Rule2024-28189
Section 504 Direct Single Family Housing Home Repair Loans and Grants; Materials Pilot Program
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
December 2, 2024
Effective
December 2, 2024
Issuing agencies
Agriculture DepartmentRural Housing Service
Abstract
The Rural Housing Service (RHS or the Agency), a Rural Development agency of the United States Department of Agriculture (USDA), is issuing this document to implement a demonstration program, the Section 504 Direct Single Family Housing Loans and Grants pilot program. The Agency's intention is to evaluate the existing regulations and remove regulatory barriers to assist eligible applicants with improved ease of use for very low-income homeowners seeking to repair or rehabilitate their homes. This document briefly discusses the new waiver and provides contact information for additional details about the pilot program.
Full Text
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<title>Federal Register, Volume 89 Issue 231 (Monday, December 2, 2024)</title>
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[Federal Register Volume 89, Number 231 (Monday, December 2, 2024)]
[Rules and Regulations]
[Pages 95079-95080]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28189]
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Rules and Regulations
Federal Register
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having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 /
Rules and Regulations
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 3550
[Docket No. RHS-24-SFH-0028]
Section 504 Direct Single Family Housing Home Repair Loans and
Grants; Materials Pilot Program
AGENCY: Rural Housing Service, USDA.
ACTION: Notification of waiver.
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SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural
Development agency of the United States Department of Agriculture
(USDA), is issuing this document to implement a demonstration program,
the Section 504 Direct Single Family Housing Loans and Grants pilot
program. The Agency's intention is to evaluate the existing regulations
and remove regulatory barriers to assist eligible applicants with
improved ease of use for very low-income homeowners seeking to repair
or rehabilitate their homes. This document briefly discusses the new
waiver and provides contact information for additional details about
the pilot program.
DATES: The effective date of the regulatory waiver is December 2, 2024.
The duration of the pilot program is anticipated to continue until
December 2, 2026, at which time the RHS may extend the pilot program
(with or without modifications) or terminate it depending on the
workload and resources needed to administer the program, feedback from
the public, and the effectiveness of the program. If the pilot program
is extended or terminated early, the RHS will notify the public via
Notice publication in the Federal Register.
FOR FURTHER INFORMATION CONTACT: Anthony Williams, Management and
Program Analyst, Special Programs and Initiatives Branch, Single Family
Housing Direct Loan Division, Rural Development, U.S. Department of
Agriculture, Email: <a href="/cdn-cgi/l/email-protection#7e1f100a16111007125009171212171f130d3e0b0d1a1f50191108"><span class="__cf_email__" data-cfemail="6c0d02180403021500421b050000050d011f2c191f080d420b031a">[email protected]</span></a>; Phone: (202) 720-9649.
SUPPLEMENTARY INFORMATION:
Authority
Title V, Section 504 of the Housing Act of 1949, as amended; 42
U.S.C. 1474.
Background
The RHS offers a variety of programs to build or improve housing
and essential community facilities in rural areas. The Agency offer
loans, grants, and loan guarantees for single- and multifamily 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. RHS also provides technical assistance
loans and grants in partnership with non-profit organizations, Indian
tribes, state and federal government agencies, and local communities.
The RHS Single Family Housing Direct Loans and Grants Program
(SFHDLGP) Division implements the Section 504 loan/grant program under
7 CFR part 3550 with the objective to assist very low-income owner
occupants of single-family homes in rural areas repair or rehabilitate
their homes. Loan funds are available for repairs to improve or
modernize a home, make it safer or more sanitary, or remove health and
safety hazards. The eligibility requirements, as described in 7 CFR
3550.103, include that a homeowner (1) be unable to secure financial
assistance at reasonable terms and conditions from a non-Agency source;
(2) lack the personal resources to meet their needs; and (3) can
demonstrate the ability to repay the Section 504 loan. For homeowners
62 years old and over at the time of application, grant funds are
available to correct health or safety hazards, or remodel dwellings to
make them accessible to a household member with a disability.
RHS may authorize limited demonstration (pilot) programs to test
new approaches to offering housing under the statutory authority
granted to the Secretary, as set forth in section 506(b) of the Housing
Act of 1949 (42 U.S.C. 1476(b)). Additional demonstration program
authority for regulations contained in 7 CFR part 3550 is provided at 7
CFR 3550.7. Any program requirements that are statutory will remain in
effect.
Discussion of the New Section 504 Waiver
To align with current market payment requirements and further
utilize program loan funding, RHS has determined to test and evaluate
the regulatory requirements under the new pilot program for the Single-
Family Housing Section 504 Home Repair Loan and Grant program under the
pilot program authority provided at section 506(b) of the Housing Act
of 1949 (42 U.S.C. 1476(b)):
The pilot program allows participants to use Section 504 loan or
grant funds for the payment of construction materials prior to site
delivery and without the need for the contractor to provide a surety
bond. This component of the demonstration program will permit SFHDLGP
to evaluate 7 CFR 1924.6(a)(12)(v)(C) which requires delivery of
materials prior to payment and a surety bond. Under the demonstration
program, payment in full may be made directly to the material supplier
so the order can be placed or to the contractor upon receipt of paid
invoice. Contractors expect up to fifty percent down prior to ordering
materials or beginning work, and applicants struggle to find
contractors that will work within the Agency's payment terms. This
waiver is a step closer to meeting contractor expectations while still
protecting applicants from fraudulent contractors that might take
downpayment funds and never complete the job.
Eligibility Requirements
(1) Eligble participants--Eligible participants in the Section 504
Home Repair Loan and Grant program must abide by the regulatory
requirements outlined in 7 CFR 3550. (2) Eligible States and
Territories--The following twenty-five (25) States and U.S. Territories
are selected based on program usage, involvement in the Rural Partners
Network, and to provide wide geographic and historic production
variation for the pilot program: Alabama, Alaska, American Samoa,
Arizona, California, Florida, Georgia, Kansas, Kentucky, Minnesota,
Mississippi, Montana, Nevada, North Carolina, North Dakota, Nebraska,
New Mexico, New York, Puerto Rico, South
[[Page 95080]]
Dakota, Tennessee, Texas, Washington, West Virginia, and Wisconsin.
Paperwork Reduction Act
The regulatory waivers for this pilot program contain no new
reporting or recordkeeping burdens under OMB control number 0575-0172
that would require approval under the Paperwork Reduction Act of 1995
(44 U.S.C. Chapter 35).
Non-Discrimination Statement
In accordance with Federal civil rights laws and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, the 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) should contact the
responsible Mission Area, agency, or staff office; or the 711 Relay
Service.
To file a program discrimination complaint, a complainant should
complete a 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 (ASCR) 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: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410; or
(2) Fax: (833) 256-1665 or (202) 690-7442; or
(3) Email: <a href="/cdn-cgi/l/email-protection#6111130e0613000c4f080f15000a0421141205004f060e17"><span class="__cf_email__" data-cfemail="3a4a48555d485b571453544e5b515f7a4f495e5b145d554c">[email protected]</span></a>
USDA is an equal opportunity provider, employer, and lender.
Joaquin Altoro
Administrator, Rural Housing Service.
[FR Doc. 2024-28189 Filed 11-29-24; 8:45 am]
BILLING CODE 3410-XV-P
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