Notice2024-08155
Notice of Solicitation of Applications for Section 514 Off-Farm Labor Housing Loans and Section 516 Off-Farm Labor Housing Grants for New Construction for Fiscal Year 2024
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 19, 2024
Issuing agencies
Agriculture DepartmentRural Housing Service
Abstract
The Rural Housing Service (RHS or Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), announces that it is soliciting competitive pre-applications for Section 514 Off-Farm Labor Housing (Off-FLH) loans and Section 516 Off- FLH grants for the construction of new Off-FLH units for domestic farm laborers, retired domestic farm laborers, or disabled domestic farm laborers. The program objective is to increase the supply of affordable housing for farm laborers. This Notice describes the method used to distribute funds, the pre-application and final application process, and submission requirements.
Full Text
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<title>Federal Register, Volume 89 Issue 77 (Friday, April 19, 2024)</title>
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[Federal Register Volume 89, Number 77 (Friday, April 19, 2024)]
[Notices]
[Pages 28717-28732]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-08155]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
[Docket No. RHS-24-MFH-0010]
Notice of Solicitation of Applications for Section 514 Off-Farm
Labor Housing Loans and Section 516 Off-Farm Labor Housing Grants for
New Construction for Fiscal Year 2024
AGENCY: Rural Housing Service, United States Department of Agriculture.
ACTION: Notice of Solicitation of Applications (NOSA).
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SUMMARY: The Rural Housing Service (RHS or Agency), a Rural Development
(RD) agency of the United States Department of Agriculture (USDA),
announces that it is soliciting competitive pre-applications for
Section 514 Off-Farm Labor Housing (Off-FLH) loans and Section 516 Off-
FLH grants for the construction of new Off-FLH units for domestic farm
laborers, retired domestic farm laborers, or disabled domestic farm
laborers. The program objective is to increase the supply of affordable
housing for farm laborers. This Notice describes the method used to
distribute funds, the pre-application and final application process,
and submission requirements.
DATES: Eligible pre-applications submitted to the Production and
Preservation Division, Processing and Report Review Branch, for this
Notice will be accepted until July 3, 2024, 12:00 p.m., Eastern Time.
Applications that are deemed eligible but are not selected for further
processing due to inadequate funding will be withdrawn from processing.
RHS will not consider any application that is received after the
established deadlines unless the date and time are extended by another
Notice published in the Federal Register. The RHS may at any time
supplement, extend, amend, modify, or supersede this Notice by
publishing another Notice in the Federal Register. Additional
information about this funding opportunity can be found on the
<a href="http://Grants.gov">Grants.gov</a> website at <a href="http://www.grants.gov">http://www.grants.gov</a>.
The application deadlines are as follows:
1. Available loan and grant funding posted to the RHS Multifamily
Housing (MFH) website by April 19, 2024.
2. Pre-applications must be submitted by July 3, 2024, 12 p.m.,
Eastern Time.
3. RHS pre-application notice to proceed and non-selection
notifications to applicants by September 3, 2024.
4. Final applications must be submitted by October 16, 2024, 12
p.m., Eastern Time.
5. Awards communicated to applicants by December 16, 2024.
6. Awards posted to the RHS website by January 14, 2025.
ADDRESSES: Applications to this Notice must be submitted electronically
to the Production and Preservation Division, Processing and Report
Review Branch.
At least three business days prior to the application deadline, the
applicant must email the RHS a request to create a shared folder in
CloudVault. The email must be sent to the following address: <a href="/cdn-cgi/l/email-protection#19567f7f345f555178696975707a786d70767759257839716b7c7f24" http: usda.gov">usda.gov</a>">Off-FLHapplication@<a href="http://usda.gov">usda.gov</a></a>. The email must contain the following
information:
1. Subject line: ``Off-FLH New Construction Application
Submission.''
2. Body of email: Borrower Name, Project Name, Borrower Contact
Information, Project State.
3. Request language: ``Please create a shared CloudVault folder so
that we may submit our new construction application documents.''
Once the email request to create a shared CloudVault folder has
been received, a shared folder will be created within two business
days. When the shared CloudVault folder is created by the RHS, the
system will automatically send an email to the applicant's submission
email address with a link to the shared folder. All required
application documents in accordance with this Notice must be loaded
into the shared CloudVault folder. The applicant's access to the shared
CloudVault folder will be removed when the submission deadline is
reached. Any document uploaded to the shared CloudVault folder after
the application deadline will not be reviewed or considered. Please
note: CloudVault is a USDA[hyphen]approved cloud[hyphen]based file
sharing and synchronization system. CloudVault folders are neither
suitable nor intended for file storage due to agency file retention
policies and space limitations. Therefore, the agency will remove all
application-related files stored in shared CloudVault folders the
latter of either 180 days from the application date, or once the
application has been processed and the transaction has been closed.
FOR FURTHER INFORMATION CONTACT: Jonathan Bell, Branch Director,
Processing and Report Review Branch, Production and Division,
Multifamily Housing Programs, Rural Development, United States
Department of Agriculture, via email: <a href="/cdn-cgi/l/email-protection#58151e10282a373b3d2b2b31363f6918643978302a3d3e65" http: usda.gov">usda.gov</a>">MFHprocessing1@<a href="http://usda.gov">usda.gov</a></a> or phone
at: 202-205-9217.
SUPPLEMENTARY INFORMATION:
[[Page 28718]]
Authority
This solicitation is authorized pursuant to the Title V of the
Housing Act of 1949 (Pub. L. 81-171), as amended; 7 CFR 3560, subpart
L; 42 U.S.C. 1484; 42 U.S.C. 1486; and 42 U.S.C. 1480.
RD: Key Priorities
RD will continue to support and promote activities and investments
that will achieve the following:
1. Creating More and Better Market Opportunities: Assisting rural
communities recover economically through more and better market
opportunities and through improved infrastructure.
2. Addressing Climate Change and Environmental Justice: Reducing
climate pollution and increasing resilience to the impacts of climate
change through economic support for rural communities.
3. Advancing Racial Justice, Place-Based Equity, and Opportunity:
Ensuring all rural residents have equitable access to RD programs and
benefits from RD funded projects. For further information, visit
<a href="https://www.rd.usda.gov/priority-points">https://www.rd.usda.gov/priority-points</a>.
Background
USDA's RD Agencies, comprised of the Rural Business-Cooperative
Service (RB-CS), Rural Housing Service (RHS), and the Rural Utilities
Service (RUS), are leading the way in helping rural America improve the
quality of life and increase the economic opportunities for rural
people. RHS offers a variety of programs to build or improve housing
and essential community facilities in rural areas. The Agency also
offers loans, grants, and loan guarantees for single-family and multi-
family housing, child-care centers, fire and police stations,
hospitals, libraries, nursing homes, schools, first responder vehicles
and equipment, housing for farm laborers and much more. The Agency also
provides technical assistance loans and grants in partnership with non-
profit organizations, Indian tribes, state and Federal government
agencies, and local communities.
Sections 514 and 516 of the Housing Act of 1949 allows the RHS to
provide competitive loan financing and grants, respectively, for
affordable multifamily rental housing. Funds will be used to construct
new Off-FLH properties to serve domestic farm laborers, retired
domestic farm laborers, or disabled domestic farm laborers.
To focus investments in areas where the need for increased
prosperity is greatest, the RHS will set aside 10 percent of the
available funds for applications that will serve persistent poverty
counties. The term ``persistent poverty counties'' means any county
that has had 20 percent or more of its population living in poverty
over the past 30 years, as measured by the 1990 and 2000 decennial
censuses and 2007-2011 American Community Survey 5-year average, or any
territory or possession of the United States. Information on which
counties are considered persistent poverty counties can be found
through using the following link (Persistent Poverty Counties
(<a href="http://arcgis.com">arcgis.com</a>) provided by the USDA's RD Innovation Center. Set-aside
funds will be awarded in point score order, starting with the highest
score. Once the set-aside funds are exhausted, any further set-aside
applications will be evaluated and ranked with the other applications
submitted in response to this Notice. If the RHS does not receive
enough eligible applications to fully utilize the 10 percent set aside
in the service of these areas, the RHS will award any unused set aside
funds to other eligible applicants.
Overview
Federal Agency: Rural Housing Service.
Funding Opportunity Title: Notice of Solicitation of Applications
for Section 514 Off-Farm Labor Housing Loans and Section 516 Off-Farm
Labor Housing Grants for New Construction for Fiscal Year 2024.
Funding Opportunity Number: USDA-RD-HCFP-OFFFLH-NEW-2024.
Available Funds: Available loan and grant funding amounts for new
construction can be found at the following link: <a href="https://www.rd.usda.gov/programs-services/farm-labor-housing-direct-loans-grants">https://www.rd.usda.gov/programs-services/farm-labor-housing-direct-loans-grants</a>.
Maximum Award: All awards are subject to the availability of
funding. Total Award amounts for Section 514 loans and Section 516
grants under this notice for Off-FLH may not exceed the per unit, as
adjusted by number of bedrooms, Basic Statutory Mortgage Limits
published by the U.S. Department of Housing & Urban Development for the
221(d)(4) program for elevatored building as follows:
Section 221(d)(4)--Moderate Income Housing
------------------------------------------------------------------------
Per unit
Bedrooms limit
------------------------------------------------------------------------
0............................................................ $66,591
1............................................................ 76,340
2............................................................ 92,831
3............................................................ 120,090
4+........................................................... 131,826
------------------------------------------------------------------------
The maximum award per selected project may not exceed $5 million
(total loan and grant).
Announcement Type: Request for applications from qualified
applicants for Fiscal Year 2024.
Assistance Listing Number: 10.405.
Please Note: Expenses incurred in developing applications will be
at the applicant's sole risk.
A. Federal Award Description
1. A state will not receive more than 30 percent of the Off-FLH
funding (excluding awards made to Federally Recognized Tribes or
Tribally Designated Housing Entities) unless there are remaining
Section 514 and Section 516 funds after all eligible applications
nationwide have been funded. In this case, funds will be awarded to the
next highest-ranking eligible applications among all of the remaining
unfunded applications. The allocation of these funds may result in a
state or states exceeding the 30 percent limitation.
2. Section 516 Off-FLH grants must not exceed the limits set forth
in 7 CFR 3560.562(c). Total Development Cost (TDC) is defined in 7 CFR
3560.11. Section 514 Off-FLH loans may not exceed the limits set forth
in 7 CFR 3560.562(b).
3. All award commitments will be valid for a period of twelve
months. Applicants dependent upon third-party funding, including but
not limited to local, state, and federal resources through competitive
and noncompetitive application rounds, must obtain and submit to the
Agency a firm commitment letter for those funds, upon receipt, but no
later than the twelve-month time frame, as specified in the award
commitment. An extension of the award commitment of up to six months
may be given, at the sole discretion of the Agency, and will be based
on project viability, current program demand, and availability of
program funds. Applicants unable to satisfy this condition of the award
commitment will be subject to having the award rescinded and will be
required to reapply in future funding announcements.
4. A firm commitment letter is defined as a lender's unqualified
pledge to the borrower that they have passed their underwriting
guidelines, and they
[[Page 28719]]
are willing to offer the borrower a loan and/or grant under specified
terms. The letter validates that the borrower's financing has been
fully approved and that the lender is prepared to close the
transaction. Preliminary commitment letters, term sheets, or any other
letter from the lender that does not meet the definition above will not
be considered a firm commitment letter and will not meet the
requirements specified in this Notice.
5. Rental Assistance (RA) and Operating Assistance (OA) may be
available for projects funded under this Notice, subject to the
availability of funds. OA is described in 7 CFR 3560.574 and may be
used in lieu of tenant-specific RA in Off-FLH projects financed under
Section 514 or Section 516(i) of the Housing Act of 1949 (42 U.S.C.
1484 and 1486(i) respectively) that serve migrant farmworkers as
defined in 7 CFR 3560.11. Owners of eligible projects may choose
tenant-specific RA as described in Sec. 3560.573 or OA, or a
combination of both, however, any tenant or unit assisted under Sec.
3560.574 may not receive rental assistance under Sec. 3560.573. To
request RA and/or OA, applicants must submit form RD 3560-25, Initial
Request for Rental Assistance or Operating Assistance.
6. To maximize the use of the limited supply of FLH funds, the RHS
may contact eligible applicants selected for an award with proposals to
modify the transaction's proportions of loan and grant funds. Such
applicants will be contacted in point score order, starting with the
highest score. In addition, if funds remain after the highest scoring
eligible applications are selected for awards, the RHS may contact
those eligible applicants selected for the awards, in point score
order, starting with the highest score, to ascertain whether those
respondents will accept the remaining funds.
7. To enhance customer service and the transparency of this
program, RHS will publish a list of awardees and the loan and/or grant
amounts of their respective awards in accordance with the dates listed
in this Notice. This information can be found at: <a href="https://www.rd.usda.gov/programs-services/farm-labor-housing-direct-loans-grants">https://www.rd.usda.gov/programs-services/farm-labor-housing-direct-loans-grants</a>. RHS reserves the right to post all information submitted as
part of the pre-application and final application package that is not
protected under the Privacy Act on a public website with free and open
access to any member of the public.
B. Eligibility Information
1. Housing Eligibility
Housing that is constructed with FLH loans and/or grant funds must
meet RHS's design and construction standards contained in 7 CFR part
1924, subparts A and C. All projects must comply with current building
codes and standards. Better building performance efforts are rewarded
in the section Building Performance and Climate Resilience under
section (12) Addressing Climate Change and Environmental Justice. Once
constructed, Off-FLH must be managed in accordance with 7 CFR part
3560. In addition, Off-FLH must be operated on a non-profit basis and
tenancy must be open to all qualified domestic farm laborers,
regardless of which farm they work. Section 514(f)(3) of the Housing
Act of 1949, as amended (42 U.S.C.1484(f)(3)) defines domestic farm
laborers to include any person regardless of the person's source of
employment, who receives a substantial portion of his/her income from
the primary production, handling, or processing of agricultural or aqua
cultural commodities, and also includes the person's family.
2. Tenant Eligibility
Tenant eligibility is limited to persons who meet the definition of
a ``domestic farm laborer,'' a ``disabled domestic farm laborer,'' or a
``retired domestic farm laborer'' as defined in Section 514(f)(3) of
the Housing Act of 1949, as amended (42U.S.C. 1484(f)(3)).
Section 514(f)(3)(A) of the Housing Act of 1949 (42 U.S.C.
1484(f)(3)(A)) hasbeen amended to extend FLH tenant eligibility to
agricultural workers legally admitted to theUnited States and
authorized to work in agriculture.
Owners are responsible for verifying tenant income eligibility.
Only very-low or low-income households are eligible for the operating
assistance rents or RA. Households with incomes above the low-income
limits must pay the full rent.
In accordance with 7 CFR 3560.554, off-farm labor housing may be
used to serve migrant farmworkers, as defined in 7 CFR 3560.11.
Migrants or migrant agricultural laborer is a person (and the family of
such person) who receives a substantial portion of his or her income
from farm labor employment and who establishes a residence in a
location on a seasonal or temporary basis, in an attempt to receive
farm labor employment at one or more locations away from their home
base state, excluding day-haul agricultural workers whose travels are
limited to work areas within one day of their residence.
Seasonal housing is housing that is operated on a seasonal basis,
typically for migrants or migrant agricultural laborers as opposed to
year-round. Off- FLH loan and grant funds may be used to provide
facilities for seasonal or temporary residential use with appropriate
furnishings and equipment. A temporary residence is a dwelling which is
used for occupancy, usually for a short period of time, but is not the
legal residence for the occupant.
The design and construction requirements established in Sec.
3560.60 apply to all applications for Off-FLH loans and grants except
that seasonal Off-FLH that will be occupied for eight months or less
per year by migrant farmworkers while they are away from their
residence, may be constructed in accordance with Exhibit I of 7 CFR
part 1924, subpart A.
For Off-FLH operating on a seasonal basis, the management plan must
establish specific opening and closing dates.
Off-FLH is subject to the tenant contribution and rental unit rent
requirements for Plan II housing established under 7 CFR part 3560,
subpart E, except where seasonal housing will be occupied for less than
a three-month period. In such instances the best available and
practical income verification methods may be used with prior approval
of RHS.
For housing rented to farm laborers and owned by public bodies,
public or private nonprofit organizations, and limited partnerships,
when charging rent, households must meet the income requirements
outlined in 7 CFR 3560.576(b)(2)(i)(A).
3. Applicant Eligibility
(a) To be eligible to receive a Section 514 loan for Off-FLH, the
applicant must meet the requirements of 7 CFR 3560.555(a) and (1) be a
broad-based non-profit organization, a non-profit organization of
farmworkers, a Federally recognized Indian tribe, a community
organization, or an Agency or political subdivision of state or local
Government, and must meet the requirements of Sec. 3560.55, excluding
Sec. 3560.55(a)(6), or (2) be a limited partnership with a non-profit
general partner which meets the requirements of Sec. 3560.55(d). A
broad-based non- profit organization is a non-profit organization that
has a membership that reflects a variety of interests in the area where
the housing will be located.
(b) To be eligible to receive a Section 516 grant for Off-FLH, the
applicant must meet the requirements of 7 CFR
[[Page 28720]]
3560.555(b) and (1) be a broad-based non- profit organization, a non-
profit organization of farmworkers, a federally recognized Indian
tribe, a community organization, or an agency or political subdivision
of State or local Government, and must meet the requirements of Sec.
3560.55, excluding Sec. 3560.55(a)(6), and (2) be able to contribute
at least one-tenth of the total FLH development cost from its own or
other resources. A broad-based non- profit organization is a non-profit
organization that has a membership that reflects a variety of interests
in the area where the housing will be located . The applicant's
contribution must be available at the time of the grant closing. An
Off-FLH loan financed by RHS may be used to meet this requirement,
however, an RHS grant cannot be used to meet this requirement. Limited
partnerships with a non-profit general partner are eligible for Section
514 loans; however, they are not eligible for Section 516 grants.
(c) The applicant must be unable to provide the necessary housing
from their own resources and be unable to obtain credit from any other
source upon terms and conditions which the applicant could reasonably
be expected to fulfill.
(d) Broad-based non-profit organizations must have a membership
that reflects a variety of interests in the area where the housing will
be located.
4. Other Requirements
The following requirements apply to loans and grants made in
response to this Notice:
(a) 7 CFR part 1901, subpart E, regarding equal opportunity
requirements;
(b) For grants only, 2 CFR parts 200 and 400, which establishes the
uniform administrative and audit requirements for grants and
cooperative agreements to State and local Governments and to non-profit
organizations;
(c) 7 CFR part 1901, subpart F, regarding historical and
archaeological properties;
(d) 7 CFR 1970.11, Timing of the environmental review process.
Please note, the environmental information must be submitted by the
applicant to RHS. RHS must review and determine that the environmental
information is acceptable before the obligation of funds;
(e) 7 CFR part 3560, regarding the loan and grant authorities of
the Off-FLH program;
(f) 7 CFR part 1924, subpart A, regarding the planning and
performing of construction and other development;
(g) 7 CFR part 1924, subpart C, regarding the planning and
performing of site development work;
(h) For construction utilizing a Section 516 grant, the provisions
of the Davis-Bacon Act (40 U.S.C. chapter 31, subchapter IV) and
implementing regulations published at 29 CFR parts 1, 3, and 5;
(i) Applicants must be financially stable and provide proof of
credit worthiness.
(j) Borrowers and grantees must take reasonable steps to ensure
that tenants receive the language assistance necessary to afford them
meaningful access to USDA programs and activities, free of charge.
Failure to provide this assistance to tenants who can effectively
participate in or benefit from Federally assisted programs or
activities may violate the prohibition under Title VI of the Civil
Rights Act of 1964, 42 U.S.C. 2000d et seq.
(k) In accordance with 7 CFR 3560.60, the housing must be
economical to construct, operate, and maintain and must not be of
elaborate design or materials.
(l) The agency promotes the protection of outdoor workers from heat
illness. Applicants are encouraged to include amenities in the project
that help prevent heat illness or promote recovery from potential
impacts of exposure to heat illness.
(m) All program applicants, unless exempt under 2 CFR 25.110(b),
(c), or (d), are required to:
i. Be registered in System Award Management (SAM) before submitting
their applications;
ii. Provide a valid Unique Entity ID (UEI) in their applications;
and
iii. Continue to maintain an active SAM registration with current
information at all times during which they have an active Federal award
or an application or plan under consideration by a Federal awarding
agency.
The Federal awarding agency may not make a Federal award to an
applicant until the applicant has complied with all applicable SAM
requirements and, if an applicant has not fully complied with the
requirements by the time the Federal awarding agency is ready to make a
Federal award, the Federal awarding agency may determine that the
applicant is not qualified to receive a Federal award and use that
determination as a basis for making a Federal award to another
applicant. SAM is the Official U.S. Government system for collection of
forms for acceptance of a federal award through the registration or
annual recertification process. Applicants may register for SAM at
<a href="https://www.sam.gov">https://www.sam.gov</a> or by calling 1-866-606-8220. The applicant must
ensure that the information in the database is current, accurate, and
complete. On April 4, 2022, the unique entity identifier used across
the federal government changed from the DUNS Number to the UEI
(generated by <a href="http://SAM.gov">SAM.gov</a>). As required by the Office of Management and
Budget (OMB), all applications must provide a UEI number when applying
for Federal assistance. Instructions for obtaining the UEI are
available at <a href="https://sam.gov/content/entity-registration">https://sam.gov/content/entity-registration</a>. Applicants
must ensure they complete the Financial Assistance General
Certifications and Representations in SAM. Similarly, all recipients of
Federal financial assistance are required to report information about
first-tier subawards and executive compensation in accordance with 2
CFR part 170. So long as an entity applicant does not have an exception
under 2 CFR 170.110(b), the applicant must have the necessary processes
and systems in place to comply with the reporting requirements should
the applicant receive funding. See 2 CFR 170.200(b).
Additional information concerning these requirements can be
obtained on the <a href="http://Grants.gov">Grants.gov</a> website at <a href="http://www.grants.gov">http://www.grants.gov</a>. The
applicant must provide documentation that they are registered in SAM
and their UEI number or the application will not be considered for
funding. The following forms for acceptance of a federal award are now
collected through the registration or annual recertification in <a href="http://SAM.gov">SAM.gov</a>
in the Financial Assistance General Certifications and Representations
section:
<bullet> Form AD-1047, ``Certification Regarding Debarment,
Suspension, and Other Responsibility Matters-Primary Covered
Transactions.''
<bullet> Form AD-1048, ``Certification Regarding Debarment,
Suspension, Ineligibility and Voluntary Exclusion. Lower Tier Covered
Transactions.''
<bullet> Form AD-1049, ``Certification Regarding Drug-Free
Workplace Requirements (Grants).''
<bullet> Form AD-3031, ``Assurance Regarding Felony Conviction or
Tax Delinquent Status for Corporate Applicants.''
<bullet> Form AD-3030, ``Representations Regarding Felony
Conviction and Tax Delinquent Status for Corporate Applicants.''
C. Pre-Application and Submission Information
The application process will be in two phases: The initial pre-
application and the submission of a final application. Only those pre-
applications that are selected for further processing will be
[[Page 28721]]
invited to submit a final application. In the event that a pre-
application is selected for further processing and the applicant
declines, the next highest ranked pre-application will be selected for
further processing. All pre-applications for Section 514 and Section
516 funds must meet the requirements of this Notice. Incomplete pre-
applications will be rejected and returned to the applicant. No pre-
application will be accepted after the deadline unless the date and
time is extended by another Notice published in the Federal Register.
Applicants are encouraged to include a checklist or Table of
Contents of all the application requirements and to index and tab their
application to facilitate the review process. Applicants must submit a
separate one-page information sheet listing each of the pre-application
scoring criteria contained in this Notice, followed by a reference to
the page numbers of all relevant material and documentation that is
contained in the proposal that supports the criteria.
1. Pre-Application submission process. Pre-applications must be
submitted electronically. The process for submitting an electronic
application to RHS is as follows:
(a) At least three business days prior to the application deadline,
the applicant must email RHS a request to create a shared folder in
CloudVault. The email must be sent to the following address: <a href="/cdn-cgi/l/email-protection#f4bb9292d9b2b8bc958484989d9795809d9b9ab4c895d49c869192c9" http: usda.gov">usda.gov</a>">Off-FLHapplication@<a href="http://usda.gov">usda.gov</a></a>. The email must contain the following
information:
i. Subject line: ``Off-FLH New Construction Application
Submission.''
ii. Body of email: Borrower Name, Project Name, Borrower Contact
Information, Project State.
iii. Request language: ``Please create a shared CloudVault folder
so that we may submit our new construction application documents.''
(b) Once the email request to create a shared CloudVault folder has
been received, a shared folder will be created within two business
days. When the shared CloudVault folder is created by RHS, the system
will automatically send an email to the applicant's submission email
with a link to the shared folder. All required application documents in
accordance with this Notice must be loaded into the shared CloudVault
folder. When the submission deadline is reached, the applicant's access
to the shared CloudVault folder will be removed. Any document uploaded
to the shared CloudVault folder after the application deadline will not
be reviewed or considered.
(c) The applicant should upload a Table of Contents of all of the
documents that have been uploaded to the shared CloudVault folder.
Last-minute requests and submissions may not allow adequate time for
the submission process to take place prior to the deadline. Applicants
are reminded that all submissions must be received by the deadline and
the application will be rejected if it is not received by the deadline
date and time, regardless of when the application was submitted.
2. Pre-Application Requirements. The application must contain the
following:
(a) An executed and dated Executive Summary on the applicant's
letterhead that must include at least the following:
i. Brief description of the proposed project. Be sure to address if
the project will be used year-round or seasonally and to what
construction standards the housing will be built.
ii. Document the need for the project. The applicant must document
that the housing and related facilities will fulfill a pressing need in
the area in which the project will be located.
iii. Description of the proposed ownership structure with an
organizational chart.
iv. Narrative verifying the applicant's ability to meet the
eligibility requirements stated earlier in this Notice.
v. A statement of the applicant's experience in operating labor
housing or other rental housing. If the applicant's experience is
limited, additional information should be provided to indicate that the
applicant plans to compensate for this limited experience (e.g., by
obtaining assistance and advice of a management firm, non-profit group,
public agency, or other organization which is experienced in rental
management and will be available on a continuous basis).
vi. Description of the applicant's legal and financial capability
to carry out the obligation of the loan and/or grant.
vii. Proposed management. A brief statement explaining the
applicant's proposed method of operation and management (e.g., on-site
manager, contract for management services, or other method.). As stated
earlier in this Notice, the housing must be managed in accordance with
the program's management regulations, 7 CFR part 3560.
viii. Description and proof of established site control.
ix. Proposed Return to Owner (RTO), if applicable.
x. Any financial commitments, financial concessions, or other
economic benefits proposed to be provided by RHS.
xi. Third-party funding, if applicable. For each third-party
funding source or leveraged funds, discuss briefly the funding
provider, funding amount, including terms, commitment status, timing
issues such as any proposed closing dates, any restrictions that will
be applicable to the project, and whether any accommodation from RHS is
proposed, such as a lien position other than first. The desired lien
position of any third-party funding source must be clearly disclosed as
well as any proposal for RHS to accept a second lien position.
xii. Any proposed compensation to parties having an identity of
interest with either the seller, purchaser, consultant, or Technical
Assistance (TA) provider.
xiii. Any proposed construction financing, for example, a
construction or bridge loan or the use of multiple advances.
xiv. Type and method of construction such as negotiated bid or
contractor method.
xv. If a FLH grant is desired, a statement concerning the need for
a FLH grant. The statement must include estimates of the rents required
with a grant and rents required without a grant. Documentation to
demonstrate how the rent figures were computed must be provided.
Documentation must be in the form of a completed Form RD 3560-7
``Multiple Family Housing Project Budget/Utility Allowance'' completed
as if a grant was received and another form completed as if a grant
would not be received. RHS will review each budget to determine that
the income and expenses are reasonable and customary for the area.
xvi. If RA or OA is requested, a statement concerning the need for
the RA or OA and a statement concerning the specific number of units of
RA or OA that is needed. Strong and detailed justification must be
provided for requests of 100 percent RA or OA.
xvii. In accordance with Sec. 3560.63(f), all applicants must
agree in writing to provide funds at no cost to the housing and without
pledging the housing as security to pay cost overruns for completing
planned construction after the maximum debt limit is reached.
xviii. Estimated development timeline to include estimated start
and end date as well as any other important milestones such as a
required closing date.
xix. Description of any required site development such as building
roads, obtaining easements, installing utilities, verification that
there is proper site
[[Page 28722]]
access, and any state or local approvals such as zoning.
xx. Description of the required and intended applicant
contribution.
xxi. Any other pertinent information that the applicant feels
should be disclosed as part of this proposal.
(b) Provide the following forms and certifications:
i. Standard Form 424 ``Application for Federal Assistance'' which
can be obtained at: <a href="https://www.grants.gov/">https://www.grants.gov/</a>.
ii. Form RD 3560-30, ``Certification of no Identity of Interest
(IOI),'' if applicable, can be found at: <a href="http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-30.PDF">http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-30.PDF</a>.
iii. Form RD 3560-31, ``Identity of Interest Disclosure/
Qualification Certification'' if applicable, can be found at: <a href="http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-31.PDF">http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-31.PDF</a>.
An IOI is defined in 7 CFR 3560.11. RHS will review Form RD 3560-30
and Form RD 3560-31, as applicable, to determine if they are completed
in accordance with the Forms Manual Insert and to determine that all
IOI's have been disclosed. TA will not be funded by RHS when an IOI
exists between the TA provider and the loan or grant applicant.
iv. Form HUD 2530, ``Previous Participation Certification'' can be
found at: <a href="https://www.hud.gov/sites/dfiles/OCHCO/documents/2530.pdf">https://www.hud.gov/sites/dfiles/OCHCO/documents/2530.pdf</a>.
v. Form RD 400-4, ``Assurance Agreement'' can be found at: <a href="http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD400-4.PDF">http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD400-4.PDF</a>.
vi. RD Instruction 1940-Q, Exhibit A- 1, ``Certification for
contracts, grants and loans,'' can be found at: <a href="https://www.rd.usda.gov/files/1940q.pdf">https://www.rd.usda.gov/files/1940q.pdf</a>.
vii. Form RD 1910-11, ``Applicant Certification, Federal Collection
Policies for Consumer or Commercial Debts'' can be found at: <a href="https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1910-11.PDF">https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1910-11.PDF</a>.
viii. Form RD 400-1, ``Equal Opportunity Agreement,'' can be found
at: <a href="https://formsadmin.sc.egov.usda.gov/eFormsAdmin/browseFormsAction.do?pageAction=displayPDF&formIndex=2">https://formsadmin.sc.egov.usda.gov/eFormsAdmin/browseFormsAction.do?pageAction=displayPDF&formIndex=2</a>.
(c) Provide the following financial and organizational information:
i. Current (within six months of this Notice's pre-application
submission due date) financial statements for each entity within the
ownership structure with the following paragraph certified by the
applicant's designated and legally authorized signer:
``I/we certify the above is a true and accurate reflection of our
financial condition as of the date stated herein. This statement is
given for the purpose of inducing the United States of America to make
a loan or to enable the United States of America to make a
determination of continued eligibility of the applicant for a loan as
requested in the loan application of which this statement is a part.''
ii. Submit a current (within 6 months from the date of issuance)
comprehensive credit reports that contain details of both current open
credit accounts and closed accounts for both the entity and the actual
individual principals, partners, and members within the applicant
entity, including any sub-entities who are responsible for controlling
the ownership and operations of the entity. If any of the principals in
the applicant entity are not natural persons (including but not limited
to corporations, limited liability companies, trusts, partnerships, or
limited partnerships), separate comprehensive commercial credit reports
must be submitted on those organizations as well. Only credit reports
provided by one of the three accredited major credit bureaus (Experian,
Equifax, or TransUnion) will be accepted. The Agency will also accept
combination comprehensive credit reports which provide a comprehensive
view of the applicant's credit profile by combining data from all three
major credit bureaus (Experian, Equifax, and TransUnion). If the credit
report(s) is not submitted by the application deadline, the application
will be considered incomplete and will not be considered for funding.
iii. Letter from the IRS indicating the applicant's tax
identification number.
iv. Organizational applicants must provide to their attorney
acceptable evidence of U.S. citizenship and/or qualified alien status.
Acceptable evidence of U.S. citizenship may include a valid U.S. birth
certificate, a valid U.S. Passport, a valid U.S. Certificate of
Naturalization, or other acceptable evidence of U.S. citizenship
proposed by the applicant and determined by the Agency. Acceptable
evidence of qualified alien status may include valid documentation
issued by the U.S. Citizenship and Immigration Services (USCIS), or
other acceptable documentation of qualified alien status proposed by
the applicant and determined by the Agency.
Attorney Certification. The applicant's attorney must review all
applicable evidence to verify U.S. citizenship and/or qualified alien
status, must certify that the Agency's U.S. citizenship and/or
qualified alien status eligibility requirements are met by all
applicants, and must submit the certification for Agency review.
v. Documentation verifying the applicant is registered in SAM and
the applicant's UEI number (unless exempt under 2 CFR 25.110(b), (c),
or (d)).
vi. If the applicant is a limited partnership, a current and fully
executed limited partnership agreement and certificates of limited
partnership. If changes are proposed to be made to the limited
partnership agreement prior to loan/grant closing, the applicant must
provide the proposed limited partnership agreement and certificates of
limited partners for any proposed new limited partners. (Agency
requirements should be contained in one section of the agreement and
their location identified by the applicant or their attorney in a cover
sheet.)
vii. If the applicant is a non-profit organization:
a. Tax-exempt ruling from the IRS designating the applicant as a
501(c)(3) or 501(c)(4) organization. If the designation is pending, a
copy of the designation request must be submitted.
b. Purpose statement, including the provision of low-income
housing.
c. Evidence of organization under Tribal, state and/or local law,
or copies of pending applications and a copy of the applicant's
charter, Articles of Incorporation, and by-laws.
d. List of Board of Directors including their names, occupations,
phone numbers, and addresses.
e. If the applicant is a member or subsidiary of another
organization, the organization's name, address, and nature of business.
viii. Certificate of Good Standing.
ix. Attorney Certification. Letter from the applicant's attorney
certifying the legal sufficiency of the organizational documents. The
attorney must certify:
a. The applicant's legal capacity to successfully operate the
proposed project for the life of the loan and/or grant.
b. That the organizational documents comply with RHS regulations.
c. For partnership purchasers, that the term of the partnership
extends at least through the latest maturity of all proposed RHS debt.
d. That the organizational documents require prior written RHS
approval for any of the following: withdrawal of a general partner of a
partnership or limited partnership applicant, withdrawal of any member
of a limited liability company applicant, admission of a new general
partner to a partnership or limited partnership applicant, admission of
any new member to a limited liability company applicant, amending the
applicant's organizational
[[Page 28723]]
documents, and selling all or substantially all of the assets of the
applicant.
(d) Provide the following information about the Project:
i. Market feasibility documentation to identify the supply and
demand for Off-FLH in the market area. A market study must be
submitted. The market area must be clearly identified and may include
only the area from which tenants can reasonably be drawn for the
proposed project. Documentation must be provided to justify a need
within the intended market area for the housing of domestic farm
laborers, taking into consideration the pool of applicants that meet
the occupancy requirements of the Off-FLH program under 7 CFR 3560.576.
The documentation must also consider disabled and retired farm workers
and adjusted median incomes of very-low, low, and moderate. The market
study must include the following:
a. A complete description of the proposed site and a map showing
the site, location of services, and their distances from the site.
b. Names and qualifications of members of the community interviewed
during the site visit and a discussion of their comments.
c. Major employers in the area and year established.
d. Employment opportunities and rates for the area for the past 5
years.
e. Services available in the area, including shopping, schools, and
medical facilities as well as community services such as recreational,
transportation, and day care that are available.
f. Population by year plus the annual increase or decrease for the
past 5 years.
g. Population characteristics by age.
h. Number of households by year and number of persons per household
for the past 5 years.
i. Historical breakdown of households by owners and renters.
j. Households by income groups.
k. A survey of existing or proposed rental housing, including
complex name, location, number of units, bedroom mix, family or elderly
type, year built, rent charges, vacancies, waiting lists, amenities,
and the availability of RA or other subsidies.
l. Available mobile homes, if part of housing stock.
m. The existing vacancy rate of all available rental units in the
community, including houses.
n. Proportionate need for project type.
o. Building permits issued per year for the last 3 years for single
and multiple unit dwellings.
p. For proposals where the applicant is requesting LIHTCs, the
number of LIHTC units and the maximum LIHTC incomes and rents by unit
size. This information will determine the levels of incomes in the
market area, which will support the basic rents while also qualifying
the applicant for tax credits.
q. The amount of RA and/or OA necessary to ensure the project's
success.
r. Major employment data including the name, location, and date of
establishment of any major employers within the community; the product
or service of each employer; the number of employees; and salary range
for each employer; and business permits issued.
s. Housing stock as defined by total number of units: one-unit
buildings, two- or more unit buildings, mobile homes, and the number of
these lacking some or all plumbing facilities (substandard housing).
t. Number of rent-overburdened households.
u. An expanded analysis of existing vacancy rates for all available
rental units in the community, including mobile homes. The analysis
must make a distinction between ``owned properties,'' ``available for
rent,'' and ``for sale--not available for rent,'' as well as available
apartments and other rental units.
v. Population characteristics by age.
w. A projection of housing demand based on:
<bullet> Household growth;
<bullet> Units constructed since the last U.S. Census;
<bullet> Number of owned and rented units;
<bullet> Number of replacements; and
<bullet> Number of households in the eligible-income range.
x. The annual income level of farmworker families in the area and
the probable income of the farm workers who will likely occupy the
proposed housing;
y. A realistic estimate of the number of farm workers who remain in
the area where they harvest and the number of farm workers who normally
migrate into the area. Information on migratory workers should indicate
the average number of months the migrants reside in the area and an
indication of what type of households are represented by the migrants
(i.e., single individuals as opposed to families);
z. General information concerning the type of labor-intensive crops
grown in the area and prospects for continued demand for farm laborers;
aa. The overall occupancy rate for comparable rental units in the
area, the rents charged, and customary rental practices for these
comparable units (e.g., will they rent to large families, do they
require annual leases, etc.);
bb. The number, condition, adequacy, rental rates and ownership of
units currently used by or available to farm workers;
cc. Information on any proposed new construction of housing units
within the market area. The building permit information and pending tax
credit applications must be checked for the primary market area;
dd. Documentation verifying that interviews were conducted with
farms and other agricultural businesses within the primary market area
to inquire if they are in need of additional housing for their
employees or if they plan to expand and hire additional employees that
will need housing; and
ee. A description of the proposed units, including the number,
type, size, rental rates, amenities such as carpets and drapes, related
facilities such as a laundry room or a community room, and other
facilities providing supportive services in connection with the housing
and the needs of the prospective tenants such as a health clinic or day
care facility.
ff. All market studies must provide a summary of the sample of farm
workers used to document the need for off-farm labor housing. This
summary should quantify eligible tenants according to 7 CFR part 3560
subpart L section 3560.577 within the farm worker demographics sample
and provide the reference/source of the information.
gg. The market study must also include the following required
elements of the market feasibility documentation (MFD):
<bullet> Services available in the area include shopping, schools,
and medical facilities as well as community services such as
recreational, transportation, and day care. Services appear to be
appropriate for the project type and within reasonable proximity of the
site.
<bullet> Building permits issued during the past 3 years and new
employment opportunities show the community to be growing, rather than
declining.
<bullet> Major employers in the area provide employment
opportunities sufficient to support a population base of renters for
the proposed project.
<bullet> Employment rates for the area have been high over the past
5 years.
hh. The analyst makes realistic recommendations supported by the
statistical information provided:
<bullet> Population characteristics and household data for the
community are stable or show an increase during the past 5 years.
<bullet> Population characteristics by age shows support for the
type of project being proposed, and the type of complex proposed
reflects the greater
[[Page 28724]]
proportionate need and demand of the community. To establish this,
compare the share or percentage of the community's total rental units
that are designated for the elderly (62 years or older or disabled) to
the community's share of elderly households, and the share of total
rental units for families to the share of family households in the
community. For mixed projects, the unit mix must reflect the
proportionate need of each household type.
<bullet> Statistical data showing households by income group shows
that there are households in the eligible income group that could rent
in the project.
<bullet> Historical breakdown of households by owners and renters
shows that there is a tradition of renters.
<bullet> The MFD addresses the need for more than just one and two
bedroom units.
<bullet> The bedroom mix of the proposed units is proportional to
the need in the market area based on renter household size and the
bedroom mix of existing units.
<bullet> The bedroom mix of fully accessible units (5 percent) is
comparable to the bedroom mix of non-accessible units.
<bullet> The MFD shows evidence of need for the housing in that
there are rent overburdened households and/or households in substandard
housing.
<bullet> A discussion of existing housing supply includes reference
to the single-family housing rental and sale units available and shows
these to be inadequate.
<bullet> Temporary residents of a community, including college
students, military personnel, or others not claiming their current
residence as their legal domicile, have not been included in
determining need and project size.
<bullet> The MFD includes a discussion on the current market for
single-family houses and how sales, or the lack of sales, will affect
the demand for elderly rental units. If the market study discusses how
elderly homeowners reinforce the need for rental housing, it does so
only as a secondary market and not as the primary market.
<bullet> The vacancy rates in existing rental housing, including
available single-family housing and mobile homes, is 5 percent (or the
State-approved vacancy standard, if different) or less, or there is an
acceptable explanation where higher rates occur. Existing rental
complexes should also show waiting lists.
<bullet> The CRCU shown is less than or equal to the rents proposed
for the project.
<bullet> For proposals where the applicant is requesting LIHTCs,
the number of LIHTC units and the maximum LIHTC incomes and rents by
unit size are provided. Statistical data provided show that there are
households in the tax credit-eligible income group to rent in the
project. If not, rental assistance is requested.
<bullet> The MFD makes clear the amount of RA that is necessary to
ensure the project's success.
ii. The analyst that completes the market study must provide the
following certifications:
<bullet> The information presented is accurate to the best of the
preparer's knowledge.
<bullet> Reliable sources were used to collect the information and
data presented (for a study, the analyst has included a statement of
qualifications).
<bullet> A site visit was made by the preparer or their
representative.
<bullet> The analyst will not receive any fees that are contingent
upon approval of the project by the Agency.
<bullet> The analyst will have no interest in the project.
jj. The market study must also include the following methodologies:
<bullet> A brief statement of the methodology used in the study has
been included.
<bullet> All mathematical calculations are expressed in actual
numbers, including percentages.
<bullet> Source references are identified for each table or section
of the market study.
It is recommended that the provider include a copy of Attachment 4-
F, located in HB-1-3560, Chapter 4 (<a href="https://www.rd.usda.gov/sites/default/files/3560-1chapter04.pdf">https://www.rd.usda.gov/sites/default/files/3560-1chapter04.pdf</a>), within the report and provide the
page number of the report where it contains the information that
satisfies each element of Attachment 4-F. The market study must be
obtained from, and performed by, an independent third-party provider
that has no identity of interest with the property owner, management
agent, applicant or any other principal or affiliate. The market study
must also include the following:
ii. If the applicant is seeking points for land donation, a
narrative to explain how the land donation meets all of the
requirements set forth in Section E(5) of this Notice.
iii. Evidence of site control, such as an executed option contract
or sales contract. The option contract or sales contract must not be
expired.
iv. A map and description of the proposed site, including the
availability of water, sewer, and utilities and the proximity to
community facilities and services such as shopping, schools,
transportation, doctors, dentists, and hospitals. Off-FLH projects must
comply with the site requirements in 7 CFR 3560.58 with the exception
of the requirement that the property be located in a designated place.
v. A supportive services plan which describes services that will be
provided on-site or made available to tenants through cooperative
agreements with service providers in the community, such as a health
clinic or day care facility. Off-site services must be accessible and
affordable to farm workers and their families. A map showing the
location of supportive services must be included. Letters of commitment
from service providers to deliver services to tenants must be included.
The plan must describe how the services will be funded. RA may not fund
supportive services.
(e) Provide the following construction related documents:
i. Preliminary plans and specifications, including a plot plan,
site plan with contour lines, floor plan for each living unit type and
other spaces, such as laundry facilities, community rooms, stairwells,
etc., building exterior elevations, typical building exterior wall
section, building layouts, and type of construction and materials. The
housing must meet RHS's design and construction standards contained in
7 CFR part 1924, subparts A and C, including meeting all current
applicable building codes, and must also meet all applicable federal,
state, and local accessibility standards and be in compliance with all
building codes. Applications for Off-FLH loans and grants must also
meet the design requirements in 7 CFR 3560.559.
ii. A description of the proposed interior/exterior washing
facilities, if applicable. Applicants should consider incorporating
interior/exterior washing facilities for tenants, as necessary to
protect the housing and the tenants from excess dirt and chemical
exposure. Such facilities might include a boot washing station or hose
bibs, among others.
iii. Description and justification of related facilities as defined
in 7 CFR 3560.11, and a schedule of separate charges for the related
facilities.
iv. A checklist, certification, and signed affidavit by the project
architect or engineer, as applicable, for any energy programs the
applicant intends to participate in.
(f) Provide the following project financing information:
i. A Sources and Uses Statement which shows all sources of funding
included in the proposed transaction. The terms and schedules of all
sources included in the project should be included in the Sources and
Uses Statement. (Note: A Section 516 grant
[[Page 28725]]
may not exceed 90 percent of the TDC of the transaction)
ii. All applications that propose the use of any grant, non-
amortizing leveraged funds, or similar funding source should submit
commitment letters with their application, if available. If the
applicant is unable to secure third-party firm commitment letters
within 180 calendar days from the issuance of the award letter under
this NOSA, the application will be deemed incomplete, the award letter
will be considered null and void, and the applicant will be notified in
writing that the application will be rejected.
iii. Description of how the applicant will meet the applicable
equity contribution requirement.
(g) Provide the following environmental information:
i. Environmental information in accordance with the requirements in
7 CFR part 1970. The applicant is responsible for preparing and
submitting the environmental review document in accordance with the
format and standards provided by RHS in 7 CFR part 1970. Applicants may
employ a design or environmental professional or technical service
provider to assist them in the preparation of their environmental
review documents at their own expense.
ii. Evidence of the submission of the project description to the
applicable State Housing Preservation Office (SHPO), and/or Tribal
Historic Preservation Officer (THPO) with the request for comments. A
letter from the SHPO and/or THPO where the Off-FLH project is located
stating they have reviewed the site and made a determination, signed by
their designee, is required to demonstrate compliance.
iii. Intergovernmental review. Evidence of compliance with
Executive Order 12372. The applicant must initiate the
intergovernmental review by submitting the required information to the
applicable State Clearinghouse. The applicant must provide
documentation that the intergovernmental review process was completed.
The applicant must also submit any comments that were received as part
of this review to the agency. If no comments are received, the
applicant must provide documentation that the review was properly
initiated and that the required comment period has expired.
Applications from Federally recognized Indian tribes are not subject to
this requirement.
iv. FEMA Form 81-93, Standard Flood Hazard Determination.
v. Comments regarding relevant offsite environmental conditions,
which could include but are not limited to, information on surrounding
businesses or land uses such as abandoned buildings or facilities,
landfills, and waste or water management facilities, etc. that may
present an adverse impact to the proposed development.
(h) Provide the following budget and management information:
i. A proposed post-construction operating budget utilizing Form RD
3560-7, ``Multiple Family Housing Project Budget/Utility Allowance''
can be found at: <a href="http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-7.PDF">http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-7.PDF</a>.
RHS will review the budget to determine that the income and
expenses are reasonable and customary for the area. RHS will also
verify that the budget reflects the correct and estimated RHS debt
service, number of units, unit mix, and proposed rents. Overall, RHS
will review the budget for feasibility, accuracy, and reasonableness.
ii. An estimate of development costs utilizing Form RD 1924-13
``Estimate and Certificate of Actual Cost'' can be found at: <a href="http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1924-13.PDF">http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1924-13.PDF</a>.
iii. If requesting RA or OA, Form RD 3560-25, ``Initial Request for
Rental Assistance or Operating Assistance'' can be found at: <a href="http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-25.PDF">http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-25.PDF</a>.
If any of the required items listed above are not submitted within
the pre-application in accordance with this Notice or are incomplete,
the pre-application will be considered incomplete and will not be
considered for funding.
RHS will not consider information from an applicant after the pre-
application deadline. RHS may contact the applicant to clarify items in
the application. RHS will uniformly notify applicants of each curable
deficiency. A curable deficiency is an error or oversight that if
corrected it would not alter, in a positive or negative fashion, the
review and rating of the application. An example of a curable
(correctable) deficiency would be inconsistencies in the amount of the
funding request.
D. Preliminary Eligibility Assessment
RHS shall make a preliminary eligibility assessment using the
following criteria:
1. The pre-application was received by the applicable submission
deadlines specified in the Notice;
2. The pre-application is complete as specified by the Notice;
3. The applicant is an eligible entity and is not currently
debarred, suspended, or delinquent on any Federal debt; and
4. The proposal is for authorized purposes.
E. Pre-Application Review and Scoring Information
RHS will accept, review, score, and rank pre-applications in
accordance with this Notice. The maximum score that can be obtained is
106 points. Section 514 Off- FLH loan funds and Section 516 Off- FLH
grant funds will be distributed to states based on a national
competition, based on the following scoring criteria:
(1) Development Team Experience (up to 15 points). Applicants
should demonstrate their team's (owner, including the General Partner
of a partnership applicant, Developer and Management Company) recent
experience in successfully completing the development of FLH and/or MFH
projects in a timely manner. RHS will consider the applicant's
experience with utilizing federal financing programs, including timely
project completion and ensuring that Section 514/516 projects are
occupied by eligible farmworker tenants. A firm resume must be provided
for all sponsors/co-sponsors, including the management agent in order
to receive points. The description or firm resumes must include any
rental housing projects that the applicant team sponsored, owns, or
operates. To score the highest number of points for this factor,
applicants must describe significant previous experience in providing
housing to generally and significant previous experience implementing
affordable housing development activities. Points will be awarded as
follows:
Low level of development experience (5 points)
Medium level of development experience (10 points)
High level of development experience (15 points)
(2) Market Conditions/Need for Farm Labor Housing (up to 15
points). The applicant must provide the required market study as
described above in Section C, Pre-application and Submission
Information, number 11. In particular, the applicant must ensure that
the market study assesses the supply of eligible farmworkers that meet
the tenancy requirements for the Section 514/516 program. Points will
be awarded as follows:
a. Need (up to 10 points). Points will be awarded based on the
absorption ratio. The absorption ratio is computed by dividing the
number of units in the proposed project by the number of
[[Page 28726]]
income eligible and farm labor eligible households within the primary
market area.
Evidence of Strong Need (10 points). An absorption ratio of 15
percent or less.
Evidence of Need (5 points). An absorption ratio greater than 15
percent and less than 30 percent.
b. Diminished Needs Waivers in Primary Market Area. If the market
study indicates that the primary market area for the property includes
an existing Section 514/516 property, the Agency will determine if the
existing property has been approved by the Agency for a Diminished
Needs Waiver (DNW) due to a lack of qualified farmworker tenants. If a
DNW is in place, the Agency will reduce the scoring by two (2) points
in (a) to reflect a reduced need for the property.
c. Location and Access to Services (up to 5 points). Applicants
must demonstrate that the location of the site supports FLH. The
applicant must identify the location, the proximity, and ease of access
of the project site to amenities important to the residents that
supplement the services provided on- site. Applicants must describe how
residents could reasonably access critical amenities. Amenities will
generally be considered readily available if they are within one-half
mile walking distance or they can be accessed by public transportation
within one-quarter walking mile, and/or affordable private door-to-door
shuttle/van service that is reliable and accessible. Applicants may
commit to providing such transportation services if the nature of the
commitment and the financing of the commitment is adequately described.
Project funds cannot be used for this purpose. To score the maximum
number of points on this factor, applicants must make a compelling
argument that the location of the proposed project is well suited with
respect to proximate amenities to meet the needs of farm workers.
Documentation must be provided that clearly outlines the project site
and its proximity to the applicable amenities. The site location will
be rated on access to the following:
Health care and social services (1 point) (e.g. hospital, medical
clinic, social service organization that offers services to farm
workers);
Grocery stores (1 point) (e.g., supermarket or other store that
sells produce and meat);
Recreational facilities (1 point) (e.g., parks and green space,
community center, gym, health club, family entertainment venue,
library);
Schools and civic facilities (1 point) (e.g., place of worship,
schools, police or fire station, post office);
Other neighborhood-serving amenities (1 point) (e.g., apparel
store, convenience store, pharmacy, bank, hair care, and restaurants).
(3) Ownership and Management Capacity (up to 15 points). Applicants
should demonstrate that they have the experience and organizational
resources to successfully own, operate and manage FLH on a long-term
basis. In the case of co-sponsored applications, the rating will be
based upon the combination of the experience of all co-sponsors in the
area under review. In order to receive points, a firm resume must be
provided for the applicant and all Sponsors/Co-Sponsors, including the
management agent. Each resume must include FLH and MFH ownership and
management experience, as applicable. In addition, the resume should
include a description of all similar projects that the applicant and
Sponsors/Co-Sponsors have been involved with, to include whether they
were Federal housing projects, and information regarding the success of
the projects. Points will be awarded as follows:
Low level of management experience (5 points)
Medium level of management experience (10 points)
High level of management experience (15 points)
(4) Leveraging Other Funds (up to 10 points). Points will be allocated
for applications that leverage other funds based on the ratio of
leveraged funds to total development cost (TDC). Leveraged funds are
defined as non-Section 514/516 funds, including third-party funds from
equity, grants, loans and deferred developer fees. To receive points,
the proposal must serve tenants meeting Agency income limits at basic
rents comparable to what the rent would be if the Agency provided full
financing. These comparable rents will be determined by the Agency.
Points are calculated as follows:
Leveraged funds/TDC is greater than 80%: 10 points
Leveraged funds/TDC is 60% to 79%: 8 points
Leveraged funds/TDC is 40% to 59%: 6 points
Leveraged funds/TDC is 20% to 39%: 4 points
Leveraged funds/TDC is 5% to 19%: 2 points
(5) Land Donation (5 points). Points are provided if the proposal
uses a donated site which meets the following conditions: (A) The site
is donated by a state, unit of local government, public body or a
nonprofit organization; (B) The site is suitable for the housing
proposal and meets Agency requirements in accordance with Sec. 3560.56
(c) (1) (iv); (C) Site development costs do not exceed what they would
be to purchase and develop an alternative site; (D) The overall cost of
the FLH is reduced by the donation of the site; and (E) A return on
investment is not paid to the borrower for the value of the donated
site nor is the value of the site considered as part of the borrower's
contribution. If the applicant is seeking points for land donation,
provide a narrative to explain how the land donation meets all of the
requirements.
(6) Operational cost savings (up to 5 points). The presence of
outside funding sources that contribute to operational cost savings,
such as tax abatements, non-RHS tenant subsidies or donated services,
are calculated on a per-unit cost savings for the sum of the savings.
Savings must be available for at least 15 years and documentation must
be provided within the pre-application demonstrating the availability
of savings for 15 years. To calculate the savings, take the total
amount of savings and divide it by the number of units in the project
that will benefit from the savings to obtain the per-unit cost savings.
For example, a 10- unit property receiving $30,000 per year non-RHS
subsidy yields a cost savings of $450,000 ($30,000 x 15 years);
resulting in a $3,000 per-unit per-year cost savings ($450,000/10
units/15 years). Documentation must be provided within the pre-
application that verifies the presence of operational cost savings.
Points will be awarded relative to the amount of operating cost savings
obtained by other NOSA applicants:
Per-unit operating costs saving amount is among the top 50% of
applicants: (5 points)
Per unit operating cost savings are demonstrated, but are not among the
top 50% of applicants: (3 points)
No per-unit operating cost savings are demonstrated: (0 points)
(7) Targeted Locations (5 points). Points will be awarded to
proposals that provide rental units in a colonia, on Tribal land, Rural
Economic Area Partnership (REAP) community, Enterprise Zone or
Empowerment Community (EZ/EC) or in a place identified in the state
Consolidated Plan or a state needs assessment as a high need community
for MFH. Documentation must be provided within the pre-application that
verifies
[[Page 28727]]
the property is located in one of the targeted locations.
(8) Tenant Support Services (up to 5 points). Points will be
allocated for the presence of tenant supportive services. One point
will be awarded for each tenant service included in the tenant
supportive services plan up to a maximum of 5 points. In order to
receive points, the tenant support services plan must describe the
proposed supportive services, including a description of the public or
private funds that are expected to fund the proposed services as well
as the way the services will be delivered, who will administer them,
and where they will be administered. All tenant service plans must
include letters of intent that clearly state the service that will be
provided at the project for the benefit of the residents from any party
administering each service, including the applicant. These services may
include, but are not limited to, transportation-related services, on-
site English as a Second Language classes, move-in funds, emergency
assistance funds, homeownership counseling, food pantries, after school
tutoring, and computer learning centers. The proposed supportive
services plan must describe how the services will meet the identified
needs of the tenants and how the services will be provided on a
consistent, long-term basis to support the tenants. The plan must
clearly state how the services will be funded. RA, OA and project funds
may not be used to pay for these services.
(9) Rural Communities (5 points). Although a rural area location is
not required for the Section 514/516 program, points will be awarded to
properties located in MFH eligible rural areas. Applicants must include
a copy of the map demonstrating the project is located in an eligible
rural area. MFH eligible areas are found on the following website:
Eligibility (<a href="http://usda.gov">usda.gov</a>)
(10) Creating More and Better Markets (5 points). Assisting Rural
communities to recover economically through more and better market
opportunities and through improved infrastructure. Priority points will
be awarded if the project is located in or serving a rural community
whose economic well-being ranks in the most distressed tier of the
Distressed Communities Index. The Distressed Communities Index provides
a score between 1-100 for every community at the zip code level. The
most distressed tier of the index are those communities with a score
over 80. Please use the Distressed Communities Index Look-Up Map to
determine if your project qualifies for priority points. Provide a copy
of the map showing the project is eligible to claim points. Note: US
Territories are considered distressed and qualify for priority points.
For additional information on data sources used for this priority
determination, please download the Data Sources for Rural Development
Priorities document. Additional information for priority points can be
found on the following website: <a href="https://www.rd.usda.gov/priority-points">https://www.rd.usda.gov/priority-points</a>.
(11) Advancing Racial Justice, Place-Based Equity, and Opportunity
(5 points). Ensuring all rural residents have equitable access to RD
programs and benefits from RD funded projects. Priority points will be
awarded if the project is located in or serving a community with score
0.75 or above on the CDC Social Vulnerability Index. Please use Social
Vulnerability Index Map to look up map or list to determine if your
project qualifies for priority points. Provide a copy of the map
showing the project is eligible to claim points. Applications from
Federally Recognized Tribes, including Tribal instrumentalities and
entities that are wholly owned by Tribes, will receive priority points.
Federally Recognized Tribes are classified as any Indian or Alaska
Native tribe, band, nation, pueblo, village, or community as defined by
the Federally Recognized Indian Tribe List Act (List Act) of 1994 (Pub.
L. 103-454). Please refer to the Bureau of Indian Affairs for a listing
of Federally Recognized Tribes. Additionally, projects where at least
50% of the project beneficiaries are members of Federally Recognized
Tribes, will receive priority points if applications from non-Tribal
applicants include a Tribal Resolution of Consent from the Tribe or
Tribes that the applicant is proposing to serve. Note: US Territories
are considered socially vulnerable and qualify for priority points. For
additional information on data sources used for this priority
determination, please download the Data Sources for Rural Development
Priorities document. Additional information for priority points can be
found on the following website: <a href="https://www.rd.usda.gov/priority-points">https://www.rd.usda.gov/priority-points</a>.
(12) Addressing Climate Change and Environmental Justice (up to 5
points). Increasing resilience to the impacts of climate change through
economic support to rural communities. Applicants can receive priority
points through the options listed below.
Option 1 (5 points). Priority points will be awarded if the project
is in or serves a Disadvantaged Community as defined by the Climate and
Economic Justice Screening Tool (CEJST), from the White House Council
on Environmental Quality (CEQ). CEJST is a tool to help Federal
agencies identify disadvantaged communities that will benefit from
programs included in the Justice40 initiative. Census tracts are
considered disadvantaged if they meet the thresholds for at least one
of the CEJST's eight (8) categories of burden: Climate, Energy, Health,
Housing, Legacy Pollution, Transportation, Water and Wastewater, or
Workforce Development.
OR;
Option 2 (5 points). Priority points will be awarded if the project
is in or serves an Energy Community as defined by the Inflation
Reduction Act (IRA). The IRA defines energy communities as:
A ``brownfield site'' (as defined in certain subparagraphs of the
Comprehensive Environmental Response, Compensation, and Liability Act
of 1980 (CERCLA))
A ``metropolitan statistical area'' or ``non-metropolitan
statistical area'' that has (or had at any time after 2009) 0.17% or
greater direct employment or 25% or greater local tax revenues related
to the extraction, processing, transport, or storage of coal, oil, or
natural gas; and has an unemployment rate at or above the national
average unemployment rate for the previous year
A census tract (or directly adjoining census tract) in which a coal
mine has closed after 1999; or in which a coal-fired electric
generating unit has been retired after 2009.
To determine if your project qualifies for priority points under
Option 1 or Option 2, please use the Disadvantaged Community & Energy
Community Look-Up Map on the following website: <a href="https://www.rd.usda.gov/priority-points">https://www.rd.usda.gov/priority-points</a>. Provide a copy of the map showing the
project is eligible to claim points.
(13) Building Performance and Climate Resilience (11 points
maximum).
A. Disaster Resilient Construction Practices and Standards (Up to 3
points). Constructing buildings to be of good quality at the outset
will ensure the long-term durability, health, safety, operational
efficiency, and asset quality into the future. Addressing location
specific hazards may also offer applicants an opportunity to lower
insurance premiums.
The FEMA National Risk Index (NRI) <a href="https://hazards.fema.gov/nri/map">https://hazards.fema.gov/nri/map</a>. identifies the following hazards, which may occur simultaneously:
Avalanche, coastal flooding, cold wave, drought, earthquake, hail, heat
wave, hurricane, ice storm, landslide, lightening, riverine flooding,
strong wind, tornado, tsunami, volcanic activity, wildfire, winter
[[Page 28728]]
weather. The FEMA mapping tool allows a report to be generated for the
County level and the Census track level. The applicant should use the
tool to create a report based on the address of the proposed project at
the Census track level. This report should be included in the
application in order to obtain points in this category.
USDA RD was involved in the authorship of the collaborative
creation of guides to builders on resilient construction techniques
germane to Natural Hazards. Five volumes include: wind, water, fire,
earth, and auxiliary hazards. <a href="https://www.huduser.gov/portal/publications/Designing-for-Natural-Hazards-Series.html">https://www.huduser.gov/portal/publications/Designing-for-Natural-Hazards-Series.html</a>.
(i) Disaster Resilient Construction (1 point). Applicants seeking
to earn 1 point for Disaster Resilient construction must submit a
signed commitment from the applicant that the project will be designed
and constructed using the most current suite of codes published by the
International Code Council, including the International Building Code
2021 without weakening amendments, or a more stringent code, and shall
articulate the specific measures that will be carefully taken to
mitigate the impact of pertinent natural hazards impacting the project
location. In order to obtain points, the applicant must also provide a
certification from a licensed professional architect or engineer that
the building plans meet these standards and that the final building
plans, if not yet available, will meet these standards.
(ii) Addressing Specific Hazards (2 points) In addition to best
practices illustrated in the Natural Hazard guides, there are some
industry standards that address specific hazards. To obtain points in
this category, applicants must commit to additional compliance beyond
the building code, with the industry standard resilience programs such
as those listed below, and must illustrate this through commitments
signed by the applicant and key leaders of the project development
team, including the lead developer, architects, engineers, and special
consultants if applicable. Applicants can obtain points by illustrating
the specific hazard(s) germane to the location of the project and
committing to participate in an industry standard program designed to
address the identified risk(s). The applicant must also submit a
certification from a licensed professional architect or engineer that
the building plans comply with the standards of the identified
resilience program and that the final building plans, if not yet
available, will comply with such standards.
<bullet> Strong Wind, Hurricane, Tornado, Hail: Institute for
Business and Home Safety (IBHS) FORTIFIED programs that address high-
wind, hail, hurricane and up to CAT 3 tornado risk. <a href="https://fortifiedhome.org/fortified-multifamily/">https://fortifiedhome.org/fortified-multifamily/</a>
<bullet> Wildfire: 2021 Wildland Urban Interface (WUI) Code <a href="https://planningforhazards.com/wildland-urban-interface-code-wui-code">https://planningforhazards.com/wildland-urban-interface-code-wui-code</a>.
NFPA Firewise USA <a href="https://www.nfpa.org/education-and-research/wildfire/firewise-usa">https://www.nfpa.org/education-and-research/wildfire/firewise-usa</a>.
<bullet> Riverine, Coastal, or Pluvial Flooding--Federal Flood Risk
Management Standard (FFRMS) (required as of January 1, 2024)
<bullet> Wholistic Multihazard--RELi is a holistic third-party
rating system that can be used for both individual buildings and
communities, addressing multi-hazards and deeper community resilience.
<a href="https://c3livingdesign.org/reli/">https://c3livingdesign.org/reli/</a>.
B. Green Building Standards: (3-6 points). The complex processes of
design and construction of buildings have interwoven choices that have
potential to protect the health, safety, and welfare of not only its
occupants but also every part of the supply chain and lives of human
beings within that ecosystem. Development has the potential to improve
lives, create communities, elevate economies, and heal ecosystems if
done well. Achieving certification from one or more of the green
building standard programs listed below will yield a maximum of 3
points for achievement of an above-code, green building standard, with
an additional 3 points possible for full zero energy achievements, for
a total of 6 points maximum.
(i) Green Building Program Participation (3 points)
<bullet> EPA's Energy Star Multifamily Certification or Energy Star
Next Gen <a href="https://www.energystar.gov/partner_resources/residential_new/homes_prog_reqs/multifamily_national_page">https://www.energystar.gov/partner_resources/residential_new/homes_prog_reqs/multifamily_national_page</a>.
<bullet> DOE Zero Energy Ready Homes <a href="https://www.energy.gov/eere/buildings/zero-energy-ready-homes">https://www.energy.gov/eere/buildings/zero-energy-ready-homes</a>.
<bullet> Earth Advantage <a href="https://www.earthadvantage.org/">https://www.earthadvantage.org/</a>.
<bullet> Earthcraft Gold or Platinum <a href="https://earthcraft.org/programs/earthcraft-house/">https://earthcraft.org/programs/earthcraft-house/</a>.
<bullet> Green Communities program by the Enterprise Community
Partners (2020 Criteria, EGC + Zero Ready/Phius) <a href="https://www.enterprisecommunity.org/solutions-and-innovation/green-communities">https://www.enterprisecommunity.org/solutions-and-innovation/green-communities</a>.
<bullet> Greenpoint Gold or Platinum. <a href="https://www.greenpointrated.com/greenpoint-rated/">https://www.greenpointrated.com/greenpoint-rated/</a>.
<bullet> The National Green Building Standard (NGBS)--Multifamily
and Mixed Use (four levels of base certification, plus *NGBS Green +
NET ZERO ENERGY CERTIFICATION) <a href="https://www.homeinnovation.com/services/certification/green_homes/multifamily_certification">https://www.homeinnovation.com/services/certification/green_homes/multifamily_certification</a>.
<bullet> International Living Future Institute (ILFI) Living
Building Challenge (LBC 4.0--Core Building Certification, *Zero Energy,
*Zero Carbon). <a href="https://living-future.org/lbc/">https://living-future.org/lbc/</a>.
<bullet> LEED V4 Homes and Multifamily Midrise, or LEED BD+C: Homes
and Multifamily Lowrise LEED BD+C: Multifamily Midrise (four levels of
certification, plus *LEED Zero) <a href="https://www.usgbc.org/resources/leed-v4-homes-and-multifamily-midrise-current-version">https://www.usgbc.org/resources/leed-v4-homes-and-multifamily-midrise-current-version</a>.
<bullet> Passive House Institute US, Inc. (Phius Core, *Phius Zero)
<a href="https://multifamily.phius.org/service-category/phius-within-reach">https://multifamily.phius.org/service-category/phius-within-reach</a>.
(ii) Zero Energy Buildings (3 points maximum). Points will be
awarded for achievements of deep energy efficiency and transitions
toward Zero Energy Building Performance for projects that have already
committed to compliance with at least Energy Star for Homes program,
with the additional following performance achievement commitments. For
Energy Star and other programs, a Home Energy Rating System (HERS
score) is a potential pathway for assessment of energy performance
achievement. A HERS score of 100 is the benchmark of an average home,
and scores that are lower than 100 illustrate a percentage of improved
performance from that average. A HERS 85 would mean that the unit
performs 15% better than the average housing unit. A HERS 0 means that
the housing unit has achieved net zero--that there is enough on-site
renewable energy to cover its consumption needs. HERS 42 is an
approximate benchmark that indicates that improved energy performance
achievements in performance will require the addition of on-site
renewable energy sources. Energy modeling that illustrates the
achievements of the following progressively successful achievements
will be awarded the following points:
<bullet> (1 point) HERS 42 or lower and all-electric
<bullet> (2 points) HERS 42 or lower, all-electric, and 10% on-site
renewable energy
<bullet> (3 points) HERS 0 or lower, all-electric, and 100% on-site
renewable energy
Applicants aspiring to achieve net zero energy are encouraged to
choose a
[[Page 28729]]
program from the list of green building programs above that has a Zero
Energy achievement adder or separately designed track. These programs
have asterisks next to them and include programs such as the Phius Zero
program, the ILFI Zero Energy or Zero Carbon Program, the NGBS Green +
NET ZERO ENERGY CERTIFICATION or LEED Zero. Working within a guided
program will assist the applicant in ensuring successful achievement of
zero energy goals.
Applicants must submit the corresponding checklist, registrations
in programs, and signed affidavits by the owner, the architect,
applicable mechanical, electrical plumbing, and structural engineers,
and other program-required green building professionals, energy
modelers and raters as applicable to the programs selected for point
consideration.
C. Water Conservation (1 point). One (1) point will be awarded for
xeriscaping of site landscaping and/or water conservation in irrigation
measures to include a recycled water (gray water or storm water) for
landscape irrigation covering 50 percent or more of the property's site
landscaping needs. In order to receive this point, the applicant's
architect or consulting landscape architect must illustrate in
narrative, draft specifications, and schematic drawings how this will
be achieved.
D. Property Management Credentials (1 point). Projects may be
awarded one (1) point if the designated property management company or
individuals that will assume maintenance and operation responsibilities
upon completion of construction work have a Credential for Green
Property Management. Credentialing can be obtained from the National
Apartment Association (NAA), National Affordable Housing Management
Association, The Institute for Real Estate Management, U.S. Green
Building Council Leadership in Energy and Environmental Design (USGBC
LEED) for Operations and Maintenance, or another source with a
certifiable credentialing program. Credentialing must be illustrated in
the resume(s) of the property management team and included with the
application in order to receive the point.
Additional requirement: All projects awarded scoring points for
energy initiatives must enroll the project in the EPA Portfolio Manager
program and the associated EPA Water Score program to track post
construction energy consumption data as well as water usage. More
information about this program may be found at: <a href="https://www.energystar.gov/buildings/benchmark">https://www.energystar.gov/buildings/benchmark</a>.
F. Federal Award Administration Information
1. Review and Selection Process
All pre-applications must be received by the due dates specified in
this Notice. Applications or application materials received after the
deadline will not be considered. Each application will be reviewed for
overall completeness, as well as compliance with eligibility and
program requirements set forth in this Notice. If an application does
not meet these requirements, it will be removed from consideration and
will not be scored. For applications found ineligible or incomplete,
RHS will send notices of ineligibility that provide notice of any
applicable appeal rights under 7 CFR part 11.
RHS will rank all eligible and complete pre-applications nationwide
by score, highest to lowest. Taking into account available funding, the
10 percent persistent poverty counties set-aside, and the 30 percent
limitation per state, RHS will determine which pre-applications will be
selected for further processing starting with the highest scoring pre-
application. RHS will notify applicants with pre-applications found
eligible and selected for further processing.
When proposals have an equal score and not all pre-applications can
be funded, preference will be given first to Indian tribes as defined
in Sec. 3560.11, then local non-profit organizations or public bodies
whose principal purposes include low-income housing and that meet the
conditions of Sec. 3560.55(c) and the following conditions:
<bullet> Is exempt from Federal income taxes as a public body or
under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code;
<bullet> Is not wholly or partially owned or controlled by a for-
profit or limited- profit type entity;
<bullet> Whose members, or the entity, do not share an identity of
interest with a for-profit or limited-profit type entity;
<bullet> Is not co-venturing with a for-profit or limited-profit
type entity; and
<bullet> The entity or its members will not be receiving any direct
or indirect benefits pursuant to the Low Income Housing Tax Credit
Program (LIHTC).
If after all of the above evaluations are completed and there are
two or more pre-applications that have the same score, and all cannot
be funded, a lottery will be used to break the tie. The lottery will
consist of the names of each pre-application with equal scores printed
onto a same size piece of paper, which will then be placed into a
receptacle that fully obstructs the view of the names. The Director of
the RHS Production and Preservation Division, in the presence of two
witnesses, will draw a piece of paper from the receptacle. The name on
the piece of paper drawn will be the applicant to be funded.
If insufficient funds or RA/OA remain for the next ranked proposal,
that applicant will be given a chance to modify their pre-application
funding request to bring it within the remaining available funding.
This will be repeated for the next ranked eligible proposal until an
award can be made or the list is exhausted.
If a pre-application is selected and the applicant declines, the
next highest ranked pre-application will be selected.
Applicants will be notified if there are insufficient funds
available for the proposal, and such notification is not appealable.
2. Administrative and National Policy
All FLH loans and grants are subject to the restrictive-use
requirements contained in 7 CFR 3560.72(a)(2).
For Section 516 Off-FLH grant awardees, a FLH grant agreement,
prepared by RHS, must be dated and executed by the applicant on the
date of closing. The grant agreement will remain in effect for so long
as there is a need for the housing and will not expire until an
official determination has been made by RHS that there is no longer a
need for the housing.
The applicant's Board of Directors must adopt a resolution in a
form acceptable to the RHS stating that the Board has read and fully
understands the grant agreement and understands that the grant
agreement will remain in effect until RHS determines that there is no
longer a need for the housing.
3. Reporting
Borrowers must maintain separate financial records for the
operation and maintenance of the project and for tenant services.
Tenant services will not be funded by RHS. Funds allocated to the
operation and maintenance of the project may not be used to supplement
the cost of tenant services, nor may tenant service funds be used to
supplement the project operation and maintenance. Detailed financial
reports regarding tenant services will not be required unless
specifically requested by RHS, and then only to the extent necessary
for RHS and the borrower to discuss the affordability (and
competitiveness) of the service provided to the tenant. The project
audit, or
[[Page 28730]]
verification of accounts on Form RD 3560-10, ``Multifamily Housing
Borrower Balance Sheet'' together with an accompanying Form RD 3560-7,
``Multiple Family Housing Project Budget/Utility Allowance'' must
allocate revenue and expenses between project operations and the tenant
services component.
G. Final Application and Submission Information
1. Final Application Submission Process
The pre-applications that are selected for further processing will
be invited to submit final applications. In the event that a pre-
application is selected for further processing and the applicant
declines, the next highest ranked pre-application will be selected for
further processing. The final applications will be due by the dates
specified in this Notice.
All final applications must be submitted to RHS and must meet the
requirements of this Notice. The final application submission process
will be the same as previously explained and outlined for the pre-
application submission process in Section C 1, ``Pre-Application and
Submission Information.'' Final applications that are incomplete as of
the deadline will be rejected and returned to the applicant. No final
applications or application materials will be accepted after the
deadline unless the date and time are extended by another Notice
published in the Federal Register.
A final application in accordance with this Notice must be
submitted and approved by RHS prior to the obligation of funds. RHS
will follow this Notice for the processing of final applications.
Awards will require a determination from RHS that the project is
feasible and meets all applicable program requirements as stated in
this Notice and in RHS regulations. If there are insufficient funds
available to fund all eligible final applications, awards will be made
in accordance with the Review and Selection Process described in
Section F.1 of this Notice.
2. Final Application Requirements
In addition to the items listed below, the final application must
contain any document that was submitted within the pre-application that
has since changed or needs to be updated. The Agency will advise the
applicant of any documents that are required to be updated. The
applicant may also change or update additional documents at the
applicant's discretion. The following new documents must be submitted:
(a) A narrative that contains a description of any changes from the
pre-application submission.
(b) Provide the following forms and certifications:
a. Form RD 400-1, ``Equal Opportunity Agreement'' can be found at:
<a href="https://forms.sc.egov.usda.gov/eForms/browseFormsAction.do?pageAction=displayPDF&formIndex=1">https://forms.sc.egov.usda.gov/eForms/browseFormsAction.do?pageAction=displayPDF&formIndex=1</a>.
b. Form RD 400-6, ``Compliance Statement'' can be found at: <a href="https://forms.sc.egov.usda.gov/eForms/browseFormsAction.do?pageAction=displayPDF&formIndex=4">https://forms.sc.egov.usda.gov/eForms/browseFormsAction.do?pageAction=displayPDF&formIndex=4</a>.
(c) Provide the following financial and organizational information:
a. Final organizational documents and Certificate of Good Standing.
b. Description of how the applicant will meet the equity
contribution requirement as applicable.
c. Description of how the applicant will provide the two percent
initial operating and maintenance reserve requirement.
(d) Provide the following Project information:
a. Current Preliminary title insurance commitment/binder.
b. Land survey with flood plain certification.
(e) Provide the following construction documents:
a. Final plans and specifications along with the proposed manner of
construction, if available. The housing must meet RHS's design and
construction standards contained in 7 CFR part 1924, subparts A and C,
and must also meet all applicable Federal, state, and local
accessibility standards and be in compliance with all current building
codes. The final plans and specifications, along with the proposed
manner of construction, are not required to be submitted prior to the
final application deadline. However, these documents must be submitted
prior to the approval of the final application. The Agency will
communicate to applicants the deadline to submit these documents.
b. Final construction planning, bidding, and contract documents,
including, but not limited to the construction contract and
architectural agreement, if available. The final construction planning,
bidding, and contract documents, including the construction contract
and architectural agreement, etc., are not required to be submitted
prior to the final application deadline. However, these documents must
be submitted prior to the approval of the final application. The Agency
will communicate to applicants the deadline to submit these documents.
(f) Provide the following financing information:
a. All applications that propose the use of any leveraged funds
should submit firm commitment letters within their final application,
if available. Applicants dependent upon third-party funding, including
but not limited to local-, state-, and federal resources through
competitive and noncompetitive application rounds, must obtain and
submit to the Agency a satisfactory commitment of those funds, as
determined by the Agency, upon receipt, but no later than the twelve-
month time frame, as specified in the award commitment. An extension of
the award commitment of up to six months may be given, at the sole
discretion of the Agency, and will be based on project viability,
current program demand, and availability of program funds. Applicants
unable to satisfy this condition of the award commitment will be
subject to having the award rescinded and will be required to reapply
in future funding announcements.
(g) Provide the following budget and management information:
a. Final proposed Form RD 1924-13, ``Estimate and Certificate of
Actual Cost.''
b. Final proposed post-construction operating budget utilizing Form
RD 3560-7, ``Multiple Family Housing Project Budget/Utility
Allowance.''
c. Form RD 3560-13, ``Multifamily Project Borrower's/Management
Agent's Management Certification'' if applicable, can be found at:
<a href="https://forms.sc.egov.usda.gov//efcommon/eFileServices/eForms/RD3560-13.PDF">https://forms.sc.egov.usda.gov//efcommon/eFileServices/eForms/RD3560-13.PDF</a>.
d. Management plan with all attachments including the proposed
record keeping system, the proposed lease with an attorney's
certification, if applicable, and the proposed occupancy rules.
e. Management Agreement, if applicable.
f. For projects that have five or more rental units, an Affirmative
Fair Housing Marketing Plan (AFHMP) as defined in 24 CFR part 200,
subpart M, in accordance with 7 CFR 1901.203(c). The AFHMP will reflect
that occupancy is open to all qualified ``domestic farm laborers,''
regardless of which farming operation they work for, and that they will
not discriminate on the basis of race, color, sex, age, disability,
marital or familial status or National origin in regard to the
occupancy or use of the units. The AFHMP must include all attachments
and supporting documentation.
Indian Tribes, including instrumentalities of such Indian Tribes,
[[Page 28731]]
are not required to comply with certain aspects of the AFHMP guidelines
above, and may allow members of Indian Tribes to be given preference
for housing. The Native American Housing Enhancement Act of 2005
(NAHEA), Public Law 109-136, Codified at 25 U.S.C. 4101 et seq.,
amended Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.)
which created the housing programs administered by the United States
Department of Agriculture, Rural Housing Service. The NAHEA excludes
Indian Tribes, including instrumentalities of such Indian Tribes, from
the requirement to comply with Title VI of the Civil Rights Act of
1964, and Title VIII of the Civil Rights Act of 1968, allowing members
of Indian Tribes to be given preference for housing in accordance to
the Native American Housing Assistance and Self Determination Act of
1996 (25 U.S.C. 4101 et seq.).
The NAHEA does not exempt Indian Tribes from complying with other
laws that apply to recipients of Federal financial assistance.
Therefore, Federally recognized Indian Tribes must continue to comply
with Section 504 of the Rehabilitation Act of 1973, the Age
Discrimination Act of 1975, and Title IX of the Education Amendments
Act of 1972, where applicable. The NAHEA also does not exempt Indian
Tribes from complying with the accessibility requirements of the Fair
Housing Amendments Act (FHAA) of 1988. This Act amended Title VIII of
the Fair Housing Act of 1968, to include disability and familial
status. Therefore, the NAHEA did not specifically exempt Indian Tribes
from the accessibility requirements of the FHAA. The requirements to
construct multi-family housing properties accessible to, or adaptable
for, persons with disabilities are to be followed. This requirement
shall be consistent with 7 CFR 3560.60(d).
(h) Provide the following third-party reports:
a. Acceptable appraisal. Appraisals for applications requesting an
Off-FLH loan may be conditioned but will be required prior to closing.
Please refer to the Agency's appraisal guidance under the ``To Apply''
tab on the Off-Farm Labor Housing Direct Loans & Grants website
(<a href="https://www.rd.usda.gov/programs-services/multifamily-housing-programs/farm-labor-housing-direct-loans-grants#to-apply">https://www.rd.usda.gov/programs-services/multifamily-housing-programs/farm-labor-housing-direct-loans-grants#to-apply</a>).
b. A Capital Needs Assessment (CNA) is not required. When
underwriting new construction applications, the Agency will require an
initial and ongoing capitalization of the replacement reserve account
to address future replacement reserve-eligible needs. This shall be
reflected in the applicant's development budget as an Initial Deposit
for Replacement Reserve (IDRR) in an amount equal to $250 per-unit. The
Annual Deposit for Replacement Reserve (ADRR) requirements shall be
reflected in the operating budget and shall be the lower of the
following:
i. 0.2% of the Total Development Costs (TDC) per unit.
ii. $450 per unit.
iii. An amount determined to be acceptable, at the sole discretion
of the agency based on the underwriting analysis, that is required by
another participating state or federal: program, lender, or investor in
the proposed transaction.
H. Documentation of Underwriting and Costs
All final applications including the loan and/or grant requests
will be analyzed using an underwriting template that RHS has developed.
A complete analysis and underwriting of the proposed transaction will
be completed to ensure all regulatory requirements are met and to
ensure overall project feasibility as well as to determine the minimum
amount of assistance that is needed for the proposal. Proposals that
are determined not to be feasible will not receive funding.
Questions regarding this Notice may be directed to Jonathan Bell,
Branch Director, Processing and Report Review Branch, Production and
Preservation Division, Multifamily Housing Program, Rural Development,
United States Department of Agriculture, or email:
<a href="/cdn-cgi/l/email-protection#c9848f81b9bba6aaacbabaa0a7aef889f5a8e9a1bbacaff4" http: usda.gov">usda.gov</a>">MFHprocessing1@<a href="http://usda.gov">usda.gov</a></a> or phone at: 800-292-8293.
I. Technical Assistance Providers
Please be aware that TA services may not be used to reimburse a
non-profit or public body applicant for technical services provided by
a non-profit organization, with housing and/or community development
experience, to assist the non-profit applicant entity in the
development and packaging of its loan/grant docket and project. In
addition, TA will not be funded by RHS when an identity of interest
exists between the TA provider and the loan or grant applicant.
Identity of interest is defined in 7 CFR 3560.11.
J. Applicant Assistance
The RHS plans to host a workshop to discuss this Notice, the
application process, and the borrower's responsibilities, among other
topics. Further information regarding the date and time of this
workshop, as well as information on how to participate in the workshop
will be issued at a later date in a public notice via GovDelivery.
Click here to sign up for notifications from Rural Development.
Prior to the submission of an application, the applicant is
encouraged to schedule a concept meeting with RHS to discuss the
application process, the specifics of the proposed project, and the
borrower's responsibilities under the Off-FLH new construction program,
among other topics.
Concept meetings will be scheduled between the dates of May 6, 2024
and May 31, 2024. No concept meetings will be scheduled outside of the
specified dates.
Requests for concept meetings can be sent to the following email
address: <a href="/cdn-cgi/l/email-protection#1c515a546c6e737f796f6f75727b2d5c207d3c746e797a21" http: usda.gov">usda.gov</a>">MFHprocessing1@<a href="http://usda.gov">usda.gov</a></a> and must be received by May 20, 2024.
The email must contain the following information:
(1) Subject line: ``Off-FLH New Construction Concept Call
Request.''
(2) Body of email: Borrower Name, Project Name, Borrower Contact
Information, Project State.
(3) Request language: ``We request to schedule a concept call to
discuss our proposed application for the Off-FLH New Construction
NOSA.''
K. Equal Opportunity Survey
RHS will provide applicants the voluntary OMB 1890-0014 form,
``Survey on Ensuring Equal Opportunity for Applicants,'' (or other
forms currently being used by RHS) and ask the applicant to complete it
and return it to RHS.
L. Substantial Portion of Income From Farm Labor
The Notice restates the requirement that domestic farm laborers
must receive a substantial portion of their income from ``farm labor.''
Further explanation of this requirement can be found in the regulation
at 7 CFR 3560.576(b)(2). The term ``farm labor'' is defined in 7 CFR
3560.11.
M. Build America, Buy America Act
Funding to Non-Federal Entities. Awardees that are Non-Federal
Entities, defined pursuant to 2 CFR 200.1 as any State, local
government, Indian tribe, Institution of Higher Education, or nonprofit
organization, shall be governed by the requirements of Section 70914 of
the Build America, Buy America Act (BABAA) within the Infrastructure
Investment and Jobs Act (Pub. L. 117-58), and its implementing
regulations at 2 CFR part 184. Any requests for waiver of these
requirements must be submitted pursuant to USDA's guidance available
[[Page 28732]]
online at <a href="https://www.usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver">https://www.usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver</a>.
N. Equal Opportunity and Non-Discrimination Requirements
In accordance with federal civil rights law and USDA civil rights
regulations and policies, USDA, its Mission Areas, agencies, staff
offices, employees, and institutions participating in or administering
USDA programs are prohibited from discriminating based on race, color,
national origin, religion, sex, gender identity (including gender
expression), sexual orientation, disability, age, marital status,
family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Program information may be made available in languages other than
English. Persons with disabilities who require alternative means of
communication to obtain program information (e.g., Braille, large
print, audiotape, American Sign Language, etc.) should contact the
responsible Mission Area, agency, staff office; or the 711 Relay
Service. Additionally, program information may be made available in
languages other than English.
To file a program discrimination complaint, a complainant should
complete Form AD-3027, USDA Program Discrimination Complaint Form,
which can be obtained online at <a href="https://www.usda.gov/sites/default/files/documents/ad-3027.pdf">https://www.usda.gov/sites/default/files/documents/ad-3027.pdf</a>, from any USDA office, by calling (866)
632-9992, or by writing a letter addressed to USDA. The letter must
contain the complainant's name, address, telephone number, and a
written description of the alleged discriminatory action in sufficient
detail to inform the Assistant Secretary for Civil Rights about the
nature and date of an alleged civil rights violation.
The completed AD-3027 form or letter must be submitted to USDA by:
(1) Mail: United States Department of Agriculture, Office of the
Assistant Secretary for Civil Rights, 1400 Independence Avenue SW,
Washington, DC 20250-9410;
(2) Fax: (202) 690-7442; or
(3) Email at: <a href="/cdn-cgi/l/email-protection#d7a7a5b8b0a5b6baf9beb9a3b6bcb297ebb6f7bfa5b2b1ea" http: usda.gov">usda.gov</a>">program.intake@<a href="http://usda.gov">usda.gov</a></a>.
USDA is an equal opportunity provider, employer, and lender.
Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2024-08155 Filed 4-18-24; 8:45 am]
BILLING CODE 3410-XV-P
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</html>Indexed from Federal Register on April 19, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.