96130 Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Proposed Rules 

For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service proposes to amend 7 CFR part 

985 as follows: 

PART 985—MARKETING ORDER 

REGULATING THE HANDLING OF 

SPEARMINT OIL PRODUCED IN THE 

FAR WEST 

■ 1. The authority citation for 7 CFR 

part 985 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Amend § 985.234 by revising 

paragraph (b) to read as follows: 

§ 985.234 Salable quantities and allotment 

percentages—2024–2025 marketing year. 

* * * * * 

(b) Class 3 (Native) oil—a salable 

quantity of 731,220 pounds and an 

allotment percentage of 28 percent. 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2024–28214 Filed 12–3–24; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

7 CFR Part 1944 

[Docket No. RHS–24–SFH–0037] 

RIN 0575–AD37 

Self-Help Technical Assistance Grants: 

Technical Corrections and Program 

Updates 

AGENCY: Rural Housing Service, USDA. 

ACTION: Proposed rule. 

SUMMARY: The Rural Housing Service 

(RHS or the Agency), a Rural 

Development (RD) agency of the United 

States Department of Agriculture 

(USDA), proposes to update and 

streamline the Single-Family Housing 

(SFH) Self-Help Technical Assistance 

Grant Program. The Self-Help Program 

has evolved, and the current regulations 

as codified restrict the Agency’s ability 

to be flexible with market changes. The 

intent of this proposed rule is to reduce 

the regulatory burdens in the current 

regulation, to assist the Agency to better 

achieve the program objectives, 

streamline administrative regulatory 

requirements and make the program 

more effective in serving rural 

Americans by increasing decent, safe, 

and sanitary housing stock across the 

Nation. 

DATES: Comments on the proposed rule 

must be received on or before February 

3, 2025. 

The comment period for the 

information collection under the 

Paperwork Act of 1995 must be received 

on or before February 3, 2025. 

ADDRESSES: Comments may be 

submitted electronically by the Federal 

eRulemaking Portal: Go to http://

www.regulations.gov and, in the 

‘‘Search Field’’ box, labeled ‘‘Search for 

dockets and documents on agency 

actions,’’ enter the following docket 

number: (RHS–24–SFH–0037) or 

Regulation Identifier Number (RIN): 

(0575–AD37). To submit or view public 

comments, click the ‘‘Search’’ button, 

select the ‘‘Documents’’ tab, then select 

the following document title: ‘‘Self-Help 

Technical Assistance Grants: Technical 

Corrections and Program Updates’’ from 

the ‘‘Search Results,’’ and select the 

‘‘Comment’’ button. Before inputting 

your comments, you may also review 

the ‘‘Commenter’s Checklist’’ (optional). 

Insert your comments under the 

‘‘Comment’’ title, click ‘‘Browse’’ to 

attach files (if available). Input your 

email address and select ‘‘Submit 

Comment.’’ Information on using 

Regulations.gov, including instructions 

for accessing documents, submitting 

comments, and viewing the docket after 

the close of the comment period, is 

available through the site’s ‘‘FAQ’’ link. 

All comments will be available for 

public inspection online at the Federal 

eRulemaking Portal (http://

www.regulations.gov). 

Other Information: Additional 

information about Rural Development 

and its programs is available on the 

internet at http://www.rurdev.usda.gov/ 

index.html. 

In accordance with 5 U.S.C. 553(b)(4), 

a summary of this proposed rule may be 

found by going to http://

www.regulations.gov and in the ‘‘Search 

for dockets and documents on agency 

actions’’ box, enter the following docket 

number RHS–24–SFH–0037. 

FOR FURTHER INFORMATION CONTACT: 

Sunceri Dade, Finance & Loan Analyst, 

SFH Direct Division, Rural Housing 

Service, Rural Development, United 

States Department of Agriculture, 1400 

Independence Avenue SW, Washington, 

DC 20250, Phone: 202–720–1485, Email: 

Sunceri.Dade@usda.gov. 

SUPPLEMENTARY INFORMATION: 

Statutory Authority 

Section 510(k) of Title V the Housing 

Act of 1949 [42 U.S.C. 1480(k)], as 

amended, authorizes the Secretary of 

the Department of Agriculture to 

promulgate rules and regulations as 

deemed necessary to carry out the 

purpose of that title. The Self-Help 

program is authorized under Section 

523 of Title V the Housing Act of 1949 

(42 U.S.C. 1490(c)), as amended, 

authorizes the Secretary of the 

Department of Agriculture to 

promulgate rules and regulations as 

deemed necessary to carry out the 

purpose of that title. The program is 

implemented under 7 CFR part 1944, 

subpart I. 

I. Background 

The RHS offers a variety of programs 

to build or improve housing and 

essential community facilities in rural 

areas. RHS offers loans, grants, and loan 

guarantees for single- and multifamily 

housing, childcare centers, fire and 

police stations, hospitals, libraries, 

nursing homes, schools, first responder 

vehicles and equipment, housing for 

farm laborers. RHS also provides 

technical assistance loans and grants in 

partnership with non-profit 

organizations, Indian Tribes, state and 

federal government agencies, and local 

communities. 

Well built, affordable housing is 

essential to the vitality of communities 

in rural America. RD SFH Programs give 

families and individuals the 

opportunity to buy, build, or repair 

affordable homes located in rural 

America. Eligibility for these loans, loan 

guarantees, and grants is based on 

income and varies according to the 

average median income for each area. 

Section 510(k) of Title V the Housing 

Act of 1949 [42 U.S.C. 1480(k)], as 

amended, authorizes the Secretary of 

the Department of Agriculture to 

promulgate rules and regulations as 

deemed necessary to carry out the 

purpose of that title. The Self-Help 

program is authorized under Section 

523 of Title V the Housing Act of 1949 

(42 U.S.C. 1490(c)), as amended, 

authorizes the Secretary of the 

Department of Agriculture to 

promulgate rules and regulations as 

deemed necessary to carry out the 

purpose of that title. The RHS 

administers the Section 523 Self-Help 

Housing Technical Assistance Grant 

Program which is implemented under 7 

CFR 1944, Subpart I and authorized by 

the Housing Act of 1949, as amended 

(42 U.S.C. 1490c). The purpose of the 

program is to provide grants to qualified 

organizations to help them carry out 

local self-help housing construction 

projects. Grant recipients supervise 

groups of very low- and low-income 

individuals and families as they 

construct or rehabilitate their homes in 

rural areas. The group members provide 

most of the construction labor on each 

other’s homes, and rehabilitation project 

participants contribute construction 

hours based on the amount of work 


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Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Proposed Rules 96131 

being completed, all with technical 

assistance from the organization 

overseeing the project. Eligible 

applicants include government 

nonprofit organizations, federally 

recognized Tribes, and private nonprofit 

organizations. 

The SFH program undertook a 

systematic review of its current 

regulation at 7 CFR 1944 Subpart I and 

the procedures to administer its 

programs. It was determined that several 

technical corrections and program 

updates are needed. 

II. Discussion of the Proposed Rule 

The SFH program routinely meets 

with staff and partners to provide them 

with the opportunity to discuss 

suggestions for process improvement(s) 

to reduce the burden on grantees and 

borrowers, increase the flexibility of the 

program and improve overall customer 

satisfaction. As a result of these 

consultations, SFH has identified 

several processes and regulatory 

improvements which are described in 

the next section. Continued stakeholder 

input is vital to ensure the proposed 

changes would support the Self-Help 

Program’s mission, while ensuring that 

regulation changes are reasonable and 

do not overly burden the Agency’s staff 

and their customers. 

III. Summary of Proposed Changes 

The following information details the 

changes in the proposed rule: 

(1) Make general revisions to 

streamline and update 7 CFR part 1944, 

subpart I: 

a. Remove/replace outdated 

references (e.g., County Office, County 

Supervisor, and District Director). 

State personnel and office locations 

have changed over the years, and the 

terms ‘‘County Office’’, ‘‘County 

Supervisor’’, and ‘‘District Director’’ are 

no longer used by the Agency. The 

Agency personnel assigned to review 

Self-help Program applications, and the 

person assigned to service the grant, 

could be different people in different 

parts of the State. The term ‘‘Authorized 

Agency Official’’ will be used to 

generalize assignments and allow states 

the flexibility to assign work for the 

program as needed. 

b. Replace references to ‘‘FmHA or its 

successor agency under Public law 103– 

354’’ with ‘‘Rural Housing Service’’ or 

‘‘Agency.’’ 

In 2006, the FmHA was fully 

terminated, and its housing and 

community programs were transferred 

to the newly formed USDA Rural 

Development. The proposed rule 

intends to replace the term ‘‘Farmers 

Home Administration’’ with the terms 

‘‘Agency’’ and ‘‘Rural Housing Service.’’ 

c. Replace references to ‘‘SF–269A’’ 

with ‘‘SF–425.’’ 

The Standard Form (SF 269A) was 

obsoleted several years ago. It will be 

replaced with the Federal Financial 

Report, Standard Form (SF)-425. 

d. Remove paragraph (d) from 7 CFR 

1944.406 ‘‘Prohibited use of grant 

funds.’’ 

Removing 7 CFR 1944.406(d) will 

align the regulation with 2 CFR part 200 

language which allows grant funds to be 

used for employee training. 

e. Remove requirements to submit a 

preapplication or application in an 

original and one copy. 

The Agency has moved to Electronic 

Customer Files (ECF) and no longer 

requires hard copy paper preapplication 

or applications. This update will 

streamline and modernize the program 

while also reducing environmental 

impact. 

f. Revise 7 CFR 1944.424 ‘‘Dwelling 

construction standards.’’ 

The Agency intends to update the 

paragraph to replace ‘‘local codes’’ with 

‘‘State, Tribal, or local requirements.’’ 

g. Remove requirement to submit an 

Affirmative Fair Housing Marketing 

Plan (AFHMP). 

The Agency has determined that the 

AFHMP is unnecessary considering 

marketing materials are collected and 

reviewed along with a very-low 

outreach plan. The Agency does not 

have its own AFHMP form, and the 

Housing and Urban Development form 

being used by Single-Family Housing 

has not been kept updated. This action 

will cause the removal of 

1944.410(a)(10) and 1944.410(b)(1)(iv). 

Self-help organizations are must still 

comply with all civil right laws as 

directed in the grant agreement. 

(2) Revise 7 CFR 1944.401 

‘‘Objectives’’ to remove outdated and 

incorrect statements. 

The Agency intends to update the 

introductory paragraph to reflect the 

program’s current objectives and 

represent the population it is designed 

to serve. 

(3) Revise 7 CFR 1944.403 

‘‘Definitions.’’ 

Definitions will be added which are 

intended to provide additional clarity to 

stakeholders about the program. 

(4) Revise 7 CFR 1944.404(d) to allow 

‘Board of Directors’ to be defined at 7 

CFR 1944.403 ‘‘Definitions.’’ 

SFH has determined that the language 

in this part of the regulation is out of 

place and should be moved to the 

definitions section. In addition, the 

requirement for all organizations to have 

a specific number of board members has 

been overly restrictive in some 

extremely rural areas. The Agency 

proposes to provide organizations with 

more flexibility related to the required 

number of board members in the 

regulatory definitions section. 

(5) Revise 7 CFR 1944.407 

‘‘Limitations.’’ 

This section of the regulation limits 

the amount of technical assistance (TA) 

an organization may apply for. The 

Agency proposes that the limitations in 

paragraphs (a), (b), (c), and (d) should be 

as follows: 

Remove the following sentence in 

paragraph (a), ‘‘Upon request, the 

County Supervisor will provide the 

grantee the average cost of modest 

homes for the area.’’ The equivalent 

value of a modest home will be 

established by the Agency on an annual 

basis as described in the definition at 7 

CFR 1944.403. The National Office will 

use a percentage of the area loan limit 

to establish the equivalent value of a 

modest home annually. 

Revise paragraph (b) ‘‘An average TA 

cost per equivalent unit that does not 

exceed the difference between the 

equivalent value of modest homes in the 

area and the average mortgage of the 

participating families minus $1,000’’ to 

increase to ‘. . . minus $10,000’ which 

will reduce the historically higher than 

necessary amount that can be charged to 

the grant. 

Revise paragraph (c) and move to 

paragraph (d) to remove the State 

Director’s approval of a technical 

assistance cost above the limits set in 

paragraphs (a) and (b) in favor of this 

approval being at the National Office 

level. Add other limitations may apply 

which will be released in an annual 

funding policy. As program funding 

remains unchanged or decreases 

annually, funding limitations may be 

necessary to manage program funds. 

The revised paragraph (c) will add a 

maximum TA cost per equivalent unit 

for rehabilitation-type programs. The 

maximum TA cost per equivalent unit 

will be no more than a percentage of the 

cost of the equivalent value of modest 

homes built in the area. The levels will 

be set in the regulation as not to exceed 

12 percent for acquisition rehab, and 9 

percent for owner-occupied. 

(6) Revise 7 CFR 1944.409 

‘‘Intergovernmental Consultation, 

Executive Order 12372.’’ 

The Agency intends to update the title 

and paragraph language of this section. 

(7) Revise 7 CFR 1944.410 ‘‘Processing 

preapplications, applications, and 

completing grant dockets.’’ 

As a consequence of historically 

limited funding for the Self-help 

Program, funds have not been available 


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96132 Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Proposed Rules 

for predevelopment grant awards. 

Proposed changes to the regulation will 

include items typically collected during 

the preapplication phase being 

incorporated into a part of the 

application docket. 

Other proposed changes/clarifications 

to § 1944.410 include: 

Add the requirement to submit the 

organization’s previous years financial 

audit in paragraph (a)(3). 

Remove the current requirement in 

paragraph (a)(5) ‘‘. . . living in houses 

that are deteriorated, dilapidated, 

overcrowded, and/or lacking plumbing 

facilities.’’ 

Specify in paragraph (b) that a 

preapplication review will only be 

completed when preapplications are 

accepted by the Agency. Typically, the 

full application docket will be reviewed. 

Remove references to Form AD 622, 

‘‘Notice of Preapplication Review 

Action’’ in paragraphs (b)(4)(i), (ii), and 

(e) in favor of issuing a letter of 

conditions for eligible preapplications/ 

applications or denial letter with appeal 

rights for those found to be ineligible. 

Remove the $10,000 limit in 

paragraph (d), and the up to six-month 

period of performance stipulation for 

predevelopment grants. Should funding 

allow for predevelopment grants these 

limitations will be set in an annual 

funding policy or other public release 

announcing the acceptance of 

preapplications. 

In paragraph (e)(2) at the time of 

application, specify that the first group 

can be determined eligible by the 

Agency or the organization; and in 

paragraph (3) lots do not need to be 

optioned; however, both will be a 

condition of closing. The Agency does 

not have funding for predevelopment 

grants to aid organizations in meeting 

these requirements, and in many cases, 

it is unreasonable to have a group ready 

to begin construction prior to the 

approval of the application. 

In paragraph (e)(7) clarify that a 

detailed budget is required in addition 

to SF 424A. 

Remove paragraph (c) and renumber 

paragraphs (d) and (e) accordingly. 

(8) Update 7 CFR 1944.411 

paragraphs (e) and (g) requirements for 

fidelity bonding and to establish an 

interest-bearing checking account. 

The regulation currently prohibits 

Grantees from drawing funding beyond 

a 30-day advancement, thus fidelity 

bonding is not needed. The Agency 

proposes to revise this section to read 

‘‘The grantee has established an interestbearing checking account in accordance 

with 2 CFR 200.305(b)(8).’’ 

(9) Remove 7 CFR 1944.412 ‘‘Docket 

preparation’’ chart in favor of an 

application checklist to be provided by 

the program office. 

Remove the chart currently in this 

section and include a complete 

application checklist provided by the 

program office. Electronic applications 

will be accepted. 

(10) Revise 7 CFR 1944.413 ‘‘Grant 

approval’’ to reflect the current 

practices. 

The National Office reviews, 

approves, and obligates all funding for 

the Self-help Program. The current 

process for application review is the 

docket will first be reviewed by the 

Technical and Management Assistance 

(T&MA) Contractor before submission to 

the RD Office designated by the State. 

After the field review and 

recommendation, the docket is 

submitted to the National Office for 

final review, approval, and funding. In 

addition to outlining this process, 

paragraph (a)(2) will be edited to 

remove reference to the Finance Office, 

as the Finance Office no longer 

processes obligations or fund 

disbursements as described. Reference 

to and use of Form RD 440–57 will be 

removed. 

(11) Revise 7 CFR 1944.415 ‘‘Grant 

approval and other approving 

authorities.’’ 

Funding for the Self-help Program 

remains limited, and the National Office 

must retain grant approval authority to 

manage the allocation of funds. SFH 

proposes to remove the State Director 

grant approval limits in paragraphs (a) 

and (b), and to combine the new 

paragraphs into one paragraph (a). 

Renumber paragraph (d) to be 

paragraph(c), and update the former 

paragraph (d), (1), (2) and (3) regarding 

the Agency official authorized to 

approve monthly expenditures when a 

grantee serves more than one county or 

state. The monthly expenditures should 

normally be approved by the Housing 

Program Director or designee and 

update the options for grantees working 

in multiple states. Should an 

organization propose to operate in more 

than one state the National Office will 

determine the appropriate approval 

official. 

(12) Update 7 CFR 1944.416 ‘‘Grant 

closing.’’ 

Revise the paragraph to replace 

‘Agreement’ with ‘Grant Agreement’ and 

remove the reference to 7 CFR 

1944.403(a); 

Add that cost may not be allocated to 

the Grant Agreement prior to execution; 

and Authorize the State Director or 

designee to execute the Grant 

Agreement on behalf of the Agency. 

(13) Update 7 CFR 1944.417 

‘‘Servicing actions after grant closing.’’ 

Revise paragraph (a) to state that 

draws may be requested as needed but 

no more than monthly, and that funding 

requests must be accompanied by an 

actual or projected budget. 

Update paragraph (a)(1) to remove 

references to Form RD 440–57, 

‘‘Acknowledgment of Obligated Funds/ 

Check Request’’ which is no longer in 

use. Form RD 440–57 

‘‘Acknowledgment of Obligated Funds/ 

Check Request’’ will also be removed 

from paragraph (a) (2)(i) and (ii). 

Revise paragraph (b) to specify 

quarterly reports are based on the grant 

start date instead of listing the 15th day 

of January, April, July, and October; 

change reference to Exhibit B to Subpart 

I of Part 1944 ‘‘Evaluation Report of 

Self-Help Technical Assistance (TA) 

Grants’’ to state that generally a 

‘progress report’ and/or ‘quarterly 

report’ will be submitted to allow for 

automated reporting systems to be used 

instead of Exhibit B to Subpart I of Part 

1944 ‘‘Evaluation Report of Self-Help 

Technical Assistance (TA) Grants’’ 

which will remain in the instruction as 

a guide where it can be easily updated 

as needed; replace ‘should’ with ‘will’ 

in reference to grant oversight quarterly 

meetings; and add language to allow the 

option to require more frequent 

reporting if problems are identified. 

In paragraph (b)(1)(iv), remove 

specific reference to Exhibit B–2 to 

Subpart I of Part 1944 ‘‘Breakdown of 

Construction Development for 

Determining Percentage Construction 

Completed’’ in favor of the general term 

‘construction development breakdown’. 

Add paragraph (b)(1)(v) to reference 

the new grant goal proposed in 7 CFR 

1944.419(a)(5). 

Add paragraph (b)(1)(vi) to reference 

grant goal at 7 CFR 1944.419(a)(6). 

(14) Update 7 CFR 1944.419 ‘‘Final 

grantee evaluation.’’ 

The requirements for obtaining a grant 

rating of ‘successful’ are minimal and do 

not accurately reflect rating a 

rehabilitation program. Update the grant 

goals to establish a minimum sweat 

equity/cost savings goal as part of the 

application process. 

(15) Update 7 CFR 1944.420 

‘‘Extension or revisions of the grant 

agreement.’’ 

This change updates the grant 

extension period from a ceiling of no 

more than one year to less restrictive 

language of a period that is 

‘‘reasonable’’. Reasonability will be 

determined based on consideration of 

grant goals completed, and the timeline 

to complete the remaining goals. 

Typically, this will be from one to two 

years. 


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(16) Update 7 CFR 1944.421 

‘‘Refunding of an existing grantee’’ to 

establish a process for ‘Carry-over’ 

equivalent units. 

High producing grantees often start 

homes in one grant cycle but finish 

them in another. Language is purposed 

to allow this practice with parameters. 

(17) Revise and update 7 CFR 

1944.422 ‘‘Audit and other reporting 

requirements.’’ 

Remove special provisions for 

nonprofits, State and local governments, 

and Indian Tribes found at 7 CFR 

1944.422 (a) and (b). 2 CFR part 200 

does not have these exemptions listed 

which were previously authorized. All 

grantees will have the same reporting 

requirements as defined in 2 CFR part 

200. 

Add language regarding auditing 

requirements for 502/504 borrowers 

supervised or custodial accounts. 

Direction regarding the audit 

requirements for 502/504 borrowers 

supervised or custodial accounts when 

managed by the grantee is needed. 

While a separate audit is not necessary, 

these accounts should be reviewed 

under an agreed-upon procedures 

format, not a single audit, as the grantee 

only manages these funds in trust. 

(18) Revise 7 CFR 1944.423 ‘‘Loan/ 

grant packaging and application 

submittal.’’ 

This change updates the title of the 

section and adds reference to Section 

504. 

(19) Revise 7 CFR 1944.424 ‘‘Dwelling 

construction standards’’ 

This change adds State and Tribal 

requirements to the dwelling 

construction standards versus just local 

codes. 

(20) Update 7 CFR 1944.425 

‘‘Handling and accounting for borrower 

loan funds.’’ 

This section’s updates include stating 

that the Agency is responsible for the 

administration of borrower loan funds. 

Grantee involvement such as holding a 

custodial or supervised account to 

manage these funds will be approved at 

the State level with minimum approval 

guidelines for staff to be defined in the 

program Instruction. 

(21) Revise 7 CFR 1944.426 ‘‘Grant 

closeout.’’ 

This change modifies the number of 

days, from 7 to 30, that the agency has 

to respond to the grantee regarding 

notification of termination and updates 

information on grant suspension appeal 

guidance. 

(22) Remove Subpart I of Part 1944 

Exhibits A, B, B–1, B–2, B–3, C, D, and 

E. Subpart I of Part 1944 Exhibits A, C, 

D, and E will be published as Forms. 

References to Exhibits B, B–1, B–2, 

and B–3 will be eliminated from the 

CFR in favor of publishing them in the 

program Instruction with updates. 

These Exhibits will be provided to 

organizations by the program offices. 

Exhibit A to Subpart I of Part 1944 

‘‘Self-Help Technical Assistance Grant 

Agreement’’ will be published as a Form 

and revised to include the new goals 

established with this proposed rule and 

add language to reference any closing 

conditions letter attached. 

Exhibit C to Subpart I of Part 1944 

‘‘Amendment to Self-Help Technical 

Assistance Grant Agreement’’ and 

Exhibit D to Subpart I of Part 1944 

‘‘Self-Help Technical Assistance Grant 

Predevelopment Agreement’’ will be 

published as Forms and revised to 

update the year from ‘19l to ‘20l. 

Exhibit E to Subpart I of Part 1944 

‘‘Guidance for Recipients of Self-Help 

Technical Assistance Grants (Section 

523 of Housing Act of 1949)’’ will be 

published as a Form and updated to 

remove outdated questions such as B.5. 

related to long distance phone call logs, 

B.8. regarding families being charged for 

the use of tools which is confusing 

given some grantees do rent tools to 

families when they are able to offer the 

best value, amongst other revisions. 

(23) Revise instruction in Exhibit F to 

Subpart I of Part 1944 ‘‘Site Option 

Loan to Technical Assistance Grantees’’ 

and add it as a new section in 7 CFR 

1944.428. 

The limitations provided for in this 

exhibit are a barrier to applicants in the 

current market in which larger loan 

amounts and longer repayment terms 

are necessary. There has not been a 

Section 523 Site Loan awarded in many 

years because the program parameters 

are not feasible (e.g. low loan limit, 

revolving loan fund requirements, 

interest rate disparity, and short 

repayment terms). 

Revise Section IV. ‘Limitations’ to 

remove the $10,000 loan limit in item 

(A) in favor of publishing limits as 

necessary (based on funding 

availability) in an annual funding policy 

and removing the loan limitation of 

fifteen percent of the purchase price in 

item (B); section V Rates and Terms to 

change item (A) so that the interest rate 

will be the lower of 3 percent or the 

current RHS monthly published rate, 

item (B) to revise the repayment period 

to allow for multiple payments. 

The revision would align the program 

with current market trends and 

reference the Section 524 program 

requirements to ease the application 

process and promote the utilization of 

program funds. Program information 

will also be moved to the body of the 

regulation under 1944.428 as a new 

section. 

Request for Comment 

Stakeholder input is vital to ensure 

the proposed changes in the proposed 

rule would support the Agency’s 

mission, while ensuring that new 

regulations and policies are reasonable 

and do not overly burden the Agency’s 

staff and their customers. Comments 

must be submitted on or before February 

3, 2025 and may be submitted 

electronically by going to the Federal 

eRulemaking Portal: http://

www.regulations.gov. Details on how to 

submit comments to the Federal 

eRulemaking Portal are in the 

ADDRESSES section of this proposed rule. 

IV. Regulatory Information 

Executive Order 12372, 

Intergovernmental Review of Federal 

Programs 

Intergovernmental Review of Federal 

Programs,’’ applies to this program. This 

E.O. requires that Federal agencies 

provide opportunities for consultation 

on proposed assistance with State and 

local governments. Many states have 

established a Single Point of Contact 

(SPOC) to facilitate this consultation. 

For a list of States that maintain a SPOC, 

please see the White House website: 

https://www.whitehouse.gov/omb/ 

management/office-federal-financialmanagement/. If your State has a SPOC, 

you may submit a copy of the 

application directly for review. Any 

comments obtained through the SPOC 

must be provided to your State Office 

for consideration as part of your 

application. If your state has not 

established a SPOC, you may submit 

your application directly to the Agency. 

Applications from Federally recognized 

Indian Tribes are not subject to this 

requirement. RHS conducts 

intergovernmental consultations for 

each loan in accordance with 2 CFR part 

415, subpart C. 

Executive Order 12866, Regulatory 

Planning and Review 

This proposed rule has been 

determined to be not significant for 

purposes of Executive Order 12866 and, 

therefore, was not reviewed by the 

Office of Management and Budget 

(OMB). 

Executive Order 12988, Civil Justice 

Reform 

This proposed rule has been reviewed 

under Executive Order 12988. In 

accordance with this rule: (1) Unless 

otherwise specifically provided, all 

State and local laws that conflict with 

this rule will be preempted; (2) no 


ddrumheller on DSK120RN23PROD with PROPOSALS1
96134 Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Proposed Rules 

retroactive effect will be given to this 

rule except as specifically prescribed in 

the rule; and (3) administrative 

proceedings of the National Appeals 

Division of the Department of 

Agriculture (7 CFR part 11) must be 

exhausted before suing in court that 

challenges action taken under this 

proposed rule. 

Executive Order 13132, Federalism 

The policies contained in this 

proposed rule do not have any 

substantial direct effect on States, on the 

relationship between the National 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of Government. This proposed 

rule does not impose substantial direct 

compliance costs on State and local 

Governments; therefore, consultation 

with States is not required. 

Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

This proposed rule has been reviewed 

in accordance with the requirements of 

Executive Order 13175, ‘‘Consultation 

and Coordination with Indian Tribal 

Governments.’’ Executive Order 13175 

requires Federal agencies to consult and 

coordinate with Tribes on a 

government-to-government basis on 

policies that have Tribal implications, 

including regulations, legislative 

comments or proposed legislation, and 

other policy statements or actions that 

have substantial direct effects on one or 

more Indian Tribes, on the relationship 

between the Federal Government and 

Indian Tribes or on the distribution of 

power and responsibilities between the 

Federal Government and Indian Tribes. 

Consultation is also required for any 

regulation that preempts Tribal law or 

that imposes substantial direct 

compliance costs on Indian Tribal 

governments and that is not required by 

statute. 

The Agency has determined that this 

proposed rule does not, to our 

knowledge, have Tribal implications 

that require formal Tribal consultation 

under Executive Order 13175. If a Tribe 

requests consultation, the Rural Housing 

Service will work with the Office of 

Tribal Relations to ensure meaningful 

consultation is provided where changes, 

additions and modifications identified 

herein are not expressly mandated by 

Congress. 

National Environmental Policy Act 

In accordance with the National 

Environmental Policy Act of 1969, 

Public Law 91–190, this proposed rule 

has been reviewed in accordance with 7 

CFR part 1970 (‘‘Environmental Policies 

and Procedures’’). The Agency has 

determined that i) this action meets the 

criteria established in 7 CFR 1970.53(f); 

ii) no extraordinary circumstances exist; 

and iii) the action is not ‘‘connected’’ to 

other actions with potentially 

significant impacts, is not considered a 

‘‘cumulative action’’ and is not 

precluded by 40 CFR 1506.1. Therefore, 

the Agency has determined that the 

action does not have a significant effect 

on the human environment, and 

therefore neither an Environmental 

Assessment nor an Environmental 

Impact Statement is required. 

Regulatory Flexibility Act 

This proposed rule has been reviewed 

with regard to the requirements of the 

Regulatory Flexibility Act (5 U.S.C. 

601–612). The undersigned has 

determined and certified by signature 

on this document that this rule will not 

have a significant economic impact on 

a substantial number of small entities 

since this rulemaking action does not 

involve a new or expanded program nor 

does it require any more action on the 

part of a small business than required of 

a large entity. 

Unfunded Mandate Reform Act (UMRA) 

Title II of the UMRA, Public Law 104– 

4, establishes requirements for Federal 

Agencies to assess the effects of their 

regulatory actions on State, local, and 

Tribal Governments and on the private 

sector. Under section 202 of the UMRA, 

Federal Agencies generally must 

prepare a written statement, including 

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 a Federal Agency to identify 

and consider a reasonable number of 

regulatory alternatives and adopt the 

least costly, more cost-effective, or least 

burdensome alternative that achieves 

the objectives of the rule. 

This proposed rule contains no 

Federal mandates (under the regulatory 

provisions of title II of the UMRA) for 

State, local, and Tribal Governments or 

for the private sector. Therefore, this 

rule is not subject to the requirements 

of sections 202 and 205 of the UMRA. 

Paperwork Reduction Act 

The information collection 

requirements contained in this 

regulation have been approved by OMB 

and have been assigned OMB control 

number 0575–0043. This proposed 

rulemaking contains new reporting 

requirements that would require 

approval under the Paperwork 

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

chapter 35). 

In accordance with the Paperwork 

Reduction Act of 1995, the Agency 

announces its intention to request a 

revision to a currently approved 

information collection for the Self-Help 

Technical Assistance Grant program and 

hereby open a 60-day public 

commenting period. 

Title: 7 CFR 1944–I, Self-Help 

Technical Assistance Grants. 

OMB Docket Number: 0575–0043. 

Expiration Date of Approval: May 31, 

2027. 

Type of Request: Revision of currently 

approved information collection. 

Abstract: This subpart set forth the 

policies and procedures and delegates 

authority for providing technical 

assistance funds to eligible applicants to 

finance programs of technical and 

supervisory assistance for self-help 

housing loan program, as authorized 

under section 523 of the Housing Act of 

1949 under 42 U.S.C. 1472. This 

financial assistance may pay part or all 

of the cost of developing, administering, 

or coordinating a program of technical 

and supervisory assistance to aid very 

low- and low-income families in 

carrying out self-help housing efforts in 

rural areas. The primary purpose is to 

locate and work with low-income 

families to secure decent, safe, and 

sanitary housing. RHS will be collecting 

information from non-profit 

organizations to enter into grant 

agreements. These non-profit 

organizations will give technical and 

supervisory assistance, and in doing so, 

they must develop a final application 

for section 523 grant funds. This 

application includes Agency forms that 

contain essential information for 

deciding eligibility. 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average .99 hours per 

response. 

Respondents: Public or private 

nonprofit organizations, State, Local or 

Tribal Governments. 

Estimated Number of Respondents: 

70. 

Estimated Number of Responses per 

Respondent: 29. 

Estimated Number of Responses: 

2,046. 

Estimated Reporting Burden Hours on 

Respondents: 1,865. 

Estimated Recordkeeping Burden 

Hours on Respondents: 170. 

Estimated Total Annual Burden on 

Respondents: 2,035. 


ddrumheller on DSK120RN23PROD with PROPOSALS1
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Copies of this information collection 

can be obtained from Kimble Brown, 

Innovation Center—Regulations 

Management Division, at 

Kimble.Brown@usda.gov. 

Comments: Comments are invited on: 

(a) Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

RHS, including whether the information 

will have practical utility; (b) the 

accuracy of RHS’s estimate of the 

burden of the proposed collection of 

information including the validity of the 

methodology and assumptions used; (c) 

ways to enhance the quality, utility, and 

clarity of the information to be 

collected; and (d) ways to minimize the 

burden of the collection of information 

on those who are to respond, including 

through the use of appropriate 

automated, electronic, mechanical, or 

other technological collection 

techniques or other forms of information 

technology. All responses to this notice 

will be summarized and included in the 

request for OMB approval. All 

comments will become a matter of 

public record. 

E-Government Act Compliance 

RHS is committed to complying with 

the E-Government Act by promoting the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information, 

services, and other purposes. 

Civil Rights Impact Analysis 

Rural Development has reviewed this 

rule in accordance with USDA 

Regulation 4300–4, Civil Rights Impact 

Analysis,’’ to identify any major civil 

rights impacts the rule might have on 

program participants on the basis of age, 

race, color, national origin, sex, or 

disability. After review and analysis of 

the rule and available data, it has been 

determined that implementation of the 

rule will not adversely or 

disproportionately impact very low, 

low- and moderate-income populations, 

minority populations, women, Indian 

Tribes, or persons with disability by 

virtue of their race, color, national 

origin, sex, age, disability, or marital or 

familiar status. No major civil rights 

impact is likely to result from this rule. 

Assistance Listing 

The program affected by this 

regulation is listed in the Assistance 

Listing Catalog (formerly Catalog of 

Federal Domestic Assistance) under 

number 10.420, Rural Self-Help Housing 

Technical Assistance. 

Non-Discrimination Statement 

In accordance with Federal civil 

rights laws and U.S. Department of 

Agriculture (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, 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 

https://www.usda.gov/sites/default/ 

files/document/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 

USDA is an equal opportunity 

provider, employer, and lender. 

List of Subjects in 7 CFR 1944 

Administrative practice and 

procedure, Aged, Cooperatives, Fair 

housing, Grant programs—housing and 

community development, Home 

improvement, Individuals with 

disabilities, Loan programs—housing 

and community development, Low and 

moderate income housing, 

Manufactured homes, Migrant labor, 

Rent subsidies, Reporting and 

recordkeeping requirements, Rural 

areas. 

For the reasons set forth in the 

preamble, the Rural Housing Service 

proposes to amend 7 CFR part 1944 as 

set forth below: 

PART 1944—HOUSING 

■ 1. The authority citation for part 1944 

continues to read as follows: 

Authority: 5 U.S.C. 301; 42 U.S.C. 1480. 

Subpart I—Self-Help Technical 

Assistance Grants 

■ 2. Revise § 1944.401 to read as 

follows: 

§ 1944.401 Objective. 

This subpart sets forth the policies 

and procedures and delegates authority 

for providing Technical Assistance (TA) 

funds to eligible applicants to finance 

programs of technical and supervisory 

assistance for self-help housing, as 

authorized under section 523 of the 

Housing Act of 1949. Any processing or 

servicing activity conducted pursuant to 

this subpart involving authorized 

assistance to Rural Development 

employees, members of their families, 

known close relatives, or business or 

close personal associates, is subject to 

the provisions of subpart D of part 1900 

of this chapter. Applicants for this 

assistance are required to identify any 

known relationship or association with 

a Rural Development employee. This 

financial assistance may pay part or all 

of the cost of developing, administering, 

or coordinating programs of technical 

and supervisory assistance to aid very 

low- and low-income families in 

carrying out self-help housing efforts in 

rural areas. Very low-income families 

must receive a priority for recruitment 

and participation and may not comprise 

less than the percentage stated in 

Section 502 of the Housing Act of 1949, 

as amended, of those assisted in any 

grant. The primary purpose is to fund 

organizations that are willing to locate 

and work with low-income families to 

secure decent, safe, and sanitary 

housing. Grantees will comply with the 

nondiscrimination regulation subpart E 

of part 1901 of this chapter which states 

that no person in the United States 

shall, on the grounds of race, color, 

national origin, sex, religion, marital 

status, mental or physical handicap, or 

age, be excluded from participating in, 

be denied the benefits of, or be subject 

to discrimination in connection with the 


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use of grant funds and all provisions of 

the Fair Housing Act of 1988, as 

amended. 

■ 3. Revise and republish § 1944.403 to 

read as follows: 

§ 1944.403 Definitions. 

(a) Agency. The Rural Housing 

Service within the Rural Development 

mission area of the U.S. Department of 

Agriculture (or its successor agency) 

which administers Section 523 grants. 

(b) Administrator. The official of the 

Rural Housing Service within the Rural 

Development mission area (or official of 

its successor agency) delegated 

authority by the Secretary of the U.S. 

Department of Agriculture to administer 

the Agency and its programs. 

(c) Applicant. An organization that 

submits an application for a Section 523 

technical assistance or predevelopment 

grant. 

(d) Acquisition Rehabilitation. The 

method of self-help housing 

rehabilitation that assists a participant 

in acquiring and rehabilitating a home 

through the program. 

(e) Authorized Agency Official. An 

individual within a Rural Development 

Office designated with responsibility for 

a Self-Help Program function (e.g. 

application reviewer, approval official, 

grant servicer, etc.). 

(f) Board of Directors. The governing 

body of an organization and its 

members. Typically, a board of directors 

will consist of no less than five 

members. For smaller organizations (i.e., 

less than 5 staff members) a board of 3 

or 4 is authorized. 

(g) Borrower. An applicant who has 

received a Section 502 Home Purchase 

Loan or Section 504 Home Repair Loan 

or Grant. 

(h) Closeout. The process of taking 

final action connected with a completed 

or terminated grant, including closing of 

grantee accounts, auditing grantee 

expenditures, and completing final 

reports. See also ‘‘Final Grantee 

Evaluation’’. 

(i) Cost savings. The value gained by 

the program participant through the 

contribution of their own labor to the 

project. This value is calculated as 

follows: 

(1) Acquisition Rehab. The cost 

savings is the difference between the 

appraised values before and after project 

completion. 

(2) Owner-Occupied Rehab. The cost 

savings is difference between the cost to 

have a contractor make the repair(s) and 

the self-help cost to the participant. 

(j) Custodial account. An account 

with the project funding for the 

participating families that is managed 

by the Self-Help Grantee. 

(k) Date of completion. The date when 

all work under a grant is completed or 

the expiration date in the TA grant 

agreement, or any supplement or 

amendment to it, when Federal 

assistance ends. 

(l) Debarment. A determination that a 

party is ineligible to participate in, or 

receive assistance under, Federal 

programs made in accordance with 2 

CFR parts 180 and 417. 

(m) Direct costs. Those costs that are 

specifically identified with a particular 

project or activity. Grantees receiving 

funds from a single grant source would 

typically consider all costs as direct 

costs. 

(n) Disallowed costs. Those charges to 

a grant which Rural Development 

determines cannot be authorized (see 

also 7 CFR 1944.406 Prohibited use of 

grant funds). 

(o) Environmental review. An analysis 

of the impacts that an activity funded 

with Agency funds may have on the 

natural or manmade environment. See 7 

CFR part 1970. 

(p) Equivalent units. Equivalent units 

represent the ‘‘theoretical number of 

units’’ arrived at by adding the 

equivalent percentage of completion 

figure for each family in the self-help 

program (pre-construction and actual 

construction) together at any given date 

during program operations. The sum of 

the percentage of completion figures for 

all participant families represent the 

total number of ‘‘theoretical units’’ 

completed at any point in time. 

Equivalent units are useful in measuring 

progress during the period of the grant 

and are not a measurement of actual 

accomplishments. The number of 

equivalent units for any group can never 

exceed the number of planned or 

completed houses for that group. 

(q) Equivalent value of a modest 

house. The typical cost of a recent 

contractor-built modest home in the 

area financed by the Agency plus the 

actual or projected costs of an 

acceptable site and site development. If 

the Agency has not financed a 

contractor-built house during the last 

twelve months, the value is established 

by use of online home sales sites; or as 

a percentage of the Area Loan Limits as 

published on the Agency website. The 

Equivalent value of a modest house is 

established by the Agency. 

(r) Existing grantee. A grantee that is 

currently operating a grant from the 

Agency or that has operated a grant 

within the past two years. 

(s) Family Labor Contribution. The 

value of labor contributed by a 

participating family to the process of 

constructing or rehabilitating their 

home. For new construction, each 

family in the group must contribute 

labor on each other’s homes to 

accomplish the 65 percent of the total 

100 percent of tasks defined to complete 

the dwelling. A participating family 

may use a substitute to perform the 

labor with prior approval of the Grantee 

and Rural Development. For 

rehabilitation type grants, participating 

families must complete a proportional 

amount of labor to the amount of 

rehabilitation tasks being completed but 

not less than 10 hours for owner 

occupied rehab, and 50 hours for 

acquisition rehab. Volunteer labor may 

be used in rehabilitation type projects. 

(t) Final grantee evaluation. An 

Agency evaluation performed in 

accordance with 7 CFR 1944.419 at the 

end of the grant period to determine if 

the grantee met its projected 

performance goals and complied with 

program requirements. 

(u) Grant Agreement. The legal 

document signed by the Self-Help 

grantee and the Agency that sets forth 

the terms and conditions under which 

technical assistance funds will be made 

available. The grant agreement will 

typically be for a period of 24 months 

but may be authorized for longer or 

shorter periods to accommodate the 

production of grantees (i.e., larger 

grantees may require longer grant period 

and vice versa). 

(v) Grantee. An organization for 

which the Agency has closed a Section 

523 technical assistance or 

predevelopment grant. 

(w) Group. Newly constructed homes 

under the Self-Help program are 

typically built by families working 

together in groups of five or more. State 

Director approval of groups less than 

five is required and may be granted only 

when it is determined the requirements 

of the Self-Help Program can be met 

(e.g. group labor, reduced building costs 

from bulk ordering, etc.). 

(x) Household. One or more persons 

who maintain residency together in a 

home. 

(y) High Risk. The designation given 

to a grantee by the State Office when a 

grantee is at risk of or currently is not 

meeting the self-help program’s 

requirements. 

(z) Indirect costs. Those costs that are 

incurred for common or joint objectives 

and therefore, cannot be readily and 

specifically identified with a particular 

project or activity, (e.g., self-help). 

(aa) Low-income. An adjusted income 

standard developed in accordance with 

the requirements of Section 501(b)(4) of 

the Housing Act of 1949. 

(bb) Membership Agreement. The 

document signed by a grantee and a 

participating family that establishes 


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Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Proposed Rules 96137 

each party’s responsibilities and 

obligations. 

(cc) Modest. A property that is 

considered modest for the area, with a 

market value that does not exceed the 

applicable area loan limit as established 

by Rural Housing Service in accordance 

with 7 CFR 3550.63. 

(dd) Mutual Self-Help Method. Refers 

to the contributory nature of 

homebuilding in the Self-Help Program. 

Each family contributes to the building 

of each home such that the total amount 

of labor contributed by each family is 

approximately equal. (See also family 

labor contribution.) 

(ee) Organization. 

(1) A State, political subdivision, or 

public nonprofit corporation (including 

Indian Tribes or Tribal corporations); or 

(2) A private nonprofit corporation 

that is owned and controlled by private 

persons or interests and is organized 

and operated for purposes other than 

making gains or profits for the 

corporation and is legally precluded 

from distributing any gains or profits to 

its members. 

(ff) Owner-Occupied Rehabilitation. 

The method of self-help housing 

rehabilitation that serves a participant 

that owns and occupies the home in 

need of repair at the time of application. 

Owners need not occupy the homes 

while repairs are being made, provided 

there is a plan for them to return to the 

home once the project is complete. 

(gg) Participating family. Individuals 

and/or their families who agree to build 

homes by the mutual self-help method 

and rehabilitate homes by the self-help 

method. Participants are families with 

very low- or low-incomes who have the 

ability to furnish their share of the 

required labor input regardless of the 

handicap, age, race, color, national 

origin, religion, family status, or sex of 

the head of household. 

(hh) Program requirements. 

Requirements set forth in any grant 

document, agreement, statute, or 

regulation applicable to Section 523 

grants. 

(ii) Quarterly review. A formal 

assessment conducted quarterly by 

those parties involved in the grant 

program (e.g., Grantee staff, Agency staff 

including grant oversight official, field 

staff processing the grantees packages, 

etc., and Technical and Management 

Assistance contractor of a grantee’s 

progress in meeting its Grant Agreement 

goals and program requirements). 

(jj) Reasonable costs. A cost is 

reasonable if, in its nature and amount, 

it does not exceed that which would be 

incurred by a prudent person under the 

circumstances prevailing at the time the 

decision was made to incur the cost. To 

be considered reasonable, costs must 

meet the following conditions: 

(1) The cost is of a type generally 

recognized as ordinary and necessary 

for the operation of the organization or 

the performance of the Federal award. 

(2) The cost meets the restraints or 

requirements imposed by such factors as 

sound business practices; arms-length 

bargaining; Federal, state, Tribal, and 

other laws and regulations; and terms 

and conditions of the award. 

(3) Market prices for similar goods or 

services are comparable. 

(4) The individuals concerned acted 

with prudence in the circumstances 

considering their responsibilities to the 

organization, its members, employees, 

clients, the public at large, and the 

Federal Government. 

(5) In incurring the cost, the 

organization did not deviate 

significantly from its established 

practices and, thereby, unjustifiably 

increase the award’s cost. 

(kk) Rural Housing Service. The 

Agency within the Rural Development 

mission area of the U.S. Department of 

Agriculture which administers the 

Section 523 Mutual Self-Help grant 

program. 

(ll) Self-help Method. The 

construction method by which an 

individual family utilizes their labor to 

reduce the construction cost of their 

home without an exchange of labor 

between participating families. Unless 

otherwise authorized by the National 

Office, this method is only funded for 

repair and rehabilitation type 

construction (owner occupied or 

acquisition rehabilitation). 

(mm) SHARES (Self-Help Automated 

Reporting and Evaluation System). The 

primary monitoring tool used by the 

Agency. The information accessible on 

SHARES includes data on construction, 

recruiting, and budgetary data for each 

grantee, their participating families, and 

the homes they are building. 

(nn) Site inspections. Construction 

site inspections may be conducted by 

the mortgage lender, or a qualified third 

party to ensure the construction/repair 

work is being completed adequately, 

and according to approved plans and 

specifications. At a minimum, 

inspection must be conducted three 

times during the construction of a 

house-after the footers are in place, once 

the framing is complete and mechanical, 

electrical, and plumbing are roughed in, 

and when the local authority has 

certified the house for occupancy. 

(oo) Specialty tools. Specialty tools 

are those tools needed to complete the 

construction of a home, not including 

hand tools that are commonly needed to 

maintain a home, such as hammers, 

screwdrivers, tape measures, pliers, and 

wrenches. Specialty tools include, but 

are not limited to, power saws, electric 

drills, saber saws, ladders, and 

scaffolds. 

(pp) Sponsor. An existing entity that 

is willing and able to assist an 

applicant, with or without charge, in 

applying for a grant and in carrying out 

responsibilities under the agreement. 

Examples of sponsors are local rural 

electric cooperatives, institutions of 

higher education, community action 

agencies and other self-help grantees. 

Also, when available, regional technical 

and management assistance contractors 

may qualify to serve as a sponsor at no 

charge. 

(qq) Supervised bank account. An 

account with a financial institution 

established through a deposit agreement 

entered into between the borrower, the 

Agency or Grantee, and the financial 

institution. 

(rr) Sweat equity. The benefit earned 

by the Mutual Self-Help program 

participant for the contribution of their 

own labor to the project construction. 

This value is calculated by subtracting 

the self-help construction cost of the 

homes from the appraised value of the 

homes. 

(ss) Technical assistance. The 

organizing and supervising of groups of 

families in the construction of their own 

homes including but not limited to: 

(1) Recruiting families who are 

interested in contributing labor in the 

construction or rehabilitation of their 

homes and assisting such families in 

obtaining housing loans. 

(2) Conducting meetings with the 

participants to explain the self-help 

program and subjects related to home 

ownership, such as loan payments, 

taxes, insurance, maintenance, and 

upkeep of the property. 

(3) Helping families in planning and 

developing activities that lead to the 

acquisition and development of suitable 

building sites or existing homes in the 

case of acquisition rehabilitation. 

(4) Assisting families in selecting or 

developing house plans for homes 

which will meet their needs and which 

they can afford. For rehabilitation type 

projects, assisting families in assessing 

need repairs. 

(5) Assisting families in obtaining cost 

estimates for construction materials and 

any contracting that may be required. 

(6) Providing assistance in the 

preparation of loan and/or grant 

applications. 

(7) Providing construction 

supervision and training for families 

while they construct or rehabilitate their 

homes. 


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(8) Providing financial supervision to 

individual families with loans and/or 

grants which will minimize the time 

and effort required by Rural 

Development in processing borrower 

expenditures for materials and contract 

services. 

(tt) Technical and Management 

Assistance (T&MA) contractor. An 

organization which receives Agency 

funding to provide services to the 

Agency and training and management 

assistance to grantees and prospective 

grantees. 

(uu) Termination. The Agency may 

terminate grantees when the grantee 

fails to meet certain requirements or 

when the grantee requests termination. 

A terminated grantee is ineligible for 

another Self-Help program TA grant for 

at least two years. 

(vv) Very low-income. An adjusted 

income standard developed in 

accordance with the requirements of 

Section 501(b)(4) of the Housing Act of 

1949. 

■ 4. Amend § 1944.404 by revising 

paragraph (d)(4) to read as follows: 

§ 1944.404 Eligibility. 

* * * * * 

(d) * * * 

(4) Has a board of directors as defined 

in § 1944.403 of this subpart. 

§ 1944.406 [Amended] 

■ 5. Amend § 1944.406 by removing 

paragraph (d) and redesignating 

paragraph (e) as new paragraph (d). 

■ 6. Amend § 1944.407 by revising 

paragraphs (a), (b), (c), and (d) to read 

as follows: 

§ 1944.407 Limitations. 

* * * * * 

(a) An average TA cost per equivalent 

unit of no more than 15 percent of the 

cost of equivalent value of modest 

homes built in the area; or 

(b) An average TA cost per equivalent 

unit that does not exceed the difference 

between the equivalent value of modest 

homes in the area and the average 

mortgage of the participating families 

minus $10,000; or 

(c) For rehabilitation type programs, 

the maximum TA cost per equivalent 

unit will be no more than the provided 

percentage of the cost of equivalent 

value of modest homes built in the area: 

(i) For acquisition rehabilitation, 12 

percent; 

(ii) For owner-occupied rehabilitation, 

9 percent; or 

(d) A TA per equivalent unit cost that 

does not exceed an amount established 

by the National Office. The National 

Office may establish other limitations as 

necessary that will be released in a 

notice published in the Federal 

Register. 

■ 7. Revising § 1944.409 to read as 

follows: 

§ 1944.409 Intergovernmental 

Consultation, Executive Order 12372. 

The self-help program is subject to the 

provision of Executive Order 12372 

which requires consultation with State 

and local officials to foster an 

intergovernmental partnership and 

strengthened federalism by relying on 

State and local processes for the State 

and local government coordination and 

review of proposed Federal financial 

assistance and direct Federal 

development. 

Applicants for the self-help program 

are required to contact their state’s 

Single Point of Contact (SPOC) to 

submit their Statement of Activities and 

find out more information on how to 

comply with the state’s process under 

Executive Order 12372. To locate a 

SPOC for your state, the Office of 

Management and Budget (OMB) has an 

official SPOC list on their website. For 

those States that have a home page for 

their designated SPCO, a direct link has 

been provided by clicking on the State 

name. 

States that are not listed on the OMB 

website page have chosen not to 

participate in the intergovernmental 

review process, and therefore do not 

have a SPOC. If you are located within 

a State that does not have a SPOC, you 

may send application materials directly 

to the awarding agency. 

■ 8. Revise and republish § 1944.410 to 

read as follows: 

§ 1944.410 Processing preapplications, 

applications, and completing grant dockets. 

(a) Form SF–424, ‘‘Application for 

Federal Assistance.’’ Form SF–424 

‘‘Application for Federal Assistance’’ 

must be submitted by the applicant to 

the Agency. It will be used to establish 

communication between the applicant 

and RHS, determine the applicant’s 

eligibility, determine how well the 

project can compete with similar 

applications from other organizations 

and eliminate any proposals which have 

little or no chance for Federal funding 

before applicants incur significant 

expenditures for preparing an 

application. In addition, the following 

information will be attached to and 

become a part of the preapplication or 

application: 

(1) Complete information about the 

applicant’s previous experience and 

capacity to carry out the objective of the 

agreement. 

(2) If the applicant organization is 

already formed, a copy of or an accurate 

reference to the specific provisions of 

State or Tribal law under which the 

applicant is organized; a certified copy 

of the applicant’s Articles of 

Incorporation and Bylaws or other 

evidence of corporate existence; 

certificate of incorporation for other 

than public bodies; evidence of good 

standing from the State or Tribe when 

the corporation has been in existence 1 

year or more; the names and addresses 

of the applicant’s members, directors, 

and officers; and, if another organization 

is a member of the applicantorganization, its name, address, and 

principal business. If the applicant is 

not already formed, attach copies of the 

proposed organizational documents 

demonstrating compliance with 

§ 1944.404(d) of this subpart. 

(3) The organization’s previous year’s 

financial audit, and a current (no more 

than 12 months old), dated and signed 

financial statement showing the 

amounts and specific nature of assets 

and liabilities together with information 

on the repayment schedule and status of 

any debt owed by the applicant. If the 

applicant is being sponsored by another 

organization, the same type of financial 

statement also must be provided by the 

applicant’s sponsor. Newly formed 

organizations must have a sponsor. 

(4) A narrative statement which 

includes information about the amount 

of the grant funds being requested, 

area(s) to be served, need for self-help 

housing in the area(s), the number of 

self-help units proposed to be built, 

rehabilitated or repaired during the 

agreement period, housing conditions of 

low-income families in the area and 

reasons why families need self-help 

assistance. Evidence should be provided 

that the communities support the 

activity and that there are low- income 

families willing to contribute their labor 

in order to obtain adequate housing. 

Evidence of community support may be 

letters of support from local officials, 

individuals and community 

organizations. The pre-application or 

application may contain information 

such as census materials, local planning 

studies, surveys, or other readily 

available information which indicates a 

need in the area for housing of the type 

and cost to be provided by the proposed 

self-help TA program. 

(5) A plan of how the organization 

proposes to reach very low-income 

families. 

(6) A proposed budget which will be 

prepared on Form SF–424A, ‘‘Budget 

Information (Non-Construction 

Programs)’’ and accompanied by the 

detailed budget being used by the 

organization will be completed to 

address applicable assurances as 


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outlined in 2 CFR part 200 as adopted 

by USDA through 2 CFR part 400. State 

and local Government will include an 

assurance that the grantee shall comply 

with all applicable Federal statutes and 

regulations in effect with respect to the 

periods for which it receives grant 

funding. The State and local 

governments shall also comply with 2 

CFR part 200 as adopted by USDA 

through 2 CFR part 400. 

(7) A preliminary survey as to the 

availability of lots and projected cost of 

the sites. 

(8) A list of other activities the 

applicant is engaged in and expects to 

continue, and a statement as to other 

sources of funding and whether it will 

have sufficient funds to assure 

continued operation of the other 

activities for at least the period of the 

agreement. If multi-funded, its cost 

allocation plan or indirect cost rate must 

be part of the pre-application or 

application. 

(9) Whether assistance under 

paragraph (d) of this section is requested 

and a brief narrative identifying the 

need, amount of funds needed, and 

projected time period. 

(b) Pre-application or application 

review. When program funding does not 

allow the Agency to consider preapplication requests the following steps 

will apply to the full application: 

(1) Rural Development, within 30 

days of receipt of the application, Form 

SF–424 ‘‘Application for Federal 

Assistance’’, and all other required 

information and material will complete 

a thorough review for completeness, 

accuracy, and conformance to program 

policy and regulations. Incomplete 

applications will be returned to the 

applicant for completion. The 

Authorized Agency Official in the 

prospective county will be contacted as 

to the need for the program in the 

proposed area and if the necessary 

resources are available to the grantee. 

This will include a discussion of the 

number of 502 and 504 units that will 

need to be committed to the grantee and 

the potential work impact on the office 

during the grant period. If it is 

determined that the Office lacks the 

resources (either personnel or funds) to 

process all loan/grant requests in a 

timely manner, the local office will 

communicate this need to the State 

Office along with a recommended 

solution. (Lack of resources at the local 

level are not grounds to deny a request). 

After the Agency has determined that 

the application is complete and 

accurate, the materials in an applicant 

case file will be assembled and forward 

it to the State Director. The case file, as 

a minimum, must contain the following: 

(i) Form SF–424 ‘‘Application for 

Federal Assistance’’, 

(ii) Documentation required in 

accordance with 7 CFR part 1970, and 

(iii) Eligibility recommendations. 

(2) The State Director may, if needed, 

submit the organizational documents 

with any comments or questions to the 

Office of General Counsel (OGC) for a 

preliminary opinion as to whether the 

applicant is or will be a legal 

organization of the type required by 

these regulations and for advice on any 

other aspects of the preapplication or 

application. 

(3) The State Director, if unable to 

determine eligibility or qualifications 

with the advice of the OGC, may submit 

the preapplication to the National Office 

for review. The preapplication or 

application will contain all memoranda 

from OGC giving the results of its 

review. The State Director will identify 

in the transmittal memorandum to the 

National Office the specific problem and 

will recommend possible solutions and 

any information about the applicant 

which would be helpful to the National 

Office in reaching a decision. 

(4) After an eligibility determination 

has been made, which should be 

completed within 30 days unless OGC 

is involved, the State Director will: 

(i) If the applicant is eligible, contact 

the National Office as to the availability 

of funds or submit the proposal to the 

National Office for authorization. If 

funds are available, the Deputy 

Administrator or designee for Single 

Family Housing will issue a letter of 

conditions that the applicant must meet. 

(ii) If the applicant is determined 

ineligible, the Agency will issue a 

denial letter that will inform the 

applicant that an appeal of the decision 

may be made to the National Appeals 

Division under 7 CFR part 11. 

(c) Self-help technical assistance 

grant predevelopment agreement. If 

funding is available, the applicant 

requested predevelopment assistance, 

and the Agency determines that the 

applicant lacks the financial resources 

to meet the conditions of grant approval, 

a grant can be made for the applicant to 

provide what is required by paragraph 

(d) of this section. Existing grantees 

proposing to operate in an area different 

from the area that they are currently 

funded to operate are eligible for this 

grant. However, this grant is available 

only once for a defined area. This grant 

is available only after the letter of 

conditions has been issued. Denial of 

this assistance is an appealable decision 

under 7 CFR part 11. 

(d) Form SF–424, ‘‘Application for 

Federal Assistance.’’ The applicant will 

submit Form SF–424 ‘‘Application for 

Federal Assistance’’ to the Agency. The 

application should provide a detailed 

proposal of its goals including: 

(1) Names, addresses, number in 

household, and total annual household 

income of families who have been 

contacted by the applicant and are 

interested in participating in a self-help 

housing project. Community 

organizations including minority 

organizations may be used as a source 

of names of people interested in selfhelp housing. 

(2) Proof that the first group of 

prospective participating self-help 

families have qualified for financial 

assistance by the organization or Rural 

Development. 

(3) Evidence that lots are available for 

the groups. 

(4) Detailed cost estimates of houses 

to be built by the mutual self-help 

method. Plans and specifications should 

be submitted with the cost estimates. 

(5) Proposed staffing need, including 

qualifications, experience, proposed 

hiring schedule, and availability of any 

prospective employees. 

(6) Name, address, and official 

position of the applicant’s 

representative or representatives 

authorized to act for the applicant and 

work with Rural Development. 

(7) Budget information including a 

detailed budget for the Grant Agreement 

period based upon the needs outlined in 

the proposal. The detailed budget will 

be attached to a completed Form SF 

424A ‘‘Application for Federal 

Assistance.’’ 

* * * * * 

■ 9. Amend § 1944.411 by revising 

paragraphs (b), (d), (e), (g), and (h) to 

read as follows: 

§ 1944.411 Conditions for approving a 

grant. 

* * * * * 

(b) The applicant has met all of the 

conditions listed in § 1944.410(d) of this 

subpart. 

* * * * * 

(d) A resolution has been adopted by 

the board of directors which authorizes 

the appropriate officer to execute the 

required Grant Agreement and Form RD 

400–4, ‘‘Assurance Agreement.’’ 

(e) The grantee has insurance against 

employee dishonesty and theft. 

* * * * * 

(g) The grantee has established an 

interest-bearing checking account in 

accordance with 2 CFR part 200. 

(h) The grantee has developed a 

membership agreement to be executed 

by the grantee and the self-help 

participants which clearly sets forth 

what is expected of each and has 


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incorporated a construction 

development breakdown negotiated 

with the program office that clearly 

shows what work is expected of the 

participating family. 

■ 10. Revise § 1944.412 to read as 

follows: 

§ 1944.412 Docket preparation. 

When the application and all items 

required for the complete docket have 

been received, the Agency will conduct 

a thorough review to ensure the 

application has been properly and 

accurately prepared and that it includes 

the required dates and signatures. The 

docket items will be assembled in the 

order identified by the checklist 

provided to the applicant by the 

program office. 

■ 11. Revise and republish § 1944.413 to 

read as follows: 

§ 1944.413 Grant approval. 

(a) Approval of grant. Within 30 days 

of receiving a complete application 

including recommendation from the 

T&MA Contractor and State Authorized 

Official, the National Office will: 

(1) Execute and distribute Form RD 

1940–1 ‘‘Request for Obligation of 

Funds.’’ 

(2) Process the obligation of funds and 

issue an approval letter of conditions to 

the state. 

(b) Cancellation of an approved grant. 

An approved grant may be canceled 

before closing if the applicant is no 

longer eligible, the proposal is no longer 

feasible, or the applicant requests 

cancellation. Cancellation will be 

accomplished as follows: 

(1) The State Authorized Agency 

Official will prepare Form RD 1940–10, 

‘‘Cancellation of U.S. Treasury Check 

and/or Obligation,’’ and send it to the 

State Director with the reasons for 

cancellation. If the State Director 

approves the request, Form RD 1940–10 

‘‘Cancellation of U.S. Treasury Check 

and/or Obligation’’ will be returned to 

the National Office for processing. 

(2) The Agency will notify the 

applicant of the cancellation and the 

right to appeal under 7 CFR part 11. If 

the applicant requested the cancellation, 

no appeal rights are provided, but the 

applicant will still be notified of the 

cancellation. 

(c) Disapproval of grant. If a grant is 

disapproved after the docket has been 

developed, the Agency will state the 

reason on the original Form RD 1940– 

1 ‘‘Request for Obligation of Funds’’, or 

in a letter to the applicant with appeal 

rights under 7 CFR part 11. 

■ 12. Revise and republish § 1944.415 to 

read as follows: 

§ 1944.415 Grant approval and other 

approving authorities. 

(a) All application dockets, along with 

the T&MA Contractor and State 

Authorized Agency Official’s 

recommendations must be submitted to 

the National Office for approval. 

(b) The authority to contract for 

services is limited to the Administrator 

of Rural Housing Service (RHS). 

(c) Monthly expenditures of the 

grantee will normally be approved by 

the Housing Program Director unless: 

(1) The grantee operates in only one 

county; in which case the authority may 

be delegated by the Housing Program 

Director. 

(2) The grantee operates in more than 

one county; in which case the State 

Director will designate the approving 

official. 

(3) The grantee operates in more than 

one State, in which case the National 

Office will designate the approving 

official. 

(4) The expenditure is under contract 

authority, in which case the Contracting 

Official Representative will approve the 

monthly expenditure. 

■ 13. Revise and republish § 1944.416 to 

read as follows: 

§ 1944.416 Grant Closing. 

The grant is closed on the date the 

Grant Agreement is executed by the 

applicant and the Agency. Cost may not 

be allocated to, nor may funds be 

advanced prior to the signing of the 

Agreement. The State Director or 

designee is authorized to execute the 

agreement on behalf of the Agency. 

Person(s) authorized by resolution may 

sign for the applicant. 

■ 14. Revise and republish § 1944.417 to 

read as follows: 

§ 1944.417 Servicing actions after grant 

closing. 

The Agency has a responsibility to 

help the grantee be successful and avoid 

cases of fraud and abuse. Servicing 

actions also include correlating 

activities between the grantee and 

Agency to the benefit of the 

participating families. The amount of 

servicing actions needed will vary in 

accordance with the experience of the 

grantee, but as minimum the following 

actions are required: 

(a) As needed, but no more than 

Monthly, the grantee will provide the 

Agency with a request for additional 

funds on Form SF–270, ‘‘Request for 

Advance or Reimbursement,’’ and must 

be accompanied by a working budget. 

This request need only show the 

amount of funds used during the 

previous month, amount of unspent 

funds, projected need for the next 30 

days, and written justification if the 

request exceeds the projected need for 

the next 30 days. Upon receipt of the 

grantee’s request, the Agency will: 

(1) If the request appears to be in 

order, process the request and make the 

payment by automatic transfer. 

(2) If the request does not appear to 

be in order, immediately contact the 

grantee to resolve the problem. After the 

contact: 

(i) If the grantee’s explanation is 

acceptable, process the request, or 

(ii) If the grantee’s explanation is not 

acceptable, immediately notify the 

grantee and order the amount of funds 

that appear reasonable for the next 30 

days. Unapproved funds that are later 

approved will be added to the next 

month’s request. 

(b) Quarterly, after the grant start date, 

the grantee will submit a progress report 

to the Authorized Agency Official 

which will verify its progress toward 

meeting the objectives stated in the 

Agreement and the application. A 

quarterly meeting will be scheduled 

between the grantee, T&MA Contractor, 

and Agency and will be used as an 

opportunity to review progress to date 

and make necessary adjustments for the 

future. More frequent meetings may be 

required if the grantee was previously 

identified as a High Risk grantee or will 

be identified as a High Risk grantee at 

this time. As part of the quarterly 

meeting the following will be done: 

(1) The quarterly report and other 

information will be evaluated to 

determine progress made to date. The 

Agency will comment on the quarterly 

report as to whether the grantee is ahead 

or behind schedule in each of the 

following areas: 

(i) Assisting the projected number of 

families. 

(ii) Serving very low-income 

applicants. Is the grantee reaching a 

minimum of very low-income families 

as required in 42 U.S.C. 1472? 

(iii) Equivalent units (EUs). Is the 

number of EUs completed 

representative of lapse of time of the 

grant? For example, if 25 percent of the 

grant period has elapsed, are 25 percent 

of the number of EUs completed? 

(iv) Labor contributions by the family. 

Are the families working together and 

are they completing the labor tasks as 

established on the construction or 

rehabilitation development breakdown? 

(v) Meeting the approved sweat equity 

(new construction), or family cost 

savings goal. Are the families receiving 

the amount of sweat equity or costing 

savings as described in the application? 

(vi) Meeting other objectives in the 

Agreement. Is the grantee submitting 

timely quarterly reports, audits, or other 


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required information. Are their issues 

with the construction/rehabilitation 

projects or loan/grant packaging? 

(2) The Agency will determine if the 

grantee is progressing satisfactorily. 

However, if the Agency determines the 

grantee is not performing satisfactorily, 

the Agency will notify the grantee that 

it has been classified a ‘‘High Risk’’ 

grantee. The notice will specify the 

deficiencies and inform the grantee of 

proposed remedies for noncompliance. 

The notice will advise the grantee that 

the Agency is available to assist and 

provide the name and address of an 

organization that is under contract with 

the Agency to assist them. The State 

Office will forward a copy of the report 

with comments, and the reasons for 

classifying them as ‘‘High Risk’’ to the 

National Office. When the period of 

time provided for corrective action has 

expired, an assessment will be made of 

the progress by the grantee toward 

correcting the situation. If the Agency 

determines: 

(i) The situation has been corrected or 

reasonable progress has been made 

toward correcting the situation, then the 

‘‘High Risk’’ status will be lifted, and 

the grantee so notified. 

(ii) The situation has not been 

corrected, but it is correctable if 

additional time is granted, then an 

extension will be issued. 

(iii) The situation has not been 

corrected and it is unlikely to be 

corrected if given additional time, then 

the grant will be terminated under 

§ 1944.426(b)(1) of this subpart. 

■ 15. Revise and republish § 1944.419 to 

read as follows: 

§ 1944.419 Final grantee evaluation. 

At the end of the grant period, an 

evaluation of the grantee will be 

conducted by the Agency. The Agency 

may use employees or an organization 

under contract to provide the 

evaluation. The evaluation is to 

determine how successful the grantee 

was in meeting goals and objectives as 

defined in the agreement, application, 

this regulation, and any amendments. 

(a) This is a quantitative evaluation of 

the grantee to determine if it met its 

goals in: 

(1) Assisting the projected number of 

families in obtaining adequate housing 

as proposed by the organization in the 

approved application. 

(2) Meeting the goal of assisting very 

low-income families stated in section 

502 of the Housing Act of 1949, and in 

§ 1944.401 of this subpart. 

(3) Meeting the Family Labor 

Contribution requirement specified in 

under § 1944.403(s) of this subpart, as 

applicable. 

(4) Keeping costs within the approved 

budget in the application. 

(5) Meeting the approved sweat equity 

(new construction), or family cost 

savings goal (rehabilitation) stated in 

section § 1944.403 of this subpart. 

(6) Meeting other objectives in the 

Grant Agreement including, but not 

limited to timely reporting, construction 

standards, loan packaging standards, 

etc. 

(b) The evaluation is a narrative 

addressed to the grantee and written in 

3 parts, namely, findings, 

recommendations, and an overall rating. 

The rating will be either unacceptable, 

acceptable, or outstanding, as follows: 

(1) Outstanding if the grantee met or 

exceeded all of the goals in paragraph 

(a) of this section. 

(2) Acceptable if the grantee met or 

exceeded three of the grant goals. 

(3) Unacceptable if the grantee failed 

to obtain an acceptable rating. An 

unacceptable rating may cause the 

organization to be ineligible for grant 

assistance should this say the following 

the proceeding 2 years. 

(c) After the State Director has 

reviewed the evaluation, a copy will be 

mailed to the grantee. The grantee may 

request a review of the evaluation with 

the Agency. This review is for 

clarification of the material and to 

dispute the findings if they are known 

to be wrong. The rating is not open for 

discussion except to the extent it can be 

proven that the findings do not support 

the rating. If this is the case, the Agency 

may amend the rating. 

■ 16. Revise and republish § 1944.420 to 

read as follows: 

§ 1944.420 Extension or revisions of the 

grant agreement. 

The State Director or designee may 

execute an extension or revision, at any 

time during the grant period, provided: 

(a) The extension period is 

reasonable. The extension period is 

reasonable if the goals can be completed 

within the timeline without additional 

cost being incurred. Typically, an 

reasonable extension will not exceed 

two years. 

(b) The need for the extension is 

clearly justified. 

(c) If additional funds are needed, a 

revised budget is submitted with 

complete justification, and 

(d) The grantee is within the 

guidelines in § 1944.407 of this subpart 

or the Agency determines that the best 

interest of the Government will be 

served by the extension. 

■ 17. Revise and republish § 1944.421 to 

read as follows: 

§ 1944.421 Refunding of an existing 

grantee. 

Grantees wishing to continue with 

self-help efforts after the end of the 

current grant plus any extensions 

should file Form SF–424 ‘‘Application 

for Federal Assistance,’’ in accordance 

with § 1944.410. It is recommended that 

it be filed at least 6 months before the 

end of the current grant period. Funds 

from the existing grant may be used to 

meet the conditions of a new grant and 

equivalent units may be split between 

two grant cycles. In addition to meeting 

the conditions of an applicant as 

defined in § 1944.411 of this subpart, 

the grantee must also have received or 

will receive an acceptable rating on its 

current grant unless an exception is 

granted by the Agency. The Agency may 

grant an exception to the rating if it is 

determined that the reasons causing the 

previous unacceptable rating have been 

removed or will be removed with the 

approval of this grant. 

■ 18. Revise and republish § 1944.422 to 

read as follows: 

§ 1944.422 Audit and other report 

requirements. 

The grantee must submit an audit to 

the Agency annually (or biennially if a 

State or local government with authority 

to do a less frequent audit requests it) 

and the earlier of 30 calendar days after 

receipt of the auditor’s report or nine 

months after the end of the grantee’s 

audit period. The audit, conducted by 

the grantee’s auditors, is to be 

performed in accordance with Generally 

Accepted Government Auditing 

Standards (GAGAS), using the 

publication ‘‘Standards for Audit of 

Governmental Organizations, Programs, 

Activities and Functions’’ developed by 

the Comptroller General of the United 

States in 1981, and any subsequent 

revisions. In addition, the audits are 

also to be performed in accordance with 

2 CFR part 200, as adopted by USDA 

through 2 CFR part 400, and Agency 

requirements as specified in this 

subpart. 

Audits of borrower loan funds will be 

required when the grantee manages 

these funds during construction in a 

supervised or custodial bank account. 

These funds are not awarded to the 

grantee; therefore, they should not be 

shown on a Schedule of Federal Awards 

nor have the same auditing 

requirements. Instead, an agreed upon 

procedures audit that, at a minimum, 

includes a review of the draw down 

request to ensure charges listed can be 

traced back to source documents, and 

reconciliation of the bank account 

record. The number of borrower 

accounts audited will be determined by 


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the auditor. In incidences where it is 

difficult to determine the appropriate 

number of accounts to be audited, 

auditors should be authorized by the 

State Director to audit the lesser of 10 

loans or 10 percent of total loans. 

■ 19. Revise and republish § 1944.423 to 

read as follows: 

§ 1944.423 Loan/grant packaging and 

application submittal. 

A grantee is required to assist 502/504 

program applicants in submitting their 

application for a loan and/or grant. 

Loan/grant packaging will be performed 

in accordance with 7 CFR part 3550; 

therefore, it is important that the grantee 

be trained at an early date. Typically, 

this training should take place before 

the first applications are submitted to 

the Agency Office and before the grant 

is closed. A grantee should become very 

knowledgeable of the Agency’s 

eligibility requirements but must 

understand that only the Agency can 

approve or deny an applicant assistance. 

The Grantee must work cooperatively 

with the Agency in the loan approval 

process and must work within the 

regulations for the program and 

recognize the Agency’s ultimate 

decision-making authority to approve or 

deny loans. 

However, the grantee may ask for 

clarification that may be helpful in 

working with future applicants. Grant 

funds may not be used to pay any 

expense in connection with an appeal 

that the applicant may file or pursue. 

■ 20. Revise and republish § 1944.424 to 

read as follows: 

§ 1944.424 Dwelling construction 

standards. 

All construction will be performed in 

accordance with subpart A of part 1924 

of this chapter. The planned work must 

meet the building requirements of 7 CFR 

part 3550 and meet the Development 

Standards as defined in subpart A of 

part 1924 of this chapter and State, 

Tribal, or local requirements. Sites and 

site developments must conform to the 

requirements of subpart C of part 1924 

of this chapter. 

■ 21. Revise and republish § 1944.425 to 

read as follows: 

§ 1944.425 Handling and accounting for 

borrower loan funds. 

The Agency is responsible for 

administering borrower loan funds 

during the construction phases. The 

extent of grantee involvement will 

depend on the experience of the grantee 

and the amount of authority delegated 

to them by the Authorized Agency 

Official in accordance with Agency 

guidelines available in any Rural 

Development Office. 

■ 22. Revise and republish § 1944.426 to 

read as follows: 

§ 1944.426 Grant closeout. 

(a) Grant purposes completed. 

Promptly after the date of completion, 

grant closeout actions will be taken to 

allow the orderly discontinuance of 

grantee activity. 

(1) The grantee will immediately 

refund to the Agency any balance of 

grant funds that are not committed for 

the payment of authorized expenses. 

(2) The grantee will furnish Form SF– 

425, ‘‘Financial Status Report’’ and 

detailed final budget to the Agency 

within 90 days after the date of 

completion of the grant. All other 

financial, performance, and other 

reports required as a condition of the 

grant also will be completed. 

(3) After the grant closeout, the 

Agency retains the right to recover any 

disallowed costs. 7 CFR part 3550 will 

be used by the Agency to recover any 

unauthorized expenditures. 

(4) The grantee will provide the 

Agency an audit conforming to those 

requirements established in this part, 

including audits of self-help borrower 

accounts. 

(5) Upon request from the recipient, 

any allowable reimbursable cost not 

covered by previous payments shall be 

promptly paid by the Agency. 

(b) Grant purposes not completed. 

(1) Notification of termination. The 

State Director will promptly notify the 

grantee and the National Office in 

writing of the termination action 

including the specific reasons for the 

decision and the effective date of the 

termination. The notification to the 

grantee will specify that if the grantee 

believes the reason for the proposed 

termination can be resolved, the grantee 

should, within 15 calendar days of the 

date of this notification, contact the 

Agency in writing requesting a meeting 

for further consideration. The meeting 

will be an informal proceeding at which 

the grantee will be given the 

opportunity to provide whatever 

additional information it believes 

should be considered in reaching a 

decision concerning the case. The 

grantee may have an attorney, or any 

other person present at the meeting if 

desired. Within 30 calendar days of the 

meeting, the Agency will determine 

what action to take. 

(i) If the Agency determines that 

termination is not necessary, the grantee 

will be informed in writing. 

(ii) If the Agency determines that 

termination of the grant is appropriate, 

the grantee will be notified in 

accordance with 7 CFR part 11. 

(2) National Office review. 

(i) Upon receipt of a request from a 

grantee that the decision of the State 

Director be reconsidered, the National 

Office will make a preliminary decision 

concerning the continued funding of the 

grantee during the appeal period. 

Written notification of the decision will 

be given to the State Director and 

grantee. 

(ii) The National Office will then 

obtain a comprehensive report on the 

matter from the State Office. This 

information will be considered together 

with any additional information that 

may be provided by the grantee. 

(c) Grant suspension. When the 

grantee has failed to comply with the 

terms of the agreement, the Agency will 

consider termination or suspension of 

the grant usually only after a Grantee 

has been classified as ‘‘high risk’’ in 

accordance with 7 CFR 1944.417(b)(2). 

When the Agency determines that the 

grantee has a reasonable potential to 

correct deficiencies the grant may be 

suspended. The suspension will adhere 

to 2 CFR part 200 as adopted by USDA 

through 2 CFR part 400. The grantee 

will be notified of the grant suspension 

in writing by the Agency. The Agency 

will promptly inform the grantee of its 

rights to appeal the decision in 

accordance with 7 CFR part 11. 

(d) Grant termination. The State 

Director may terminate the grant 

agreement whenever Rural Development 

determines that the grantee has failed to 

comply with terms of the Agreement. 

The reasons for termination may 

include, but are not limited to, such 

problems as listed in paragraph (e)(3)(i) 

of the Grant Agreement. The State 

Director may also withhold further 

disbursement of grant funds and 

prohibit the grantee from incurring 

additional obligations of grant funds 

with written approval of the National 

Office. Rural Development will allow all 

necessary and proper costs which 

grantee could not reasonably avoid. 

(1) Termination for cause. The grant 

agreement may be terminated in whole, 

or in part, at any time before date of 

completion, whenever Rural 

Development determines that the 

grantee has failed to comply with terms 

of the Agreement. The State Director 

will notify the grantee in writing giving 

the reasons for the action and inform the 

grantee of its rights of appeal by use of 

Exhibit B–3 to Subpart B of part 1900 

‘‘Letter for Notifying Applicants, 

Lender, Holders and Borrowers of 

Adverse Decisions Where the Decision 

Involves an Appraisal (Not To Be Used 

in Cases Involving Farmer Program 

Primary Loan Servicing Actions.)’’ 

(2) Termination for convenience. RHS, 

or its successor agency, or the grantee 


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Proposed Rules 96143 

may terminate the grant in whole, or in 

part, when both parties agree that the 

continuation of the grant would not 

produce beneficial results. The two 

parties will agree in writing to the 

termination conditions including the 

effective date. No notice of rights of 

appeal will be issued by Rural 

Development. 

■ 23. Add § 1944.428 to read as follows: 

§ 1944.428 Site Loan to Technical 

Assistance Grantees 

The objective of a Site Option (SO) 

loan under Section 523(b)(1)(B) of Title 

V of the Housing Act of 1949 is to 

enable technical assistance (TA) 

grantees or contractors to establish 

revolving fund accounts to obtain 

options on land needed to make sites 

available to families that will build their 

own homes by the self-help method. 

Loans may be made only as necessary to 

enable eligible applicants to establish 

revolving accounts with which to obtain 

options on land that will be needed as 

building sites by self-help families 

participating in the TA self-help 

housing program. 

To be eligible for an SO loan, the 

applicant must be a TA grantee that is 

currently operating in a satisfactory 

manner under a TA grant agreement. If 

the SO loan applicant has applied for 

TA funds but is not already a TA 

grantee and it appears that the TA grant 

will be made, the SO loan may be 

approved but not closed until the TA 

grant is closed. Applications will be 

processed, approved or disapproved, 

and closed in accordance with 7 CFR 

1822, subpart G, 1822.271 through 

1822.275 and adhere to the special 

requirements for RHS section 523 loans 

at 7 CFR 1822.278. 

■ 24. Revise and republish § 1944.450 to 

read as follows: 

§ 1944.450 OMB control number. 

The information collection 

requirements contained in this 

regulation has been approved by OMB 

and have been assigned OMB control 

number 0575–0043. This proposed 

rulemaking contains new reporting 

requirements that would require 

approval under the Paperwork 

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

chapter 35). 

Subpart I [Amended] 

■ 25. Amend Subpart I by removing 

Exhibits A through F. 

Joaquin Altoro, 

Administrator, Rural Housing Service. 

[FR Doc. 2024–28032 Filed 12–3–24; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–116787–23] 

RIN 1545–BR31 

Definition of the Term ‘‘Coverage 

Month’’ for Computing the Premium 

Tax Credit; Hearing Cancellation 

AGENCY: Internal Revenue Service (IRS), 

Treasury 

ACTION: Cancellation of a notice of 

public hearing on a proposed 

rulemaking and notice of public 

hearing. 

SUMMARY: This document cancels a 

public hearing on proposed regulations 

that would amend the definition of 

‘‘coverage month’’ and amend certain 

other rules in existing income tax 

regulations regarding the computation 

of an individual taxpayer’s premium tax 

credit (PTC). 

DATES: The public hearing scheduled for 

December 13, 2024, at 10 a.m. ET is 

cancelled. 

FOR FURTHER INFORMATION CONTACT: 

Oluwafunmilayo Taylor of the 

Publications and Regulations Section, 

Associate Chief Counsel (Procedure and 

Administration) at (202) 317–6901 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: A notice 

of proposed rulemaking and a notice of 

public hearing that appeared in the 

Federal Register on September 17, 2024 

(89 FR 75984) announced that a public 

hearing being held in person and by 

teleconference was scheduled for 

December 13, 2024, at 10 a.m. ET. The 

subject of the public hearing is under 26 

CFR part 1. 

The public comment period for these 

regulations expired on November 1, 

2024. The notice of proposed 

rulemaking and notice of public hearing 

instructed those interested in testifying 

at the public hearing to submit a request 

to testify and an outline of the topics to 

be addressed. We did not receive a 

request to testify at the Public Hearing. 

Therefore, the public hearing scheduled 

for December 13, 2024, at 10 a.m. ET is 

cancelled. 

Oluwafunmilayo A. Taylor, 

Section Chief, Publications and Regulations 

Section, Associate Chief Counsel, (Procedure 

& Administration). 

[FR Doc. 2024–28358 Filed 12–3–24; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–112129–23] 

RIN 1545–BQ84 

Corporate Alternative Minimum Tax 

Applicable After 2022 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking; 

extension of comment period. 

SUMMARY: This document extends the 

period to submit comments for a notice 

of proposed rulemaking (REG–112129– 

23), while retaining the deadline to 

submit requests to speak at, and outlines 

for, the public hearing for the proposed 

rulemaking which was published in the 

Federal Register on Friday, September 

13, 2024. The proposed regulations 

relate to the corporate alternative 

minimum tax, which is imposed on the 

adjusted financial statement income of 

certain corporations for applicable 

taxable years beginning after 2022. 

DATES: The comment period to submit 

written or electronic comments for the 

notice of proposed rulemaking 

published on September 13, 2024 (89 FR 

75062) is extended from December 12, 

2024, to Thursday, January 16, 2025. 

The deadline to request to speak at the 

public hearing and the deadline for 

submitting outlines for speaking at the 

public hearing, as stated in the notice of 

proposed rulemaking (REG–112129–23) 

published on September 13, 2024 (89 FR 

75062) remains December 12, 2024. The 

IRS must receive speakers’ outlines of 

the topics to be discussed at the public 

hearing by December 12, 2024. If no 

outlines are received by December 12, 

2024, the public hearing will be 

cancelled. 

ADDRESSES: Commenters are strongly 

encouraged to submit public comments 

electronically via the Federal 

eRulemaking Portal at https://

www.regulations.gov (indicate IRS and 

REG–112129–23) by following the 

online instructions for submitting 

comments. Once submitted to the 

Federal eRulemaking Portal, comments 

cannot be edited or withdrawn. The 

Department of the Treasury (Treasury 

Department) and the IRS will publish 

for public availability any comments 

submitted to the IRS’s public docket. 

Send paper submissions to: 

CC:PA:01:PR (REG–112129–23), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. 


ddrumheller on DSK120RN23PROD with PROPOSALS1