[Federal Register Volume 62, Number 247 (Wednesday, December 24, 1997)]
[Rules and Regulations]
[Pages 67258-67265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33588]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency

7 CFR Part 2003


Functional Organization of the Rural Development Mission Area

AGENCIES: Rural Housing Service; Rural Business-Cooperative Service; 
Rural Utilities Service; Farm Service Agency; USDA.

ACTION: Final rule.

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SUMMARY: The issuing agencies amend their regulations to reflect the 
reorganization of the Department of Agriculture. The intended effect of 
this action is to provide efficient utilization of Department personnel 
resources. This publication provides the function statements for 
organizational units within the Rural Development mission area, the 
Rural Housing Service, Rural Business-Cooperative Service, and the 
Rural Utilities Service.


[[Page 67259]]


EFFECTIVE DATE: December 24, 1997.

FOR FURTHER INFORMATION CONTACT: Timothy J. Ryan, Assistant 
Administrator for Human Resources, Rural Development, STOP 0730, 1400 
Independence Avenue, SW., Washington, DC 20250-0730; Telephone: (202) 
690-9860.

SUPPLEMENTARY INFORMATION:

Classification

    This action is not subject to the provisions of Executive Order 
12866 since it involves only internal Agency management and has no 
impact on borrowers or other members of the public. This action is not 
published for proposed rulemaking because it involves only internal 
Agency management and publication for comment is unnecessary and 
contrary to the public interest.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub. 
L. 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments, and the private sector. Under section 202 of the UMRA, the 
agencies generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures to State, local, or tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any one year. When such a statement is needed for a 
rule, section 205 of the UMRA generally requires the agencies to 
identify and consider a reasonable number of regulatory alternatives 
and adopt the least burdensome alternative that achieves the objectives 
of the rule.
    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local, and tribal 
governments, or the private sector. Thus, the rule is not subject to 
the requirements of sections 202 and 205 of the UMRA.

Intergovernmental Consultation

    These programs and activities are not subject to the provisions of 
Executive Order 12372, which requires intergovernmental consultation 
with State and local officials.

Environmental Impact Statement

    This final action has been reviewed in accordance with 7 CFR part 
1940, subpart G, ``Environmental Program.'' Rural Development has 
determined that this final action does not constitute a major Federal 
action significantly affecting the quality of human environment, and, 
in accordance with the National Environmental Policy Act of 1969, Pub. 
L. 91-190, an Environmental Impact Statement is not required.

Background

    The Farmers Home Administration (FmHA) was abolished by the 
Department of Agriculture Reorganization Act of 1994 (1994 Act). The 
Office of the Assistant Administrator, Farmer Programs, and all its 
subordinate organizational units have been transferred to the Farm 
Service Agency (FSA). The remainder of the FmHA organizational units 
have been transferred in accordance with the 1994 Act to one of the 
following newly created agencies which make up the Rural Development 
mission area (Rural Development): the Rural Housing Service, the Rural 
Business-Cooperative Service, and the Rural Utilities Service. The 
Rural Utilities Service also includes the organizational units of the 
former Rural Electrification Administration.
    This rule adopts the organizational structure put into place 
following enactment of the 1994 Act on October 13, 1994. The rule only 
covers the Rural Development agencies. The functions and 
responsibilities delegated by the Under Secretary, Rural Development, 
to the Rural Housing Service, Rural Business-Cooperative Service, and 
Rural Utilities Service, are published in 7 CFR part 2, subpart G, 
Secs. 2.47 through 2.49.

List of Subjects in 7 CFR Part 2003

    Organizations and functions (government agencies).

    Therefore, chapter XVIII, title 7, Code of Federal Regulations is 
amended as follows:

PART 2003--ORGANIZATION

    1. The authority citation for part 2003 is revised to read as 
follows:

    Authority: 5 U.S.C. 301, 7 U.S.C. 901 et seq., 7 U.S.C. 1989, 7 
U.S.C. 6941 et seq, 42 U.S.C. 1480, et seq.

    2. Subpart A of part 2003 is revised to read as follows:

Subpart A--Functional Organization of the Rural Development Mission 
Area

Sec.

2003.1  Definitions.
2003.2  General.
2003.3  [Reserved]
2003.4  [Reserved]
2003.5  Headquarters organization.
2003.6  Office of the Under Secretary.
2003.7-2003.9  [Reserved]
2003.10  Rural Development State Offices.
2003.11-2003.13  [Reserved]
2003.14  Field Offices.
2003.15-2003.16  [Reserved]
2003.17  Availability of information.
2003.18  Functional organization of RHS.
2003.19-2003.21  [Reserved]
2003.22  Functional organization of RUS.
2003.23-2003.25  [Reserved]
2003.26  Functional organization of the RBS.
2003.27-2003.50  [Reserved]


Sec. 2003.1  Definitions.

    EEO--the Equal Employment Opportunity Act of 1972, 42 U.S.C. 
Sec. 2000e et seq.
    O&M--Operations and Management.
    P&P--Policy and Planning.
    RBS--Rural Business-Cooperative Development Service, USDA, or any 
successor agency.
    RHS--Rural Housing Service, USDA, or any successor agency.
    RTB--Rural Telephone Bank authorized by 7 U.S.C. 944.
    Rural Development--Rural Development mission area of USDA.
    RUS--Rural Utilities Service, USDA, or any successor agency.
    Secretary--the Secretary of USDA.
    USDA--the United States Department of Agriculture.


Sec. 2003.2  General.

    The Rural Development mission area of the Department of Agriculture 
was established as a result of the Department of Agriculture 
Reorganization Act of 1994, Title II of Pub.L. 103-354. Rural 
Development's basic organization consists of Headquarters in 
Washington, D.C. and 47 State Offices. Headquarters maintains overall 
planning, coordination, and control of Rural Development agency 
programs. Administrators head RHS, RBS, and RUS under the direction of 
the Under Secretary for Rural Development. State Directors head the 
State Offices and are directly responsible to the Under Secretary for 
the execution of all Rural Development agency programs within the 
boundaries of their states.


Sec. 2003.3-2003.4  [Reserved]


Sec. 2003.5  Headquarters organization.

    (a) The Rural Development Headquarters is comprised of:
    (1) The Office of the Under Secretary;
    (2) Two Deputy Under Secretaries; and,
    3) Three Administrators and their staffs.
    (b) The Rural Development Headquarters is located at 1400 
Independence Avenue, SW., Washington, DC. 20250-0700


Sec. 2003.6  Office of the Under Secretary.

    In accordance with 7 CFR Sec. 2.17 the Secretary has delegated to 
the Under Secretary, Rural Development, authority

[[Page 67260]]

to manage and administer programs and support functions of the Rural 
Development mission area.
    (a) Office of the Deputy Under Secretary for P&P. This office is 
headed by the Deputy Under Secretary for P&P. The Under Secretary, 
Rural Development, has delegated to the Deputy Under Secretary for P&P, 
responsibility for formulation and development of short-and long-range 
rural development policies of the Department in accordance with 7 CFR 
Sec. 2.45. The Deputy Under Secretary for P&P reports directly to the 
Under Secretary, Rural Development, and provides guidance and 
supervision for research, policy analysis and development, strategic 
planning, partnerships and special initiatives. For budget and 
accounting purposes, all of the staff offices under the Deputy Under 
Secretary for P&P are housed in RBS.
    (1) The Budget Analysis Division assesses potential impacts of 
alternative policies on the mission area's programs and operations and 
develops recommendations for change. The units are headed by the Chief 
Budget Officer, who individually serves as the top policy advisor to 
the Under Secretary and Deputy Under Secretary on all matters relating 
to mission area budget policy.
    (2) The Research, Analysis and Information Division analyzes 
information on rural conditions and the strategies and techniques for 
promoting rural development. The division performs, or arranges to have 
conducted, short-term and major research studies needed to formulate 
policy.
    (3) The Reinvention and Capacity Building Division coordinates the 
mission area's strategic planning initiatives, both at the National 
level and in the State Offices. The division assists the Rural 
Development agencies in their implementation of the Government 
Performance and Results Act (GPRA) and special initiatives of the 
Administration, USDA, and the Office of the Under Secretary.
    (4) The Rural Initiatives and Partnership Division manages the 
mission area's involvement and coordination with other Federal and 
state departments and agencies to assess rural issues and develop model 
partnerships and initiatives to achieve shared rural development goals. 
The division is responsible for managing the National Rural Development 
Partnership and providing support and oversight of 37 State Rural 
Development Councils.
    (b) Office of the Deputy Under Secretary for O&M. In accordance 
with 7 CFR 2.45, the Under Secretary, Rural Development, has delegated 
to the Deputy Under Secretary for O&M responsibility for providing 
leadership in planning, developing, and administering overall 
administrative management program policies and operational activities 
of the Rural Development mission area. The Deputy Under Secretary for 
O&M reports directly to the Under Secretary, Rural Development.
    (1) Office of the Deputy Administrator for O&M. Headed by the 
Deputy Administrator for O&M, this office reports directly to the 
Deputy Under Secretary for O&M, and is responsible for directing and 
coordinating the consolidated administrative and financial management 
functions for Rural Development. This office provides overall guidance 
and supervision for budget and financial management, human resources 
management and personnel services, administrative and procurement 
services, information resources management and automated data systems. 
For budget and accounting purposes, all of the staff offices under the 
Deputy Administrator for O&M are housed in RHS.
    (i) Office of the Controller. Headed by the Chief Financial 
Officer, this office supports the Deputy Administrator for O&M in 
executing Rural Development requirements related to compliance with the 
Chief Financial Officers Act of 1990 and provides leadership, 
coordination, and oversight of all financial management matters and 
financial execution of the budget for the Rural Development agencies. 
This office also has full responsibility for Rural Development 
agencies' accounting, financial, reporting, and internal controls. The 
office provides direct oversight to the Headquarters Budget Division, 
Financial Management Division, and the Office of the Assistant 
Controller, located in St. Louis, Missouri.
    (ii) Office of Assistant Administrator for Procurement and 
Administrative Services. Headed by the Assistant Administrator for 
Procurement and Administrative Services, this office is responsible to 
the Deputy Administrator for O&M for overseeing the Procurement 
Management Division, the Property and Supply Management Division, and 
the Support Services Division:
    (A) The Procurement Management Division is responsible for 
developing, implementing, and interpreting procurement and contracting 
policies for the Rural Development mission area. Major functions 
include planning outreach efforts and goals for small and disadvantaged 
businesses, providing staff assistance reviews in State and Local 
Offices, administering the Contracting Officer Professionalism Warrant 
program for Rural Development agencies, and coordinating the 
development of Rural Development's acquisition plans.
    (B) The Property and Supply Management Division is responsible for 
developing office space acquisition and utilization policies, providing 
training to field office leasing officers, administering the Leasing 
Officer Warrant program, assuring accessibility compliance in Rural 
Development's work sites, administering Rural Development's Physical 
Security program, and establishing and providing oversight to the 
worksite Energy Conservation program. This office operates a nationwide 
supply warehousing and distribution program, and oversees a nationwide 
Personal Property Management and Utilization Program, manages the U.S. 
Department of Agriculture (USDA) Excess Personal Property Program for 
field level activities, and provides direct support services to Rural 
Development's St. Louis facilities.
    (C) The Support Services Division has responsibility for designing, 
developing, administering, and controlling Rural Development's 
directives management and issuance system, coordinating Rural 
Development's Regulatory Agenda and Regulatory Program submissions to 
USDA and OMB, serving as Federal Register liaison, and analyzing and 
coordinating regulatory work plans for the Under Secretary. This office 
submits Paperwork Reduction Act public burden clearances to OMB, 
administers all printing programs, manages Rural Development travel 
policies and programs, and manages Freedom of Information Act, Privacy 
Act and Tort Claims programs.
    (iii) Office of Information Resources Management (IRM). Headed by 
the Chief Information Officer, this office is responsible to the Deputy 
Administrator for O&M for developing Rural Development's IRM policies, 
regulations, standards and guidelines. This office provides overall 
leadership and direction to activities assigned to the following four 
major divisions:
    (A) The Customer Services Division is responsible for direct 
customer and technical support (hardware and software).
    (B) The Management Services Division coordinates all IRM 
acquisition, budget, and policy and planning activities in support of 
Rural Development automation.
    (C) The Information Technology Division provides support technical

[[Page 67261]]

services in the areas of data administration, system integrity 
management, research and development, and telecommunications.
    (D) The Systems Services Division is responsible for planning, 
directing, and controlling activities related to Rural Development's 
Automated Information Systems.
    (iv) Office of the Assistant Administrator for Human Resources. 
Headed by the Assistant Administrator for Human Resources, this office 
is responsible to the Deputy Administrator for O&M for the overall 
development, implementation, and management, of personnel and human 
resources support services for Rural Development. The office provides 
direction to the Headquarters Personnel Services, Human Resources 
Training and Mission Area Personnel Services Division, and Labor 
Relations Staff offices. The office is also responsible for the 
establishment of recruitment, retention, and development policies and 
programs supporting workforce diversity and affirmative action.
    (2) Office of Civil Rights Staff. Headed by a staff director, this 
staff has primary responsibility for providing leadership and 
administration of the Civil Rights Program for the Rural Development 
mission area. The staff conducts on-site reviews of borrowers and 
beneficiaries of Federal financial assistance to ensure compliance with 
Titles VI and VII of the Civil Rights Act of 1964, as amended, Title 
VIII of the Civil Rights Act of 1968, as amended, Section 504 of the 
Rehabilitation Act, the Americans with Disabilities Act, and prepares 
compliance reports. The staff conducts and evaluates Title VII 
compliance visits to insure that EEO programs are adequately 
implemented. In addition, the office develops, monitors, and evaluates 
Affirmative Employment programs for minorities, women and persons with 
disabilities, and coordinates and conducts community outreach 
activities at historically black colleges and universities. It also has 
oversight of special emphasis programs such as the Federal Women's 
Program, Hispanic Emphasis Program, and Black Emphasis Program. The 
staff director reports directly to the Deputy Under Secretary for O&M.
    (3) Office of Communications. Headed by a director who reports 
directly to the Deputy Under Secretary for O&M, this office has primary 
responsibility for tracking legislation and development and institution 
of policies to provide public communication and information services 
related to the Rural Development. The office maintains a constituent 
data base and conducts minority outreach efforts and administers a 
public information and media center responsible for media inquiries, 
news releases, program announcements, media advisories, and information 
retrieval. This office also serves as a liaison with Office of 
Congressional Relations (OCR), Office of the General Counsel (OGC), and 
other Departmental units involved in Congressional relations and public 
information. This office drafts testimony, prepares witnesses, and 
provides staff for hearings and markups. In addition, the office briefs 
Congressional members and staff on the Rural Development matters, 
coordinates Rural Development's legislative activities with other USDA 
agencies and OMB and develops and implements legislative strategy. The 
staff also coordinates development and production of brochures, press 
releases, and other public information materials.


Secs. 2003.7--2003.9  [Reserved]


Sec. 2003.10  Rural Development State Offices.

    (a) Headed by State Directors, State Offices report directly to the 
Under Secretary, Rural Development, and are responsible to the three 
Rural Development agency Administrators for carrying out agency program 
operations at the State level, ensuring adherence to program plans 
approved for the State by the Under Secretary, and rendering staff 
advisory and manpower support to Area and Local offices. The Rural 
Development State Directors, for budget and accounting purposes, are 
housed in the RHS agency.
    (b) Program Directors within the State Office provide oversight and 
leadership on major program functions. Major program functions include: 
Single Family and Multi-Family Housing loans and grants, Community 
Facility, Water and Waste Disposal, Business and Cooperative, and the 
Empowerment Zones and Enterprise Communities (EZ/EC) programs.
    (c) The USDA Rural Development State Office locations are as 
follows:

------------------------------------------------------------------------
                   State                              Location          
------------------------------------------------------------------------
Alabama...................................  Montgomery, AL              
Alaska....................................  Palmer, AK                  
Arizona...................................  Phoenix, AZ                 
Arkansas..................................  Little Rock, AR             
California................................  Woodland, CA                
Colorado..................................  Lakewood, CO                
Delaware..................................  Camden, DE                  
Florida...................................  Gainesville, FL             
Georgia...................................  Athens, GA                  
Hawaii....................................  Hilo, HI                    
Idaho.....................................  Boise, ID                   
Illinois..................................  Champaign, IL               
Indiana...................................  Indianapolis, IN            
Iowa......................................  Des Moines, IA              
Kansas....................................  Topeka, KS                  
Kentucky..................................  Lexington, KY               
Louisiana.................................  Alexandria, LA              
Maine.....................................  Bangor, ME                  
Massachusetts.............................  Amherst, MA                 
Michigan..................................  East Lansing, MI            
Minnesota.................................  St. Paul, MN                
Mississippi...............................  Jackson, MS                 
Missouri..................................  Columbia, MO                
Montana...................................  Bozeman, MT                 
Nebraska..................................  Lincoln, NE                 
Nevada....................................  Carson City, NV             
New Jersey................................  Mt. Holly, NJ               
New Mexico................................  Albuquerque, NM             
New York..................................  Syracuse, NY                
North Carolina............................  Raleigh, NC                 
North Dakota..............................  Bismarck, ND                
Ohio......................................  Columbus, OH                
Oklahoma..................................  Stillwater, OK              
Oregon....................................  Portland, OR                
Pennsylvania..............................  Harrisburg, PA              
Puerto Rico...............................  Hato Rey, PR                
South Carolina............................  Columbia, SC                
South Dakota..............................  Huron, SD                   
Tennessee.................................  Nashville, TN               
Texas.....................................  Austin, TX                  
Vermont...................................  Montpelier, VT              
Virginia..................................  Richmond, VA                
Washington................................  Olympia, WA                 
West Virginia.............................  Charleston, WV              
Wisconsin.................................  Stevens Point, WI           
Wyoming...................................  Casper, WY                  
------------------------------------------------------------------------

Secs. 2003.11-2003.13  [Reserved]


Sec. 2003.14  Field Offices.

    Rural Development field offices report to their respective State 
Director and State Office Program Directors. State Directors may 
organizationally structure their offices based on the program workloads 
within their respective State. Field offices generally are patterned in 
a three or two tier program delivery structure. In a three tier system, 
Local offices report to an Area office, that reports to the State 
Office. In a two tier system, a ``Local'' or ``Area'' office reports to 
the State Office. Locations and telephone numbers of Area and Local 
Offices may be obtained from the appropriate Rural Development State 
Office.


Secs. 2003.15--2003.16  [Reserved]


Sec. 2003.17  Availability of information.

    Information concerning Rural Development programs and agencies may 
be obtained from the Office of Communications, Rural Development, U. S. 
Department of Agriculture, STOP 0705, 1400 Independence Avenue SW., 
Washington, DC 20250-0705.


Sec. 2003.18  Functional organization of RHS.

    (a) General. The Secretary established RHS pursuant to Sec. 233 of 
the Department of Agriculture

[[Page 67262]]

Reorganization Act of 1994 (7 U.S.C. 6943).
    (b) Office of the Administrator. According to 7 CFR 2.49, the 
Administrator has responsibility for implementing programs aimed at 
delivering loans and grant assistance to rural Americans and their 
communities in obtaining adequate and affordable housing and community 
facilities, in accordance with Title V of the Housing Act of 1949 (42 
U.S.C. 1471 et seq.) and the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1921 et seq.).
    (1) Legislative Affairs Staff. The duties and responsibilities of 
this staff have now been aligned under the Office of Communication, 
headed by a director who reports directly to the Under Secretary for 
O&M. The Office of Communication is responsible for providing and 
carrying out legislative, public communication, and information 
services for the Rural Development mission area.
    (2) Office of Program Support Staff. The Program Support Staff is 
headed by a staff director who is responsible to the Administrator for 
monitoring managerial and technical effectiveness of RHS programs. The 
staff coordinates review and analysis of legislation, Executive Orders, 
OMB circulars, and Department regulations for their impact on Agency 
programs. The staff develops, implements, and reports on architectural 
and environmental policies, in cooperation with the Department. Staff 
responsibilities also include managing RHS's Hazardous Waste Management 
Fund, coordinating the Debarment and Suspension process for RHS, 
tracking the use of Program Loan Cost Expense funds, and maintaining 
the RHS Internet ``Home Page.''
    (3) Office of Deputy Administrator, Single Family Housing. Headed 
by the Deputy Administrator, Single Family Housing, this office is 
responsible to the Administrator for the development and implementation 
of RHS's Single Family Housing programs, which extend supervised 
housing credit to rural people of limited resources, for adequate, 
modest, decent, safe, and sanitary homes. The office is responsible for 
administering and managing sections 502 and 504 Rural Housing direct 
and guaranteed loan and grant programs, Rural Housing and Self-Help 
Site loans, the Self-Help Technical Assistance grant program, Housing 
Application Packaging and Technical and Supervisory Assistance grants, 
and Home Improvement and Repaid loans and grants. The office directs 
the following three divisions: Single Family Housing Processing 
Division, Single Family Housing Servicing and Property Management 
Division, and Single Family Housing Centralized Servicing Center in St. 
Louis, Mo.
    (i) Office of Single Family Housing Processing Division. Headed by 
a division director, this division is responsible for development and 
nationwide implementation of policies on processing Single Family 
Housing direct and guaranteed program loans. In addition, the division 
provides direction on the following: the Rural Housing Targeted Area 
Set-Aside program, debarments, payment assistance, title clearance and 
loan closing, site/subdivision development, Deferred Mortgage Payment 
Program; construction defects, credit reports, appraisals, Manufactured 
Housing, coordinated assessment reviews, Home Buyer's Counseling/
Education Program, and allocation of loan and grant program funds.
    (ii) Office of Single Family Housing Servicing and Property 
Management Division. Headed by a division director, this division is 
responsible for the development and implementation of nationwide 
policies for servicing RHS's multi-billion dollar portfolio of Single 
Family Housing loans, and managing and selling Single Family Housing 
inventory properties. The division also conducts state program 
evaluations, identifies program weaknesses, makes recommendations for 
improvements, and identifies corrective actions.
    (iii) Office of Single Family Housing Centralized Servicing Center 
(CSC)--St. Louis, Missouri. Headed by a director, CSC is responsible 
for centrally servicing RHS's multi-billion dollar portfolio of Single 
Family Housing loans. CSC provides interest credit or payment 
assistance renewals, performs escrow activities for real estate taxes 
and property hazard insurance, oversees collection of loan payments, 
and grants interest credit, payment assistance, and moratoria.
    (4) Office of the Deputy Administrator, Multi-Family Housing 
Division. Headed by the Deputy Administrator, Multi-Family Housing, 
this office is responsible for the development and nationwide 
implementation of RHS's Multi-Family Housing programs, which extend 
supervised housing credit to rural residents an opportunity to have 
decent, safe, and sanitary rental housing. The following programs are 
administered and managed by this office: Section 515 Rural Rental 
Housing, Rural Cooperative and Congregate Housing Programs, Section 521 
Rental Assistance, Farm Labor Housing loan and grant programs, Housing 
Preservation Grants, rural housing vouchers, and Housing Application 
Packaging Grants. This office directs the following two divisions:
    (i) Multi-Family Housing Processing Division. Headed by a division 
director, this division is responsible for the development and 
nationwide implementation of policies on processing Multi-Family 
Housing program loans. The division manages the following program 
areas: elderly and family rental housing, Farm Labor Housing loans and 
grants, outreach contacts, congregate facilities, Housing Preservation 
Grants, cooperative housing, rural housing vouchers, appraisals, 
Congregate Housing Services Grants, Rental Assistance, Housing 
Application Packaging Grants, targeted area and nonprofit set asides, 
Multi-Family Housing suspensions and debarments, title clearance and 
loan closing, allocation and monitoring of loan and grant funds, 
adverse decisions and appeals, commercial credit reports, individual 
credit reports, and, site development.
    (ii) Multi-Family Housing Portfolio Management Division. Headed by 
a division director, this division is responsible for the development 
and institution of policies on the management and servicing of the 
nationwide Multi-Family Housing programs. The Division implements 
current and long range plans for servicing Rural Rental Housing loans, 
Labor Housing loans and grants, and Rental Assistance or similar tenant 
subsidies.
    (5) Office of the Deputy Administrator, Community Programs. Headed 
by the Deputy Administrator, Community Programs, this office is 
responsible for overseeing the administration and management of 
Community Facilities loans and grants to hospitals and nursing homes, 
police and fire stations, libraries, schools, adult and child care 
centers, etc. The office monitors and evaluates the administration of 
loan and grant programs on a nationwide basis and provides guidance and 
direction for community programs through two divisions, Community 
Programs Loan Processing Division and Servicing and Special Authorities 
Division.
    (i) Community Programs Loan Processing Division. Headed by a 
director, this division is responsible for the overall administration, 
policy development, fund distribution, and processing of Community 
Facilities loans and other loan and grant programs assigned to the 
Division.
    (ii) Servicing and Special Authorities Division. Headed by a 
division director,

[[Page 67263]]

this division is responsible for the overall administration, policy 
development, and servicing of the Community Facilities loan and grant 
programs. The division conducts program evaluations, identifies program 
weaknesses, makes recommendations for improvements, and identifies 
corrective actions. The division also administers and services 
Nonprofit National Corporation loans and grants.


Secs. 2003.19--2003.21  [Reserved]


Sec. 2003.22  Functional organization of RUS.

    (a) General. The Secretary established RUS pursuant to Sec. 232 of 
the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6942).
    (b) Office of the Administrator. According to 7 CFR 2.47, the 
Administrator has responsibility for managing and administering the 
programs and support functions of RUS to provide financial and 
technical support for rural infrastructure to include electrification, 
clean drinking water, telecommunications, and water disposal systems, 
pursuant to the Consolidated Farm and Rural Development Act, as amended 
(7 U.S.C. 1921 et seq.), and the Rural Electrification Act of 1936, as 
amended (7 U.S.C. 901 et seq.). The office develops and implements 
strategic plans concerning the Rural Electrification Act of 1936, as 
amended. The Administrator serves as Governor of the Rural Telephone 
Bank (RTB) with a 13-member board of directors, and exercises and 
performs all functions, powers, and duties of the RTB in accordance 
with 7 U.S.C. 944.
    (1) Borrower and Program Support Services. Borrower and Program 
Support Services consist of the three following staffs which are 
responsible to the Administrator for planning and carrying out a 
variety of program and administrative services in support of all RUS 
programs, and providing expert advice and coordination for the 
Administrator:
    (i) Administrative Liaison Staff. Headed by a staff director, this 
staff advises the Administrator on management issues and policies 
relating to human resources, EEO, labor-management partnership, 
administrative services, travel management, automated information 
systems, and administrative budgeting and funds control.
    (ii) Program Accounting Services Division. Headed by a division 
director, this division develops and evaluates the accounting systems 
and procedures of Electric, Telecommunications, and Water and 
Wastewater borrowers; assures that accounting policies, systems, and 
procedures meet regulatory, Departmental, General Accounting Office, 
OMB, and Treasury Department requirements; examines borrowers' records 
and operations, and reviews expenditures of loans and other funds; 
develops audit requirements; and approves Certified Public Accountants 
to perform audits of borrowers.
    (iii) Program and Financial Services Staff. Headed by a staff 
director, this staff evaluates the financial conditions of troubled 
borrowers, negotiates settlements of delinquent loans, and makes 
recommendations to program Assistant Administrators on ways to improve 
the financial health of borrowers.
    (2) Office of Assistant Administrator--Electric Program. Headed by 
the Assistant Administrator--Electric Program, this office is 
responsible to the Administrator for directing and coordinating the 
Rural Electrification program of RUS nationwide. This office develops, 
maintains, and implements regulations and program procedures on 
processing and approving loans and loan-related activities for rural 
electric borrowers. The office directs the following three divisions:
    (i) Electric Regional Divisions. Headed by division directors, 
these two divisions are responsible for administering the Rural 
Electrification program in specific geographic areas and serving as the 
single point of contact for all distribution borrowers. The divisions 
provide guidance to borrowers on RUS loan policies and procedures, 
maintain oversight of borrower rate actions, and make recommendations 
to the Administrator on borrower applications for RUS financing. The 
divisions also assure that power plant, distribution, and transmission 
systems and facilities are designed and constructed in accordance with 
the terms of the loan and proper engineering practices and 
specifications.
    (ii) Power Supply Division. Headed by a division director, this 
division is responsible for administering the Rural Electrification 
program responsibilities with regard to power supply borrowers 
nationwide and serves as primary point of contact between RUS and all 
such borrowers. The division develops and maintains a loan processing 
program for Rural Electrification Act purposes, and develops and 
administers engineering and construction policies related to planning, 
design, construction, operation, and maintenance for power supply 
borrowers.
    (iii) Electric Staff Division. Headed by a division director, this 
division is responsible for engineering activities related to the 
design, construction, and technical operations and maintenance of power 
plants; distribution of power; and transmission systems and facilities, 
including load management and communications. The division develops 
criteria and techniques for evaluating the financing and performance of 
electric borrowers and forecasting borrowers' future power needs; and 
maintains financial expertise on the distribution and power supply loan 
program, and retail and wholesale rates.
    (3) Office of Assistant Administrator--Telecommunications Program. 
Headed by the Assistant Administrator--Telecommunications Program, this 
office is responsible to the Administrator for directing and 
coordinating the National Rural Telecommunications, Distance Learning, 
and Telemedicine programs of RUS. The Assistant Administrator, 
Telecommunications Program, serves as Assistant Governor of the RTB and 
is responsible for the day-to-day activities of the RTB. The office 
develops, maintains, and implements regulations and program procedures 
on the processing and approval of grants, loans, and loan-related 
activities for all rural telecommunications borrowers and grant 
recipients. The office directs the following three divisions:
    (i) Telecommunications Standards Division. Headed by a division 
director, this division is responsible for engineering staff activities 
related to the design, construction, and technical operation and 
maintenance of rural telecommunications systems and facilities. The 
office develops engineering practices, policies, and technical data 
related to borrowers' telecommunications systems; and evaluates the 
application of new communications network technology, including 
distance learning and telemedicine, to rural telecommunications 
systems.
    (ii) Advanced Telecommunications Services Staff. Headed by a staff 
director, this staff primarily serves the Assistant Administrator, 
Telecommunications Program in the role of the Assistant Governor of the 
RTB. The office performs analyses and makes recommendations to the AAT 
on issues raised by the RTB Governor, Board of Directors, or RTB 
borrowers. This staff maintains official records for the RTB Board and 
prepares minutes of RTB Board meetings. The staff director serves as 
the Assistant Secretary to the RTB. The staff performs the calculations 
necessary to determine the cost of money rate to RTB borrowers and 
recommends and develops program-

[[Page 67264]]

wide procedures for loan and grant programs. The office is responsible 
for the Telecommunications Program's home page on the Internet.
    (iii) Telecommunications Area Offices. Headed by area directors, 
these four offices are responsible for administering the 
Telecommunications, Distance Learning, and Telemedicine programs for 
specific geographic areas, and serving as the single point of contact 
for all program applicants and borrowers within their respective areas. 
The offices provide guidance to applicants and borrowers on RUS and RTB 
loan policies and procedures, and make recommendations to the 
Administrator on applications for loans, guarantees, and grants. The 
offices assure that borrower systems and facilities are designed and 
constructed in accordance with the terms of the loan, acceptable 
engineering practices and specifications, and acceptable loan security 
standards.
    (4) Office of the Assistant Administrator--Water and Environmental 
Programs. Headed by the Assistant Administrator, Water and 
Environmental Programs, this office is responsible to the Administrator 
for directing and coordinating a nationwide Water and Waste Disposal 
Program for RUS as authorized under Section 306 of the Consolidated 
Farm and Rural Development Act, as amended (7 U.S.C. 1926). The office 
oversees administration of RUS policies on making and servicing loans 
and grants for water and waste facilities in rural America, and the 
development of engineering policies, and practices related to the 
construction and operation of community water and waste disposal 
systems. This office is responsible for development and coordination of 
environmental programs with regard to the Water and Waste Disposal 
Program and directs the following two divisions:
    (i) Water Programs Division. Headed by the division director, this 
division is responsible for administering the Water and Waste Disposal 
loan and grant making and servicing and special authorities activities 
nationwide. This office also makes allocation of loan and grant funds 
to field offices and manages National Office reserves.
    (ii) Engineering and Environmental Staff. Headed by a staff 
director, this staff is responsible for engineering activities at all 
stages of program implementation, including: review of preliminary 
engineering plans and specifications, procurement practices, contract 
awards, construction monitoring, and system operation and maintenance. 
The staff also develops Agency engineering practices, policies, and 
technical data related to the construction and operation of community 
water and waste disposal systems. The staff is responsible for 
coordinating environmental policy and providing technical support in 
areas such as: hazardous waste, debarment and suspension, flood 
insurance, drug free workplace requirements, and computer program 
software.


Secs. 2003.23--2003.25  [Reserved]


Sec. 2003.26  Functional organization of RBS.

    (a) General. The Secretary established RBS pursuant to Sec. 234 of 
the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6944).
    (b) Office of the Administrator. According to 7 CFR 2.48, the 
Administrator is responsible for managing and administering the 
programs and support functions of RBS to provide assistance to 
disadvantaged communities through grants and loans and technical 
assistance to businesses and communities for rural citizens and 
cooperatives, pursuant to the following authorities: the Rural 
Electrification Act of 1936, as amended (7 U.S.C. 940c and 950aa et 
seq.), the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 
et seq.), the Cooperative Marketing Act of 1926 (7 U.S.C. 451-457), the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627), and the Food 
Security Act of 1985 (7 U.S.C. 1932). These grants, loans, and 
technical assistance improve community welfare by enhancing 
organizational and management skills, developing effective economic 
strategies, and expanding markets for a wide range of rural products 
and services.
    (1) Resources Coordination Staff. Headed by the staff director, 
this staff is responsible to the Administrator for preparing 
legislative initiatives and modifications for program enhancement. The 
staff monitors legislative and regulatory proposals that potentially 
impact RBS functions. The staff serves as liaison on budgetary and 
financial management matters between RBS staff and the Office of the 
Controller, and assists the Administrator in presenting and supporting 
RBS's budget and program plans. The staff also advises the 
Administrator and RBS officials on management issues and policies 
related to: human resources, labor relations, civil rights, EEO, space, 
equipment, travel, Senior Executive Service and Schedule C activities, 
contracting, automated information systems, and accounting. The staff 
provides analysis and recommendations on the effectiveness of 
administrative and management activities, and performs liaison 
functions between RBS and the Office of the Deputy Under Secretary for 
O&M on a wide variety of administrative functions.
    (2) Office of the Deputy Administrator, Business Programs. Headed 
by the Deputy Administrator, Business Programs, this office is 
responsible to the Administrator for overseeing and coordinating the 
Business and Industry Guaranteed and Direct Loan programs, Intermediary 
Relending Program loans, Rural Business Enterprise grants, Rural 
Business Opportunity grants, Rural Economic Development loan and grant 
programs, and the Rural Venture Capital Demonstration Program. The 
office participates in policy planning, and program development and 
evaluation. It also directs the following three divisions:
    (i) Processing Division. Headed by the division director, this 
division is responsible for developing and maintaining loan processing 
regulations, and directs the processing and approval of guaranteed and 
direct business and industry loans, and the Rural Venture Capital 
Demonstration Program. It provides technical assistance to field 
employees and borrowers on loan processing and develops approval 
criteria and performance standards for loans. The division recommends 
plans, programs, and activities related to business loan programs and 
provides environmental guidance and support.
    (ii) Servicing Division. Headed by the division director, this 
office is responsible for developing and maintaining servicing 
regulations. It directs and provides technical assistance to field 
employees and borrowers on servicing business loans and grants. The 
division reviews large, complex, or potentially controversial loan and 
grant dockets related to loan servicing and recommends servicing plans, 
programs, and activities related to business loan and grant programs.
    (iii) Specialty Lenders Division. Headed by the division director, 
this office is responsible for directing and developing and maintaining 
regulations concerning the processing and approval of Intermediary 
Relending loans, Rural Business Enterprise grants, Rural Business 
Opportunity grants, and Rural Economic Development loan and grant 
programs. The division provides technical assistance to field employees 
and borrowers on loan and grant processing and other activities. It 
also develops approval criteria and performance standards and 
recommends

[[Page 67265]]

plans, programs, and activities related to business loan and grant 
programs.
    (3) Office of the Deputy Administrator, Cooperative Services 
Programs. Headed by the Deputy Administrator, Cooperative Services 
Programs, this office is responsible to the Administrator for providing 
service to cooperative associations by administering a program of 
research and analysis of economic, social, legal, financial, and other 
related issues concerning cooperatives. The office administers programs 
to assist cooperatives in the organization and management of their 
associations and a program for economic research and analysis of the 
marketing aspects of cooperatives. The division administers and 
monitors activities of the National Sheep Industry Improvement Center 
and the Appropriate Technology Transfer to Rural Areas Program, and the 
Rural Cooperative Development Grant Program. The office directs the 
following three divisions:
    (i) Cooperative Marketing Division. Headed by the division 
director, this division is responsible for participating in the 
formulation of National policies and procedures on cooperative 
marketing. The division conducts research and analysis and gives 
technical assistance to farmer cooperatives on cooperative marketing of 
certain crops, livestock, aquaculture, forestry, poultry, semen, milk, 
and dairy products to improve their market performance and economic 
position.
    (ii) Cooperative Development Division. Headed by the division 
director, this division is responsible for participating in the 
formulation of National policies and procedures on cooperative 
development. The office conducts evaluations and analysis of proposed 
new cooperatives to develop plans for implementing feasible operations, 
and advises and assists rural resident groups and developing 
cooperatives in implementing sound business plans for new cooperatives. 
It provides research, analysis, and technical assistance to rural 
residents on cooperative development initiatives and strategies to 
improve economic conditions through cooperative efforts.
    (iii) Cooperative Resource Management Division. Headed by the 
division director, this division is responsible for participating in 
the formulating of National policies and procedures on cooperative 
resource management. The division conducts research and analysis and 
gives technical assistance to cooperatives on their overall structure, 
strategic management and planning, financial issues, and operational 
characteristics to improve their use of resources, financial policies, 
and ability to adapt to market conditions. The division conducts 
research and analysis of policy, taxation, Federal laws, State 
statutes, and common laws that apply to cooperative incorporation, 
structure, and operation to assist cooperatives in meeting legal 
requirements.
    (4) Office of the Deputy Administrator, Community Development. 
Headed by the Deputy Administrator, Community Development, this office 
is responsible to the Under Secretary, Rural Development, for 
coordinating and overseeing all functions in the Community Outreach and 
Empowerment Program areas. The office assists in providing leadership 
and coordination to National and local rural economic and community 
development efforts. For appropriation and accounting purposes, this 
office is located under RBS. The office directs the following two 
divisions:
    (i) Empowerment Program Division. Headed by the division director, 
this division is responsible for formulating policies and developing 
plans, standards, procedures, and schedules for accomplishing RBS 
activities related to ``community empowerment programs'', including EZ/
EC, AmeriCorps, and other initiatives. The office develops 
informational materials and provides technical advice and services to 
support States on community empowerment programs. It also generates 
information about rural conditions and strategies and techniques for 
promoting rural economic development for community empowerment 
programs.
    (ii) Community Outreach Division. Headed by the division director, 
this division is responsible for designing and overseeing overall 
systems and developing resources to support State and community level 
implementation activities for RBS programs. The office designs program 
delivery systems and tools, removes impediments to effective community-
level action, supports field offices with specialized skills, and 
establishes partnerships with National organizations with grass-roots 
membership to assure that programs and initiatives are designed and 
implemented in a way that empowers communities. It develops methods for 
working with rural business intermediaries to assist them in providing 
technical assistance to new, small business, and provides Internet-
based services to 1890 Land-grant universities, EZ/EC, and AmeriCorps 
volunteers, linking RBS information support to communities with high 
levels of need.
    (5) Alternative Agricultural Research and Commercialization 
Corporation. Headed by a director, this Corporation is responsible for 
providing and monitoring financial assistance for the development and 
commercialization of new nonfood and nonfeed products from agricultural 
and forestry commodities in accordance with 7 U.S.C. 5901 et seq. The 
Corporation acts as a catalyst in forming private and public 
partnerships and promotes new uses of agricultural materials. It 
expands market opportunities for U.S. farmers through development of 
value-added industrial products and promotes environmentally friendly 
products. For budget and accounting purposes, this office is assigned 
to RBS. The director of the Corporation is responsible to the Office of 
the Secretary.


Secs. 2003.27--2003.50  [Reserved]

    Dated: November 26, 1997.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 97-33588 Filed 12-23-97; 8:45 am]
BILLING CODE 3410-XT-U