RD Instruction 2000-FFF

PART 2000 - GENERAL

Subpart - FFF - Memorandum of Understanding Between the Rural Housing
Service and the Rural Utilities Service

§2000.2851 [General]{.underline}

The Rural Housing Service (RHS) has entered into a Memorandum of
Understanding (Exhibit A) with the Rural Utilities Service (RUS) to
establish policies and procedures to coordinate the use of Distance
Learning and Medical Link Grant Program (DLMLGP) applications. The RHS
Community Facilities (CF) programs can be directed toward the same rural
underserved areas to provide educational and medical benefits to people
living in rural areas. RHS will review the RUS DLMLGP applications (not
funded by RUS) to determine if the applications may be eligible for the
CF programs.

§§2000.2852 - 2000.2900 \[Reserved\]

Attachment: Exhibit A

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Distribution: WSDC Administration General

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RD Instruction 2000-FFF

Exhibit A

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## MEMORANDUM OF UNDERSTANDING

## Between the

## RURAL HOUSING SERVICE

## and the

## RURAL UTILITIES SERVICE

## U.S. DEPARTMENT OF AGRICULTURE

I. [Background]{.underline}

There is a need to improve the services offered to residents in the
rural areas of the country. The financial resources available to assist
rural communities in meeting their needs are limited; therefore, it is
important to join efforts between Federal agencies and programs
available to help rural areas obtain these services. With this objective
in mind, the respective agencies have entered into this Memorandum of
Understanding (MOU).

The Rural Housing Service (RHS) administers the Community Facilities
(CF) direct and guaranteed loan programs as authorized by the
Consolidated Farm and Rural Development Act, as amended. CF can make and
guarantee loans for essential community facilities which primarily serve
rural residents and businesses in areas and towns of up to 20,000 in
population.

The Rural Utilities Service (RUS) administers the Distance Learning and
Medical Link Grant Program (DLMLGP) created under the authority of the
Rural Economic Development Act of 1990. The DLMLGP was established to
improve rural opportunities and make affordable the use of advanced
technology to provide educational and medical benefits to people living
in rural areas.

Each year RUS receives many more DLMLGP applications for grant funding
than their budget authority can accommodate. Since both programs can be
directed toward the same rural underserved areas that have the strongest
impact in meeting the needs in the rural areas, arrangements are being
made through this MOU to coordinate the review of unsuccessful DLMLGP
applications submitted to RUS.

II\. [Purpose]{.underline}

The purpose of this MOU is to establish policies and procedures for RUS
to provide to RHS (for review) the applications not selected for DLMLGP
funding to determine if applicants may be eligible for the RHS CF
program.

[(03-20-96) PN 259]{.underline}

RD Instruction 2000-FFF

Exhibit A

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[RUS]{.underline}:

RUS can make DLMLGPs to organizations that operate educational or
medical facilities. The grants may finance up to 80 percent of the cost
of equipment (generally excluding transmission equipment), software,
instructional programming, technical assistance, and related engineering
and environmental studies. An individual grant cannot exceed 10 percent
of that fiscal year\'s appropriations for the program.

[RHS]{.underline}:

RHS can make CF direct and/or guaranteed loans for educational and
medical facilities to an eligible public body or nonprofit corporation
which (a) can demonstrate that it is unable to finance the proposed
project from its own resources or from commercial credit at reasonable
rates and terms, (b) has authority to develop, own, and operate the
proposed facility, (c) can legally borrow money and make payments on
debts obligated, and (d) will primarily serve rural residents and
businesses. Loan repayment may be for up to 40 years or the useful life
of the facility.

III\. [Agreement]{.underline}

In accordance with the understandings contained in this MOU:

[RUS will]{.underline}:

1\. Process DLMLGP applications according to Agency guidelines.

2\. Award DLMLGPs to successful applicants.

3\. Provide RHS the opportunity to review the remaining DLMLGP
applications that may be eligible applicants for the CF program.

[RHS will]{.underline}:

1\. Review the applications to determine which applicants and proposed
projects may be eligible applicants for the CF program;

2\. Invite applicants who appear eligible to apply for the CF program,
as funding authorities permit; and

3\. Process CF applications at the appropriate Rural Economic and
Community Development Office.

RD Instruction 2000-FFF

Exhibit A

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IV\. [Effective Date]{.underline}

This MOU will become effective upon signature and shall continue in
effect until terminated in writing by either party.

V. [Modification or Cancellation Provision]{.underline}

This MOU may be modified or amended by written agreement of the two
parties. Requests for modifications and amendments may be initiated by
either party through written notification.

UNITED STATES DEPARTMENT OF AGRICULTURE

RURAL HOUSING SERVICE

\_\_\_\_\_12/18/95 /s/ Maureen Kennedy

Date Administrator

UNITED STATES DEPARTMENT OF AGRICULTURE

RURAL UTILITIES SERVICE

\_\_\_\_\_12/21/95 /s/ Waley Beyer

Date Administrator

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