Notice2025-14808
Notice of Funding Opportunity for the Section 533 Housing Preservation Grant (HPG) for Fiscal Year 2025
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Published
August 5, 2025
Issuing agencies
Agriculture DepartmentRural Housing Service
Abstract
The Rural Housing Service (RHS or the Agency), a Rural Development (RD) mission area agency of the United States Department of Agriculture (USDA), announces the availability of $13.1 million in funding for the Housing Preservation Grant (HPG) program for fiscal year (FY) 2025, which includes approximately $2.1 million that will be made available for disaster assistance and $500,000 each for recovery due to Hurricanes Fiona in Puerto Rico, and Helene in Tennessee. The funds are available for qualified entities (such as public agencies, private non-profit organizations, and federally recognized Tribes) to provide grants or low-interest loans to eligible recipients to repair or rehabilitate housing in rural areas. Rental and cooperative properties that house very-low and low-income tenants may also be provided with grants or low-interest loans to repair and rehabilitate their properties in rural areas. In accordance with 7 CFR 1944.662(c), when an "identity of interest" (as such term is defined by 7 CFR 1924.4(i)) exists between a nonprofit entity and the owner(s) of a dwelling, the property is not eligible for HPG assistance. Therefore, the HPG grantee may meet the factors provided at 7 CFR 1924.4(i), which includes a requirement that the HPG grantee not be the owner of the home, rental property or cooperative in which repairs will be performed. This notice announces the opening and closing dates for receipt of preapplications for HPG funds, including the availability of calendar year 2022 disaster assistance, from eligible applicants, as well as submission requirements. Expenses incurred in developing preapplications will be at the applicant's cost. Applicants will not be reimbursed for any costs incurred outside of the grant agreement period.
Full Text
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<title>Federal Register, Volume 90 Issue 148 (Tuesday, August 5, 2025)</title>
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[Federal Register Volume 90, Number 148 (Tuesday, August 5, 2025)]
[Notices]
[Pages 37461-37467]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-14808]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
[Docket No. RHS-25-NONE-0002]
Notice of Funding Opportunity for the Section 533 Housing
Preservation Grant (HPG) for Fiscal Year 2025
AGENCY: Rural Housing Service, Department of Agriculture.
ACTION: Notice.
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SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural
Development (RD) mission area agency of the United States Department of
Agriculture (USDA), announces the availability of $13.1 million in
funding for the Housing Preservation Grant (HPG) program for fiscal
year (FY) 2025, which includes approximately $2.1 million that will be
made available for disaster assistance and $500,000 each for recovery
due to Hurricanes Fiona in Puerto Rico, and Helene in Tennessee. The
funds are available for qualified entities (such as public agencies,
private non-profit organizations, and federally recognized Tribes) to
provide grants or low-interest loans to eligible recipients to repair
or rehabilitate housing in rural areas. Rental and cooperative
properties that house very-low and low-income tenants may also be
provided with grants or low-interest loans to repair and rehabilitate
their properties in rural areas. In accordance with 7 CFR 1944.662(c),
when an ``identity of interest'' (as such term is defined by 7 CFR
1924.4(i)) exists between a nonprofit entity and the owner(s) of a
dwelling, the property is not eligible for HPG assistance. Therefore,
the HPG
[[Page 37462]]
grantee may meet the factors provided at 7 CFR 1924.4(i), which
includes a requirement that the HPG grantee not be the owner of the
home, rental property or cooperative in which repairs will be
performed.
This notice announces the opening and closing dates for receipt of
preapplications for HPG funds, including the availability of calendar
year 2022 disaster assistance, from eligible applicants, as well as
submission requirements. Expenses incurred in developing
preapplications will be at the applicant's cost. Applicants will not be
reimbursed for any costs incurred outside of the grant agreement
period.
ADDRESSES: Preapplication Submission: Entities wanting to apply for
assistance may download the preapplication documents and requirements
as stated in this Notice from the HPG website at: <a href="https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants">https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants</a>. Applicants will also find the requirements
in the HPG program regulation found in 7 CFR part 1944, subpart N.
Preapplication information for electronic submissions may be found at
<a href="http://www.Grants.gov">http://www.Grants.gov</a>.
<bullet> Applicants may also request paper preapplication packages
from the RD office in their state. A list of Rural Development State
Office (RDSO) contacts can be found via: <a href="https://www.rd.usda.gov/about-rd/state-offices">https://www.rd.usda.gov/about-rd/state-offices</a>.
FOR FURTHER INFORMATION CONTACT: Mandy Couture, Finance and Loan
Analyst, Single Family Housing Direct Division, Special Programs and
New Initiatives Branch at (515) 418-2188 (voice) (this is not a toll-
free number) or email: <a href="/cdn-cgi/l/email-protection#4f022e212b36610c203a3b3a3d2a0f3a3c2b2e61282039"><span class="__cf_email__" data-cfemail="b7fad6d9d3ce99f4d8c2c3c2c5d2f7c2c4d3d699d0d8c1">[email protected]</span></a>. You may also contact the
RD office for the state in which the applicant is located. A list of
RDSO contacts is provided at: <a href="https://www.rd.usda.gov/about-rd/state-offices">https://www.rd.usda.gov/about-rd/state-offices</a>.
SUPPLEMENTARY INFORMATION:
Overview
Federal Awarding Agency Name: Rural Housing Service.
Funding Opportunity Title: Housing Preservation Grant (HPG).
Announcement Type: Initial Notice of Funding Opportunity (NOFO).
Funding Opportunity Number: USDA-RD-HCFP-HPG-2025.
Assistance Listing: 10.433.
Key Dates: Completed preapplications for grants must be submitted
according to one of the following methods:
Paper Submissions
The deadline for receipt of a paper preapplication is 4:30 p.m.
local time, September 4, 2025. Applicants intending to mail
preapplications must provide sufficient time to permit delivery on or
before the closing deadline date and time. Acceptance by the United
States Postal Service or private mailer does not constitute delivery.
Facsimile (FAX), and postage due preapplications will not be accepted.
The preapplication dates and times are firm. The Agency will not
consider any preapplication received after the deadline.
Electronic Submissions
Electronic preapplications must be received by email or submitted
to <a href="http://Grants.gov">Grants.gov</a>. The deadline for receipt of an electronic preapplication
is 11:59 p.m. Eastern Time on September 4, 2025. The preapplication
dates and times are firm. Applicants should confirm the emailed
preapplication was received by the Agency. The Agency will not consider
any preapplication received after the deadline. The Agency will not
solicit or consider scoring or eligibility information that is
submitted after the preapplication deadline. The Agency will not
consider any preapplication received after the deadline. The Agency
reserves the right to contact applicants to seek clarification
information on materials contained in the submitted preapplication.
A. Program Description
1. Purpose of the Program. The HPG program is a grant program
administered by the Single-Family Housing Programs of RHS. It is
limited to eligible rural areas and to qualified entities (such as
public agencies, private non-profit organizations, and federally
recognized Tribes). Grant funds can be used to assist low- and very
low-income homeowners in repairing and rehabilitating their homes in
rural areas.
Cooperative housing complexes (co-ops) and rental property owners
may receive assistance under the HPG program if they agree to make such
units available to very low- and low-income persons. Rental property
owners can include Section 515 and 538 rental properties if the
eligibility requirements are met for the HPG program. In accordance
with 7 CFR 1944.663, rental property owners, or the co-op, must agree
to make the units repaired or rehabilitated available for occupancy to
very low- or low-income persons for a period of not less than five
years. The minimum five-year rent restriction for very low- and low-
income tenants will only apply to the units that are repaired with the
HPG funding. HPG funding for rental properties and co-ops cannot exceed
75% of the total cost of all repairs and rehabilitation activities
eligible for HPG assistance. Any units within the property that were
not repaired with HPG funding will not be subject to the five-year
restriction.
Note: For expected performance goals, measuring standards or
outcomes, see 7 CFR 1944.688.
2. Statutory and Regulatory Authority. The Housing Preservation
Grant program is authorized by Section 533 of the Housing Act of 1949,
as amended, and funding for the program is made available pursuant to
the Full-Year Continuing Appropriations and Extensions Act, 2025
(Public Law 119-4); and the program has been implemented by 7 CFR part
1944, subpart N.
3. Definitions. The definitions applicable to this notice may be
found at 7 CFR 1944.656.
4. Application of Awards. The Agency will review, evaluate, and
score preapplications in response to this notice based on the
provisions in 7 CFR 1944.679 and as indicated in this notice.
B. Federal Award Information
Type of Award: Grants.
Fiscal Year Funds: FY 2025 $13.1 million, to remain available until
expended.
Available Funds: Approximately $13.1 million is made available to
eligible participants. Approximately $2.1 million of this funding is
available for Calendar Year 2022 disaster assistance and $500,00 each
for Hurricanes Fiona (DR4671) in Puerto Rico and Helene (DR4832) in
Tennessee. The disaster funding is made available from the Consolidated
Appropriations Act, 2023, Division N, Title I. RHS may, at its
discretion, increase the total level of funding available from any
available source provided the awards meet the requirements of the
statute which made the funding available to the Agency.
Award Amounts: As required by 7 CFR 1944.680, no single entity may
be awarded more than \1/2\ of a state's allocation if there are two or
more preapplications for a given state that meet the threshold criteria
of 7 CFR 1944.679(a). FY 2025 State Allocations can be obtained from
the RDSO. An award made for disaster assistance may not exceed a
maximum award amount of $50,000, with no state maximum for the number
of such disaster assistance awards. The anticipated award amounts may
range between $30,000 and $100,000 but will be based on the state's
allocation and number of eligible applicants. The Agency reserves the
right to offer the applicant less than the grant funding requested.
[[Page 37463]]
Note: A list of RDSO contacts is provided at: <a href="https://www.rd.usda.gov/about-rd/state-offices">https://www.rd.usda.gov/about-rd/state-offices</a>.
Anticipated Award Date: The Agency anticipates making awards
approximately 120 days after the preapplication deadline.
Performance Period: 24 months from the executed grant agreement.
Renewal or Supplemental Awards: None.
Approximate Number of Awards: The number of awards will depend on
the number of eligible participants and the total amount of funds
requested. Based on the Agency's prior experience with this program, it
expects to make approximately 100-120 awards.
C. Eligibility Information
1. Eligible Applicants. (a) Potential applicants must meet the
eligibility requirements of 7 CFR 1944.658. Additionally, potential
applicants must meet the requirements of 7 CFR 1944.661, 1944.662, and/
or 1944.686 as applicable (see, Section D. of this NOFO for other
eligibility criteria). Applicants who are entities must meet the
definition of ``organization'' as defined in 7 CFR 1944.656. Eligible
entities include State and local governments, non-profit organizations,
which may include, but not be limited to Faith-Based and community
organizations; federally recognized Indian tribes; and consortia of
eligible entities. HPG applicants who were previously selected for HPG
funds are eligible to submit new preapplications to apply for FY 2025
HPG program funds. An additional HPG grant may be made when the grantee
has achieved or nearly achieved the goals established for the previous
or existing grant. The commitment of program dollars will be made to
selected applicants who have fulfilled the necessary requirements for
obligations. Awards for disaster assistance grants may be made only for
disaster declared as a presidentially declared disaster during calendar
year 2022 presidentially declared area(s). A presidentially declared
disaster is defined as a ``major disaster or emergency'' declared under
the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as
amended (42 U.S.C. 5121 et seq.). A list of 2022 presidentially
declared disasters can be viewed at <a href="https://www.fema.gov/disaster/declarations">https://www.fema.gov/disaster/declarations</a>.
2. Cost Sharing or Matching. Pursuant to 7 CFR 1944.652(a)(1),
grantees are expected to coordinate and leverage funding for repair and
rehabilitation activities; as well as replacement housing, with housing
and community development organizations or activities operating in the
same geographic area. While it is encouraged that HPG funds be
leveraged with other resources, cost sharing or matching is not a
requirement for the HPG applicant, and the HPG applicant would not
necessarily be denied an award of HPG funds if all other required
project selection criteria described in this notice and at 7 CFR
1944.679(a) have been met.
3. Discretionary Points. None.
4. Other. Awards made under this Notice are subject to the
provisions contained in the Full-Year Continuing Appropriations and
Extensions Act, 2025 (Pub. L. 119-4, and extends provisions from FY
2024 appropriations, to include the Consolidated Appropriations Act,
2024 Division B, Title VII sections 744 and 745. To comply with these
provisions, only applicants that are or propose to be, corporations
will be required submit Form AD 3030, ``Representations Regarding
Felony Conviction and Tax Delinquent Status for Corporate Applicants''
as part of their preapplication.
There are no limits on proposed direct and indirect costs. Expenses
incurred in developing preapplications will be at the applicant's cost.
Applicants will not be reimbursed for any costs incurred outside of the
grant agreement period.
D. Preapplication and Submission Information
1. Address to Request Preapplication Package. Entities wanting to
apply for assistance may download the preapplication documents for this
Notice from the HPG website: <a href="https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants">https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants</a>.
Preapplication information for electronic submissions may be found at
<a href="https://www.grants.gov">https://www.grants.gov</a>.
Applicants may also request a paper preapplication package from the
RD office in their state. A list of RDSO contacts can be found via
<a href="https://www.rd.usda.gov/about-rd/state-offices">https://www.rd.usda.gov/about-rd/state-offices</a>.
2. Content and Form of Preapplication Submission. All requirements
for submission of a preapplication under the Housing Preservation
Program are subject to 7 CFR part 1944, subpart N. If the applicant is
ineligible or the preapplication is incomplete, the Agency will inform
the applicant in writing of the decision, reasons therefore, and its
appeal rights and no further evaluation of the preapplication will
occur.
As specified by 7 CFR 1944.676, the Agency requires applicants to
submit the following information to make an eligibility determination:
a. An SF-424, ``Application for Federal Assistance'';
(i) Made available by contacting any RDSO at the website: <a href="http://www.rd.usda.gov/contact-us/state-offices">http://www.rd.usda.gov/contact-us/state-offices</a>; or
(ii) <a href="http://Grants.gov">Grants.gov</a> at the following website: <a href="https://www.grants.gov">https://www.grants.gov</a>.
b. A statement of activities proposed by the applicant for its HPG
program as appropriate to the type of assistance the applicant is
proposing, including:
(i) A complete discussion of the type of and conditions for
financial assistance for housing preservation, including whether the
request for assistance is for a homeowner assistance program, a rental
property assistance program, or a cooperative assistance program.
(ii) The process for selecting recipients for HPG assistance,
determining housing preservation needs of the dwelling, performing the
necessary work, and monitoring/inspecting work performed.
(iii) A description of the process for identifying potential
environmental impacts in accordance with Sec. 1944.672 of this subpart
and the provisions for compliance with Stipulation I.A-G of the
Programmatic Memorandum of Agreement (PMOA) in accordance with 7 CFR
1944.673(b). With the exception of Stipulation I.D of the PMOA, this
may be accomplished by adoption of exhibit F-1 within RD Instruction
1944-N (available in any Rural Development office), or another process
supplying similar information acceptable to Rural Development.
(iv) The development standard(s) the applicant will use for the
housing preservation work; and, if not the RD standards for existing
dwellings, the evidence of its acceptance by the jurisdiction where the
grant will be implemented.
(v) The time schedule for completing the program.
(vi) The staffing required to complete the program.
(vii) The estimated number of very low- and low-income minority and
non-minority persons the grantee will assist with HPG funds; and, if
there is a rental property or cooperative assistance program, the
number of units and the term of restrictive covenants on their use for
very low- and low-income.
(viii) The geographical area(s) to be served by the HPG program.
(ix) The annual estimated budget for the program period based on
the financial needs to accomplish the objectives outlined in the
proposal. The budget should include proposed direct
[[Page 37464]]
and indirect administrative costs, such as personnel, fringe benefits,
travel, equipment, supplies, contracts, and other cost categories,
detailing those costs for which the grantee proposes to use the HPG
grant separately from non-HPG resources, if any. The applicant budget
should also include a schedule (with amounts) of how the applicant
proposes to draw HPG grant funds, i.e., monthly, quarterly, lump sum
for program activities, etc. The applicant can use SF-424A to provide
this information.
(x) A copy of an indirect cost proposal/rate or direct cost policy
when the applicant has another source of federal funding in addition to
the RD HPG program.
(xi) A brief description of the accounting system to be used.
(xii) The method of evaluation to be used by the applicant to
determine the effectiveness of its program which encompasses the
requirements for quarterly reports to RD in accordance with 7 CFR
1944.683(b) and the monitoring plan for rental properties and
cooperatives (when applicable) according to 7 CFR 1944.689.
(xiii) The source and estimated amount of other financial resources
to be obtained and used by the applicant for both HPG activities and
housing development and/or supporting activities.
(xiv) The use of program income if any, and the tracking system
used for monitoring same.
(xv) The applicant's plan for disposition of any security
instruments held by them as a result of its HPG activities in the event
of its loss of legal status.
(xvi) Any other information necessary to explain the proposed HPG
program.
(xvii) The outreach efforts outlined in 7 CFR 1944.671(b).
c. Experience. Complete information about the applicant's
experience and capacity to carry out the objectives of the proposed HPG
program.
d. Evidence of Legal Existence. Evidence of the applicant's legal
existence, including, in the case of a private non-profit organization,
a copy of, or an accurate reference to, the specific provisions of
state law under which the applicant is organized; a certified copy of
the applicant's Articles of Incorporation and Bylaws or other evidence
of corporate existence; certificate of incorporation for applicants
other than public bodies; evidence of good standing from the state in
which the applicant is organized and evidence of authority to do
business in any state in which the applicant is proposing to expend HPG
funds, when the corporation has been in existence one year or more; and
the names and addresses of the applicant's members, directors and
officers. If other organizations are members of the applicant-
organization, or the applicant is a consortium, preapplications should
be accompanied by the names, addresses, and principal purpose of the
other organizations. If the applicant is a consortium, documentation
showing compliance with paragraph (4)(ii) under the definition of
``organization'' in 7 CFR 1944.656 must also be included.
e. Audited and Financial Statements. For a private non-profit
entity, the most recent audited statement and a current financial
statement dated and signed by an authorized officer of the entity
showing the amounts and specific nature of assets and liabilities
together with information on the repayment schedule and status of any
debt(s) owed by the applicant. If the applicant is an organization
being assisted by another private non-profit organization, the same
type of financial statement should also be provided by that
organization.
f. Narrative Statement. A brief narrative statement which includes
information about the area to be served and the need for improved
housing (including both percentage and the actual number of both low-
income and low-income minority households and substandard housing), the
need for the type of housing preservation assistance being proposed,
the anticipated use of HPG resources for historic properties, and the
method of evaluation to be used by the applicant in determining the
effectiveness of its efforts (according to 7 CFR 1944.676(b)(1)(xii)).
g. Alleviating Overcrowding Statement. A statement containing the
component for alleviating any overcrowding as defined by 7 CFR
1944.656. The overcrowding statement pertains to rental and cooperative
properties.
h. List of Other Activities. A list of other activities the
applicant is engaged in and expects to continue, a statement as to any
other funding, and whether it will have sufficient funds to assure
continued operation of the other activities for at least the period of
the HPG grant agreement.
i. Project Selection Criteria. Any other information necessary to
address the selection criteria in 7 CFR 1944.679.
j. Environmental Compliance Agreement. The applicant must comply
with the requirements of 7 CFR part 1970 and may self-certify to
perform these requirements. An example of self-certification can be
found in RD Instruction 1970-A Exhibit H ``Multi-tier Action
Environmental Compliance Agreement.''
k. Public Participation and Intergovernmental Review.
Intergovernmental Review. In accordance with 7 CFR 1944.674(c), the HPG
program is subject to the provisions of Executive Order 12372, which
requires intergovernmental consultation with state and local officials.
RD conducts intergovernmental consultation as implemented with 2 CFR
part 415, subpart C. Not all States have chosen to participate in the
intergovernmental review process. A list of participating States is
available at the following website: <a href="https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/intergovernmental-review">https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/intergovernmental-review</a>.
Preapplications from federally recognized Indian Tribes are not subject
to this requirement.
(i) The applicant must submit written statements and related
correspondence reflecting compliance with 7 CFR 1944.674(a) regarding
consultation with local leaders from all the county, parish, and/or
township governments of the area where the HPG activities will take
place for the purpose of assuring that the proposed HPG program is
beneficial and does not duplicate current activities. American Indian
nonprofit organization applicants should obtain the written concurrence
of the tribal governing body in lieu of consulting with the county
governments when the program is operated only on tribal land.
(ii) The applicant is to make its statement of activities available
to the public for comment prior to submission to RD pursuant to 7 CFR
1944.674(b). The applicant(s) must announce the availability of its
statement of activities for review in a print or online newspaper of
general circulation in the project area and allow at least 15 days for
public comment. The start of this 15-day period must occur no later
than 16 days prior to the last day for acceptance of preapplications by
the Agency. Federally recognized Indian Tribes, pursuant to 7 CFR
1944.674(a), should obtain the written concurrence of the tribal
governing body in lieu of consulting with the county governments when
the program is operated only on tribal land. The preapplication must
contain a description of how the comments (if any were received) were
addressed.
l. Assurance Agreement. The applicant must submit an original of
Form RD 400-4, ``Assurance Agreement'' in accordance with 7 CFR
[[Page 37465]]
1944.676 and comply with 1944.676(h) to the extent necessary.
m. Civil Rights. Applicants must collect and maintain data provided
by recipients on race, sex, and national origin and ensure ultimate
recipients collect and maintain this data as described in 7 CFR
1944.671. Race and ethnicity data will be collected in accordance with
OMB Federal Register notice. These items should not be submitted with
the preapplication but should be available upon request by the Agency.
The applicant and the recipient must comply with Title VI of the
Civil Rights Act of 1964, Title IX of the Education Amendments of 1972,
the Americans with Disabilities Act (ADA), Section 504 of the
Rehabilitation Act of 1973, Age Discrimination Act of 1975, Executive
Order 12250, and 7 CFR part 1901, subpart E.
n. Debarment and Suspension. Debarment and suspension information
is required in accordance with 2 CFR part 180 and 2 CFR part 417 (OMB's
Guidelines to Agencies on Governmentwide Debarment and Suspension
(Nonprocurement) (Non procurement Debarment and Suspension) if it
applies. The section heading is ``What information must I provide to a
higher tier participant before entering into a covered transaction with
that participant?'' located at 2 CFR 180.335. It is part of OMB's
Guidance for Grants and Agreements concerning Governmentwide Debarment
and Suspension. Applicants are not eligible if they have been debarred
or suspended or otherwise excluded from, or ineligible for,
participation in Federal assistance programs under 2 CFR parts 180 and
417.
3. System for Award Management and Unique Entity Identifier. (a) At
the time of preapplication, each applicant must have an active
registration in the System for Award Management (SAM) before submitting
its preapplication in accordance with 2 CFR 25 (<a href="https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25">https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25</a>). To register in SAM,
entities will be required to obtain a Unique Entity Identifier (UEI).
Instructions for obtaining the UEI are available at <a href="https://sam.gov/content/entity-registration">https://sam.gov/content/entity-registration</a>.
(b) Applicant must maintain an active SAM registration, with
current, accurate and complete information, at all times during which
there is an active Federal award or an application under consideration
by a Federal awarding agency.
(c) Applicant must ensure they complete the Financial Assistance
General Certifications and Representations in SAM.
(d) Applicants must provide proof of SAM registration and a valid
UEI in its preapplication, unless determined exempt under 2 CFR 25.110
(<a href="https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25/subpart-A/section-25.110">https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25/subpart-A/section-25.110</a>).
4. Submission Dates and Times. The Agency will not solicit or
consider new scoring or eligibility information that is submitted after
the preapplication deadline. RHS also reserves the right to ask
applicants for clarifying information and additional verification of
assertions in the preapplication.
5. Intergovernmental Review. Executive Order (E.O.) 12372,
``Intergovernmental Review of Federal Programs,'' applies to this
program. This E.O. requires that Federal agencies provide opportunities
for consultation on proposed assistance with State and local
governments. Many states have established a Single Point of Contact
(SPOC) to facilitate this consultation. For a list of States that
maintain a SPOC, please see the website: <a href="https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/intergovernmental-review">https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/intergovernmental-review</a>. If your
State has a SPOC, you must submit a copy of the preapplication directly
for review. Any comments obtained through the SPOC must be provided to
your State Office for consideration as part of your preapplication. If
your state has not established a SPOC, you may submit your
preapplication directly to the Agency. Preapplications from Federally
recognized Indian Tribes are not subject to this requirement.
6. Funding Restrictions. Preapplications must be for eligible
purposes as defined above. There are no limits on proposed direct and
indirect costs. Expenses incurred in developing preapplications will be
at the applicant's cost.
7. Other Submission Requirements: None.
E. Preapplication Review Information
1. Criteria. All eligible and complete preapplications for HPG
funds must be filed with the appropriate RDSO and all paper or
electronic preapplications must meet the threshold requirements of this
Notice and the threshold criteria provided at 7 CFR 1944.679(a).
Preapplications determined not eligible and/or not meeting the
threshold criteria will be notified by the RDSO.
2. Review and Selection Process. RDSOs will complete the risk
assessment by utilizing the following threshold project selection
criteria for applicants in accordance with 7 CFR 1944.679(a):
(1) Providing a financially feasible program of housing
preservation assistance. ``Financially feasible'' is defined as
proposed assistance which will be affordable to the intended recipient
or result in affordable housing for very low- and low-income persons.
(2) Serving eligible rural areas with a concentration of
substandard housing for households of very low- and low-income.
(3) Being an eligible applicant as defined in 7 CFR 1944.658.
(4) Meeting the requirements of consultation and public comment in
accordance with 7 CFR 1944.674.
(5) Submitting a complete preapplication as outlined in 7 CFR
1944.676.
3. Scoring. For applicants to meet all the threshold requirements
listed above, the RDSOs will use weighted criteria in accordance with 7
CFR 1944.679(b) as selection for the grant recipients. Each
preapplication and its accompanying statement of activities will be
evaluated and, based solely on the information contained in the
preapplication, the applicant's proposal will be numerically rated on
each criterion within the range provided. The highest-ranking
applicant(s) will be selected based on the allocation of funds
available to the state.
(1) Points are awarded based on the percentage of very low-income
persons that the applicant proposes to assist, using the following
scale:
(i) More than 80%: 20 points
(ii) 61% to 80%: 15 points
(iii) 41% to 60%: 10 points
(iv) 20% to 40%: 5 points
(v) Less than 20%: 0 points
(2) The applicant's proposal may be expected to result in the
following percentage of HPG fund use (excluding administrative costs)
to total cost of unit preservation. This percentage reflects maximum
repair or rehabilitation with the least possible HPG funds due to
leveraging, innovative financial assistance, owner's contribution, or
other specified approaches. Points are rewarded based on the following
percentage of HPG funds (excluding administrative costs) to total
funds:
(i) 50% or less: 20 points
(ii) 51% to 65%: 15 points
(iii) 66% to 80%: 10 points
(iv) 81% to 95%: 5 points
(v) 96% to 100%: 0 points
(3) The applicant has demonstrated its administrative capacity in
assisting very low- and low-income persons to obtain adequate housing
based on the following:
[[Page 37466]]
(i) The organization or a member of its staff has at least one or
more years of experience successfully managing and operating a
rehabilitation or weatherization type program: 10 points.
(ii) The organization or a member of its staff has at least one or
more years of experience successfully managing and operating a program
assisting very low- and low-income persons obtain housing assistance:
10 points.
(iii) If the organization has administered grant programs, there
are no outstanding or unresolved audit or investigative findings which
might impair carrying out the proposal: 10 points.
(4) The proposed program will be undertaken entirely in rural areas
outside Metropolitan Statistical Areas (MSAs) identified by RD as
having populations below 10,000 or in remote parts of other rural areas
(i.e., rural areas contained in MSAs with less than 5,000 population)
as defined in 7 CFR 1944.656: 10 points.
(5) The program will use less than 20 percent of HPG funds for
administration purposes:
(i) More than 20%: Not eligible
(ii) 20%: 0 points
(iii) 19%: 1 point
(iv) 18%: 2 points
(v) 17%: 3 points
(vi) 16%: 4 points
(vii) 15% or less: 5 points
(6) The proposed program contains a component for alleviating
overcrowding as defined in 7 CFR 1944.656: 5 points.
In the event more than one preapplication receives the same number
of points, those preapplications will then be ranked based on the
actual percentage figure used for determining the points in item (1) in
the ``Scoring'' section of this Notice (7 CFR 1944.679 (b)(1)).
Example of 1st tie-break:
Both Applicants score 80 points
Applicant X's percentage in ``Scoring'' section item (1) is 65%
Applicant B's percentage in ``Scoring'' section item (1) is 75%
Applicant B is ranked higher than Applicant X
Applicant B will be funded before Applicant X
Further, if preapplications are still tied, then those
preapplications still tied will be ranked based on the percentage
figures used for determining the points in item (2) in the ``Scoring''
section of this Notice.
Example of 2nd tie-break:
Both Applicants score 80 points
Both Applicants percentage in ``Scoring'' section item (1) is 65%
Applicant X's percentage in ``Scoring'' section item (2) is 55%
Applicant B's percentage in ``Scoring'' section item (2) is 60%
Applicant X is ranked higher with a lower percentage than Applicant B
Applicant X will be funded before Applicant B
Further for preapplications where HPG assistance to rental
properties or co-ops is proposed, those still tied will be further
ranked based on the number of years the units are available for
occupancy under the program (a minimum of five years is required). For
this part, ranking will be based on the most to least number of years.
Example of 3rd tie-break:
Both Applicants score 80 points
Both Applicants percentage in ``Scoring'' section item (1) is 65%
Both Applicants percentage in ``Scoring'' section item (2) is 55%
Applicant X's rental unit will be available for occupancy under the
program for 10 years
Applicant B's rental unit will be available for occupancy under the
program for 5 years
Applicant X is ranked higher than Applicant B
Applicant X will be funded before Applicant B
If any of the applicants that remain tied after the 1st and 2nd
tie-breaks are offered to assist single family owners, then the 3rd
tie-break would not be applicable, and a lottery would be used to
select the applicant to be funded.
If there is still a tie after the first two (or three, when
applicable) tie-breaks, then a lottery system will be used to select
the applicant to be funded. The lottery will be conducted at the
National Office. The lottery will consist of the names of each
preapplication 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 Single-Family Housing
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.
After the award selections are made by the National Office, all
applicants will be notified of the status of their preapplications in
writing. Applicants will be given their review rights or appeal rights
in accordance with 7 CFR 1944.682.
F. Federal Award Administration Information
1. Federal Award Notices. The Agency will notify applicants whose
preapplications have been selected for funding in writing. At the time
of notification, the Agency will advise the applicant what further
information and documentation is required along with a timeline for
submitting additional information. This notification is not an
authorization to begin performance. Performance may only begin once 7
CFR 1944, Subpart N, Exhibit A, ``Housing Preservation Grant
Agreement'' is signed by the Agency and the awardee.
Expenses incurred in developing preapplications will be at the
applicant's expense. Applicants will not be reimbursed for any costs
incurred outside of the grant agreement period.
The official obligation document of the federal award is Form RD
1940-1, ``Request for Obligation of Funds'' which must be signed by the
Agency and the awardee prior to obligation of funds. This document will
be mailed or emailed to the awardee for signature.
Modifications may be made to an award during the grant period, as
described in 7 CFR 1944.684. The grantee must submit a modification
request in writing. The Agency will respond to the grantee within 30
days of receipt of the request. The Agency may approve the request at
its discretion, and any such approval will be provided in writing and
Exhibit B of subpart N of 7 CFR 1944 will be used for all extensions on
and modifications to the grant agreement., ``Amendment to Housing
Preservation Grant Agreement'' must be executed by the Agency and the
grantee. Any modifications to a federal award must be consistent with
competitive fairness in the application process, and any modifications
must also be consistent with the eligibility and application selection
requirements of the NOFO.
If the Agency determines it is unable to select the preapplication
for funding, the applicant will be informed in writing. Such
notification will include the reasons the applicant was not selected.
The Agency will advise applicants, whose preapplications did not meet
eligibility and/or selection criteria, of their review rights or appeal
rights in accordance with 7 CFR 1944.682.
2. Administrative and National Policy Requirements.
(a) The following additional requirements apply to grantees
selected for this program:
(i) Form SF-424, ``Application for Federal Assistance''
(ii) Form RD 1940-1, ``Request for Obligation of Funds''
(iii) 7 CFR part 1944, subpart N, Exhibit A, ``Housing Preservation
Grant Agreement''
(v) Certification in accordance with 7 CFR 1944.657 Restriction on
lobbying.
[[Page 37467]]
An example of an acceptable form of such certification can be found in
RD Instruction 1940-Q Exhibit A-1, ``Certification for Contracts,
Grants and Loans'' Available in any Rural Development Office
(vi) Form SF 3881, ``ACH Vendor Payment Enrollment Form''
(vii) Form SF 270, ``Request for Advance or Reimbursement''
(viii) Form SF 425, ``Federal Financial Report''
(ix) Quarterly reports in accordance with 1944.683. An example report
can be found in RD Instruction 1944-N, Exhibit E-1 (Available in any
Rural Development Office)
(x) Environmental requirements in accordance with 7 CFR 1944.672.
Examples of these requirements can be found in RD Instruction 1944-N,
Exhibit F-1, ``Grantee's Process for Identifying Properties Requiring
Rural Development Environmental Assessments'' (available in any Rural
Development Office).
(xi) Execute Form SF-LLL, ``Disclosure of Lobbying Activities'' (if
applicable)
The grant recipient must include the required nondiscrimination
statements in any of their advertisements and brochures.
3. Reporting. Performance reporting, including applicable forms,
narratives, and other documentation, are to be completed and submitted
in accordance with the provisions of 7 CFR 1944.683 and R7 CFR 1944,
Subpart N, Exhibit A, ``Housing Preservation Grant Agreement''.
Further, all grantees must submit an audit or financial information
covering the defined period of performance as outlined in 7 CFR
1944.688 and the Grant Agreement.
G. Federal Awarding Agency Contact(s)
For general questions about this announcement, please contact Mandy
Couture, Finance and Loan Analyst, Single Family Housing Direct
Division, Special Programs and New Initiatives Branch at (515) 418-2188
(voice) (this is not a toll-free number) or email:
<a href="/cdn-cgi/l/email-protection#e8a589868c91c6ab879d9c9d9a8da89d9b8c89c68f879e"><span class="__cf_email__" data-cfemail="793418171d00573a160c0d0c0b1c390c0a1d18571e160f">[email protected]</span></a>. The Program website also provides up to date
contact information at: <a href="https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants#contact">https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants#contact</a>.
Awardees subject to the audit requirements of 2 CFR 200.501, shall
provide a full and complete reporting package in accordance with 2 CFR
200.512(c), submitted to the Federal Audit Clearinghouse the earlier of
30 calendar days after the auditee receives the auditor's report(s) or
nine months after the end of the audit period.
H. Other Information
1. Paperwork Reduction Act. In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. chapter 35), the information
collection requirements associated with the programs, as covered in
this notice, have been approved by the Office of Management and Budget
(OMB) under OMB Control Number 0575-0174.
2. National Environmental Policy Act. All recipients under this
notice are subject to the requirements of 7 CFR 1b.
3. Federal Funding Accountability and Transparency Act. All
applicants, in accordance with 2 CFR part 25, must be registered in SAM
and have a UEI number as stated in Section D.3 of this notice. All
recipients of Federal financial assistance are required to report
information about first-tier sub-awards and executive total
compensation in accordance with 2 CFR part 170.
4. Civil Rights Act. All awards of Federal financial assistance
made under this NOFO are subject to applicable civil rights laws, which
may include Title VI of the Civil Rights Act of 1964, Section 504 of
the Rehabilitation Act of 1973, Age Discrimination Act of 1975, Title
VIII of the Civil Rights Act of 1968, Title IX of the Education
Amendments Act of 1973, and the Equal Credit Opportunity Act of 1974.
5. Nondiscrimination Statement. In accordance with Federal civil
rights law and U.S. Department of Agriculture (USDA) civil rights
regulations and policies, the USDA, its Agencies, offices, and
employees, and institutions participating in or administering USDA
programs are prohibited from discriminating based on race, color,
national origin, religion, sex, 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.
Persons with disabilities who require alternative means of
communication for program information (e.g., Braille, large print,
audiotape, American Sign Language, etc.) should contact the State or
local Agency that administers the program or contact USDA through the
Telecommunications Relay Service at 711 (voice and TTY). Additionally,
program information may be made available in languages other than
English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online <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> and at any USDA
office or write a letter addressed to USDA and provide in the letter
all of the information requested in the form. To request a copy of the
complaint form, call (866) 632-9992. Submit your completed form or
letter to USDA by: (1) mail: U.S. Department of Agriculture, Office of
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW,
Mail Stop 9410, Washington, DC 20250-9410; (2) fax: (202) 690-7442; or
(3) email: <a href="/cdn-cgi/l/email-protection#f68684999184979bd89f9882979d93b683859297d8919980"><span class="__cf_email__" data-cfemail="7b0b09141c091a165512150f1a101e3b0e081f1a551c140d">[email protected]</span></a>.
6. Equal Opportunity for Religious Organizations. Faith-based
organizations may apply for this award on the same basis as any other
organization, as set forth at, and subject to the protections and
requirements of, this part and any applicable constitutional and
statutory requirements, including 42 U.S.C. 2000bb et seq. USDA will
not, in the selection of recipients, discriminate for or against an
organization on the basis of the organization's religious character,
motives, or affiliation, or lack thereof, or on the basis of conduct
that would not be considered grounds to favor or disfavor a similarly
situated secular organization.
A faith-based organization that participates in this program will
retain its independence from the Government and may continue to carry
out its mission consistent with religious freedom and conscience
protections in Federal law. Religious accommodation may also be sought
under many of these religious freedom and conscience protection laws.
A faith-based organization may not use direct Federal financial
assistance from USDA to support or engage in any explicitly religious
activities except when consistent with the Establishment Clause of the
First Amendment and any other applicable requirements. An organization
receiving Federal financial assistance also may not, in providing
services funded by USDA, or in their outreach activities related to
such services, discriminate against a program beneficiary or
prospective program beneficiary on the basis of religion, a religious
belief, a refusal to hold a religious belief, or a refusal to attend or
participate in a religious practice.
Christine Mechtly,
Deputy Administrator, Rural Housing Service.
[FR Doc. 2025-14808 Filed 8-4-25; 8:45 am]
BILLING CODE 3410-XV-P
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</html>Indexed from Federal Register on August 5, 2025.
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.