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Catalog of Federal Domestic Assistance

Program Descriptions

10.415:  Rural Rental Housing Loans

Objectives:  To provide economically designed and constructed rental and cooperative housing and related facilities suited for rural residents.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

10.415 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  Applicants may be individuals, cooperatives, nonprofit organizations, State or local public agencies, profit corporations, trusts, partnerships, limited partnerships, and be unable to finance the housing either with their own resources or with credit obtained from private sources. However, applicants must be able to assume the obligations of the loan, furnish adequate security, and have sufficient income for repayment. They must also have the ability and intention of maintaining and operating the housing for purposes for which the loan is made. Loans may be made in communities up to 10,000 people in MSA areas and some communities up to 20,000 population in non-MSA areas. Applicants in towns of 10,000 to 20,000 should check with their local Rural Development; office to determine if the agency can serve them. Assistance is available to eligible applicants in States, Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana's, and the Trust Territory of the Pacific Islands.

Beneficiary Eligibility:  Occupants must be very low-, low- or moderate-income families households, elderly, handicapped, or disabled persons.

Credentials/Documentation:  Applicants must furnish evidence of the following: (a) A comprehensive market analysis showing the need for such service; (b) a legal capacity to incur the obligation and operate the housing; (c) a sound budget; (d) good credit history; (e) inability to obtain necessary funds from other sources on terms and conditions that would enable the applicants to rent the units for amounts that are within payment ability of eligible very low, low-, or moderate-income family, households, elderly, handicapped, or disabled occupants. This program is excluded from coverage under OMB Circular No. A-87.

10.415 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  Not applicable. This program is excluded from coverage under E.O. 12372.

Application Procedure:  For FY 00 the Section 515 Program will be awarded through a Notice of Funding Availability (NOFA) announced in the Federal Register December 21, 1999. The NOFA application period is 60 days from the date of the announcement. The NOFA deadline is February 22, 2000.

Award Procedure:  Application will be scored on the following factors (scoring factors are the same as for FY 1999): (1) 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. (0 to 20 points); (2) The units to be developed are in a colonial, 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. ("State" refers to the State Government.) (20 points); and (3) 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, points will be provided to loan requests that include such State resources. (This is the National office initiative and is the same as that used in FY 1999.) (20 points).

Deadlines:  February 22, 2000.

Range of Approval/Disapproval Time:  From 90 to 200 days.

Appeals:  Applicant may request reconsideration on the basis of pertinent facts concerning the application.

Renewals:  Applicants may reapply at next NOFA.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  Initial insured loans to individuals, $60,000 to $450,000; $250,000. Initial insured loans to organizations, $75,000 to $2,000,000; $950,000.

10.415 RELATED PROGRAMS:

• 10.405 Farm Labor Housing Loans and Grants;
• 10.411 Rural Housing Site Loans;
• 10.427 Rural Rental Assistance Payments.

10.415 PROGRAM ACCOMPLISHMENTS:

10.415 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  RURAL HOUSING SERVICE (RHS), (DEPARTMENT OF AGRICULTURE )

Type of Assistance:  Direct Loans.

Obligations:  (Direct Loans) FY 99 $114,178; FY 00 est $114,322; and FY 01 est $120,000.

Budget Account Number:  12-4141-0-3-371; 12-2081-0-1-371.

Authorization:  Housing Act of 1949, as amended, Sections 515 and 521, Public Law 102-550, 42 U.S.C. 1485, 1490a.

Regulations, Guidelines, and Literature:  RD Instruction 1944-E, "Rural Rental Housing Loan Policies Procedures, and Authorizations;" 7 CFR 1944.201-1944.250; 1822.231-1822.244; Rural Rental Housing, PA-1039, and Congregate Housing Financed by RD, PA-1252.

10.415 INFO CONTACTS:

Regional or Local Office:  Consult your local phone directory for Rural Development county or district office number. If no listing, get in touch with appropriate Rural Development State office listed in Appendix IV of the Catalog or on the internet at www.rurdev.usda.gov/recd_map.html.

Headquarters Office:  Director, Multi-Family Housing Processing Division, Rural Housing Service, Department of Agriculture, Washington, DC 20250. Phone: (202) 720-1604. Use the same number for FTS. (Home Page)

(See Appendix IV for more contact info.)

10.415 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  The statistical factors used for fund allocation are: 1. State percentage of Rural Development rural population and the source is "1990 Census" updated with an overall factor of population growth, ESCS; 2. State percentage of housing units in rural areas lacking plumbing and/or overcrowded and the source is "1990 Census," Bureau of the Census; and 3. State percentage of rural persons in poverty and the source is "1990 Census." Statistical factors used for eligibility are: 1. Communities of 10,000 population or less in a MSA designated area and the source is "1990 Census"; 2. rural communities less than 20,000 population not in MSA's and the source is "1990 Census"; and 3. tenant eligibility: area median income is available at local Rural Development offices and the source is "1990 Census."

Length and Time Phasing of Assistance:  Not applicable.

Uses and Use Restrictions:  Loans can be used to construct, purchase and substantially rehabilitate rental or cooperative housing or to develop manufactured housing projects. Housing as a general rule will consist of multi-units with two or more family units and any appropriately related facilities. Funds may also be used to provide approved recreational and service facilities appropriate for use in connection with the housing and to buy and improve the land on which the buildings are to be located. Loans may not be made for nursing, special care, or institutional-type homes.

10.415 POST ASSISTANCE REQUIREMENTS:

Reports:  Monthly progress reports are to be made to the Rural Development Manager, during the first six months of successful operation and each month thereafter until discontinued by the Rural Development Manager. Annual reports required thereafter.

Audits:  For borrowers not covered under OMB Circular No. A-133, annual audits conducted in accordance with Government Auditing Standards are required from borrowers with 25 or more units in any project. In accordance with the provisions of 7 CFR Part 3052, "Audits of States, Local Governments, and Non-Profit Organizations," which implement OMB Circular No. A-133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that receive financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 7 CFR 3052.

Records:  Good business records required.