Federal Register / Vol. 76, No. 162 / Monday, August 22, 2011 / Notices 52305 

which are transmitted to the U.S. 

Department of Commerce, Bureau of 

Economic Analysis, by the USDA 

Economic Research Service (ERS) for 

use in constructing economy-wide 

estimates of Gross Domestic Product. 

This transmittal of data, prepared using 

the ARMS, is undertaken to satisfy a 

1956 agreement between the Office of 

Management and Budget and the 

Departments of Agriculture and 

Commerce that a single set of estimates 

be published on farm income. 

Chemical Use Surveys: Congress has 

mandated that NASS and ERS build 

nationally coordinated databases on 

agricultural chemical use and related 

farm practices; these databases are the 

primary vehicles used to produce 

specified environmental and economic 

estimates. The surveys will help provide 

the knowledge and technical means for 

producers and researchers to address 

on-farm environmental concerns in a 

manner that maintains agricultural 

productivity. 

Authority: These data will be 

collected under the authority of 7 U.S.C. 

2204(a). Individually identifiable data 

collected under this authority are 

governed by section 1770 of the Food 

Security Act of 1985, 7 U.S.C. 2276, 

which requires USDA to afford strict 

confidentiality to non-aggregated data 

provided by respondents. This Notice is 

submitted in accordance with the 

Paperwork Reduction Act of 1995 

Public Law 104–13 (at 44 U.S.C. 3501, 

et seq.) and Office of Management and 

Budget regulations at 5 CFR part 1320. 

NASS also complies with OMB 

Implementation Guidance, 

‘‘Implementation Guidance for Title V 

of the E-Government Act, Confidential 

Information Protection and Statistical 

Efficiency Act of 2002 (CIPSEA),’’ 

Federal Register, Vol. 72, No. 115, June 

15, 2007, p. 33362. 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average approximately 

35 minutes per survey. 

Respondents: Farmers, ranchers, farm 

managers, farm contractors, and farm 

households. 

Estimated Number of Respondents: 

Approximately 85,000 respondents will 

be sampled each year. Over half of these 

respondents will be contacted more 

than one time in a single year. 

Estimated Total Annual Burden on 

Respondents: Approximately 73,000 

hours per year. 

Copies of this information collection 

and related instructions can be obtained 

without charge from the NASS 

Clearance Officer, at (202) 690–2388 or 

at: ombofficer@nass.usda.gov. 

Comments: Comments are invited on: 

(a) Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the proposed collection 

of information including the validity of 

the methodology and assumptions used; 

(c) ways to enhance the quality, utility, 

and clarity of the information to be 

collected; and (d) ways to minimize the 

burden of the collection of information 

on those who are to respond, through 

the use of appropriate automated, 

electronic, mechanical, technological or 

other forms of information technology 

collection methods. All responses to 

this notice will become a matter of 

public record and be summarized in the 

request for OMB approval. 

Signed at Washington, DC, on July 27, 

2011. 

Joseph T. Reilly, 

Associate Administrator. 

[FR Doc. 2011–21361 Filed 8–19–11; 8:45 am] 

BILLING CODE 3410–20–P 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

Notice of Funding Availability: Section 

515 Multi-Family Housing Preservation 

Revolving Loan Fund (PRLF) 

Demonstration Program for Fiscal Year 

2011 

AGENCY: Rural Housing Service, USDA. 

ACTION: Notice. 

SUMMARY: The Rural Housing Service of 

Rural Development previously 

announced the availability of funds and 

the timeframe to submit applications for 

loans to private non-profit 

organizations, and State and local 

housing finance agencies, to carry out a 

demonstration program to provide 

revolving loans for the preservation and 

revitalization of low-income MultiFamily Housing (MFH) in a Notice 

published November 9, 2010 (75 FR 

68748). Rural Development did not 

receive sufficient applications to use all 

available funds. As a result, Rural 

Development is soliciting additional 

applications under this Notice. Housing 

that is assisted by this demonstration 

program must be financed by Rural 

Development through its MFH loan 

program under Sections 515, 514 and 

516 of the Housing Act of 1949. The 

goals of this demonstration program will 

be achieved through loans made to 

intermediaries. The intermediaries will 

establish their programs for the purpose 

of providing loans to ultimate recipients 

for the preservation and revitalization of 

low income Sections 515, 514 and 516 

MFH as affordable housing. 

DATES: The deadline for receipt of all 

applications in response to this Notice 

is 5 p.m., Eastern Time, September 21, 

2011. The application closing deadline 

is firm as to date and hour. Rural 

Development 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. Acceptance 

by a post office or private mailer does 

not constitute delivery. Facsimile, 

electronic transmissions and postage 

due applications will not be accepted. 

FOR FURTHER INFORMATION CONTACT: 

Sherry Engel, Financial and Loan 

Analyst, Multi-Family Housing, U.S. 

Department of Agriculture, Rural 

Housing Service, 4949 Kirschling Court, 

Stevens Point, Wisconsin 54481 or 

Timothy James, Financial and Loan 

Analyst, Multi-Family Housing, STOP 

0781 (Room 1263–S), U.S. Department 

of Agriculture, Rural Housing Service, 

1400 Independence Avenue, SW., 

Washington, DC 20250–0781 or by 

telephone at: (715) 345–7677 or (202) 

720–1610, TDD (302) 857–3585 or via 

e-mail at: sherry.engel@wdc.usda.gov or 

timothy.james@wdc.usda.gov. (Please 

note the phone numbers are not toll free 

numbers.) 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

Under the Paperwork Reduction Act, 

44 U.S.C. 3501 (2005) et seq., the Office 

of Management and Budget (OMB) must 

approve all ‘‘collections of information’’ 

by Rural Development. The Act defines 

‘‘collection of information’’ as a 

requirement for ‘‘answers to * * * 

identical reporting or recordkeeping 

requirements imposed on ten or more 

persons * * *.’’ (44 U.S.C. 3502(3)(A)) 

Because this Notice is expected to 

receive less than 10 respondents, the 

Paperwork Reduction Act does not 

apply. 

Programs Affected 

This program is listed in the Catalog 

of Federal Domestic Assistance under 

Number 10.415. 

Overview 

The Agriculture, Rural Development, 

Food and Drug Administration, and 

Related Agencies Appropriations Act, 

2010 (Pub. L. 111–80), October 21, 2009 

provided funding for, and authorized 

Rural Development to, establish a 

revolving loan fund demonstration 


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52306 Federal Register / Vol. 76, No. 162 / Monday, August 22, 2011 / Notices 

program for the preservation and 

revitalization of the Sections 515, 514 

and 516 MFH portfolio. The Department 

of Defense and Full Years Continuing 

Appropriations Act, 2011 (Pub. L. 112– 

10) April 15, 2011, continued the 

authority and provided funding for the 

revolving loan fund demonstration 

program. Sections 514, 515 and 516 of 

the Housing Act of 1949 as amended, 

provides Rural Development the 

authority to make loans for low income 

MFH, farm labor housing, and related 

facilities. 

Program Administration 

I. Funding Opportunities Description 

This Notice requests applications 

from eligible applicants for loans to 

establish and operate revolving loan 

funds for the preservation of lowincome MFH properties within the 

Rural Development Sections 515, 514 

and 516 MFH portfolios. Rural 

Development’s regulations for the 

Section 514, 515 and 516 MFH Program 

are published at 7 CFR Part 3560. 

Housing that is constructed or 

repaired must meet the Rural 

Development design and construction 

standards and the development 

standards contained in 7 CFR Part 1924, 

Subparts A and C, respectively. Once 

constructed, Section 514, 515, and 516 

MFH must be managed in accordance 

with the program’s regulation, 7 CFR 

Part 3560. Tenant eligibility is limited to 

persons who qualify as a very low-, or 

low-income, household or who are 

eligible under the requirements 

established to qualify for housing 

benefits provided by sources other than 

Rural Development, such as U.S. 

Department of Housing and Urban 

Development Section 8 assistance or 

Low Income Housing Tax Credit 

assistance, when a tenant receives such 

housing benefits. Additional tenant 

eligibility requirements are contained in 

7 CFR 3560.152, 3560.577, and 

3560.624. 

II. Award Information 

The Act made funding available for 

loans to private non-profit 

organizations, or such non-profit 

organizations’ affiliate loan funds and 

State and local housing finance 

agencies, to carry out a housing 

demonstration program to provide 

revolving loans for the preservation of 

low income MFH project. The total 

amount of funding available for this 

program is $7,038,926.76. This funding 

is a combination of carryover from 

previous fiscal years and FY 2011 funds. 

Loans to intermediaries under this 

demonstration program shall have an 

interest rate of no more than one percent 

and the Secretary of Agriculture may 

defer the interest and principal payment 

to Rural Development for up to three 

years during the first three years of the 

loan. The term of such loans shall not 

exceed 30 years. Funding priority will 

be given to entities with equal or greater 

matching funds from third parties, 

including housing tax credits for rural 

housing assistance and to entities with 

experience in the administration of 

revolving loan funds and the 

preservation of MFH. 

Funding Restrictions 

No loan made to a single intermediary 

applicant under this demonstration 

program may exceed $2,125,000 and 

any such loan may be limited by 

geographic area so that multiple loan 

recipients are not providing similar 

services to the same service areas. All 

PRLF loan obligations will expire two 

years after the date of obligation. 

Prior fiscal years PRLF loan 

obligations not closed within the above 

two-year obligation period must be deobligated to allow more immediate 

program use unless a six-month 

extension is granted by the National 

Office. The request for an extension will 

be sent to the National Office by the 

relevant State Office. 

Loans made to the PRLF ultimate 

recipient must meet the intent of 

providing decent, safe, and sanitary 

rural housing and be consistent with the 

requirements of Title V of the Housing 

Act of 1949, as amended. 

III. Eligibility Information 

Applicant Eligibility 

(1) Eligibility Requirements— 

Intermediary 

(a) The types of entities which may 

become intermediaries are private nonprofit organizations, which may include 

faith and community based 

organizations, and State and local 

housing finance agencies. 

(b) The intermediary must have: 

(i) The legal authority necessary for 

carrying out the proposed loan purposes 

and for obtaining, giving security, and 

repaying the proposed loan. 

(ii) A proven record of successfully 

assisting low-income Multi-Family 

Housing projects. Such record will 

include recent experience in loan 

making and loan servicing that is 

similar in nature to the loans proposed 

for the PRLF demonstration program. 

The applicant must provide 

documentation of a delinquency and 

loss rate not which does not exceed four 

percent. The applicant will be 

responsible for providing such 

information to Rural Development. 

(iii) A staff with loan making and 

servicing experience. 

(iv) A plan showing Rural 

Development, that the ultimate 

recipients will only use the funds to 

preserve low-income MFH projects. 

(c) No loans will be extended to an 

intermediary unless: 

(i) There is adequate assurance of 

repayment of the loan evidenced by the 

fiscal and managerial capabilities of the 

proposed intermediary. 

(ii) The amount of the loan, together 

with other funds available, is adequate 

to complete the preservation or 

revitalization of the project. 

(iii) The intermediary’s prior calendar 

year audit is an unqualified audited 

opinion signed by an independent 

certified public accountant acceptable to 

the Agency and performed in 

accordance with Generally Accepted 

Government Auditing Standards 

(GAGAS). The unqualified audited 

opinion must provide a statement 

relating to the accuracy of the financial 

statements. 

(d) Intermediaries, and the principals 

of the intermediaries, must not be 

suspended, debarred, or excluded based 

on the ‘‘List of Parties Excluded from 

Federal Procurement and 

Nonprocurement Programs’’. In 

addition, intermediaries and their 

principals must not be delinquent on 

Federal debt or be Federal judgment 

debtors. 

(e) The intermediary and its principal 

officers (including immediate family) 

must have no legal or financial interest 

in the ultimate recipient. 

(f) The intermediary’s Debt Service 

Coverage Ratio (DSCR) must be greater 

than 1.25 for the fiscal year immediately 

prior to the year of application. The 

DSCR is the financial ratio the loan 

committee will use to determine an 

applicant’s capacity to borrow and 

service additional debt. 

The loan committee will use the 

intermediary’s Earnings Before Interest 

and Taxes (EBIT) to determine DSCR. 

EBIT is determined by adding net 

income or net loss to depreciation and 

interest expense. The loan committee 

will compare the principal and interest 

payment multiplied by the DSCR to the 

EBIT derived from the applicants 

consolidated income statement. For 

example, if an applicant requests a loan 

amount of $2,000,000 at a one percent 

interest rate amortized over 30 years, the 

principal and interest payments will be 

$77,193, annually. Therefore, an 

applicant who requests $2,000,000 

needs an EBIT of at least $96,491.00 

($77,193 × 1.25). Only debt service from 


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unrestricted revolving loans will be 

considered in the above calculation. An 

unrestricted loan is an account in which 

the accumulated revenues are not 

dictated by a donor or sponsor. 

(g) Intermediaries that have received 

one or more PRLF loans may apply for 

and be considered for subsequent PRLF 

loans provided all the following are met: 

(i) For prior PRLF loans at least 50 

percent of an intermediary’s PRLF loans 

must have been disbursed to eligible 

ultimate recipients; 

(ii) Intermediaries requesting 

subsequent loans must meet the 

requirements of section III (1) of this 

NOTICE; 

(iii) The delinquency rate of the 

outstanding loans of the intermediary’s 

PRLF revolving fund does not exceed 4 

percent at the time of application for the 

subsequent loan; 

(iv) The intermediary is in 

compliance with all applicable 

regulations and its loan agreements with 

Rural Development; 

(v) Subsequent loans will not exceed 

$1 million each and not more than one 

loan will be approved by Rural 

Development for an intermediary in any 

single fiscal year unless the request is 

authorized by a PRLF appropriation; 

and 

(vi) Total outstanding PRLF 

indebtedness of an intermediary to 

Rural Development will not exceed $15 

million at any time. 

Only eligible applicants will be 

scored and ranked. Funding priority 

will be given to entities with equal or 

greater matching funds, including 

housing tax credits for rural housing 

assistance. Refer to the Selection 

Criteria section of the Notice for further 

information on funding priorities. 

(2) Eligibility requirements—Ultimate 

recipients. 

(a) To be eligible to receive loans from 

the PRLF, ultimate recipients must: 

(i) Currently have a Rural 

Development Section 515, 514 loans, or 

516 grant for the property to be assisted 

by the PRLF demonstration program. 

(ii) Certify that the principal officers 

(including their immediate family) of 

the ultimate recipient, hold no legal or 

financial interest in the intermediary. 

(iii) Be in compliance with all Rural 

Development programs and civil rights 

requirements or have an Agency 

approved workout plan in place which 

will correct a non-compliance status. 

(b) Any delinquent debt to the Federal 

Government including a non-tax 

judgment lien (other than a judgment in 

the U.S. tax courts), by the ultimate 

recipient or any of its principals, shall 

cause the proposed ultimate recipient to 

be ineligible to receive a loan from the 

PRLF. PRLF loan funds may not be used 

to satisfy the delinquency. 

(c) The ultimate recipient cannot be 

currently debarred or suspended from 

Federal Government programs. 

(d) There is a continuous need for the 

property in the community as affordable 

housing. 

Other Administrative Requirements 

(1) The following policies and 

regulations apply to loans to 

intermediaries made in response to this 

Notice: 

(a) PRLF intermediaries will be 

required to provide Rural Development 

with the following reports: 

(i) An annual audit; 

(A) The dates of the audit report 

period need not coincide with other 

reports on the PRLF. Audit reports shall 

be due 90 days following the audit 

period. The audit period will be set by 

the intermediary. The intermediary will 

notify Rural Development of the date. 

Audits must cover all of the 

intermediary’s activities. Audits will be 

performed by an independent certified 

public accountant. An acceptable audit 

will be performed in accordance with 

GAGAS and include such tests of the 

accounting records as the auditor 

considers necessary in order to express 

an unqualified audited opinion on the 

financial condition of the intermediary. 

(B) It is not intended that audits 

required by this program be separate 

from audits performed in accordance 

with State and local laws or for other 

purposes. To the extent feasible, the 

audit work for this program should be 

done in connection with these other 

audits. Intermediaries covered by OMB 

Circular A–133 should submit audits 

made in accordance with that circular. 

(ii) Quarterly or semiannual 

performance reports (due to Rural 

Development 30 days after the end of 

the fiscal quarter or half); 

(A) Performance reports will be 

required quarterly during the first year 

after loan closing. Thereafter, 

performance reports will be required 

semiannually. Also, Rural Development 

may resume requiring quarterly reports 

if the intermediary becomes delinquent 

in repayment of its loan or otherwise 

fails to fully comply with the provisions 

of its workout plan or Loan Agreement, 

or Rural Development determines that 

the intermediary’s PRLF is not 

adequately protected by the current 

financial status and paying capacity of 

the ultimate recipients. 

(B) These performance reports shall 

contain information only on the PRLF, 

or if other funds are included, the PRLF 

portion shall be segregated from the 

others; and in the case where the 

intermediary has more than one PRLF 

from Rural Development, a separate 

report shall be made for each PRLF. 

(C) The performance reports will 

include OMB Standard Form 269, 

Financial Status Report and OMB 

Standard Form 272, Federal Cash 

Transaction Report. These reports will 

provide information on the 

intermediary’s lending activity, income 

and expenses, financial condition and a 

summary of names and characteristics 

of the ultimate recipients the 

intermediary has financed. 

(iii) Annual proposed budget for the 

following year; and other reports as 

Rural Development may require from 

time to time regarding the conditions of 

the loan. 

(b) Security will consist of a pledge by 

the intermediary of all assets now or 

hereafter placed in the PRLF, including 

cash and investments, notes receivable 

from ultimate recipients, and the 

intermediary’s security interest in 

collateral pledged by ultimate 

recipients. Except for good cause 

shown, Rural Development will not 

obtain assignments of specific assets at 

the time a loan is made to an 

intermediary or ultimate recipient. The 

intermediary will covenant in the loan 

agreement that, in the event the 

intermediary’s financial condition 

deteriorates or the intermediary takes 

action detrimental to prudent fund 

operation or fails to take action required 

of a prudent lender, the intermediary 

will provide additional security, execute 

any additional documents, and 

undertake any reasonable acts Rural 

Development may request to protect 

Rural Development’s interest or to 

perfect a security interest in any asset, 

including physical delivery of assets 

and specific assignments to Rural 

Development. All debt instruments and 

collateral documents used by an 

intermediary in connection with loans 

to ultimate recipients may be assignable. 

(c) RHS may consider, on a case by 

case basis, subordinating its security 

interest on the ultimate recipient’s 

property to the lien of the intermediary 

so that Rural Development has a junior 

lien interest when an independent 

appraisal verifies the Rural 

Development subordinated lien will 

continue to be fully secured. 

(d) The term of the loan to an ultimate 

recipient may not exceed the less of 30 

years or the remaining term of the Rural 

Development loan. 

(e) When loans are made to ultimate 

recipients restrictive-use provisions 

must be incorporated, as outlined in 7 

CFR Section 3560.662. 

(f) The policies and regulations 

contained in 7 CFR Part 1901, Subpart 


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F regarding historical and 

archaeological properties apply to all 

loans funded under this Notice. 

(g) The policies and regulations 

contained in 7 CFR Part 1940, Subpart 

G (and any successor regulation) 

regarding environmental assessments 

apply to all loans to ultimate recipients 

funded under this Notice. Loans to 

intermediaries under this program will 

be considered a categorical exclusion 

under the National Environmental 

Policy Act, requiring the completion of 

Form RD 1940–22, ‘‘Environmental 

Checklist for Categorical Exclusions,’’ 

by Rural Development. 

(h) An Intergovernmental Review,’’ 

will be conducted in accordance with 

the procedures contained in 7 CFR part 

3015, subpart V, if the applicant is a 

cooperative. 

(2) The intermediary agrees to the 

following: 

(a) To obtain written Rural 

Development approval, before the first 

lending of PRLF funds to an ultimate 

recipient, of: 

(i) All forms to be used for relending 

purposes, including application forms, 

loan agreements, promissory notes, and 

security instruments; and 

(ii) The intermediary’s policy with 

regard to the amount and form of 

security to be required. 

(b) To obtain written approval from 

Rural Development before making any 

significant changes in forms, security 

policy, or the intermediary’s workout 

plan. Rural Development may approve 

changes in forms, security policy, or 

workout plans at any time upon a 

written request from the intermediary 

and determination by Rural 

Development that the change will not 

jeopardize repayment of the loan or 

violate any requirement of this Notice or 

other Rural Development regulations. 

The intermediary must comply with the 

workout plan approved by Rural 

Development so long as any portion of 

the intermediary’s PRLF loan is 

outstanding; 

(c) To allow Rural Development to 

take a security interest in the PRLF, the 

intermediary’s portfolio of investments 

derived from the proceeds of the loan 

award, and other rights and interests as 

Rural Development may require; 

(d) To return, as an extra payment on 

the loan any funds that have not been 

used in accordance with the 

intermediary’s workout plan by a date 

two years from the date of the loan 

agreement. The intermediary 

acknowledges that Rural Development 

may cancel the approval of any funds 

not yet delivered to the intermediary if 

funds have not been used in accordance 

with the intermediary’s workout plan 

within the two year period. Rural 

Development, at its sole discretion, may 

allow the intermediary additional time 

to use the loan funds by delaying 

cancellation of the funds by not more 

than three additional years. If any loan 

funds have not been used by five years 

from the date of the loan agreement, the 

approval will be canceled for any funds 

that have not been delivered to the 

intermediary and the intermediary will 

return, as an extra payment on the loan, 

any funds it has received and not used 

in accordance with the workout plan. In 

accordance with the Rural Development 

approved promissory note, regular loan 

payments will be based on the amount 

of funds actually drawn by the 

intermediary. 

(e) The intermediary will be required 

to enter into a Rural Development 

approved loan agreement and 

promissory note. The intermediary will 

receive a 30-year loan at a one percent 

interest rate. The loan will be deferred 

for up to three years if requested in the 

intermediary’s work plan. 

(f) Loans made to the PRLF ultimate 

recipient must meet the intent of 

providing decent, safe, and sanitary 

rural housing by preserving and 

regulating existing properties financed 

with 514, 515, and 516 funds. They 

must also be consistent with the 

requirements of Title V of the Housing 

Act of 1949, as amended. 

(g) When an intermediary proposes to 

make a loan from the PRLF to an 

ultimate recipient, Rural Development 

concurrence is required prior to final 

approval of the loan. The intermediary 

must submit a request for Rural 

Development concurrence of a proposed 

loan to an ultimate recipient. Such 

request must include: 

(i) Certification by the intermediary 

that: 

(A) The proposed ultimate recipient is 

eligible for the loan; 

(B) The proposed loan is for eligible 

purposes; 

(C) The proposed loan complies with 

all applicable statutes and regulations; 

and 

(D) Prior to closing the loan to the 

ultimate recipient, the intermediary and 

its principal officers (including 

immediate family) hold no legal or 

financial interest in the ultimate 

recipient, and the ultimate recipient and 

its principal officers (including 

immediate family) hold no legal or 

financial interest in the intermediary. 

(ii) Copies of sufficient material from 

the ultimate recipient’s application and 

the intermediary’s related files, to allow 

Rural Development to determine the: 

(A) Name and address of the ultimate 

recipient; 

(B) Loan purposes; 

(C) Interest rate and term; 

(D) Location, nature, and scope of the 

project being financed; 

(E) Other funding included in the 

project; 

(F) Nature and lien priority of the 

collateral; and 

(G) Environmental impacts of this 

action. This will include an original 

Form RD 1940–20, ‘‘Request for 

Environmental Information,’’ completed 

and signed by the intermediary. 

Attached to this form will be a 

statement stipulating the age of the 

building to be rehabilitated and a 

completed and signed Federal 

Emergency Management Agency 

(FEMA) Form 81–93, ‘‘Standard Flood 

Hazard Determination.’’ If the age of the 

building is over 50 years or if the 

building is either on or eligible for 

inclusion in the National Register of 

Historic Places, then the intermediary 

will immediately contact Rural 

Development to begin Section 106 of the 

National Historic Preservation Act of 

1966 consultation with the State 

Historic Preservation Officer. If the 

building is located within a 100-year 

flood plain, then the intermediary will 

immediately contact Rural Development 

to analyze any effects as outlined in 7 

CFR part 1940, Subpart G, Exhibit C. 

The intermediary will assist Rural 

Development in any additional 

requirements necessary to complete the 

environmental review. 

(ii) Such other information as Rural 

Development may request on specific 

cases. 

(h) Upon receipt of a request for 

concurrence in a loan to an ultimate 

recipient Rural Development will: 

(i) Review the material submitted by 

the intermediary for consistency with 

Rural Development’s preservation and 

revitalization principles which include 

the following; 

(A) There is a continuing need for the 

property in the community as affordable 

housing. If Rural Development 

determines there is no continuing need 

for the property the ultimate recipient is 

ineligible for the loan; 

(B) When the transaction is complete, 

the property will be owned and 

controlled by eligible Section 514, 515, 

or 516 borrowers; 

(C) The transaction will address the 

physical needs of the property; 

(D) Existing tenants will not be 

displaced because of increased posttransaction rents; 

(E) Post-transaction basic rents will 

not exceed comparable market rents; 

and 

(F) Any equity loan amount will be 

supported by a market value appraisal. 


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(ii) The Intermediary shall pledge as 

collateral for non-Rural Development 

funds its PRLF Revolving Fund, 

including its portfolio of investments 

derived from the proceeds of other 

funds and this loan award. 

(iii) Issue a letter concurring with the 

loan when all requirements have been 

met or notify the intermediary in 

writing the reasons for denial when 

Rural Development determines it is 

unable to concur with the loan. 

IV. Application and Submission 

Information 

Submission Address 

Applications should be submitted to 

U.S. Department of Agriculture, Rural 

Housing Service; Attention: Timothy 

James, Financial and Loan Analyst, 

Multi-Family Housing STOP 0781 

(Room 1263–S), U.S. Department of 

Agriculture, Rural Housing Service, 

1400 Independence Avenue, SW., 

Washington, DC 20250–0781. 

The application process is a two step 

process: First, all applicants will submit 

proposals to the National Office for loan 

committee review. The initial loan 

committee will determine if the 

borrower is eligible, score the 

application, and rank the applicants 

according to the criteria established in 

this Notice. Only eligible borrowers will 

be scored. The loan committee will 

select proposals for further processing. 

In the event that a proposal is selected 

for further processing and the applicant 

declines, the next highest ranked 

unfunded applicant may be selected. 

Second, after the loan is obligated to 

the intermediary but prior to the loan 

closing, the State Office in the 

applicant’s residence or State where the 

applicant will be doing its intermediary 

work will provide written approval of 

all forms to be used for relending 

purposes, including application forms, 

loan agreements, promissory notes, and 

security instruments. Additionally, the 

State Office will provide written 

approval of the applicant’s binding 

policy with regard to the amount and 

form of security to be required. 

Once the loan closes, the applicant 

will be required to comply with the 

terms of its work plan which describes 

how the money will be used, the loan 

agreement, the promissory note and any 

other loan closing documents. At the 

time of loan closing, Rural Development 

and loan recipient shall enter into a loan 

agreement and a promissory note 

acceptable to Rural Development. Loans 

obligated by State Offices to 

intermediaries must close on or before 

the second anniversary of the obligation. 

Applicants who have not closed by this 

date must de-obligate PRLF funds to 

allow further program use of funds. 

Application Requirements 

The application must contain the 

following: 

(1) A summary page, that is doublespaced and not in narrative form, that 

lists the following items: 

(a) Applicant’s name. 

(b) Applicant’s Taxpayer 

Identification Number. 

(c) Applicant’s address. 

(d) Applicant’s telephone number. 

(e) Name of applicant’s contact 

person, telephone number, and address. 

(f) Amount of loan requested. 

(2) Form RD 4274–1, Application for 

Loan (Intermediary Relending 

Program).’’ This form can be found at: 

http://forms.sc.egov.usda.gov/ 

efcommon/eFileServices/eForms/ 

RD4274–1.PDF. 

(3) A written workout plan and other 

evidence Rural Development require 

that demonstrates the feasibility of the 

intermediary’s program to meet the 

objectives of this demonstration 

program. The plan must, at a minimum: 

(a) Document the intermediary’s 

ability to administer this demonstration 

program in accordance with the 

provisions of this Notice. In order to 

adequately demonstrate the ability to 

administer the program, the 

intermediary must provide a complete 

listing of all personnel responsible for 

administering this program along with a 

statement of their qualifications and 

experience. The personnel may be either 

members or employees of the 

intermediary’s organization or contract 

personnel hired for this purpose. If the 

personnel are to be contracted for, the 

contract between the intermediary and 

the entity providing such service will be 

submitted for Rural Development 

review, and the terms of the contract 

and its duration must be sufficient to 

adequately service Rural Development 

loan through to its ultimate conclusion. 

If Rural Development determines the 

personnel lack the necessary expertise 

to administer the program, the loan 

request will be denied; 

(b) Document the intermediary’s 

ability to commit financial resources 

under the control of the intermediary to 

the establishment of the demonstration 

program. This should include a 

statement of the sources of non-Rural 

Development funds for administration 

of the intermediary’s operations and 

financial assistance for projects; 

(c) Demonstrate a need for loan funds. 

As a minimum, the intermediary should 

identify a sufficient number of proposed 

and known ultimate recipients to justify 

Agency funding of its loan request, or 

include well developed targeting criteria 

for ultimate recipients consistent with 

the intermediary’s mission and strategy 

for this demonstration program, along 

with supporting statistical or narrative 

evidence that such prospective 

recipients exist in sufficient numbers to 

justify Rural Development funding of 

the loan request; 

(d) Include a list of proposed fees and 

other charges it will assess to the 

ultimate recipients; 

(e) Provide documentation to Rural 

Development the intermediary has 

secured commitments of significant 

financial support from public agencies 

and private organizations or have 

received tax credits for the calendar year 

prior to this Notice; 

(f) Include the intermediary’s plan 

(specific loan purposes) for relending 

the loan funds. The plan must be of 

sufficient detail to provide Rural 

Development with a complete 

understanding of what the intermediary 

will accomplish by lending the funds to 

the ultimate recipient and the complete 

mechanics of how the funds will flow 

from the intermediary to the ultimate 

recipient. The service area, eligibility 

criteria, loan purposes, fees, rates, 

terms, collateral requirements, limits, 

priorities, application process, method 

of disposition of the funds to the 

ultimate recipient, monitoring of the 

ultimate recipient’s accomplishments, 

and reporting requirements by the 

ultimate recipient’s management must 

at least be addressed by the 

intermediary’s relending plan; 

(g) Provide a set of goals, strategies, 

and anticipated outcomes for the 

intermediary’s program. Outcomes 

should be expressed in quantitative or 

observable terms such as low-income 

housing complexes rehabilitated or lowincome housing units preserved, and 

should relate to the purpose of this 

demonstration program; and 

(h) Providing technical assistance to 

ultimate recipients is not required as 

part of this program. However if the 

intermediary provides technical 

assistance, the intermediary will 

provide specific information as to how 

and what type of technical assistance 

the intermediary will provide to the 

ultimate recipients and potential 

ultimate recipients. For instance 

describe the qualifications of the 

technical assistance providers, the 

nature of technical assistance that will 

be available, and expected and 

committed sources of funding for 

technical assistance. If other than the 

intermediary itself, describe the 

organizations providing such assistance 

and the arrangements between such 

organizations and the intermediary. 


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(4) A pro forma balance sheet at startup and projected balance sheets for at 

least three additional years; and 

projected cash flow and earnings 

statements for at least three years 

supported by a list of assumptions 

showing the basis for the projections. 

The projected earnings statement and 

balance sheet must include one set of 

projections that shows the PRLF must 

extend to include a year with a full 

annual installment on the PRLF loan. 

(5) A written agreement of the 

intermediary to Rural Development 

agreeing to the audit requirements. 

(6) Form RD 400–4, ‘‘Assurance 

Agreement.’’ A copy of which can be 

obtained at: http:// 

forms.sc.egov.usda.gov/efcommon/ 

eFileServices/eForms/RD400–4.PDF. 

(7) Complete organizational 

documents, including evidence of 

authority to conduct the proposed 

activities. 

(8) Most recent unqualified audit 

report signed by a CPA and prepared in 

accordance with GAGAS. 

(9) Form RD 1910–11, Applicant 

Certification Federal Collection Policies 

for Consumer or Commercial Debts.’’ A 

copy of which can be obtained at: 

http://forms.sc.egov.usda.gov/ 

efcommon/eFileServices/eForms/ 

RD1910–11.PDF. 

(10) Form AD–1047, ‘‘Certification 

Regarding Debarment, Suspension, and 

other Responsibility Matters—Primary 

Covered Transactions.’’ A copy of 

which can be obtained at: http:// 

www.ocio.usda.gov/forms/doc/AD1047– 

F–01–92.PDF. 

(11) Exhibit A–1 of RD Instruction 

1940–Q, ‘‘Certification for Contracts, 

Grants, and Loans.’’ A copy of which 

can be obtained at: http:// 

www.rurdev.usda.gov/me/CBP/const/ 

1940qa1.pdf. 

(12) Copies of the applicant’s tax 

returns for each of the three years prior 

to the year of application, and most 

recent audited financial statements. 

(13) A separate one-page information 

sheet listing each of the ‘‘Selection 

Criteria’’ contained in this Notice, 

followed by the page numbers of all 

relevant material and documentation 

that is contained in the proposal that 

supports these criteria. Applicants are 

also encouraged, but not required; to 

include a checklist of all of the 

application requirements and to have 

their application indexed and tabbed to 

facilitate the review process. 

(14) Financial statements 

(consolidated or unconsolidated) for the 

year prior to this Notice. 

(15) A borrower authorization 

statement allowing Rural Development 

the authorization to verify past and 

present earnings with the preparer of 

the intermediary’s financial statements. 

V. Application Review Information 

All applications will be evaluated by 

a loan committee. The loan committee 

will make recommendations to the 

Rural Housing Service Administrator 

concerning preliminary eligibility 

determinations and for the selection of 

applications for further processing 

based on the selection criteria contained 

in this Notice and the availability of 

funds. The Administrator will inform 

applicants of the status of their 

application within 30 days of the loan 

application closing date set forth in this 

Notice. 

Selection Criteria 

Selection criteria points will be 

allowed only for factors evidenced by 

well documented, reasonable plans 

which provide assurance that the items 

have a high probability of being 

accomplished. The points awarded will 

be as specified in paragraphs (1) through 

(4) of this section. In each case, the 

intermediary’s application must provide 

documentation that the selection criteria 

have been met in order to qualify for 

selection criteria points. If an 

application does not cover one of the 

categories listed, it will not receive 

points for that criteria. 

(1) Other funds. Points allowed under 

this paragraph are to be based on 

documented successful history or 

written evidence that the funds are 

available. 

(a) The intermediary will obtain nonRural Development loan or grant funds 

or provide housing tax credits 

(measured in dollars) to pay part of the 

cost of the ultimate recipients’ project 

cost. Points for the amount of funds 

from other sources are as follows: 

(i) At least 10 percent but less than 25 

percent of the total development cost (as 

defined in 7 CFR part 3560 Section 

3560.11)—5 points; 

(ii) At least 25 percent but less than 

50 percent of the total development 

cost—10 points; or 

(iii) 50 percent or more of the total 

development cost—15 points. 

(b) The intermediary will provide 

loans to each ultimate recipient from its 

own funds (not loan or grant) to pay part 

of the ultimate recipients’ project cost. 

The amount of the intermediary’s own 

funds will average per project: 

(i) At least 10 percent but less than 25 

percent of the total development costs— 

5 points; 

(ii) At least 25 percent but less than 

50 percent of total development costs— 

10 points; or 

(iii) 50 percent or more of total 

development costs—15 points. 

(2) Intermediary contribution. The 

Intermediary will contribute its own 

funds not derived from Rural 

Development. The Non-Rural 

Development contributed funds will be 

placed in a separate account from the 

PRLF loan account. The intermediary 

shall contribute funds not derived from 

Rural Development into a separate bank 

account or accounts according to their 

‘‘workout plan.’’ These funds are to be 

placed into an interest bearing countersignature-account for three years as set 

forth in the loan agreement. The 

counter-signature-account will require a 

signature from a Rural Development 

employee and intermediary. After three 

years, these funds shall be commingled 

with the PRLF to provide loans to the 

ultimate recipient for the preservation 

and revitalization of Section 515 MultiFamily Housing. 

The amount of non-Agency derived 

funds contributed to the PRLF will 

equal the following percentage of Rural 

Development PRLF loan: 

(a) At least 5 percent but less than 15 

percent—15 points; 

(b) At least 15 percent but less than 

25 percent—30 points; or 

(c) 25 percent or more—50 points. 

(3) Experience. The intermediary has 

actual experience in the administration 

of revolving loan funds and the 

preservation of Multi-Family Housing, 

with a successful record, for the 

following number of full years. 

Applicants must have actual experience 

in both the administration of revolving 

loan funds and the preservation of 

Multi-Family Housing in order to 

qualify for points under the selection 

criteria. If the number of years of 

experience differs between the two 

types of above listed experience, the 

type of experience with the lesser 

number of years will be used for the 

selection criteria. 

(a) At least one but less than three 

years—5 points; 

(b) At least three but less than five 

years—10 points; 

(c) At least five but less than 10 

years—20 points; or 

(d) 10 or more years—30 points. 

(4) The DER is the financial ratio used 

to determine how much debt an 

applicant has relative to its equity. DER 

is calculated from the balance sheet by 

adding the short term or current debt 

plus the long term debt, and then 

dividing that number by the 

intermediary’s equity. In order to 

receive points the intermediary must 

submit a summary of how the DER was 

calculated. 


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Federal Register / Vol. 76, No. 162 / Monday, August 22, 2011 / Notices 52311 

(5) Administrative. The Administrator 

may assign up to 25 additional points to 

an application to account for the 

following items not adequately covered 

by the other priority criteria set out in 

this section. The items that will be 

considered are the amount of funds 

requested in relation to the amount of 

need; a particularly successful 

affordable housing development record; 

a service area with no other PRLF 

coverage; a service area with severe 

affordable housing problems; a service 

area with emergency conditions caused 

by a natural disaster; an innovative 

proposal; the quality of the proposed 

program; economic development plan 

from the local community, particularly 

a plan prepared as part of a request for 

an Empowerment Zone/Enterprise 

Community designation; or excellent 

utilization of an existing revolving loan 

fund program. The Administrator will 

document the reasons for the particular 

point allocation. 

VI. Appeal Process 

All adverse determinations regarding 

applicant eligibility and the awarding of 

points as part of the selection process 

are appealable. Instructions on the 

appeal process will be provided at the 

time an applicant is notified of the 

adverse action. 

Equal Opportunity and 

Nondiscrimination Requirements 

(1) In accordance with the Fair 

Housing Act, Title VI of the Civil Rights 

Act of 1964, the Equal Credit 

Opportunity Act, the Age 

Discrimination Act of 1975, Executive 

Order 12898, the Americans with 

Disabilities Act, and Section 504 of the 

Rehabilitation Act of 1973, neither the 

intermediary nor Rural Development 

will discriminate against any employee, 

proposed intermediary or proposed 

ultimate recipient on the basis of sex, 

marital status, race, familial status, 

color, religion, national origin, age, 

physical or mental disability (provided 

the proposed intermediary or proposed 

ultimate recipient has the capacity to 

contract), because all or part of the 

proposed intermediary’s or proposed 

ultimate recipient’s income is derived 

from public assistance of any kind, or 

because the proposed intermediary or 

proposed ultimate recipient has in good 

faith exercised any right under the 

Consumer Credit Protection Act, with 

respect to any aspect of a credit 

transaction anytime Rural Development 

loan funds are involved. 

(2) The policies and regulations 

contained in 7 CFR Part 1901, Subpart 

E apply to this program. 

(3) The Rural Housing Service (RHS) 

Administrator will assure that equal 

opportunity and nondiscrimination 

requirements are met in accordance 

with the Fair Housing Act, Title VI of 

the Civil Rights Act of 1964, the Equal 

Credit Opportunity Act, the Age 

Discrimination Act of 1975, Executive 

Order 12898, the Americans with 

Disabilities Act, and Section 504 of the 

Rehabilitation Act of 1973. 

(4) All housing must meet the 

accessibility requirements found at 7 

CFR Section 3560.60(d). 

(5) To file a complaint of 

discrimination, write to USDA, 

Assistant Secretary for Civil Rights 

Office of the Assistant Secretary for 

Civil Rights, 1400 Independence 

Avenue, SW., STOP 9410, Washington, 

DC 20250–9410, or call (866) 632–9992 

(English) or (800) 877–8339 (TDD) or 

(866) 377–8642 (English Federal-relay) 

or (800) 845–6136 (Spanish Federalrelay). USDA is an equal opportunity 

provider, employer, and lender. The 

U.S. Department of Agriculture 

prohibits discrimination in all its 

programs and activities on the basis of 

race, color, national origin, age, 

disability, and where applicable, sex, 

marital status, familial status, parental 

status, religion, sexual orientation, 

genetic information, political beliefs, 

reprisal, or because all or part of an 

individual’s income is derived from any 

public assistance program. (Not all 

prohibited bases apply to all programs.) 

Persons with disabilities who require 

alternative means for communication of 

program information (Braille, large 

print, audiotape, etc.) should contact 

USDA’s TARGET Center at (202) 720– 

2600 (voice and TDD). 

Dated: August 16, 2011. 

Robert Lewis, 

Acting Administrator, Rural Housing Service. 

[FR Doc. 2011–21318 Filed 8–19–11; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF COMMERCE 

Submission for OMB Review; 

Comment Request 

The Department of Commerce will 

submit to the Office of Management and 

Budget (OMB) for clearance the 

following proposal for collection of 

information under the provisions of the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). 

Agency: International Trade 

Administration (ITA). 

Title: Application for the President’s 

‘‘E’’ and ‘‘E’’ Star Awards for Export 

Expansion. 

Form Number(s): ITA–725P. 

OMB Control Number: 0625–0065. 

Type of Request: Regular submission 

(revision and extension of a currently 

approved information collection). 

Burden Hours: 600. 

Number of Respondents: 30. 

Average Hours per Response: 20. 

Needs and Uses: Expanding the U.S. 

exports is a national priority and 

essential to improving U.S. trade 

performance. The Department of 

Commerce, International Trade 

Administration, U.S. Commercial 

Service serves as the key U.S. 

government agency responsible for 

promoting exports of goods and services 

from the United States and assisting 

U.S. exporters in their dealings with 

foreign governments. 

The ‘‘E’’ Award Program was 

established by Executive Order 10978 

(EO), to afford suitable recognition to 

persons, firms, or organizations that 

contribute significantly in the effort to 

increase U.S. exports and to encourage 

U.S. companies to sell their products 

and services internationally. The EO 

authorized the Secretary of Commerce, 

in cooperation with the Secretary of the 

Interior, the Secretary of Agriculture, 

the Administrator of the Small Business 

Administration, and the heads of other 

Government departments and agencies, 

to establish procedures for the 

nomination and the granting of awards. 

A second Presidential award, the ‘‘E 

Star’’ Award, was authorized by the 

Secretary of Commerce, to afford 

continuing recognition of noteworthy 

export promotion efforts. 

The application form is used to 

determine eligibility for the ‘‘E’’ Award 

and the ‘‘E Star’’ Award within 

established criteria. In addition to the 

application form and written 

justification, applicants can submit 

supporting materials that show their 

qualification for the respective awards, 

although supporting materials are not 

required. Examples of supporting 

materials can include: Translated 

company and product literature; 

promotional materials; client impact 

statements; or anything the company or 

organization deems relevant to its 

qualification for the respective award. 

The ‘‘E’’ and ‘‘E Star’’ Awards are the 

highest honors that our nation bestows 

upon American exporters and 

organizations that contribute to 

exporting. These awards recognize firms 

and organizations for their competitive 

achievements in world markets, as well 

as the benefits of their success to the 

U.S. economy. The purpose of this 

information collection is to determine 

the applicant’s eligibility to receive a 

Presidential award. 


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