RD Instruction 1924-C

Table of Contents

Page 1

PART 1924 - CONSTRUCTION AND REPAIR

Subpart C - Planning and Performing Site Development Work

[TABLE OF CONTENTS]{.underline}

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

1924.101 Purpose. 1

1924.102 General policy. 1

\(a\) Rural development. 1

\(b\) Subdivisions. 1

\(c\) Development related costs. 2

1924.103 Scope. 2

1924.104 Definitions. 2

Applicant. 2

Community. 2

Developer. 2

Development. 3

Multiple Family Housing. 3

Single Family Housing. 3

Site. 3

Site approval official. 3

Street surfaces. 3

Subdivision. 3

1924.105 Planning/performing development. 3

\(a\) General. 3

\(b\) Single Family Housing. 5

\(c\) Multiple Family Housing. 6

1924.106 Location. 6

\(a\) General. 6

\(b\) Single Family Housing. 6

\(c\) Multiple Family Housing. 6

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RD Instruction 1924-C

Table of Contents

Page 2

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

1924.107 Utilities. 7

\(a\) Water and wastewater disposal systems. 7

\(b\) Electric service. 11

\(c\) Gas service. 11

\(d\) Other utilities. 11

1924.108 Grading and drainage. 11

\(a\) General. 11

\(b\) Cuts and fills. 11

\(c\) Slope protection. 11

\(d\) Storm water systems. 12

1924.109 - 1924.114 \[Reserved\] 12

1924.115 Single Family Housing site evaluation. 12

\(a\) Site review. 12

\(b\) Site access. 12

\(c\) Exceptions to street requirements. 13

\(d\) Site layout. 13

\(e\) Covenants, conditions and restrictions. 13

1924.116 - 1924.118 \[Reserved\] 13

1924.119 Site loans. 14

1924.120 Approval authority. 14

1924.121 \[Reserved\] 14

1924.122 Exception authority. 14

1924.123 State Supplements. 14

1924.124 Exhibits. 14

1924.125 - 1924.149 \[Reserved\] 15

1924.150 OMB control number. 15

Exhibit A - (Reserved)

Exhibit B - Site Development Design Requirements.

Exhibit C - Checklist of Visual Exhibits and Documentation for

RRH, RCH, and LH Proposals.

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RD Instruction 1924-C

PART 1924 - CONSTRUCTION AND REPAIR

Subpart C - Planning and Performing Site Development Work

§1924.101 [Purpose]{.underline}.

This subpart establishes the basic Rural Housing and Community
Development Service (RHCDS) policies for planning and performing site
development work. It also provides the procedures and guidelines for
preparing site development plans consistent with Federal laws,
regulations, and Executive Orders.

§1924.102 [General policy]{.underline}.

\(a\) [Rural development]{.underline}. This subpart provides for the
development of building sites and related facilities in rural areas. It
is designed to:

\(1\) Recognize community needs and desires in local planning, control,
and development.

\(2\) Recognize standards for building-site design which encourage and
lead to the development of economically stable communities, and the
creation of attractive, healthy, and permanent living environments.

\(3\) Encourage improvements planned for the site to be the most
cost-effective of the practicable alternatives. Encourage utilities and
services utilized to be reliable, efficient, and available at reasonable
costs.

\(4\) Provide for a planning process that will consider impacts on the
environment and existing development in order to formulate actions that
protect, enhance, and restore environmental quality.

\(5\) No site will be approved unless it meets the requirements of this
part and all state and local permits and approvals in connection with
the proposed development have been obtained.

\(b\) [Subdivisions]{.underline}. RHCDS does not review or approve
subdivisions. Each site approved by RHCDS must meet the requirements of
§1924.115, on a site by site basis.

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

DISTRIBUTION: WSDC Real Property

Construction and Repair

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RD Instruction 1924-C

§1924.102 (Con.)

\(c\) [Development related costs]{.underline}.

\(1\) [Applicant]{.underline}. The applicant is responsible for all
costs incurred before loan or grant closing associated with planning,
technical services, and actual construction. These costs may be included
in the loan or grant as authorized by RHCDS regulations.

\(2\) [Developer]{.underline}. The developer is responsible for payment
of all costs associated with development.

§1924.103 Scope.

This subpart provides supplemental requirements for Rural Rental Housing
(RRH) loans, Rural Cooperative Housing (RCH) loans, Farm Labor Housing
(LH) loans and grants, and Rural Housing Site (RHS) loans. It also
provides a site development standard, as indicated in exhibit B of RD
Instruction 1924-C, which supplements this subpart to provide the
minimum for the acceptability of development. All of this subpart
applies to Single Family Housing unless otherwise noted. All of this
subpart also applies to Multiple Family Housing except §§1924.115 and
1924.120, and any paragraph specifically designated for Single Family
Housing only. In addition, RHCDS will consult with appropriate Federal,
state, and local agencies, other organizations, and individuals to
implement the provisions of this subpart.

§1924.104 [Definitions]{.underline}.

> As used in this subpart:

[Applicant]{.underline}. Any person, partnership, limited partnership,
trust, consumer cooperative, corporation, public body, or association
that has filed a preapplication, or in the case of RHCDS programs that
do not require a preapplication, an official application, with RHCDS in
anticipation of receiving or utilizing RHCDS financial assistance.

[Community]{.underline}. A community includes cities, towns, boroughs,
villages, and unincorporated places which have the characteristics of
incorporated areas with support services such as shopping, post office,
schools, central sewer and water facilities, police and fire protection,
hospitals, medical and pharmaceutical facilities, etc., and are easily
identifiable as established concentrations of inhabited dwellings and
private and public buildings.

[Developer]{.underline}. Any person, partnership, public body, or
corporation which is involved with the development of a site which will
be financed by RHCDS.

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§1924.104 (Con.) RD Instruction 1924-C

[Development]{.underline}. The act of building structures and installing
site improvements on an individual dwelling site, a subdivision, or a
multiple family tract.

[Multiple Family Housing]{.underline}. RHCDS RRH loans, RCH loans, LH
loans and grants, and RHS loans.

[Single Family Housing]{.underline}. RHCDS Rural Housing loans for
individuals for construction of, repair of, or purchase of a dwelling to
be occupied by one household.

[Site]{.underline}. A parcel of land proposed as a dwelling site, with
or without development.

[Site approval official]{.underline}. The RHCDS official making the
determination that a site meets the requirements in this subpart to be
acceptable for site loans. (See §1924.120.)

[Street surfaces]{.underline}. Streets may be hard or all-weather
surfaced.

\(1\) [Hard surface]{.underline} - a street with a portland cement
concrete, asphaltic concrete, or bituminous wearing surface or other
hard surfaces which are acceptable and suitable to the local public body
for use with local climate, soil, gradient, and volume and character of
traffic.

\(2\) [All-weather]{.underline} - a street that can be used year-round
with a minimum of maintenance, such as the use of a grader and minor
application of surface material, and is acceptable and suitable to the
local public body for use with local climate, soil, gradient, and volume
and character of traffic.

[Subdivision]{.underline}. Five or more contiguous (developed or
undeveloped) lots or building sites. Subdivisions may be new or
existing.

§1924.105 [Planning/performing development]{.underline}.

\(a\) [General]{.underline}. Planning is an evaluation of specific
development for a specific site. Planning must take into consideration
topography, soils, climate, adjacent land use, environmental impacts,
energy efficiency, local economy, aesthetic and cultural values, public
and private services, housing and social conditions, and a degree of
flexibility to accommodate changing demands. All planning and performing
development work is the responsibility of the applicant or developer.
All development will be arranged and completed according to applicable
local, state, or Federal regulations including applicable health and

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§1924.105 (a) (Con.)

safety standards, environmental requirements and requirements of this
subpart. When a public authority requires inspections prior to final
acceptance, written assurance by the responsible public authority of
compliance with local, city, county, state or other public codes,
regulations, and ordinances is required prior to final acceptance by
RHCDS.

\(1\) [RHCDS advice and assistance]{.underline}. When receiving an
inquiry about a Single Family Housing site development or a Multiple
Family Housing project, the RHCDS official receiving the request will:

\(i\) Explain the requirements for compliance with subpart G of part
1940 of this chapter, as well as the limitations on applicants during
the application review process as prescribed in §1940.309 of subpart G
of part 1940 of this chapter.

\(ii\) Discuss the requirements of RHCDS with respect to compliance with
local, regional, and state regulations; construction practices; energy
efficiency; nondiscrimination; market analysis; good site planning; and
location in accordance with §1924.106 of this subpart. Also, when
applicable, provide and explain Form RD 400-4, \"Assurance Agreement,\"
Form\
RD 400-1 \"Equal Opportunity Agreement,\" and HUD Form 935.2,
\"Affirmative Fair Housing Marketing Plan.\"

\(2\) [Technical services]{.underline}.

\(i\) Professional assistance is available from the Soil Conservation
Service (SCS) and the Cooperative Extension Service.

\(ii\) An applicant or developer for a Multiple Family Housing project
or a Single Family Housing site which requires technical services under
§1924.13(a) must contract for the technical services of an architect,
engineer, land surveyor, landscape architect, or site planner, as
appropriate, to provide complete planning, drawings, and specifications.
Such services may be provided by the applicant\'s or developer\'s \"in
house\" staff subject to RHCDS concurrence. Technical services must be
performed by professionals who are qualified and authorized to provide
such services in the state in which the project would be developed. All
technical services must be provided in accordance with the requirements
of professional registration or licensing boards. At completion of all
construction or completion of a phase or phases of the total project,
the person providing technical services under this

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§1924.105 (a)(2)(ii) (Con.) RD Instruction 1924-C

section must notify the RHCDS field office in writing that all work has
been completed in substantial conformance with the approved plans and
specifications.

\(iii\) For developments not specifically required to have technical
services under paragraph (a)(2)(ii) of this section, such services may
be required by the state director when construction of streets or
installation of utilities is involved.

\(3\) [Drawings, specifications, contract documents, and other
documentations]{.underline}. Adequate drawings and specifications must
be provided by the applicant or developer to RHCDS in sufficient detail
to fully and accurately describe the proposed development. Contract
documents must be prepared in accordance with §1924.6 or, in the case of
more complex construction, §1924.13.

\(b\) [Single Family Housing]{.underline}. Proposals for development of
individual dwelling sites must meet the following requirements:

\(1\) [Site development design requirements]{.underline}. Exhibit B will
be used as a minimum by applicants or developers in preparing proposals
and supporting documents for Single Family Housing loans, in addition to
specific requirements made in this subpart.

\(2\) [Environmental review]{.underline}.

\(i\) An individual Single Family Housing loan [is normally considered a
Categorical Exclusion]{.underline} under the National Environmental
Policy Act (NEPA). However, Form RD 1940-22, \"Environmental Checklist
for Categorical Exclusions,\" must be completed by RHCDS to determine
that the specific action complies not only with NEPA, but also with
other applicable environmental laws, executive orders, and regulations.
To complete the form, the preparer will use reliable environmental
information. Sources of such information include, but are not limited
to, the state\'s Natural Resource Management Guide and the appraisal. If
the completed Form RD 1940-22 indicates a potential impact to one or
more environmental resources, the action is subject to disqualification
as Categorical Exclusion and a Class I assessment must be completed in
accordance with\
§1940.317(g) of subpart G. If it is obvious at the outset that the
action will be disqualified as a Categorical Exclusion, the preparer
should forego completion of Form RD 1940-22 and proceed directly to the
Class I assessment.

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§1924.105 (b)(2) (Con.)

\(ii\) If it appears that an action will be subject to disqualification
as a Categorical Exclusion due to indications of cumulative impacts, a
Class I or Class II assessment will be completed, as appropriate, in
accordance with subpart G of\
part 1940. A cumulative impact is the impact on the environment which
results from the incremental impact of the proposed action, when added
to other past, present, and reasonably foreseeable future actions,
regardless of what agency (Federal or non-Federal) or person undertakes
such other actions.

\(c\) [Multiple Family Housing]{.underline}. Exhibit C of this subpart
should be used as a guide by the applicant or developer in preparing a
proposal and supporting documents for multiple family housing projects.

§1924.106 [Location]{.underline}.

\(a\) [General]{.underline}. It is RHCDS\'s policy to promote compact
community development and not to approve sites located in floodplains,
on wetlands, or on important farmlands, unless there is no practical
alternative. Furthermore, RHCDS will not finance development on
locations that adversely affect properties which are listed or are
eligible for listing on the National Register of Historic Places,
located within the Coastal Barrier Resource System, or on a barrier
island. (Environmental requirements and instructions are found in\
7 CFR part 1940, subpart G.) In order to be eligible for RHCDS
participation:

\(1\) The site must be located in an eligible area as defined in the
program regulations under which the development is being funded or
approved.

\(2\) The site must comply with the applicable environmental laws,
regulations, Executive Orders, and subpart G of part 1940.

\(b\) [Single Family Housing]{.underline}. In addition to the general
requirements in paragraph (a) of this section, sites must provide a
desirable, safe, functional, convenient, and attractive living
environment for the residents.

\(c\) [Multiple Family Housing]{.underline}. Multiple family housing
projects shall be located in accordance with the requirements in
paragraph (r) of\
§1944.215. Locating sites in less than desirable locations of the
community because they are in close proximity to undesirable influences
such as high activity railroad tracks; adjacent to or behind industrial
sites; bordering sites or structures which are not decent, safe, or
sanitary; or bordering sites which have potential environmental concerns
such as processing plants, etc., is not acceptable. Screening such

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§1924.106 (c) (Con.) RD Instruction 1924-C

sites does not make them acceptable. Sites which are not an integral
part of a residential community and do not have a reasonable access,
either by location or terrain, to essential community facilities such as
water, sewerage, schools, shopping, employment opportunities, medical
facilities, etc., are not acceptable.

§1924.107 [Utilities]{.underline}.

All development under this subpart must have adequate, economic, safe,
energy efficient, dependable utilities with sufficient easements for
installation and maintenance.

\(a\) [Water and wastewater disposal systems]{.underline}.

\(1\) [Single Family Housing]{.underline}. If sites are served by
central water or sewer systems, the systems must meet the requirements
of paragraphs (a)(2)(i) and (ii) of this section. If sites have
individual water or sewer systems, they must meet the requirements of
the state department of health or other comparable reviewing and
regulatory authority and the minimum requirements of exhibit B,
paragraphs V and VI of this subpart. Sites in subdivisions of more than\
25 dwelling units on individual systems, or sites that do not meet the
requirements of exhibit B, paragraphs V and VI, must have state director
concurrence.

\(2\) [Multiple Family Housing]{.underline}. Proposals processed under
this paragraph shall be served by centrally owned and operated water and
wastewater disposal systems unless this is determined by RHCDS to be
economically or environmentally not feasible. All central systems,
whether they are public, community, or private, shall meet the design
requirements of the state department of health or other comparable
reviewing and regulatory authority. The regulatory authority will verify
in writing that the water and wastewater systems are in compliance with
the current provisions of the Safe Drinking Water Act and the Clean
Water Act, respectively.

\(i\) Sites which are not presently served by a central system, but are
scheduled for tie-in to the central system within\
2 years, should have all lines installed during the initial
construction. Such sites must have an approved interim water supply or
wastewater disposal system installed capable of satisfactory service
until the scheduled tie-in occurs.

\(ii\) In addition to written assurance of compliance with state and
local requirements, there must be assurance of continuous service at
reasonable rates for central water and wastewater

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§1924.107 (a)(2)(ii) (Con.)

disposal systems. Public ownership is preferred whenever possible. In
cases where interim facilities are installed pending extension or
construction of permanent public services, the developer must assume
responsibility for the operation and maintenance of the interim facility
or establish an entity for its operation and maintenance which is
acceptable to the local governing body. If a system is not or will not
be publicly owned and operated, it must comply with one of the
following:

\(A\) Be an organization that meets the ownership and operating
requirements for a water or wastewater disposal system that RHCDS could
finance under subpart A of\
part 1942 or be dedicated to and accepted by such an organization.

\(B\) Be an organization or individual that meets other acceptable
methods of ownership and operation as outlined in HUD Handbook 4075.12,
\"Ownership and Organization of Central Water and Sewerage Systems.\"
RHCDS should be assured that the organization has the right, in its sole
discretion, to enforce the obligation of the operator of the water and
sewerage systems to provide satisfactory continuous service at
reasonable rates. The advice and assistance of the Regional Attorney
should be obtained in preparing any necessary agreement with the
organization or individual supplying water and sewerage systems.

\(C\) Be adequately controlled as to rates and services by a public body
(unit of Government or public services commission).

\(iii\) When central systems are not available, RHCDS will thoroughly
evaluate the proposed individual systems for economic feasibility and
potential impact on the environment. Information and guidance for
evaluation and design of individual water and wastewater systems is
contained in Environmental Protection Agency (EPA) publications \"Manual
of Individual Water Supply Systems\" and \"Design Manual, Onsite
Wastewater Treatment and Disposal Systems,\" respectively. Multiple
family developments of more than 25 dwelling units with individual
systems must have the National Office concurrence. A request for
concurrence must contain written recommendations and the following:

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§1924.107 (a)(2)(iii) (Con.) RD Instruction 1924-C

\(A\) Information prepared by the local, county or state regulatory
authority having jurisdiction indicating whether individual systems are
feasible on the proposed sites. Supporting factual data should include
evidence that clearly shows that individual systems will perform
satisfactorily for a reasonable period of time with reasonable
maintenance cost. Reasonable time and reasonable cost can be equated
with the cost and expected life of a central system if one were
available.

\(B\) Supporting information for the proposed individual water systems,
covering the following points:

([1]{.underline}) Documentation of how individual water supplies can be
developed with satisfactory water production at a reasonable cost. In
areas where difficulty is anticipated in developing an acceptable water
supply, the availability of a water supply will be determined before
closing the loan.

([2]{.underline}) Documentation that the quality of the supply meets the
chemical, physical, and bacteriological standards of the regulatory
authority having jurisdiction. The maximum contaminant levels of U.S.
EPA shall apply. Individual water systems must be tested for quantity
and bacteriological quality. Where problems are anticipated with
chemical quality, chemical tests may be required. Chemical tests would
be limited to analysis for the defects common to the area such as iron
and manganese, hardness, nitrates, pH, turbidity, color, or other
undesirable elements. Polluted or contaminated water supplies are
unacceptable. In all cases, assurance of a potable water supply before
loan closing is required.

\(C\) Supporting information for individual wastewater disposal systems
with subsurface discharge provided by a soil scientist, geologist, soils
engineer, or other person recognized by the local regulatory authority.
This data must include the following:

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§1924.107 (a)(2)(iii)(C) (Con.)

([1]{.underline}) Assurance of nonpollution of ground water. The local
regulatory authority having jurisdiction must be consulted to ensure
that installation of individual wastewater systems will not pollute
ground water sources or create other health hazards or otherwise violate
state water quality standards.

([2]{.underline}) Records of percolation tests. Guidance for performing
these tests is included in the EPA design manual, \"Onsite Wastewater
Treatment and Disposal Systems\" and the minimum RHCDS requirements are
in exhibit B, paragraph VI. (These may be waived by the state director
when the state has established other acceptable means for allowing
onsite disposal.)

([3]{.underline}) Determination of soil types and description. The
assistance of the SCS or other qualified persons should be obtained for
soil type determination and a copy of its recommendations included in
the documentation.

([4]{.underline}) Description of ground water elevations, showing
seasonal variations.

([5]{.underline}) Confirmation of space allowances. An accurate drawing
to indicate that there is adequate space available to satisfactorily
locate the individual water and wastewater disposal systems; likewise,
documented assurance of compliance with all local requirements.
Structures served by wastewater disposal systems with subsurface
discharge require larger sites than those structures served by another
type system.

([6]{.underline}) Description of exploratory pit observations, if
available.

\(D\) Supporting information for individual wastewater disposal systems
with surface discharge covering the following points:

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RD Instruction 1924-C

§ 1924.107(a)(2)(iii)(D) (Con.)

\(2\) Program of maintenance, parts, and service available to the
system-owner for upkeep of the system.

\(3\) A plan for local inspection of the system by a responsible agency
with the authority to ensure compliance with health and safety
standards.

\(b\) [Electric service.]{.underline} The power supplier will be
consulted by the applicant to assure that there is adequate service
available to meet the needs of the proposed site. Underground service is
preferred.

\(c\) [Gas service]{.underline}. Gas distribution facilities, if
provided, will be installed according to local requirements where
adequate and dependable gas service is available.

\(d\) [Other utilities]{.underline}. Other utilities, if available, will
be installed according to local requirements.

§ 1924.108 [Grading and drainage]{.underline}.

\(a\) [General]{.underline}. Soil and geologic conditions must be
suitable for the type of construction proposed. In questionable or
unsurveyed areas, the applicant or developer will provide an engineering
report with supporting data sufficient to identify all pertinent
subsurface conditions which could adversely affect the structure and
show proposed solutions. Grading will promote drainage of surface water
away from buildings and foundations, minimize earth settlement and
erosion, and assure that drainage from adjacent properties onto the
development or from the development to adjacent properties does not
create a health hazard or other undesirable conditions. Grading and
drainage will comply with exhibit B, paragraphs III and IV, of this
subpart.

\(b\) [Cuts and fills]{.underline}. Development requiring extensive
earthwork, cuts and fills of 4 feet or more shall be designed by a
professional engineer. Where topography requires fills or extensive
earthwork that must support structures and building foundations, these
must be controlled fills designed, supervised, and tested by a qualified
soils engineer.

\(c\) [Slope protection]{.underline}. All slopes must be protected from
erosion by planting or other means. Slopes may require temporary cover
if exposed for long periods during construction.

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§ 1924.108 (Con.)

\(d\) [Storm water systems]{.underline}. The design of storm water
systems must consider convenience and property protection both at the
individual site level and the drainage basin level. Storm water systems
should be compatible with the natural features of the site. In areas
with inadequate drainage systems, permanent or temporary storm water
storage shall be an integral part of the overall development plan.
Design of these facilities shall consider safety, appearance, and
economical maintenance operations.

§§ 1924.109 - 1924.114 \[Reserved\]

§ 1924.115 [Single Family Housing site evaluation]{.underline}.

> \(a\) [Site review]{.underline}. The site approval official will
> evaluate each site (developed or undeveloped) to determine acceptance
> for the program. Information on the site will be provided by the
> appraiser or site approval official on Attachment 5-B, \"Single Family
> Housing Site Checklist\" contained in Chapter 5: Property Requirements
> of HB-1-3550. The review appraiser (if applicable) and the site
> approval official will review all the information, complete any
> required information, and sign the back of Attachment 5-B certifying
> the site acceptable. If it is acceptable a copy of Attachment 5-B will
> be given to the applicant as a notice that the site has been approved.
> **NOTE:** The site cannot be certified as acceptable until the site
> approval official has satisfactorily completed the appropriate level
> of environmental review required by subpart G of part 1940 for the
> site.(See § 1924.105(b)(2) of this subpart.) (Revised 03-31-99, PN
> 303.)

\(b\) [Site access]{.underline}. Each site must be contiguous to and
have direct access from:

\(1\) A hard surfaced or all weather road which is developed in full
compliance with public body requirements, is dedicated for public use,
and is being maintained by a public body or a home owners association
that has demonstrated its ability or can clearly demonstrate its ability
to maintain the street; or

\(2\) An all weather extended driveway which can serve no more than two
sites connecting to a hard surface or all weather street or road that
meets the requirements of the above paragraph; or

\(3\) A hard surfaced street in a condominium or townhouse complex
which:

\(i\) Is owned in common by the members or a member association and is
maintained by a member association that has demonstrated its ability or
can clearly demonstrate its ability to maintain the street; and

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§1924.115 (b)(3) (Con.) RD Instruction 1924-C

\(ii\) Connects to a publicly owned and dedicated street or road.

\(c\) [Exceptions to street requirements]{.underline}. A site not
meeting the conditions in paragraph (b) of this section will be
acceptable if:

\(1\) The applicant is a builder for a conditional commitment (a loan
will not be approved until the site meets the conditions in paragraph
(b) of this section), or the builder posts an irrevocable performance
and payment bond (or similar acceptable assurance) that assures the site
approval official that the site will be developed to meet the conditions
in paragraph (b) of this section; or

\(2\) The site is recommended by the site approval official and approved
by the state director. A request for state director approval must
justify that it is in the best interest of both the government and the
applicant to approve the site.

\(d\) [Site layout]{.underline}.

\(1\) Sites shall be surveyed and platted. Permanent markers shall be
placed at all corners.

\(2\) Sites shall meet all requirements of state and local entities and
RHCDS.

\(e\) [Covenants, conditions and restrictions]{.underline}. Sites in
subdivisions shall be protected by covenants, conditions, and
restrictions (CC&Rs) to preserve the character, value, and amenities of
the residential community and to avoid or mitigate potential
environmental impacts unless, an exception is granted by the state
director after considering the suitability of local ordinances, zoning,
and other land use controls.

\(1\) CC&Rs shall be recorded in the public land records and
specifically referenced in each deed.

\(2\) The intent of the CC&Rs is to assure the developers that the
purchasers will use the land in conformance with the planned objectives
for the community. In addition, the CC&Rs should assure the purchasers
that the land covered by the CC&Rs will be used as planned and that
other purchasers will use and maintain the land as planned to prevent
changes in the character of the neighborhood that would adversely impact
values or create a nuisance.

§§1924.116 - 1924.118 \[Reserved\]

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§1924.119 [Site Loans]{.underline}.

Subdivisions approved under subpart G of part 1822 (RD\
Instruction 444.8) or Exhibit F of subpart I of part 1944, will meet the
general requirements of this subpart to insure lots in the subdivision
will meet the requirements of §1924.115.

§1924.120 [Approval authority]{.underline}.

The state director is responsible for delegating Single Family Housing
site review and approval authority to appropriate employees when the
employees have had sufficient training and have demonstrated the
capability to perform the required actions. The delegation will be in
writing in accordance with RD Instruction 2006-F.

§1924.121 \[Reserved\]

§1924.122 [Exception authority]{.underline}.

The Administrator of RHCDS may in individual cases, make an exception to
any requirement or provision of this subpart or address any omission of
this subpart which is not inconsistent with the authorizing statute or
other applicable law if the Administrator determines that application of
the requirement or provision would adversely affect the Government\'s
interest. The Administrator will exercise this authority upon the
written request of the state director or the appropriate program
Assistant Administrator. Requests for exceptions must be supported with
documentation to explain the adverse effect on the Government, proposed
alternative courses of action, and show how the adverse effect will be
eliminated or minimized if the exception is granted.

§1924.123 [State supplements]{.underline}.

State directors will obtain prior National office clearance for all
state supplements including exhibits. These will be in accordance with
RD Instruction 2006-B. State directors may supplement this subpart only
to meet state and local laws and regulations and to provide for orderly
processing of submittals. State exhibits may be developed for use by
applicants or developers if the exhibits to this subpart are not
adequate for use in the state. Those exhibits may be developed to
further explain the items needed within the various submittals;
organization of those items; and coordination of this subpart with the
requirements of the RHCDS programs providing the financial assistance.

§1924.124 [Exhibits]{.underline}.

State directors may obtain additional copies of the exhibits to this
subpart from the Finance Office for use by RHCDS offices in assisting
applicants and developers with site development.

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RD Instruction 1924-C

§§1924.125 - 1924.149 \[Reserved\]

§1924.150 [OMB Control Number]{.underline}.

The reporting requirements contained in this regulation have been
approved by the Office of Management and Budget (OMB) and have been
assigned OMB control number 0575-0164. Public reporting burden for this
collection of information is estimated to vary from 5 minutes to 10
minutes per response, with an average of .13 hours per response,
including time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. Send comments regarding this
burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden to the Department of
Agriculture, Clearance Officer, OIRM, Ag Box 7630, Washington, D.C.
20250; and to the Office of Management and Budget, Paperwork Reduction
Project (OMB #0575-0164), Washington, D.C. 20503.

Attachments: Exhibits B and C

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(06-08-95) SPECIAL PN

Exhibits B and C not automated (see Manual).