15.1 OVERVIEW

The Agency assumes management responsibility for 2 types of properties: custodial and 

real estate owned (REO). Custodial property is borrower-owned property which has been 

abandoned. REO is Agency-owned property to which the Agency has acquired title, either as a 

result of foreclosure or conveyance by deed in lieu of foreclosure. This chapter outlines the 

requirements for management of each type of property.

Current responsibilities of on-site management activities are split between the Field 

Offices and the Servicing and Asset Management Office (Servicing Office) during the 

liquidation process for custodial properties. The Servicing Office continues to be responsible for 

the financial management.

Responsibilities for oversight of on-site management is now referred to the Responsible 

Party. The Responsible Party may be both the Servicing Office, the Field Office or an 

independent authorized government contractor.

The goal of property management is to protect the Government’s interest; consequently, 

efforts to secure property should begin as soon as the Agency has control.

SECTION 1: PROPERTY MANAGEMENT METHODS AND ACTIVITIES

15.2 MANAGEMENT METHODS ANDCONTRACTS

The Agency may conduct the management activities discussed in this chapter using 

Agency staff or may contract with qualified entities to perform them. The method of management 

depends on such factors as the number of properties to be managed, their location, condition, the 

necessary maintenance, and the availability of qualified staff. In some cases, a simple maintenance 

contract is all that is needed; in others, the Agency may require a complete management contract 

where a contractor provides all property management services, including, but not necessarily 

limited to securing and cleaning up the structure, yard work, arranging for and inspecting repairs, 

paying utilities, and coordinating with contractors, potential buyers or brokers for access to the 

property.

A. Selecting a ManagementContractor

Management contractors must be selected in accordance with Agency procurement procedures 

under RD Instruction 2024-A.

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CHAPTER 15: MANAGING CUSTODIAL AND 

REO PROPERTY

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Paragraph 15.2 Management Methods and Contracts

B. Management Contract Requirements

At a minimum, management contracts must:

• Allow for properties to be added or removed from the contractor’s assignment, 

whenever necessary, such as when a property is taken into custody, acquired or sold 

during the period of a contract; and

• Prohibit the preparer or his/her associates from doing any of the repair work when a 

contract calls for specification writing services.

If a contract includes marketing or broker services and involves management of 5 or more 

single family homes in the same subdivision, the contractor must develop and obtain Agency 

approval of an Affirmative Fair Housing Marketing Plan, as described in RD Instruction 1901-E. 

The contracting official approves the plan, however, any questions that might arise with respect to 

an Affirmative Fair Housing Marketing Plan should be directed to the Civil Rights Coordinator in 

the State Office.

15.3 TAKING POSSESSION

A. Taking Custodial Possession

The Agency may need to take custody of security property when a borrower becomes 

incapacitated, dies or has abandoned a security property. When the Servicing Office is unable to 

contact a borrower, the Responsible Party will be requested to inspect the property to determine 

its status and to attempt to contact the borrower. When the Field Office believes that a property 

may be abandoned, it will report to the Servicing Office.

1. Determining Whether A Property Has Been Abandoned

The determination that a property has been abandoned requires significant 

investigation and documentation. In addition to the actions described in this 

paragraph, the Responsible Party must follow any procedures required by State or 

local law in order to confirm the determination of abandonment and to take custodial 

possession. A property is not considered abandoned if the borrower occupies the 

property, even if it is not being well maintained. Similarly, a property is not 

considered abandoned when the borrower does not occupy the dwelling but has made 

arrangements for its care. The Agency cannot act to obtain possession of a property as 

long as a lien holder has possession of the property, or the borrower or the lien holder 

has a right to lease proceeds. As a minimum, the Responsible Party must:

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Paragraph 15.3 Taking Possession

• Attempt to determine whether the security property is occupied, and if not by the 

borrower, what are the rights of the occupant; if any;

• Attempt to determine the location of and/or contact the borrower through sources such 

as neighbors, the postal service, utility companies, last-known employers, and relatives; 

and

• Determine whether there are other liens on the property and if liens exist, whether the 

lien holder(s) are willing to work with the Agency to secure the property.

2. Recommendation for Taking Custody

The Responsible Party will submit a report of its finding to the Servicing Office with a 

copy to the State Director advising that it appears the property has been abandoned and the 

Agency needs to assume responsibility for it in order to protect the security. Alternatively, 

if the Responsible Party reports that the property is occupied, the report will give details as 

to whether the occupant is under a lease or is unauthorized. The Responsible Party will 

provide any other relevant details and make the decision to take custodial possession of 

the property, as appropriate. The Responsible Party will notify the Servicing Office when 

the action has been taken.

3. Liquidation

The need to take custodial possession of a property may occur before or after a loan has 

been accelerated. If liquidation is not already in progress, taking custodial possession 

should initiate the process. The responsibility for conducting liquidation activities remains 

with the Servicing Office, supported by Field Office staff as required.

B. Acquisition of an REOProperty

Once the Agency acquires a property a new REO case file should be created from the 

original case file by removing and placing into the new file the title to the property, and recent 

inspection reports, appraisals, or other documentation related to the physical condition or value of 

the property. No information related to the borrower is needed in the REO file. Any documents 

relating to due diligence and response actions (clean-up activities) should also be placed in the 

REO file; however, these documents must be retained indefinitely to minimize Agency liability 

and should be so labeled.

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15.4 INSPECTING AND SECURING CUSTODIAL AND REOPROPERTY

Inspection should be made of acquired property as soon as feasible after the foreclosure 

sale or other means of acquisition—usually within seven days. The Responsible Party must 

inspect the property to:

• Determine what steps need to be taken to further ensure its security and maintain its 

value.

• Identify whether the property is occupied and, if occupied, the intent of the occupants.

• Classify the property as program and nonprogram and evaluate the need forrepairs.

A. Inspecting and Classifying the Property [7 CFR 3550.251(c)(1)]

The Responsible Party must designate REO property as program or nonprogram (NP) 

property after considering factors such as size, design, possible health and/or safety hazards, and 

obsolescence due to functional, economic, or locational conditions. A property that meets the 

requirements for program property, as described in Chapter 5, is classified as program property. 

Property that has been enlarged or improved, so that its value is clearly above program standards, 

or a property that would require major redesign or renovation to be brought to program standards, 

should be classified as NP property. REO property in an area no longer designated rural is treated 

as if it were still in a rural area.

For program property, a listing of needed repairs or improvements will be prepared. For 

NP properties, a listing should be prepared of any health and safety hazards which must be 

removed to release deed restriction. Repairs, if required, are typically a condition of sale and 

repair lists should be incorporated with the sale listing for all REO.

If the REO is occupied, preparation of the repair list may need to be delayed until the 

property is vacated, depending on the cooperation of the occupants. In this case, the status of the 

property should be monitored regularly.

The basis for classification as program or nonprogram must be thoroughly documented.

Improper classification of the REO could result in an unsound loan if, for example, the remaining 

life of the property is less than the term of the loan. (A manufactured home with 15-20 years 

remaining life is not sound security for a subsidized loan with a minimum term of 25 years.) 

Classification as NP may significantly reduce the amount the Government could recover 

(especially if the REO is then leased) or could deprive a program-eligible family of an affordable 

home.

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Paragraph 15.4 Inspecting and Securing Custodial and REO Property

B. Securing Custodial and REO Property

When the Agency assumes management responsibility and takes possession of either a 

custodial or REO property, immediate steps must be taken to inspect and secure the property 

whether by the Responsible Party.

1. Physical Security of Vacant Properties

If the property is vacant, it should be locked or otherwise secured and a no trespassing 

notice should be posted to prevent entry by unauthorized persons. For REO only, after an 

inspection determines utility systems are in safe operable condition, utility companies 

should be contacted to maintain or reinstate utility service. An inventory should be made 

of any nonsecurity personal property left on the premises and efforts made to identify any 

owners or lien holders.

2. Occupied REO Properties

REO property may be occupied by a tenant under a lease with the former borrower or 

by the borrower. The Agency may decide to honor an existing lease if it is in the 

Government’s interest, or it may have to evict an unauthorized tenant.

When an REO property is under an existing lease and the Agency decides to continue 

the lease, the lessee must be notified, in writing, that the Agency has acquired the former 

lessor’s rights under the lease and that all payments should be remitted to the Servicing 

Office. If a lease is to be terminated, the lessee must be notified, in writing, that their 

lease is being terminated in 30 days, and they must vacate.

Lease payments due, payable, and received before the date the Agency acquired the 

property are applied to the borrower’s account. If there is a surplus, it is refunded to the 

former borrower. Lease payments due and payable after the date the Agency acquired the 

property are applied to a lease account established by the Servicing Office in the name of the 

lessee.

The Office of the General Counsel (OGC) should be contacted for advice and 

assistance when it is necessary to evict a tenant in order to obtain possession of REO 

property particularly if it is leased. A State Supplement will provide explicit instructions.

15.5 DISPOSITION OF NONSECURITYPROPERTY

The Agency has no legal claim on nonsecurity property. State or local law may affect 

procedures for disposing of property left on the premises
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Paragraph 15.5 Disposition of Nonsecurity Property

of a custodial or REO property. The Responsible Party must comply with any State or local 

requirements, as well as the procedures discussed in this paragraph. If the owner or lien holder of 

any personal property that remains in custodial or REO property can be identified and located, the 

Responsible Party must offer them a reasonable opportunity to remove the property. Any verbal 

conversations with the owner of the property should be confirmed in writing.

A. Custodial Property

The Agency cannot remove nonsecurity personal property from custodial properties, unless 

it cannot be safely stored, there are hazards that threaten the personal property (such as a leaking 

roof), or the personal property itself presents a hazard (such as flammables or explosives).

B. REO Property

1. Notice to Owners or Lien Holders of Personal Property

If the property is not retrieved after the initial notification, a certified letter should be 

sent, return receipt requested, notifying the owner or lien holder of the date on which the 

Agency will dispose of the property, that the property may be retrieved before the 

disposition upon payment of any expenses incurred by the Agency related to the personal 

property, such as advertisement or storage.

2. Disposal of UnclaimedProperty

The Responsible Party will dispose of unclaimed property in accordance with its 

value and conforming with local practices. For example, if there are items of significant 

value, an advertisement may be placed in the local newspaper.

3. Income from Disposition

Proceeds from the sale of items under lien should be paid to any owner or lien holder 

after deducting Agency selling expenses. If there is no known owner or lien holder, 

proceeds are applied to the REO account.

15.6 TAXES AND INSURANCE

A. Taxes

REO property is subject to Real Estate taxation by State and local political jurisdictions in the same 

manner and to the same extent as other properties, unless State law specifically exempts property owned by 

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the Federal Government. If a jurisdiction changes the law to begin taxing Government-owned property, 

only taxes accruing after the effective date of the change will be paid. The Responsible Party will 

notify the taxing authority, in writing, when title to real estate is acquired

Paragraph 15.6 Taxes and Insurance

and provide the Servicing Office address to which tax bills should be sent during Agency ownership.

If the value of the property is significantly less than the value at which it is being taxed, as 

soon as it is acquired, the Agency may request a new assessment by the local taxing authority.

If property is acquired subject to a prior lien, before the Agency pays taxes, the 

Responsible Party will contact the prior lien holder to determine if that lien holder will pay the 

taxes. Taxes on program property are paid when due. Taxes on nonprogram property may be 

deferred until the property is sold if the taxes that accrue before disposition may exceed the value 

of the property. If the taxing authority schedules a tax sale before the Agency can sell the property, 

the Responsible Party should calculate and compare the net recovery values that would result from 

paying the taxes and continuing sales efforts or letting the property be sold for delinquent taxes to 

determine which approach is in the Government’s best interest. See Handbook-2-3550, 

Attachment 6-A for a net recovery value worksheet.

B. Insurance

1. Custodial Property

Insurance on custodial property will not be canceled. The Agency will not pay 

additional premiums to continue coverage.

2. REO Property

Insurance will not be canceled when property is acquired. However, the Agency will 

not pay additional premiums to continue coverage. If it is necessary to file a claim, 

Responsible Party should submit the claim and direct that insurance proceeds be 

forwarded to the Servicing Office.

15.7 ENVIRONMENTAL REQUIREMENTS

The Agency must complete the appropriate level of environmental review under the 

National Environmental Policy Act for proposed management activities involving custodial and 

REO properties in accordance with RD Instruction 1970 series “Environmental”

Paragraph 15.6 Taxes and Insurance
Paragraph 15.7 Environmental Requirements

Management activities subject to environmental review include conducting 

repair/maintenance activities, selling, or leasing Agency-owned real property.

Conducting repair/maintenance activities, selling, or leasing of custodial and REO 

property will normally qualify as a categorical exclusion provided no extraordinary 

circumstances exist (see RD Instruction 1970-B, section 1970.52) and the proposed action will 

not result in a change in use of the property in the reasonably foreseeable future. Refer to RD 

Instruction 1970 series “Environmental” for further direction.

When certain environmental resources are present, or when certain extraordinary 

circumstances exist, specific limitations or constraints are imposed by environmental law on the 

Agency’s repair and maintenance, selling and leasing activities. In such cases, an Environmental 

Assessment (EA) rather than a categorical exclusion, may be required to address the situation 

properly. Consultation with RD Instruction 1970 series “Environmental”, as well as the State 

Environmental Coordinator, is recommended before proceeding in the following circumstances.

A. Circumstances Necessitating an EnvironmentalAssessment

1. Coastal Barrier Resources System(CBRS)

Any action proposed to be taken on a custodial or REO property within a CBRS must 

be coordinated with the State Environmental Coordinator and the Regional Director of 

the U.S. Fish and Wildlife Service (USFWS). In emergency situations to prevent 

imminent loss of life, imminent substantial damage to the inventory property, or the 

disruption of utility services, minimum steps necessary to prevent such loss or damage 

may be taken without first consulting the USFWS as long as the Regional Director of the 

Service is immediately notified of the emergency action taken.

Maintenance or repair is prohibited for property located within a CBRS if:

• The action goes beyond maintenance, replacement-in-kind, reconstruction, or 

repair and would result in the expansion of any roads, structures or facilities;

• The action is inconsistent with the purposes of the Coastal Barrier Resources Act

(CBRA) 16 U.S.C. 3501. et. seq.; or

• The property to be repaired or maintained was initially the subject of a financial 

transaction that violated the CBRA.

The Administrator should be asked to review any cases where the Agency and the 

USFWS disagree on the effect of a plan of action or where otherwise prohibited 

maintenance and repair must be undertaken.

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Approval for action will not be granted unless the Administrator determines, through 

consultation with the Department of Interior, that the proposed action does not violate the 

provisions of the CBRA.

2. Historic and Archaeological Resources

Properties that are listed or eligible for listing on the National Register of Historic Places, 

in whole or in part, will be repaired as necessary to protect their historic integrity after 

consultation with the State Historic Preservation Officer (SHPO) and the Advisory Council on 

Historic Preservation. If a property is listed or eligible for listing on the Register and also is 

located within the CBRS, the property cannot be repaired without the prior approval of the 

USFWS.

The Responsible Party will review the current Register to determine if the property is 

listed. If the property is not listed, the Responsible Party will consult with the SHPO when the 

property is considered potentially eligible for the Register. A property is considered potentially 

eligible if it contains a structure more than 50 years of age or, regardless of age, if the property is 

known to be of historic or archeological importance, or has apparent significant architectural 

features.

Additionally, for properties located on Tribal land or in Indian country, consultation will 

be made with the Tribal Historic Preservation Officer (THPO) to determine if the property is 

known to be of historic or archeological importance.

3. Floodplains andWetlands

If the Agency is considering a substantial improvement or repair to custodial or REO 

property located in a flood plain or wetland, the Agency must first consider whether there 

are practicable alternatives to such further investment in the floodplain or wetland area.

For example:

• Could the property be sold “as is” with notice of floodplain/wetland hazard?

• Could the property be sold “as is” with a requirement that the structure be removed 

from the site?

• Could the Agency remove the structure first and sell the land with notice ofhazard?

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If there are no practical alternatives to the substantial improvements, then the Agency 

may proceed with the improvements, provided it includes any practical mitigation measures. On 

an existing structure, mitigation will generally involve some form of floodproofing, such as 

elevating hot water tanks, or heating and ventilation units.

A substantial improvement is defined as any improvement the cost of which equals or 

exceeds 50 percent of the market value of the structure either (1) before the repair is started, or (2) 

if the structure has been damaged, before the damage occurred. The cost of compliance with 

health, sanitary and safety codes is not included in the calculation of the substantial improvement 

cost, nor is the cost of repair to an historic structure included. If the repairs do not qualify as 

substantial, the Agency does not need to search for alternatives or mitigation measures.

4. Reportable Underground StorageTanks

Properties that contain certain types of underground storage tanks must be reported to 

the State agency identified by the Environmental Protection Agency (EPA) within 30 

days of Agency acquisition. Attachment 15-A provides a list of those underground 

storage tanks which must be reported and those which are exempt from reporting 

requirements. A State Supplement will provide the necessary EPA forms or acceptable 

State forms that may be used to accomplish the reporting, as well as detailing any 

additional State reporting requirements. A copy of the report must be maintained in the 

REO file, and any prospective buyers of the property must be furnished with a copy of 

the report.

B. Lease or ManagementContract

1. Historic and Archaeological Resources

A property that is listed or eligible for listing on the National Register of Historic 

Places may be leased or operated by management contract only after the Agency and the 

SHPO (or THPO) determine that the lease or contract will adequately ensure the property’s 

condition and historic character.

2. Floodplains andWetlands

Before executing a lease for a property containing wetlands or located in a special flood 

or mudslide hazard area identified by the Federal Emergency Management Agency 

(FEMA), Field Staff must provide written notice of the hazard to the lessee. The notice 

must be attached to the lease. Any management contract must require the contractor to 

fulfill this obligation.

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The lease or management contract for custodial or REO property containing wetlands 

or located in a floodplain area will also specify any uses of the property by the lessee or 

tenant that are restricted under any Federal, State or local floodplain and wetland 

regulations, as well as other appropriate restrictions. Examples of use restrictions would 

include prohibition of draining or filling of floodplain or wetland areas, and prohibitions of 

new above-ground construction on that portion of the property located in the floodplain or 

wetland area.

3. Hazardous Substance Activity -Notification

All property considered for lease must be evaluated for possible hazardous substance 

contamination. To do this, the Responsible Party completes Attachment 5-B, Single Family 

Housing Site Checklist. (If Attachment 5-B was completed prior to acquisition of the property, 

the Responsible Party must determine if the attachment should be updated.) If the completed 

or updated attachment indicates potential contamination, it will be sent promptly to the State 

Environmental Coordinator for further evaluation and guidance. All clean-up actions will be 

taken under the guidance of the State Environmental Coordinator. For further information or 

notification, refer to Paragraph 16.18.

15.8 MANAGEMENT OF HAZARDOUS SUBSTANCES

A reasonable and prudent attempt will be made to minimize the Agency’s liability under 

hazardous substance and hazardous waste laws, and a diligent effort will be made to evaluate economic 

risks to real estate posed by the presence of contamination from hazardous substances, hazardous 

wastes, and petroleum products, including underground storage tanks. The elements of potential 

liability and economic risk are addressed by the Agency by performing due diligence.

Due diligence is the process of inquiring into the environmental condition of real estate in the 

context of a real estate transaction to determine the presence of contamination from hazardous 

substances, hazardous wastes, and petroleum products, and what impact such contamination may have 

on the market value of the property.

The Responsible Party initiates due diligence by completing Attachment 5-B. If the 

completed attachment indicates a potential for contamination, it will be sent promptly to the State 

Environmental Coordinator for further evaluation and guidance.

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Paragraph 15.8 Management of Hazardous Substances

For all servicing actions that require a determination of market value, the appropriate level of 

due diligence will be performed in conjunction with the appraisal. Due diligence also must be 

performed in conjunction with any servicing action that may lead to acquisition of security property.

The Responsible Party should be aware of suspicious situations during security inspections of 

custodial and REO property. If unauthorized dumping of potentially hazardous material is noted, due 

diligence will be performed.

To minimize the Agency’s liability, any response action taken by the Agency in responding to 

a release or threatened release of hazardous substances or petroleum products on inventory property 

will be taken in consultation with and at the recommendation of the appropriate environmental 

regulatory authority. In the case of custodial property, the State Environmental Coordinator may 

initiate, as necessary, limited emergency response actions to stabilize an emergency or imminent and 

substantial threat to human health and the environment.

If the Agency is notified or made aware of the presence of an underground storage tank on 

custodial or REO property, the Responsible Party will ensure that the tank complies with appropriate 

environmental regulatory authority requirements or is removed. When reinstalling a fuel storage system, 

aboveground storage tanks should be used where feasible.

15.9 PHYSICAL MAINTENANCE AND REPAIR

Custodial property will be maintained and repaired only as needed to protect the security of 

the property and to prevent deterioration. In the event of damage or theft, the procedures described 

under Paragraph 15.9 A. should be followed.

REO property will be broom swept, free of trash and debris outside and maintained and 

repaired as needed to ensure the safety of potential buyers or contractors. Other repairs, including 

but not limited to those that improve the property to decent, safe, and sanitary (DSS) standards, or 

are needed to mitigate a negative effect on neighboring property may be made if the Responsible 

Party determine them to be necessary to market the property expediently, and they increase the 

market value by approximately the cost of the repairs.

A. Vandalism and Theft

Responsible Party will report willful damage or theft to the local law enforcement 

authorities and in whatever manner necessary, to attempt to resolve the incident, including signing 

complaints and testifying at hearings or trials. The Responsible Party should send a written report 

of the incident to the Servicing Office.
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Paragraph 15.9 Physical Maintenance and Repair

Damage to REO program property as a result of vandalism and theft may be repaired as 

necessary to continue marketing. Repairs may include cost-effective improvements to minimize 

the likelihood of future damage, such as increased lighting, security fencing and removal of shrubs 

that limit visibility. Nonprogram property should be broom swept but generally will not be 

repaired unless necessary to prevent deterioration. Custodial property should be repaired only to 

protect the security and to prevention deterioration.

B. Off-Site Repairs or Improvements

The Agency may require off-site repairs or improvements to protect property from damage, 

to protect the Government’s interest, or to enhance the marketability of property. In the case of 

multiple REO units in a subdivision, such improvements may include construction or 

reconstruction of roads, sewers, utility lines, subdivision entries, street signs, or central mail 

receptacles.

Off-site improvements must be approved by the Deputy Administrator, Single Family 

Housing. To obtain approval, the Responsible Party must prepare a justification that demonstrates 

failure to make the improvements would likely result in a property net recovery value loss greater 

than the expenditure and that there are no other feasible means with State or local entities, to 

accomplish the same result.

To obtain off-site improvements, the Agency may enter into a contract with a private 

company or enter into a cooperative agreement with a State or local government or other entity to 

obtain repairs or improvements. Under a cooperative agreement, the entity will provide money, 

property, services, or other items of value to the entity to accomplish a public purpose. While 

cooperative agreements are not a contract action, the authority, responsibility, and administration 

of a cooperative agreement must be consistent with contract action. The OGC should be consulted 

when a cooperative agreement is considered.
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Paragraph 15.9 Physical Maintenance and Repair

C. Lead-Based Paint Disclosure

The Residential Lead Based Paint Hazard Reduction Act of 1992, 42 U.S.C. 4822 et seq., 

requires lessors of housing built before 1978 who receive Federal assistance to provide the lessees 

with information about the housing’s lead history and general information on lead exposure 

prevention.

Specifically, before the lessee becomes obligated under any contract to lease the housing, 

Field Staff must:

• Complete the Lead-Based Compliance Key, which can be found at: 

https://leadpaint.sc.egov.usda.gov/LBPWeb/lbpQuestionaire..

• Provide the lessee with the lead hazard information pamphlet, Protect Your Family 

from Lead in Your Home, available from the National Lead Information Clearinghouse 

at 1-800-424-LEAD, or a similar EPA-approved pamphlet developed by the State; and

• Disclose the presence of known lead-based paint and/or lead-based hazards in such 

housing and provide the lessee with any lead hazard evaluation report available to the 

Agency.

• Make sure that the requirements of 24 CFR Part 35, Subparts A, B, and C have been 

met.
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SECTION 2: SPECIAL USES

15.10 LEASING CUSTODIALS AND REO

Generally, neither REO nor custodial property is leased. However, in special cases, such as 

when custodial property is subject to lengthy liquidation proceedings or legal problems prohibit the 

immediate sale of an REO property, the property may be leased. Custodial property cannot be 

leased if extensive repairs are necessary in order for it to be inhabitable. Properties subject to 

redemption rights cannot be leased unless the Responsible Party obtains prior approval from OGC. 

Property which does not meet decent, safe and sanitary standards will not be leased.

It is preferable to lease the property to an intended buyer. The Agency may require a 

prospective renter to make a purchase offer, and submit an application for credit and a credit report 

paid for by the applicant. The rent charged should be a market rent equivalent to rents of similar 

properties in the area. If the lessee is a program applicant, the monthly rent may be based on the 

estimated monthly loan payment taking into consideration any payment assistance, plus 1/12 the 

sum of the estimated real estate taxes, property insurance, and maintenance payable by a 

homeowner. In no case will a lease be for a token amount, even if the tenant is willing to barter for 

maintenance or repair services.

A lease form approved by OGC will be used. A copy of the lease should be sent to the 

Servicing Office, where a lease account will be established in the lessee’s name.

When a lease is terminated, or when the property is sold before expiration of the term 

shown on the lease submitted to the Servicing Office, the Responsible Party must notify the 

Servicing Office of the termination and the effective date of the termination.

A. Security Deposits

The Agency requires a security deposit of one month’s rent, except from nonprofit 

organizations or public bodies. Security deposits are remitted to the Servicing Office. When a 

tenant vacates the property, the Responsible Party sends a memorandum to the Servicing Office

asking for the return of the deposit to the Responsible Party for delivery to the lessee. If the 

deposit is to be retained by the Agency, it is applied to the borrower’s account for custodial 

property or to the REO account, as appropriate.

B. Costs and Income

Expenditures on leased custodial properties are charged to the borrower’s account. 

Expenditures on REO property are charged to the REO account. The Agency does not pay 

utilities or any other costs of operation of leased property. Lease proceeds for custodial 

properties are applied to the borrower’s account. Proceeds for custodial properties are 

applied to the borrower’s account.
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15.11 SPECIAL USES OF REO

A. Transitional Housing for the Homeless

The Agency has entered into a Memorandum of Understanding with the U.S. Department 

of Health and Human Services (HHS) (see Attachment 15-B) that states that HHS will direct 

community groups to the Agency to identify specific REO properties that may be available as 

shelter projects. REO property may be leased for up to 10 years to nonprofit organizations as 

transitional housing for the homeless for $1.00 with prior approval from the Deputy 

Administrator, Single Family Housing in accordance with 42 U.S.C 11408a. The lessee assumes 

responsibility for real estate taxes on the leased property, any needed repairs to the property, and 

regular maintenance of the property.

Leases executed under this program must make the local nonprofit organization responsible 

for all liabilities and costs arising out of the habitation of the property. The Agency must inspect 

the property after the lease is executed to ensure that property is being maintained and used for its 

intended purposes. Inspections should be made at least yearly thereafter.

Attachment 15-C includes a fact sheet that can be used by both the Agency and entities 

interested in using REO property for the homeless and Attachment 15-D contains a sample lease.

B. Use by Federal Emergency Management Agency (FEMA)

By a Memorandum of Understanding between the Agency and FEMA (see Attachment 15-

E), REO property which is not under lease or sales agreement is available to shelter disaster 

victims in an area designated as a major disaster area by the President. In such an event, FEMA 

assumes responsibility for all costs associated with inhabiting the dwelling.

FEMA and the Agency must sign a “Letter of Assignment,” (see Attachment 15-F) which 

includes a mutually agreed upon inspection report outlining the condition of the property being 

assigned to FEMA. Field Staff should retain the Letter of Assignment in the REO file. No rent is 

paid by FEMA for the first 12 months from the date of the letter of assignment of the housing.

Beyond that, FEMA pays the monthly fair market rental value as determined by the Agency.

C. Mineral Leases

When it is in the best interest of the Government, the Agency may lease mineral rights.

OGC should be contacted for assistance in preparing the lease agreement. The appropriate level of 

environmental review must be completed prior to any agreement to lease mineral rights. Since 

such actions may be controversial and may have the potential for significant impact on the 

environment, prior consultation with the State Environmental Coordinator is required.
HB-1-3550

ATTACHMENT 15-A

Attachment 15-A

Page 1 of 2

UNDERGROUND STORAGE TANKS THAT MUST BE REPORTED

A. Underground storage tanks that meet the following criteria must be reported in 2 types of 

situations.

1. Situation 1

• A tank, or combination of tanks (including pipes which are connected thereto), of 

which the volume is 10 percent or more beneath the surface of the ground, including 

the volume of the underground pipes; and

• The tank is not exempt from reporting requirements under Paragraph B. of this 

attachment, and

• The tank contains petroleum or substances defined as hazardous under section 

101(14) of the Comprehensive Environmental Response Compensation and Liability 

Act, 42 U.S.C. 9601. The State Environmental Coordinator should be consulted 

whenever there is a question regarding the presence of a regulatedsubstance.

2. Situation 2

• It is known that the tank contained a regulated substance, was taken out of operation 

by the Agency since January 1, 1974, and remains in the ground.

B. Underground storage tanks that are exempt from the Environmental Protection Agency 

(EPA) reporting include:

• Farm or residential tanks of 1,100 gallons or less capacity used for storing motor fuel 

for noncommercial purposes;

• Tanks used for storing heating oil for consumptive use on the premises where stored;

• Septic tanks;

• Pipeline facilities (including gathering lines) regulated under: (1) the Natural Gas 

Pipeline Safety Act of 1968; (2) the Hazardous Liquid Pipeline Safety Act of 1979; or

(3) for an intrastate pipeline facility, regulated under State laws comparable to the 

provisions of law referred to in (1) or (2);

(01-23-03) SPECIAL PN

Revised (03-09-22) SPECIAL PN
HB-1-3550

Attachment 15-A 

Page 2 of 2

• Surface impoundments, pits, ponds, or lagoons;

• Storm water or wastewater collection systems;

• Flow-through processtanks;

• Liquid traps or associated gathering lines directly related to oil or gas production and 

gathering operations; or

• Storage tanks situated in an underground area (such as a basement, cellar, 

mineworking, drift, shaft, or tunnel) if the tank is situated upon or above the surface 

of the floor.

Even if a storage tank does not need to be reported according to these criteria, if the 

Agency has reason to believe there has been a release of petroleum or other regulated substance 

from an underground storage tank on a real estate owned (REO) property, this incident must be 

reported to the appropriate State Agency and the State Environmental Coordinator who will inform 

the Responsible Party of the appropriate action to take.
HB-1-3550

(01-23-03) SPECIAL PN

Revised (03-15-19) PN 522

ATTACHMENT 15-B

Attachment 15-B

Page 1 of 2

MEMORANDUM OF UNDERSTANDING BETWEEN UNITED STATES DEPARTMENT 

OF AGRICULTURE (USDA) AND DEPARTMENT OF HEALTH AND HUMAN 

SERVICES (HHS)

For the efficient and orderly implementation of this agreement it is mutually agreed:

1. HHS will request the support of the Farmers Home Administration (FmHA), an Agency of 

USDA to lease or otherwise make available vacant rural single family homes or like 

facilities to community nonprofit organizations interested in initiating shelter projects.

2. The FmHA will identify necessary actions to be taken to implement the program. 

Therefore, HHS will notify community groups of the program and of the required 

procedures.

3. FmHA and HHS have agreed on the following policy guidelines to properly structure the 

program:

a. HHS will identify and respond to community interest and initiatives;

b. HHS will request local government support;

c. HHS will direct community groups to FmHA County Supervisors to identify specific 

facilities within the FmHA inventory; and

d. FmHA County Supervisors will be given the authority, as deemed appropriate by 

FmHA, to process lease agreements and increase or decrease the number of facility 

units available forlease.

4. Leases executed under this program shall be with local nonprofit community organizations 

and shall make such organizations responsible for all liabilities arising out of the habitation 

of the particular facility and for all costs incident to and associated with the habitation of 

the particular facility (e.g., renovation, maintenance, security, etc.).

5. The FmHA will provide the criteria for leasing rural facilities in accordance with FmHA 

housing regulations.
HB-1-3550

Attachment 15-B 

Page 2 of 2

6. Any documentation required to measure or assess the results of the program will be the 

responsibility of HHS. Such information will be made available to FmHA upon request.

/s/ Margaret M. Heckler /s/ John R. Block

Department of Health and Human Services United States Department of Agriculture
HB-1-3550

Attachment 15-C

Page 1 of 3

(01-23-03) SPECIAL PN 

Revised (03-09-22) SPECIAL PN

ATTACHMENT 15-C 

FACT SHEET

THE FEDERAL INTERAGENCY TASK FORCE ON FOOD 

AND SHELTER FOR THE HOMELESS

In April 1984, a Task Force on Food and Shelter for the Homeless was established under 

the President’s Council on Private Sector Initiatives. This Task Force, which includes 

representation from several Government Agencies including the Rural Housing Service (RHS) 

(formerly FmHA), is responsible for developing and examining Federal resources such as 

Government inventory properties which may be utilized by the homeless. A Memorandum of 

Understanding was established between the Department of Agriculture and the Department of 

Health and Human Services to make available vacant single family houses, by lease, to public 

bodies and nonprofit organizations for transitional housing for the homeless. In lieu of cash rent, 

the entity is required to maintain the property, pay real estate taxes and maintain property 

insurance.

RHS is committed to working with community based organizations in this regard to the 

extent practicable.

General Guidelines

1. Program and nonprogram RHS real estate owned (REO) properties are available for lease 

in accordance with 42 U.S.C. 11408a. 

2. Leases of REO properties will be for a period of up to 10 years. A 10-year lease may 

be necessary for the public body or nonprofit organization to obtain transitional 

housing funds from the Department of Housing and Urban Development (HUD).

RHS Responsibilities

1. Upon request from a public body or nonprofit organization, RHS will provide a list of all 

REO properties available for sale. The list will clearly identify which properties are 

classified as “program” “nonprogram.” The list will be provided regardless of whether 

the properties are listed for sale with real estate brokers.
HB-1-3550

Attachment 15-C 

Page 2 of 3

2. If a public body or nonprofit organization approaches RHS to lease a specific property, 

upon written notification of intent to lease, RHS will withdraw the property from sale for a 

period not to exceed 30 days to provide such entity with the opportunity to execute a 

formal lease. RHS will make a determination as to repairs and/or renovations necessary for 

the property to meet “decent, safe and sanitary” (DSS) standards. Repairs/renovations will 

be limited to those necessary to remove health and safety hazards and provide adequate, 

safe and operable heating, plumbing, electrical, water and waste disposal systems. 

Cosmetic repairs such as painting, landscaping, floor covering, etc., will not be considered 

unless they present health or safety hazard. If RHS determines the proposed 

repairs/renovations are reasonable in cost, RHS will contract to have said work performed 

upon after execution of a formal lease. If repairs/renovations costs are excessive the public 

body or nonprofit organization will be asked to select another property for lease. If no such 

properties are available, and none are expected in the foreseeable future, the State Office 

will obtain further guidance from the Single Family Housing Direct Loan Division 

(SFHDLD) in the NationalOffice.

3. RHS will inspect the property after the lease is executed to ensure the property is being 

maintained and used for its intended purposes. Inspections will be made at least yearly.

Public Body or Nonprofit Organization Responsibilities

1. Contact RHS when interested in leasing or purchasing RHS REO property to provide 

transitional housing or turnkey housing for tenants of such transitional housing in 

accordance with 42 U.S.C. 11408a.

2. When leasing is contemplated, provide RHS with documentation of the need for this type 

housing in the community and planned use. Documentation should include verification of 

the need for the type housing, financial statements verifying the entity’s ability to make 

cosmetic repairs, if needed, maintain the property, pay utilities, real estate taxes, 

insurance, etc., proposed use of the property, sample lease or occupancy agreement for 

potential occupants, nondiscrimination policy, etc. The public body or nonprofit 

organization should provide all necessary documentation to RHS to assure success of the 

project.

3. Use any property in a prudent manner for its intended purpose. Maintain the property in 

good condition, ensuring the exterior and lot are maintained consistent with other 

properties in the area. Comply with all State and local laws, ordinances, etc. regarding use 

of residential property. Maintain adequate records relating to the use of the property. 

Allow RHS to inspect the property annually at reasonable times and review records to 

ensure the property is being utilized for its intended use.
HB-1-3550

Attachment 15-C

Page 3 of 3

(01-23-03) SPECIAL PN 

Revised (02-01-18) PN 508

4. When the need for such property no longer exists, advise RHS of the intent to terminate 

the lease. Return the property in the same or better condition than when the lease was 

executed.
HB-1-3550

Attachment 15-D

Page 1 of 3

(01-23-03) SPECIAL PN

ATTACHMENT 15-D 

LEASE OF SINGLE FAMILY DWELLING

THIS LEASE is made and entered into this day of , 20 , by and

between the United States of America acting through the Rural Housing Service (RHS) of the Rural 

Development mission area (hereinafter referred to as “LESSOR”) and

(hereinafter referred to as

“LESSEE”).

RECITALS: 

UNDER PROVISIONS OF the Housing Act of 1949, as amended, and in keeping with agreements with the 

Federal Interagency Task Force on Food and Shelter for the Homeless to provide transitional housing for 

the homeless in rural areas, AND, in consideration of the covenants and agreements herein contained to be 

done, kept and performed, the parties hereto agree as follows:

(1) Premises. LESSOR hereby leases the PREMISES, known as 

City of , County of , State of , to LESSEE

and LESSEE hereby leases the PREMISES from LESSOR for the term and upon the covenants and 

conditions set forth herein.

(2) Term. The term of this lease shall be for a period of ( ) year(s) commencing on the

 day of , 20 , and ending on the last calendar year of

, 20 , unless sooner terminated under any applicable provisions of this

Lease. This lease may be extended on a month-to-month basis after the termination date of this lease with 

prior written consent of the LESSOR and LESSEE.

(3) Payments. In consideration of ONE DOLLAR, in hand paid at the time of execution of the lease, 

and the following requirements to be performed by LESSEE, LESSOR agrees it will have received 

adequate compensation from LESSEE, and LESSEE agrees to the following:

a. LESSEE shall be responsible for all taxes and assessments levied on the PREMISES as of the 

date of this LEASE. The LESSEE shall reimburse the LESSOR for any taxes and 

assessments which have or will be prepaid by the LESSOR through a proration of such taxes 

and assessments. LESSEE shall pay taxes and assessments directly to the payee and provide 

documentation of such payment to the LESSOR, or may provide such funds directly to the 

LESSOR at least 30 days prior to the due date. LESSEE will pay all taxes and assessments in 

a timely manner.
HB-1-3550

Attachment 15-D 

Page 2 of 3

b. Within forty-five (45) days after execution of this Lease, or other reasonable time period 

mutually agreed to in writing between the parties herein, the LESSEE, at the LESSEE’s sole 

expense, shall make any further repairs, with prior approval of the LESSOR, as LESSEE 

determines necessary to make the property habitable.

c. LESSEE, at its sole expense, shall ensure the PREMISES are maintained, repaired, and kept 

in a clean sanitary condition during the term of this Lease.

d. LESSEE shall be responsible for all utility costs incurred on the PREMISES during the term 

of this Lease.

(4) Use. The LESSEE shall utilize the premises only for the purpose of providing transitional housing 

for homeless persons and will not charge such persons a rental or occupancy charge greater than the costs 

incurred by LESSEE in compliance with the provisions of paragraph 3, plus a reasonable amount for 

administrative costs.

(5) Hold Harmless. The LESSEE shall indemnify and save harmless the LESSOR, its officers, agents, 

servants and employees from all liability under the Federal Tort Claims Act (62 Stat. 869, 982; 28 U.S.C. 

Sec. 2071, 2680) or otherwise, for death or injury to all persons, or less or damage to the property of all 

persons resulting from use of the premises by the LESSEE, its sublessees or licensees. Further, LESSEE 

will save the LESSOR harmless from all fines, penalties, and costs for violation or noncompliance with any 

of said laws, requirements, or regulations, and from all liability arising out of any such violation or 

noncompliance.

(6) Damage or Destruction. In the event any damage or destruction to the property shall be caused by 

its acts or neglect of its sublessees or licensees, the LESSEE shall forthwith repair such damage at its own 

expense, and should the LESSEE fail or refuse to make such repairs within a reasonable time after the 

occurrence of such damage, the LESSOR may at Lessor’s option terminate this lease, make such repairs 

and charge the cost thereof to the LESSEE, and the LESSEE, shall thereupon reimburse the LESSOR for 

the total cost of all damages so caused. In the event LESSEE insures the PREMISES against loss by fire 

and other hazards, LESSOR shall be named as a co-beneficiary. Further, in the event that the PREMISES 

are damaged or destroyed through no act nor neglect of LESSEE its sublessees and licensees and are 

reentered untenable, this Lease shall be terminated upon receipt of written notice of either party to the other.

(7) Delivery of Possession. At the end of the term of this Lease, LESSEE shall surrender said premises 

vacant to the LESSOR and in a habitable condition as defined in paragraph 3.b. except if the lessor so 

directs it will be boarded up and secured. No alteration, addition, or improvements shall be made in or to 

the premises without the consent of the LESSOR in writing, except for maintenance items, and all additions 

and improvements by the LESSEE shall belong to the LESSOR. All goods and chattels placed or stored in 

or about the premises are at the risk of the LESSEE.
HB-1-3550

Attachment 15-D

Page 3 of 3

(01-23-03) SPECIAL PN

(8) Lessor’s Remedies. The LESSEE further agrees that if it should fail to comply with any other all 

provisions of this agreement, then in any of said cases, it shall be lawful for the LESSOR, at its election or 

option, to re-enter and take possession, the LESSEE hereby expressly waiving any and all notices to vacate 

said premises, and thereupon this lease shall absolutely terminate; however, the failure of the LESSOR to 

insist upon the strict performance of the terms, covenants, agreements and conditions herein contained, or 

any of them, shall not constitute or be construed as a waiver or relinquishment of the Lessor’s right 

thereafter to enforce any such term, covenant, agreement, or condition, but the same shall continue in full 

Force and effect.

(9) No Member of Congress to Benefit. No member of, or Delegate to Congress, or Resident 

Commissioner shall be admitted to any share or part of this lease or to any benefit that may arise therefrom.

(10) Warranty Against Use of Agents. The LESSEE warrants that it has not employed any person to 

solicit or secure this lease upon any agreement for a commission, percentage, brokerage or contingent fee. 

Breach of this warranty shall give the LESSOR the right to annual this lease or in its discretion to recover 

from the LESSEE the amount of such commission, percentage, brokerage or contingent fee in addition to 

the condition herein set forth.

(11) Nondiscrimination. The LESSEE agrees not to discriminate against any employee or applicant for 

employment, or against any individual seeking housing, because of race, color, religion, national origin, 

sex, marital status, handicap, or age.

THIS LEASE contains the entire agreement between the parties hereto, and neither party is bound by any 

representations or agreements of any kind except as herein contained.

By:

USDA, RURAL DEVELOPMENT 

RURAL HOUSING SERVICE, LESSOR

By:

State Director

(Typed Name) (Title) (Typed Name)

(Address) (Address)

Telephone: ( ) Telephone: ( )
HB-1-3550

Attachment 15-E

Page 1 of 4

(01-23-03) SPECIAL PN

ATTACHMENT 15-E

MEMORANDUM OF UNDERSTANDING BETWEEN THE 

FEDERAL EMERGENCY MANAGEMENT AGENCY AND THE 

FARMERS HOME ADMINISTRATION

Purpose

This Memorandum of Understanding establishes authorities and procedures whereby the Federal 

Emergency Management Agency (FEMA) may utilize both single family and multiple housing 

units which are habitable, and to which the Farmers Home Administration (FmHA), an Agency of 

the U.S. Department of Agriculture (USDA), has title and possession. The housing units assigned 

to FEMA by FmHA are to provide temporary housing to victims of major disasters or emergencies 

declared by the President, in accordance with sections 302(a) and 404(a) of Public law 93-288, the 

Disaster Relief Act of 1974.

Effective Date of this Memorandum

This memorandum shall be effective on the date of the last signature hereto.

Duration of Agreement

This memorandum shall continue to be in effect for a period coinciding with the authority under 

which it is entered.

Modifications

This Memorandum of Understanding and its attachments may be modified in writing by mutual 

consent of the parties.

Responsibilities

FmHA shall make available to FEMA on request habitable single family and multiple housing 

units in its inventory that are located in designated disaster areas and that are not under lease or 

under agreement of sale. FEMA will reimburse FmHA for authorized expenses, as set out herein, 

resulting from utilization of assigned housing units.
HB-1-3550

Attachment 15-E 

Page 2 of 4

Implementation

This memorandum shall be implemented in accordance with the following general procedures. 

FEMA and/or FmHA may prepare other detailed operating procedures as necessary for internal use 

of the agencies. These latter procedures will be in compliance with the provisions of this 

Memorandum.

(a) Delegation of Authority. The signatories to this agreement will delegate authority to 

implement this agreement to their respective employees, in writing. When a disaster occurs, the 

persons to whom this authority has been delegated shall identify employees, contractors, and 

agents authorized to implement the appropriate provisions of this Memorandum of Understanding 

and other FEMA and/or FmHA detailed operating procedures. FEMA and FmHA will exchange a 

list containing names, addresses, and telephone numbers of such employees, contractors and 

agents, who will implement the agreement with respect to the specific major disaster. Other 

references to FEMA and FmHA in the following paragraphs will be interpreted to include 

contractors, agents, and employees designated to implement the provisions of this Memorandumof 

Understanding.

(b) Assignment of FmHA Housing Units to FEMA

(1) Upon declaration by the President of a major disaster or emergency, FEMA may 

request from the appropriate FmHA State Director a list of all habitable housing units 

available in designated disaster areas indicating the county or counties where housing is 

needed.

(2) At its discretion, FmHA may sell or lease until directly to displaced FmHA borrowers 

instead of providing them to FEMA. FmHA will provide FEMA a list of such sales or 

leases for information purposes and to prevent duplication of benefits.

(3) During the period of occupancy of a housing unit by a disaster victim, FEMA will 

inform the occupant that FmHA lending assistance may be available for purchase of the 

housing unit as permanent housing.

(4) Before assignment to FEMA and occupancy by a disaster victim, each housing unit 

under consideration will be inspected jointly by FmHA and FEMA. The agencies will 

then execute a Letter of Assignment for each habitable housing unit assigned to FEMA. 

A Preoccupancy and Termination Joint Inspection report(FEMA

Form 90-11) will be prepared, signed by both agencies, and attached to the letter of 

assignment. The FmHA advice number will be noted prominently on this form.
HB-1-3550

(01-23-03) SPECIAL PN

Attachment 15-E

Page 3 of 4

(5) FmHA will remove all RHS signs, such as “no trespassing,” “for sale,” etc. from 

housing units assigned toFEMA.

Management of Housing Units

(a) Necessary maintenance on housing units assigned to FEMA shall be performed by FEMA 

at its expense, or FEMA shall reimburse FmHA for accomplishing such maintenance as agreed 

upon by local agency representatives.

(b) FEMA shall furnish to FmHA the names and mailing addresses of unit occupants, the 

property designation, the beginning occupancy date, and notice of changes in occupancy.

(c) During business hours FmHA authorized employees may inspect housing units. Advance 

notice of forty-eight (48) hours will be given to FEMA, who will, in turn, advise theoccupant.

(d) FEMA shall not permit a disaster victim to occupy a housing unit beyond the period of 

eligibility in accordance with 44 CFR 205.52.

(e) There shall be no rental charge to FEMA by FmHA for assigned housing units for the first 

twelve (12) months from the date of the letter of assignment. If a housing unit is assigned to 

FEMA for more than one year after the date of the letter of assignment, FEMA shall pay FmHA 

the fair market rental value as determined by FmHA for each subsequent month.

(f) If an occupancy fails to vacate a housing unit after housing benefits are terminated,FEMA 

shall conduct the predetermination procedures in 44 CFR 205.52 and shall, if appropriate, 

undertake eviction action.

Return of Housing Units to FmHA

(a) When a housing unit is vacated and FEMA determines that it is no longer needed,FEMA 

shall notify FmHA.

(b) FEMA and FmHA authorized employees, contractors, or agents will jointly inspect the 

vacated housing unit to determine maintenance, cleanup, and repairs required to return the housing 

unit to a physical condition comparable to that existing at the time of the initial joint inspection. 

Necessary maintenance and repairs shall be performed by FEMA at its expense, or FEMA shall 

reimburse FmHA for accomplishing such repairs as agreed upon by local agency representatives. 

Repairs shall be in accordance with local, State, or Federal codes.
HB-1-3550

Attachment 15-E 

Page 4 of 4

(c) FEMA shall return the keys to, custody of, and responsibility for units to FmHA when 

needed maintenance, cleanup and repairs are completed. FmHA shall prepare a receipt and 

provide a copy to FEMA.

Approvals

This agreement is executed by the Administrator, Farmers Home Administration, USDA and the 

Associate Director, State and Local Programs and Support, FEMA, by virtue of their general 

authorities to do so.

/s/ Charles W. Shuman . /s/ Lee M. Thomas .

Administrator Associate Director

Farmers Home Administration State and Local Programs and Support

U.S. Department of Agriculture Federal Emergency Management Agency

Date: 11/3/82 . Date: 10/4/82 .
HB-1-3550

(01-23-03) SPECIAL PN

Attachment 15-F 

Page 1 of 1

ATTACHMENT 15-F 

FEDERAL EMERGENCY MANAGEMENT AGENCY AND THE RURAL HOUSING 

SERVICE FEMA-RHS LETTER OF ASSIGNMENT

STATE: 

COUNTY: 

Under the Memorandum of Understanding between the Federal Emergency Management Agency 

(FEMA) and the Farmers Home Administration (now the Rural Housing Service [RHS]) effective 

November 3, 1982, the habitable housing unit identified on the attached inspection report is made 

available by RHS for use by FEMA or its Agent as temporary housing for victim(s) located within 

the following described designated disaster area and who are eligible for such assistance under the 

provisions of the Disaster Relief Act of 1974: 

This Letter of Assignment shall become effective on the date signed by the authorized employees, 

contractors, or agents. This assignment is for the housing unit identified by the attached inspection 

report and having the following advice number: . 

FEMA RHS

NAME: 

TITLE: 

DATE: