RD Instruction 2000-TT

PART 2000  - GENERAL

SUBPART TT - MEMORANDUM OF UNDERSTANDING BETWEEN THE U.S.		 
             DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND RURAL 			        DEVELOPMENT, U.S. DEPARTMENT OF AGRICULTURE,
             ESTABLISHING MULTIPLE COOPERATIVE HOUSING EFFORTS 

2000.2251  General.

	Rural Development has entered into a Memorandum of Understanding with the Department of Housing and Urban Development (HUD) to establish a framework for a continuing working relationship between the two agencies.  With the execution of the agreement, 11 areas of cooperative effort are identified for staff coordination and program development.

A.  The areas identified are exclusively related to housing.  Both single and multi-family housing programs should benefit from a stronger cooperative effort.

B.  The cooperative areas are identified in exhibits to the memorandum.  These exhibits are dated and can be deleted as the cooperative efforts are accomplished.  New exhibits can be added as new areas for cooperative effort are identified.

C.  Generally, the memorandum will be updated in the last quarter of the fiscal year to provide direction and focus for cooperative efforts during the following fiscal year.

D.  The memorandum and its exhibits are attached as Exhibit A to this subpart.

2000.2252 - 2000.2300  [Reserved]


Attachment:  Exhibit A









oOo
__________________________________________________________________________
DISTRIBUTION:  WSDC                                        Administration
                                                              General

1

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	Exhibit A
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MEMORANDUM OF UNDERSTANDING

Between the
U.S. Department of Housing and Urban Development

and Rural Development of the
U.S. Department of Agriculture


PURPOSE

This Memorandum of Understanding (MOU) establishes the framework for a continuing working relationship between the U.S. Department of Housing and Urban Development and Rural Development of the U.S. Department of Agriculture to develop jointly and to implement inter-agency efforts cooperatively in providing housing assistance to low-income households in Rural America.


SITUATION

The Department of Housing and Urban Development administers a variety of housing assistance programs that serve rural families and individuals as well as those living in non-rural communities.  These programs are under various authorities, including the National Housing Act (1934), the Housing Act of 1937, the Housing Act of 1949, and the Housing and Community Development Act of 1974, all as amended.

Rural Development, an Agency of the U.S. Department of Agriculture, administers programs to improve housing conditions specifically in rural areas for very low, low-, and moderate-income families and individuals.  Financial assistance is available to eligible organizations, including public and private nonprofit entities, and to households.  The housing programs are authorized by the Housing Act of 1949, as amended.


AGREEMENT

As detailed in the attached Exhibits, it is mutually agreed that HUD and Rural Development will maintain an on-going working relationship among its respective staffs to address a variety of mutual issues in providing housing assistance to Rural America in a cooperative, cost effective, and non-duplicative manner. 

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It is the intent of both parties to have this MOU represent current and critical areas of concern for both Agencies.  Therefore, it is further agreed that, on the anniversary date of this Agreement, HUD and Rural Development will review the attached Exhibits, adding new issues to be addressed, modifying existing Exhibits on continuing issues if necessary, and deleting Exhibits on accomplished activities.  




/s/
JACK KEMP
Secretary
U.S. Department of Housing and Urban Development




/s/
LA VERNE AUSMAN
Administrator
Farmers Home Administration
U.S. Department of Agriculture

RD Instruction 2000-TT
Exhibit A
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HUD  RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING 

EXHIBIT A

                                                    DATE: August 23, 1991

I.	Issue:

Resolve policy differences between HUD and Rural Development that impact the management and servicing of Section 515/Section 8 assisted housing.


II.	Objective of Coordinated Activities:

Review policy requirements that adversely impact on housing sponsors and recommend solutions. 

Review policy requirements that adversely impact on tenants in Section 515/Section 8 assisted housing and recommend solutions.

Establish a review process to resolve future policy differences.

Establish a system to preview proposed regulations that impact existing Section 515/Section 8 projects.


III.	Joint Tasks Proposed to Accomplish Objectives:

Develop a list of policy differences needing review and prioritize based on impact and complexity.

Establish a work group to: 1) conduct the reviews,
2) establish a timetable for each issue based on complexity, 3) identify possible solutions or recommended options and 4) recommend a method for implementing.

Develop a process to resolve future policy differences and to discuss the program impact of legislative and/or proposed regulatory changes.


IV.	Projected Timetable:
									Date to Be
	Task	Completed

	Develop list of issues.                 Completed  5/91

	Initial work group meeting.             Completed  6/91

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MOU-Exhibit A


	Subsequent work group meetings.               As needed

	Document the final resolution               As they are
	of each policy issue.                          resolved


V.	Process for Monitoring/Follow-up:
	
	Rural Development will assume monitoring responsibility for timetable.


VI.	Principal Staff Responsible:

            Name                     Unit           Number

	For HUD:Donald A. Kaplan        MF Mtgmt       708-3730
	        James J. Tahash         Planning       708-3944

	For Rural Development:
	         Thomas F. Gerlitz       MF Mtgmt       720-1599
	         James D. Tucker         Management     720-1618
	         Carl Grate              Servicing      720-1615






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HUD  RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING 

EXHIBIT B

	DATE: August 23, 1991

I.	Issue:

Compliance with legislated and regulatory mandates which require joint Departmental actions.


II.	Objective of Coordinated Activities:

Each party will identify any existing mandates, related to housing management activities, which they feel requires joint action.

Establish a process to evaluate the impact of future mandates.


III.	Joint Tasks Proposed to Accomplish Objectives:

Develop a list of any existing mandates that are not uniform.

Establish a work group to: 1) conduct the reviews, 
2) establish a timetable for each issue based on complexity, 3) identify possible solutions or recommended options and 4) recommend a method for implementing.

Each party will be responsible for reviewing legislative and/or regulatory policy changes in their program areas, advise the other party of possible impacts and provide them with an opportunity to comment on the change.

Meet as needed to develop possible solutions or recommended options when impact or complexity of the issue dictates.


IV.	Projected Timetable:
									Date to Be
	Task	Completed_

	Develop list of mandates.	Completed  5/91

	Initial work group meeting.                    Completed  6/91

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MOU-Exhibit B


	Subsequent work group meetings.               As needed

	Document the final resolution               As they are
	of each policy issue.                          resolved


V.	Process for Monitoring/Follow-up:

	Rural Development will assume monitoring responsibility for timetable.


VI.	Principal Staff Responsible:

                 Name                Unit            Number

	For HUD:Donald A. Kaplan       MF Mtgmt        708-3730
	        James J. Tahash        Planning        708-3944

	For Rural Development:
	         Thomas F. Gerlitz      MF Mtgmt        720-1599
	         James D. Tucker        Management      720-1618
	         Carl Grate             Servicing       720-1615




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	Exhibit A
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MEMORANDUM OF UNDERSTANDING

EXHIBIT C

	DATE: August 23, 1991

I.	Issue:

	Release of Junior Liens on HUD/Rural Development joint security.

II.	Objective of Coordinated Activities:

To permit orderly and timely liquidation by obtaining release of valueless or partially secured junior liens held by one agency when the other forecloses a prior lien or accepts a deed in lieu of foreclosure.  

III.	Tasks Proposed to Accomplish Objectives:

	Draft MOU as part of "umbrella" HUD - Rural Development MOU.
     
Handle settlement of liens at the Washington, D. C. level as the need arises.

IV.	Projected Timetable:

	Task	Completion Date
	1. Draft of Exhibit by Rural Development	April 1, 1991

	2. HUD Review of	August 30, 1991
	   Draft Exhibit				  

	3. Rural Development to notify Field	Within 45 days after
	   Staffs by Exhibit    	MOU is executed
	   to RD Ins. 1955-A

	4. HUD to notify Field	Within 45 days after
	   Staffs                                      MOU is executed

V.	Process for Monitoring/Follow-up:

As liquidation cases involving joint liens arise, staffs identified in Section VI of this Exhibit shall effect release of liens.  The following documentation will be provided to the junior lienholder:

1.  Copy of Agency's mortgage.
2.  Copy of the deed transferring ownership to the Agency.

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MOU-Exhibit C


3.  A title opinion indicating the Agency held a valid first-
    lien position.
4.  Copy of a current appraisal.


V.	Process for Monitoring/Follow-up (cont.):

For Valueless liens:  Within 30 days after receipt of a request and the above documentation, the Agency holding a valueless junior lien will prepare and execute the release and deliver it to the first lienholder, who will be responsible for recording the release.

For Partially secured liens:  In cases where the junior lien is partially secured and the senior lienholder forecloses, the junior lienholder agrees to be named in the suit, allowing proceeds to be distributed by lien priority.  When a deed in lieu of foreclosure is accepted by the senior lienholder, HUD and Rural Development officials identified in Section VI will negotiate a settlement amount to effect release of a partially secured junior lien, as outlined under "Valueless liens" above.


VI.	Principal Staff Responsible:

	     Name           Title                       Unit     Phone number
	
	  For Rural Development:
	Frances B. Calhoun  Director 	   SFH/SPM	  720-1452

	  For HUD:
	Paulette Porche'    Director	   TIASD	  708-0540

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	Exhibit A
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HUD  RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING (MOU)

EXHIBIT D

	DATE: August 23, 1991

I.   Issue:

	Market Impact.


II.  Objective of Coordinated Activities:

Better coordination between HUD and Rural Development in understanding market impact to preclude duplication of resources in the same market area and preclude adversely affecting existing or authorized projects of the sister Agency in the same market area.

Foster communications between the Agencies to improve knowledge of markets.


III. Tasks Proposed to Accomplish Objectives:

Jointly draft MOU as part of "umbrella" HUD-Rural Development MOU.


IV.  Projected Timetable:
	                              Responsible          Proposed  
         Task                        Agency          Completion Date

AN to Rural Development field Rural Development Completed 6/12/91

Directive to HUD field        HUD               September 1, 1991

Proposed rule to
 implement Rural Development
 reg changes                  Rural Development September 1, 1991

Final rule to 
  implement Rural Development
  reg changes                 Rural Development   March 1, 1992


V.   Process for Monitoring/Follow-up:

Rural Development MFH/PD Division will be responsible for meeting Rural Development timetable.

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MOU-Exhibit D


VI.  Principal Staff Responsible:

         Name                Title          Unit     Phone No.  
       For HUD:
      David Shenk            Director       EMAD     708-0577

       For Rural Development:
     Obediah G. Baker, Jr.  Director        MFH/PD   720-1604
     David J. Villano       Branch Chief    MFH/PD   720-1608
     Gail Z. McCowan        Specialist      MFH/PD   720-1608



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	Exhibit A
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HUD  RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING (MOU)

EXHIBIT E

	DATE: August 23, 1991

I.    Issue:

    	 Coordinate the implementation and monitoring efforts of
	 the Rural Development and HUD regarding the Handicap Accessibility.

II.   Objective of Coordinated Activities: 

	 Achieve better coordination between HUD and Rural Development in
	 their efforts to monitor the provisions of the Handicap
	 Accessibility Standards.

III.  Tasks Proposed to Accomplish Objectives:

	 Prompt a mutual exchange of information by having
	 Headquarters staff, i.e., Architects, Loan Officers,
	 and Engineers, of both Agencies attend training and
	 orientation sessions sponsored by the respective
	 Agencies.

      Jointly develop MOU to address Technical Assistance, 
      Compliance Procedures and handling of Complaints and 
      Compliance Activities.


IV.   Projected Timetable:
		Proposed
Task		Completion Date

Scheduled Orientation	September 15, 1991

Training of HUD and Rural Development staff	November 15, 1991

MOU for Technical Assistance and	November 15, 1991
compliance issues.


V.    Process for Monitoring/Follow-up:

	Rural Development MFH/PD and HUD responsible for meeting timetable.

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MOU-Exhibit E



VI.  Principal Staff Responsible:

	    Name              Title                Unit     Phone No.
	  For HUD:
	Merle Morrow          Attorney Advisor	FHEO    708-2618
  	                      to DAS/EC
     Jacelyn Shelton       Director              FHESec3 708-0836

	  For Rural Development:
      Obediah G. Baker, Jr.  Director            MFH/PD  720-1604
	 David J. Villano       Branch Chief        MFH/PD  720-1608
	 Rebecca Johnson        Specialist          MFH/PD  382-1608
	 Carlton Lewis          Branch Chief        EEO	   245-5530

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HUD  RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING (MOU)

EXHIBIT F

	DATE: August 23, 1991

I.    Issue:

    	 Coordination of Cost Certification and Cost Containment
	 Techniques:

II.   Objective of Coordinated Activities:

Achieve better coordination between HUD and Rural Development in understanding the cost certification and cost containment process and techniques of the two Agencies.

III.  Tasks Proposed to Accomplish Objectives:

Prompt a mutual exchange of policy information by having HUD and Rural Development Headquarters staff, i.e., Architects, Loan Officers, and Engineers, of both Agencies attend training and orientation sessions sponsored by the respective Agencies.

IV.   Projected Timetable:

Task  		Proposed
			Completion Date    Scheduled Orientation/Training
Session for HUD and Rural Development technical		September 15, 1991
support, program support and multi-
family housing program personnel.

V.    Process for Monitoring/Follow-up: 

	Rural Development MFH/PD responsible for meeting timetable.

VI.   Principal Staff Responsible:

    Name              Title          Unit  Phone No.
For HUD:
Howard Mayfield       Director       TSP     708-0035

For Rural Development:
Obediah G. Baker, Jr.  Director       MFH/PD  720-1604
David J. Villano       Branch Chief   MFH/PD  720-1608
Gail McCowan           Specialist     MFH/PD  720-1608

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HUD  RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING (MOU)

EXHIBIT G

	DATE: August 23, 1991

I.    Issue:

    	 Access HUD revised Congregate Services Program

II.   Objective of Coordinated Activities:

	 Develop cooperative regulation or Agreement with HUD 
	 for use in implementing the Congregate Services Program

III.  Tasks Proposed to Accomplish Objectives, respectively:

	 A.  Develop regulation              HUD and Rural Development

	 B.  Provide guidance to field       HUD and Rural Development
	     staff as needed

IV.   Projected Timetable:
				      	     
         Task	Proposed
	   	Completion Date

 	A.  Regulation/Agreement            	August 30, 1991
	    Formulation     	

	B.  Training and Guidance           	September 20, 1991
		   to Field Offices

V.    Process for Monitoring/Follow-up respective tasks:

	A.  Monthly coordination

	B.  Review with HUD and exchange comments on the 
	    proposed regulation or Agreement.

VI.   Principal Staff Responsible: 

	    Name              Title          Unit   Phone No.
  	  For HUD:
	Jerry Nachison       Branch Chief    HMAH	708-3291

	  For Rural Development:
      Obediah G. Baker, Jr.  Director     MFH/PD  720-1604
	 John Pentecost         Branch Chief MFH/PD  720-1606
	 Sue Harris             Specialist   MFH/PD  720-1606

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	Exhibit A
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HUD  RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING 

EXHIBIT H

	DATE: August 23, 1991

I.	Issue:

Addressing and preventing homelessness in rural areas.

II.	Objectives of Coordinated Activities:

A.  Enhance understanding of rural homelessness and methods for preventing it.

B.  Coordinate management and financing approaches for providing housing and supportive services for homeless.

C.  Use established Agency policy goal of 3 percent of Rural Development Section 502 non-program inventory housing for transitional shelter for homeless. 

III.	Tasks Proposed to Accomplish Objectives, respectively:

A.  Share methodology for counting the homeless, jointly define "homeless", utilize HUD's contract with the Housing Assistance Council to study the delivery of McKinney Act, other Federal, State and local programs for the rural homeless.

B.  Share relevant regulations and approaches, make inventory of housing resources and services, including use of vacant Rural Development-financed rental units.

C.  With AN to Rural Development field staff and by coordination with HUD, Rural Development to promote use of existing non-program housing inventory that would be available for lease or sale for homeless.  Work jointly to identify and overcome barriers to use of such units for transitional housing.  

IV.	Projected Timetable:
									Date to Be
	Task	Completed

	A.On Homeless Study	Ongoing through
		December 1991

	B.On Management and 
	Financing Approaches	September 1, 1991

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MOU-Exhibit H


	C.On Use of Non-program	Ongoing
	Inventory, plus AN to Rural Development	AN by 9/15/91
	field staff	    for FY 92


V.	Process for Monitoring/Follow-up respective tasks:

A.  Monthly coordination
B.  Initial meeting, then later HUD review and comment on Rural Development
    proposed regulations.
C.  Semi-annually, provide HUD a list of non-program properties by
    State.


VI.	Principal Staff Responsible:

	    Name              Title          Unit       Phone No.
  	  For HUD:
	Jim Forsberg       Director          CPD/SNAP   708-3291
	Bill Molster                         CPD/SNAP   708-1234
	Mike Roanhouse                       CPD/SNAP   708-1234

	  For Rural Development:
	 John Pentecost    Branch Chief      MFH/PD     720-1606
	 Tom Sanders       Specialist        MFH/PD     720-1606
      Amy Donahue       Program Analyst   P&E/PAS 703 756-6420
	 Reed Petersen     Branch Chief      SFSPM	 720-1452

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	Exhibit A
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HUD  RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING 

EXHIBIT I

	DATE: August 23, 1991

I.	Issue:

Communication on Loan Limits and Approved Lenders (mortgagees).


II.	Objective of Coordinated Activities:

Share information on HUD loan limits and housing sales prices with Rural Development.

Share information on approved lenders and removal of lenders from list.


III.	Tasks Proposed to Accomplish Objectives:

HUD will send copies of new/revised list of loan limits to Rural Development as they are published in the Federal Register.

HUD will verify lender approval to Rural Development by telephone initially.  Develop jointly a method for long-term information between HUD Regional Offices and Rural Development State Offices.


IV.	Projected Timetable:
									Date to Be
	Task	Completed

Copies of new/revised loan limits	As revisions     				are completed

Lender Approval List	As needed

Method for long-term communication	10/01/91


V.	Process for Monitoring/Follow-up:

SFHPD to track progress.

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VI.	Principal Staff Responsible:

	Name                  Title        Unit          Number
	  For HUD:
	Morris (Bud) Carter  Director      HSID	    708-2700
	Bill Heyman          Director       HSL	    708-1824
	Parker Deal          Director      HSLM	    708-2830

	  For Rural Development:
	Larry Hammond        Director      SFHPD         720-1474
	Jim Craun            Branch Chief  SFHPD         720-1474

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	Exhibit A
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HUD  RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING 

EXHIBIT J

	DATE: August 23, 1991

I.	Issue:

Coordinate HUD and Rural Development efforts to meet goals of Paper Work Reduction Act as it regards assisted housing programs.


II.	Objective of Coordinated Activities:

Jointly develop a uniform residential loan application to be used for all housing assistance loan applications.  

Identify other common-use single family housing loan origination forms that can be used Nationwide by each Agency.


III.	Tasks Proposed to Accomplish Objectives:

Rural Development to join in government-wide effort to implement "Uniform Residential Loan Application" (URLA).

Work with HUD to identify other common-use forms.


IV.	Projected Timetable:
										Date to Be
      Task		Completed

Rural Development to review URLA-submit comments
to HUD		8/31/91

HUD, Rural Development, VA, FNMA and Freddie MAC
to implement use URLA		9/15/91

Joint effort to identify other forms		ongoing


V.	Process for Monitoring/Follow-up:  

	N/A

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VI.	Principal Staff Responsible:

	Name                  Title      Unit          Number
	  For HUD:
	Morris (Bud) Carter  Director    HSID          708-2700

	  For Rural Development:
	Larry Hammond        Director    SFHPD         720-1474
	Jim Craun            Branch ChiefSFHPD         720-1474

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HUD  RURAL DEVELOPMENT MEMORANDUM OF UNDERSTANDING

EXHIBIT K

							DATE:  October 16, 1991

I.   Issue:

Rural Development Single Family Housing (SFH) inventory properties used in the HUD HOPE 3 program.

II.  Objective of Coordinated Activities:

Rural Development acquires SFH properties in inventory as a result of its loan program.  Inventory properties suitable for Rural Development program applicants are repaired and sold, preferably to program applicants on program terms. Nonprogram properties are broom cleaned and sold for cash or on nonprogram terms.

HUD, through the HOPE 3 program, provides homeownership opportunities for low income families and individuals (Participants) by providing grantees (Grantees) with Federal assistance to initially acquire and rehabilitate government owned properties from government agencies and sell them to Participants at affordable prices, after making needed repairs.  Alternatively, Grantees can facilitate direct acquisition and repair of housing by Participants by providing financing, funds for down payments, repairs and/or subsidized interest rates.

Rural Development and HUD cooperate and coordinate the use of Rural Development inventory properties for the benefit of Participants.

III. Tasks Proposed to Accomplish Objectives:

1.  Upon request, Rural Development will provide to Grantees lists of all SFH properties in inventory in the areas of interest.

2.  Grantees may submit to Rural Development, for themselves or a Participant, a written offer for a property to be closed within 30 days.

3.  Whether or not the property was listed for sale, Rural Development may sell and will give preference to offers from Grantees and Participants for inventory sales.  If Rural Development contracts for repairs have not been awarded, repairs will not be made, except for decent, safe and sanitary (DSS) requirements.

4.  If Rural Development has listed the property for sale, the listing will be withdrawn when the written offer from a

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Participant or Grantee is received by Rural Development.  Rural Development will not pay a sales commission for properties sold to Participants or Grantees.

5.  Rural Development will repair NP properties not meeting Rural Development DSS requirements to remove the decent, safe and sanitary problem(s) if the value of the property increases more than the cost of repairs.  Otherwise, Rural Development will sell NP properties with the DSS clause.  Grantees are responsible for meeting DSS conditions and having the DSS clause removed from the deed before Participants occupy the dwelling.

6.  Rural Development will sell properties to Grantees or Participants with a 10 percent price discount from current market value or the listed price, which ever is less.

7.  Rural Development may sell program properties to Grantees or Participants with Rural Development program financing or for cash.  Rural Development may sell nonprogram properties to Grantees or Participants with Rural Development nonprogram financing or for cash.  The buyer must meet all other Rural Development eligibility requirements.

8.  Rural Development will close the sale within 30 days.  If Grantee or Participant cannot close within 30 days, Rural Development will reject the offer.

IV.  Projected Timetable:

           Task                            	Completion Date

1.  Draft Exhibit by Rural Development	October 16, 1991

2.  HUD Review Draft Exhibit	November 1, 1991

3.  Rural Development notice in Federal Register  	Within 30 days after
		MOU is executed

4.  Rural Development notify Fields Staffs	Within 45 Days after
		MOU is executed

5.  HUD notify Field Staffs	Within 45 days after
		MOU is executed

V.   Process for Monitoring/Follow-up:

Rural Development and HUD responsible for meeting the timetable.  Periodic reviews an contacts between Rural Development and HUD will assess the progress of this cooperative effort.

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VI.  Principal Staff Responsible:

Name				Title/Unit				Number

For Rural Development:
Frances B. Calhoun  Division Director, SFH/SPM   	720-1452
Reed J. Petersen    Branch Chief, SFH/SPM        	720-1452

For HUD:
Marcia Dodge        Deputy Director, CPD/OUR     	708-2685
	John Garrity        Director, HOPE 3             	708-0324

oOo

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