82484 Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations 

documents/ad-3027.pdf, from any 

USDA office, by calling (866) 632–9992, 

or by writing a letter addressed to 

USDA. The letter must contain the 

complainant’s name, address, telephone 

number, and a written description of the 

alleged discriminatory action in 

sufficient detail to inform the Assistant 

Secretary for Civil Rights (ASCR) about 

the nature and date of an alleged civil 

rights violation. The completed AD– 

3027 form or letter must be submitted to 

USDA by: 

(1) Mail: U.S. Department of 

Agriculture, Office of the Assistant 

Secretary for Civil Rights, 1400 

Independence Avenue SW, Washington, 

DC 20250–9410; or 

(2) Fax: (833) 256–1665 or (202) 690– 

7442; or 

(3) Email: Program.Intake@usda.gov. 

List of Subjects in 7 CFR Part 1775 

Business and industry, Community 

development, Community facilities, 

Grant programs—housing and 

community development, Reporting and 

recordkeeping requirements, Rural 

areas, Waste treatment and disposal, 

Water supply, Watersheds. 

Accordingly, for the reasons set forth 

in the preamble, the Agency amends 7 

CFR part 1775 as follows: 

PART 1775—TECHNICAL 

ASSISTANCE GRANTS 

■ 1. The authority citation for part 1775 

continues to read as follows: 

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 

U.S.C. 1005. 

Subpart B—Grant Application 

Processing 

■ 2. Amend § 1775.21 by revising 

paragraphs (a) and (b) to read as follows: 

§ 1775.21 Audit or financial statements. 

* * * * * 

(a) In accordance with subpart F of 2 

CFR part 200, as adopted by USDA 

through 2 CFR part 400, grantees 

expending Federal funds each fiscal 

year equal to or greater than the current 

Single Audit threshold will submit an 

audit. The audit will be submitted 

within 30 calendar days after the 

auditee receives the auditor’s report or 

9 months after the end of the grantee’s 

fiscal year, whichever is earlier. 

(b) Grantees expending less than the 

current Single Audit dollar threshold 

will provide annual financial statements 

covering the grant period, consisting of 

the organization’s statement of income 

and expense, and balance sheet signed 

by an authorized official of the 

organization. Financial statements will 

be submitted within 90 days after the 

grantee’s fiscal year end. 

Andrew Berke, 

Administrator, Rural Utilities Service, Rural 

Development. 

[FR Doc. 2024–23512 Filed 10–10–24; 8:45 am] 

BILLING CODE 3410–15–P 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

7 CFR Parts 3550 and 3555 

[Docket No. RHS–24–SFH–0031] 

Single Family Housing Section 502 

Direct and Guaranteed Manufactured 

Housing Pilots 

AGENCY: Rural Housing Service, USDA. 

ACTION: Notification of extension of 

waivers. 

SUMMARY: The Rural Housing Service 

(RHS or the Agency), a Rural 

Development agency of the United 

States Department of Agriculture 

(USDA), is issuing this notification to 

extend the period to waive two 

regulatory requirements for the Section 

502 Direct and Guaranteed 

Manufactured Housing program, while 

the Agency completes the rulemaking to 

remove regulatory barriers to assist 

eligible applicants by improving the 

ease of the pilot program (pilot) use for 

very low to moderate-income 

homeowners that seek to purchase more 

affordable housing. This continues to 

support the current Administration’s 

Housing Supply Action Plan which 

seeks to boost new financing 

mechanisms to build and supply quality 

affordable housing units. This document 

briefly discusses the waivers the Agency 

intends to continue and provides 

contact information for additional 

details about the pilot. 

DATES: The effective date of the two 

regulatory waivers is November 4, 2024. 

The duration of the pilot is anticipated 

to continue until May 1, 2025, or the 

date the Updating Manufactured 

Housing Provisions Final Rule is 

published and effective, whichever 

comes first. Additionally, the RHS may 

extend the pilot (with or without 

modifications) or terminate it depending 

on the workload and resources (i.e., 

budget and other considerations) 

required to administer the program, 

feedback from the public, and the 

effectiveness of the program. If the pilot 

is extended or terminated, the RHS will 

notify the public through a document 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: 

Stephanie Freeman, Finance and Loan 

Analyst, Policy, Analysis, and 

Communications Branch, Single Family 

Housing Guaranteed Loan Division, 

Rural Development, U.S. Department of 

Agriculture, Email: stephanie.freeman@

usda.gov; Phone: (314) 457–6413 and 

Jeremy Anderson, Finance and Loan 

Analyst, Single Family Housing Direct 

Loan Division, Rural Development, U.S. 

Department of Agriculture, Email: 

jeremy.anderson@usda.gov; Phone: 

(202) 690–3971. 

SUPPLEMENTARY INFORMATION: 

Authority: Title V, Section 502 of the 

Housing Act of 1949, as amended; 42 U.S.C. 

1472. 

Background 

The RHS is committed to helping 

improve the economy and quality of life 

in rural areas by offering a variety of 

programs. The Agency offers loans, 

grants, and loan guarantees to help 

create jobs, expand economic 

development, and provide critical 

infrastructure investments. RHS also 

provides technical assistance loans and 

grants by partnering with agricultural 

producers, cooperatives, Indian tribes, 

non-profits, and other local, State, and 

Federal agencies. 

Affordable housing is essential to the 

vitality of communities in rural 

America. Rural Development’s Single 

Family Housing Programs give families 

and individuals the opportunity to 

purchase, build, repair their existing 

home, or to refinance their current 

mortgage under certain criteria. 

Eligibility for these loans, loan 

guarantees, or grants is based on income 

which varies according to the average 

median income for each eligible rural 

area. 

The objective of the Section 502 

Direct Loan Program under 7 CFR part 

3550 is to assist very low and lowincome applicants to own adequate but 

modest, decent, safe, and sanitary 

housing in eligible rural areas by 

providing payment assistance to 

increase an applicant’s repayment 

ability. The payment assistance is a type 

of subsidy that reduces the mortgage 

payment for a short time and is 

determined by the adjusted family 

income. There are a number of different 

factors that determine the applicant’s 

eligibility for this program but at 

minimum they must have the adjusted 

income that is at or below the applicable 

low-income limit for the area where 

they wish to purchase a home and they 

must demonstrate a willingness and 

have the ability to repay the debt. 

The Section 502 Guaranteed Loan 

Program, under 7 CFR part 3555, 


ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations 82485 

provides a 90% loan note guarantee to 

approved lenders to assist low- and 

moderate-income households the 

opportunity to own decent, safe, and 

sanitary dwellings as their primary 

residence in eligible rural areas. Eligible 

applicants may purchase, build, 

rehabilitate, improve, or relocate a 

dwelling in an eligible rural area. 

Applicant eligibility for this program is 

determined by the lender. 

RHS may authorize limited 

demonstration programs to test new 

approaches to offering housing under 

the statutory authority granted to the 

Secretary, as set forth in 7 CFR 3550.7 

and 3555.2(b). Such demonstration 

programs may not be consistent with 

some of the provisions contained in this 

part. However, any program 

requirements that are statutory will 

remain in effect. 

In 2022, the Agency extended the 

existing pilot in order to continue 

assessing the pilots’ impact. The first 

pilot involves financing existing 

manufactured homes; the second pilot 

involves the ownership requirement for 

new energy-efficient manufactured and 

modular homes in land-lease 

communities operating on a nonprofit 

basis. These allowances remain 

unchanged from any previous 

extensions of this pilot. While the 

number of participating states remain 

restricted, the pilot ensures adequate 

regional representation. 

Existing Manufactured Home Pilot 

The Agency is continuing with the 

existing pilot, which was initially 

implemented on August 12, 2016, and 

continued via a document published in 

the Federal Register (at 87 FR 66075 on 

November 2, 2022), which expires on 

November 4, 2024. In the November 22, 

2022, document, the Agency waived the 

regulatory restrictions in 7 CFR parts 

3550 and 3555 and permitted the 

financing of existing manufactured 

homes in the pilot states even when the 

home was not currently financed by the 

Agency. Under the current regulations, 

new manufactured homes are eligible 

for financing through the Section 502 

Single Family Housing (SFH) Direct and 

Guaranteed Loan Programs. Existing 

manufactured homes are not eligible 

unless the home is already financed 

through Rural Development (RD) (7 CFR 

3550.52(e)(l); 3550.73(b); 

3555.208(b)(3)). The Agency anticipates 

the completion of rulemaking in the 

near future that will codify the waivers 

into 7 CFR parts 3550 and 3555, and 

which will be applied program wide. 

Eligibility Requirements 

Approved lenders in the SFH 

Guaranteed Loan Program do not 

require additional approval to 

participate provided the home is in a 

pilot state. The loan request must be 

from an eligible applicant, all the pilot 

conditions listed in this section must be 

met, and all other program requirements 

that have not been waived must also be 

met. 

The following States are included in 

this pilot: 

Colorado, Iowa, Louisiana, Michigan, 

Mississippi, Montana, Nevada, New 

Hampshire, New York, North Dakota, 

Ohio, Oregon, Pennsylvania, South 

Dakota, Tennessee, Texas, Utah, 

Vermont, Virginia, Washington, West 

Virginia, Wisconsin, and Wyoming. 

The following unit requirements 

below must be met: 

The unit must have been constructed 

on or after January 1, 2006, in 

conformance with the Federal 

Manufactured Home Construction and 

Safety Standards (FMHCSS), as 

evidenced by an affixed Housing and 

Urban Development (HUD) Certification 

Label, and the unit must not have been 

previously installed on a different 

homesite, or had any structural 

alterations to it since construction in the 

factory, except for porches, decks, or 

other structures which were built to 

engineered designs or were approved 

and inspected by local code officials. 

The unit inspection is required using 

one of two methods: 

Option 1—Form HUD–309, ‘‘HUD 

Manufactured Home Installation 

Certification and Verification Report’’ 

completed in accordance with 24 CFR 

3286.511 by a qualified party as follows: 

A manufactured home or residential 

building inspector employed by the 

local authority having jurisdiction over 

the site of the home, provided that the 

jurisdiction has a residential code 

enforcement program; a professional 

engineer, registered architect a HUDaccepted Production Inspection Primary 

Inspection Agency (IPIA) or a Design 

Approval Primary Inspection Agency 

(DAPIA), or an International Code 

Council (ICC) certified inspector; 

Or 

Option 2—Obtain a certification that 

the foundation design meets the 

requirements of either HUD Handbook 

4930.3G or HUD Publication 7584, 

which updated and revised the pre-1996 

version of HUD Handbook 4930.3G, 

‘‘Permanent Foundations Guide for 

Manufactured Housing (PFGMH).’’ 

Certifications referencing either 

Publication 7584 or Handbook 4930.3G 

are acceptable. The foundation 

certification must be from a licensed 

professional engineer or registered 

architect who is licensed/registered in 

the state where the manufactured home 

is located and must attest to current 

guidelines of the PFGMH. The 

certification must be site specific and 

contain the engineer’s or registered 

architect’s signature, seal, and/or state 

license/certification number. This 

certification can take the place of Form 

HUD 309. 

Guaranteed loan applications 

submitted under this pilot must be 

manually submitted and underwritten; 

however, the documents may be 

submitted through GUS. A job aid for 

this type of submission is available in 

the USDA LINC Training and Resource 

Library in the ‘‘Loan Origination’’ tab or 

directly here: https://www.rd.usda.gov/ 

sites/default/files/linc_manual_

submission_job_aid.pdf. Agency staff 

will need to select ‘‘MANUFACTURED 

(PILOT)’’ for ‘‘Construction Type’’ in the 

Property Information section in GLS. 

This will allow for the proper 

identification of pilot loans for tracking 

and monitoring purposes. 

Direct loan applications submitted 

under the pilot are submitted directly to 

the local RD office. Agency staff will 

need to select Program Type Code 1014 

(very low income) or 1015 (low income) 

unless the property is located in a 

persistent poverty county, in which case 

Program Type Code 1114 (very low 

income) or 1115 (low income) will be 

used. In addition, Agency staff will need 

to select a Construction Type of 

‘‘Manuf/Home’’ and a Dwelling Type of 

‘‘Purchase Old, Refinance, Purchase 

Old/Repair, or Refinance/Repair’’ in 

UniFi. This will allow for the proper 

identification of pilot loans for tracking 

and monitoring purposes. 

The applicant and property must meet 

all other criteria set forth in 7 CFR part 

3550 and HB–1–3550 for Direct loans or 

7 CFR part 3555 and HB–1–3555 for 

Guaranteed loans, as applicable. These 

criteria include, but are not limited to, 

the following: The unit must have a 

floor area of not less than 400 square 

feet; the unit must meet the Comfort 

Heating and Cooling Certificate Uo 

Value Zone for the location; the towing 

hitch and running gear must have been 

removed; the manufactured home must 

be classified and taxed as real estate; the 

remaining economic life of the property 

must meet or exceed the 30 year term 

of the proposed loan; and the unit 

replacement cost coverage must be 

equal to the insured value of the 

improvements or the unpaid principal 

balance with deductible(s) of up to but 

not exceeding the greater of $1,000 or 

one percent (1%) of the policy. For 


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82486 Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations 

Guaranteed Loans, the unit should have 

replacement cost coverage in an amount 

that is at least equal to the guaranteed 

value of the improvements or the 

unpaid principal balance, with the 

deductible not exceeding five percent 

(5%) of the total coverage amount. 

Ownership Requirement Pilot for 

Energy Efficient Manufactured and 

Modular Home Financing in LandLease Communities Operating on a 

Nonprofit Basis 

The Agency is continuing with the 

existing pilot that involves the 

ownership requirement for new energyefficient manufactured and modular 

homes in land-lease communities 

operating on a nonprofit basis. 

According to 7 CFR 3550.58(b), a 

leasehold interest must have an 

unexpired term that is at least 150 

percent of the term of the mortgage for 

Direct loans. According to 7 CFR 

3555.203(b)(3), a leasehold interest must 

have an unexpired term of at least 45 

years from the date of loan closing for 

a Guaranteed loan. 

Eligibility Requirements 

Under this pilot, RD will accept a 

lease with an unexpired term that is at 

least two years beyond the term of the 

promissory note in the pilot states. 

The following States are included in 

this pilot: California, Michigan, 

Minnesota, New Hampshire, Oregon, 

Pennsylvania, Vermont, and Wisconsin. 

The loan request must be from an 

eligible applicant, all the pilot 

conditions must be met, and new 

manufactured and modular homes must 

meet the following pilot conditions: 

At a minimum, new manufactured 

and modular homes must be Energy Star 

compliant. Additionally, the unexpired 

term of the lease must be at least two 

years longer than the mortgage term. 

While the lease terms in 7 CFR 

3550.58(b) and 3555.203(b)(3) offer 

borrowers some protections, many states 

have statutes that promulgate fair lease 

terms and safeguard residents of landlease communities. 

For the SFH Guaranteed Loan 

Program, pilot states should consider 

following the recommendations in 

HUD’s interim guidance related to 24 

CFR 3285.312 on the use of frost-free 

foundations or frost protected shallow 

foundations. 

For the SFH Direct Loan Program, 

pilot states may use the 

recommendations from HUD’s interim 

guidance on frost-free or frost-protected 

shallow foundations in lieu of RD 

Instruction 1924–A, Exhibit J. Under the 

HUD interim guidance 

recommendations, the installer should 

install all footings and piers below the 

frost line depth, or for Frost Free 

Foundations, have a site investigation 

performed by a soil engineer or 

geotechnical engineer to verify if the 

soil condition at each home site is of a 

non-frost susceptible classification and 

is well drained. In lieu of a site soil 

investigation, a layer of washed gravel, 

or crushed stone, or course or dense 

sand may be provided to the frost line 

depth. For either of these alternatives, 

subsurface drains need to be provided; 

or use a Frost Protected Shallow 

Foundation system that utilizes below 

ground insulation to protect the soil 

from freezing with subsurface drains 

provided at each site. 

The applicant and property must meet 

all other criteria set forth in 7 CFR part 

3550 and HB–1–3550 for Direct loans or 

7 CFR part 3555 and HB–1–3555 for 

Guaranteed loans, as applicable for 

application guidance. Program Directors 

should use the tracking tool under the 

‘‘Energy Efficient Housing’’ link on the 

SFH SharePoint tracking site to report 

loans made under this pilot. 

Paperwork Reduction Act 

The regulatory waivers for this pilot 

contains no new reporting or 

recordkeeping burdens under OMB 

control number 0575–0179 that would 

require approval under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

chapter 35). 

Non-Discrimination Statement 

In accordance with Federal civil 

rights laws and USDA civil rights 

regulations and policies, the USDA, its 

Mission Areas, agencies, staff offices, 

employees, and institutions 

participating in or administering USDA 

programs are prohibited from 

discriminating based on race, color, 

national origin, religion, sex, gender 

identity (including gender expression), 

sexual orientation, disability, age, 

marital status, family/parental status, 

income derived from a public assistance 

program, political beliefs, or reprisal or 

retaliation for prior civil rights activity, 

in any program or activity conducted or 

funded by USDA (not all bases apply to 

all programs). Remedies and complaint 

filing deadlines vary by program or 

incident. 

Program information may be made 

available in languages other than 

English. Persons with disabilities who 

require alternative means of 

communication to obtain program 

information (e.g., Braille, large print, 

audiotape, American Sign Language) 

should contact the responsible Mission 

Area, agency, or staff office; or the 711 

Federal Relay Service. 

To file a program discrimination 

complaint, a complainant should 

complete a Form AD–3027, USDA 

Program Discrimination Complaint 

Form, which can be obtained online at 

U.S. Department of Agriculture USDA 

Program Discrimination Complaint from 

any USDA office, by calling (866) 632– 

9992, or by writing a letter addressed to 

USDA. The letter must contain the 

complainant’s name, address, telephone 

number, and a written description of the 

alleged discriminatory action in 

sufficient detail to inform the Assistant 

Secretary for Civil Rights (ASCR) about 

the nature and date of an alleged civil 

rights violation. The completed AD– 

3027 form or letter must be submitted to 

USDA by: 

(1) Mail: U.S. Department of 

Agriculture Office of the Assistant 

Secretary for Civil Rights 1400 

Independence Avenue, Washington, DC 

20250–9410; or (2) Fax: (833) 256–1665 

or (202) 690–7442; or (3) Email: 

Program.Intake@usda.gov. 

Joaquin Altoro, 

Administrator, Rural Housing Service. 

[FR Doc. 2024–23506 Filed 10–10–24; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2024–1882; Project 

Identifier AD–2024–00227–T; Amendment 

39–22843; AD 2024–19–01] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

The Boeing Company Model 747–100, 

747–100B, 747–100B SUD, 747–200B, 

747–200C, 747–200F, 747–300, 747– 

400, 747–400D, 747–400F, 747SP, and 

747SR series airplanes. This AD was 

prompted by a report indicating cracks 

at eight fastener hole locations in the 

fuselage skin lap splice between certain 

stations (STAs) at certain stringers. This 

AD requires repetitive inspections of the 

upper fastener row of the fuselage skin 

lap splice in a certain area for any crack, 

and applicable on-condition actions. 

The FAA is issuing this AD to address 

the unsafe condition on these products. 

DATES: This AD is effective November 

15, 2024. 


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