserve for States not meeting their goals in special
outreach areas.
3. Special Outreach Areas. FY 2002 GRH funding is allocated to
States in two funding streams (70/30) similar to the 60/40 income split
for direct SFH funds. Seventy percent of GRH funds may be used in any
eligible area. Thirty percent of GRH funds are to be used in special
outreach areas. Special outreach areas are counties with median incomes
at or below the State's nonmetropolitan median income. Each funding
stream will independently be subject to pooling.
4. National Office Special Area Outreach Reserve. A special
outreach area reserve fund has been established at the National office.
Funds from this reserve may only be used in special outreach areas.
B. Section 502 Direct RH Loans
1. Amount Available for Allocation.
Total Available: $1,079,848,024
Less Required Set Aside for:
Underserved Counties and Colonias: $53,992,401
EZ, EC and REAP Earmark: $38,000,000
Less 5% contingency: $53,000,000
Less General Reserve: $145,000,623
Administrator's Reserve: $30,000,623
Hardships & Homelessness: $3,500,000
Rural Housing Demonstration Program: $1,500,000
Homeownership Partnership: $95,000,000
Program funds for the sale of REO properties: $15,000,000
Less Designated Reserve for Self-Help: $110,000,000
Basic Formula Administrative Allocation: $679,855,000
2. Reserves.
a. State Office Reserve. State Directors must maintain an adequate
reserve to fund the following applications:
(i) Hardship and homeless applicants including the direct section
502 loan and section 504 loan and grant programs.
(ii) Mutual Self-Help loans.
(iii) Subsequent loans for essential improvements or repairs and
transfers with assumptions.
(iv) Financing for the purchase of program REOs when the National
office reserve has been exhausted.
(v) States will leverage an amount equal to 25 percent of their
initial low-income allocation and 5 percent of their initial very low-
income allocation with funding from other sources. For example, if a
State receives an initial low-income allocation of $900,000 the amount
to be leveraged from other sources would be $225,000 ($900,000 x 25
percent) for a total RHS and other funding source of $1,125,000
($900,000 + $225,000).
(vi) Areas targeted by the State according to its strategic plan.
b. National Office Reserves.
(i) General Reserve. The National office has a general reserve of
$145 million. Of this amount, the Administrator's reserve is $30
million. One of the purposes of the Administrator's reserve will be for
loans in Indian Country. Indian Country is defined as land inside the
boundaries of Indian reservations, communities made up mainly of Native
Americans, Indian trust and restricted land, and tribal allotted lands.
The remaining reserves will be established as follows:
(ii) Hardship and Homelessness Reserve. $3.5 million has been set
aside for hardships and homeless.
(iii) Rural Housing Demonstration Program. $1.5 million has been
set aside for innovative demonstration initiatives.
(iv) Program credit sales. $20 million has been set aside for
program sales of REO property.
(c) Homeownership Partnership. $95 million has been set aside for
Homeownership Partnerships. These funds will be used to expand existing
partnerships and create new partnerships, such as the following:
(i) Department of Treasury, Community Development Financial
Institutions (CDFI)--Funds will be available to fund leveraged loans
made in partnership with the Department of Treasury CDFI participants.
(ii) Partnership initiatives established to carry out the
objectives of the rural home loan partnership (RHLP).
(d) Designated Reserve for Self-Help. $110 million has been set
aside for matching funds to assist participating Self-Help applicants.
The matching funds were established on the basis of the National office
contributing 75 percent from the National office reserve and States
contributing 25 percent of their allocated section 502 RH funds.
(e) Underserved Counties and Colonias. An amount of $53,992,401 has
been set aside for the 100 underserved counties and colonias.
(f) Empowerment Zone (EZ) and Enterprise Community (EC) or Rural
Economic Area Partnership (REAP) earmark. An amount of $38,000,000 has
been earmarked until June 30, 2002, for loans in EZ, EC or REAP Zones.
Further information will follow.
(g) State Office Pooling. If pooling is conducted within a State,
it must not take place within the first 30 calendar days of the first,
second, or third quarter. (There are no restrictions on pooling in the
fourth quarter.)
(h) Suballocation by the State Director. The State Director may
suballocate to each area office using the methodology and formulas
required by 7 CFR part 1940, subpart L. If suballocated to the area
level, the Rural Development Manager will make funds available on a
first-come, first-served basis to all offices at the field or area
level. No field office will have its access to funds restricted without
the prior written approval of the Administrator.
B. Section 504 Housing Loans and Grants. Section 504 grant funds
are included in the Rural Housing Assistance Grant program (RHAG) in
the FY 2002 appropriation.
1. Amount available for allocation.
Section 504 Loans
Total Available: $32,324,929
Less 5% for 100 Underserved Counties and Colonias: $1,616,247
EZ, EC or REAP Zone Earmark: $1,200,000
Less 5% contingency: $1,600,000
Less General Reserve: $1,500,682
Basic Formula--Administrative Allocation: $26,408,000
Section 504 Grants
Total Available: $30,053,395
Less 5% for 100 Underserved Counties and Colonias: $1,496,700
Less EZ, EC or REAP Earmark: $600,000
Less 5% contingency: $1,400,000
Less General Reserve: $1,619,395
Basic Formula-Administrative Allocation: $24,937,300
2. Reserves and Set-asides.
a. State Office Reserve. State Directors must maintain an adequate
reserve to handle all anticipated hardship applicants based upon
historical data and projected demand.
b. Underserved Counties and Colonias. Approximately $1.6 million
and $1.5 million have been set aside for the 100 underserved counties
and colonias until June 30, 2002, for the section 504 loan and grant
programs, respectively.
c. Empowerment Zone (EZ) and Enterprise Community (EC) or Rural
Economic Area Partnership (REAP)
[[Page 8688]]
Earmark (Loan Funds Only). Approximately $1.2 million and $600,000 have
been earmarked through June 30, 2002, for EZ, EC or REAPs for the
section 504 loan and grant programs, respectively.
d. General Reserve. $1.5 million for section 504 loan hardships and
$1.6 million for section 504 grant extreme hardships have been set-
aside in the general reserve. For section 504 grants, an extreme
hardship case is one requiring a significant priority in funding, ahead
of other requests, due to severe health or safety hazards, or physical
needs of the applicant.
Information on Basic Formula Criteria, Data Source and Weight, Administrative Allocation, Pooling of Funds, and
Availability of the Allocation
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Section 502
No. Description nonsubsidized Section 502 direct RH Section 504 loans and
guaranteed RH loans loans grants
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1 Basic formula criteria, See 7 CFR 1940.563(b). See 7 CFR 1940.565(b). See 7 CFR 1940.566(b)
data source, and weight. and 1940.567(b).
2 Administrative Allocation: $1,000,000............ $1,000,000............ $1,000,000 loan
Western Pacific Area. $500,000 grant.
3 Pooling of funds:
a. Mid-year pooling........ If necessary.......... If necessary.......... If necessary.
b. Year-end pooling........ August 16, 2002....... August 16, 2002....... August 16, 2002.
c. Underserved counties and N/A................... June 30, 2002......... June 30, 2002.
colonias.
d. EZ, EC or REAP.......... N/A................... June 30, 2002......... June 30, 2002.
e. Credit sales............ N/A................... June 30, 2002......... N/A.
4 Availability of the
allocation:
a. first quarter........... 50 percent............ 50 percent............ 50 percent.
b. second quarter.......... 75 percent............ 70 percent............ 70 percent.
c. third quarter........... 90 percent............ 90 percent............ 90 percent.
d. fourth quarter.......... 100 percent........... 100 percent........... 100 percent.
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1. Data derived from the 1990 U.S. Census was provided to each State by the National office on August 12, 1993.
2. Due to the absence of Census data.
3. All dates are tentative and are for the close of business (COB). Pooled funds will be placed in the National
office reserve and made available administratively. The Administrator reserves the right to redistribute funds
based upon program performance.
4. Funds will be distributed cumulatively through each quarter listed until the National office year-end pooling
date.
Dated: February 15, 2002.
James C. Alsop,
Acting Administrator, Rural Housing Service.
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[FR Doc. 02-4333 Filed 2-22-02; 8:45 am]
BILLING CODE 3410-XV-C
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