RD Instruction 1900-B

Table of Contents

Page 1

PART 1900 - GENERAL

Subpart B - Adverse Decisions and Administrative Appeals

## [Table of Contents]{.underline}

[Sec]{.underline}. [Page]{.underline}

1900.51 General. 1

1900.52 Definitions. 2

\(a\) Appellant. 2

\(b\) Appellee. 2

\(c\) Hearing. 2A

\(d\) Decision maker. 2A

\(e\) Farmer program loans. 2A

\(f\) Hearing officer. 2A

\(g\) Review officer. 2A

\(h\) Record. 2A

\(i\) Official positions. 2A

\(j\) \"Directly and adversely affected.\" 3

\(k\) \"Representative.\" 3

\(l\) Interest credit. 3

1900.53 Adverse action procedures. 3

1900.54 National Appeals Staff. 5

1900.55 Appealable and nonappealable decisions. 6

1900.56 Appeal requests. 8

1900.57 Hearing rules. 9

1900.58 Review rules. 12

1900.59 Effect of appeal decision. 12

\(a\) Effective date. 12

\(b\) Finality. 12

\(c\) Timeliness. 13

\(d\) Implementation. 13

1900.60 Records. 13

1900.61 Review of hearing officer\'s decision on request of

the appropriate Assistant Administrator. 13

1900.62 - 1900.99 \[Reserved\] 14

1900.100 OMB control number. 14

(10-27-95) SPECIAL PN

RD Instruction 1900-B

Table of Contents

Page 2

Exhibit A - Reserved.

Exhibit B-1 - Letter for Notifying Applicants, Lenders, Holders

and Borrowers of Adverse Decisions Where the Decision

is Appealable.

Exhibit B-2 - Letter for Notifying Applicants, Lenders and Holders

and Borrowers of Unfavorable Decision Reached at the

Meeting.

Exhibit B-3 - Letter for Notifying Applicants, Lenders, Holders and

Borrowers of Adverse Decisions Where the Decision Involves

an Appraisal.

Exhibit B-4 - Letter for Notifying Applicants, Lenders, Holders

and Borrowers of Unfavorable Decision Reached After State

Director Review of an Appraisal.

Exhibit C - Letter for Notifying Applicants, Lenders, Holders,

and Borrowers of Adverse Decisions When Part or All of

the Decision is not Appealable.

Exhibit D - Hearing/Review Officer Designations.

## oOo

RD Instruction 1900-B

Part 1900 - GENERAL

Subpart B - Adverse Decisions and Administrative Appeals

§1900.51 [General]{.underline}.

\(a\) This subpart contains operating instructions to be used by the
Rural Development personnel to ensure that full and complete
consideration is given to affected members of the public when certain
adverse program administrative decisions are being made. It also sets
out the authority and procedures of the National Appeals Staff, which
gives administrative appeals and further review of these decisions. The
National Appeals Staff is an organization within Rural Development which
is independent from Rural Development State and local officials, and
from all other Rural Development officials making program administrative
decisions. The Rural Development official heading the National Appeals
Staff, the Director of Appeals, reports directly to the Administrator of
Rural Development.

\(b\) The provisions of this subpart apply to program administrative
decisions concerning all loans, loan guarantees, and grants made by
Rural Development. These include farmer program loans, housing loans
(both single- and multi-family), community and business program loans,
and all grant programs administered by Rural Development. Hearings for
single family housing loans sold to the Rural Housing Trust 1987-1 will
be conducted by the Trust\'s Master Servicer acting through its
subservicer. The borrower has the right to a final review by the
National Appeals Staff as defined in §1900.58 of this subpart except the
State Director cannot be the initial review officer. The initial review
will be conducted by the Trust\'s Master Servicer. The provisions of
this part also apply to appeals from decisions by Rural Development
under Subpart C of Part 1951 of this chapter to initiate administrative
offset. The provisions of this subpart do not apply to decisions
involving Nonprogram (NP) applicants, borrowers, or property except
denial of NP loan assistance involving the leaseback/buyback and
homestead protection provisions of Subpart S of Part 1951 of this
chapter. (Revised 11-12-93, SPECIAL PN.)

\(c\) The provisions of this subpart do not apply to any decisions made
by Rural Development other than those referred to in paragraph (b) of
this section, nor to decisions made by organizations outside Rural
Development even when those decisions are used as a basis for decisions
falling within paragraph (b) of this section. Examples of the first kind
of decision are Freedom of Information Act decisions to release or deny
the release of information sought by members of the public (appealable
under 7 CFR Part 1), decisions to purchase or not to purchase goods and
services from members of the public under the

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DISTRIBUTION: WSDC General

## 1

## (Revision 3)

(03-16-90) SPECIAL PN

RD Instruction 1900-B

§1900.51 (c) (Con.)

Federal contracting laws and regulations (which decisions are appealable
to the Department\'s Board of Contract Appeals under 7 CFR Part 24),
Rural Development multi-family housing tenant appeals covered by the
appeals provisions of 7 CFR Part 1944, suspension and debarment disputes
falling within the scope of 7 CFR Part 1944, and salary and tax refund
offsets. Examples of the second kind of decisions are decisions of the
Federal Crop Insurance Corporation concerning claimed crop losses (which
may determine whether the producer of the crop can or cannot qualify for
an Rural Development Emergency loan), decisions of the Soil Conservation
Service on whether particular farmland is or is not \"highly erodible\"
(which may determine whether an applicant is eligible for participation
in Rural Development loan programs), and decisions by State governmental
construction standards-setting agencies (which may determine whether
Rural Development will finance certain houses).

\(d\) The provisions of the Administrative Procedure Act, 5 U.S.C.
551-559, as amended, are not applicable to proceedings under this
subpart except for the requirements concerning public information. The
Equal Access to Justice Act, 5 U.S.C. 504, as amended, does not apply to
these proceedings.

\(e\) Assistance will not be discontinued pending the outcome of an
administrative appeal of a complete or partial adverse action. For
borrowers with farmer program loans, as defined in §1900.52 (e) of this
subpart, releases for essential family living and farm operating
expenses will not be terminated until the account has been accelerated.

\(f\) Administrative offsets initiated under Subpart C of Part 1951 of
this chapter will not be stayed pending the hearing and any further
review of the decision to initiate the offset. (Added 5-25-90, SPECIAL
PN.)

§1900.52 [Definitions]{.underline}.

\(a\) [Appellant]{.underline} means an applicant for Rural Development
assistance or an Rural Development borrower holder (only as to decisions
involving the repurchase of the holder\'s interest), or grantee, either
individual or organizational, that is directly and adversely affected by
an administrative decision by Rural Development. The appellant may also
be an applicant for or a recipient of a loan guarantee. As provided in
§1900.57 (m) of this subpart, there can be multiple appellants in
certain cases.

\(b\) [Appellee]{.underline} (in multi-party appeals only as provided in
§1900.57 (m) of this subpart) means a borrower or applicant who was
initially selected for leaseback/buyback or homestead protection under
§1951.911 of Subpart S of Part 1951 of this chapter, when another
nonselected applicant appeals the sale. (Revised 05-07-92,\
SPECIAL PN.)

## 2

## (Revision 3)

RD Instruction 1900-B

§1900.52 (Con.)

\(c\) [Hearing]{.underline}, as used in this subpart is an informal
proceeding at which an administrative appeal from an adverse decision is
heard.

\(d\) [Decision maker]{.underline} is the Rural Development official who
actually makes the specific decision but not the official who serves in
an advisory capacity in interpreting instructions, policies, or
technical items, or who performs routine supervision. For example, if an
Rural Development official reviews a preapplication from an organization
and directs a subordinate to include specific items in Form AD-622,
\"Notice of Preapplication Review Action,\" the official is the decision
maker. However, when the official or the designee serves only in an
advisory capacity and is not significantly involved in the decision, the
subordinate will be considered the decision maker. In cases where the
County Committee made the specific decision, any designated member of
the County Committee or the County Supervisor may represent the County
Committee in appeals under this subpart.

\(e\) [Farmer program loans]{.underline}, means Farm Ownership (FO),
Operating (OL), Soil and Water (SW), Recreation (RL), Emergency (EM),
Economic Emergency (EE), Individual Economic Opportunity (EO), Special
Livestock (SL), Softwood Timber (ST), loans and/or Rural housing loans
for farm Service buildings (RHF).

\(f\) [Hearing officer]{.underline} is the member of the National
Appeals Staff who conducts the administrative appeal hearing and has the
authority to uphold, reverse or modify the decisions of the decision
maker. See Exhibit D of this subpart for the designations of the hearing
officers.

\(g\) [Review officer]{.underline} is the member of the National Appeals
Staff or a State Director acting as review officer who has the authority
to uphold, reverse or modify decisions of the decision maker. See
Exhibit D of this subpart for the designations of review officers.

\(h\) [Record]{.underline} means the Rural Development's file, papers
filed by an appellant, audio tapes, written version of the transcript
(if any) of a hearing, and decisions made by Rural Development.

\(i\) [Official positions]{.underline} the terms County Supervisor and
District Director may vary in a few geographical areas. These terms will
also mean Assistant Area Loan Specialist and Area Loan Specialist,
respectively.

2A

(Revision 1)

(03-16-90) SPECIAL PN

RD Instruction 1900-B

§1900.52 (Con.)

\(j\) [\"Directly and adversely affected\"]{.underline} means having a
request for Rural Development assistance denied in whole or in part of
having Rural Development assistance reduced, cancelled or not reviewed.

\(k\) [\"Representative\"]{.underline} means an attorney or other person
authorized in writing by an appellant to act for the person in an
administrative appeal. Representatives will be presumed to retain their
authority to act for an appellant until the written authorization is
revoked in writing.

\(l\) [Interest credit]{.underline}. The terms "interest credit" and
"interest credit assistance," as they relate to Single Family Housing
(SFH), are interchangeable with the term "payment assistance." Payment
assistance is the generic term for the subsidy provided to eligible SFH
borrowers to reduce mortgage payments.\
(Added 10-27-95, SPECIAL PN.)

§1900.53 [Adverse action procedures]{.underline}.

\(a\) The following actions must take place before adverse program
administrative decisions are made. These steps are the responsibility of
Rural Development program decision makers.

\(1\) All documentation and calculations necessary to the determination
to initiate an adverse actions must be accurate, complete and included
within the administrative file.

\(2\) The specific reason or reasons for an intended adverse action
should be clearly explained to the applicant or borrower. Vague reasons
should be avoided. For example, avoid \"you lack repayment ability.\"
Calculations and documentation which demonstrate the lack of repayment
will be provided and explained to the borrower or applicant.

\(3\) All appellants are entitled to an opportunity for a separate
informal meeting with a decision maker before the appeal process is
begun. The decision maker must give the applicant or borrower notice of
his or her right to this meeting at a time no later than 10 days after
the decision to deny the application or to accelerate a borrower\'s loan
or loans or otherwise to terminate assistance.

\(4\) When the person or organization officials attend a meeting with
the decision maker and the meeting results in a resolution of the
matter, the official will send the person or

## 3

## (Revision 2)

(3-16-90) SPECIAL PN

RD Instruction 1900-B

§1900.53 (a)(4) (Con.)

organization a letter within 7 calendar days of the meeting, setting
forth the conclusions reached. If the meeting does not result in a
resolution of the matter, Exhibit B-2 of this subpart and Form RD
1900-1, \"Request for Appeal of Adverse Action,\" will be sent within 7
calendar days of the meeting to notify the person or organization of
their rights to an administrative appeal. If an applicant or borrower
who request a meeting fails to agree to a time and place or to attend,
the appellant is still entitled to a hearing.

\(b\) When an applicant or borrower who is also an applicant for Rural
Development services wishes to contest an appraisal of property value
(except for appraisals made in connection with farmer program primary
and preservation loan servicing), the applicant or borrower must be
advised that he or she must request review of the appraisal by the State
Director of the Rural Development before the appeal. Exhibit B-3 of this
subpart will be used to notify the appellant. If an applicant or
borrower seeks such a review, the time for requesting an appeal will be
extended until after the State Director has acted on the review request.
The State Director will review each such request and, when in his or her
sole discretion it is deemed appropriate, may send a representative to
make an on-site review. If this does not result in a resolution of the
matter, Exhibit B-4 of this subpart and Form RD 1900-1 will be sent to
the appellants to notify them of their appeal rights. (Revised 04-30-92,
SPECIAL PN.)

\(c\) Appraisals involving farmer program primary and preservation loan
servicing may be appealed directly to the Area Supervisor, National
Appeals Staff, without prior review by the State Director. The appellant
bears the burden of showing why the appraisal is in error. The appellant
may submit an independent appraisal at his/her cost, from a qualified
appraiser in accordance with §1951.909(i) of subpart S of part 1951 of
this chapter. The appraisal must conform to Rural Development appraisal
regulations applicable to the loan program. If the two appraisal values
vary by no more than five percent, the borrower must select which of the
two appraisals he or she wants to use in considering the servicing
request. The appraisal the borrower selects will be the final appraisal
and there will be no appeal. Appraisals that have been negotiated in
accordance with paragraph 1951.909(i) of subpart S of part 1951 of this
chapter may not be appealed. The borrower, however, will have the
opportunity to appeal issues other than appraisal issues after
negotiation of the appraisal. (Added 04-30-92, SPECIAL PN.)

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## (Revision 2)

##  

§1900.53 (Con.) RD Instruction 1900-B

\(d\) If an applicant, guaranteed lender, a holder, borrower or grantee
is directly and adversely affected by a decision covered by this
subpart, the decision maker will inform that person or organization by
letter of the decision within 10 calendar days of the decision.
(Renumbered 04-30-92, SPECIAL PN.)

\(1\) Letters, as indicated in Exhibits B-1, B-2 and Form RD 1900-1 or
Exhibit C of this subpart, as appropriate, will be used to notify the
applicant, borrower or grantee. The notice will advise how to request an
administrative appeal and to obtain the record.

\(2\) When a program administrative decision is required by a clear and
objective statutory or regulatory reason listed in §1900.55 of this
subpart as being nonappealable, the decision maker will notify the
applicant or borrower of such reason and that the decision is not
appealable by notice to the applicant or borrower given with Exhibit C
of this subpart.

§1900.54 [National Appeals Staff]{.underline}.

\(a\) The National Appeals Staff consists of a Director of Appeals, Area
Supervisors, Hearing Officers, Review Officers, and such other
subordinate officers as may from time to time be necessary to hear and
determine administrative appeals from decisions made appealable under
this subpart.

\(b\) Appeal hearings will ordinarily be face-to-face hearing, held in
the State of the appellant\'s residence, except in the following
circumstances:

\(1\) With the consent of the appellant, hearings may be held in a place
outside his or her State of residence when more convenient to the
appellant, the hearing officer and the program officials who must attend
the hearing. (Revised 04-30-92, SPECIAL PN.)

\(2\) Appeals originating in Samoa, Guam, remote areas of Alaska, and
the Western Pacific areas may be acted upon without a hearing when, in
the discretion of the Area Supervisor, travel time and expense make such
a hearing impracticable. In such cases, the Hearing Officer will allow a
reasonable period of time for the appellant to examine or obtain copies
of relevant documents and will make such other arrangements as are
necessary to determine the appeal expeditiously and fairly. A telephone
conference call may also be used as set forth in paragraph (b)(3).

## 5

## (Revision 1)

## 

(3-16-90) SPECIAL PN

RD Instruction 1900-B

§1900.54 (b) (Con.)

\(3\) At the request of the appellant, the Hearing Officer, or the
program officials who must appear at a hearing, the Area Supervisor may
authorize use of a telephone conference call or calls to conduct a
hearing. The Area Supervisor will solicit and consider the views of all
parties before using this authority, and will not use it when any party
other than the appellant shows that a face-to-face hearing is necessary
to resolve issues of credibility or for other good reasons, or when the
appellant, for any reason, prefers a face-to-face hearing.

§1900.55 [Appealable and nonappealable decisions]{.underline}.

\(a\) Program administrative decisions of the Rural Development that
directly and adversely affect program applicants, borrowers or grantees
are appealable to the National Appeals Staff under the provisions of
this subpart. All matters concerning the application of the law and
applicable regulations to the facts of the matter may be considered. The
National Appeals Staff and its officers do not, however, have the
authority to change or waive applicable laws or regulations. Program
administrative decisions based on such clear and objective statutory or
regulatory requirements are therefore not appealable. However, such
decisions are reviewable and Exhibit C of this subpart will be used in
these cases. Examples of nonappealable decisions include:

\(1\) Denial of Section 504 grant to an applicant less than 62 years of
age.

\(2\) Denial of a loan and/or grant to an individual or organization in
an ineligible area.

\(3\) Denial of a loan and/or grant to a type of organization not
identified as an eligible applicant by the regulations.

\(4\) Denial of a loan because an application for an Emergency loan was
not filed before a prescribed termination date.

\(5\) Denial of loan because of confirmed income that is above Rural
Development published limits.

\(6\) Interest credit reduction that is the result of a confirmed income
increase.

\(7\) A determination of ineligibility for Emergency loans based on
confirmation or verification by the Agricultural Stabilization and

## 6

## (Revision 1) 

RD Instruction 1900-B

§ 1900.55(a)(7) (Con.)

Conservation Service (ASCS) or the Federal Crop Insurance Corporation
(FCIC) that the applicant did not have the required production losses of
30 percent or more.

\(8\) Denial of compensation for construction defects when it has been
determined that the contractor is willing and able to correct the
deficiencies.

\(9\) Requirements and conditions designated by law to be developed by
agencies other than Rural Development. They include, but are not limited
to: Davis-Bacon wage rates; flood plain determination; archaeological
and historical areas preservation requirements, and designation of areas
that have been determined to be inhabited by endangered species.

\(10\) Applicable state development standards for construction and other
development. An appeal may only be made when the appellant claims Rural
Development is misapplying the written standards.

\(11\) Interest rates as set forth in Rural Development procedure,
except denial of limited resource rates, or an application of an
incorrect interest rate.

\(12\) Denial of assistance (including a subordination request or
transfer and assumption) because of a conviction under Federal or State
law of planting, cultivating, growing, producing, harvesting, or storing
a controlled substance. \"Controlled substance\" is defined in Exhibit C
of Subpart A of Part 1941 of this chapter (available in any Rural
Development office).\
(Renumbered 02-24-05, SPECIAL PN.)

\(13\) State Director\'s refusal to request exception authority as
provided for in various Rural Development program regulations.

(Renumbered 02-24-05, SPECIAL PN.)

\(14\) Denial of assistance due to lack of funds or authority to
guarantee. (Renumbered 02-24-05, SPECIAL PN.)

\(15\) Negotiated appraisals involving primary and preservation loan
service programs for new applications. A new application is defined in §
1951.906 of Subpart S of Part 1951 of this chapter. Refer to\
§ 1900.53(c) of this subpart for borrower\'s negotiation rights.
(Renumbered 02-24-05, SPECIAL PN.)

## 7

## (Revision 3

(3-16-90) SPECIAL PN

RD Instruction 1900-B

§ 1900.55(a)(16) (Con.)

\(16\) The County Committee\'s random selection by lot of an applicant
for the purchase of suitable farm inventory property. However, the
elimination of an applicant for the purchase of suitable inventory
property from the priority categories is appealable. (Renumbered
02-24-05, SPECIAL PN.)

\(b\) Appraisals of property value including chattels, may be appealed
through the hearing and review process provided for in this subpart only
after review by the State Director as provided in § 1900.53(b) of this
subpart. Appraisals involving farmer program primary and preservation
loan servicing may be appealed, as provided for in § 1900.53(c), without
prior review by the State Director. (Revised 04-30-92, SPECIAL PN.)

\(c\) In cases where denial of assistance is based upon both appealable
and nonappealable actions, the denial of assistance is not appealable.
Exhibit C of this subpart will be used in these cases and will include
all reasons for the decision.

\(d\) Appeals from applicants for, or borrowers of, Farmer Programs
loans or loans to Indian Tribes and Tribal corporations who are denied
assistance based on reasons relating to highly erodible land, wetland,
or converted wetland (see Exhibit M of Subpart G of Part 1940 of this
chapter for applicable Rural Development requirements) will be handled
as follows: Appeals questioning either the presence of a wetland,
converted wetland, or highly erodible land on a particular property or
application to a property for the exemptions identified in paragraph 11
b and c of Exhibit M of Subpart G of Part 1940 of this chapter must be
filed directly with the USDA Rural Development making the determination
in accordance with its administrative appeal procedures. If the denial
of assistance involves an adverse decision based on determinations made
both by Rural Development and another USDA Rural Development, the appeal
will be handled by both agencies in two separate appeals which as much
as possible, should be handled concurrently. See §12.12 of Subpart A of
Part 12 of Subtitle A (Attachment 1 of Exhibit M of Subpart G of Part
1940 of this chapter which is available in any Rural Development
office).

§ 1900.56 Appeal requests.

\(a\) When an applicant appeals a decision and requests a hearing, the
appeal will be handled as follows:

## 8

## (Revision 3) 

§1900.56 (a) (Con.) RD Instruction 1900-B

\(1\) Upon receipt of the request, the Area Supervisor, National Appeals
Staff will verify whether the appeal was submitted within the authorized
period. If the appeal was not submitted within the authorized time
period, appeal rights are terminated unless the delay of the appeal was
beyond the appellant\'s control or for other good reasons as determined
by the Area Supervisor.

\(2\) If possible, the borrower should submit a copy of the independent
appraisal to the initial decision maker and the hearing officer prior to
the appeal hearing. The appellant\'s case file including the Rural
Development appraisal will be made available to the appellant or his
representative at the Rural Development decision maker\'s office for 10
working days following the receipt of a request for appeal. If the
appellant has made a request to inspect or to receive copies of Rural
Development material concerning the case including any Rural Development
appraisal, the material will be made available to the appellant or the
appellant\'s representative at the Rural Development decision maker\'s
office as soon as possible, but no later than 10 working days following
the receipt of the request for the material. A written request from the
appellant will not be required. Requests for information of a
confidential nature exempt from disclosure under §2015.204 of Rural
Development Instruction 2015-E, (available in any Rural Development
office) will be handled in accordance with that Instruction. An Rural
Development employee will insure that no material is destroyed or
removed from the file.

(Revised 04-30-92, SPECIAL PN.)

\(3\) If, upon review of the file, the hearing officer determines that
the decision will be reversed, he or she will notify all parties of the
determination and of the actions to be taken. Otherwise, the hearing
officer will arrange for a hearing to be held as soon as possible, but
normally within 45 calendar days of the receipt of the request for a
hearing.

\(4\) An appeal hearing as a result of a denial of a borrower\'s request
for release of normal income security must be held within 20 days of
such request unless the borrower agrees to a longer time.

\(5\) The hearing will be held at a location convenient to the
appellant, decision maker, and hearing officer. The hearing must be held
in the state of residence of the appellant unless the appellant agrees
to another location. If no place can be agreed on, the hearing officer
will select the location within the appellant\'s state of residence. The
location of the hearing will normally be within 100 miles of the
residence of the appellant.

## 8A

## (Added 04-30-92, SPECIAL PN)

(3-16-90) SPECIAL PN

RD Instruction 1900-B

§1900.56 (a) (Con.)

\(6\) When the appellant or appellant\'s representative or counsel,
without reasonable cause, fails to appear at the hearing, the
appellant\'s appeal will be considered concluded. If the appellant\'s
failure to appear is for reasons beyond the control of the appellant or
a request for postponement is with reasonable cause, the hearing officer
will reschedule the hearing at a time convenient to all interested
parties, but usually not later than 15 calendar days after the initially
scheduled date.

\(7\) At any time before the scheduled hearing, the appellant may waive
the opportunity for a hearing and, instead, request that the hearing
officer make a decision based on the file, any written statements or
evidence the appellant may submit and any other information the hearing
officer deems necessary.

\(8\) The hearing will ordinarily be based on the material before the
decision maker at the time the decision was made and on the reasons for
the adverse decision set out in the decision letter. If any changes of
circumstances or other occurrences material to the decision arise after
the appeal has been requested, the decision maker must immediately
advise the hearing officer (or, if one has not been assigned, the area
supervisor) and the appellant. The hearing officer or area supervisor
will, in such event, delay the hearing, return the decisional file to
the decision maker for reconsideration, or take such other action as is
appropriate.

## 8B

## (Added 04-30-92, SPECIAL PN) 

RD Instruction 1900-B

§1900.57 [Hearing rules]{.underline}.

\(a\) The hearing will be an informal proceeding at which the appellant
has the responsibility of showing why the initial decision should be
modified or reversed. To do so the appellant may provide any information
or witnesses the appellant believes should be considered in reaching a
proper decision. The appellant may present evidence, witnesses (when
appropriate, Rural Development witnesses requested by the appellant will
be made available at the hearing) and arguments in support of
appellant\'s appeal, controvert evidence relied on by Rural Development,
and may question all witnesses. Any evidence may be received by the
hearing officer without regard to whether that evidence could be
employed in judicial proceedings.

\(b\) The decision maker (or successor) or informed delegate (who must
be one who participated in the decision making process) will be at the
hearing and will present information if necessary. Any other witnesses
or Rural Development personnel the decision maker thinks necessary to
support the initial decision will be at the hearing to present evidence.

\(c\) During the hearing, the hearing officer may request additional
witnesses to appear or request further information if the hearing
officer considers this necessary to reach a proper decision. Information
presented by witnesses will be limited to denial issues only.

\(d\) Recording the hearing:

\(1\) The hearing officer will tape record hearings. With prior
permission of the Area Supervisor, the hearing officer may arrange to
also have the hearing recorded by some other means.

\(i\) Appellants may tape record the proceedings at their own expense.
Appellants must state when the taping begins.

\(ii\) At the time the decision is rendered and upon request, the record
will be made available to the appellant as set out in the hearing
officer\'s decision letter. Also upon request, a transcript of the
hearing will be provided for a fee approximately equal to the
government\'s cost of having the transcript made. The appellant may
request and receive a copy of the hearing tape at no cost. The appellant
may also make their own arrangements, independent of Rural Development,
for a transcript of the hearing.

\(2\) File documents and other written materials used in the hearing
will be included as part of the record.

\(e\) For good cause, the hearing officer will, at the request of any
party to an appeal, continue the hearing to future time. The length of
the continuance will be at the hearing officer\'s discretion.

## 9

(3-16-90) SPECIAL PN

RD Instruction 1900-B

§1900.57 (Con.)

\(f\) The decision of the hearing officer shall be based on facts
presented at the hearing or in writing, rebuttal by appellant and
decision maker of new evidence, additional information requested by the
hearing officer, appropriate Rural Development files, applicable
statutes and regulations, and the hearing officer\'s general knowledge
of Rural Development program functions.

\(g\) If an appellant waives the opportunity for a hearing and the
hearing officer reviews any information the appellant or decision maker
has not previously reviewed, the parties to the appeal will be advised
by the hearing officer of the additional information and be allowed an
opportunity to review it and respond accordingly. Usually, the total
time given the appellant or decision maker to review and respond to this
additional information will not exceed 15 calendar days.

\(h\) The hearing officer will render a decision within 30 calendar days
of the date set for the hearing, unless this would not allow sufficient
time to consider the appellant\'s response to any additional
information. For appeals involving farmer program primary loan servicing
programs, a decision will be made within 45 days after the receipt of
the appeal request.

\(i\) If the initial decision is reversed, the hearing officer will
inform the appellant, original decision maker, the appropriate Assistant
Administrator, and any other official servicing the account, by letter
of the decision, the reason for it, and what action will be taken.

\(j\) If the initial decision is upheld or modified but not reversed,
the hearing officer will inform the appellant by letter of the decision
giving specific reasons, with a copy to the decision maker, the
appropriate Assistant Administrator and any other official servicing the
account. Normally the hearing officer\'s decision letter will be similar
to Rural Development Guide Letter 1900-B-1. For appeals involving the
denial of farmer program primary loan servicing programs, the hearing
officer\'s decision letter will be sent by certified mail to the
appellant with a return receipt to the initial decision maker.

\(k\) If the appellant does not request in writing a review of the
hearing officer\'s decision within the 30 calendar day period provided
in the letter, the appeal will be considered concluded.

\(l\) For appeals involving Farmer Programs primary and preservation
loan servicing, an appeal may include a request by the borrower for an
independent appraisal of any property involved in the decision. On such
request the hearing officer shall present the borrower with a list of at
least three appraisers approved by the County Supervisor, from which the
borrower shall select an appraiser to conduct the appraisal, the cost of
which shall be borne by the borrower. The results of such appraisal
shall be considered in any final determination concerning the loan. A
copy of any appraisal shall be provided to the borrower. If an
independent appraisal is requested, the 45-day decision deadline
referred to in paragraph (h) of this section is extended as necessary to
allow completion of the appraisal.

## 10 

RD Instruction 1900-B

§1900.57 (Con.)

\(m\) [Multi-party hearings]{.underline}.

\(1\) Appeals arising out of County Committee selection for
leaseback/buyback under §1951.911 (a)(2)(ii) of Subpart S of Part 1951
of this chapter will be conducted in multi-party hearings. All
applicants considered by the County Committee, but denied
leaseback/buyback, will be made appellants in the appeal. The successful
applicant will be made an appellee to the appeal. Any applicant electing
not to participate in the appeal waives the right to appeal the original
decision.

\(2\) Appeals arising out of selection for homestead protection under
§1951.911 (b) of Subpart S of Part 1951 of this chapter will be
conducted in multi-party hearings to the extent that there is more than
one applicant for homestead protection in connection with any parcel of
property subject to homestead protection. All applicants considered for
but denied homestead protection who appeal the selection will be made
appellants in the appeal. Any applicant electing not to participate in
the appeal waives the right to appeal the original decision.

\(3\) To comply with the Freedom of Information Act, the Privacy Act,
and the rights of the appellants and appellee, multi-party appeal
hearings will be conducted as consecutively scheduled individual
hearings. At each part of the hearing, only the Rural Development
decision maker, the hearing officer, and appellant or appellee, as
appropriate, will be present. Requests for transcripts and copies of the
appeal hearing tape will be limited to only the part of the hearing at
which the appellants or appellee was present, to protect the Privacy Act
rights of all parties to the hearing. The hearing rules of §1900.57 (a)
through (l) not inconsistent with this paragraph will otherwise govern
multi-party hearings. (Renumbered 04-30-92, SPECIAL PN.)

\(n\) [Farmer Programs inventory property appeals]{.underline}. All
applicants who are not placed in that priority category, that the
purchaser will be selected from, may appeal their exclusion from the
priority category. All appeals will be concluded prior to the County
Committee selecting the purchaser. (Revised 05-07-92, SPECIAL PN.)

## 11

## (Revision 2)

(3-16-90) SPECIAL PN

RD Instruction 1900-B

§1900.58 [Review rules]{.underline}.

If the appellant requests a review:

\(a\) The review officer may obtain a copy of the transcript of the
hearing if one was arranged for by the appellant.

\(b\) The review officer will review the certified record, applicable
law and regulations, any additional written information furnished by the
appellant including appellant\'s comments on the transcript, and any
additional information as the review officer deems necessary. However,
if the review officer reviews any information the appellant has not
previously reviewed, the appellant will be advised by the review officer
of the additional information and be allowed an opportunity to review it
and respond accordingly. Usually, the total time given the appellant to
review and respond to this additional information will not exceed 15
calendar days. Normally, the review officer will render a decision
within 45 calendar days of receipt of a review request from the
appellant.

\(c\) The review officer\'s decision will be based on written facts
presented for the review, the certified record, additional information
requested by the review officer, appellant\'s or decision maker\'s
written response to the additional information review by the review
officer, applicable statutes and regulations, and the review officer\'s
general knowledge of the Rural Development program functions.

\(d\) The appellant will be informed of the final decision by letter. A
copy will be sent to the decision maker, the hearing officer and any
other official servicing the account.

If the State Director is the review officer, the appellant will be given
further review rights to the Director of Appeals. The appellant will be
notified as set forth in §1900.57 (j) of this subpart. For appeals
involving farmer program primary loan servicing, the review officer\'s
decision letter will be sent by certified mail to the appellant with a
return receipt to the initial decision maker.

§1900.59 [Effect of appeal decision]{.underline}.

\(a\) [Effective date]{.underline}. When an appeal is concluded, the
effective date of the action to be taken will be the date of the initial
decision from which the appeal was taken. Foreclosure action will not be
pursued until time of appeal has expired or the appeal is terminated or
resolved. Regulations in effect on the effective date will govern the
action. Any loan made as the result of an appeal will bear interest at
the lower of the interest rates in effect for that type of loan on the
date of actual loan approval or loan closing.

\(b\) [Finality]{.underline}. A decision made when an appeal is
concluded will be administratively final.

## 12

## (Revision 2) 

§1900.59 (Con.) RD Instruction 1900-B

\(c\) [Timeliness]{.underline}. Whenever an adverse decision concerning
a loan or loan guarantee (except for RH, RRH, RCH, RHS, and LH loans and
grants) is appealed and the hearing officer or review officer reverses
or modifies the initial decision, the decision maker shall resume
processing of the application and notify the applicant of this within 15
days after the decision maker is notified of the decision of the hearing
or review officer. The decision maker will inform the applicant of any
further information needed.

\(d\) [Implementation]{.underline}. Except as noted in paragraph (c) of
this section and §1900.61 of this subpart, the decision maker shall,
upon having a case returned pursuant to the decision of a hearing
officer, State Director or Director, National Appeals Staff, implement
the appeal decision reversing the adverse decision within 60 days of
receiving the decision. For the purpose of this section,
\"implementation\" means the next step in a loan processing or loan
servicing action, required by Rural Development regulations, that would
occur had no adverse decision been made and appeal filed. (Added
04-30-92, SPECIAL PN.)

§1900.60 [Records]{.underline}.

Appeal record will be maintained in the applicant\'s or borrower\'s case
folder.

§1900.61 [Review of hearing officer\'s decision on request of the
appropriate Assistant Administrator]{.underline}.

\(a\) In extraordinary circumstances, when the decision of a hearing
officer is in conflict with applicable Rural Development regulations or
law or the decision will result in unauthorized assistance being granted
to an appellant, the appropriate Assistant Administrator may request
review of the decision of a hearing officer by the Director, National
Appeals Staff.

\(b\) Review under this section may be requested only by the appropriate
Assistant Administrator and any request may be made within 9 working
days after receipt of the hearing officer\'s decision to the appellant
and the decision maker. It is the responsibility of the decision maker
and the State Director to insure that a request for review under this
section is received by the Assistant Administrator in sufficient time to
allow such a request to be forwarded to the National Appeals Staff by
the Assistant Administrator within 9 working days stated above. Request
by the Assistant Administrator shall be made to the Director, National
Appeals Staff by telefax and a copy of the request must be mailed (or
delivered) to the appellant. The request must explain why the decision
falls within the standards specified in paragraph (a) of this section.

## 13

## (Revision 1)

(3-16-90) SPECIAL PN

RD Instruction 1900-B

§1900.61 (Con.)

\(c\) The Director, National Appeals Staff, upon receiving such a
request, has three working days to determine if the request has merit.
If the Director, National Appeals Staff, determines the request has
merit, a new hearing will be required at which the appellant may offer
rebuttal to the Rural Development\'s claim.

\(d\) If the Director, National Appeals Staff determines the request is
unsubstantiated, the State Director and the appellant will be so
notified and the decision of the hearing officer will be implemented
without further delay.

§§1900.62 - 1900.99 \[Reserved\]

§1900.100 [OMB control number]{.underline}.

Collection of information requirements contained in this subpart have
been approved by the Office of Management and Budget and have been
assigned OMB control number 0575-0129.

Attachments: Exhibits A \[Reserved\], B-1, B-2, B-3, B-4, C, and D.

## o0o

## 14

## (Revision 1) 

RD Instruction 1900-B

Exhibit B-l

## LETTER FOR NOTIFYING APPLICANTS, LENDERS, HOLDERS AND BORROWERS 

## OF ADVERSE DECISIONS WHERE THE DECISION IS APPEALABLE

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## UNITED STATES DEPARTMENT OF AGRICULTURE

## Rural Development

## (Insert Address)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date

Dear \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

After careful consideration, we \[were unable to take favorable action
on your application/request for Rural Development services\] \[are
canceling/reducing the assistance you are presently receiving\]. The
specific reasons for our decision are:

(Insert here the adverse decision and all of the specific reasons for
the adverse action.)

If you have any questions concerning the decision or the facts used in
making our decision and desire further explanation, you may call or
write the County Office (insert phone number) to request a meeting with
(this office) (The County Committee) within 15 calendar days of the date
of this letter. You should present any new information or evidence along
with possible alternatives for our consideration. You may also bring a
representative \[or legal counsel\] with you. You also have the right to
appeal this decision to a hearing officer in lieu of, or in addition to,
a meeting with \[this office\] \[the County Committee\]. See attachment
for your appeal rights. (Attach For RD 1900-1) (For guaranteed loans,
except loss claims, the applicant and lender must jointly request a
meeting and/or appeal)

If you do not wish a meeting and as outlined above, wish to appeal a
request for a hearing must be sent to the Area Supervisor, National
Appeals Staff \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, postmarked no later than
\_\_\_\_\_\_\_\_\_\_\_\_,\
(address) (month)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

(date)

(insert date 30 days from date of letter.)

The Federal Equal Credit Opportunity Act prohibits creditors from
discriminating against credit applicants on the basis of race, color,
religion, national origin, sex, marital status, handicap, or age
(provided

that the applicant has the capacity to enter into a binding contract),
because all or part of the applicant\'s income derives from any public
assistance program, or because the applicant has in good faith exercised
any right under the Consumer Credit Protection Act. The Federal Rural
Development that administers

(3-16-90) SPECIAL PN

compliance with the law concerning this creditor is the Federal Trade
Commission, Equal Credit Opportunity, Washington, D.C. 20580.

Sincerely,

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Decision Maker)

(County Supervisor may sign for County Committee)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Title)

RD Instruction 1900-B

Exhibit B-2

## LETTER FOR NOTIFYING APPLICANTS, LENDERS AND HOLDERS AND BORROWERS OF

## UNFAVORABLE DECISION REACHED AT THE MEETING

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## UNITED STATES DEPARTMENT OF AGRICULTURE

## Rural Development

## (Insert Address)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date

Dear \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

We appreciated the opportunity to review the facts relative to \[your
application/request for Rural Development services\] \[the assistance
you are presently receiving\]. We regret that our meeting with you did
not result in a satisfactory conclusion.

(Insert here the adverse decision and all the specific reasons for the
adverse action).

See attachment for your appeal rights. (Attach Form RD 1900-1) (For
guaranteed loans, except loss claims, the applicant and lender must
jointly request an appeal.)

A request for a hearing must be sent to the Area Supervisor, National
Appeals Staff\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, postmarked no later
than \_\_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_

(address) (month) (date)

(insert date 30 days from date of letter.)

The Federal Equal Credit Opportunity Act prohibits creditors from
discriminating against credit applicants on the basis of race, color,
religion, national origin, sex, marital status, handicap, or age
(provided that the applicant has the capacity to enter into a binding
contract), because all or part of the applicant\'s income derives from
any public assistance program, or because the applicant has in good
faith exercised any right under the Consumer Credit Protection Act. The
Federal Rural Development that administers compliance with the law
concerning this creditor is the Federal Trade Commission, Equal Credit
Opportunity, Washington, D.C. 20580.

Sincerely,

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Decision Maker)

(County Supervisor may sign for County Committee)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Title)

(3-16-90) SPECIAL PN

RD Instruction 1900-B

Exhibit B-3

## LETTER FOR NOTIFYING APPLICANTS, LENDER, HOLDERS AND BORROWERS

## OF ADVERSE DECISIONS WHERE THE DECISION INVOLVES AN

## APPRAISAL (NOT TO BE USED IN CASES INVOLVING FARMER

## PROGRAM PRIMARY OR PRESERVATION LOAN SERVICING ACTIONS)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## UNITED STATES DEPARTMENT OF AGRICULTURE

## Rural Development

## (Insert Address)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date

Dear \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

After careful consideration, we \[were unable to take favorable action
on your application/request for Rural Development services\] \[are
canceling/reducing the assistance you are presently receiving\]. The
specific reasons for our decision are:

(Insert here the adverse decision and all of the

specific reasons for the adverse action.)

If you have any questions concerning the decision or the facts used in
making our decision and desire further explanation, you may call or
write the County Office (insert phone number) to request a meeting with
(this office) (The County Committee) within 15 calendar days of the date
of this letter. You should present any new information or evidence along
with possible alternatives for our consideration. You may also bring a
representative or legal counsel with you.

If you do not wish to have a meeting as provides above, you may contest
the appraisal of the property value. In order to contest the appraisal
you must first request review of the appraisal by the Rural Development
State Director. Your request for review by the State Director should be
made through our office. You will be advised of the results of the State
Director\'s review. If after the State Director\'s review you still
disagree with the appraisal you may request a hearing. When you receive
the results of the State Director\'s review you will be advised on how
to ask for a hearing. Your request for review of the appraisal must be
postmarked no later than \_\_\_\_\_\_\_\_\_\_\_\_\_,
\_\_\_\_\_\_\_\_\_\_\_\_ insert date 15 days from date of letter).

(month) (Date)

The Federal Equal Credit Opportunity Act prohibits creditors from
discriminating against credit applicants on the basis of race, color,

(3-16-90) SPECIAL PN

RD Instruction 1900-B

Exhibit B-3

Page 2

religion, national origin, sex, marital status, handicap, or age
(provided that the applicant has the capacity to enter into a binding
contract), because all or part of the applicant\'s income derives from
any public assistance program, or because the applicant has in good
faith exercised any right under the Consumer Credit Protection Act. The
Federal Rural Development that administers compliance with the law
concerning this creditor is the Federal Trade Commission, Equal Credit
Opportunity, Washington, D.C. 20580.

Sincerely,

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Decision Maker)

(County Supervisor may sign for County Committee)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Title)

## oOo 

RD Instruction 1900-B

Exhibit B-4

## LETTER FOR NOTIFYING APPLICANTS, LENDERS, HOLDERS AND

## BORROWERS OF UNFAVORABLE DECISION REACHED AFTER

## STATE DIRECTOR REVIEW OF AN APPRAISAL

## (NOT TO BE USED IN CASES INVOLVING FARMER PROGRAM

## PRIMARY AND PRESERVATION LOAN SERVICING ACTIONS)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## UNITED STATES DEPARTMENT OF AGRICULTURE

## Rural Development

## (Insert Address)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date

Dear \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

At your request, we have reviewed the appraisal of the property you wish
to purchase. We have determined that the value estimate of the property
is both supportable and defensible (as required by Rural Development
regulations and appraisal industry standards) and, therefore,
acceptable.

You have the right to appeal this decision. You must show why the
appraisal is in error. You may submit an independent appraisal, at your
expense, from a qualified appraiser who is a designated member of a
national appraisal society or an equivalent organization requiring
appraisal education, testing and experience. The appraisal must conform
to Rural Development Appraisal regulations applicable to the loan
program.

See attachment for your appeal rights. (Attach Form RD 1900-1)

A request for a hearing, if desired, must be sent to the Area
Supervisor, National Appeals Staff
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, postmarked no later

(address)

than\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_\_\_\_

(month) (date)

(insert date 30 days from date of letter)

The Federal Equal Credit Opportunity Act prohibits creditors from
discriminating against credit applicants on the basis of race, color,
religion, national origin, sex, marital status, handicap, or age
(Provided that the applicant has the capacity to enter into a binding
contract), because all or part of the applicant\'s income derives from
any public assistance program, or because the applicant has in good
faith exercised any right under the Consumer Credit Protection Act. The
Federal Rural Development that administers compliance with the law
concerning this creditor is the Federal Trade Commission, Equal Credit
Opportunity, Washington, D.C. 20580.

Sincerely,

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(State Director)

(3-16-90) SPECIAL PN

RD Instruction 1900-B

Exhibit C

## LETTER FOR NOTIFYING APPLICANTS, LENDERS, HOLDERS, AND BORROWERS OF ADVERSE DECISIONS WHEN PART OR ALL OF THE DECISION IS NOT APPEALABLE

## \[Not used in connection with decisions related to

## Nonprogram applicants, borrowers, or property\]

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## UNITED STATES DEPARTMENT OF AGRICULTURE

## Farmers Homes Administration

## (Insert Address)

## 

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Date)

Dear \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

After careful consideration we \[were unable to take favorable action on
your application/request for Rural Development services\] \[are
canceling/reducing the assistance you are presently receiving\].

(Insert and number all of the [specific]{.underline} reasons for the
adverse action. Examples of nonappealable reasons are listed in §1900.55
(a).)

If you have any questions about this action, we would like the
opportunity to explain in detail why your request has not been approved,
explain any possible alternative, or provide any other information you
would like. You may bring any additional information you may have and
you may bring a representative or counsel if you wish. Please call
[(telephone number)]{.underline} for an appointment.

Applicants and borrowers generally have a right to appeal adverse
decisions, but Rural Development decisions based on certain reasons are
not appealable. We have determined that the reason(s) numbered
\_\_\_\_\_\_\_ for the decision in this case make(s) the decision not
appealable under Rural Development regulations. You may, however, write
the Area Supervisor, National Appeals Staff (insert address) for a
review of the accuracy of our finding that the decision is not
appealable, postmarked no later than \_\_\_\_\_\_\_\_\_\_ (insert date
30 days from date of letter). (date)

The Federal Equal Credit Opportunity Act prohibits creditors from
discriminating against credit applicants on the basis of race, color,
religion, national origin, sex, marital status, handicap, or age
(provided that the applicant has the capacity to enter into a binding
contract), because all or part of the applicant\'s income derives from
any public

(11-12-93) SPECIAL PN

RD Instruction 1900-B

Exhibit C

Page 2

assistance program, or because the applicant has in good faith exercised
any right under the Consumer Credit Protection Act. The Federal Rural
Development that administers compliance with the law concerning this
creditor is the Federal Trade Commission, Equal Credit Opportunity,
Washington, D.C. 20580.

Sincerely,

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Decision Maker)

(County Supervisor may sign for County Committee)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Title)

## oOo 

RD Instruction 1900-B

Exhibit D

Page 1

HEARING/REVIEW OFFICER DESIGNATIONS

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DECISION MAKER HEARING OFFICER REVIEW OFFICER

OR DECISION

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

County Supervisor National Appeals Staff State Director and/or

Hearing Officer Director, National\
Appeals Staff

County Committee National Appeals Staff State Director and/or

Hearing Officer Director, National\
Appeals Staff

\*District Director National Appeals Staff \*\*State Director and/or

\*State Program Chief Hearing Officer Director, National

\*District Specialist Appeals Staff

\*State Director As appointed by Director, National

\*Regional Director Director, National Appeals Staff

Appeals Staff

Division Director or As appointed by Director, National

Assistant Administrator Director, National Appeals Staff

Appeals Staff

Assistant Administrator As appointed by Director, National

Director, National Appeals Staff

Appeals Staff

Deputy or Associate As appointed by Director, National

Administrator Director, National Appeals Staff\
Appeals Staff

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\*Decision Maker for Rural Development Administration (RDA) cases for\
Regional Office Operations.

\*\*Review officer will be the Regional Director and/or the Director,\
National Appeals Staff for RDA cases.

(01-13-93) PN 198

RD Instruction 1900-B

Exhibit D

Page 2

Notes:

1\. District Director also means Assistant District Director or District
Loan Specialist.

2\. County Supervisor also means Assistant County Supervisor with loan
approval authority.

3\. The Director of the National Appeals Staff may designate a staff
member to conduct a hearing or review. When the hearing/review is
completed, the designee will send the complete case file, hearing notes,
tape recordings, and a recommended decision to the Director for a final
decision. The Director may, for individual cases, delegate final
decision authority to a designee.

4\. For decisions not directly covered above, advice should be sought
from the Director of the National Appeals Staff.

5\. An appellant may elect to have an appeal reviewed by the State
Director, or the Director of the National Appeals Staff. The decision of
the State Director will be subject to further review by the Director of
the National Appeals Staff upon request of the appellant.

## oOo