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[Federal Register Volume 89, Number 231 (Monday, December 2, 2024)]
[Rules and Regulations]
[Pages 95079-95080]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28189]

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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 / 
Rules and Regulations

[[Page 95079]]

DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3550

[Docket No. RHS-24-SFH-0028]

Section 504 Direct Single Family Housing Home Repair Loans and 
Grants; Materials Pilot Program

AGENCY: Rural Housing Service, USDA.

ACTION: Notification of waiver.

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SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural 
Development agency of the United States Department of Agriculture 
(USDA), is issuing this document to implement a demonstration program, 
the Section 504 Direct Single Family Housing Loans and Grants pilot 
program. The Agency's intention is to evaluate the existing regulations 
and remove regulatory barriers to assist eligible applicants with 
improved ease of use for very low-income homeowners seeking to repair 
or rehabilitate their homes. This document briefly discusses the new 
waiver and provides contact information for additional details about 
the pilot program.

DATES: The effective date of the regulatory waiver is December 2, 2024. 
The duration of the pilot program is anticipated to continue until 
December 2, 2026, at which time the RHS may extend the pilot program 
(with or without modifications) or terminate it depending on the 
workload and resources needed to administer the program, feedback from 
the public, and the effectiveness of the program. If the pilot program 
is extended or terminated early, the RHS will notify the public via 
Notice publication in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Anthony Williams, Management and 
Program Analyst, Special Programs and Initiatives Branch, Single Family 
Housing Direct Loan Division, Rural Development, U.S. Department of 
Agriculture, Email: [email protected]; Phone: (202) 720-9649.

SUPPLEMENTARY INFORMATION: 

Authority

    Title V, Section 504 of the Housing Act of 1949, as amended; 42 
U.S.C. 1474.

Background

    The RHS offers a variety of programs to build or improve housing 
and essential community facilities in rural areas. The Agency offer 
loans, grants, and loan guarantees for single- and multifamily housing, 
child-care centers, fire and police stations, hospitals, libraries, 
nursing homes, schools, first responder vehicles and equipment, housing 
for farm laborers and much more. RHS also provides technical assistance 
loans and grants in partnership with non-profit organizations, Indian 
tribes, state and federal government agencies, and local communities.
    The RHS Single Family Housing Direct Loans and Grants Program 
(SFHDLGP) Division implements the Section 504 loan/grant program under 
7 CFR part 3550 with the objective to assist very low-income owner 
occupants of single-family homes in rural areas repair or rehabilitate 
their homes. Loan funds are available for repairs to improve or 
modernize a home, make it safer or more sanitary, or remove health and 
safety hazards. The eligibility requirements, as described in 7 CFR 
3550.103, include that a homeowner (1) be unable to secure financial 
assistance at reasonable terms and conditions from a non-Agency source; 
(2) lack the personal resources to meet their needs; and (3) can 
demonstrate the ability to repay the Section 504 loan. For homeowners 
62 years old and over at the time of application, grant funds are 
available to correct health or safety hazards, or remodel dwellings to 
make them accessible to a household member with a disability.
    RHS may authorize limited demonstration (pilot) programs to test 
new approaches to offering housing under the statutory authority 
granted to the Secretary, as set forth in section 506(b) of the Housing 
Act of 1949 (42 U.S.C. 1476(b)). Additional demonstration program 
authority for regulations contained in 7 CFR part 3550 is provided at 7 
CFR 3550.7. Any program requirements that are statutory will remain in 
effect.

Discussion of the New Section 504 Waiver

    To align with current market payment requirements and further 
utilize program loan funding, RHS has determined to test and evaluate 
the regulatory requirements under the new pilot program for the Single-
Family Housing Section 504 Home Repair Loan and Grant program under the 
pilot program authority provided at section 506(b) of the Housing Act 
of 1949 (42 U.S.C. 1476(b)):
    The pilot program allows participants to use Section 504 loan or 
grant funds for the payment of construction materials prior to site 
delivery and without the need for the contractor to provide a surety 
bond. This component of the demonstration program will permit SFHDLGP 
to evaluate 7 CFR 1924.6(a)(12)(v)(C) which requires delivery of 
materials prior to payment and a surety bond. Under the demonstration 
program, payment in full may be made directly to the material supplier 
so the order can be placed or to the contractor upon receipt of paid 
invoice. Contractors expect up to fifty percent down prior to ordering 
materials or beginning work, and applicants struggle to find 
contractors that will work within the Agency's payment terms. This 
waiver is a step closer to meeting contractor expectations while still 
protecting applicants from fraudulent contractors that might take 
downpayment funds and never complete the job.

Eligibility Requirements

    (1) Eligble participants--Eligible participants in the Section 504 
Home Repair Loan and Grant program must abide by the regulatory 
requirements outlined in 7 CFR 3550. (2) Eligible States and 
Territories--The following twenty-five (25) States and U.S. Territories 
are selected based on program usage, involvement in the Rural Partners 
Network, and to provide wide geographic and historic production 
variation for the pilot program: Alabama, Alaska, American Samoa, 
Arizona, California, Florida, Georgia, Kansas, Kentucky, Minnesota, 
Mississippi, Montana, Nevada, North Carolina, North Dakota, Nebraska, 
New Mexico, New York, Puerto Rico, South

[[Page 95080]]

Dakota, Tennessee, Texas, Washington, West Virginia, and Wisconsin.

Paperwork Reduction Act

    The regulatory waivers for this pilot program contain no new 
reporting or recordkeeping burdens under OMB control number 0575-0172 
that would require approval under the Paperwork Reduction Act of 1995 
(44 U.S.C. Chapter 35).

Non-Discrimination Statement

    In accordance with Federal civil rights laws and 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, or staff office; or the 711 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/documents/ad-3027.pdf from any USDA office, by calling (866) 632-
9992, or by writing a letter addressed to USDA. The letter must contain 
the complainant's name, address, telephone number, and a written 
description of the alleged discriminatory action in sufficient detail 
to inform the Assistant Secretary for Civil Rights (ASCR) about the 
nature and date of an alleged civil rights violation. The completed AD-
3027 form or letter must be submitted to USDA by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (2) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: [email protected]
    USDA is an equal opportunity provider, employer, and lender.

Joaquin Altoro
Administrator, Rural Housing Service.
[FR Doc. 2024-28189 Filed 11-29-24; 8:45 am]
BILLING CODE 3410-XV-P
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