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Catalog of Federal Domestic Assistance

Program Descriptions

CATALOG OF FEDERAL DOMESTIC ASSISTANCE

10.444:  Direct Housing: Natural Disaster Loans and Grants

Popular Name:  SECTION 504, Rural Housing Loans and Grants

Objectives:  To assist qualified recipients to meet emergency assistance needs resulting from natural disaster. Funds are only available to the extent that funds are not provided by the Federal Emergency Management Agency (FEMA). For the purpose of administering these funds, natural disaster will only include those counties identified by a Presidential declaration.

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

10.444 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  Applicants must own and occupy the home in a rural area. Loan recipients must have sufficient income to repay the loan. Grant recipients must be 62 years of age or older and be unable to repay a loan for that part of the assistance received as a grant. The applicant's income for a loan may not exceed the very low-income limit set forth in Appendix 9 of the Direct Single Family Housing Programs Handbook which can be located in any Rural Development (RD) field office. Very low-income limits range from $6,300 to $22,650 for a single person household, depending on an area's median income.

Beneficiary Eligibility:  Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria.

Credentials/Documentation:  Natural disasters will only include those areas identified by a Presidential declaration. Funds are only available to the extent that funds are not provided by the Federal Emergency Management Agency (FEMA). Applicants must establish that physical damage was caused by natural disaster. For Section 504 loans/grants, there must be evidence of ownership and verification of income and debts. For grant recipients, evidence of age is required. The applicant must be unable to get credit elsewhere and demonstrate repayment for the loan.

10.444 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372.

Application Procedure:  Applicants must file Form RD 410-4 at the RHS/RD county office serving the county where the dwelling is located. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure:  Final approval of the application is given by the Community Development Manager.

Deadlines:  Applicants must file applications from the date of declaration/designation and until supplemental appropriated funds are exhausted.

Range of Approval/Disapproval Time:  From 30 to 60 days subject to the availability of funds, from the time the application is filed if no backlog of applications exist.

Appeals:  Applicants may request reconsideration at the local RD county office or may appeal adverse actions in accordance with RD instruction appeal procedure. Appeals may be filed within 30 days after notification of the adverse decision is received by the loan/grant applicants.

Renewals:  Applicants may reapply at any time.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  (Loans) $5,046; (Grants) $5,143.

10.444 RELATED PROGRAMS:

• 10.410 Very Low to Moderate Income Housing Loans.

10.444 PROGRAM ACCOMPLISHMENTS:

In fiscal year 1999, the number of existing houses improved through Section 504 Loans and Grants was 9,075.

10.444 FINANCIAL AND ADMINISTRATIVE INFO:

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

Type of Assistance:  Direct Loans; Project Grants.

Obligations:  (Loans) FY 99 $490,000; FY 00 est $15,620,000; and FY 01 est $0. (Grants) FY 99 $1,088 (based on cancellations from previous fiscal years); FY 00 est $11,592,000; and FY 01 est $0. Note: Funds under this program are based on supplemental funding provided by Congress in response to a natural disaster.

Budget Account Number:  (Loans) 12-2081-0-1-371; 12-4215-0-3-371. (Grants) 12-1953-0-1-999.

Authorization:  Housing Act of 1949, Title V, Section 504, as amended, Public Laws 89-117, 89-754, and 92-310, 42 U.S.C. 1474; Public Law 104-134.

Regulations, Guidelines, and Literature:  7 CFR 3550.

10.444 INFO CONTACTS:

Regional or Local Office:  Consult your local phone directory under United States Department of Agriculture for RD county office number. If no listing, contact appropriate RD State Office listed in Appendix IV of the Catalog or on the internet at www.rurdev.usda.gov/recd_map.html.

Headquarters Office:  Director, Single Family Processing Division, Rural Housing Service (RHS), Department of Agriculture, Washington, DC 20250. Phone: (202) 720-1474. Use the same number for FTS. (Home Page)

(See Appendix IV for more contact info.)

10.444 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  This program has no matching requirement or statutory formula.

Length and Time Phasing of Assistance:  These funds are available only if the Supplemental Emergency Funding for Natural Disaster has been enacted.

Uses and Use Restrictions:  To assist very-low income owner-occupants to repair or replace damaged property as a direct result of a natural disaster. Loans are made in counties named by the Federal Management Agency as being eligible for Federal assistance under an emergency declaration by the President.

10.444 POST ASSISTANCE REQUIREMENTS:

Reports:  None.

Audits:  None.

Records:  Borrowers are not required to, but should retain copies of loan/grant related documents.