Federal Register / Vol. 62, No. 246 / Tuesday, December 23, 1997 / Notices 67225

DEPARTMENT OF AGRICULTURE

Rural Housing Service

Notice of Availability of Funds; MultiFamily Housing, Single Family

Housing

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

SUMMARY: The Rural Housing Service

(RHS) announces the availability of

housing funds for fiscal year 1998 (FY

1998). This action is taken to comply

with 42 U.S.C. 1490p which requires

that RHS publish in the Federal

Register notice of the availability of any

housing assistance.

EFFECTIVE DATE: December 23, 1997.

FOR FURTHER INFORMATION CONTACT:

Cynthia L. Reese-Foxworth, Senior Loan

Officer, Multi-Family Housing

Processing Division, Room 5337 (STOP

0781), or Gloria Denson, Senior Loan

Officer, Single Family Housing

Processing Division, Room 5334, (STOP

0783), U.S. Department of Agriculture,

1400 Independence Ave., SW,

Washington, D.C., 20250, telephones

(202) 720–1604, and (202) 720–1474,

respectively. (These are not toll free

numbers).

SUPPLEMENTARY INFORMATION:

Programs Affected

The following programs are subject to

the provisions of Executive Order 12372

that requires intergovernmental

consultation with State and local

officials. These programs or activities

are listed in the Catalog of Federal

Domestic Assistance under Nos.

10.405 Farm Labor Housing (LH) Loans and

Grants

10.410 Very Low to Moderate Income

Housing Loans

10.411 Rural Housing Site Loans and SelfHelp Housing Land Development Loans

10.415 Rural Rental Housing Loans

10.417 Very Low Income Housing Repair

Loans and Grants

10.420 Rural Self-Help Housing Technical

Assistance

10.427 Rural Rental Assistance Payments

10.433 Rural Housing Preservation Grants

10.442 Housing Application Packaging

Grants

Discussion of Notice

7 CFR chapter XVIII, part 1940,

subpart L contains the ‘‘Methodology

and Formulas for Allocation of Loan

and Grant Program Funds.’’ The

following guidance has been provided

to our State Offices on FY 1998

appropriations and access to funds.

Separate guidance has been provided to

our State Offices for assistance available

in our Multi- and Single-Family

Housing Programs as follows:

Multi-Family Housing

I. General

A. This provides MFH allocations for

the Rural Rental Housing Program

(RRH) to individual States for FY 1998.

Allocation computations have been

performed in accordance with 7 CFR

1940.575 and 1940.578. For FY 1998,

State Directors, under the Rural Housing

Assistance Grants (RHAG), will have the

flexibility to transfer their initial

allocations of budget authority between

the Single Family Housing (SFH)

section 504 Rural Housing Grants, and

section 533 Housing Preservation Grant

(HPG) programs.

B. MFH loan levels for FY 1998 are as

follows:

MFH Loan Programs Credit Sales ...................................................................................................................................................... $4,000,000

Section 514 Farm Labor Housing (LH) Loans ................................................................................................................................... 15,000,000

Section 515 Rural Rental Housing (RRH):

New Construction & Equity Loans ............................................................................................................................................. 105,000,000

Section 515 Rural Rental Housing (RRH):

Rehabilitation/Repair Loans ....................................................................................................................................................... 45,000,000

Section 516 LH Grants (RHAG) .................................................................................................................................................. 10,000,000

Section 521 Rental Assistance (RA):

RRH New Construction ............................................................................................................................................................... 27,167,208

Labor Housing .............................................................................................................................................................................. 4,511,160

Section 525 or 509 Housing Application:

Packaging Grants (RHAG) ........................................................................................................................................................... 1,000,000

Section 533 Housing Preservation:

Grants (HPG) (RHAG) .................................................................................................................................................................. 10,820,000

Section 538 Guaranteed Rural Rental: (1)

Housing Program * ....................................................................................................................................................................... ........................

*The program has been authorized for FY 1998. The Agency is currently working toward the completion of the regulations and establishing the program level for this fiscal year. It is anticipated that a Notice of Funding Availability (NOFA) will be issued at a date to be announced later. 1To be determined.

II. Funds not Allocated to States

A. Credit Sales Authority. For FY

1998, $4,000,000 will be set aside for

credit sales to program and nonprogram

buyers. Credit sale funding will not be

allocated by State. When this loan

authority is expended, States will

resume the use of the appropriate loan

funds to finance sales to program

eligible buyers.

B. Section 514 Farm LH Loans.

1. These loans are funded in

accordance with 7 CFR 1940.579(a).

FY 1998 appropriation ........ $15,000,000

Available for off-farm loans 8,000,000

Available for on-farm loans 1,000,000

Available for Rehab/Repair 3,000,000

National Office reserve ........ 3,000,000

2. Section 516 LH Grants. The grants

are funded in accordance with 7 CFR

1940.579(b). Unobligated prior year

balances and cancellations will be

added to the amount shown.

FY 1998 Appropriation ....... $10,000,000

Available for LH Grants ...... 7,000,000

National Office Reserve ....... 3,000,000

III. Section 515 RRH and Section 521

RA Funds (Allocated to the States)

State allocations have been developed

with the methodology and formulas

stated in 7 CFR part 1940, subpart L.

A. Section 515 RRH Loan Funds (for

New Construction Loans):

Amount Available for Allocation. See

the end of this Notice for State

allocations.

Total available ..................... $105,000,000

Less set-aside for nonprofits 9,450,000

Less set-aside for underserved counties and

colonias ............................. 5,250,000

Less general reserve ............. 11,550,000

Less designated reserve ....... 7,500,000

Total Available for Allocation .................................... 71,250,000

1. National Office Reserves. These

reserves are broken down as follows:
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General reserve .................... $11,550,000

Designated reserves:

State RA ............................ 2,500,000

Equity ................................ 5,000,000

Total National Office

Reserve ...................... 19,050,000

2. National Office Set-asides. The

following legislatively mandated setasides of funds are part of the National

Office Set-aside:

Nonprofit set-aside .............. $9,450,000

Underserved counties and

colonias ............................. 5,250,000

B. Rental Assistance (RA). A total of

$31,678,368 will be available for RRH

new construction RA, of which

$4,511,160 is available for LH new

construction RA. This amount equates

to an estimated 2,528 units for the new

construction RRH loan program.

Estimated total new construction:

RA units available ............ 2,528

Less Labor Housing (LH) 360

Subtotal Available for

allocation to States ... 2,168

Less Set-aside ................... 275

Less National Office Reserve .............................. 200

Total state allocated

new construction RA

units ........................... 1,693

IV. State Allocations for Rehabilitation/

Repair Loans

A. Repairs and Rehabilitation. States

with repair and or rehabilitation loans

will have a separate Section 515

allocation for repair and rehabilitation

loans. These funds may not be used for

the purpose of new construction. Tenant

health and safety continues to be a

priority. Allocated repair and

rehabilitation funds must be FIRST

targeted to RRH facilities that have

physical conditions that effect the

health and safety of tenants and then

made available to facilities that have

deferred maintenance. See the end of

this Notice for State repairs and

rehabilitation allocations.

B. Section 515 RRH Loan Funds (for

Repairs and Rehabilitation):

Amount Available for Allocation:

Rehab and repair appropriation .......................... $45,000,000

General reserve ................. 5,000,000

Total Available for Distribution ..................... 40,000,000

V. Section 533 Housing Preservation

Grants (HPG)

Amount Available for Allocation. See

end of this Notice for HPG State

allocations.

Total available ..................... $10,820,000

Less reserve .......................... 541,000

Less Designated Set-Aside

EZ/EC ................................ 600,000

Total Available for Distribution ..................... 9,679,000

VI. Useful dates to remember

Mar. 15, 1998: Last day to submit

documentation to participate in State

RA reserve.

February 23, 1998: Last day to submit

applications to the National Office for

the Nonprofit and Underserved/

Colonias Set-Asides.

May 18, 1998: Estimated last day for

applicants to file HPG preapplications.

Estimated date for pooling of Section

515 Rehab/repair loans funds and RA.

August 14, 1998: Estimated date for

new construction RRH and RA to be

pooled.

Single Family Housing (SFH)

I. General

A. This provides SFH allocations for

programs available to individual States

for Fiscal Year (FY) 1998. Allocation

computations have been made in

accordance with 7 CFR 1940.563

through 1940.568 of this instruction. For

FY 1998, State Directors will have the

flexibility to transfer up to 25 percent of

their initial allocations of budget

authority between the section 504 Rural

Housing Grant program and the section

533 Housing Preservation Grant

program.

B. The SFH levels authorized

(including carry-over balances) for FY

1998 are as follows:

Section 502 Guaranteed Rural Housing (RH) Loans:

Nonsubsidized Guarantees .................................................................................................................................................... $3,000,000,000

Refinancing Guarantees** ..................................................................................................................................................... 100,000,000

Section 502 Direct RH Loans:

Very Low-Income Subsidized Loans .................................................................................................................................... 400,000,000

Low-Income Subsidized Loans ............................................................................................................................................. 600,000,000

Nonsubsidized Loans ............................................................................................................................................................ 0

Credit Sales (Program and Non Program) ............................................................................................................................ 20,996,420

Section 504 Housing Repair Loans ...................................................................................................................................... 29,977,000

Section 504 Grants ................................................................................................................................................................ 24,900,000

Section 509 Compensation for Construction Defects* ........................................................................................................ 495,000

Section 523 Mutual and Self Help Housing ........................................................................................................................ 26,000,000

Section 523 Self-Help Site Loans ......................................................................................................................................... 587,000

Section 525 Supervisory and Technical Assistance Grants* .............................................................................................. 231,000

Section 524 RH Site Loans ................................................................................................................................................... 600,000

Section 306C WWD Grants—(Carryover) ............................................................................................................................. 1,508,313

Sections 525/509 Housing Application:

Packaging Grants (HAPG)—(Carryover)* ............................................................................................................................. 808,000

Natural Disaster Funds .......................................................................................................................................................... (1)

* Unobligated or canceled funds from prior FY have been added to the amount shown.

** $100 million for loans to refinance section 502 Direct loans with guaranteed funds. These funds will be held until July 1, 1998, pending passage of a statutory provision to permit using guaranteed funds for refinancing 502 direct loans. If the statutory provision is not

passed by July 1, 1998, these funds will be used for nonsubsidized guarantees. This $100 million is included in the $3 billion for nonsubsidized guarantees. 1To be determined.

C. SFH Funding not allocated to

States:

1. Section 502 direct nonsubsidized

funds (loan making and servicing).

There were no FY 1998 funds

designated for loans for nonsubsidized

loan making or servicing. Subsidized

funds will continue to be used for

qualified very low- and low-income

applicants when the payment subsidy
Federal Register / Vol. 62, No. 246 / Tuesday, December 23, 1997 / Notices 67227

formula shows there is no need for the

subsidy.

2. Credit sale authority. For FY 1998,

$20,996,420 is available for Real Estate

Owned (REO) credit sales to SFH

program and nonprogram buyers. Credit

sale authority will not be allocated by

State.

3. Section 509 Compensation for

Construction Defects. The approval

official must determine that the

construction is defective, in accordance

with 7 CFR 1924.265. All claims for

compensation for construction defects

must be submitted to the National Office

for authorization of funds prior to

approval.

4. Section 523 Mutual and Self-Help

Site Loans. The State Director must

request funding authority prior to

obligating loan funds for the project.

5. Section 523 Mutual and Self-Help

Technical Assistance Grants. A

technical review and analysis must be

completed by the Technical and

Management Assistance (T&MA)

Contractor on all predevelopment, new,

and existing (refunding) grant

applications. This analysis is a

prerequisite for approval for all grant

requests with the exception of those

grants that were funded at 75 percent of

the total grant authorized for the grantee

in Fiscal Year (FY) 1997.

6. Section 524 RH Site Loans. The

State Director must request funding

authority prior to obligating loan funds

for the project.

7. Sections 525/509 Housing

Application Packaging Grants (HAPG).

To be determined.

8. Deferred Mortgage Payment

Demonstration. There is no funding

provided for deferred mortgage

authority or loans for deferred mortgage

assumptions.

II. State Allocations

A. Section 502 nonsubsidized

guaranteed RH loans.

Amount Available for

Allocation:

Total Available .............. $3,000,000,000

Less National Office Reserve ............................ 450,000,000

Less Base Allocation ..... 0

Less Refinancing Section

502 Direct ................... 100,000,000

Basic Formula—Administrative .........

Allocation ....................... 2,450,000,000

B. Section 502 Direct RH Loans.

Amount Available for

Allocation:

Total Available .............. $1,000,000,000

Less required set aside

for Underserved counties/colonias ............... $50,000,000

Less General Reserve ..... 38,500,000

Administrator’s Reserve 15,000,000

Hardships ....................... 2,000,000

Homelessness ................. 1,500,000

Homeownership Partnerships ............................ 15,000,000

Rural Housing Demonstration Program ..... 5,000,000

Less Designated Reserves .......................... 165,000,000

Self-Help ........................ 150,000,000

Targeted .......................... 15,000,000

Basic Formula Administrative Allocation ....... 747,000,000

C. Section 504 Housing Loans/Grants

Section 504 Grant funds are included

in the Rural Housing Assistance Grant

Program (RHAG) in the FY 1998

Appropriation. Funds included in

RHAG may be transferred in accordance

with Public Law 105–86.

Amount available for allocation:

Section 504 Loans:

Total Available ............................................................................................................................................................................ $29,977,000

Less 5% for Underserved Counties and Colonias ..................................................................................................................... 1,500,000

Less General Reserve ................................................................................................................................................................... 2,000,000

Less Designated Targeted Reserve .............................................................................................................................................. 2,000,000

Basic Formula—Administrative Allocation ........................................................................................................................ 24,477,000

Section 504 Grants:

Total Available ............................................................................................................................................................................ 24,900,000

Less 5% for 100 Underserved Counties or Colonias ................................................................................................................. 1,245,000

Less General Reserve ................................................................................................................................................................... 1,494,000

Less Targeted Reserve ................................................................................................................................................................. 1,494,000

Basic Formula-Administrative Allocation .......................................................................................................................... 20,667,000

Dated: December 16, 1997.

Jan E. Shadburn,

Administrator, Rural Housing Service.

BILLING CODE 3410–XV–U
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[FR Doc. 97–33397 Filed 12–22–97; 8:45 am]

BILLING CODE 3410–XV–C