[Federal Register Volume 69, Number 25 (Friday, February 6, 2004)]
[Notices]
[Pages 5821-5824]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-2594]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Timeframe to Submit Applications for the Section 515 
Rural Rental Housing Program for Fiscal Year 2004

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the timeframe for submitting 
applications for the section 515 Rural Rental Housing Program for 
Fiscal Year (FY) 2004. The Rural Housing Service (RHS) is publishing 
this Notice prior to passage of a final appropriations act to give 
applicants the maximum amount of time possible to complete their 
applications, to provide the Agency sufficient time to process the 
selected applications within the current fiscal year, and in order to 
comply with 7 CFR 1944.231. Because the Agency's appropriations act has 
not been passed, applicants are cautioned that the Agency cannot make 
commitments based on the anticipated funding. Expenses incurred in 
developing applications will be at the applicant's risk.

Additional Application Information

    Applications may be submitted for section 515 Rural Rental Housing 
(RRH) new construction loan funds and section 521 Rental Assistance 
(RA). Section 515 funds include the nonprofit set-aside for eligible 
nonprofit entities and the set-aside for the most Underserved Counties 
and Colonias (Cranston-Gonzalez National Affordable Housing Act). 
Section VI of this Notice gives additional information regarding the 
set-asides.

DATES: The closing deadline for receipt of all applications, including 
those for the set-asides, in response to this Notice is 5 p.m., local 
time for each Rural Development State Office on April 6, 2004. The 
application deadline is firm as to date and hour. RHS will not consider 
any application that is received after the closing deadline. Applicants 
intending to mail applications must provide sufficient time to permit 
delivery on or before the closing deadline date and time. Acceptance by 
the United States Postal Service or private mailer does not constitute 
delivery. Facsimile and postage due applications will not be accepted.

ADDRESSES: Applicants wishing to apply for assistance must contact the 
Rural Development State Office serving the place in which they desire 
to submit an application for rural rental housing to receive further 
information and copies of the application package. Rural Development 
will date and time stamp incoming applications to evidence timely 
receipt, and, upon request, will provide the applicant with a written 
acknowledgment of receipt. A listing of Rural Development State 
offices, their addresses, telephone numbers, and person to contact 
follows:


    Note: Telephone numbers listed are not toll-free.

Alabama State Office
    Suite 601, Sterling Centre, 4121 Carmichael Road, Montgomery, AL 
36106-3683, (334) 279-3455, TDD (334) 279-3495, James B. Harris.
Alaska State Office
    800 West Evergreen, Suite 201, Palmer, AK 99645, (907) 761-7740, 
TDD (907) 761-8905, Deborah Davis.
Arizona State Office
    Phoenix Corporate Center, 3003 N. Central Ave., Suite 900, 
Phoenix, AZ 85012-2906, (602) 280-8765, TDD (602) 280-8706, Johnna 
Vargas.
Arkansas State Office
    700 W. Capitol Ave., Room 3416, Little Rock, AR 72201-3225, 
(501) 301-3250, TDD (501) 301-3063, Cathy Jones.
California State Office
    430 G Street, <greek-i>4169, Davis, CA 95616-4169, (530) 792-
5830, TDD (530) 792-5848, Jeff Deiss.
Colorado State Office
    655 Parfet Street, Room E100, Lakewood, CO 80215, (720) 544-
2923, TDD (800) 659-2656, Mary Summerfield.
Connecticut
    Served by Massachusetts State Office.
Delaware and Maryland State Office
    4607 South Dupont Highway, PO Box 400, Camden, DE 19934-9998, 
(302) 697-4353, TDD (302) 697-4303, Pat Baker.
Florida & Virgin Islands State Office
    4440 NW 25th Place, Gainesville, FL 32606-6563, (352) 338-3465, 
TDD (352) 338-3499, Joseph P. Fritz.
Georgia State Office
    Stephens Federal Building, 355 E. Hancock Avenue, Athens, GA 
30601-2768, (706) 546-2164, TDD (706) 546-2034, Wayne Rogers.
Guam
    Served by Hawaii State Office.
Hawaii State Office
    (Services all Hawaii, American Samoa and Western Pacific), Room 
311, Federal Building, 154 Waianuenue Avenue, Hilo, HI 96720, (808) 
933-8309, TDD (808) 933-8321, Thao Khamoui.
Idaho State Office
    Suite A1, 9173 West Barnes Dr., Boise, ID 83709, (208) 378-5628, 
TDD (208) 378-5644, LaDonn McElligott.
Illinois State Office
    2118 West Park Court, Suite A, Champaign, IL 61821-2986, (217) 
403-6222, TDD (217) 403-6240, Barry L. Ramsey.
Indiana State Office
    5975 Lakeside Boulevard, Indianapolis, IN 46278, (317) 290-3100 
(ext. 423), TDD (317) 290-3343, John Young.
Iowa State Office
    210 Walnut Street Room 873, Des Moines, IA 50309, (515) 284-
4666, TDD (515) 284-4858, Julie Sleeper.
Kansas State Office
    1303 SW. First American Place, Suite 100, Topeka, KS 66604-4040, 
(785) 271-2721, TDD (785) 271-2767, Virginia M. Hammersmith.
Kentucky State Office
    771 Corporate Drive, Suite 200, Lexington, KY 40503, (859) 224-
7325, TDD (859) 224-7422, Paul Higgins.
Louisiana State Office
    3727 Government Street, Alexandria, LA 71302, (318) 473-7962, 
TDD (318) 473-7655, Yvonne R. Emerson.
Maine State Office
    967 Illinois Ave., Suite 4, PO Box 405, Bangor, ME 04402-0405, 
(207) 990-9110, TDD (207) 942-7331, Dale D. Holmes.
Maryland
    Served by Delaware State Office.
Massachusetts, Connecticut, & Rhode Island State Office
    451 West Street, Amherst, MA 01002, (413) 253-4315, TDD (413) 
253-4590, Paul Geoffroy.
Michigan State Office
    3001 Coolidge Road, Suite 200, East Lansing, MI 48823, (517) 
324-5192, TDD (517) 337-6795, Philip Wolak.
Minnesota State Office
    375 Jackson Street Building, Suite 410, St. Paul, MN 55101-1853, 
(651) 602-7804, TDD (651) 602-7830, Joyce Vondal.
Mississippi State Office
    Federal Building, Suite 831, 100 W. Capitol Street, Jackson, MS 
39269, (601) 965-4325, TDD (601) 965-5850, Darnella Smith-Murray.
Missouri State Office
    601 Business Loop 70 West, Parkade Center, Suite 235, Columbia, 
MO 65203, (573) 876-0990, TDD (573) 876-9480, Colleen James.
Montana State Office
    Unit 1, Suite B, 900 Technology Blvd., Bozeman, MT 59715, (406) 
585-2551, TDD (406) 585-2562, Deborah Chorlton.
Nebraska State Office

[[Page 5822]]

    Federal Building, Room 152, 100 Centennial Mall N., Lincoln, NE 
68508, (402) 437-5594, TDD (402) 437-5093, Phil Willnerd.
Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-
9910, (775) 887-1222 (ext. 25), TDD (775) 885-0633, Angilla Denton.
New Hampshire State Office
    Concord Center, Suite 218, Box 317, 10 Ferry Street, Concord, NH 
03301-5004, (603) 223-6046, TDD (603) 229-0536, Jim Fowler.
New Jersey State Office
    5th Floor North Suite 500, 8000 Midlantic Dr., Mt. Laurel, NJ 
08054, (856) 787-7740, TDD (856) 787-7784, George Hyatt, Jr.
New Mexico State Office
     6200 Jefferson St., NE., Room 255, Albuquerque, NM 87109, (505) 
761-4944, TDD (505) 761-4938, Carmen N. Lopez.
New York State Office
     The Galleries of Syracuse, 441 S. Salina Street, Suite 357 5th 
Floor, Syracuse, NY 13202, (315) 477-6419, TDD (315) 477-6447, 
George N. Von Pless.
North Carolina State Office
     4405 Bland Road, Suite 260, Raleigh, NC 27609, (919) 873-2066, 
TDD (919) 873-2003, Bill Hobbs.
North Dakota State Office
     Federal Building, Room 208, 220 East Rosser, PO Box 1737, 
Bismarck, ND 58502, (701) 530-2049, TDD (701) 530-2113, Kathy Lake.
Ohio State Office
     Federal Building, Room 507, 200 North High Street, Columbus, OH 
43215-2477, (614) 255-2418, TDD (614) 255-2554, Melodie Taylor-Ward.
Oklahoma State Office
     100 USDA, Suite 108, Stillwater, OK 74074-2654, (405) 742-1070, 
TDD (405) 742-1007, Phillip F. Reimers.
Oregon State Office
     101 SW Main, Suite 1410, Portland, OR 97204-3222, (503) 414-
3325, TDD (503) 414-3387, Bill Daniel.
Pennsylvania State Office
     One Credit Union Place, Suite 330, Harrisburg, PA 17110-2996, 
(717) 237-2282, TDD (717) 237-2261, Martha E. Hanson.
Puerto Rico State Office
     IBM Plaza, Suite 601, Munoz Rivera Avenue <greek-i>654, Hato 
Rey, PR 00918, (787) 766-5095 (ext. 249), TDD (787) 766-5332, 
Lourdes Colon.
Rhode Island,
    Served by Massachusetts State Office.
South Carolina State Office
     Strom Thurmond Federal Building, 1835 Assembly Street, Room 
1007, Columbia, SC 29201, (803) 253-3432, TDD (803) 765-5697, Larry 
D. Floyd.
South Dakota State Office
     Federal Building, Room 210, 200 Fourth Street, SW., Huron, SD 
57350, (605) 352-1135, TDD (605) 352-1147, Roger Hazuka.
Tennessee State Office
     Suite 300, 3322 West End Avenue, Nashville, TN 37203-1084, 
(615) 783-1375, TDD (615) 783-1397, G. Benson Lasater.
Texas State Office
     Federal Building, Suite 102, 101 South Main, Temple, TX 76501, 
(254) 742-9765, TDD (254) 742-9712, Michael W. Meehan.
Utah State Office
     Wallace F. Bennett Federal Building, 125 S. State Street, Room 
4311, Salt Lake City, UT 84138, (801) 524-4323, TDD (801) 524-3309, 
Dave Brown.
Vermont State Office
     City Center, 3rd Floor, 89 Main Street, Montpelier, VT 05602, 
(802) 828-6028, TDD (802) 223-6365, Sandra Mercier.
Virgin Islands
    Served by Florida State Office.
Virginia State Office
     Culpeper Building, Suite 238, 1606 Santa Rosa Road, Richmond, 
VA 23229, (804) 287-1596, TDD (804) 287-1753, CJ Michels.
Washington State Office
     1835 Black Lake Blvd. Suite B, Olympia, WA 98512, (360) 704-
7731, TDD (360) 704-7760, Robert L. Lund.
Western Pacific Territories
    Served by Hawaii State Office.
West Virginia State Office
     Federal Building, 75 High Street, Room 320, Morgantown, WV 
26505-7500, (304) 284-4889, TDD (304) 284-4836, Craig St. Clair.
Wisconsin State Office
     4949 Kirschling Court, Stevens Point, WI 54481, (715) 345-7608 
(ext. 151), TDD (715) 345-7614, Sherry Engel.
Wyoming State Office
     100 East B, Federal Building, Room 1005, P.O. Box 820, Casper, 
WY 82602, (307) 261-6315, TDD (307) 261-6333, Jack Hyde.


FOR FURTHER INFORMATION CONTACT: For general information, applicants 
may contact Barbara Chism, Senior Loan Specialist, Multi-Family Housing 
Processing Division, Rural Housing Service, United States Department of 
Agriculture, Stop 0781, 1400 Independence Avenue, SW., Washington, DC, 
20250-0781, telephone (202) 690-1436 (voice) (this is not a toll free 
number) or (800) 877-8339 (TDD-Federal Information Relay Service).

SUPPLEMENTARY INFORMATION:

Programs Affected

    The Rural Rental Housing program is listed in the Catalog of 
Federal Domestic Assistance under Number 10.415, Rural Rental Housing 
Loans. Rental Assistance is listed in the Catalog under Number 10.427, 
Rural Rental Assistance Payments.

Discussion of Notice

I. Authority and Distribution Methodology

A. Authority
    Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) provides 
RHS with the authority to make loans to any individual, corporation, 
association, trust, Indian tribe, public or private nonprofit 
organization, consumer cooperative, or partnership to provide rental or 
cooperative housing and related facilities in rural areas for very-low, 
low, or moderate income persons or families, including elderly persons 
and persons with disabilities. Rental assistance (RA) is a tenant 
subsidy for very-low and low-income families residing in rural rental 
housing facilities with RHS financing and may be requested with 
applications for such facilities.
B. Distribution Methodology
    Nine percent of any appropriation will be set aside for eligible 
nonprofit entities and five percent will be set aside for the most 
Underserved Counties and Colonias (Cranston-Gonzalez National 
Affordable Housing Act). Additional information regarding distribution 
of funds will be provided when the appropriations act is passed.
C. Section 515 New Construction Funds
    For fiscal year 2004, the Administrator has determined that it is 
not practical to allocate funds to States because of funding 
limitations; therefore, section 515 new construction funds will be 
distributed to States based on a National competition, as follows:
    1. States will accept, review, score, and rank requests in 
accordance with 7 CFR part 1944, subpart E. The scoring factors are:
    (a) The presence and extent of leveraged assistance for the units 
that will serve RHS income-eligible tenants at basic rents comparable 
to those if RHS provided full financing, computed as a percentage of 
the RHS total development cost (TDC). RHS TDC excludes non-RHS eligible 
costs such as a developer's fee. The required applicant contribution is 
not considered leveraged assistance. Leveraged assistance includes 
loans and grants from other sources, contributions from the applicant 
above the required contribution indicated by the Sources and Uses 
Comprehensive Evaluation (available from the Rural Development State 
Office) and tax abatements or other savings in operating costs provided 
that, at the end of the abatement period when the benefit is no longer 
available, the basic rents are comparable to or lower than the basic 
rents if RHS provided full financing. Loan proposals that include 
secondary funds from other sources that have been requested but have 
not yet been committed will be processed as follows: the proposal will 
be scored based on the requested funds, provided (1) the applicant 
includes evidence of a

[[Page 5823]]

filed application for the funds; and (2) the funding date of the 
requested funds will permit processing of the loan request in the 
current funding cycle, or, if the applicant does not receive the 
requested funds, will permit processing of the next highest ranked 
proposal in the current year. Points will be awarded in accordance with 
the following table. (0 to 20 points)

------------------------------------------------------------------------
                   Percentage of leveraging                      Points
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75 or more...................................................         20
70-74........................................................         19
65-69........................................................         18
60-64........................................................         17
55-59........................................................         16
50-54........................................................         15
45-49........................................................         14
40-44........................................................         13
35-39........................................................         12
30-34........................................................         11
25-29........................................................         10
20-24........................................................          9
15-19........................................................          8
10-14........................................................          7
 5-9.........................................................          6
 0-4.........................................................          0
------------------------------------------------------------------------

    (b) The units to be developed are in a colonia, tribal land, 
Empowerment Zone (EZ), Enterprise Community (EC), or Rural Economic 
Area Partnership (REAP) community, or in a place identified in the 
State Consolidated Plan or State Needs Assessment as a high need 
community for multifamily housing. (20 points)
    (c) In states where RHS has an on-going formal working 
relationship, agreement, or Memorandum of Understanding (MOU) with the 
State to provide State resources (State funds, State RA, HOME funds, 
Community Development Block Grant (CDBG) funds, or Low-Income Housing 
Tax Credits) for RHS proposals; or where the State provides preference 
or points to RHS proposals in awarding such State resources, 20 points 
will be provided to loan requests that include such State resources in 
an amount equal to at least 5 percent of the total development cost. 
Native American Housing and Self Determination Act (NAHASDA) funds may 
be considered a State Resource if the Tribal Plan for NAHASDA funds 
contains provisions for partnering with RHS for multifamily housing. 
(National Office initiative)
    (d) The loan request includes donated land meeting the provisions 
of 7 CFR 1944.215(r)(4). (5 points)
    2. The National Office will rank all requests nationwide and 
distribute funds from any FY 2004 appropriation to States in rank 
order, within funding and RA limits. A lottery will be used for 
applications with tied point scores when they all cannot be funded. If 
insufficient funds or RA remain for the next ranked proposal, then that 
applicant will be given a chance to modify their application to bring 
it within remaining funding levels. This will be repeated for each next 
ranked eligible proposal until an award can be made or the list is 
exhausted.
D. Applications That Do Not Require New Construction Rental Assistance
    The Agency is inviting applications to develop units in markets 
that do not require RA. The market study for non-RA proposals must 
clearly demonstrate a need and demand for the units by prospective 
tenants at income levels that can support the proposed rents without 
tenant subsidies. The proposed units must offer amenities that are 
typical for the market area at rents that are comparable to 
conventional rents in the market for similar units.
E. Set-Asides
    Loan requests will be accepted for the following set-asides:
    1. Nonprofit set-aside. Nine percent of any appropriation act 
funding for the section 515 program will be set aside for nonprofit 
applicants. All loan proposals must be in designated places in 
accordance with 7 CFR part 1944, subpart E. A State or jurisdiction may 
receive one proposal from this set-aside, which cannot exceed $1 
million. A State could get additional funds from this set-aside if any 
funds remain after funding one proposal from each participating State. 
If there are insufficient funds to fund one loan request from each 
participating State, selection will be made by point score. If there 
are any funds remaining, they will revert to the National Office 
reserve. Funds from this set-aside will be available only to nonprofit 
entities, which may include a partnership that has as its general 
partner a nonprofit entity or the nonprofit entity's for-profit 
subsidiary which will be receiving low-income housing tax credits 
authorized under section 42 of the Internal Revenue Code of 1986. To be 
eligible for this set-aside, the nonprofit entity must be an 
organization that:
    (a) Will own an interest in the project to be financed and will 
materially participate in the development and the operations of the 
project;
    (b) Is a private organization that has nonprofit, tax exempt status 
under section 501(c)(3) or section 501(c)(4) of the Internal Revenue 
Code of 1986;
    (c) Has among its purposes the planning, development, or management 
of low-income housing or community development projects; and
    (d) Is not affiliated with or controlled by a for-profit 
organization.
    [As a point of clarification, the partnership may have only one 
general partner, which must meet the above requirements. A partnership 
with more than one general partner is not eligible for this set-aside.]
    2. Underserved counties and colonias set-aside. Five percent of any 
appropriation act funding for the Section 515 program will be set aside 
for the 100 most needy underserved counties or colonias as defined in 
section 509(f) of the Housing Act of 1949.

II. Funding Limits

    A. Individual loan requests may not exceed $1 million. This applies 
to regular section 515 funds and set-aside funds. The Administrator may 
make an exception to this limit in cases where a State's average total 
development costs exceed the National average by 50 percent or more.
    B. States may receive a maximum combined total of $2.5 million from 
regular section 515 funds and set-aside funds.

III. Rental Assistance (RA)

    RA will be held in the National Office for use with section 515 
Rural Rental Housing loans. RA may be requested by applicants, except 
for non-RA requests in accordance with Section I.D of this notice.

IV. Application Process

    All applications for section 515 new construction funds must be 
filed with the appropriate Rural Development State Office and must meet 
the requirements of 7 CFR part 1944, subpart E and Section V of this 
Notice. Incomplete applications will not be reviewed and will be 
returned to the applicant. No application will be accepted after 5 
p.m., local time, on the application deadline previously mentioned 
unless that date and time is extended by a Notice published in the 
Federal Register.

V. Application Submission Requirements

    A. Each application shall include all of the information, 
materials, forms and exhibits required by 7 CFR part 1944, subpart E as 
well as comply with the provisions of this Notice. Applicants are 
encouraged, but not required, to include a checklist and to have their 
applications indexed and tabbed to facilitate the review process. The 
Rural Development State Office will base its determination of 
completeness of the application and the eligibility of each

[[Page 5824]]

applicant on the information provided in the application.
    B. Applicants are advised to contact the Rural Development State 
Office serving the place in which they desire to submit an application 
for the following:
    1. Application information; and
    2. List of designated places for which applications for new section 
515 facilities may be submitted.

VI. Areas of Special Emphasis or Consideration

    The selection criteria contained in 7 CFR part 1944, subpart E 
include two optional criteria, one set by the National Office and one 
by the State Office. This fiscal year, the National Office initiative 
will be used in the selection criteria as follows: In states where RHS 
has an on-going formal working relationship, agreement, or Memorandum 
of Understanding (MOU) with the State to provide State resources (State 
funds, State RA, HOME funds, CDBG funds, or Low Income Housing Tax 
Credits (LIHTC)) for RHS proposals; or where the State provides 
preference or points to RHS proposals in awarding these State 
Resources, 20 points will be provided to loan requests that include 
such State resources in an amount equal to at least 5 percent of the 
total development cost. Native American Housing and Self Determination 
Act (NAHASDA) funds may be considered a State Resource if the Tribal 
Plan for NAHASDA funds contains provisions for partnering with RHS for 
multifamily housing. No State selection criteria will be used this 
fiscal year.

    Dated: February 2, 2004.
Arthur A. Garcia,
Administrator, Rural Housing Service.
[FR Doc. 04-2594 Filed 2-5-04; 8:45 am]
BILLING CODE 3410-XV-P