HB-1-3560 

3.1 INTRODUCTION 

Multi-Family Housing projects are subject to a number of property requirements. These 

requirements serve to establish standards for the quality of the housing provided under the 

program. The Agency’s goal is to develop decent, safe, and sanitary housing for programeligible residents in eligible rural areas at a reasonable cost to the Agency and the taxpayer in 

needy areas of suitable communities. 

This chapter describes the requirements that govern the designation of places where the 

Agency will focus its loan activity and that establish the standards by which the projects will be 

developed. Section 1 describes designated places and how they are established. Section 2 

describes site requirements, including the site location, site standards, and density, and civil 

rights. Section 3 describes environmental requirements, and Section 4 describes design 

requirements, including design standards, residential design, economical development costs, and 

accessibility. 

SECTION 1: DESIGNATED PLACES [7 CFR 3560.57]

3.2 OVERVIEW 

In establishing the Multi-Family Housing programs, lawmakers included a provision for 

targeting assistance to the geographic areas that most need it. To meet this requirement, the 

Agency identifies certain areas as “designated places,” which are rural areas where development 

of a rental project will further the program’s goals. 

Every year, the State Office must submit a list of designated places to the National 

Office. Only project proposals located in the areas on this list are eligible to compete for funding 

under the Notice of Funding Availability (NOFA). The following paragraphs explain how to 

establish and maintain this list. 

3.3 ESTABLISHING A DESIGNATED PLACE LIST 

The National Office will send the State Office a list of places in accordance with the 

following criteria. The area must qualify as a rural area; have a demonstrated lack of mortgage 

credit; and have a demonstrated need for multi-family housing based on the incidence of poverty, 

the existence of substandard housing, and the lack of affordable housing (see 7 CFR 3560.57 for 

more information on these factors). 

A. Requirements for Establishing Designated Places 

The State Office will select designated places from the ranked list provided by the 

National Office. In making the selection, the following requirements must be met: 

CHAPTER 3: PROPERTY REQUIREMENTS 

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• The designated places must be chosen in rank order. 

• The list may not include places with fewer than 250 households unless the State has 

requested and been granted by the Administrator a Statewide exception. For Indian 

reservations, at least 250 households must be located within the boundaries of the 

reservation to be eligible for the list. 

• The list may include up to 10 percent of the State’s total eligible rural places, except 

in States with fewer than 100 eligible rural places, the list of designated places must 

include 10 eligible places if available. The National Office may authorize states to 

select up to 20 percent of eligible rural places if funding levels warrant. 

• The State has some discretion to add additional places to create geographic diversity 

on the list if an established geographic region or district is not represented on the list. 

Each place chosen for geographic diversity must be the top-ranked place in its region 

or district. 

• The State may add places of high need to this list (above 10 percent or 10 places). 

High need areas are defined as: 

◊ Empowerment Zones (EZs), Enterprise Communities (ECs), and Rural Economic 

and Area Partnership (REAP) communities; 

◊ Places in the State Consolidated Plan or similar State plan or needs assessment 

report that have received concurrence from the National Office; 

◊ Indian reservations or communities in the boundaries of tribal-allotted or trust 

land; or 

◊ Places that have a special need, as identified by the State Director, which require 

National Office concurrence. 

• Places with “build-and-fill” conditions must be deferred, including “high-need” 

places. These places cannot be considered for funds until the build-and-fill condition 

is gone. Places with build-and-fill conditions must be reviewed annually and 

returned to the list when the build-and-fill condition no longer exists. Areas with 

build-and-fill conditions include areas where: 

◊ The Agency has selected another loan request for processing. 

◊ A previously authorized Agency, the Department of Housing and Urban 

Development (HUD), or similarly assisted housing project (including tax credit 

projects) has not been completed or reached its projected occupancy level. 

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◊ An existing assisted housing project is experiencing high vacancy levels. State 

Offices will establish a written policy regarding acceptable vacancy levels. 

◊ A Special Note Rent (SNR) or similar servicing tool is pending or in effect at 

another project. 

◊ The need in the market area is for additional rental subsidy, not for additional 

housing units. 

• Exceptions to build-and-fill restrictions can be made for: 

◊ Group homes proposed for persons with disabilities where existing housing is 

insufficient for their needs or unavailable; or 

◊ In unusual circumstances in which there is a compelling need for additional 

housing, which requires National Office concurrence. 

B. Procedures for Establishing the Designated Place List 

Each State Office will take the following steps to establish a designated place list: 

• Step 1. Upon receipt of the ranked list of places from the National Office, remove all 

ineligible places from the list (for example, places that no longer meet the rural area 

definition). 

• Step 2. Establish the number of places to be put on this list—up to 10 percent of the 

total eligible places on this list, or at least 10 places in States with fewer than 100 

eligible places. 

• Step 3. Remove all places with fewer than 250 eligible households from the list. 

• Step 4. Select the appropriate number of places (as established in Step 2) in rank 

order from the list. 

• Step 5. Add any of the following, as appropriate, to the list: 

◊ Geographic diversity. If any region or district is not represented on the list, add 

the highest-ranked place from that region or district to the list. 

◊ High-need areas. If an area is deemed to be high need (EZ, EC, REAP, Indian 

reservation, or other special need as documented in a comprehensive plan or 

similar document that has National Office concurrence), it may be added to the 

list. 

• Step 6. Defer any places with build-and-fill conditions. 

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• Step 7. Submit the list to the National Office by October 1, or as otherwise notified 

by the National Office. The list must be provided in the format shown in 

Attachment 3-C.

• Step 8. If the National Office does not notify the State Office of any problems, 

consider the list approved after 30 days. The National Office will announce in the 

NOFA published in the Federal Register that the lists are available from the State 

Offices. 

C. Updating the Designated Place List 

Once established, the designated place list is used for 3 years. However, the list must 

be updated annually to account for changes in local conditions. 

• Step 1. Defer all places that received Agency funding for a project or that have 

otherwise developed build-and-fill conditions. 

• Step 2. Remove any places that have become ineligible (for example, areas that no 

longer qualify as rural areas). 

• Step 3. Reinstate any places that no longer have build-and-fill conditions. 

Note that additional places are not routinely added to the list to replace the places 

taken from the list. (In some cases, for example when a State is experiencing high 

leveraging activity, the State may request permission to add to the list). Consequently 

when the original list is developed, it should have a sufficient number of places on it to 

account for likely attrition over the 3-year life of the list.

D. Partnership Designated Place List 

States with active leveraging programs and formal partnership agreements with their 

State agencies may establish partnership designated place lists. These lists consist of 

places identified by the partnerships as high-need areas. (These high-need areas must be 

designated based on criteria consistent with the Agency’s and the State’s authorizing 

statutes.) The partnership agreement and partnership designated place list must have 

National Office concurrence. 

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SECTION 2: SITE REQUIREMENTS [7 CFR 3560.58]

3.4 OVERVIEW 

Finding an appropriate site is the earliest important decision made by an applicant. 

Selection of the site is solely the applicant’s responsibility, and the Agency will evaluate the 

proposed site as part of a total project proposal. The Loan Originator may offer comments about 

the perceived adequacy of the site at the applicant’s request, but the applicant holds full 

responsibility for the selection of an acceptable site. 

This section provides guidance on site requirements including site location, standards and 

density, and civil rights. Applicants will provide documentation in their proposals that these 

requirements have been met. However, a site visit is essential to evaluating the appropriateness 

of the site. Attachment 4-E to Chapter 4 provides a site evaluation checklist to the Loan 

Originators in their site evaluation during the site visit. 

3.5 SITE LOCATION 

Multi-Family Housing properties must be located in areas that are appropriate for 

residential housing and represent reasonable real estate investments for the Agency. To meet 

this requirement, the area where the site is located must be a residential area in a designated 

place that provides adequate services and facilities. 

A. Designated Place 

Sites must be located within the boundaries of a designated place to be considered for 

a loan. Loan requests must be checked against the list of designated places to make sure 

that all loans are made in designated places. 

B. Residential Area 

Multi-Family Housing projects must be in residential areas as part of an established 

rural community. The Agency defines a “residential area” as an area where at least half 

of the neighboring properties are developed with inhabited residential structures or are 

zoned for residential occupancy. The Loan Originator should confirm that these 

requirements are met during the site visit. An exception can be granted by the Agency 

for an existing structure in a downtown business area of a rural town as described in 

paragraph C below. 

C. Downtown Business Area 

A project may be located in a downtown business area only if the project is part of a 

comprehensive strategy for meeting a community’s development and housing needs. In 

this event, the applicant must be able to demonstrate that the proposed project fits in the 

community’s comprehensive strategy. In addition, the National Office must concur with 

the proposal before the Loan Processing Staff authorize the applicant to submit a final 

application. 

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In the project proposal, the applicant must show that the following conditions are 

met: 

• The local governing body has adopted, through resolution or other official act, a 

community development and housing plan that addresses neighborhood revitalization, 

housing, and economic development. The project proposal must include 

documentation from the local governing body identifying the proposed site or 

structure as an essential component of the plan. 

• Public and private resources will be available for completing other critical parts of the 

community development and housing plan. 

D. Public Facilities and Services 

Sites must have adequate necessary facilities and services to support the needs of the 

tenants. During the site visit, the Loan Originator must check that the following 

necessary facilities and services exist or will be provided and that they are close and 

convenient to the site: 

• Necessary facilities include schools, hospitals, and water and sewer systems; 

• Necessary services include shopping, medical, and pharmaceutical services; and 

• The “close-and-convenient” standard may differ by area based on local 

transportation, population density, and type of project proposed (e.g., public 

transportation may be more important to elderly projects than to family property). 

Factors to consider include available transportation, traffic patterns, road conditions, 

and terrain. 

E. Desirable Areas 

The Agency encourages applicants to propose projects located in desirable areas 

where residents are more likely to find satisfactory living conditions and the value of the 

Agency’s investment is well protected. Sites in industrial areas or declining 

neighborhoods or sites that are adjacent to high-volume train tracks, grain elevators, gas 

stations, car lots, or other such locations that are likely to affect the value of the property 

or the quality of life of residents may not be acceptable. 

F. Historic Places 

Proposed projects that have the potential to affect properties that are listed or are 

eligible to be listed on the National Register of Historic Places (RD Instructions 1924-C, 

1901-F, and 1940-G) are subject to the requirements of the National Historic 

Preservation Act. Compliance will be evidenced in the environmental review in 

accordance with Section 3. 

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3.6 SITE STANDARDS 

Planning for development must take 

into consideration topography, soils, climate, 

adjacent land use, environmental impacts, 

energy efficiency, aesthetic and cultural 

values, public and private services, and 

housing and social conditions. 

Technical Assistance on Site Standards

Applicants may find technical services to 

help with this planning from the State’s Soil 

Conservation Services and Cooperative 

Extension Services. 

Technical services, such as architectural, 

engineering, land survey, or site planning 

services, must be performed by professionals 

who are qualified and authorized to provide such 

services in the State where the project is 

developed. 

The selection and planned 

development of a site is the responsibility of 

the applicant. The Agency must review the 

plans for compliance with Agency site 

standards. The adequacy of a site is 

measured against two key standards: 

• Appropriateness for residential development. Is this site appropriate for 

residential development? Is it accessible? Does it have adequate infrastructure? Is it 

free of undesirable conditions?

• Reasonable site development costs. Can the site be developed for a reasonable 

cost? Does this site require minimal work to accommodate grading, drainage, and 

other development requirements?

Agency guidance for site planning is provided in RD Instruction 1924-C, and is briefly 

summarized in the following paragraphs. 

A. Applicable Codes 

All Multi-Family Housing projects must observe all applicable Federal, State, and 

local codes, laws, ordinances, zoning requirements, and regulations on health and safety 

standards. Where inspections are required to meet these codes, the applicant should 

include written assurance of the responsible public authority stating compliance with 

these codes. 

B. Adequate Utilities and Infrastructure 

Sites must have infrastructure and utilities that are adequate for the needs of the site 

and that meet all local requirements. 

• The facilities must be safe, economic, energy efficient, and dependable. 

• Ideally, the utilities should be publicly owned. If the project will operate its own 

system, justification must be included in the application. 

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The applicant’s proposal should address all of the items listed below, stating whether 

the specific utility is publicly, privately, or community-owned and providing any other 

relevant information: 

• Roads. The site must be accessible by a public road. The roads must be paved or allweather unless the Agency grants an exception. 

• Electrical service to the site. The applicant must check with the power supplier to 

assure that there is adequate electrical service available to meet the needs of the 

proposed site. Underground services are preferred. 

• Gas service. Gas distribution facilities, if necessary, must be installed according to 

local requirements. Gas service must be dependable and adequate for the needs of the 

site. 

• Water and wastewater disposal. Water and wastewater disposal are discussed in 

paragraph C below. 

C. Water and Wastewater Disposal 

The site must have water and wastewater disposal systems, whether individual, 

central, or privately owned and operated, that meet the applicable water and wastewater 

disposal system requirements of RD Instruction 1924-C. There must be assurance of 

continuous service at reasonable rates for central water and wastewater disposal systems. 

A system owned or operated by a private party must have a legally irrevocable agreement 

that allows interested third parties to enforce the obligation. 

• Central systems are preferable. When central systems are unavailable, the Agency 

will evaluate the proposed individual system for economic feasibility and potential 

impact on the environment and the project operating budget. Information on 

evaluation and design of individual water and wastewater systems is available from

the Environmental Protection Agency (EPA). Multi-Family Housing developments 

of more than 25 units with individual systems must have National Office concurrence 

(see RD Instruction 1924-C for guidance on obtaining concurrence). Private 

companies usually inspect individual wells and septic system drainfields; these 

companies provide written results of the inspection. 

• In addition, the responsible local or State regulatory agency must verify, in writing, 

that the privately owned water and wastewater disposal systems comply with the Safe 

Drinking Water Act and the Clean Water Act (33 U.S.C. 1341), respectively. 

Inspections are not required on public water and wastewater disposal systems. 

• Sites that are not presently served by a central system but are scheduled for tie-in to 

the central system within 2 years should have all lines installed during the initial 

construction. Such sites must have an approved interim water supply or wastewater 

disposal system. 

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D. Grading and Drainage 

Soil and geological conditions must be suitable for the type of construction proposed. 

In questionable and unserved areas, the applicant must provide an engineering report 

with supporting data to identify all pertinent subsurface conditions that could adversely 

affect the structure and show proposed solutions. 

• Grading will promote drainage of surface water away from buildings and 

foundations, minimize earth settlement and erosion, and ensure that drainage from

adjacent properties does not create problems on the site. 

• Generally, ideal grading is 4 to 5 percent. Less grading does not allow for drainage, 

while more slope adds costs to the development of the property. However, the 

Agency recognizes that ideal grading is not available in all areas. Site Approval 

Officials will use their best judgment in site approval based on other available 

properties and the general topography in the area. 

• Sites requiring extensive earthwork, cuts, and fills must be designed by a professional 

engineer. When topography requires fills or extensive earthwork to support building 

structures and foundation, fill must be controlled, and all work must be designed, 

supervised, and tested by a qualified soils engineer. 

• All slopes must be protected from erosion by planting or other means. 

• Storm water systems must be designed to consider property protection at the site and 

at the drainage basin level. 

E. Size and Shape 

The size and shape of a site determines if there is enough room for the proposed units, 

as well as walks, parking, any onsite septic system, and other site improvements. The 

size should be adequate to support all proposed work and, generally, sites should be close 

to square in shape, as an elongated site may restrict the number, orientation, and layout of 

buildings and amenities. 

F. Noncontiguous Sites 

In some cases, projects may involve noncontiguous sites. Note that the development 

of noncontiguous sites involves complexities and costs that do not exist for single sites. 

• Although environmental reviews may have to be performed for every site, they may 

be combined into a single report. 

• Coordination of construction on separate sites requires extra time and labor and leads 

to additional costs. 

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• Management and maintenance of buildings on separate sites create additional costs of 

operation. 

G. Undesirable Physical Conditions 

Sites must not have undesirable physical conditions that create hazards or 

unnecessary development costs. Examples of such conditions include: 

• Poor soil conditions that increase development costs; 

• Noise from nearby roads, airports, or factories that create unacceptable residential 

conditions; and 

• Pollution from nearby facilities or crop spraying that creates hazardous health 

conditions. 

3.7 SITE DENSITY 

Acceptable density standards will vary by area and local preferences. Because of these 

differences, program rules do not provide specific, quantifiable density standards (for example, 

10 units per acre). Instead, project density should be evaluated based on the following three 

factors: 

• Compatibility and consistency with the community. Site density must be similar 

to other developments in the community. The Multi-Family Housing project should 

not look more crowded than the surrounding area nor should it look more spacious. 

• Sufficient size to accommodate necessary site features. Each site must be large 

enough to support the housing units, as well as adequate public space, walkways, 

parking, and other site amenities. 

• Impact on total development costs and project budget. Decisions regarding the 

first two factors must take costs into account. How does the number of units and the 

cost of the site affect the per-unit investment of the Agency, and can the project 

budget support the proposed number of units?

3.8 CIVIL RIGHTS 

It is the Agency’s intent that the location of multi-family housing expands the supply of 

decent, safe, and sanitary housing for very low-, low- and moderate-income elderly persons, 

persons with disabilities, and families in a nondiscriminatory way. The location should promote 

a greater choice of housing opportunities in the housing market area. Housing location should 

also promote equal access for the inclusion of all groups without regard to their race, color, sex, 

national origin, religion, age, disability, or marital or familial status.

To ensure the above objective, whenever a loan is proposed to be made, and in 

accordance with RD Instruction 2006-P, the Agency must conduct a civil rights impact analysis 

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and document this analysis utilizing Form RD 2006-38, Civil Rights Impact Analysis. This must 

be done prior to any commitment of Agency resources, including issuance of Handbook Letter 

102 (3560), Letter of Conditions, Loan Approval, or Obligation of Funds. 

The civil rights impact analysis addresses two areas in particular: 

• The extent to which the project serves all eligible members of the community. The 

Agency will examine applicant plans to market the project affirmatively and to 

implement nondiscriminatory occupancy policies and procedures. 

• The extent to which the project location promotes equal access for the inclusion of all 

peoples, thereby opening up nonsegregated housing opportunities for minorities. The 

Agency will examine the project proposal to ensure that the project is located in an 

area without environmental hazards, which does not adversely impact the health and 

safety of the tenants. Examples include locating the project near a sewage treatment 

facility, train tracks, or a farm that routinely crop dusts. Not extending water or 

sewer lines to a minority or low-income area would be another example of an adverse 

civil rights impact. 

The State Director, or official designated to certify on the State Director’s behalf, is the 

certification official for analyses conducted at the State Office level. For loan approvals, this 

will normally be the Loan Originator. The State Civil Rights Coordinator/Manager will assist 

the Loan Originator on an as-needed basis and provide advice and guidance to the State Director 

and Field Office Staffs. 

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SECTION 3: ENVIRONMENTAL REQUIREMENTS 

[7 CFR 3560.59]

3.9 OVERVIEW 

The Agency considers environmental quality equally with economic, social, and other 

factors in its program development and decisionmaking processes. The environmental review 

process is intended to help Agency officials make decisions that are based on an understanding 

of the environmental consequences of a proposed action and to take those actions that protect, 

restore, and enhance the environment. 

This section contains a general discussion of basic environmental requirements that apply 

to the development of Multi-Family Housing projects that are financed by the Agency. Detailed 

environmental policies and procedures can be found in RD Instruction 1940-G, which contains 

compliance requirements for the National Environmental Policy Act of 1969 (NEPA), as well as 

other relevant laws, Executive Orders, and departmental regulations. 

3.10 TYPES OF ENVIRONMENTAL REVIEWS 

NEPA requires that Agency actions be classified into three basic categories of actions. 

This classification of actions provides the Agency with a starting point for beginning its 

environmental review. The three categories of actions are: 

• Actions that normally qualify as categorical exclusions; 

• Actions that normally require an environmental assessment (EA); and 

• Actions that normally require an environmental impact statement (EIS). 

For a complete list of housing actions and their classifications, refer to 

RD Instruction 1940-G. See Attachment 3-A for a guide to choosing an environmentally sound 

site. 

3.11 COMPLETING ENVIRONMENTAL REVIEWS 

The environmental review must examine a wide range of environmental issues, including 

the potential for impacting on protected reserves. Exhibit 3-1 lists the major resources to be 

considered. 

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Exhibit 3-1 

Environmentally Sensitive Issues, Land Uses, and Resources 

Wetlands 

Floodplains 

Wilderness areas 

Wild and scenic rivers 

Historical and archaeological sites 

Historic districts 

Sites of significance to Native Americans 

Critical habitat or endangered or 

threatened species 

Coastal barriers 

Natural landmarks 

Important farmland 

Prime forestland 

Prime rangeland 

Coastal zone management area 

Sole source aquifer recharge area 

State water quality standards 

Noise impacts on sites 

Parks and designated trails 

By completing the environmental review, the Agency provides the necessary 

documentation to demonstrate (1) compliance with requirements for the protection of the 

environment, including the development of practicable alternatives to either avoid or lessen 

adverse environmental impacts; and (2) why the potential impact on the environment is not 

considered to be significant so an environmental impact statement is not required. 

The Agency is responsible for completing the appropriate level of environmental review 

in accordance with RD Instruction 1940-G. This includes the assembly and analysis of relevant 

material, the development and analysis of practicable alternatives and mitigation measures (as 

appropriate), and the development of recommendations and decisions regarding environmental 

impacts and environmental compliance. Applicants may be requested to provide the Agency 

with assistance in the completion of the environmental review, including, but not limited to, data 

collection, preparation of forms, investigation of alternative sites and building designs or 

locations, issuing public notices, and development and implementation of mitigation measures to 

lessen adverse environmental impacts. When the environmental review determines an effect on a 

resource, mitigation of the effects may be required. Where mitigation measures affect the design 

of structures, locations on site, or costs of the project the mitigation measures will be identified 

and detailed in the designs and construction documents, and reflected in cost estimates for 

construction. 

The Agency approval official will use the environmental review documents and the 

recommendations of the State Environmental Coordinator (SEC) to make the Agency’s final 

decision regarding an environmental impact determination and compliance with environmental 

requirements. This decision is evidenced by execution of the “Finding” on Form 1940-22, 

Environmental Checklist for Categorical Exclusions, for categorical exclusions or by execution 

of the Finding of No Significant Impact (FONSI) for environmental assessments. 

SECs are available to provide technical guidance and to assist in problem resolution on 

environmental issues. Environmental problems should be referred promptly to the SEC. 

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3.12 FLOOD HAZARD DETERMINATION [7 CFR 3560.58]

Properties located in flood or mudslide prone areas designated by the Federal Emergency 

Management Agency (FEMA) must meet the provisions of the National Flood Insurance Act of 

1968, as amended. This evaluation should be done early to allow a search for reasonable 

alternatives, if necessary. 

• Form FEMA 81-93, Standard Flood Hazard Determination, documents if the 

property is located in a Special Flood Hazard Area (SFHA) identified by FEMA and, 

if so, states the availability of flood insurance for this property through FEMA’s 

National Flood Insurance Program (NFIP). The form may be prepared by Agency 

Staff or by a contract service. 

• Property in a SFHA is not eligible for Federal financial assistance unless flood 

insurance is purchased through the NFIP. 

The information regarding floodplains on this Form FEMA 81-93 will assist in the 

preparation of the environmental review document. It is important to understand that the 

availability of flood insurance through the NFIP is not sufficient to allow a proposal to proceed 

on a floodplain site. The environmental review completed by the Agency must examine if there 

is a reasonable alternative to a proposed purchase/construction in the floodplain. 

3.13 MANAGEMENT OF HAZARDOUS SUBSTANCES 

The Agency must consider the management of hazardous substances, including 

hazardous wastes and petroleum products, from two perspectives: (1) liability under hazardous 

substance and hazardous waste laws; and (2) the economic risks posed by the presence of 

hazardous substances. Both of these issues are addressed through due diligence. Due diligence 

is the process of evaluating real estate, in the context of a real estate transaction for the presence 

of contamination from hazardous substances, hazardous wastes, or petroleum products and 

determining what effect, if any, such contamination has on the regulatory status and security 

value of the property. 

A. Due Diligence Requirements 

The Loan Originator will ensure that due diligence is performed for appropriate loan 

processing and servicing actions. For loan origination, due diligence will be performed 

for:

• Applications for new construction under the Section 515 and Section 514/516 

housing programs; 

• Applications to purchase and rehabilitate existing structures under the Section 515 

and Section 514/516 programs, if the Agency becomes aware that a potential for 

contamination from hazardous substances, hazardous wastes, or petroleum products 

has been observed on the property or nearby properties or encountered through 

research or interviews with individuals knowledgeable about the property; and 

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• Applications for new or existing structures when the Agency becomes aware of 

possible. 

The acceptable format for documentation of the Agency’s due diligence efforts will 

be ASTM Standard E-1528 (TSQ), Transaction Screen Questionnaire, or similar 

documentation as may be adopted by the Agency in the future. 

The presence and condition of underground storage tanks (USTs) will be documented 

as a part of performing due diligence. If the appraiser reports a possible UST, the Loan 

Originator is responsible for verifying that the UST is in compliance with appropriate 

regulatory requirements or arrangements must be made for removal of the UST (refer to 

RD Instruction 1940-G for further details). 

To ensure that the appraisal accurately reflects a property’s market value, due 

diligence is normally performed in conjunction with the appraisal process and the due 

diligence report is shared with the appraiser. The due diligence report will be attached to 

and considered in the environmental review of the project. 

B. Phase I Environmental Site Assessment 

Phase I Environmental Site Assessments, ASTM E-1527 (Phase I ESA), and Phase II 

Environmental Site Assessments, ASTM E-1903-97 (Phase II ESA), must be completed 

by a qualified environmental professional. 

If a Phase I ESA reveals contamination, the applicant must provide evidence that 

action has been taken to remove or control the contamination, under the direction of the 

appropriate regulatory agency, before the Agency will consider an application involving 

the site. The Agency will not knowingly accept contaminated property as security 

without the prior approval of the State Director and, in case of sites listed on EPA’s 

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) 

National Priority List or comparable State listing, without the prior approval of the 

Administrator. 

Determinations of the costs for remediation of site contamination will be developed 

in a Phase II ESA or in a combined Phase I and II ESA. 

During application for financial assistance for construction the costs for Phase I or 

Phase II ESAs will be the applicant’s responsibility. In servicing actions that may lead to 

foreclosure or require a determination of value, the Agency will bear the costs for these 

services. 

C. Appraisers’ Responsibilities 

The Loan Originator will ensure that appraisers understand their responsibility: 

• To notify the Agency when potential contamination from hazardous substances, 

hazardous wastes, or petroleum products has been observed on the property or 

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encountered through research or interviews with individuals knowledgeable about the 

property; and 

• To notify the Agency of the existence or potential existence of regulated or 

unregulated USTs on the property. 

D. Loan Originator and Loan Servicer Responsibilities 

The Loan Originator will be responsible for making a site visit to visually assess the 

potential for contamination. Where the potential for contamination is determined to exist 

the Agency may forego preparation of the TSQ and move directly to a Phase I or Phase II 

ESA after consultation with the SEC. 

When visiting a property, the Loan Originator should always be alert for any 

indication of potential contamination from hazardous substances, hazardous wastes, or 

petroleum products. 

For loan servicing actions that require a determination of market value, the Agency 

will ensure that the appropriate level of due diligence is completed in conjunction with 

the appraisal. 

Prior to any action that may result in the acquisition of security property, the Agency 

will ensure completion of a due diligence report. If there is contamination or potential 

for contamination, the Loan Approval Official and the SEC will be consulted. The 

Agency may forego accepting title to contaminated property if the cost of any necessary 

remedial response action and the amount of the debt exceeds the market value of the 

property. If the Agency does not choose to accept conveyance or foreclosure on security 

property, in whole or in part, because of a release of hazardous substances, hazardous 

wastes, or petroleum products, the SEC will notify the appropriate regulatory agency of 

its actions and provide a copy of the Agency’s due diligence report. 

Due diligence will be completed, or a previous due diligence report updated, prior to 

lease or disposal of inventory property. If a release or threatened release of hazardous 

substances, hazardous wastes, or petroleum products is discovered on inventory property 

or nearby properties, prospective leasees or purchasers will be informed and the SEC will 

notify the appropriate regulatory agency. 
HB-1-3560 

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3-18 
HB-1-3560 

SECTION 4: DESIGN REQUIREMENTS [7 CFR 3560.60]

3.14 OVERVIEW 

Design requirements apply to the features, amenities, and costs of the project. The 

Agency’s goal is to develop quality projects at a reasonable cost. 

The Agency receives information about the design from the preliminary plans and 

specifications, the design development drawings, and the final plans and specifications. The 

Loan Originator will make sure that these and other appropriate architectural documents are 

submitted (as listed in Attachment 3-B) and pass them to the architect for review and approval. 

The architect reviews the design for compliance with requirements described in this section. 

3.15 STANDARDS 

Projects must meet the following design standards: 

• Projects must consist of two or more units and appropriate facilities except in 

circumstances described below. 

• Single-family units may be used for group homes, cooperative housing projects, and 

where Section 502 inventory housing is being converted to a Multi-Family Housing 

project. 

• Project designs must comply with the requirements of RD Instruction 1924-A. In 

particular, 

◊ Construction must be planned to conform with good construction practices as 

detailed in applicable State and local laws, ordinances, and codes; HUD 

Multifamily Physical Standards (MPS) Appendices C through F; and thermal 

requirements (Model Energy Code 1992 edition or more stringent). (Appropriate 

model building code standard must be applied based on type of development.) 

◊ All final drawing and specs and any modifications must be certified in writing as 

conforming with the applicable development standards by the project architect. 

Form RD 1924-25, Plan Certification, may be used. 

◊ During the Agency’s environmental review, consideration of effects on important 

environmental resources is made. When the environmental review determines an 

effect on a resource mitigation of the effects may be required. Where mitigation 

measures affect the design of structures, locations on site, or costs of the project, 

the mitigation measures will be identified and detailed in the designs and 

construction documents, and reflected in cost estimates for construction. 

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(02-24-05) SPECIAL PN 
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3.16 RESIDENTIAL DESIGN 

All housing must be residential in character and must meet the needs of eligible residents. 

Family housing must include active outdoor recreation areas. Elderly housing must include 

elevators for buildings with more than one level that cannot be accessed without steps. 

3.17 ECONOMICAL DEVELOPMENT COSTS 

To achieve affordable rents, Multi-Family Housing projects must be designed with costs 

in mind. However, the Agency does not encourage cost containment measures that compromise 

the quality or longevity of the project. Poor quality designs or substandard construction are not 

acceptable means of achieving economy. Projects should be designed to provide the features and 

amenities necessary for the lifestyles of the tenants at a cost that is economical and cost effective 

in the long term. The Agency encourages the use of features that minimize maintenance costs 

over the life of the project. 

Designs must be economical and avoid unnecessary or elaborate features. In evaluating 

proposed project costs, Loan Originators will use data on average costs for average quality 

components. They will also have to use judgment and experience to assess maintenance and 

operation costs and local conditions. 

In general, there are two basic questions that Loan Originators must address when 

evaluating the cost of the proposed design: 

• Is the cost reasonable? 

• Is the design cost effective? 

A. Evaluating Cost Reasonableness 

To determine if the proposed costs 

for a project are reasonable, Loan 

Originators will compare the costs 

shown on the project cost estimate to 

the known benchmark costs. These 

costs can be found in the databases 

described in Chapter 4 including 

Automated Multi-Family Housing 

Accounting System (AMAS), Marshall 

and Swift, and Integra Claims, or 

State-maintained database. 

Minimize Processing Delays

Costs can be reduced by eliminating 

unnecessary delays in application processing. 

Delays in processing can contribute to higher 

interest and other business expenses on land, 

inventory, tests, design studies, etc. When 

reasonable time frames for processing 

applications are established, known, and 

followed, appropriate time can be planned for 

preparing a quality application and construction 

documents. Planning can result in better 

instructions for the builder, fewer errors, and 

lower construction costs. Proposals that exceed these costs 

should be evaluated for reductions. 

However, the Loan Originator should 

always take into consideration local conditions and the special conditions of the 

particular project. For example, high land costs or the costs of development in remote 

3-20 
HB-1-3560 

rural areas may explain why a project’s costs are higher than the benchmark. Similarly, a 

project using funds that require Davis-Bacon wage rates may have higher costs. 

B. Evaluating Cost Effectiveness 

The Loan Originator should routinely consider the costs and benefits of the proposed 

design features in determining if a design is cost effective. A capital needs assessment 

prepared by the project architect and reviewed by the Agency State Architect or Engineer 

should be used to determine features and materials that may cost more initially, but 

reduce operations and maintenance costs over time. 

The following methods can be used for evaluating and controlling costs: 

• Materials. Since most materials and systems are available in a range of qualities and 

prices, the architect should review construction documents for the stated cost and 

quality of materials used. If the specifications require qualities or grades higher than 

necessary, the applicant should provide justification. Projects should utilize lowmaintenance materials. 

• Repeat designs. The use of repeat building designs is encouraged. Applicants 

whose architects have designed projects previously approved by the Agency should 

use these. Unique site designs for each project would be required. The use of repeat 

designs does not mean that “cloned” projects are required or encouraged. Designs 

should employ standard building material dimensions. 

• Design features. The following features serve to lower cost: 

◊ Buildings should not include numerous wall and roof breaks, unusual designs 

requiring excessive corners and foundation offsets, or more exterior entrances 

than absolutely necessary. 

◊ Buildings should not include roof slopes less than 3/12 nor greater than 6/12 

unless otherwise required by local authorities or to accommodate severe weather 

conditions. 

• Appropriate amenities. Project design should include amenities that are appropriate 

to the type of project. The following descriptions provide examples: 

◊ Active outdoor recreation areas are appropriate for family developments and 

group homes. Passive recreation areas may be sufficient in elderly and 

congregate housing. Elevators in two-story buildings are not appropriate for 

family developments but are often needed in elderly and congregate 

developments. 

◊ Laundry rooms should be no larger than necessary to accommodate equipment, 

circulation, and areas for sorting and folding clothes. 

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(02-24-05) SPECIAL PN 
HB-1-3560 

◊ The number of parking spaces should be appropriate to the type of housing and 

meet local requirements. 

• Other amenities. Designs should include features that are “reasonable and 

customary” in the area. For example, if local Multi-Family Housing units include 

patios or balconies, or washer and dryers, these features should be included in the 

project. The reasonable-and-customary standard improves the marketability of the 

project to prospective tenants and protects the value of the Agency’s investment. 

Designs must avoid nonessential facilities. 

• Unit size. Unit size should be economical but allow for variation due to type of 

housing (e.g., congregate housing, townhouses) and energy conservation. 

• Energy efficiency. The project design should include measures for energy efficiency 

because these features will reduce utility cost over the long term. 

• Individually metered utilities. The unit design should accommodate individually 

metered gas and electric utilities. This design will allow tenants to pay for their own 

utilities and will encourage lower energy use. 

3.18 ACCESSIBILITY 

Program regulations prohibit discrimination against people with disabilities 

[7 CFR3560.2]. In addition, the Multi-Family Housing program is subject to the three following 

regulations governing the accessibility of Federally assisted buildings, facilities, and programs 

(also see Exhibit 3-2): 

• Section 504. Section 504 of the Rehabilitation Act of 1973 prohibits discrimination 

in Federally assisted programs on the basis of handicap. Section 504 imposes 

requirements to ensure that persons with disabilities have access to programs and 

activities that receive Federal funds. Section 504 recipients and subrecipients include

any entity that receives Federal funding. 

• Fair Housing Act. Multi-family dwellings must also meet the design and 

construction requirements in 24 CFR 100.205 that implement the Fair Housing Act 

(42 U.S.C. 3601–19). 

• Americans with Disabilities Act (42 U.S.C. 12131; 47 U.S.C. 155, 201, 218, and 

225). This Act provides comprehensive civil rights to individuals with disabilities in 

the areas of employment, public accommodations, State and local Government 

services, and telecommunications. The Act, also referred to as the ADA, also states 

that discrimination includes the failure to design and construct facilities (built for first 

occupancy after January 26, 1993) that are accessible to and usable by persons with 

disabilities. The ADA also requires the removal of architectural and communication 

barriers that are structural in nature in existing facilities. Removal must be readily 

achievable, easily accomplishable, and able to be carried out without much difficulty 

3-22 
HB-1-3560 

or expense. The ADA applies to areas of public accommodation in multi-family 

housing, such as an onsite office. 

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(02-24-05) SPECIAL PN 

Exhibit 3-2 

Applicability of Federal Accessibility Regulations

Section 504 Fair Housing Act America

Project ready for 

occupancy on or 

before 

June 10, 1982 

Project ready for 

occupancy after 

June 10, 1982 

Project ready 

for occupancy 

on or before 

March 13, 1991 

Project ready for 

occupancy after 

March 13, 1991 

Project re

for occupa

on or befo

Jan. 26, 1

New construction Must meet UFAS 

requirements 

Must meet UFAS and 

FHA/AG requirements 

Rehabilitation 1. Encouraged to meet 

5% requirement

2. Must meet common 

area requirement, if feasible 

3. Must accommodate 

on request

4. Must have a selfevaluation 5. If required by self

evaluation, musthave a transition plan 

Must meet above requirements or be addressed during rehabilitation

Not applicable Must meet above 

requirements or be addressed during rehabilitation

Must meet UFAS, FHA/AG, anADA/AG requirementbe addressed during rehabilitatio

Equity Prior to the receipt of 

equity, must meet above requirements 

Must meet above requirements or be addressed prior toreceipt of equity 

Not applicable Not applicable (not

eligible for equity at this time) 

Not applicab

Transfer without rehabilitation 

Prior to transfer, must meet above requirements 

Must meet above requirements prior to transfer 

Not applicable Must meet above 

requirements prior totransfer 

Not applicab

Ongoing project operations monitored by supervisory visits or compliance reviews 

Must meet above requirements 

Must meet above requirements and must have a selfevaluation and transition plan if found innoncompliance 

Not applicable Must meet above 

requirements 

Not applicab

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HB-1-3560 

3.19 RELOCATION 

A. Uniform Relocation Assistance and Property Acquisition Act of 1970 

Public bodies and agencies that have the power of eminent domain and/or 

condemnation must comply with the requirements of the Uniform Relocation Assistance 

and Real Property Acquisition Act of 1970. In these cases, Agency loan funds may be 

increased over and above the appraised value of the property to cover costs incurred in 

the relocation of displaced persons. 

B. Temporary Relocation of Tenants During Rehabilitation 

A subsequent loan for the repair and rehabilitation of units may not include expenses 

incurred for temporary relocation of tenants. 

3.20 CONVENTIONAL RENTS FOR COMPARABLE UNITS 

A. The CRCU Standard 

In evaluating the proposed rents for new projects, the Agency will determine the 

Conventional Rents for Comparable Units (CRCU) in the market. Sources for 

determining CRCU include the market data provided by the applicant in the application 

package; recent appraisals; current rental data from the Census Bureau, HUD, State 

housing agencies, or other reliable source; and the Agency’s review of the market. 

CRCU serves as a benchmark to maintain the affordability of program units and 

avoid situations where project rents are established above local conventional rents, 

leading to noncompetitive rents and excessive needs for rental assistance. 

The CRCU benchmark does not change the method for determining rents. Rents 

remain cost based, meaning that rents are determined based on the project budget and 

must be justified by the actual costs of operating the project. The CRCU benchmark 

simply serves as one of several underwriting tools for evaluating whether the proposed 

rents are reasonable and realistic, and whether the project is feasible and appropriate for 

the area. In most cases, the Agency expects that rents will be below the CRCU 

benchmark. 

Similarly, the CRCU benchmark does not significantly alter the Agency’s process for 

underwriting new projects. Loan Originators must consider a number of factors in 

evaluating each project application and assessing the project’s suitability and feasibility. 

For example, the Agency looks for evidence that there are sufficient eligible tenants to 

fill the units and that these tenants will be able to pay the rent. See Chapters 4 and 5 for a 

discussion of the review criteria for initial and final applications, respectively. 

The CRCU benchmark is also used in asset management and loan servicing decisions, 

including loan restructuring and calculating prepayment incentives. HB-2-3560 and HB3-3560 discuss the CRCU standard in those contexts. 

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(02-24-05) SPECIAL PN 
HB-1-3560 

B. Exceptions to the CRCU Standard 

The Agency can make an exception to this standard and approve basic rents for a 

property that are higher than the CRCUs for the area where the property is, or will be 

located, in limited circumstances when it is in the best interest of the government and the 

program. The Agency may approve an exception to this standard when it is necessary to 

allow for decent, safe, and sanitary housing to be provided in market areas where 

conventional rents are not sufficient to cover necessary operating, maintenance, and 

reserve costs. 

However, in no case, may basic rents exceed CRCUs for a market area by more than 

50 percent [7 CFR 3560.60 (c)(2)]. This upper limit means that basic rents may never be 

more than 150 percent of the CRCU for the market area where the property is located. 

For example, if the CRCU for a two-bedroom unit in a market area was determined to be 

$300 per month, the Agency could approve an exception to allow basic rents for this unit 

size up to $450 per month, if there was adequate evidence that a monthly rent of $300 

was not sufficient to cover necessary operating, maintenance, and reserve costs for the 

proposed property in this area. In no case, however, could the Agency approve rents 

greater than $450 per month for a two-bedroom unit. 

In cases where there is clear evidence that market rents are exceptionally low, it is 

appropriate for Loan Origination to consider whether an exception to the CRCU standard 

may be needed to operate a project that meets the Agency’s decent, safe, and sanitary 

standards. In such circumstances, the applicant (for new projects) or the borrower (for 

existing projects) must document the need for an exception with local market data. The 

Loan Originator or Loan Servicer may grant an exception, allowing rents to exceed the 

CRCU standard by 10 percent. For higher rents, the State Office must obtain National 

Office concurrence.

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HB-1-3560 

Attachment 3-A 

Page 1 of 3 

ATTACHMENT 3-A 

GUIDE FOR SELECTINGAN ENVIRONMENTALLY SOUND SITE 

___________________________________ ___________________________________ ____________ 

Applicant’s Name Property Address or Location Review Date

The process for selecting an environmentally sound site consists of two distinct steps: a “Site 

Reconnaissance” and a “Records Check.” The “Site Reconnaissance” is conducted by the Loan Official, 

State Environmental Coordinator and/or other qualified personnel who visit the site and record their 

observations. A “Records Check” is conducted by the Loan Official, appraiser, or title company to 

determine current and former uses of the site. 

The following questions are intended as a guide for Agency personnel in this process, but do not preclude 

obtaining services of environmental professionals whenever uncertainties arise. If the answer is “YES” to 

any questions in sections 1 or 3-6, or “NO” in section 2, or the reviewer(s) is uncertain about conditions, 

you must provide comments and discuss with the appropriate State Office program and technical staff 

(State Architect, Engineer, or State Environmental Coordinator) for further evaluation and guidance. The 

presence of any of the following conditions should be provided to the appraiser and considered in the 

appraised value. These conditions may indicate the need for a Transition Screen Questionnaire (TSQ) or 

a Phase I Environmental Site Assessment (ESA) initiated prior to approval of the site. 

The site reconnaissance is best undertaken by multiple staff members with varied expertise, such as the 

Loan Specialist, State Architect or Engineer, or Appraiser and should be supplemented with photographs 

of the site conditions found.

1. SITE RECONNAISSANCE – HAZARDOUS MATERIALS

Is there indication on site of:

Yes 

No 

Yes No Yes No 

Distressed vegetation or 

stained soils

( ) ( ) Oil/chemical spills ( ) ( ) Drums, barrels, waste 

material/containers 

( ) ( ) 

Abandoned machinery, 

refrigerators, equipment 

( ) ( ) Transformers 

Automotive batteries 

( ) ( ) 

( ) ( ) 

Storage tanks or 

fill/vent pipes 

( ) ( ) 

Are there other unusual conditions on site that might indicate potential for contamination from hazardous 

waste, hazardous substances, or petroleum products? ( ) Yes ( ) No 

2. SITE RECONNAISSANCE – LAND USE COMPATIBILITY

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(02-24-05) SPECIAL PN 
HB-1-3560 

Attachment 3-B

Page 2 of 3 

Is the proposed use compatible (does not imply uses are the same) with surrounding area in terms of:

Yes 

No 

Yes No Yes No 

Land use ( ) ( ) Building density ( ) ( ) Building type ( ) ( ) 

3. SITE RECONNAISSANCE – NEIGHBORING LAND USE

Are the following uses on or within a mile of the site:

Yes 

No 

Yes No Yes No 

Dumps/sanitary landfills ( ) ( ) Odorous land uses ( ) ( ) Incinerators ( ) ( ) 

Chemical tank-car Power generating plants ( ) ( ) 

terminals 

( ) ( ) Quarries or excavations ( ) ( ) 

Sewage treatment plants ( ) ( ) 

Chemical storage ( ) ( ) Industrial operations ( ) ( ) Large overhead 

transmission lines 

( ) ( ) 

Oil refineries ( ) ( ) High-pressure gas or 

liquid 

( ) ( ) Oil or gas wells ( ) ( ) 

4. SITE RECONNAISSANCE – SITE CHARACTERISTICS

The following conditions may have an adverse effect on site use and building design: 

Yes No 

Is there evidence of slope erosion or unstable slope conditions on or near the site? ( ) ( )

Is there evidence of ground subsidence, sinkholes or high water table? ( ) ( )

Is there any visible evidence of soil problems (foundations cracking or settling, basement flooding, etc.) 

on or adjacent to this site?

( ) ( )

Is there any indication of off-site cross-lot runoff or drainage flows on to the property? ( ) ( )

Are there visual indications of filled ground or mounds of dirt? ( ) ( )

Are there streams or gullies on site? ( ) ( ) 

Is the site located near a major noise source, i.e., 3 miles from airport approach and takeoff patterns, .5 

miles of major highways or busy roads, or frequently used railroads? 

( ) ( ) 

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HB-1-3560 

Attachment 3-A 

Page 3 of 3 

If the site is near noise sources, has a study been conducted in accordance with HUD “Noise 

Standards”? (24 CFR 51.103) 

( ) ( ) 

5. RECORDS CHECK

A check of local ownership records, zoning and building permits by the reviewer, appraiser or title company can 

provide valuable information on past uses of the site that may be a concern. 

Yes No 

Is current site zoning compatible with the proposed use? ( ) ( ) 

If the Agency environmental review has been completed, is mitigation of impacts indicated that would

adversely effect acceptability of the site?

( ) ( ) 

Does review of FEMA flood hazard maps indicate that the site is within the 100-year floodplain (500 

year for “critical actions”)? 

( ) ( ) 

Does review of the property records, or discussions with owners, occupants or neighbors, indicate that

the site was previously used for industrial or commercial activities with a potential for contamination?

( ) ( )

Do records of current or past use of the site indicate that the site has been used as a dump, sanitary 

landfill, or waste disposal area?

( ) ( )

Does review of EPA’s National Priorities List (Superfund) indicate such sites within a mile of the site? ( ) ( )

If available for review, do NRCS soil maps, soil studies or borings for the site indicate unsatisfactory

soil conditions?

( ) ( )

Is the site served by a municipal, or privately owned, water supply? ( ) ( ) 

Is the site served by a municipal, or privately owned, sanitary sewers and waste disposal systems? ( ) ( ) 

Is the site served by a municipal, or privately owned, trash collection and solid waste disposal service? ( ) ( ) 

If the site is not served by a municipal, or privately owned, water or wastewater disposal system has 

feasibility of on-site well and/or septic systems been documented? 

( ) ( )

6. OTHER CONDITIONS

Yes No 

Are there any conditions not specified above that might adversely affect the acceptability of the site? ( ) ( ) 

Comments:

____________________________________________________________________________________________

____________________________________________________________________________________________

____________________________________________________________________________________________

____________________________________________________________________________________________ 

____________________________________________ ___________________________________________ 

Site Report Preparer (Name and Title) Date Other Site Reviewer (Name and Title) Date 

 

___________________________________________ ___________________________________________ 

Other Site Reviewer (Name and Title) Date Other Site Reviewer (Name and Title) Date 

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(02-24-05) SPECIAL PN 
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3-30 
HB-1-3560 

Attachment 3-B

Page 1 of 2 

ATTACHMENT 3-B 

CHECKLIST OF ARCHITECTURAL DOCUMENTS 

Schematic Documents: 

Site survey (existing conditions) 

Site plan(s) 

Building plans 

Building/wall section showing construction 

Exterior elevation(s) 

Outline specifications 

Development cost estimate 

Proposed contract (unsigned, description of documents to be used) 

Design Development Documents: 

Site survey (existing conditions) 

Site location map 

Site plans, including location of all buildings, sidewalks, parking and drives, 

accessibility, utilities, amenities, drainage plan, and other pertinent information 

Building plans, including floorplan for each unit type and for each building, and 

accessibility 

Building/wall sections showing construction (further developed) 

Exterior elevations showing materials (further developed) 

Interior elevations of kitchens and baths showing cabinetry and accessibility 

Specifications (further developed) (using Construction Specifications Institute [CSI]

format) 

Development cost estimate (further developed) 

Proposed contract (copy of unexecuted documents with project information) 

Working Documents: 

Site survey (existing conditions) 

Site location map 

Detailed site plans, including dimensions to locate all buildings, sidewalks, parking and 

drives, accessibility, utilities, amenities (mailboxes, trash areas, laundry, community 

room, etc.), drainage plan, project sign, landscaping, recreation area(s), and other 

pertinent information 

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(02-24-05) SPECIAL PN 
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Attachment 3-B

Page 2 of 2 

Detailed building plans, including fully dimensioned floorplan for each unit type, 

dimensioned floorplan for each building, accessibility, plumbing, mechanical, electrical, 

heating, ventilation, air conditioning, telephone, and other pertinent information 

Building/wall section showing construction 

Exterior elevations showing materials 

Interior elevations of kitchens and baths showing cabinetry and accessibility 

Construction details for any unique interior or exterior features 

Schedules for windows, doors, or other equipment/materials 

Full CSI specifications 

Final cost estimate 

Complete contract documents ready for bid/construction 

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HB-1-3560 

Attachment 3-C

Page 1 of 2 

ATTACHMENT 3-C 

SAMPLE DESIGNATED PLACE LIST FORMAT

DESIGNATED PLACES FOR SECTION 515 NEW CONSTRUCTION APPLICATIONS 

Fiscal Year _____ 

State: __________________ 

Places on this list are considered equal, with no regard to their order on the list. Inclusion on 

this list does not indicate that a need or demand for Section 515 housing has been established. 

Applications for Section 515 new construction loans will be accepted for the following places: 

County Place

[In addition to places selected in rank order, include and identify all high need places that are 

eligible for 20 points under the loan scoring criteria: Places identified in the State (government) 

Consolidated Plan or similar State plan or needs assessment that have received National Office 

concurrence; EZ/ECs; Indian reservations or communities located within the boundaries of tribal 

allotted or trust land; colonias; and REAP communities. Identify the high need communities by 

listing under a separate heading or by using an asterisk with appropriate notation.] 

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(02-24-05) SPECIAL PN 
HB-1-3560 

Attachment 3-C

Page 2 of 2 

The following counties and colonias are eligible to compete for the Underserved Counties and 

Colonias Set-Aside. Eligible rural places that meet the minimum 250 household threshold and 

do not have any “build-and-fill” conditions are listed by county. 

County Place

3-34