19510 Federal Register / Vol. 74, No. 81 / Wednesday, April 29, 2009 / Notices 

producers and three industry 

representatives from the States specified 

in each of the following producing 

regions: (a) Southeast (Alabama, 

Georgia, and Florida); (b) Southwest 

(Texas, Oklahoma, and New Mexico); 

and (c) Virginia/Carolina (Virginia and 

North Carolina). 

For the initial appointments, the Farm 

Bill required the Secretary to stagger the 

terms of the members so that: (a) One 

producer member and peanut industry 

member from each peanut producing 

region serves a one-year term; (b) one 

producer member and peanut industry 

member from each peanut producing 

region serves a two-year term; and (c) 

one producer member and peanut 

industry member from each peanut 

producing region serves a three-year 

term. The term ‘‘peanut industry 

representatives’’ includes, but is not 

limited to, representatives of shellers, 

manufacturers, buying points, marketing 

associations and marketing 

cooperatives. The Farm Bill exempted 

the appointment of the Board from the 

requirements of the Federal Advisory 

Committee Act. The initial Board was 

appointed by the Secretary and 

announced on December 5, 2002. 

USDA invites those individuals, 

organizations, and groups affiliated with 

the categories listed above to nominate 

individuals for membership on the 

Board. Nominees sought by this action 

would fill two currently vacant industry 

representative positions for the 

remainder of terms of office ending June 

30, 2011, one from the Southeast and 

one from the Virginia-Carolina peanut 

producing regions. Nominees sought by 

this action would also replace six 

additional positions, one producer and 

one industry member from each peanut 

producing region who served for the 

term of office that ends June 30, 2009. 

New members filling the two current 

vacancies would serve the remaining 3- 

year term of office ending June 30, 2011. 

New members filling the positions 

expiring on June 30, 2009, would serve 

for a 3-year term of office ending June 

30, 2012. 

Nominees should complete a Peanut 

Standards Board Background 

Information form and submit it to Mrs. 

Clark at the address provided in the 

‘‘Addresses’’ section above. Copies of 

this form may be obtained at the 

Internet site: http://www.ams.usda.gov/ 

fv (below the ‘‘See Also’’ section, select 

‘‘More’’ then select ‘‘Peanut Quality 

Standards’’ and below ‘‘News’’ select 

Background Information Form), or from 

Mrs. Clark. USDA seeks a diverse group 

of members representing the peanut 

industry. 

Equal opportunity practices will be 

followed in all appointments to the 

Board in accordance with USDA 

policies. To ensure that the 

recommendations of the Board have 

taken into account the needs of the 

diverse groups within the peanut 

industry, membership shall include, to 

the extent practicable, individuals with 

demonstrated abilities to represent 

minorities, women, persons with 

disabilities, and limited resource 

agriculture producers. 

Authority: 7 U.S.C. 7958. 

Dated: April 20, 2009. 

Robert C. Keeney, 

Acting Associate Administrator. 

[FR Doc. E9–9377 Filed 4–28–09; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

Notice of Funding Availability: Rural 

Development Voucher Program 

AGENCY: Rural Housing Service, USDA. 

ACTION: Notice of Rural Development 

Voucher Program Availability. 

SUMMARY: This notice informs the public 

that the U.S. Department of Agriculture 

(USDA) has established a demonstration 

Rural Development Voucher Program, as 

authorized under Section 542 of the 

Housing Act of 1949, as amended, 

(without regard to Section 542(b)), 

which is being administered by USDA. 

This notice informs the public that 

funding is now available for the Rural 

Development voucher program. The 

notice also sets forth the general policies 

and procedures for use of these 

vouchers. Rural Development Vouchers 

are only available to tenants of Rural 

Development-financed multifamily 

properties where the owner pays off the 

loan, either through prepayment or a 

foreclosure action prior to the loan’s 

maturity date. 

DATES: April 29, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Stephanie B.M. White, Director, MultiFamily Housing Portfolio Management 

Division, Rural Development, U.S. 

Department of Agriculture, 1400 

Independence Avenue, SW., STOP 

0782, Washington, DC 20250–0782, 

telephone (202) 720–1615. Persons with 

hearing or speech impairments may 

access this number via TTY by calling 

the toll-free Federal Information Relay 

Service at 800–877–8339. 

SUPPLEMENTARY INFORMATION: 

Background 

Section 106 of the Consolidated 

Security, Disaster Assistance and 

Continuing Appropriations Act, 2009 

(Pub. L. 110–329) (September 30, 2008) 

(Consolidated Appropriations Act, 

2009) continued the level of funding 

and conditions until the earlier of an 

applicable appropriation act for fiscal 

year 2009 or March 6, 2009. 

Subsequently, the Omnibus 

Appropriations Act, 2009 (Pub. L. 111– 

8) was enacted on March 11, 2009, and 

appropriated $4,965,000 to USDA for 

the Rural Development Voucher 

Program as authorized under Section 

542 of the Housing Act of 1949, as 

amended, 42 U.S.C. 1471 et seq. 

(without regard to Section 542(b)). 

The Omnibus Appropriations Act, 

2009 provided that the Secretary of the 

U.S. Department of Agriculture shall 

carry out the Rural Development 

Voucher Program as follows: 

That of the funds made available under 

this heading, $4,965,000 shall be available for 

rural housing vouchers to any low-income 

household (including those not receiving 

Rental Assistance) residing in a property 

financed with a Section 515 loan which has 

been prepaid after September 30, 2005: 

Provided further, That the amount of such 

voucher shall be the difference between 

comparable market rent for the Section 515 

unit and the tenant paid rent for such unit: 

Provided further, That funds made available 

for such vouchers shall be subject to the 

availability of annual appropriations: 

Provided further, That the Secretary shall, to 

the maximum extent practicable, administer 

such vouchers with current regulations and 

administrative guidance applicable to 

Section 8 housing vouchers administered by 

the Secretary of the Department of Housing 

and Urban Development (HUD) (including 

the ability to pay administrative costs related 

to delivery of the voucher funds). 

This notice outlines the process for 

providing voucher assistance to the 

eligible impacted families when an 

owner prepays a Section 515 loan or 

Agency action results in a foreclosure 

after September 30, 2005. 

Design Features of the Rural 

Development Voucher Program 

This section sets forth the design 

features of the Rural Development 

Voucher Program, including the 

eligibility of families, the inspection of 

the units, and the calculation of the 

subsidy amount. 

Rural Development vouchers under 

this part are administered by the Rural 

Housing Service; an Agency under the 

Rural Development mission area, in 

accordance with requirements set forth 

in this Notice of Funds Availability 

(NOFA) and further explained in, ‘‘The 

Rural Development Voucher Program 


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Guide,’’ which can be obtained by 

contacting any Rural Development 

office. Contact information for Rural 

Development offices can be found at 

http://offices.sc.egov.usda.gov/locator/ 

app. These requirements are generally 

based on the housing choice voucher 

program regulations of HUD set forth at 

24 CFR part 982, unless otherwise noted 

by this Notice. 

The Rural Development Voucher 

Program is intended to offer protection 

to eligible multifamily housing tenants 

in properties financed through Rural 

Development’s Section 515 Rural Rental 

Housing Program (515 property) who 

may be subject to economic hardship 

through prepayment of the Rural 

Development mortgage. When the 

owner of a 515 property pays off the 

loan prior to the loan’s maturity date 

(either through prepayment or 

foreclosure action), the Rural 

Development affordable housing 

requirements and rental assistance 

subsidies generally cease to exist. Rents 

may increase, thereby making the 

housing unaffordable to tenants. When 

a prepayment occurs, whether or not the 

rent increases, the tenant will be 

responsible for the full payment of rent. 

The Rural Development Voucher 

Program applies to any 515 property 

where the mortgage is paid off prior to 

the maturity date in the promissory note 

and the payment occurs after September 

30, 2005. This includes foreclosed 

properties. Tenants in foreclosed 

properties are eligible for a Rural 

Development voucher under the same 

conditions as properties that go through 

the standard prepayment process. 

The Rural Development voucher will 

help tenants by providing an annual 

rental subsidy, renewable on the terms 

and conditions set forth herein and 

subject to the availability of funds, that 

will supplement the tenant’s rent 

payment. This program enables a tenant 

to make an informed decision about 

remaining in the property, moving to a 

new property, or obtaining other 

financial housing assistance. Lowincome tenants in the prepaying 

property are eligible to receive a 

voucher to use at their current rental 

property, or take to any other rental unit 

in the United States and its territories. 

There are some general limitations on 

the use of a voucher. For instance, the 

rental unit must pass a Rural 

Development health and safety 

inspection, and the owner must be 

willing to accept a Rural Development 

voucher. Also, Rural Development 

vouchers will not be used for units in 

subsidized housing like Section 8 and 

public housing where two housing 

subsidies would result. The Rural 

Development voucher may be used for 

rental units in other properties financed 

by Rural Development, but it will not be 

used in combination with the Rural 

Development Rental Assistance 

program. The Rural Development 

voucher may not be used for the 

purchase of a home. 

1. Family Eligibility 

In order to be eligible for the Rural 

Development voucher under this notice, 

a family must (a) be residing in the 

Section 515 project on the date of the 

prepayment of the Section 515 loan or 

upon foreclosure by Rural Development; 

(b) the date of the prepayment or 

foreclosure must be after September 30, 

2005; (c) as required by 42 U.S.C. 1436a 

the tenant must be a citizen, United 

States non-citizen national or qualified 

alien and will so provide proof of 

citizenship to Rural Development using 

one of the following: 

Copy of U.S. Passport (unexpired or 

expired). 

Copy of U.S. Military ID card 

(unexpired). 

Copy of U.S. Military dependent’s ID 

card (unexpired). 

Copy of a birth certificate issued by a 

state, county, municipal authority, or 

outlying possession of the United 

States bearing an official seal. 

Copy of Certificate of U.S. Citizenship 

(Form N–560 or N–561). 

Copy of Certificate of Naturalization 

(Form N–550 or N–570). 

Copy of U.S. Citizen ID card (Form 1– 

197). 

Copy of ID card for use of Resident 

Citizen in the United States (Form I– 

179). 

Copy of Permanent Resident Card or 

Alien Registration Receipt Card with 

photograph (Form I–151 or I–1551). 

Copy of Certification of Birth Abroad 

issued by the Department of State 

(Form FS–545 or Form DS–1350), 

and; (d) the family must be a lowincome family on the date of the 

prepayment or foreclosure. A lowincome family is a family whose 

annual income does not exceed 80 

percent of the family median income 

for the area as defined by HUD. HUD’s 

definition of median income can be 

found at http://www.huduser.org/ 

datasets/il/FY2008index_mfi.html. 

During the prepayment or foreclosure 

process, Rural Development will 

evaluate every tenant family to 

determine if it is low income. If Rural 

Development determines a family is 

low-income, immediately prior to the 

foreclosure or prepayment Rural 

Development will send the primary 

tenant a letter offering the family a 

voucher and will enclose a Voucher 

Obligation Request Form. If the family 

wants to participate in the Rural 

Development Voucher Program, the 

tenant has 10 months from the date of 

prepayment or foreclosure to return the 

Voucher Obligation Request Form to the 

local Rural Development office. 

If Rural Development makes a 

determination that the tenant is 

ineligible for any reason, Rural 

Development will provide 

administrative appeal rights pursuant to 

7 CFR part 11. 

2. Obtaining a Voucher 

Rural Development will monitor the 

prepayment request process or 

foreclosure process. During the 

prepayment request process or 

foreclosure process, Rural Development 

will send all tenants letters notifying 

them of the voucher program. As part of 

prepayment or foreclosure Rural 

Development will obtain a rent 

comparability study for the property 

ninety days prior to the date of 

prepayment or foreclosure. The rent 

comparability study will be used to 

calculate the amount of voucher each 

tenant is entitled to receive. All tenants 

will be notified of if they are eligible 

and their voucher calculations by Rural 

Development immediately prior to the 

date of prepayment or foreclosure. As 

previously stated, such notice will 

include a description of the Rural 

Development Voucher Program, a 

Voucher Obligation Request Form, and 

letter from Rural Development offering 

the tenant participation in Rural 

Development Voucher Program and 

Form HUD 52517, ‘‘Request for Tenancy 

Approval.’’ Once the primary tenant 

returns the Voucher Obligation Request 

Form and proof of citizenship to Rural 

Development office, a voucher will be 

issued within 30 days. All information 

necessary for a housing search, 

explanations of unit acceptability, and 

Rural Development contact information 

will be provided by Rural Development 

to the tenant at the time the voucher 

Obligation Form and proof of 

citizenship is received. 

The family receiving a Rural 

Development voucher has an initial 

search period of 60 calendar days from 

receipt of the voucher to find a housing 

unit. At its discretion, Rural 

Development may grant one or more 

extensions of the initial search period 

for up to an additional 60 days. The 

maximum voucher search period for any 

family participating in the Rural 

Development Voucher Program is 120 

days. If the family needs and requests an 

extension of the initial search period as 

a reasonable accommodation to make 


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19512 Federal Register / Vol. 74, No. 81 / Wednesday, April 29, 2009 / Notices 

the program accessible to a disabled 

family member, Rural Development will 

extend the voucher search period. If the 

Rural Development voucher remains 

unused after a period of 150 days from 

original issuance, the Rural 

Development voucher will become void, 

any funding will be cancelled, and the 

tenant will no longer be eligible to 

receive a Rural Development voucher. 

3. Initial Lease Term 

The initial lease term for the housing 

unit where the family wishes to use the 

Rural Development voucher must be for 

1 year. 

4. Inspection of Units and Unit 

Approval 

Rural Development will inspect and 

determine if the housing standard is 

acceptable within 30 days of Rural 

Development receipt of the HUD Form 

52517. The inspection standards 

currently in effect for the Rural 

Development Section 515 Multi-Family 

Housing Program apply to the Rural 

Development Voucher Program. Rural 

Development must inspect the unit and 

ensure that the unit meets the housing 

inspection standards of the program at 

7 CFR 3560.103. Under no 

circumstances may Rural Development 

make voucher rental payments for any 

period of time prior to the date that 

Rural Development physically inspects 

the unit and determines the unit meets 

the housing inspection standards. In the 

case of properties financed by Rural 

Development under the Section 515 

program, Rural Development may 

accept the results of physical 

inspections performed no more than one 

year prior to the date of receipt by Rural 

Development of Form HUD 52517, in 

order to make determinations on 

acceptable housing standards. Before 

approving a family’s assisted tenancy or 

executing a Housing Assistance 

Payments contract, Rural Development 

must determine that the following 

conditions are met: (1) The unit has 

been inspected by Rural Development 

and passes the housing standards 

inspection or has otherwise been found 

acceptable as noted previously; and (2) 

the lease includes the HUD Tenancy 

Addendum. A copy of the HUD 

Tenancy Addendum will be provided 

when the tenant is informed he/she is 

eligible for a voucher. 

Once the conditions in the above 

paragraph are met, Rural Development 

will approve the unit for leasing. Rural 

Development will then execute with the 

owner a Housing Assistance Payments 

(HAP) contract, Form HUD–52641. The 

HAP contract must be executed before 

Rural Development voucher payments 

can be made. Rural Development will 

use its best efforts to execute the HAP 

contract on behalf of the family before 

the beginning of the lease term. In the 

event that this does not occur, the HAP 

contract may be executed up to 60 

calendar days after the beginning of the 

lease term. If the HAP contract is 

executed during this 60-day period, 

Rural Development will pay retroactive 

housing assistance payments to cover 

the portion of the approved lease term 

before execution of the HAP contract. 

Any HAP contract executed after the 60- 

day period is untimely, and Rural 

Development will not pay any housing 

assistance payment to the owner for that 

period. In establishing the effective date 

of the voucher HAP contracts, Rural 

Development may not execute a housing 

assistance payments contract that is 

effective prior to the Section 515 loan 

prepayment. 

5. Subsidy Calculations for Rural 

Development Vouchers 

As stated earlier, if eligible the tenant 

will be notified of the voucher amount 

immediately prior to prepayment or 

foreclosure. The monthly housing 

assistance payment for the Rural 

Development Voucher Program is the 

difference between the comparable 

market rent for the family’s former 

Section 515 unit and the tenant’s rent 

contribution on the date of the 

prepayment. The tenant can appeal 

Rural Development’s determination of 

the voucher amount through USDA’s 

administrative appeal process, see 7 

CFR part 11. The voucher amount will 

be based on the comparable market rent; 

the voucher amount will never exceed 

the comparable market rent at the time 

of prepayment for the tenant’s unit if the 

tenant chooses to stay in-place. Also, in 

no event may the Rural Development 

voucher payment exceed the actual 

tenant lease rent. The amount of the 

voucher does not change over time or if 

the tenant chooses to move to a more 

expensive location. 

6. Mobility and Portability of Rural 

Development Vouchers 

An eligible family that is issued a 

Rural Development voucher may elect 

to use the assistance in the same project 

or may choose to move from the 

property. The Rural Development 

voucher may be used at the prepaid 

property or any other rental unit in the 

United States and its territories that 

passes Rural Development physical 

inspection standards, where the owner 

will accept a Rural Development 

voucher and execute a Form HUD 

52641. HUD Section 8 and Federallyassisted public housing, however, is 

excluded from the Rural Development 

Voucher Program because these units 

are already Federally subsidized. 

Tenants with a Rural Development 

voucher would have to give up the 

Rural Development voucher to accept 

the assistance at those properties. The 

Rural Development voucher may be 

used in other properties financed by 

Rural Development, but it cannot be 

used in combination with the Rural 

Development RA program. Tenants with 

a Rural Development voucher that apply 

for housing in a Rural Developmentfinanced property must choose between 

using the voucher or RA. If the tenant 

relinquishes the Rural Development 

voucher in favor of RA, the tenant is not 

eligible to receive another Rural 

Development voucher. 

7. Term of Funding for Rural 

Development Vouchers 

The Rural Development Voucher 

Program provides voucher assistance for 

12 monthly payments. The voucher is 

issued to the household in the name of 

the primary tenant. If the primary tenant 

dies during the term of the voucher, 

after Rural Development receives notice 

of the death, the use of the voucher 

passes to the co-tenant. 

The voucher is renewable subject to 

the availability of appropriations to the 

USDA. In order to renew a voucher a 

tenant must return a signed Voucher 

Obligation Form which will be sent to 

the tenant within 60–90 days before the 

current voucher is exhausted. Renewal 

requests will have no preference and 

will be processed as a new application 

as described in this NOFA. 

8. Non-Discrimination Statement 

‘‘The U.S. Department of Agriculture 

(USDA) prohibits discrimination in all 

its programs and activities on the basis 

of race, color, national origin, age, 

disability, and where applicable, sex, 

marital status, familial status, parental 

status, religion, sexual orientation, 

genetic information, political beliefs, 

reprisal, or because all or a part of an 

individual’s income is derived from any 

public assistance program. (Not all 

prohibited bases apply to all programs.) 

Persons with disabilities who require 

alternative means for communication of 

program information (Braille, large 

print, audiotape, etc.) should contact 

USDA’s TARGET Center at (202) 720– 

2600 (voice and TDD). To file a 

complaint of discrimination write to 

USDA, Director, Office of Civil Rights, 

1400 Independence Avenue, SW., 

Washington, DC 20250–9410 or call 

(800) 795–3272 (voice) or (202) 720– 

6382 (TDD). USDA is an equal 


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Federal Register / Vol. 74, No. 81 / Wednesday, April 29, 2009 / Notices 19513 

opportunity provider, employer, and 

lender.’’ 

9. Paperwork Reduction Act 

The information collection 

requirements contained in this 

document are those of the Housing 

Choice Voucher Program, which have 

been approved by the Office of 

Management and Budget (OMB) under 

the Paperwork Reduction Act of 1995 

(44 USC 3501–3520) and assigned OMB 

control number 2577–0169. In 

accordance with the Paperwork 

Reduction Act, HUD may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection displays a 

currently valid OMB control number. 

Dated: April 22, 2009. 

James C. Alsop, 

Acting Administrator, Rural Housing Service. 

[FR Doc. E9–9828 Filed 4–28–09; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

Notice of Solicitation of Applications: 

Section 514, 515, and 516 Multi-Family 

Housing Revitalization Demonstration 

Program (MPR) for Fiscal Year 2009 

AGENCY: Rural Housing Service, USDA. 

ACTION: Notice. 

Announcement Type: Inviting 

applications from eligible applicants for 

Fiscal Year (FY) 2009 funding. 

Catalog of Federal Domestic 

Assistance Number (CFDA): 10.447. 

SUMMARY: USDA Rural Development 

(Agency) which administers the 

programs of the Rural Housing Service 

(RHS) announces the timeframe to 

submit applications to participate in a 

demonstration program to preserve and 

revitalize existing rural rental housing 

projects financed by Rural Development 

under Section 515, Section 514, and 

Section 516 of the Housing Act of 1949, 

as amended. A subsequent Notice of 

Funding Availability (NOFA) will be 

published with specific funding 

information for fiscal year 2009 at a later 

date. The intended effect is to 

restructure selected existing Section 515 

multi-family housing loans and Section 

514 and 516 off-farm labor housing 

loans and grants expressly for the 

purpose of ensuring that sufficient 

resources are available to preserve the 

rental project for the purpose of 

providing safe and affordable housing 

for very low-, low-, or moderate-income 

residents. Expectations are that 

properties participating in this program 

will be revitalized and the affordable 

use will be extended without displacing 

tenants because of increased rents. No 

additional Agency rental assistance 

units will be made available under this 

program. 

DATES: The deadline for receipt of all 

pre-applications in response to this 

Notice of Solicitation Availability 

(NOSA) is 5 p.m., Eastern Time, June 

29, 2009. The pre-application closing 

deadline is firm as to date and hour. The 

Agency will not consider any preapplication that is received after the 

closing deadline. Applicants intending 

to mail pre-applications must allow 

sufficient time to permit delivery on or 

before the closing deadline. Acceptance 

by a post office or private mailer does 

not constitute delivery. Facsimile (FAX) 

and postage-due pre-applications will 

not be accepted. 

FOR FURTHER INFORMATION CONTACT: 

Cynthia Foxworth, 

cynthia.reesefoxworth@usda.gov, (202) 

720–1940, Finance and Loan Analyst, 

Multi-Family Housing Preservation and 

Direct Loan Division, STOP 0782 (Room 

1263–S), U. S. Department of 

Agriculture, Rural Housing Service, 

1400 Independence Avenue, SW., 

Washington, DC 20250–0782. (Please 

note this telephone number is not a tollfree number.) 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

The information collection 

requirements contained in this Notice 

have received approval from the Office 

of Management and Budget (OMB) 

under Control Number 0570–0190. 

Overview 

The Agriculture, Rural Development, 

Food and Drug Administration, and 

Related Agencies Appropriations Act, 

2008 (Pub. L. 110–161), December 26, 

2007, details which level of funding and 

conditions were continued by the 

Omnibus Appropriations Act, 2009 

(Pub. L. 111–8) (March 11, 2009), 

provides funding for and authorizes 

Rural Development to conduct a 

demonstration program for the 

preservation and revitalization of the 

Section 515 multi-family housing 

portfolio and Section 514 and 516 offfarm labor housing portfolio. Sections 

514, 515 and 516 multi-family housing 

programs are authorized by the Housing 

Act of 1949, as amended (42 U.S.C. 

Sections 1484, 1485, 1486) and provide 

Rural Development with the authority to 

make loans for low-income multi-family 

housing and farm labor housing and 

related facilities. 

Program Administration 

I. Funding Opportunities Description 

This NOSA solicits pre-applications 

from eligible borrowers/applicants to 

restructure existing multi-family 

housing within the Agency’s Section 

515 multi-family housing portfolio and 

the 514/516 off-farm labor housing 

portfolio for the purpose of 

revitalization and preservation. The 

demonstration program shall be referred 

to in this notice as the Multi-Family 

Housing Revitalization Demonstration 

program (MPR). Agency regulations for 

the Section 515 multi-family housing 

program and for the Sections 514/516 

off farm labor housing program are 

published at 7 CFR part 3560. 

The MPR is intended to assure that 

existing rental projects will continue to 

deliver decent, safe, and sanitary 

affordable rental housing for the lesser 

of the remaining term of the loan or 20 

years from the date of the MPR 

transaction closing. Once an applicant 

has been confirmed eligible and the 

project has been selected by the Agency 

in the process described in this notice, 

and the applicant agrees to participate 

in the MPR demonstration by written 

notification to the Agency, an 

independent third-party capital needs 

assessment (CNA) will be conducted to 

provide a fair and objective review of 

projected capital needs. The Agency 

shall implement this NOSA through an 

MPR Conditional Commitment 

(MPRCC) Letter of Conditions with the 

eligible borrower, which will include all 

the terms and conditions under this 

NOSA, including the MPR Debt Deferral 

Agreement. 

The primary restructuring tool to be 

used in this program is debt deferral for 

up to 20 years of the existing Section 

514 and 515 loans obligated prior to 

October 1, 1991. The cash flow from the 

deferred payment will be deposited, as 

directed by the Agency, to the reserve 

account to help meet the future physical 

needs of the property or to reduce rents. 

Debt deferral is described as follows: 

Debt Deferral: A deferral of the 

existing Agency debt for the lesser of the 

remaining term of the loan or 20 years. 

All terms and conditions of the deferral 

will be described in the MPR Debt 

Deferral Agreement. A balloon payment 

of principal and accrued interest will be 

due at the end of the deferral period. 

Interest will accrue at the promissory 

note rate and subsidy will be applied as 

set out in the Agency’s Interest Credit 

Agreement. Interest will not be charged 

on the deferred interest. 

If the resulting cash flow is not 

adequate to address the long-term needs 


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