Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / Notices 39859

local nonprofit organizations in rural

areas to plan, develop, and implement

programs for resource conservation and

development. Through the

establishment of RC&D Areas, the

program establishes or improves

coordination systems in rural

communities and builds rural

community leadership skills to

effectively utilize Federal, State, and

local programs for the communities’

benefit.

Current program objectives focus on

the ‘‘quality of life’’ improvements

achieved through natural resources

conservation and community

development. Such activities lead to

sustainable communities, prudent land

use, and the sound management and

conservation of natural resources.

Assistance is provided, as authorized

by the Secretary of Agriculture, to

designated RC&D Areas through their

organized RC&D Councils, comprised of

local leaders. RC&D Councils and their

sponsors, in association with State,

local, and Federal governments, and

non-profit organizations, initiate and

lead the planning and implementation

of their locally developed RC&D Area

plans. Councils also obtain assistance

from other local, State, and Federal

agencies; private organizations; and

foundations.

USDA prohibits discrimination in its

programs and activities on the basis of

race, color, national origin, gender,

religion, age, sexual orientation, or

disability. Additionally, discrimination

on the basis of political beliefs and

marital or family status is also

prohibited by statutes enforced by

USDA. (Not all prohibited bases apply

to all programs.) Persons with

disabilities who require alternative

means for communication of program

information (braille, large print, and

audio tape, etc.) should contact the

USDA’s Target Center at (202) 720–2600

(voice and TDD).

To file a complaint of discrimination

to USDA, write Director, Office of Civil

Rights, Room 326–W, Whitten Building,

14th and Independence Avenue, SW,

Washington, DC 20250–9410, or call

(202) 720–5964 (voice and TDD). The

USDA is an equal opportunity provider

and employer.

Signed at Washington, DC on June 21,

2000.

Pearlie S. Reed,

Chief, Natural Resources Conservation

Service.

[FR Doc. 00–16382 Filed 6–27–00; 8:45 am]

BILLING CODE 3410–16–P

DEPARTMENT OF AGRICULTURE

Rural Housing Service

Notice of Availability of Funding and

Requests for Proposals for Guaranteed

Loans Under the Section 538

Guaranteed Rural Rental Housing

Program

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

SUMMARY: This Notice of Fund

Availability (NOFA or Notice)

announces the timeframe and

submission requirements and deadlines

to submit proposals in the form of

‘‘NOFA responses’’ for the section 538

Guaranteed Rural Rental Housing

Program (GRRHP). Eligible lenders, as

defined in paragraph VII(D) of this

NOFA are invited to submit NOFA

proposals for the development of

affordable rental housing to serve rural

America. This document describes the

overall application process, including

the selection and identification of any

priorities for selection of proposed

applications, and the process by which

the Rural Housing Service (RHS or

Agency) will score and rank the

proposals. Information will also be

included concerning the submission

requirements. Lenders may submit their

application concurrently with their

NOFA response.

DATES: The deadline for receipt of

NOFA responses is 4:00 PM, Eastern

Daylight Savings Time on August 15,

2000. Lenders intending to mail a NOFA

response must provide sufficient time to

permit delivery on or before the closing

deadline date and time. Acceptance by

a post office or private mailer does not

constitute delivery. Facsimile (FAX),

Cash on Delivery (COD), and postage

due NOFA responses or applications

will not be accepted. NOFA responses

will not be accepted after the deadlines

previously mentioned, unless that date

and time is extended by another Notice

published in the Federal Register.

ADDRESSES: Responses for participation

in the program must be identified as

‘‘Section 538 Guaranteed Rural Rental

Housing Program’’ on the envelope and

be submitted to: Director, Multi-Family

Housing Processing Division, Rural

Housing Service, U.S. Department of

Agriculture, Room 1263 (STOP 0781),

1400 Independence Ave. SW,

Washington, DC 20250–0781.

FOR FURTHER INFORMATION CONTACT:

Joyce Allen, Deputy Director,

Guaranteed Loans, Multi-Family

Housing Processing Division, U.S.

Department of Agriculture, South

Agriculture Building, Room 1271, STOP

0781, 1400 Independence Ave. SW,

Washington, DC 20250–0781. E-mail:

jallen@rdmail.rural.usda.gov.

Telephone: (202) 690–4499. This

number is not toll-free. Hearing or

speech impaired persons may access

that number by calling the Federal

Information Relay Service toll-free at

(800) 877–8339.

SUPPLEMENTARY INFORMATION: The

GRRHP is operated under the direction

of title 7 CFR part 3565. The Guaranteed

Rural Rental Housing Program

Origination and Servicing Handbook

(HB–1–3565) is available to provide

lenders and the general public with the

‘‘how to’’ administrative guidance

needed to administer the program. HB–

1–3565, which contains a copy of 7 CFR

part 3565 in Appendix 1, may be found

on the Rural Development Regulation

web site internet address of ‘‘http://

rdinit.usda.gov/regs’’ or copies may be

obtained from the Rural Housing

Service Multi-Family Housing

Processing Division at 202–720–1604.

This is not a toll-free number. Hearingor speech-impaired persons may access

that number by calling the Federal

Information Relay Service toll-free at

(800) 877–8339.

Discussion of Notice

I. Purpose and Program Summary

On March 28, 1996, President Clinton

signed the ‘‘Housing Opportunity

Program Extension Act of 1996,’’ Public

Law 104–120, authorizing the section

538 Guaranteed Rural Rental Housing

Program (GRRHP). The program is

designed to increase the supply of

affordable multifamily housing through

partnerships between Rural Housing

Service (RHS) and major lending

sources, as well as state and local

housing finance agencies and bond

issuers. Qualified lenders will be

authorized to originate, underwrite, and

close loans for multifamily housing

projects requiring new construction or

acquisition with rehabilitation of at least

$15,000 per unit, when the acquisition

results in the creation of new affordable

housing units. RHS may guarantee such

loans upon presentation and review of

appropriate certifications, project

information and satisfactory completion

of the appropriate level of

environmental review by RHS. Lenders

will be responsible for the full range of

loan management, servicing, and

property disposition activities

associated with these projects. The

lender will be expected to provide

servicing or contract for servicing of

each loan it underwrites. In turn, RHS

will guarantee the lender’s loan up to 90

percent of total development cost and

39860 Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / Notices

commits to pay up to a maximum of 90

percent of the outstanding principal and

interest balance of such loan in the case

of default of the loan and filing of a

claim. In no event will the Agency pay

more than 90 percent of the original

principal amount. This means that the

Agency will have a risk exposure under

the GRRHP of approximately 80 percent

of the total development cost. Any

losses would be split on a pro-rata basis

between the lender and the Agency from

the first dollar lost.

II. Allocation

This NOFA announces the availability

of approximately $36.8 million in NonInterest Credit section 538 program

dollars for FY 2000. There are no

Interest Credit funds remaining for FY

2000. Responses requesting interest

credit assistance will not be considered

in this NOFA. The Fiscal Year (FY) 2000

budget authority provided

approximately $100 million in program

dollars. Approximately $62 million

dollars in NOFA awards were awarded

in a previous FY 2000 NOFA, which

closed May 8, 2000. That NOFA

resulted in interest credit requests

exceeding the interest credit available.

FY 2000 funds will be held in the

National Office. There are no set-asides

or demonstration purposes for the

GRRHP for FY 2000.

III. Application Process

Lenders should respond to section

538 NOFA’s only when they have

completed a preliminary underwriting

analysis and are willing to make the

proposed loan subject only to the

issuance of a guarantee by the Agency.

Unfortunately, the Agency has found

that in some instances, this has not been

the case. In an effort to reduce the

number of unacceptable NOFA

responses and judiciously commit

program dollars to projects that

demonstrate a readiness to proceed, the

Agency will strictly adhere to the

submission requirements.

In the interest of time, lenders have

the option of submitting a combined

NOFA response and application.

However, the Agency will not give

preference to a submission containing

both a NOFA response and an

application. Lenders who submit

complete applications are encouraged,

but not required, to include a checklist

and to have their applications indexed

and tabbed to facilitate the review

process.

Upon notice of selection, lenders with

the top ranked NOFA responses will be

requested to submit the required

application fee of $2,500.00 and full

application if not already submitted.

When the conditions of the conditional

commitment are met, the lender will

submit the required information with a

separate guarantee fee of 1% of the total

guarantee amount.

IV. Submission Requirements

NOFA submission requirements are

subject to change and it is important to

note that all responses must be

submitted in accordance with the terms

of this NOFA which are different from

the last published NOFA.

Incomplete submissions will not be

considered, and the lender will be

notified of the reason the response was

incomplete. The required information is

listed as follows:

A. The Project

(1) A brief description of the proposed

location of the project, including town,

county, state, and congressional district.

(2) A description of the property and

improvements, including lot size,

number of units and bids, building type,

type of construction, etc., including

preliminary drawings, if available.

(3) The proposed development

schedule.

(4) Total project development cost.

(5) The proposed rent structure and

area median income—(HUD published

area median incomes can be found

online at http://www.huduser.org).

(6) Evidence of site control by the

proposed borrower or a purchase

option.

(7) Description of any environmental

issues that may affect the project.

(8) Amount of loan to be guaranteed.

B. The Proposed Financing

(1) Proposed loan amount and the

proposed borrower’s equity.

(2) Estimated development budget

(total and cost per unit), and the

proposed sources and uses of funds.

This information should include all

proposed financing sources—the

amount, type, rates and terms of loans,

tax credits, or grant funds. Letters of

application and commitment letters

should be included, if available.

(3) Estimated loan-to-value ratio for

guaranteed loan.

(4) Proposed Agency guarantee

percentage for guaranteed loan (under

no condition can the percentage exceed

90 percent of the loan amount).

(5) Collateral—all security, in

addition to the real property, proposed

to secure the loan.

C. The Proposed Borrower

(1) The name of the borrower and the

type of ownership entity—list the

general partners if a limited partnership,

officers if a corporation or members of

an LLC.

(2) Borrower’s contact name, mailing

address, phone and fax numbers, and email address.

(3) Statement of borrower’s housing

development experience.

D. Lender Eligibility and Approval

Status

Evidence that the lender is either an

approved lender for the purposes of the

GRRHP or that the lender is eligible to

apply for approved lender status as

defined in paragraph VII(D) of this

NOFA. The application for lender

approval must be made at the same time

as the first loan application.

E. Competitive Criteria

Information that shows how the

proposal is responsive to the selection

criteria specified in the NOFA. (See

paragraph V of this NOFA).

F. Lender Certification

A commitment letter or certification

by the lender that will make a loan to

the borrower for the proposed project,

under specified terms and conditions

subject only to the issuance of a

guarantee by the Agency. The lender

certification must be on the lender’s

letterhead, and be signed by both the

lender and the applicant, and be

submitted by the lender to the Agency.

V. Competitive Criteria

In order to expedite the review of the

applications, RHS suggests using the

following sample NOFA response

checklist to ensure that you have

addressed all the submission

requirements and competitive criteria of

this NOFA.

BILLING CODE 3410–XV–U

Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / Notices 39861

39862 Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / Notices

BILLING CODE 3410–XV–C

VI. Selection Criteria

NOFA proposals will be reviewed as

received. Priorities will be assigned to

eligible proposals on the basis of the

following criteria as contained in 7 CFR

3565.5(b), and points will be assigned as

follows:

(A) Projects located in rural

communities with the smallest

population will receive priority. All

proposals will be ranked in order of

their population. The proposals will be

given a point score starting with the

project located in the area with the

lowest population receiving 20 points,

the next 19 points and so forth, until up

to 20 projects have received points.

(B) The most needy communities as

determined by the median income from

the most recently available census data.

The proposals will be given a point

score starting with the community

having the lowest median income

receiving 20 points, the next 19 points

and so forth until up to 20 proposals

have received points.

(C) Partnering and leveraging in order

to develop the maximum number of

housing units and promote partnerships

with state and local communities,

including other partners with similar

housing goals. Leveraging points will be

awarded as follows:

Loan to value ratio (percentage %) Points

More than 75 .................................. 10

70–75 .............................................. 15

Less than 70 ................................... 20

(D) Loans with interest rates less than

the maximum allowable 250 basis

points over the 30 Year Treasury Rate

will be awarded points as follows

(fractional basis points will be rounded

to the nearest whole basis point):

Interest rate Points

More than 200 basis points ............ 0

200 to 151 basis points, inclusive .. 5

150 to 100 basis points, inclusive .. 10

99 to 50 basis points, inclusive ...... 15

Less than 50 basis points .............. 20

(E) Preference will be given to

proposals having a higher percentage of

3–5 bedroom units to total units. The

proposals will be ranked in order of this

percentage with the proposal with the

highest percent receiving 20 points, the

next 19 points and so forth until up to

20 projects have received points.

(F) Proposals to be developed in a

colonia, on tribal land, in an

Empowerment Zone or Enterprise

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).

(G) Projects will be ranked by the

length of the amortization period, with

the longest receiving priority as follows:

Amortization (yrs.) Points

40 .................................................... 20

At least 35 ...................................... 15

At least 30 ...................................... 10

At least 20 ...................................... 5

Less than 20 ................................... 0

VII. Additional Information

A. Maximum Interest Rate

The maximum allowable interest rate

on a loan submitted for a guarantee is

250 basis points over the 30-year

Treasury Bond Yield as published in the

Wall Street Journal as of the business

day prior to the business day the rate is

set.

B. Surcharges for Guarantee of

Construction Advances

There is no surcharge for guarantee of

construction advances for FY 2000.

C. Program Fees for FY 2000

(1) There is an initial guarantee fee of

1% of the total guarantee amount which

will be due when the loan guarantee is

issued. For purposes of calculating this

fee, the guarantee amount is the product

of the percentage of the guarantee times

the initial principal amount of the

guaranteed loan.

(2) There is an annual renewal fee of

0.5% of the guaranteed outstanding

principal balance charged each year or

portion of the year that the guarantee is

in effect. This fee will be collected

prospectively on January 1, of the

calendar year.

(3) There is no fee for site assessment

and market analysis or preliminary

feasibility in FY 2000.

(4) There is a non-refundable

application fee of $2,500 when the

application is submitted following

proposal selection under the NOFA.

(5) There is a flat fee of $500 when a

lender requests RHS to extend the term

of a guarantee commitment.

(6) There is a flat fee of $500 when a

lender requests RHS to reopen a

guarantee commitment after the period

of the commitment lapses.

(7) There is a flat fee of $1,250 when

a lender requests RHS to approve the

transfer of property and assumption of

the loan to an eligible applicant.

D. Eligible Lenders for Section 538

Approval

The application for lender approval

must be made at the same time as the

Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / Notices 39863

first loan application. The first loan

application means: (1) The first

application for a loan guarantee for a

new loan; or (2) The first application

before ownership of any GRRHP loan is

transferred to that lender. A lender must

be approved before a loan guarantee is

issued or a guaranteed loan is acquired.

An eligible lender must be a licensed

business entity or Housing Finance

Authority (HFA) in good standing in the

state or states where it conducts

business; be approved by the Agency;

and meet at least one of the criteria

contained below. Lenders who are not

eligible may participate in the program

if they maintain a correspondent

relationship with a lender who is

eligible. An eligible lender must:

(a) Meet the qualifications of, and be

approved by, the Secretary of Housing

and Urban Development to make

multifamily housing loans that are to be

insured under the National Housing

Act;

(b) Meet the qualifications and be

approved by Fannie Mae or Freddie Mac

to make multifamily housing loans that

are to be sold to such corporations;

(c) Be a state or local HFA, or a

member of the Federal Home Loan Bank

system, with a demonstrated ability to

underwrite, originate, process, close,

service, manage, and dispose of

multifamily housing loans in a prudent

manner;

(d) Be a lender who meets the

requirements for Agency approval

contained in 7 CFR part 3565 subpart B

and has a demonstrated ability to

underwrite, originate, process, close,

service, manage, and dispose of

multifamily housing loans in a prudent

manner; or

(e) Be a lender who meets the

following requirements in addition to

the other requirements of 7 CFR part

3565 subparts B and of subpart I:

(1) Have qualified staff to perform

multifamily housing servicing and asset

management;

(2) Have facilities and systems that

support servicing and asset management

functions; and

(3) Have documented procedures for

carrying out servicing and asset

management responsibilities.

Dated: June 21, 2000.

David J. Villano,

Acting Administrator, Rural Housing Service.

[FR Doc. 00–16311 Filed 6–27–00; 8:45 am]

BILLING CODE 3410–XV–P

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

Information Collection Activity;

Comment Request

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice and request for

comments.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. Chapter 35, as amended), the

Rural Utilities Service (RUS) invites

comments on this information

collection for which RUS intends to

request approval from the Office of

Management and Budget (OMB).

DATES: Comments on this notice must be

received by August 28, 2000.

FOR FURTHER INFORMATION CONTACT: F.

Lamont Heppe, Jr., Director, Program

Development and Regulatory Analysis,

Rural Utilities Service, 1400

Independence Ave., SW., STOP 1522,

Room 4036 South Building,

Washington, DC 20250–1522.

Telephone: (202) 720–9550. FAX: (202)

720–4120.

SUPPLEMENTARY INFORMATION: The Office

of Management and Budget’s (OMB)

regulation (5 CFR 1320) implementing

provisions of the Paperwork Reduction

Act of 1995 (Pub. L. 104–13) requires

that interested members of the public

and affected agencies have an

opportunity to comment on information

collection and recordkeeping activities

(see 5 CFR 1320.8(d)). This notice

identifies an information collection that

RUS is submitting to OMB for

reinstatement.

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, including

through the use of appropriate

automated, electronic, mechanical, or

other technological collection

techniques or other forms of information

technology. Comments may be sent to:

F. Lamont Heppe, Jr., Director, Program

Development and Regulatory Analysis,

Rural Utilities Service, U.S. Department

of Agriculture, STOP 1522, 1400

Independence Ave., SW., Washington,

DC 20250–1522. FAX: (202) 720–4120.

Title: Water and Waste Disposal

Programs Guaranteed Loans.

Type of Request: New collection

approval.

Abstract: The Rural Utilities Service

is authorized by Section 306 of the

Consolidated Farm and Rural

Development Act (7 U.S.C. 1926) to

make loans to public agencies, nonprofit

corporations, and Indian tribes for the

development of water and waste

disposal facilities primarily servicing

rural residents. The guaranteed loan

program encourages lender participation

and provides specific guidance in the

processing and servicing of guaranteed

loans. The regulations governing the

Water and Waste Disposal Guaranteed

Loan program are currently codified at

7 CFR 1980, subparts A and I, and the

reporting and recordkeeping

requirements are currently cleared

under OMB Control Numbers 0572–

0119 and 0572–0120. The Agency

issued a proposed rule dated October 7,

1997, at 62 FR 52277, that proposed to

amend 7 CFR 1980, subparts A and I.

The Agency is currently working on the

final rule and when the rule is finalized

the Water and Waste Disposal

Guaranteed Loan program will be

codified at 7 CFR 1779 and covered

under a new OMB Control number,

incorporating all requirements for the

program.

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average 7.8 hours per

response.

Respondents: Business or other for

profit; not-for-profit institutions; State,

Local or Tribal Government.

Estimated Number of Respondents:

15.

Estimated Number of Responses per

Respondent: 7.3.

Estimated Total Annual Burden on

Respondents: 858 hours.

Copies of this information collection

can be obtained from Michele Brooks,

Program Development and Regulatory

Analysis, at (202) 690–1078. FAX: (202)

720–4120.

All responses to this notice will be

summarized and included in the request

for OMB approval. All comments will

also become a matter of public record.

Dated: June 20, 2000.

Christopher A. McLean,

Acting Administrator, Rural Utilities Service.

[FR Doc. 00–16273 Filed 6–27–00; 8:45 am]

BILLING CODE 3410–15–P