## TITLE 7 - AGRICULTURE

## CHAPTER XVIII -- RURAL DEVELOPMENT, DEPARTMENT OF AGRICULTURE

## 

## SUBCHAPTER H - PROGRAM REGULATIONS

## 

## PART 1944 - HOUSING

## 

## SUBPART K - TECHNICAL AND SUPERVISORY ASSISTANCE GRANTS

## 

## TABLE OF CONTENTS

## 

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

1944.501 General. 1

1944.502 Policy. 1

1944.503 Objectives. 2

1944.504 - 1944.505 \[Reserved\] 2

1944.506 Definitions. 2

\(a\) Adequate housing. 2

\(b\) Applicant or grantee. 2

\(c\) Grant agreement. 2

\(d\) Low-income family. 2

\(e\) Organization. 2

\(f\) Rural area. 3

\(g\) Sponsored applicant. 3

\(h\) Supervisory assistance. 3

\(i\) Technical assistance. 4

1944.507 - 1944.509 \[Reserved\] 4

1944.510 Applicant eligibility. 4

1944.511 \[Reserved\] 5

1944.512 Authorized representative of the applicant. 5

1944.513 \[Reserved\] 5

1944.514 Comprehensive TSA Grant Projects. 6

1944.515 \[Reserved\] 7

1944.516 Grant purposes. 7

1944.517 \[Reserved\] 7

1944.518 Term of grant. 8

1944.519 \[Reserved\] 8

1944.520 Ineligible activities. 8

1944.521 \[Reserved\] 9

1944.522 Equal opportunity requirements. 9

1944.523 Other administrative requirements. 9

1944.524 \[Reserved\] 9

1944.525 Targeting of TSA funds to States. 10

1944.526 Preapplication procedure. 10

\(a\) Preapplication submission. 10

\(b\) District Office processing of preapplication. 13

(11-15-90) SPECIAL PN

RD Instruction 1944-K

Table of Contents (Cont.)

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

\(c\) State Office processing of preapplications. 13

\(d\) National Office processing of preapplications. 14

1944.527 \[Reserved\] 15

1944.528 Preapplication submission deadline. 15

1944.529 Project selection. 15

1944.530 \[Reserved\] 17

1944.531 Application submission. 17

1944.532 \[Reserved\] 18

1944.533 Grant approval and announcement. 18

1944.534 \[Reserved\] 20

1944.535 Cancellation of an approved grant. 20

1944.536 Grant closing. 20

1944.537 \[Reserved\] 20

1944.538 Extending and revising grant agreements. 21

1944.539 \[Reserved\] 22

1944.540 Requesting TSA checks. 22

1944.541 Reporting requirements. 22

1944.542 \[Reserved\] 24

1944.543 Grant monitoring. 24

1944.544 \[Reserved\] 24

1944.545 Additional grants. 24

1944.546 \[Reserved\] 24

1944.547 Management assistance. 24

1944.548 Counseling consent by Rural Development single family

housing borrowers. 25

1944.549 Grant evaluation, closeout, suspension and termination. 26

1944.550 \[Reserved\] 26

Exhibit A - Grant Agreement - Technical and Supervisory Assistance

Exhibit B - Instructions for Rural Development State Offices.

Exhibit C - Instructions for Rural Development District Offices.

Exhibit D - Amendment to Technical and Supervisory Assistance Grant

Agreement

Exhibit E - Guide Letter to Delinquent Rural Development Single Family
Housing Borrower

RD Instruction 1944-K

PART 1944 - HOUSING

Subpart K - Technical and Supervisory Assistance Grants

§1944.501 [General]{.underline}.

This Subpart sets forth the policies and procedures for making grants
under Section 525 (a) of the Housing Act of 1949, 42 U.S.C. 1490e(a), to
provide funds to eligible applicants to conduct programs of technical
and supervisory assistance (TSA) for low-income rural residents to
obtain and/or maintain occupancy of adequate housing. Any processing or
servicing activity conducted pursuant to this subpart involving
authorized assistance to Farmers Home Administration (Rural Development)
employees, members of their families, known close relatives, or business
or close personal associates, is subject to the provisions of Subpart D
of Part 1900 of this chapter. Applicants for this assistance are
required to identify any known relationship or association with an Rural
Development employee. This financial assistance may pay part or all of
the cost of developing, conducting, administering, or coordinating
effective and comprehensive programs of technical and supervisory
assistance which will aid needy low-income individuals and families in
benefiting from federal, state, and local programs in rural areas. Rural
Development will provide technical and supervisory grant assistance to
applicants without discrimination because of race, color, religion, sex,
national origin, age, marital status, or physical or mental handicap.
(Revised 02-04-93, SPECIAL PN.)

§1944.502 [Policy]{.underline}.

\(a\) The policy of the Rural Development is to provide Technical and
Supervisory Assistance to eligible applicants to do the following:

\(1\) Provide homeownership and financial counseling to reduce both the
potential for delinquency by loan applicants and the level of payment
delinquency by present Rural Development housing loan borrowers; and

\(2\) Facilitate the delivery of housing programs to serve the most
needy low-income families in rural areas of greatest need for housing.

\(b\) Rural Development intends to fund projects which include
counseling and delivery of housing programs.

\(c\) State Directors are given a strong role in the selection of
grantees so this program can complement Rural Development\'s notices of
targeting Rural Development resources to areas of greatest need within
their States.

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

DISTRIBUTION: WSDC Loan and Grant Making

Housing

## 1

## (Revision 3)

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.502 (Con.)

\(d\) Rural Development expects grant recipients to implement a TSA
program and not to use TSA funds to prepare housing plans and strategies
except as necessary to accomplish the specific objectives of the TSA
project.

§1944.503 [Objectives]{.underline}.

The objectives of the TSA Grant Program are to assist low-income rural
families in obtaining adequate housing to meet their family\'s needs
and/or to provide the necessary guidance to promote their continued
occupancy of already adequate housing. These objectives will be
accomplished through the establishment or support of housing delivery
and counseling projects run by eligible applicants. This program is
intended to make use of any available housing program which provides the
low-income rural resident access to adequate rental properties or
homeownership.

§§1944.504 - 1944.505 \[Reserved\]

§1944.506 [Definitions]{.underline}.

References in this Subpart to County, District, State, National and
Finance Offices and to County Supervisor, District Director, State
Director, and Administrator refer to Rural Development offices and
officials and should be read as prefaced by Rural Development. Terms
used in this Subpart have the following meanings:

\(a\) [Adequate housing]{.underline}. A housing unit of adequate size
and design to meet the specific needs of low-income families and the
requirements governing the particular housing program providing the
services or financial assistance.

\(b\) [Applicant or grantee]{.underline}. Any eligible organization
which applies for or receives TSA funds under a grant agreement.

\(c\) [Grant agreement]{.underline}. The contract between Rural
Development and the applicant which sets forth the terms and conditions
under which TSA funds will be made available.

\(d\) [Low-income family]{.underline}. Any household, including those
with one member, whose adjusted annual income, computed in accordance
with\
§§1944.5 and 1944.6 of Part 1944, Subpart A of this chapter, does not
exceed the maximum low-income limits specified in Exhibit C of Subpart A
of Part 1944 (available in any Rural Development office).\
(Revised 10-1-85, SPECIAL PN.)

\(e\) [Organization]{.underline}. Public or private nonprofit
corporations, agencies, institutions, Indian tribes and other
associations; or

## 2

## (Revision 3)

§1944.506 (e) (2) (Con.) RD Instruction 1944-K

\(2\) A private nonprofit corporation with local representation from the
area being served that is owned and controlled by private persons or
interests and is organized and operated by private persons or interests
for purposes other than making gains or profits for the corporation and
is legally precluded from distributing any gains or profits to its
members.

\(f\) [Rural area]{.underline}. The definition in 1944.10 of Subpart A
of Part 1944 of this Chapter applies. (12-21-81 SP PN)

\(g\) [Sponsored applicant]{.underline}. An eligible applicant which has
a commitment of financial and/or technical assistance to apply for the
TSA program and to implement such a program from a state, count,
municipality, or other governmental entity or public body.

\(h\) [Supervisory assistance]{.underline}. Any type of assistance to
low-income families which will assist those families in meeting the
eligibility requirements for, or the financial and managerial
responsibilities of, homeownership or tenancy in an adequate housing
unit. Such assistance must include, but is not limited to, the following
activities:

\(1\) Assisting individual Rural Development borrowers with financial
problems to overcome delinquency and/or prevent foreclosure and
assisting new low-income applicants avoid financial problems through:

\(i\) Financial and budget counseling including advice on debt levels,
credit purchases, consumer and cost awareness, debt adjustment
procedures, and availability of other financial counseling services;

\(ii\) Monitoring payment of taxes and insurance;

\(iii\) Home maintenance and management; and

\(iv\) Other counseling based on the needs of the low-income families.

\(2\) Contacting and assisting low-income families in need of adequate
housing by:

\(i\) Implementing an organized outreach program using available media
and personal contacts;

\(ii\) Explaining available housing programs and alternatives to
increase the awareness of low-income families and to educate the
community as to the benefits which can accrue from improved housing;

## 3

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.506 (h) (2) (Con.)

\(iii\) Assisting low-income families locate adequate housing;

\(iv\) Providing construction supervision, training, and guidance to
low-income families not involved in mutual self-help projects who are
otherwise being assisted by the TSA project;

\(v\) Organizing local public or private nonprofit groups willing to
provide adequate housing for low-income families; and

\(vi\) Providing assistance to families and organizations in processing
housing loan and/or grant applications generated by the TSA program,
including developing and packaging such applications for new
construction, rehabilitation, or repair to serve low-income families.

\(i\) [Technical assistance]{.underline}. Any specific expertise
necessary to carry out housing efforts by or for low-income families to
improve the quantity and/or quality of housing available to meet their
needs. Such assistance should be specifically related to the supervisory
assistance provided by the project, and may include, as appropriate, the
following activities:

\(1\) Develop, or assist eligible applicants to develop, multi-housing
loan and/or grant applications for new construction, rehabilitation, or
repair to serve low-income families.

\(2\) Market surveys, engineering studies, cost estimates, and
feasibility studies related to applications for housing assistance to
meet the specific needs of the low-income families assisted under the
TSA program.

§§1944.507 - 1944.509 \[Reserved\]

§1944.510 [Applicant eligibility]{.underline}.

To be eligible to receive a grant, the applicant must:

\(a\) Be an organization as defined in §1944.506 (e) of this Subpart.

\(b\) Have the financial, legal, administrative, and operational
capacity to assume and carry out the responsibilities imposed by the
grant agreement. To meet this requirement of actual capacity, it must
either:

## 4 

§1944.510 (b) (Con.) RD Instruction 1944-K

\(1\) Have necessary background and experience with proven ability to
perform responsibly in the field of low-income rural housing development
and counseling, or other business management or administrative
experience which indicates an ability to provide responsible technical
and supervisory assistance; or

\(2\) Be assisted by an organization which has such background
experience and ability and which agrees in writing that it will provide,
without charge, the assistance the applicant will need to carry out its
responsibilities.

\(c\) Legally obligate itself to administer TSA funds, provide an
adequate accounting of the expenditure of such funds, and comply with
the grant agreement and Rural Development regulations;

\(d\) Demonstrate an understanding of the needs of low-income rural
families;

\(e\) Have the ability and willingness to work within established
guidelines; and

\(f\) If the applicant is engaged in or plans to become engaged in any
other activities, it must be able to provide sufficient evidence and
documentation that it has adequate resources, including financial
resources, to carry on any other programs or activities to which it is
committed without jeopardizing the success and effectiveness of its TSA
project.

§1944.511 \[Reserved\]

§1944.512 [Authorized representative of the applicant]{.underline}.

Rural Development will deal only with authorized representatives
designated by the applicant. The authorized representatives must have no
pecuniary interest in any of the following as they would relate in any
way to the TSA grant: the award of any engineering, architectural,
management, administration, or construction contracts; purchase of the
furnishings, fixtures or equipment; or purchase and/or development of
land. Note: (Rural Development has designated the District Office as the
primary point of contact for all matters relating to the TSA program and
as the office responsible for the administration of approved TSA
projects.)

§1944.513 \[Reserved\]

## 5

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.514 (Con.)

§1944.514 [Comprehensive TSA Grant Projects]{.underline}.

\(a\) The rural area to be covered by the TSA project must be
realistically serviceable by the applicant in terms of funding
resources, manpower, and distances and generally should be limited to
one to four counties within the service area of one District Office.

\(b\) Consideration of the following items may assist applicants develop
TSA projects which meet the needs of low-income families in the proposed
TSA service area: present population distribution, projected population
growth or decline, the amount of inadequate housing, economic
conditions, and trends of the rural areas concerned, and any other
factors affecting the quantity and quality of housing currently
available or planned for the area. Consideration must also be given to
the needs and desires of the community; the financial and social
condition of the individuals within the community; the needs of areas
with a concentration of low-income minority families and the needs of
Rural Development borrowers who are delinquent in their housing loan
payments; the availability of supporting services such as water,
sewerage, health and educational facilities, transportation,
recreational and community facilities, and the types of housing
facilities and services presently available or planned to which the
low-income families have or will have ready access.

\(c\) Each TSA applicant should consider the alternatives available to
provide needed housing facilities and services for the area.
Consideration should be given to the recommendations and services
available from local, state, federal government entities, and from
private agencies and individuals.

\(1\) In no case should the TSA project deliberately conflict with or
duplicate housing studies, plans, projects, or any other housing related
activities in a rural area unless documentation shows these activities
do not meet the needs of low-income families.

\(2\) Each TSA project should be coordinated to the extent possible with
any comprehensive or special purpose plans and projects affecting
low-income housing in the area.

\(3\) To the fullest extent possible, TSA projects should be coordinated
with any housing-related activities currently being carried out in the
area.

## 6 

§1944.515 (Con.) RD Instruction 1944-K

\(d\) TSA applicants must coordinate their proposals with the
appropriate County and District Offices to be fully familiar with the
needs of those offices and of the low-income families currently served
by the County Offices.

§1944.515 \[Reserved\]

§1944.516 [Grant purposes]{.underline}.

Grant funds are to be used for a housing delivery system and counseling
program to include a comprehensive program of technical and supervisory
assistance as set forth in the grant agreement and any other special
conditions as required by Rural Development. Uses of grant funds may
include, but are not limited to:

\(a\) The development and implementation of a program of technical and
supervisory assistance as defined in §1944.506 (h) and (i) of this
Subpart.

\(b\) Payment of reasonable salaries of professional, technical, and
clerical staff actively assisting in the delivery of the TSA project.

\(c\) Payment of necessary and reasonable office expenses such as office
supplies and office rental, office utilities, telephone services, and
office equipment rental.

\(d\) Payment of necessary and reasonable administrative costs such as
workers\' compensation, liability insurance, audit reports, travel to
and attendance at Rural Development approved training sessions, and the
employer\'s share of Social Security and health benefits. Payments to
private retirement funds are prohibited unless prior written
authorization is obtained from the Administrator.

\(e\) Payment of reasonable fees for necessary training of grantee
personnel. This may include the cost of travel and per diem to attend
regional training sessions when authorized by the State Director..

\(f\) Other reasonable travel and miscellaneous expenses necessary to
accomplish the objectives of the specific TSA grant which were
anticipated in the individual TSA grant proposal and which have been
included as eligible expenses at the time of grant approval.

§1944.517 \[Reserved\]

7

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.518 (Con.)

§1944.518 [Term of grant]{.underline}.

TSA projects will be funded under one Grant Agreement for two years
commencing on the date of execution of the Agreement by the State
Director.

§1944.519 \[Reserved\]

§1944.520 [Ineligible activities]{.underline}.

\(a\) Grant funds may not be used for:

\(1\) Acquisition, construction, repair, or rehabilitation of structures
or acquisition of land, vehicles, or equipment.

\(2\) Replacement of or substitution for any financial support which
would be available from any other source.

\(3\) Duplication of current services in conflict with the requirements
of §1944.514 (c) of this Subpart.

\(4\) Hiring personnel to perform construction.

\(5\) Buying property of any kind from families receiving technical or
supervisory assistance from the grantee under the terms of the TSA
grant.

\(6\) Paying for or reimbursing the grantee for any expenses or debts
incurred before Rural Development executes the grant agreement.

\(7\) Paying any debts, expenses, or costs which should be the
responsibility of the individual families receiving technical and
supervisory assistance.

\(8\) Any type of political activities.

\(9\) Other costs including contributions and donations, entertainment,
fines and penalties, interest and other financial costs, legislative
expenses and any excess of cost from other grant agreements.

\(b\) Advice and assistance may be obtained from the National Office
where ineligible costs are proposed as part of the TSA project or where
a proposed cost appears ineligible.

## 8 

§1944.520 (Con.) RD Instruction 1944-K

\(c\) The grantee may not charge fees or accept compensation or
gratuities from TSA recipients for the grantee\'s assistance under this
program.

§1944.521 \[Reserved\]

§1944.522 [Equal opportunity requirements]{.underline}.

The policies and regulations contained in Subpart E of Part 1901 of this
chapter apply to grants made under this subpart.

§1944.523 [Other administrative requirements]{.underline}.

The following policies and regulations apply to grants made under this
subpart: (Renumbered 12-23-83, SPECIAL PN.)

\(a\) The policies and regulations contained in Subpart F of Part 1901
of this chapter regarding historical and archaeological properties.
(Renumbered 12-23-83, SPECIAL PN.)

\(b\) The policies and regulations contained in Subpart G of Part 1940
of this chapter regarding Environmental Assessments. (Revised 1-30-84,
SPECIAL PN.)

§1944.524 \[Reserved\]

## 9

## (Revision 2)

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.525 (Con.)

§1944.525 [Targeting of TSA funds to States]{.underline}.

\(a\) The Administrator will determine, based on the most current
available information (generally that information used to determine the
allocation to States of Rural Development housing loan funds), those
States with the highest degree of substandard housing and persons in
poverty in rural areas eligible to receive Rural Development housing
assistance. The Administrator will distribute a portion of the available
funds for TSA to these States, leaving the balance available for
national competition.

\(b\) The Administrator will provide annual notice through a published
Notice on the distribution of appropriated TSA funds, the number of
preapplications to be submitted to the National Office from the State
Offices, and the maximum grant amount per project.

§1944.526 [Preapplication procedure]{.underline}.

\(a\) [Preapplication submission]{.underline}.

\(1\) All applicants will file an original and two copies of SF 424.1,
\"Application for Federal Assistance (For Non-construction),\" and
supporting information detailed below with the appropriate District
Office serving the proposed TSA area. A preapplication packet including
SF 424.1 is available in all District and State Offices. (Revised
4-11-90,\
SPECIAL PN.)

\(i\) The applicant will provide informational copies of the
preapplication to the County Supervisor(s) of the area to be served to
the TSA project at the time of submittal to the appropriate District
Office.

\(ii\) If the TSA area encompasses more than one District Office, the
preapplication will be filed at the District Office which serves the
area in which the grantee will provide the greatest amount of TSA
efforts. Additional informational copies of the preapplication will be
sent by the applicant to the other affected District Office(s).

\(2\) All preapplications shall be accompanied by the following
information which will be used to determine the applicant\'s eligibility
to undertake a TSA program and to determine whether the applicant might
be funded.

## 10

## (Revision 2) 

§1944.526 (a) (2) (Con.) RD Instruction 1944-K

\(i\) A narrative presentation of the applicant\'s proposed TSA program,
including:

\(A\) The technical and supervisory assistance to be provided;

\(B\) The time schedule for implementing the program;

\(C\) The staffing pattern to execute the program and salary range for
each position, existing and proposed;

\(D\) The estimated number of low-income and low-income minority
families the applicant will assist in obtaining affordable adequate
housing;

\(E\) The estimated number of Rural Development borrowers who are
delinquent or being foreclosed that the applicant will assist in
resolving their financial problems relating to their delinquency;

\(F\) The estimated number of households which will be assisted in
obtaining adequate housing in the TSA area through new construction
and/or rehabilitation;

\(G\) Annual estimated budget for each of the two years based on the
financial needs to accomplish the objectives outlined in the proposal.
The budget should include proposed direct and indirect costs for
personnel, fringe benefits, travel, equipment, supplies, contracts, and
other costs categories, detailing those costs for which the grantee
proposes to use the TSA grant separately from non-TSA resources, if any;

\(H\) The accounting system to be used;

\(I\) The method of evaluation proposed to be used by the applicant to
determine the effectiveness of its program;

\(J\) The sources and estimated amounts of other financial resources to
be obtained and used by the applicant for both TSA activities and
housing development and/or supporting facilities; and

\(K\) Any other information necessary to explain the manner of
delivering the TSA assistance proposed.

## 11

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.526 (a) (2) (Con.)

\(ii\) Complete information about the applicant\'s previous experience
and capacity to carry out the objectives of the proposed TSA program;

\(iii\) Evidence of the applicant\'s legal existence, including, in the
case of a private nonprofit organization, a copy of, or an accurate
reference to, the specific provisions of State law under which the
applicant is organized; a certified copy of the applicant\'s Articles of
Incorporation and Bylaws or other evidence of corporate existence;
certificate of incorporation for other than public bodies; evidence of
good standing from the State when the corporation has been in existence
one year or more; the names and addresses of the applicant\'s members,
directors, and officers; and, if another organization is a member of the
applicant-organization, its name, address, and principal business.

\(iv\) For a private nonprofit entity, a current financial statement
dated and signed by an authorized officer of the entity showing the
amounts and specific nature of assets and liabilities together with
information on the repayment schedule and status of any debt(s) owed by
the applicant. If the applicant is an organization being assisted by
another private nonprofit organization, the same type of financial
statement should also be provided by that organization.

\(v\) A brief narrative statement which includes information about the
area to be served and the need for improved housing (including both
percentage and actual number of both low-income and low-income minority
families and substandard housing), the need for the type of technical
and supervisory assistance being proposed, the method of evaluation to
be used by the applicant in determining the effectiveness of its efforts
(as related to paragraph (a)(2)(i) of this section), and any other
information necessary to specifically address the selection criteria in
§1944.529 of this Subpart.

\(vi\) A list of other activities the applicant is engaged in and
expects to continue and a statement as to any other funding and whether
it will have sufficient funds to assure continued operation of the other
activities for at least the period of the TSA grant agreement.

## 12 

§1944.526 (a) (Con.) RD Instruction 1944-K

\(3\) An applicant should submit written statements from the county,
parish, or township governments of the area affected that the project is
beneficial and does not duplicate current activities. If the local
governmental units will not provide such statements, the applicant will
prepare and include with its preapplication a summary of its analysis of
alternatives considered under §1944.514 (c) of this Subpart. However,
Indian nonprofit organization applicants should obtain the written
concurrence of the Tribal governing body in lieu of the concurrence of
the county governments.

\(4\) Sponsored applicants should submit a written commitment for
financial and/or technical assistance from their sponsoring entity.

\(5\) An original and one copy of Form RD 1940-20, \"Request for
Environmental Information.\" (Revised 1-30-84, SPECIAL PN.)

\(b\) [District Office processing of preapplications]{.underline}.

\(1\) The District Director with whom the preapplication is filed will
review the preapplication, SF 424.1, and any other supporting
information from the applicant. The District Director will also:\
(Revised

\(i\) Complete any required environmental review procedures as specified
in Subpart G of Part 1940 of this chapter and attach to the application.
(Revised 1-30-84, SPECIAL PN.)

\(ii\) Prepare a review of the project in accordance with Subpart F of
Part 1901 of this Chapter and attach it to the preapplication.

\(2\) All District Directors and County Supervisors receiving
informational copies of the preapplication should submit their comments
within five working days to the District Director with whom the
preapplication is filed.

\(3\) The original and one copy of the preapplication, together with the
District Director\'s written comments and recommendations, reflecting
the criteria used in §1944.529 and Exhibit C of this Subpart, will be
forwarded to the State Director within ten working days of receipt of
the preapplication.

\(c\) [State Office processing of preapplications]{.underline}.

\(1\) Upon receipt of a preapplication, the State Office will review and
evaluate the preapplication and accompanying documents in accordance
with the project selection criteria of §1944.529 and Exhibit B of this
Subpart. The State Office will also:

## 13

## (Revision 3)

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.526 (c) (Con.)

\(i\) Make a determination on Form RD 1940-21, Form RD 1940-32 or Class
II Environmental Assessment in accordance with Subpart G of Part 1940 of
this chapter. (Revised 1-30-84, SPECIAL PN.)

\(ii\) Prepare an historical and archaeological assessment in accordance
with §1901.255(b) and (c) of Subpart P of Part 1901 of this Chapter.

\(2\) Within 30 days of the closing date for receipt of preapplications
as published in the Federal Register, the State Director will forward to
the National Office the original preapplication(s) and supporting
documents of the selected applicant(s), including any comments received
in accordance with 7 CFR Part 3015, Intergovernmental Review of
Agriculture Programs and Activities.\" See RD Instruction 1940-J
available in any Rural Development Office and the comments and
recommendations of the County Office(s), District Office(s), and the
State Office. The State Office will submit the preapplication(s) in
accordance with the annual notice provided for by §1944.525 (b) of this
Subpart. (Revised 12-23-83, SPECIAL PN.)

\(3\) Concurrently the State Office will send a copy of the selected
applicant\'s SF 424.1 and relevant documents to the Regional Office of
the General Counsel (OGC) requesting a legal determination be made of
the applicant\'s legal existence and authority to conduct the proposed
program of technical and supervisory assistance.\
(Revised 4-11-90, SPECIAL PN.)

\(4\) The State Office will notify other applicants that their
preapplications were not selected and advise them of their appeal rights
under Subpart B of Part 1900 of this Chapter.

\(d\) [National Office processing of preapplications]{.underline}.

\(1\) Preapplication for this program from those States targeted under
§1944.255 of this Subpart will he reviewed by the National Office for
completeness and compliance with this Subpart. If a grant is
recommended, the National Office will return the preapplication(s) with
any comments and recommendations to the State Office and advise that
office to proceed with the issuance of Form AD-622, \"Notice of
Preapplication Review Action,\" and to request the applicant to prepare
SF 424.1 for submission to the District Office. If a grant is not
recommended, the National office will advise the State Office of action
to take. (Revised 4-11-90, SPECIAL PN.)

\(2\) Preapplications from States which are not targeted in accordance
with §1944.525 of this Subpart will be reviewed for completeness and
compliance with this Subpart and then evaluated in accordance with the
project selection criteria of §1944.529. Those preapplications which are
selected, and for which funds are available, will be returned to the
appropriate State Office with any National Office comments

## 14

## (Revision 3) 

§1944.526 (d) (2) (Con.) RD Instruction 1944-K

and recommendations. The State Office will be advised to proceed with
the issuance of Form AD-622 and to request the applicant to prepare SF
424.1 for submission to the District Office as detailed in §1944.531 of
this Subpart. (Revised 4-11-90, SPECIAL PN.)

\(3\) Those preapplications for which funds are not available will be
returned to the appropriate State Office which will notify each
applicant and advise the applicant of its appeal rights under Subpart B
of Part 1900 of this Chapter.

\(4\) State Directors will be advised of the National Office\'s action
on their selected preapplication within 30 days of receipt of all
preapplications.

§1944.527 \[Reserved\]

§1944.528 [Preapplication submission deadline]{.underline}. Dates
governing the review and selection of TSA grant preapplications will be
published annually in the Federal Register. Preapplications received
after that time will not be considered for funding. For use of fiscal
year 1979 funds, the deadline for submission of preapplications will be
45 calendar days from date of publication of final regulations.

§1944.529 [Project selection]{.underline}.

\(a\) Projects must meet the following criteria:

\(1\) Provide a program of supervisory assistance as defined in
§1944.506(h) of this Subpart, and

\(2\) Serve areas with a concentration of substandard housing and
low-income and low-income minority households.

\(b\) In addition to the items listed in paragraph (a) of this section,
the following criteria will be considered in the selection of grant
recipients:

\(1\) The extent to which the project serves areas with concentrations
of Rural Development single family housing loan borrowers who are
delinquent in their housing loan payments and/or threatened with
foreclosure.

\(2\) The capability and past performance demonstrated by the applicant
in administering its programs.

\(3\) The effectiveness of the current efforts by the applicant to
assist low-income families in obtaining adequate housing.

## 15

## (Revision 2)

(6- 18-79) SPECIAL PN

RD Instruction 1944-K

§1944.529 (b) (Con.)

\(4\) The extent to which the project will provide or increase the
delivery of housing resources to low-income and low-income minority
families in the area who are not currently occupying adequate housing.

\(5\) The services the applicant will provide that are not presently
available to assist low-income families in obtaining or maintaining
occupancy of adequate housing and the extent of duplication of technical
and supervisory assistance activities currently provided for low-income
families.

\(6\) The extent of citizen and local government participation and
involvement in the development of the preapplication and project.

\(7\) The extent of planned coordination with other Federal, State or
local technical and/or supervisory assistance programs.

\(8\) The extent to which the project will make use of other Financial
and contribution-in-kind resources for both technical and supervisory
assistance and housing development and supporting facilities.

\(9\) Any comments received in accordance with 7 CFR Part 3015 Subpart
V, \"Intergovernmental Review of Department of Agriculture Programs and
Activities.\" See RD Instruction 1940-J, available in any Rural
Development Office. (Revised 12-23-83, SPECIAL PN.)

\(10\) The extent to which the project will be cost effective, including
but not limited to the ratio of personnel to be hired by the applicant
to the cost of the project, the cost, both direct and indirect, per
person benefiting from the project, and the expected benefits to
low-income families from the project.

\(11\) The extent to which the proposed staff and salary ranges,
including qualifications, experience, proposed hiring schedule, and
availability of any prospective employees, will meet the objectives of
the proposed TSA program.

\(12\) The anticipated capacity of the applicant to implement the
proposed time schedule for starting and completing the TSA program and
each phase thereof.

\(13\) The adequacy of the records and practices, including personnel
procedures and practices, that will be established and maintained by the
applicant during the term of the agreement.

## 16

## (Revision 2) 

§1944.529 (Con.) RD Instruction 1944-K

\(c\) Among the projects proposed by private nonprofit entities,
preference will be given to sponsored applicants.

§1944.530 \[Reserved\]

§1944.531 [Application submission]{.underline}.

\(a\) Upon notification that the applicant has been tentatively selected
for funding, the State Office will forward to the applicant a signed
Form AD-622 and provide SF 424.1 with instructions to the applicant for
preparation of an application. (Revised 4-11-90,\
SPECIAL PN.)

\(b\) Upon receipt of Form AD-622, the applicant will submit an
application in an original and 2 copies on SF 424.1, and provide
whatever additional information is requested to the District Office
within 30 days.

(Revised 4-11-90, SPECIAL PN.)

\(c\) Upon receipt of an application on SF 424.1 by the District Office,
a docket shall be assembled which will include the following:\
(Revised 4-11-90, SPECIAL PN.)

\(1\) SF 424.1 and the information submitted in accordance with
§1944.526 (a) (2) of this Subpart. (Revised 4-11-90, SPECIAL PN.)

\(2\) Form AD-622.

\(3\) Any comments received in accordance with 7 CFR Part 3015 Subpart
V, \"Intergovernmental Review of Department of Agriculture Programs and
Activities.\" See RD Instruction 1940-J, available in any Rural
Development Office. (Revised 12-23-83, SPECIAL PN.)

\(4\) SF 424.1. (Revised 4-11-90, SPECIAL PN.)

\(5\) OGC legal determination made pursuant to §1944.526 (c)(3) of this
Subpart.

\(6\) Grant Agreement.

\(7\) Form RD 440-1, \"Request for Obligation of Funds.\"

\(8\) Form RD 400-1, \"Equal Opportunity Agreement.\"

\(9\) Form RD 400-4, \"Nondiscrimination Agreement.\"

\(10\) Form RD 1940-20, \"Request for Environmental Information.\"

\(11\) Form RD 1940-22, \"Environmental Checklist for Categorical
Exclusions,\" Form RD 1940-21, \"Environmental Assessment for Class I

## 17

## (Revision 3)

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.531 (c) (11) (Con.)

Actions\" or Exhibit G of Subpart G of Part 1940 entitled,
\"Environmental Assessment for Class II Actions.\"

\(12\) The historical and archaeological assessment.

\(13\) The detailed budget for the agreement period based upon the needs
outlined in the proposal and the comments and recommendations by Rural
Development.

§1944.532 \[Reserved\]

§1944.533 [Grant approval and announcement]{.underline}.

Grant approval and announcement will be accomplished under the following
procedure. The Administrator may modify this section if necessary to
obligate funds in a timely and efficient manner.

\(a\) The District Office will review the docket to determine whether
the application complies with these regulations and is consistent with
the information and supporting documents submitted with the
preapplication and any comments and recommendations of the State and
National Offices.

\(b\) If major problems occur during the development of the docket, the
District Office will call upon the State Office for assistance.

\(c\) If a grant is recommended, Form RD 1940-1 and the Grant Agreement
will be prepared by the District Office and forwarded to the applicant
for signature as authorized in its authorization resolution, Exhibit A,
Grant Agreement, is a part of those regulations.\
(Revised 4-11-90, SPECIAL PN.)

\(d\) When Form RD 1940-1 and the Grant Agreement are received from the
applicant and signed by the applicant, the docket will be forwarded to
the State Director. (Revised 4-11-90, SPECIAL PN.)

\(e\) Exhibit A to RD Instruction 2015-C, will be prepared and sent to
the Director of Information in the National Office. (Revised SP PN
7-1-83)

\(f\) If the State Director approves the project, the following actions
will be taken in the order listed:

\(1\) The State Director, or the State Director\'s designee, will
telephone the Finance Office Check Request Station requesting that grant
funds for a particular project be obligated. Immediately after
contacting the Finance Office, the requesting official will furnish the
requesting office\'s security identification code. Failure to furnish
the security code will result in the rejection of the request

## 18

## (Revision 3) 

§1944.533 (f) (1) (Con.) RD Instruction 1944-K

information from Form RD 1940-1 will be furnished to the Finance Office.
Upon receipt of the telephone request for obligation of funds, the
Finance Office will record all information necessary to process the
request for obligation in addition to the date and time of the request.
(Revised 4-11-90, SPECIAL PN.)

\(2\) The individual making the request will record the date and the of
the request and sign Section 37 of Form RD 1940-1.

(Revised 4-11-90, SPECIAL PN.)

\(i\) The Finance Office will notify the State Office by telephone when
funds are reserved and of the date of obligation. If funds cannot be
reserved for a project, the

## 18A

## (Revision 1) 

§1944.533 (f) (2) (i) RD Instruction 1944-K

Finance Office will notify the State Office that funds are not
available. The obligation date will be six working days from the date
the request for obligation is processed.

\(ii\) The Finance Office will terminally process telephone obligation
requests. Those requests received prior to 2:30 p.m. Central Time will
be processed on the date of the request. Those requests received after
2:30 p.m., to the extent possible, will be processed on the day
received, however, there may be instances where the obligation will be
processed on the next working day.

\(iii\) The Finance Office will mail Form RD 440-57, \"Acknowledgment of
Obligated Funds/Check Request,\" to the State Director, confirming the
reservation of funds with the obligation date inserted as required by
Item 9 on the Forms Manual Insert (FMI) for Form RD 440-57.

\(iv\) Form RD 1940-1 will not be mailed to the Finance Office. (Revised
4-11-90, SPECIAL PN.)

\(3\) The State Director will notify the Director of Information in the
National Office with a recommendation that the project announcement be
released.

\(4\) An executed Form RD 1940-1 will be sent to the applicant along
with an executed copy of the Grant Agreement and scope of work on or
before the date funds are obligated. (Revised 4-11-90, SPECIAL PN.)

\(i\) The actual date of applicant notification will be entered on the
original of Form RD 1940-1 and the original of the form will be included
as a permanent part of the file. (Revised 4-11-90, SPECIAL PN.)

\(ii\) Standard Form 270, \"Request for Advance or Reimbursement,\" will
be sent to the applicant for completion and returned to Rural
Development.

\(5\) If it is determined that a project will not be funded or if major
changes in the scope of the project are made after release of the
approval announcement, the State Director will notify the Administrator
and the Director, Legislative Affairs and Public Information Staff
(LAPIS) by telephone or electronic mail giving the reasons for such
action. The Director, LAPIS will inform all parties who were notified by
the project announcement if the project will not be funded or of major
changes in the project using a procedure similar to the announcement
process. Form RD 1940-10, \"Cancellation of U.S. Treasury Check and/or
Obligation,\" will not be submitted to the Finance Office until five
working days after notifying the Administrator and the Director, LAPIS.
(Revised 8-19-82, SPECIAL PN.)

## 19

## (Revision 2)

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.533 (f) (Con.)

\(6\) Upon receipt from the grantee of a properly completed SF-270, Form
440-57 will be completed and the check request will be called to the
Finance Office Check Request Station in accordance with the FMI for Form
RD 440-57.

§1944.534 \[Reserved\]

§1944.535 [Cancellation of an approval grant]{.underline}.

An approved grant may be canceled before closing if the applicant is
determined to no longer be eligible, the proposal is no longer feasible,
or the applicant requests cancellation. Cancellation will be
accomplished as follows:

\(a\) The District Director will prepare Form RD 1940-10, \"Cancellation
of U.S. Treasury Check and/or Obligation,\" in an original and two
copies (three copies if the technical and supervisory assistance (TSA)
check has been received in the District Office from the disbursing
office.) Form RD 1940-10 will be sent to the State Director (original
and two copies with the check if the Treasury check is being canceled)
with the reasons for requesting cancellation. (Revised 8-19-82, SPECIAL
PN.)

\(b\) If the State Director approves the request for cancellation,
he/she will forward the original request for cancellation (original and
one copy of Form RD 1940-10 with the check if the Treasury check is
being canceled) to the Finance Office. If the TSA check is received in
the District Office, the District Director will return it to the Finance
Office with an original and one copy of Form RD 1940-10. (Revised
8-19-82, SPECIAL PN.)

\(c\) The District Director will notify the applicant of the
cancellation and unless the applicant requested the cancellation, its
right to appeal in accordance with the Rural Development Appeal
Procedure contained in Subpart B of Part 1900 of this Chapter.

§1944.536 [Grant closing]{.underline}.

Closing is the process by which Rural Development determines that
applicable administrative actions have been completed and the Grant
Agreement is signed. The Grant Agreement (Exhibit A) will be executed by
the State Director at the time the Form RD 1940-1 and Grant Agreement is
sent to the Grantee in accordance with §1944.533 (f)(4) of this Subpart.
An executed original of the Grant Agreement shall be sent to the
District Director and one copy to the grantee. (Revised 4-11-90, SPECIAL
PN.)

§1944.537 \[Reserved\]

## 20

## (Revision 2) 

RD Instruction 1944-K

§1944.538 [Extending and revising grant agreements]{.underline}.

\(a\) All requests extending the original grant agreement or revising
the TSA program must be in writing. Such requests will be processed
through the District Director. Any such request will be processed in
accordance with the processing procedure specified in §1944.526 (b) and
(c) of this Subpart. The State Office will respond to the applicant
within 30 days of receipt of the request in the State Office.

\(b\) An extension of a grant beyond the two year term may be granted by
the State Director when:

\(1\) There are grant funds remaining and the grantee requests an
extension at the end of the grant period,

\(2\) The grantee has demonstrated its ability to conduct a
comprehensive program of technical and supervisory assistance in
accordance with the terms of its grant agreement and in a manner
satisfactory to Rural Development,

\(3\) The grantee is likely to complete the goals outlined in the
initial proposal,

\(4\) There is an unmet need to continue the delivery of the technical
and supervisory assistance being provided by the grantee, and

\(5\) The District Director recommends continuation of the grant until
the grantee has expended all of the remaining grant funds.

\(c\) Upon approval of the extension, the State Director will authorize
the District Director to amend the ending date of the grant agreement
and revise the budgets, if necessary, on behalf of the Government.

\(d\) If the grant agreement must be revised and amended other than by
extension, including any changes in the scope and objectives of the TSA
program, the grantee will submit a revised budget and TSA program
together with any information necessary to justify its requests. Such
requests will be submitted to the State Director through the District
Director.

\(e\) The State Office will advise the National Office of all requests
to extend or modify the original grant agreement. Prior concurrence of
the National Office is not required unless the State Director so
desires, in which case the State Director will advise the applicant that
the request has been forwarded to the National Office for concurrence.
The State Director\'s recommendation will accompany such requests.

## 21

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.538 (Con.)

\(f\) Exhibit D to this Subpart shall be executed upon approval of an
extension of the grant period, or significant change in either the
project budget or the objectives of the approved technical and
supervisory activities.

\(g\) If extension or modification is not approved, the State Office
will notify the applicant in writing of the decision and advise the
applicant of the appeal procedures under Subpart B of Part 1900 of this
Chapter.

§1944.539 \[Reserved\]

§1944.540 [Requesting TSA checks]{.underline}.

\(a\) The initial TSA check may cover the applicant\'s needs for the
first calendar month. If the first calendar month is a partial month,
the check will cover the needs for the partial month and the next whole
month.

\(b\) The initial advance of TSA grant funds may not be requested
simultaneously with the request for obligation of TSA grant funds. The
initial advance must be requested on Form RD 440-57 in accordance with
the FMI after it has been received from the Finance Office indicating
that funds have been obligated.

\(c\) All advances will be requested only after receipt of Standard Form
270 from the grantee. The amount requested must be in accordance with
the detailed budget, including amendments, as approved by Rural
Development. Standard Form 270 will not be submitted more frequently
than once every 30 days. In no case will additional funds be advanced if
the grantee fails to submit required reports or is in violation of the
grant agreement.

§1944.541 [Reporting requirements]{.underline}.

\(a\) Standard Form 269, \"Financial Status Report,\" and a project
performance report will be required of all grantees on a quarterly
basis. All grantees shall submit an original and two copies of these
reports to the District Director. The project performance reports will
be submitted not later than January 15, April 15, July 15, and October
15 of each year.

\(b\) As part of the grantee\'s preapplication submission required by
§1944.526 (a)(2)(i) of this Subpart, the grantee established the
objectives of its TSA program including the estimated number of
low-income families to be assisted by the TSA program and established
its method of evaluation to determine the effectiveness of its program.
The project performance report should relate the activities during the
report period to the project\'s objectives and analyze the effectiveness
of the program. Accordingly, the report should include, but need not be
limited to the following:

## 22 

§1944.541 (b) (Con.) RD Instruction 1944-K

\(1\) A comparison of actual accomplishments to the objectives
established for that period, including:

\(i\) The number of low-income families assisted in improving their
housing conditions or in obtaining affordable adequate housing.

\(ii\) The number of Rural Development borrowers who were delinquent or
being foreclosed who were assisted in resolving their financial
problems.

\(iii\) The number of households assisted in obtaining adequate housing
by the TSA program through new construction and/or rehabilitation.

\(2\) Reasons why, if established objectives are not met.

\(3\) Problems, delays, or adverse conditions which will materially
affect attainment of the TSA grant objectives, prevent the meeting of
time schedules or objectives, or preclude the attainment of project work
elements during established time periods. This disclosure shall be
accompanied by a statement of the action taken or contemplated and any
Federal assistance needed to resolve the situation.

\(4\) Objectives established for the next reporting period, sufficiently
detailed to identify the type of assistance to be provided, the number
and type of families to be assisted, etc.

\(c\) These reports will be reviewed by the District Director to
determine satisfactory progress. The District Director will work with
the grantee to resolve any problems. The District Director will forward
the original and one copy of the reports with any comments and
recommendations to the State Director within ten working days of
receipt.

\(d\) The State Director will review the reports, comments, and
recommendations forwarded by the District Director within five working
days of receipt.

\(1\) If the reports indicate satisfactory progress, the State Director
will forward the original to the National Office with any comments or
suggestions and return the remaining copy to the grantee through the
District Director with a copy of the comments or recommendations.

\(2\) If the reports indicate unsatisfactory progress, the State
Director will recommend appropriate action to resolve the indicated
problem(s). The State Director has the discretion to not authorize
further advances where the progress of the project is unsatisfactory.

## 23

(6-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.541 (d) (2) (Con.)

The State Director will notify the grantee through the District Director
of a decision not to authorize further advances and advise the grantee
of its appeal rights under Subpart B of Part 1900 of this Chapter.

\(3\) A copy of the memorandum returning the unsatisfactory reports will
be forwarded to the National Office together with the State Director\'s
decision, comments and recommendations, if appropriate.

\(e\) The grantee will complete a final Standard Form 269 and a final
performance report upon termination or expiration of the grant
agreement.

§1944.542 \[Reserved\]

§1944.543 [Grant monitoring]{.underline}.

Each grant will be monitored by Rural Development to ensure that the
grantee is complying with the terms of the grant and that the TSA
project activity is completed as approved. Ordinarily, this will involve
a review of quarterly and final reports by Rural Development and review
by the appropriate District Director.

§1944.544 \[Reserved\]

§1944.545 [Additional grants]{.underline}.

An additional grant may be made to an applicant that has previously
received a TSA grant and has achieved or nearly achieved the goals
established for the previous grant by submitting a new proposal for TSA
funds. The additional grant application will be processed as if it were
an initial application. Upon approval, a new grant agreement will be
required and the grant will be coded as an initial grant on Form RD
440-1.

§1944.546 \[Reserved\]

§1944.547 [Management assistance]{.underline}.

The District Director will see that each TSA grantee receives management
assistance to help achieve a successful program.

\(a\) TSA employees who will be contacting and assisting families will
receive training in packaging single family housing and Rural Rental
Housing loans when, or very shortly after, they are hired so that they
can work effectively.

\(b\) TSA employees who will provide counseling, outreach, and other
technical and supervisory assistance will receive training on Rural
Development policies, procedures, and requirements appropriate to their
positions and the type of assistance the grantee will provide at the
outset of the grant.

## 24 

§1944.547 (Con.) RD Instruction 1944-K

\(c\) Training will be provided by Rural Development employees and/or
outside sources approved by Rural Development when the technical and
supervisory assistance involves rural housing programs other than Rural
Development programs. Appropriate training of TSA employees should be
anticipated during the planning stages of the grant and the reasonable
cost of such training included in the budget.

\(d\) The District Director, in cooperation with the appropriate County
Supervisor(s), should coordinate the management assistance given to the
TSA grantee in a manner which is timely and effective. This will require
periodic meetings with the grantee to discuss problems being encountered
and offer assistance in solving these problems; to discuss the budget,
the effectiveness of the grant, and any other unusual circumstances
affecting delivery of the proposed TSA services; to keep the grantee
aware of procedural and policy changes, availability of funds, etc.; and
to discuss any other matters affecting the availability of housing
opportunities for low-income families.

\(e\) The District Director will advise the grantee of the options
available to bring the delinquent borrowers\' accounts current and
advise the grantee that the appropriate County Supervisor retains all
approval authority for any resolution of the delinquent accounts and all
other authority currently available to remedy delinquent accounts.

§1944.548 [Counseling consent by Rural Development single family housing
borrowers]{.underline}.

\(a\) Subsequent to execution of the TSA grant agreement, the County
Supervisor(s) serving the TSA project area will contact the delinquent
Rural Development single family housing borrowers who appear to be in
need of supervisory assistance as defined in paragraph 1944.506 (h)(1)
of this subpart. Such contact will indicate the availability or the
counseling services of the grantee and solicit the borrower\'s
participation in the program. Exhibit E should be used in contacting
and/or discussing counseling with the borrowers.

\(b\) Upon indication of the borrower\'s willingness to participate in
the program by his or her signature on Exhibit E or similar letter or
statement, the County Supervisor will make available to the grantee (at
no cost) the borrower\'s Rural Development loan history including the
following information:

\(1\) Name, address, and telephone number;

\(2\) Status of the account including the amount of the loan, the
repayment schedule, and the amount of the delinquency; and

\(3\) Other information needed for counseling purposes which may be
provided in accordance with RD Instruction 2018-F.

## 25

## (Revision 1)

(06-18-79) SPECIAL PN

RD Instruction 1944-K

§1944.549 [Grant evaluation, closeout, suspension, and
termination]{.underline}.

\(a\) Grant evaluation will be an ongoing activity performed by both the
grantee and Rural Development. The grantee will perform self-evaluations
by preparing periodic project performance reports in accordance with
§1944.541 of this Subpart. Rural Development will also review all
reports prepared and submitted by the grantee in accordance with the
grant agreement and this Part.

\(b\) Within forty-five (45) days after the grant ending date, the
grantee will complete closeout procedures as specified in the grant
agreement.

\(c\) The grant can also be terminated before the grant ending date for
the causes specified in the grant agreement. No further grant funds will
be disbursed when grant suspension or termination procedures have been
initiated in accordance with the grant agreement.

§1944.550 \[Reserved\]

Attachments: Exhibits A, B, C, D, and E

## oOo

## 26

## (Revision 1) 

RD Instruction 1944-K

## EXHIBIT A

## Grant Agreement

## Technical and

## Supervisory Assistance

## 

This Agreement dated \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is between
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(name),
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (address), (Grantee) and
the United States of America acting through the Farmers Home
Administration (Grantor or Rural Development). The Grantor agrees to
grant to Grantee a sum not to exceed
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ subject to the terms and conditions
established by the Grantor; provided, however, that the proportionate
share of any grant funds actually advanced and not needed for grant
purposes shall be returned immediately to the Grantor. The Grantor may
terminate the grant in whole, or in part, at any time before the date of
completion, whenever it is determined that the Grantee has failed to
comply with the conditions of the grant. The grantee may appeal this
decision in accordance with the Rural Development Appeal Procedure
contained in Subpart B of Part 1900 of this Chapter. In consideration of
said grant by Grantor to Grantee, to be made pursuant to Section 525 (a)
of the Housing Act of 1949 for the purpose of providing funds to
eligible nonprofit applicants (grantees) to pay part or all of the cost
of developing, conducting, administering, or coordinating comprehensive
programs of technical and supervisory assistance (TSA) which will aid
needy low-income individuals and families in benefiting from Federal,
State and local housing programs in rural areas, the Grantee will
provide such a program in accordance with the terms of this agreement
and applicable Rural Development regulations.

PART A [Definitions]{.underline}:

1\. \"Beginning date\" means the date when work under this grant will
commence. Such date is set forth in Paragraph 2 of Part B of this
Agreement.

2\. \"Ending date\" means the date when all work under this agreement is
scheduled to be completed. It is also the latest date grant funds will
be provided under this agreement, without an approved extension. Such
date is set forth in Paragraph 2 of Part B of this Agreement.

3\. \"Disallowed costs\" are those charges to a grant which the Rural
Development determines cannot be authorized in accordance with
applicable Federal costs principles or other conditions contained in
this Agreement.

4\. \"Grant closeout\" is the process by which the grant operation is
concluded at the expiration of the grant period or following a decision
to terminate the grant.

5\. \"Termination\" of a grant means the cancellation of Federal
assistance, in whole or in part, under a grant at any time before the
date of completion.

(6-18-79) SPECIAL PN

RD Instruction 1944-K

Exhibit A

Page 2

PART B [Terms of agreement]{.underline}:

Grantor and grantee agree:

1\. This agreement shall be effective when executed by both parties.

2\. The TSA activities approved by Rural Development shall commence not
later than \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, and shall be completed by
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, unless earlier terminated under
paragraph B 18 below, or extended.

3\. Grantee shall carry out the TSA activities described in the
application docket which is made a part of this Agreement. Grantee will
be bound by the conditions set forth in the docket and the further
conditions set forth in this Agreement. If any of the conditions in the
docket are inconsistent with those in the Agreement, the latter will
govern. A change of any conditions must be in writing and must be signed
by an authorized representative of Rural Development.

4\. Grantee shall use grant funds only for the purpose and activities
specified in Rural Development regulations and in the application docket
approved by Rural Development including the approved budget. Any uses
not provided for in the approved budget must be approved in writing by
Rural Development in advance.

5\. If the Grantee is a private nonprofit corporation, expenses charged
for travel or per diem will not exceed the rates paid Rural Development
employees for similar expenses. If the Grantee is a public body, the
rates will be those that are allowable under the customary practice in
the government of which the grantee is a part; if none are customary,
the Rural Development rates will be the maximum allowed.

6\. Grant funds will not be used for any of the following:

\(a\) To pay obligations incurred before the effective date of this
Agreement.

\(b\) To pay obligations incurred after the grant termination or ending
date.

\(c\) Entertainment purposes.

\(d\) To pay for capital assets, the purchase of real estate or
vehicles, improvement or renovation of space, or repair or maintenance
of privately owned vehicles.

RD Instruction 1944-K

Exhibit A

Page 3

\(e\) Any other purpose specified in 7 CFR §1944.520.

7\. Grant funds shall not be used to replace any financial support
previously provided or assured from any other source.

8\. Disbursal of grants will be governed as follows:

\(a\) In accordance with Treasury Circular 1075 (fourth revision) Part
205, Chapter II of title 31 of the Code of Federal Regulations, grant
funds will be provided by Rural Development as cash advances on an as
needed basis not to exceed one advance every 30 days. The advance will
be made by direct Treasury check to the Grantee. The financial
management system of the recipient organization shall provide for
effective control over and accountability for all Federal funds as
stated in OMB Circular A-102 (42 FR 45828, September 12, 1977) for State
and local governments and OMB Circular A-110 (41 FR 32016, July 30,
1976) for nonprofit organizations.

\(b\) Cash advances to the Grantee shall be limited to the minimum
amounts needed and shall be timed to be in accord only with the actual,
immediate cash requirements of the Grantee in carrying out the purpose
of the planned project.

\(c\) Grant funds should be promptly refunded to the Rural Development
and redrawn when needed if the funds are erroneously drawn in excess of
immediate disbursement needs. The only exceptions to the requirement for
prompt refunding are when the funds involved:

\(i\) Will be disbursed by the recipient organization within seven
calendar days from the date of the Treasury check, or

\(ii\) Are less than \$10,000 and will be disbursed within 30 calendar
days from the date of the Treasury check.

\(d\) Grantee shall provide satisfactory evidence to Rural Development
that all officers of the Grantee organization authorized to receive
and/or disburse Federal funds are covered by satisfactory fidelity bonds
sufficient to protect the Grantor\'s interests.

(6-18-79) SPECIAL PN

RD Instruction 1944-K

Exhibit A

Page 4

\(e\) Grant funds will be placed in the Grantee\'s bank account(s) until
disbursed.

9\. The Grantee will submit Performance and Financial reports as
indicated below to the appropriate Rural Development District Office:

\(a\) As needed, but not more frequently than once every 30 days, an
original and 2 copies of Standard Form 270, \"Request for Advance or
Reimbursement.\"

\(b\) Quarterly, (not later than January 15, April 15, July 15, and
October 15 of each year) an original and 2 copies of Standard Form-269,
\"Financial Status Report,\" and a Project Performance report in
accordance with §1944.541 of this Subpart.

\(c\) Within forty-five (45) days after the termination or expiration of
the grant agreement, an original and 2 copies of Standard Form 269. and
a final Project Performance report which will include a summary of the
project\'s accomplishments, problems, and planned future activities of
the Grantee for TSA. Final reports may serve as the last quarterly
report.

\(d\) Rural Development may require performance reports more frequently
if it deems necessary.

10\. In accordance with FMC 74-4, Attachment B, compensation for
employees will be considered reasonable to the extent that such
compensation is consistent with that paid for similar work in other
activities of the State or local government.

11\. If the grant exceeds \$100,000, transfers among direct cost budget
categories totaling more than 5 percent of the total budget must have
prior written approval by the appropriate District Director.

12\. Results of the program assisted by grant funds may be published by
the grantee without prior review by Rural Development, provided that
such publications acknowledge the support provided by funds pursuant to
the provisions of Title V of the Housing Act of 1949 and that five
copies of each such publication are furnished to the District Director.

RD Instruction 1944-K

Exhibit A

Page 5

13\. Grantee certifies that no person or organization has been employed
or retained to solicit or secure this grant for a commission,
percentage, brokerage, or contingent fee.

14\. No person in the United States shall, on the grounds of race,
creed, color, sex, marital status, age, national origin, or mental or
physical handicap, be excluded from participating in, be denied the
proceeds of, or be subject to discrimination in connection with the use
of grant funds. Grantee will comply with pertinent nondiscrimination
regulations of Rural Development.

15\. In all hiring or employment made possible by or resulting from this
grant, Grantee: (a) will not discriminate against any employee or
applicant for employment because of race, creed, color, sex, marital
status, national origin, age, or mental or physical handicap, and (b)
will take affirmative action to insure that employees are treated during
employment without regard to their race, creed, color, sex, marital
status, national origin, age, or mental or physical handicap. This
requirement shall apply to, but not be limited to, the following:
Employment, upgrading, demotion, or transfer; recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. In
the event Grantee signs a contract related to this grant which would be
covered by any Executive Order, law, or regulation prohibiting
discrimination, Grantee shall include in the contract the \"Equal
Employment Clause\" as specified by Rural Development.

16\. The grantee accepts responsibility for accomplishing the TSA
program as submitted and included in the application docket. The Grantee
shall also:

\(a\) Endeavor to coordinate and provide liaison with State and local
housing organizations, where they exist.

\(b\) Provide continuing information to Rural Development on the status
of Grantee programs, projects, related activities, and problems.

\(c\) The Grantee shall inform the Grantor as soon as the following
types of conditions become known:

\(i\) Problems, delays, or adverse conditions which materially affect
the ability to attain program objectives, prevent the meeting of time
schedules or goals, or preclude the

(6-18-79) SPECIAL PN

RD Instruction 1944-K

Exhibit A

Page 6

attainment of project work units by established time periods. This
disclosure shall be accompanied by a statement of the action taken or
contemplated, and any Grantor assistance needed to resolve the
situation.

\(ii\) Favorable developments or events which enable meeting time
schedules and goals sooner than anticipated or producing more work units
than originally projected.

17\. Grant closeout and termination procedures will be as follows:

\(a\) Promptly after the date of completion or a decision to terminate a
grant, grant closeout actions are to be taken to allow the orderly
discontinuation of Grantee activity.

\(i\) The Grantee shall immediately refund to Rural Development any
uncommitted balance of grant funds.

\(ii\) The Grantee will furnish to Rural Development within 45 days
after the date of completion of the grant a Standard Form 269 and all
financial, performance, and other reports required as a condition of the
grant.

\(iii\) The Grantee shall account for any property acquired with TSA
grant funds, or otherwise received from Rural Development.

\(iv\) After the grant closeout, Rural Development retains the right to
recover any disallowed costs which may be discovered as a result of an
audit.

\(b\) When there is reasonable evidence that the Grantee has failed to
comply with the terms of this Agreement, the State Director can, on
reasonable notice, terminate the grant pursuant to paragraph (c) below
and withhold further payments or prohibit the Grantee from further
obligating grant funds. Rural Development may allow all necessary and
proper costs which the Grantee could not reasonably avoid.

\(c\) Grant termination will be based on the following:

\(i\) [Termination for cause]{.underline}. This grant may be terminated
in whole, or in part, at any time before the date of completion,
whenever Rural Development determines that the Grantee

RD Instruction 1944-K

Exhibit A

Page 7

has failed to comply with the terms of the Agreement. The reasons for
termination may include, but are not limited to, such problems as:

\(A\) Failure to make satisfactory progress in attaining grant
objectives.

\(B\) Failure of Grantee to use grant funds only for authorized
purposes.

\(C\) Failure of Grantee to submit adequate and timely reports of its
operation.

\(D\) Violation of any of the provisions of any laws administered by
Rural Development or any regulation issued thereunder.

\(E\) Violation of any nondiscrimination or equal opportunity
requirement administered by Rural Development in connection with any
Rural Development programs.

\(F\) Failure to maintain an accounting system acceptable to Rural
Development.

\(ii\) [Termination for convenience]{.underline}. Rural Development or
the Grantee may terminate the grant in whole, or in part, when both
parties agree that the continuation of the project would not produce
beneficial results commensurate with the further expenditure of funds.
The two parties shall agree upon the termination conditions, including
the effective date and, in case of partial termination, the portion to
be terminated.

\(d\) Procedure for termination of grant for cause. Rural Development
shall notify the Grantee in writing of the determination and the reasons
for and the effective date of the whole or partial termination in
accordance with 7 CFR §1900.53.

(6-18-79) SPECIAL PN

RD Instruction 1944-K

Exhibit A

Page 8

18\. Extension and/or revision of this grant agreement may be approved
by Rural Development provided, in its opinion, the extension and/or
revision is justified and there is a likelihood that the Grantee can
accomplish the goals set out and approved in the application docket
during the period of the extension and/or revision as specified in 7 CFR
§1944.538.

PART C [Grantee agrees]{.underline}:

1\. To comply with property management standards for expendable and
nonexpendable personal property established by Attachment N of OMB
Circular A-102 or Attachment N of OMB Circular A-110 for State and local
governments or nonprofit organizations respectively. \"Personal
property\" means property of any kind except real property. It may be
tangible\--having physical existence\--or intangible-having no physical
existence, such as patents, inventions, and copyrights. \"Nonexpendable
personal property\" means tangible personal property having a useful
life of more than one year and an acquisition cost of \$300 or more per
unit. A Grantee may use its own definition of nonexpendable personal
property provided that such definition would at least include all
tangible personal property as defined above. \"Expendable personal
property\" refers to all tangible personal property other than
nonexpendable personal property. When nonexpendable tangible personal
property is acquired by a Grantee with project funds, title shall not be
taken by the Federal Government but shall vest in the Grantee subject to
the following conditions:

\(a\) Right to transfer title. For items of nonexpendable personal
property having a unit acquisition cost of \$1,000 or more, Rural
Developmentmay reserve the right to transfer title to the Federal
Government or to a third party named by the Federal Government when such
third party is otherwise eligible under existing statutes. Such
reservation shall be subject to the following standards:

\(i\) The property shall be appropriately identified in the grant or
otherwise made known to the Grantee in writing.

\(ii\) Rural Development shall issue disposition instructions within 120
calendar days after the end of the Federal support of the project for
which it was acquired. If Rural Development fails to issue disposition
instructions within the 120 calendar day period, the Grantee shall apply
the standards of paragraph l(c) below.

RD Instruction 1944-K

Exhibit A

Page 9

\(iii\) When Rural Development exercises its right to take title, the
personal property shall be subject to the provisions for federally owned
nonexpendable property discussed in paragraph l(a)(iv) below.

\(iv\) When title is transferred either to the Federal Government or to
a third party and the Grantee is instructed to ship the property
elsewhere, the Grantee shall be reimbursed by the benefiting Federal
agency with an amount which is computed by applying the percentage of
the Grantee participation in the cost of the original grant project or
program to the current fair market value of the property, plus any
reasonable shipping or interim storage costs incurred.

\(b\) Use of other tangible nonexpendable property for which the Grantee
has title.

\(i\) The Grantee shall use the property in the project or program for
which it was acquired as long as needed, whether or not the project or
program continues to be supported by Federal funds. When it is no longer
needed for the original project or program, the Grantee shall use the
property in connection with its other Federally sponsored activities, in
the following order of priority:

\(A\) Activities sponsored by Rural Development.

\(B\) Activities sponsored by other Federal agencies.

\(ii\) Shared use. During the time that nonexpendable personal property
is held for use on the project or program for which it was acquired, the
Grantee shall make it available for use on other projects or programs if
such other use will not interfere with the work on the project or
program for which the property was originally acquired. First preference
for such other use shall be given to other projects or programs
sponsored by Rural Development; second preference shall be given to
projects or programs sponsored by other Federal agencies. If the
property is owned by the Federal Government, use on other activities not
sponsored by the Federal Government shall be permissible if authorized
by FmHA. User charges should be considered if appropriate.

(6-18-79) SPECIAL PN

RD Instruction 1944-K

Exhibit A

Page 10

\(c\) Disposition of other nonexpendable property. When the Grantee no
longer needs the property, the property may be used for other activities
in accordance with the following standards:

\(i\) Nonexpendable property with a unit acquisition cost of less than
\$1,000. The Grantee may use the property for other activities without
reimbursement to the Federal Government or sell the property and retain
the proceeds.

\(ii\) Nonexpendable personal property with a unit acquisition cost of
\$1,000 or more. The Grantee may retain the property for other use
provided that compensation is made to Rural Development or its
successor. The amount of compensation shall be computed by applying the
percentage of Federal participation in the cost of the original project
or program to the current fair market value of the property. If the
Grantee has no need for the property and the property has further use
value, the Grantee shall request disposition instructions from the
original Grantor agency. Rural Development shall determine whether the
property can be used to meet the agency\'s requirements. If no
requirement exists within that agency, the availability of the property
shall be reported, in accordance with the guidelines of the Federal
Property Management Regulations (FPMR) to the General Services
Administration by Rural Development to determine whether a requirement
for the property exists in other Federal agencies. Rural Development
shall issue instructions to the Grantee no later than 120 days after the
Grantee request and the following procedures shall govern:

\(A\) If so instructed or if disposition instructions are not issued
within 120 calendar days after the Grantee\'s request, the Grantee shall
sell the property and reimburse Rural Development an amount computed by
applying to the sales proceeds the percentage of Federal participation
in the cost of the original project or program. However, the Grantee
shall be permitted to deduct and retain from the Federal shares \$100 or
ten percent of the proceeds, whichever is greater, for the Grantee\'s
selling and handling expenses.

RD Instruction 1944-K

Exhibit A

Page 11

\(B\) If the Grantee is instructed to dispose of the property other than
as described in paragraph 1 (a)(iv) above, the Grantee shall be
reimbursed by Rural Development for such costs incurred in its
disposition.

\(C\) The Grantee\'s property management standards for nonexpendable
personal property shall include the following procedural requirements:

([1]{.underline}) Property records shall be maintained accurately and
shall include:

([a]{.underline}) A description of the property.

([b]{.underline}) Manufacturer\'s serial number, model number, Federal
stock number, national stock number, or other identification number.

([c]{.underline}) Sources of the property including grant or other
agreement number.

([d]{.underline}) Whether title vests in the Grantee or the Federal
Government.

([e]{.underline}) Acquisition date (or date received, if the property
was furnished by the Federal Government) and cost.

([f]{.underline}) Percentage (at the end of the budget year) of Federal
participation in the cost of the project or program for which the
property was acquired. (Not applicable to property furnished by the
Federal Government).

([g]{.underline}) Location, use, and condition of the property and the
date the information was reported.

([h]{.underline}) Unit acquisition cost.

([i]{.underline}) Ultimate disposition data, including date of disposal
and sales price or the method used to determine current fair market
value when a Grantee compensates the Federal agency for its share.

(6-18-79) SPECIAL PN

RD Instruction 1944-K

Exhibit A

Page 12

([2]{.underline}) Property owned by the Federal Government must be
marked to indicate Federal ownership.

([3]{.underline}) A physical inventory of property shall be taken and
the results reconciled with the property records at least once every two
years. Any difference between quantities determined by the physical
inspection and those shown in the accounting records shall be
investigated to determine the causes of the difference. The Grantee
shall, in connection with the inventory, verify the existence, current
utilization, and continued need for the property.

([4]{.underline}) A control system shall be in effect to ensure adequate
safeguards to prevent loss, damage, or theft of the property. Any loss,
damage, or theft of nonexpendable property shall be investigated and
fully documented; if the property was owned by the Federal Government,
the Grantee shall promptly notify Rural Development.

([5]{.underline}) Adequate maintenance procedures shall be implemented
to keep the property in good condition.

([6]{.underline}) When the Grantee is authorized or required to sell the
property, proper sales procedures shall be established which will
provide for competition to the extent practicable and result in the
highest. possible return.

([7]{.underline}) Expendable personal property shall vest in the Grantee
upon acquisition. If there is a residual inventory of such property
exceeding \$1,000 in total aggregate fair market value, upon termination
or completion of the grant and if the property is not needed for any
other federally sponsored project or program, the Grantee shall retain
the property

RD Instruction 1944-K

Exhibit A

Page 13

for use on nonfederally sponsored activities, or sell it, but must in
either case compensate the Federal Government for its share. The amount
of compensation shall be computed in the same manner as nonexpendable
personal property.

2\. To provide a financial management system which will include:

\(a\) Accurate, current, and complete disclosure of the financial
results of each grant. Financial reporting will be on an accrual basis.

\(b\) Records which identify adequately the source and application of
funds for grant-supported activities. Those records shall contain
information pertaining to grant awards and authorizations, obligations,
unobligated balances, assets, liabilities, outlays, and income.

\(c\) Effective control over and accountability for all funds, property,
and other assets. Grantee shall adequately safeguard all such assets and
shall assure that they are solely for authorized purposes.

\(d\) Accounting records supported by source documentation.

3\. To retain financial records, supporting documents, statistical
records, and all other records pertinent to the grant for a period of at
least three years after the submission of the final Project Performance
report pursuant to paragraph B (9)(c) of this agreement except in the
following situations:

\(a\) If any litigation, claim, or audit is commenced before the
expiration of the three year period, the records shall be retained until
all litigations, claims, or audit findings involving the records have
been resolved.

\(b\) Records for nonexpandable property acquired with Federal funds
shall be retained for three years after final disposition

\(c\) When records are transferred to or maintained by Rural
Development, the three year retention requirement is not applicable.

Microfilm copies may be substituted in lieu of original records. the
Grantor and the Comptroller General of the United States, or any of
their duly authorized representatives, shall have

(6-18-79) SPECIAL PN

RD Instruction 1944-K

Exhibit A

Page 14

access to any books, documents, papers, and records of the Grantee which
are pertinent to the specific grant program for the purpose of making
audits, examinations, excerpts, and transcripts.

4\. To provide information as requested by the Grantor concerning the
Grantee\'s actions in soliciting citizen participation in the
application process, including published notice of public meetings,
actual public meetings held, and content of written comments received.

5\. Not encumber, transfer, or dispose of the property or any part
thereof, furnished by the Grantor or acquired wholly or in part with
Grantor funds without the written consent of the Grantor except as
provided in Part C 1.

6\. To provide Grantor with such periodic reports of Grantee operations
as may be required by authorized representatives of the Grantor.

7\. To execute Form RD 400-1, \"Equal Opportunity Agreement,\" and to
execute any other agreements required by Grantor to implement the civil
rights requirements.

8\. To include in all contracts in excess of \$100,000 a provision for
compliance with all applicable standards, orders, or regulations issued
pursuant to the Federal Clean Air Act as amended. Violations shall be
reported to the Grantor and the Regional Office of the Environmental
Protection Agency.

9\. That, upon any default under its representations or agreements set
forth in this instrument, Grantee, at the option and demand of Grantor,
will, to the extent legally permissible, repay to the Grantor forthwith
the grant funds received with interest at the rate of five percent per
annum from the date of the default. The provisions of this Grant
Agreement may be enforced by Grantor, at its option and without regard
to prior waivers by it of previous defaults of Grantee, by judicial
proceedings to require specific performance of the terms of this Grant
Agreement or by such other proceedings in law or equity, in either
Federal or State Courts, as may be deemed necessary by Grantor to assure
compliance with the provisions of this Grant Agreement and the laws and
regulations under which this grant is made.

10\. That no member of Congress shall be admitted to any share or part
of this Grant or any benefit that may arise therefrom;

RD Instruction 1944-K

Exhibit A

Page 15

but this provision shall not be construed to bar as a contractor under
the Grant a publicly held corporation whose ownership might include a
member of Congress.

11\. That all nonconfidential information resulting from its activities
shall be made available to the general public on an equal basis.

12\. That the purpose for which this grant is made may complement, but
shall not duplicate programs for which monies have been received, are
committed, or are applied for from other sources, public and private.

13\. That the Grantee shall relinquish any and all copyrights and/or
privileges to the materials developed under this grant, such material
being the sole property of the Federal Government. In the event anything
developed under this grant is published in whole or in part, the
material shall contain notice and be identified by language to the
following effect: \"The material is the result of tax-supported research
and as such is not copyrightable It may be freely reprinted with the
customary crediting of the source.\"

14\. That the Grantee shall abide by the policies promulgated in OMB
Circular A-102, Attachment 0, or OMB Circular A-110, Attachment 0, which
provides standards for use by Grantees in establishing procedures for
the procurement of supplies, equipment and other services with Federal
grant funds.

15\. That it is understood and agreed that any assistance granted under
this Agreement will be administered subject to the limitations of Title
V of the Housing Act of 1949 as amended, 42 USC 1471 et. seq., and
related regulations, and that rights granted to Rural Developmen therein
or elsewhere may be exercised by it in its sole discretion to carry out
the purposes of the assistance, and protect Rural Development\'s
financial interest.

16\. Standard of Conduct. No employee, officer or agent of Grantee shall
participate in the selection, award or administration of a contract in
which Federal funds are used where, to the knowledge of such employee,
officer or agent, the employee, officer or agent or such person\'s
immediate family members, partners or any organization in which such
person or such person\'s immediate family award or administration of the
contract, or (2) when such person is negotiating or has any arrangement
concerning future employment. The recipient\'s officers, employees or
agents shall neither solicit

(6-18-79) SPECIAL PN

RD Instruction 1944-K

Exhibit A

Page 16

nor accept gratuities, favors or anything of monetary value from
landlords or developers of rental or ownership housing projects in which
the persons receiving TSA assistance may be placed as a result of such
assistance.

PART D [Grantor agrees]{.underline}:

1\. That it may assist Grantee, within available appropriations, with
such technical and management assistance as needed in planning the
project and coordinating the plan with local officials, comprehensive
plans, and any State or area plans for improving housing for low-income
families in the area in which the project is located.

2\. That at its sole discretion, Grantor may at any time give any
consent, deferment, subordination, release, satisfaction, or termination
of any or all of Grantee\'s grant obligations, with or without valuable
consideration, upon such terms and conditions as Grantor may determine
to be (a) advisable to further the purposes of the grant or to protect
Grantor\'s financial interests therein, and (b) consistent with the
statutory purposes of the grant and the limitations of the statutory
authority under which it is made and Grantor\'s regulations.

This Agreement is subject to current Grantor regulations and any future
regulations not inconsistent with the express terms hereof. Grantee on
\_\_\_\_\_\_\_\_\_, 19\_\_, has caused this Agreement to be executed by
its duly authorized \_\_\_\_\_\_\_\_\_\_\_ and attested and its
corporate seal affixed by its duly authorized
\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

Attest:

Grantee

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

By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Title)

By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Title)

Grantor

UNITED STATES OF AMERICA

RURAL DEVELOPMENT

By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

(Title)

## o0o 

RD Instruction 1944-K

Exhibit B

## ADMINISTRATIVE INSTRUCTIONS FOR STATE OFFICES

## REGARDING THEIR RESPONSIBILITIES IN THE ADMINISTRATION

## OF THE TECHNICAL AND SUPERVISORY ASSISTANCE GRANT PROGRAM

## 

A. The State Office will maintain for distribution to potential
applicants, upon request, a supply of preapplication packets consisting
of:

1\. SF 424.1.

2\. Form RD 400-1, \"Equal Opportunity Agreement.\"

3\. Form RD 400-4, \"Nondiscrimination Agreement.\"

4\. Form RD 1940-20, \"Request for Environmental Information.\"

5\. Subpart K of Part 1944 of this Chapter.

B. The State Office should inform all potential applicants, at the time
they pick up forms, that:

1\. The preapplication must be submitted to the District Office serving
the area in which the applicant proposes to operate the Technical and
Supervisory Assistance (TSA) program.

2\. The State Office will refer all requests for assistance in
completing the preapplication to the appropriate District Office.

C. Beyond the responsibilities of the State Office in the selection of
grantees and the administration of the program, and as stated in
§1944.502 of this Subpart, the TSA program provides an opportunity for
the State Director to give priority to applicants serving the rural
areas of greatest need as well as use the program cooperatively with
other Federal and State agencies in addressing the housing needs of the
residents of a proposed TSA service area. Therefore, the State Office
should be prepared, before receipt of preapplications, to advise the
District Directors, potential applicants, and other Federal and State
agencies which part(s) of the State has the greatest need for the TSA
program. The State Director should identify target areas in a similar
manner to the process used by the Administrator pursuant to §1944.525 of
this Subpart. Proposals which are clearly inappropriate and do not meet
the basic priorities of §1944.529 (a) of this Subpart should not be
encouraged due to the complexity of the preapplication submission.

(4-11-90) SPECIAL PN

RD Instruction 1944-K

Exhibit B

Page 2

D. In addition to the instructions of §1944.526 of this Subpart, the
State Office should follow the procedures outlined below:

1\. Review preapplications for completeness and adequacy and make
assessments required by §1944.526(c)(l) of this Subpart.

2\. Request clarifications from the District Office if necessary.

3\. Evaluate the proposals in light of §1944.529 of this Subpart and
select the proposal(s) which best meets the priorities established under
the project selection criteria in §1944.529(a), (b) and (c) of this
Subpart.

4\. The State Office must provide written comments to be attached to the
preapplication(s) justifying the selection(s) and addressing the items
in §1944.529 of this Subpart.

5\. The State Office will forward the original SF 424.1 and accompanying
documents of the selected preapplication(s) as quickly as possible to
the National Office, Attention: Special Authorities Division,
Multi-Family Housing. In no case should the State Office forward their
selected TSA preapplication(s) later than thirty (30) days after the
closing date for receipt of applications.

6\. Preapplications not selected by the State Office will be returned to
the applicants through the appropriate District Offices with notice of
appeal rights.

7\. In accordance with §1944.525 of this Subpart, State Offices will be
advised of the number of preapplications to be submitted from each State
to the National Office.

E. §§1944.531 and 1944.533 of this Subpart detail the responsibilities
of the State Office after tentative selection of concurrence of the TSA
grantees by the National Office. Those preapplications not selected will
be promptly notified and their preapplication returned with notice of
appeal rights. Form AD-622, \"Notice of Preapplication Review Action,\"
will be mailed from the State Office to the applicants. District Offices
will receive a copy from the State Office.

F. After execution of the grant agreement, the State Office will work
closely with the District Office and the grantee to obtain additional
resources from other Federal and State agencies to meet the needs of the
TSA service area. The State Office should closely review the quarterly
project performance reports and assist the District Director, as
appropriate, in resolving any problems or taking advantage of favorable
funding or program opportunities.

## oOo 

RD Instruction 1944-K

Exhibit C

## INSTRUCTIONS FOR DISTRICT OFFICES

## REGARDING THEIR RESPONSIBILITIES IN THE ADMINISTRATION

## OF THE TECHNICAL AND SUPERVISORY ASSISTANCE GRANT PROGRAM

## 

A. The District Office will maintain for distribution to potential
applicants, upon request, a supply of preapplication packets consisting
of:

1\. SF 424.1.

2\. Form RD 400-1, \"Equal Opportunity Agreement.\"

3\. Form RD 400-4, \"Nondiscrimination Agreement.\"

4\. Form RD 1940-20, \"Request for Environmental Information.\"

5\. Subpart K of Part 1944 of this Chapter.

B. District Director will provide any necessary assistance in completing
preapplication forms.

C. All applicants will submit preapplications to District Offices. Upon
receipt of the preapplication the District Director will review it to
ensure that the preapplication is complete and make assessments required
by §1944.526 (b)(l) of this Subpart.

D. The District Director will provide written comments to be attached to
the preapplication. These comments will, at a minimum, address the
following items:

1\. Whether the area to be covered by the project is a \"rural area\" as
defined by Rural Development regulations.

2\. The District Director\'s knowledge of the applicant\'s past history.

3\. The need for the proposed activity, and its relationship to the
targeting strategies for the District.

4\. Appropriateness and applicability of this proposal for Rural
Development implementation funds.

(4-11-90) SPECIAL PN

RD Instruction 1944-K

Exhibit C

Page 2

5\. Extent of citizen involvement in development of preapplication,
particularly the involvement of minority and/or low-income groups.

6\. All other criteria specified in §1944.529 of this Subpart.

7\. The comments and recommendations of the County Supervisors for the
proposed TSA service area.

E. The District Director will forward the original and one copy of the
preapplication and accompanying documents along with the comments and a
summary recommendation to the State Director within ten (10) working
days of receipt of the preapplication.

F. Those applicants invited to submit applications will submit their
applications to the District Office with two copies. The District Office
will retain the original for the docket and forward one copy to the
appropriate State Office after making sufficient copies to forward one
copy to each of the appropriate County Offices.

G. The District Director, upon receipt of the application, will prepare
a docket in accordance with §1944.531 of this Subpart. The procedures
for approval and project servicing are detailed in this Subpart.

## oOo 

RD Instruction 1944-K

## EXHIBIT D

## 

## Amendment

## to

## Technical and Supervisory Assistance Grant Agreement

## 

This Amendment to Agreement dated
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 19 \_\_\_\_\_\_\_\_\_\_\_\_\_
between\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
herein called \"Grantee,\" organized and operating under
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and the United
States of America acting

(authorizing State Statute)

through the Rural Development, Department of Agriculture, herein called
\"Rural Development,\" amends the Technical and Supervisory Assistance
Grant Agreement\" between the parties hereto dated \_\_\_\_\_\_\_\_,
19\_\_\_\_\_, hereinafter called the \"Agreement.\"

Said Agreement is amended by changing the ending date specified in
Paragraph 2 of Part B of the Agreement from \_\_\_\_\_\_\_\_\_\_\_\_\_\_
to\_\_\_\_\_\_\_ and/or by making the following changes noted in the
attachments hereto: (List and identify proposal and any other documents
pertinent to the grant which are attached to the Amendment.)

Agreed to this \_\_\_\_\_\_\_\_\_\_\_\_\_\_ day of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 19\_\_\_\_\_\_\_.

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

(Name of Grantee)

By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Signature)

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

(Title)

UNITED STATES OF AMERICA

BY\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Signature)

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

(Date) (Title)

RURAL DEVELOPMENT

## oOo

(6-18-79) SPECIAL PN

RD Instruction 1944-K

## EXHIBIT E

## Guide Letter to Delinquent Rural Development

## 

## Single Family Housing Loan Borrowers

## 

Dear \_\_([name of borrower]{.underline})\_\_\_\_:

This is to advise you that \_\_\_\_([name of TSA
grantee]{.underline})\_\_\_\_\_\_\_ is available to provide independent
counseling services to Farmers Home Administration (FmHA) borrowers in
need of financial management assistance. These services may assist you
in resolving your present delinquency in your housing loan.

This organization is prepared to provide financial and budget counseling
at no charge to you. Their counseling services include advice on debt
levels and credit purchases, consumer and cost awareness, debt
adjustment procedures, and other financial information and services.

You are urged to take advantage of this program. However, your
participation is voluntary and does not relieve you of any of your loan
obligations to Rural Development or limit the remedies Rural Development
has to bring your loan current or recover the loan in full. Any plan
altering your repayment schedule in any way must be approved by this
office. However, it is our intention to work with you and the counseling
organization in every way we can to resolve your delinquency.

If you want to participate in this program, please sign the attached
copy of this letter and return it to this office. At that time we will
advise \_\_\_([name of TSA grantee]{.underline})\_\_\_\_\_\_ that you
are interested in their services and provide them with the information
they need to contact you. Only information available to the general
public will be released.

We are sure you agree that it is in your interest to make every effort
to bring your account current. We look forward to your return of the
attached copy of this letter.

Sincerely,

County Supervisor

Farmers Home Administration

Enclosure

(On attached copy only:)

I desire to participate in the counseling program with

\_\_\_([name of TSA grantee]{.underline})\_\_\_\_.

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

Borrower Date

(6-18-79) SPECIAL PN oOo