[Federal Register Volume 62, Number 246 (Tuesday, December 23, 1997)]
[Notices]
[Pages 67225-67233]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33397]



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

[[Page 67225]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Availability of Funds; Multi-Family Housing, Single 
Family Housing

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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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 Self-Help 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.                                                                
\1\ To 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:


[[Page 67226]]



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 
set-asides 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.                                             
\1\ To 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

[[Page 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.

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[FR Doc. 97-33397 Filed 12-22-97; 8:45 am]
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