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.

Rules and Regulations Federal Register

104031 

Vol. 89, No. 245 

Friday, December 20, 2024 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

7 CFR Part 3565 

[Docket No. RHS–24–MFH–0043] 

Loan Guarantees Under the Section 

538 Guaranteed Rural Rental Housing 

Program 

AGENCY: Rural Housing Service, 

Department of Agriculture (USDA). 

ACTION: Notification of updates in the 

competitive lender submissions process. 

SUMMARY: The Rural Housing Service 

(RHS or Agency), an agency within 

Rural Development (RD), announces 

updates in the process for competitive 

lender application submissions 

regarding proposed properties for the 

Section 538 Guaranteed Rural Rental 

Housing Program (GRRHP). The amount 

of program dollars available for the 

GRRHP will be determined by the 

Appropriations Act for each fiscal year. 

DATES: The effective date of the process 

updates is December 20, 2024. 

ADDRESSES: Applications must be 

submitted electronically in accordance 

with the instructions in section IV of 

this notification. Applications will be 

accepted on a continuous basis. 

Complete applications that are deemed 

eligible for further processing will be 

funded to the extent an Appropriations 

Act provides sufficient funding in the 

fiscal year the application is selected. If 

funding is not sufficient in any given 

fiscal year, funding will be provided 

under the next funding Appropriations 

Act, subject to the availability of funds. 

Approved applications are subject to the 

fee structure in effect when the 

application is received by the Agency. 

FOR FURTHER INFORMATION CONTACT: 

Jonathan Bell, Director, Processing and 

Report Review Branches, Production 

and Preservation Division, Multifamily 

Housing Programs, Rural Development, 

United States Department of 

Agriculture, via email: 

MFHprocessing1@usda.gov or 

telephone: 202–205–9217. Hearing or 

speech-impaired persons may access 

that number by calling the 711 Federal 

Information Relay Service. 

SUPPLEMENTARY INFORMATION: 

Authority 

The GRRHP is authorized under 

section 538 of the Housing Act of 1949, 

as amended, 42 U.S.C. 1490p–2, and 

implemented under 7 CFR part 3565. 

Background 

RHS is committed to helping improve 

the economy and quality of life in rural 

areas by offering a variety of programs. 

The Agency offers loans, grants, and 

loan guarantees to help create jobs, 

expand economic development, and 

provide critical infrastructure 

investments. RHS also provides 

technical assistance loans and grants by 

partnering with agricultural producers, 

cooperatives, Indian tribes, non-profits, 

and other local, state, and Federal 

agencies. 

The Section 538 GRRHP is a program 

administered by the RHS, under the 

authority of the Housing Act of 1949, as 

amended (42 U.S.C. 1490p-2). The 

purpose of the GRRHP is to increase the 

supply of affordable rural rental 

housing, using loan guarantees that 

encourage partnerships between the 

RHS, private lenders, and public 

agencies. 

On April 28, 2023 (88 FR 26221), the 

Agency published a notification in the 

Federal Register to consolidate all 

changes to the Section 538 GRRHP 

program. Pursuant to 7 CFR part 3565, 

any changes to the selection and/or 

scoring criteria or fees charged in 

subsequent years will be announced in 

a notification published in the Federal 

Register. Accordingly, this notification 

replaces the notification published on 

April 28, 2023 (88 FR 26221), and the 

correction notification published on 

July 17, 2023 (88 FR 46047), as the 

reference for interested parties to follow 

when submitting GRRHP applications. 

Expenses incurred in developing 

applications will be at the applicant’s 

risk. The following paragraphs outline 

the eligibility requirements, lender 

responsibilities, and the overall 

application processes. 

Any future modifications to this 

notification, including changes to the 

selection and/or scoring criteria or fees 

charged in subsequent years, will be 

published in the Federal Register. 

Discussion of Program Updates 

The Agency announces the following 

updates to the GRRHP: 

1. The Agency added a new priority 

scoring criteria related to maturing 

mortgages in section 514/515 and 

section 538 joint transactions. 

2. The Agency adjusted the priority 

scoring criteria points. 

3. The Agency added a new priority 

scoring criteria related to waiving the 

Qualified Contract rights on 

applications that are funded using Low 

Income Housing Tax Credits. 

4. The Section 538 GRRHP Response 

Form will now be titled and referred to 

as the Section 538 GRRHP Response 

Template. The Section 538 GRRHP 

Response Template is not required; 

however, the Agency encourages 

applicants to utilize and submit the 

template along with their complete 

application to streamline the review 

process. The template is available on the 

Agency’s Multifamily Housing Loan 

Guarantees website (https://

www.rd.usda.gov/programs-services/ 

multifamily-housing-programs/ 

multifamily-housing-loan-guarantees) 

for applicants that choose to utilize it. 

If the applicant chooses not to use the 

template, the information is still 

required to be submitted with the 

completed application. 

5. The Agency is requiring lenders to 

include the proposed closing date in 

their application submission. 

6. The Agency is requiring lenders to 

provide information regarding 

commercial space associated with the 

property. 

7. The Agency is requiring lenders to 

identify each principal involved in the 

Section 538 GRRHP transaction in their 

application submission. 

8. The Agency has modified the 

instructions for initiating the 

application process. 

I. Funding Opportunity Description 

The GRRHP program is administered 

subject to appropriations by the United 

States Department of Agriculture 

(USDA) as authorized under section 538 

of the Housing Act of 1949, as amended, 

42 U.S.C. 1490p-2, and is implemented 

under 7 CFR part 3565. The Section 538 

GRRH program will continue to follow 

procedures similar to other RD 


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104032 Federal Register / Vol. 89, No. 245 / Friday, December 20, 2024 / Rules and Regulations 

guaranteed loan programs and accept 

applications on a continuous basis. 

The purpose of the GRRHP is to 

increase the supply of affordable rural 

rental housing using loan guarantees to 

encourage partnerships between the 

Agency, private lenders, and public 

agencies. 

Eligibility of Prior Fiscal Year 

Applications: Prior fiscal year complete 

applications that were submitted to the 

Agency but not funded due to lack of 

available funding will be eligible for 

review under the current notice without 

having to submit a new application. 

If approved, applications submitted 

under a previous fiscal year notice will 

be obligated in the order that the request 

for obligation was received, to the extent 

of available funding. 

Once the outstanding prior years 

approved applications have been 

funded, the Agency will fund 

applications approved in the current 

fiscal year in the order by which the 

request for obligation was received. If 

funding is insufficient to serve all 

applications approved in the current 

fiscal year, they will be funded 

according to the priority scoring set 

forth in section V of this notification. 

The obligation of program funds is 

discussed further in section VI of this 

notification. 

II. Award Information 

Anyone interested in submitting an 

application for funding under this 

program is encouraged to visit the RD 

website (https://www.rd.usda.gov/ 

programs-services/multifamily-housingprograms/multifamily-housing-loanguarantees) periodically for updated 

information regarding the status of 

funding authorized for this program. 

(1) Qualifying Properties: Qualifying 

properties include new construction for 

multifamily housing units and the 

acquisition of existing structures with a 

minimum per unit rehabilitation 

expenditure requirement in accordance 

with 7 CFR 3565.252. This may include 

the revitalization, repair, and transfer 

(as stipulated in 7 CFR 3560.406) of 

existing Section 515 Rural Rental 

Housing (RRH) and existing Section 

514/516 Farm Labor Housing (FLH). The 

Agency does not finance acquisition 

only deals. 

Transfer costs are subject to Agency 

approval. All costs must be an eligible 

use of loan proceeds as listed in 7 CFR 

3565.205. Properties involved in the 

Agency’s Multifamily Preservation and 

Revitalization (MPR) Demonstration are 

subject to an equity payment, as 

stipulated in 7 CFR 3560.406(e). In 

accordance with 7 CFR 3565.252, the 

property must have a need for repairs of 

at least $6,500 per dwelling unit and 

must undergo revitalization. 

If the transaction includes a transfer 

of ownership and assumption of loan for 

a Section 515 RRH property, the 

complete 538 application and the 

complete Section 515 RRH transfer of 

ownership application must be 

submitted simultaneously, same day, to 

the Agency. If the complete 538 

application is not submitted 

simultaneously with the Section 515 

RRH transfer of ownership application, 

the 538 application will be rejected and 

returned to the lender. The lender may 

resubmit the application when both the 

complete 538 application and the 515 

RRH transfer of ownership application 

can be submitted simultaneously. 

(2) Eligible Financing Sources: Any 

form of Federal, State, and conventional 

sources of financing can be used in 

conjunction with the loan guarantee, 

including HOME Investment 

Partnerships Program (HOME) grant 

funds, tax exempt bonds, and LowIncome Housing Tax Credits (LIHTC). 

(3) Types of Guarantees: The Agency 

offers three types of guarantees, which 

are set forth at 7 CFR 3565.52(c). The 

Agency liability under any guarantee 

will decrease or increase, in proportion 

to any decrease or increase in the 

amount of the unpaid portion of the 

loan, up to the maximum amount 

specified in the Loan Note Guarantee. 

Penalties incurred as a result of default 

are not covered by any of the program’s 

guarantees. The Agency may provide a 

lesser guarantee based upon its 

evaluation of the credit quality of the 

loan. 

(4) Interest Credit: There will be no 

interest credit. 

(5) Program Fees: The following fees 

have been determined necessary to 

cover the projected cost of loan 

guarantees. These fees may be adjusted 

based on the Appropriation 

requirements and in future years to 

cover the projected costs of loan 

guarantees in those future years, or 

additional fees may be charged. Any 

changes to the program fees will be 

announced in a notification published 

in the Federal Register. The fees are as 

follows: 

(a) Initial guarantee fee. The Agency 

will charge an initial guarantee fee 

pursuant to 7 CFR 3565.53(a). For 

purposes of calculating this fee, the 

guarantee amount is the product of the 

percentage of the guarantee times the 

initial principal amount of the 

guaranteed loan. 

(b) Annual guarantee fee. An annual 

guarantee fee based on the outstanding 

principal amount of the loan as of 

December 31 will be charged each year 

or portion of a year that the guarantee 

is outstanding, pursuant to 7 CFR 

3565.53(b). The guarantee fee is paid in 

advance. 

(c) As permitted under 7 CFR 

3565.302(b)(5), there is a non-refundable 

service fee of $1,500 for the review of 

a lender’s first request to extend the 

term of a guarantee commitment beyond 

its original expiration (the request must 

be received by the Agency prior to the 

commitment’s expiration). For any 

subsequent extension request on the 

same guarantee, the fee will be $2,500. 

(d) As permitted under 7 CFR 

3565.302(b)(5), there is a non-refundable 

service fee of $3,500 for the review of 

a lender’s first request to reopen an 

application when a commitment has 

expired. For any subsequent request to 

reopen the same application after the 

commitment has expired, the fee will be 

$3,500. 

(e) As permitted under 7 CFR 

3565.302(b)(4), there is a non-refundable 

service fee of $1,500 in connection with 

a lender’s request to approve the 

transfer of property or a change in 

composition of the ownership entity. 

(f) There is no application fee. 

(g) There is no lender application fee 

for lender approval. 

(h) There is no surcharge for the 

guarantee of construction advances. 

The current initial and annual 

guarantee fees can be found in a notice 

published in the Federal Register (87 

FR 12077) on March 3, 2022, at the 

following website: https://

www.federalregister.gov/documents/ 

2022/03/03/2022-04442/new-feestructure-for-section-538-guaranteedrural-rental-housing-program-initialand-annual. If changes occur in the fee 

amounts, the Agency will release those 

changes through a notice in the Federal 

Register and will provide guidance on 

how to process the loans which will be 

impacted by the new fee structure. 

III. Lender Eligibility Information 

(1) Eligible Lenders: An eligible lender 

for the Section 538 GRRHP as required 

by 7 CFR 3565.102 must be a licensed 

business entity or Housing Finance 

Agency (HFA) in good standing in the 

State or States where it conducts 

business. Lender eligibility 

requirements are contained in 7 CFR 

3565.102. Please review that section for 

a complete list of all the criteria. The 

Agency will only consider applications 

from GRRHP eligible, or approved 

lenders as described in 7 CFR 3565.102 

and 3565.103, respectively. 

Lenders who do not have GRRHP 

approved lender status and whose 

applications are approved will be 

notified by the Agency to submit a 


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Federal Register / Vol. 89, No. 245 / Friday, December 20, 2024 / Rules and Regulations 104033 

request for GRRHP lender approval 

within 30 days of notification. 

Alternately, lenders may submit a 

request for GRRHP approved lender 

status with their project application 

submission. Lenders who request 

GRRHP approval must meet the 

standards in 7 CFR 3565.103. The loan 

note guarantee will not be issued to 

lenders that have not been vetted and 

determined to be eligible by the Agency 

to participate in the GRRHP programs. 

Lenders that have received GRRHP 

lender approval that remain in good 

standing in accordance with 7 CFR 

3565.105 do not need to reapply for 

GRRHP lender approval. 

(2) System for Award Management

and Unique Entity Identifier: 

(a) At the time of application, each

applicant must have an active 

registration in the System for Award 

Management (SAM) before submitting 

its application in accordance with 2 

CFR part 25. To register in SAM, entities 

will be required to obtain a Unique 

Entity Identifier (UEI). Instructions for 

obtaining the UEI are available at 

https://sam.gov/content/entityregistration. 

(b) Applicants must maintain an

active SAM registration, with current, 

accurate and complete information, at 

all times during which they have an 

active Federal award or an application 

under consideration by a Federal 

awarding agency. 

(c) Applicant must ensure they

complete the Financial Assistance 

General Representations and 

Certifications in SAM. 

(d) Applicants must provide a valid

UEI in its application, unless 

determined exempt under 2 CFR 25.110. 

(e) The Agency will not make an

award until the applicant has complied 

with all SAM requirements including 

providing the UEI. If an applicant has 

not fully complied with the 

requirements by the time the Agency is 

ready to make an award, the Agency 

may determine that the applicant is not 

qualified to receive a Federal award and 

use that determination as a basis for 

making a Federal award to another 

applicant. 

Submission of Documentation for 

GRRHP Lender Approval: 

All lenders that have not yet received 

GRRHP lender approval must submit a 

complete lender application to: 

Multifamily Housing Asset Management 

Division, Branch Chief, Risk and 

Counterparty Oversight, RDMFH_

RCOB_GRRHP@USDA.gov. Lender 

applications must be identified as 

‘‘Lender Application—Section 538 

Guaranteed Rural Rental Housing 

Program’’ in the subject line. 

IV. Application Submission

Information

Applications will be accepted on a 

continuous basis. Applications that are 

deemed eligible for further processing 

will be funded to the extent an 

Appropriations Act provides sufficient 

funding in the fiscal year the 

application is selected. If funding is not 

sufficient in any given fiscal year, 

funding will be provided under the next 

funding Appropriations Act, subject to 

the availability of funds. Approved 

applications are subject to the fee 

structure in effect when the application 

is received by the Agency. 

(1) To initiate the application process,

the applicant must send an email of 

interest to the RHS Production and 

Preservation Division at 

MFH.ProgramSupport@usda.gov. The 

email message must contain the 

following information: 

a. Subject line: Section 538 GRRHP

Application Submission 

b. Body of email: Borrower Name,

Project Name, Borrower Contact 

Information (including address, phone 

number, email address to receive 

application submission information) 

and Project State. 

c. Request language: ‘‘Please provide

application submission instructions so 

that we may submit our Section 538 

GRRHP application and supporting 

documents.’’ 

Application submission instructions 

will be emailed to all interested 

respondents supplying valid email 

addresses within two (2) business days 

from the date the email of interest is 

received by the Agency. 

(2) All applications require lender

information and project specific data as 

set out in this notification. Complete 

applications must include a signed 

cover letter from the lender, on the 

lender’s letterhead. The lender must 

provide the requested information as 

outlined in this notification concerning 

the property, to establish the purpose of 

the proposed property, its location, and 

how it meets the established priorities 

for funding. 

In compliance with Agency guidance 

to determine the lender’s (participants) 

eligibility, the Agency is responsible for 

screening lenders in the Do Not Pay 

Portal for the following: (1) Credit Alert 

System (CAIVRS); (2) System for Award 

Management Entity Registration Records 

(SAMENT); (3) System for Award 

Management Exclusion RecordsRestricted (SAM–EXCL–RES) and (4) 

Treasury Offset Program Debt Check 

(DBCK). If the lender is a non-profit, the 

Agency will also screen for Internal 

Revenue Service (IRS) Automatic 

Revocation of Exemption List (ARL). 

Screening will take place when the 

lender submits a complete application 

to the Agency. At the time of 

application, each lender must have an 

active registration in SAM before 

submitting its application in accordance 

with 2 CFR 25.200. To register in SAM, 

entities will be required to obtain a UEI. 

Instructions for obtaining the UEI are 

available at https://sam.gov/entityregistration. Further information 

regarding SAM registration and the UEI 

can be found in the Lender Eligibility 

Information section of this notification. 

Also, as part of the complete 

application package, the lender must 

provide a list of all the lender’s 

principals (in accordance with the 

definition below) in the organization. 

This information will be used to screen 

the lender’s principals in the Do Not 

Pay Portal for SAM–EXCL–RES at the 

application stage. 

As codified at 2 CFR 180.995, 

‘‘Principal’’ is defined as: (a) an officer, 

director, owner, partner, principal 

investigator, or other person within a 

participant with management or 

supervisory responsibilities related to a 

covered transaction; or (b) a consultant 

or other person, whether or not 

employed by the participant or paid 

with Federal funds, who—(1) is in a 

position to handle Federal funds; (2) is 

in a position to influence or control the 

use of those funds; or (3) occupies a 

technical or professional position 

capable of substantially influencing the 

development or outcome of an activity 

required to perform the covered 

transaction. 

(a) Lender Certification: The lender

must certify that the lender will make a 

loan to the prospective borrower for the 

proposed property, under specified 

terms and conditions subject to the 

issuance of the GRRHP guarantee. 

Lender certification must be on the 

lender’s letterhead and signed by both 

the lender and the prospective 

borrower. 

(b) Project Specific Data: The lender

must submit the project specific data 

below. For the applicant’s convenience, 

the Agency has made a Section 538 

GRRHP Response Template available on 

the Agency’s Multifamily Housing Loan 

Guarantees website (https://

www.rd.usda.gov/programs-services/ 

multifamily-housing-programs/ 

multifamily-housing-loan-guarantees) 

for applicants that choose to utilize it. 

The template is not required; however, 

the information is required with a 

complete application. The Agency 

encourages applicants to utilize and 

submit the template along with their 

complete application to streamline the 

review process. 


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104034 Federal Register / Vol. 89, No. 245 / Friday, December 20, 2024 / Rules and Regulations 

Data element Information that must be included 

Lender Name ............................................................................................ Insert the lender’s name. 

Lender Tax ID # ....................................................................................... Insert lender’s tax ID number. 

Lender Unique Entity Identifier (UEI) ....................................................... Insert lender’s (UEI). 

Lender Contact Name .............................................................................. Name of the lender contact for loan. 

Mailing Address ........................................................................................ Lender’s complete mailing address. 

Phone # .................................................................................................... Phone number for lender contact. 

Fax # ......................................................................................................... Insert lender’s fax number. 

E-Mail Address ......................................................................................... Insert lender contact e-mail address. 

List of Lender’s Principals ........................................................................ Complete list of all of the lender’s principals involved in the transaction. 

Borrower Name and Organization Type .................................................. State whether borrower is a Limited Partnership, Corporation, Indian 

Tribe, etc. 

Equal Opportunity Survey ........................................................................ Optional Completion. 

Tax Classification Type ............................................................................ State whether borrower is for profit or not for profit. 

Borrower Tax ID # .................................................................................... Insert borrower’s tax ID number. 

Borrower UEI (if applicable) ..................................................................... Insert borrower’s UEI. 

Borrower Address, including County ........................................................ Borrower’s complete address and county. 

Borrower Phone # and E-Mail Address ................................................... Insert borrower’s phone number and e-mail address. 

Principal or Key Member for the Borrower (as defined in 2 CFR 

180.995).

Insert name and title. List the general partners if a limited partnership, 

officers if a corporation or members of a Limited Liability Corporation. 

Borrower Information and Statement of Housing Development Experience.Attach relevant information. 

New Construction, Acquisition with Rehabilitation ................................... State whether the project is new construction or acquisition with rehabilitation. 

Revitalization, Repair, and Transfer (as stipulated in 7 CFR 3560.406) 

of Existing Direct Section 515 and Section 514/516 FLH or MPR.

Yes or No (Transfer costs, including equity payments, are subject to 

Agency approval and must be an eligible use of loan proceeds in 7 

CFR 3565.205). 

Project Location Town or City .................................................................. Town or city in which the project is located. 

Project County .......................................................................................... County in which the project is located. 

Project State ............................................................................................. State in which the project is located. 

Project Zip Code ....................................................................................... Insert zip code where the project is located. 

Project Congressional District .................................................................. Congressional District for project location. 

Project Name ............................................................................................ Insert project name. 

Project Type ............................................................................................. Family, senior (all residents 55 years or older), or mixed. 

Property Description and Proposed Development Schedule ................... Provide as an attachment. 

Total Project Development Cost .............................................................. Enter amount for total project. 

# of Units .................................................................................................. Insert the number of units in the project. 

Ratio of 3–5 Bedroom Units to Total Units .............................................. Insert percentage of 3–5 bedroom units to total units. 

Cost Per Unit ............................................................................................ Total development cost divided by number of units. 

Rent .......................................................................................................... Proposed rent structure. 

Median Income for Community ................................................................ Provide median income for the community. 

Evidence of Site Control ........................................................................... Attach relevant information.

Description of any Environmental issues referenced in the Phase I report.Attach relevant information. 

Loan Amount ............................................................................................ Insert the loan amount. 

Borrower’s Proposed Equity ..................................................................... Insert amount and source. 

Low Income Housing Tax Credits, if applicable ....................................... Have tax credits been awarded? 

If tax credits were awarded, submit a copy of the award/evidence of 

award with your application. 

If not, when do you anticipate an award will be made (announced)? 

What is the [estimated] value of the tax credits? 

Letters of application and commitment letters should be included, if 

available. 

Low Income Housing Qualified Contract (QC) Waiver Documentation, if 

applicable.

A document certifying the QC rights have been waived must be included with the complete application if the applicant is seeking priority points for waiver of QC rights. 

Maturing Mortgage Date of existing Section 515/514/516 Rural Development properties (if applicable).Include maturity date. 

Other Sources of Funds ........................................................................... List all funding sources other than tax credits and amounts for each 

source, type, rates and terms of loans or grant funds. 

Loan to Total Development Cost ............................................................. Guaranteed loan divided by the total development costs of project. 

Debt Coverage Ratio ................................................................................ Net Operating Income divided by debt service payments. 

Percentage of Guarantee ......................................................................... Percentage guarantee requested.

Collateral ................................................................................................... Attach relevant information. 

Colonia, Tribal Lands, or State’s Consolidated Plan or State Needs Assessment.Colonia, on an Indian Reservation, or in a place identified in the State’s 

Consolidated Plan or State Needs Assessment as a high need community for multifamily housing. 

Is the Property Located in a Federally Declared Disaster Area? ............ If yes, please provide documentation (e.g., Presidential Declaration 

document). 

Population ................................................................................................. Provide the population of the county, city, or town where the project is 

or will be located. 

What Type of Guarantee is Being Requested, Permanent Only (Option 

1), Construction and Permanent (Option 2), or Continuous (Option 3).

Enter the type of guarantee. 

Loan Term ................................................................................................ State repayment and amortization terms (Minimum 25-year term. 


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Federal Register / Vol. 89, No. 245 / Friday, December 20, 2024 / Rules and Regulations 104035 

Data element Information that must be included 

Maximum 40-year term (includes construction period). 

May amortize up to 40 years. 

Balloon mortgages permitted after the 25th year.) 

Guarantee Fee Structure Designation ..................................................... Indicate the Guarantee Fee Structure: 

Standard Fee. 

Preservation of 514/515/516. 

Workforce Housing. 

Energy Efficient/Green. 

(Documentation is required). 

Participation in Energy Efficient Programs ............................................... Initial checklist indicating prerequisites to register for participation in a 

particular energy efficient program. All checklists must be accompanied by a signed affidavit by the project architect stating that the 

goals are achievable. If property management is certified for green 

property management, the certification must be provided. 

Proposed Closing Date ............................................................................ Include the proposed closing date of the Section 538 GRRHP loan. 

Is commercial space associated with this property? ............................... Indicate Yes or No. 

If commercial space is associated, please indicate if the Gross Floor 

(GF) Area exceeds 10% of residential units/common area.

Indicate Yes, No or N/A. (If yes, Agency approval is required). 

If commercial space is associated with the property, please indicate if 

the income from the commercial space activity exceeds 10% of the 

annual operating income.

Indicate Yes, No or N/A. (If yes, Agency approval is required). 

(c) The Proposed Borrower 

Information: 

i. In accordance with 2 CFR 180.300, 

the lender must verify and provide 

documentation to the Agency that the 

borrowing entity and the borrowing 

entity’s principals are not excluded or 

disqualified; and the lender’s borrower 

must verify the management agent and 

the management agent’s principals are 

not excluded or disqualified by: 

a. Checking SAM Exclusions (https:// 

sam.gov); or 

b. Collecting a certification; or 

c. Adding a clause or condition to the 

covered transaction. 

The lender must provide a certification 

to the Agency that their borrower 

verified the management agent and the 

management agent’s principals are not 

excluded or disqualified. 

ii. Borrower’s unaudited or audited 

financial statements. 

(d) Lender Eligibility and Approval 

Status: Evidence that the lender is either 

an approved lender for the purposes of 

the GRRHP or that the lender is eligible 

to apply for approved lender status. The 

lender’s application package requesting 

approved lender status can be submitted 

with the application. If a lender who has 

not yet been approved by the Agency 

submits a Section 538 GRRHP complete 

application, the lender approval 

application must be submitted to the 

Multifamily Housing Asset Management 

Division, Risk and Counterparty 

Oversight Branch, RDMFH_RCOB_

GRRHP@USDA.gov within 30 calendar 

days of application submission or 

within 30 calendar days of Agency 

notification, whichever is later (see 

SUBMISSION OF DOCUMENTATION 

FOR GRRHP LENDER APPROVAL 

above). The Agency will not issue a loan 

note guarantee until the lender is 

approved by the Agency. 

(e) Competitive Criteria: Information 

that shows how the proposal is 

responsive to the priority scoring 

criteria specified in this notification. 

(3) Content of Application: The lender 

must submit a complete application 

which consists of the following: 

(1) Section 538 GRRHP Response 

Template. The project specific data 

outlined above in section IV (2) (b). For 

the applicant’s convenience, the Agency 

has made a Section 538 GRRHP 

Response Template available on the 

Agency’s Multifamily Housing Loan 

Guarantees website (https://

www.rd.usda.gov/programs-services/ 

multifamily-housing-programs/ 

multifamily-housing-loan-guarantees) 

for applicants that choose to utilize it; 

however, the template is not required. 

The Agency encourages applicants to 

utilize and submit the template along 

with their complete application to 

streamline the review process. If the 

applicant chooses not to use the 

template, the information is still 

required to be submitted with the 

completed application. 

(2) Lender Certification. The lender’s 

certification will serve as assurance to 

the Agency that the borrower, the 

project, and the proposed financing 

meet the lender’s standards for loan 

making. The lender must certify the 

following on the lender’s letterhead: 

❏ The information contained in the 

application is consistent with the 

lender’s underwriting and loan making 

standards. 

❏ That a current and accurate list of 

the lender’s Officers and Principals has 

been provided to the Agency. 

❏ The lender has completed the 

lender’s review and has identified any 

significant findings in a narrative 

attached to the certification. 

❏ The lender agrees to make a loan to 

the borrower for the proposed project, 

subject to the Agency’s issuance of an 

appropriate guarantee option. 

❏ The proposed loan amount (for 

such part of the property attributable to 

dwelling use) does not exceed the 

applicable maximum per unit dollar 

amount limitations under section 207 

(c) of the National Housing Act. 

❏ The owner and development team 

have the qualifications and experience 

sufficient to carry out development, 

management, and ownership 

responsibilities. 

❏ If the lender is applying for a 

continuous guarantee, the project has 

the appropriate low loan-to-cost ratio as 

determined by the Agency [7 CFR 

3565.52(c)(3)]. 

❏ The property is located in an 

eligible rural area. 

❏ The lender has conducted due 

diligence and the results have been 

taken into consideration in the 

appraisal. 

❏ The lender has reviewed and 

approved the management plan and 

agreement and confirmed that they are 

consistent with Agency requirements. 

❏ The construction meets basic 

construction requirements. 

(3) Exhibits and Supporting 

Information. Forms to be included in 

the application package: 

❏ Form RD 3565–1, Application for 

Loan and Guarantee. 

❏ Form RD 3565–3, Lender’s 

Agreement. 

❏ RD Instruction 1940–Q, Exhibit A–2, 

Statement for Loan Guarantees. 


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❏ Attachment 4–D, Housing 

Allowances for Utilities and Other 

Public Services. 

❏ Form RD 1944–37, Previous 

Participation Certification. 

❏ Form RD 3560–30, Certification of No 

Identity of Interest (IOI), if applicable. 

❏ Form RD 3560–31, Identity of Interest 

Disclosure/Qualification Certification, 

if applicable. 

❏ Form RD 1910–11, Applicant 

Certification, Federal Collection 

Policies for Consumer or Commercial 

Debts. 

❏ FEMA Form 086–0–32, Special Flood 

Hazard Determination (7 CFR 

3565.254). 

❏ Form RD 1924–13, Estimate and 

Certificate of Actual Cost. 

❏ Form RD 400–4, Assurance 

Agreement. 

❏ Form RD 1924–25, Plan Certification 

Form. 

❏ Form RD 400–1, Equal Opportunity 

Agreement. 

❏ Form RD 400–6, Compliance 

Statement. 

(4) Other Required Supporting 

Information: 

(i) Borrower information: 

❏ Financial statements with 

certification(s) (newly formed entities 

applying for a construction/permanent 

guarantee do not need to provide 

financial statements at the time of 

application). 

❏ Credit report for the entity and any 

guarantor. 

❏ Proposed limited partnership 

agreement and certificate of limited 

partnership (if applicable). Agency 

requirements should be contained in 

one section of the agreement and their 

location identified by the borrower or 

their attorney in a cover sheet. 

❏ If a corporate entity, its Articles of 

Organization and its Operating 

Agreement. 

(ii) If the borrower is a nonprofit 

organization: 

❏ Tax-exempt ruling from the IRS 

designating them as a 501(c)(3) or 

501(c)(4) organization. If the designation 

is pending, a copy of the designation 

request must be submitted. 

❏ Evidence of organization under 

State law or copies of pending 

applications. 

❏ A list of board members. 

(iii) If the borrower is a public body: 

❏ The enabling statute or the State 

law of organization. 

(iv) Project Information: 

❏ An application fee, if required by 

the Agency. 

❏ An appraisal. 

❏ A market study. Contents of the 

market study should include, at a 

minimum, the following information: 

1. A complete description of the 

proposed site, including location of the 

land, location of services, and their 

distances from the site. 

2. Major employment data including: 

the name, location, and date of 

establishment of any major employers 

within the community; the product or 

service of each employer; the number of 

employees and salary range for each 

employer; and business permits issued 

per year for the last three years. 

3. Population by year, number, and 

total, plus the annual increase/decrease 

and percentage. 

4. Population characteristics by age. 

5. Household data by number, year, 

and number of persons per household. 

6. Breakdown of households by 

owners and renters. 

7. Households by income group. 

8. Building permits issued per year for 

single and multiple unit dwellings. 

9. Housing stock as defined by total 

number of units: one unit buildings, two 

or more unit buildings, mobile homes, 

and the number of these lacking some, 

or all, plumbing facilities (substandard 

housing). 

10. A survey of existing rental 

housing including: name, number of 

units, bedroom mix, family or elderly 

type, year built, rent, vacancies, 

location, and amenities. 

11. Number of rent-overburdened 

households. 

12. A projection of housing demand 

based on: 

(a) Household growth. 

(b) Units constructed since the last 

census. 

(c) Number of owned and rented 

units. 

(d) Number of replacements. 

(e) Number of persons in the eligible 

income range. 

13. For proposals where the applicant 

is requesting low-income housing tax 

credits (LIHTC), the applicant must 

provide the number of LIHTC units and 

the maximum LIHTC incomes and rents 

by unit size. This information will 

determine the levels of incomes in the 

market area which will support the 

basic rents while also qualifying the 

borrower for tax credits. 

❏ Project information including 

project name, location, number and type 

of units, the development team, 

property manager, lawyer, and 

syndicator. The development team 

includes the developer (including all 

principals), architect, and contractor. 

❏ Capital Needs Assessment (for 

rehabilitation loans only). Does the 

Capital Needs Assessment and Capital 

Improvement Plan call for a 

replacement reserve escrow that meets 

or exceeds the $1,000/unit threshold by 

year three? If not, document 

underwriting explanation (7 CFR 

3565.254(b)(4)). Include a Reserve for 

Replacement schedule. 

❏ State Clearinghouse comments or 

recommendations. 

❏ Site plan, including contour lines. 

❏ Plot plan. 

❏ Floor plan of each living unit type 

and other type spaces. 

❏ Building exterior elevations. 

❏ FEMA Form 086–0–33, Elevation 

Certificate. 

❏ Typical building exterior wall 

section. 

❏ Description and justification of any 

related facilities and schedule of 

separate charges for related facilities, if 

any. 

❏ Design development/working 

plans/construction specifications. Plans, 

specifications, and estimates must fully 

describe all of the work to be completed, 

including all landscaping, construction, 

repairs, and site development work. The 

plans must be clear and accurate with 

adequate dimensions and sufficient 

scale for estimating purposes. 

❏ Technical data, tests, or 

engineering evaluations needed to 

support the design of the development 

must be included. 

(v) Property Management Information: 

❏ Management plan and proposed 

management agreement. 

❏ Details for managing a project with 

scattered sites (if applicable). 

❏ Procedures for determining 

applicant eligibility. 

❏ Demonstrated capacity to manage 

the unique leasing occupancy 

restrictions of the guaranteed program. 

❏ Description of rent collection; lease 

provisions covering termination and 

eviction; copy of tenant protection and 

grievance procedures to tenants. 

❏ Description of security plan. 

❏ Plans for maintenance, repair, 

replacement, and tenant work requests. 

❏ Detailed compliance with Federal, 

Tribal, and State environmental laws. 

❏ Description of energy conservation 

measures including recycling. 

❏ Detailed management and 

maintenance staffing plans. 

❏ Information on staff training 

programs. 

❏ Statement confirming that the 

management plan includes provision for 

access to project’s books and records by 

USDA staff, USDA—Office of Inspector 

General, Government Accountability 

Office, and the Department of Justice; 

information on accounting, record 

keeping, data systems, and software. (7 

CFR 3565.351 (a)(7)). 

❏ Qualifications of the property 

manager. 

(vi) Contractor Information: 


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❏ Demonstrated experience of the 

general contractor in building 

multifamily housing of the size design, 

scope, and complexity of the project. 

Note any exceptions. 

(vii) Financing Information: 

❏ Lender’s conditional commitment 

on the lender’s letterhead with lender’s 

signature specifying the GRRHP option 

under which the project loan is to be 

guaranteed. 

❏ Sources and uses, pro forma 

statement or a comparable document. 

❏ Lender’s narrative. Must include 

the following information: 

D Summary of Loan Request 

D Financing Terms/Commitment 

D Specify how the loan is classified: 

• Existing property (7 CFR 3565.252) 

• 515 Rehab 

• New construction (7 CFR 3565.252) 

D Confirm property is located in an 

eligible rural area (7 CFR 3565.3 and 

3565.251) 

D General site requirements (7 CFR 

3565.254) 

D General site standards (7 CFR 

3565.254) 

D Borrower/Sponsor’s Qualifications 

D Property History 

D Site/Area/Neighborhood Analysis 

D Improvements/Physical Needs 

D Environmental Issues 

D Review of Market Analysis 

D Review of Market Appraisal 

D Income/Expense Pro forma 

D Valuation 

D Management Review. The following 

are examples of documentation which 

can be submitted to the Agency to 

establish evidence of the management 

agency’s experience: 

Æ Name of the Management Entity. 

Æ Management Entity Type (Owner/ 

Manager; Independent Fee Agent; 

Identity-of-Interest Agent; or Project 

Administrator). 

Æ Employer Identification Number 

(EIN). 

Æ Specify Organization Type 

(Corporation; Partnership; Individual; or 

Other). 

Æ Names, titles and Social Security 

Numbers of firm’s principals (e.g., 

general partner, president, treasurer, 

etc.). 

Æ Provide mailing addresses for the 

Company’s home office and if 

applicable, any branch offices involved 

in management of the Department of 

Housing and Urban Development (HUD) 

or other affordable multifamily projects. 

Specify the geographic area covered by 

each office. 

Æ If applicable, what year (yyyy) did 

the company begin managing: HUD or 

other affordable subsidized projects; 

HUD or other affordable unsubsidized 

projects; and/or Conventional projects. 

Æ If applicable, estimate what percent 

of company’s activities involve 

management of: Conventional projects; 

HUD or other affordable projects; 

Commercial space; and/or Other. 

Æ If applicable, the number of 

projects the company manages (both 

rentals and cooperatives): HUD or other 

affordable unsubsidized housing; HUD 

or other affordable subsidized housing; 

and/or HUD or other affordable owned 

housing. Of these, how many have HUD 

or other affordable housing held 

mortgages; are non-insured; are 

subsidized co-ops; are unsubsidized coops and the percentage of elderly; 

family; owned by a non-profit or coop; 

core city; troubled neighborhood; 

suburban and rural area. 

Æ Indicate where each of the 

following activities are administered. 

Use the following codes: C = central 

office; R = regional office; P = project 

site: Bookkeeping; landscaping; 

maintenance; purchasing; tenant 

application; certification/ 

recertifications; regular monthly subsidy 

billings; and special claims subsidy 

billings. 

Æ Number of the company’s full-time 

employees serving in the following 

supervisory or advisory roles (Ownermanagers and administrators of projects 

for the elderly should provide this 

information on project employees): 

Engineers; maintenance supervisors; 

occupancy supervisors; training 

specialists; social service coordinators; 

regional property managers; indicate 

number and percentage of minorities 

serving in supervisory or advisory roles. 

Æ Identify any professional 

memberships, licenses, certificates or 

accreditations which are related to 

property management activities and are 

held by the company, company 

executives, or employees. 

Æ Describe any purchasing 

procedures you have implemented to 

control or reduce cost (e.g., bulk 

purchasing, paying early to take 

advantage of discounts, cost 

comparisons or bids, etc.). 

Æ List any companies which regularly 

supply goods or services to federally 

funded projects and have an identity-ofinterest with the management entity or 

its principals (e.g., officers, general 

partners). Specify the type of goods and 

services provided. 

Æ Do any of the identity-of-interest 

companies listed function as ‘‘passthroughs’’—i.e., does the identity-ofinterest company purchase goods or 

services from another party and pass 

those goods or services through to the 

project? For each pass-through 

arrangement: 

(1) Name the identity-of-interest 

company involved. 

(2) Explain how the identity-ofinterest company’s compensation is 

determined. 

(3) Explain why it is more 

advantageous for the project to use the 

pass-through arrangement than to 

purchase directly from the ultimate 

supplier. 

Æ What types of property 

management procedures or operating 

manuals are used by on-site or 

supervisory staff? 

Æ What types of recurring written 

reports are prepared on project 

operations (e.g., maintenance, move-in/ 

outs, payables, comparisons of budgeted 

and actual expenses)? Specify who (by 

position title) prepares the report, 

frequency of the report, and who 

reviews the report. 

Æ Specify how frequently company 

executives or supervisory staff visit the 

projects the company manages and who 

(by position title) conducts the on-site 

visits or reviews. 

Æ If the company manages subsidized 

projects, identify by job title who 

prepares and reviews the HUD (or other 

affordable housing) required documents 

and the frequency of their review for the 

following: HUD’s (or other affordable 

housing) Initial Certifications; 

Recertifications; Regular Monthly 

Subsidy Billings; Special Claims 

Subsidy Billings; Proposals to terminate 

tenant assistance payments; Proposals to 

evict; Monthly Accounting Reports; and 

Civil Rights Tenant Characteristics/ 

Occupancy Reports. 

Æ If applicable, describe how the 

home office supervises supervisory staff 

(e.g., property managers, occupancy 

specialists, maintenance supervisors), 

who operate out of branch offices. 

Æ Describe how the company trains 

its employees in the areas listed below. 

Discuss both on-going training and 

initial training provided when the 

employee is hired. Specify the 

frequency and duration of the training 

and who/what organization conducts 

the training. Discuss training for both 

supervisory and front-line staff for the 

following: Property management 

practices; Financial and recordkeeping 

requirements; Civil rights and fair 

housing laws; and Occupancy 

Requirements of Subsidized Multifamily 

Housing Programs (if the company 

manages subsidized projects). 

Æ If applicable, specify if an owner of 

a HUD-related project or other 

affordable housing project, at any time 

during the past three years, cancelled a 

property management contract held by 

the company and identify during the 

past three years, how many HUD-related 


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projects or other affordable housing 

projects have not renewed their 

management contracts with the 

company (Explain the reasons for any 

cancellations or failure to renew and 

identify the projects involved). 

Æ If applicable, provide a list of all 

HUD Field Offices that have jurisdiction 

over the projects. For companies that 

operate in more than five Field Office 

jurisdictions, identify the five 

jurisdictions where the greatest number 

of your HUD-related projects are 

located. 

Æ List all State Agencies in whose 

jurisdiction you have managed or are 

managing State Agency-financed 

projects. For companies that operate in 

more than five States, identify the five 

where the greatest number of your State 

Agency projects are located. 

Æ List the location of all RD 

properties you have managed or are 

managing. For companies that operate 

in more than five RD jurisdictions, 

identify the five where the greatest 

number of your RD properties are 

located. 

❏ A copy of the pro forma budget 

detailing the first year and a typical 

year’s operation. (Pro formas with and 

without the interest credit award will 

serve as justification for the interest 

credit award, if applicable.) 

❏ Disclosure of any change in 

financing since application submission. 

❏ Type of utilities and utility 

allowances, if applicable. 

❏ Confirm that Operating and 

Maintenance (O&M) Reserve is at least 

two percent of the total loan amount 

(not just guaranteed portion). 

Calculation of O&M reserve for 

congregate care facilities and larger 

projects should reflect absorption rates 

in the market study to cover shortfalls 

between estimated operating budget 

calculations and rent-up assumptions. 

Funds contributed as O&M reserves are 

contributed from the borrower’s own 

resources or an irrevocable letter of 

credit and are not to be included as part 

of the total development cost 

calculation. (7 CFR 3565.402 (a)(2)) 

❏ Confirm that the construction 

contingency is equal to two percent of 

the construction contract, inclusive of 

the contractor’s fee and hard and soft 

costs. This is to be funded at or prior to 

closing by the contractor (7 CFR 

3565.402 (a)(2)). 

❏ Provide evidence of adequate 

insurance for the property (7 CFR 

3565.351). 

❏ Interest Credit Request, if 

applicable. 

Environmental Information: 

❏ Most current version of the ASTM 

Standard E 1528–14, Phase I 

Environmental Site Assessment Process 

published by the American Society for 

Testing and Materials (ASTM). 

❏ Environmental Information in 

accordance with 7 CFR part 1970 

(Environmental Policies and 

Procedures). 

❏ Statement from the State Historic 

Preservation Office (SHPO) indicating 

compliance with historic and 

architectural laws, if applicable. 

❏ Comments regarding relevant offsite conditions. 

❏ Land survey. 

Legal and Regulatory Items: 

❏ Standard Regulatory Agreement 

approved by the Agency (7 CFR 

3565.303(d)(9) and (11), or 

❏ Non-Standard Regulatory 

Agreement(s) containing provisions for 

transferability between lenders, binding 

on the borrower and their successors (7 

CFR 3565.351(a)) and requiring that the 

borrower: make all principal and 

interest payments under the note, 

maintain the property as affordable 

housing in good physical condition; 

maintain complete project books and 

records; and comply with all Federal 

Fair Housing requirements under the 

terms of the note (7 CFR 3565.351(a)). 

❏ For new construction projects that 

have five or more rental units, an 

Affirmative Fair Housing Marketing 

Plan (AFHMP) as defined in 24 CFR part 

200, subpart M, is required to be 

submitted. Federally recognized Tribes 

and Tribally Designated Housing 

Entities (TDHE) are excluded when the 

project is located on tribal land. 

❏ Rehabilitation/preservation 

transactions must submit confirmation 

in writing that the borrower is in 

compliance with the Affirmative Fair 

Housing Marketing Plan (7 CFR 

3565.353). 

❏ Certification from the lender 

verifying the use of security instruments 

prepared, executed, recorded and/or 

delivered per program guidelines and in 

compliance with the terms of the 

conditional commitment. 

❏ Certification from the lender 

verifying the use of the construction 

contract based on standard AIA 

Document A–101. If this document is 

used, it should be modified as described 

in Form RD 1924–25 or similar form. 

❏ Certification from the lender 

verifying the use of contract 

specifications, documents and forms. 

Use Form RD 1924–6 ‘‘Construction 

Contract’’ or similar document as 

required by Executive Order 11246, 

Non- Discrimination in Employment by 

Construction Contractors. 

V. Application Review Information 

(1) Scoring of Priority Criteria for 

Selection: Complete applications 

received will be scored based on the 

criteria set forth below to establish 

priority in the event there is insufficient 

funding. Per 7 CFR 3565.5(b), priority 

will be given to projects in rural areas 

in which borrowers can best utilize loan 

guarantees and where loan guarantees 

are needed the most, as determined by 

the Agency based on information the 

Secretary considers appropriate. To 

meet important program goals, priority 

points will be given for projects that 

qualify for reduced annual fees, 

including workforce housing, section 

515 or section 514/516 preservation and 

green and energy efficient housing 

projects as permitted in 7 CFR 

3565.5(b). 

The priority scoring criteria for 

projects are listed below. 

Priority 1—Properties located in 

eligible rural communities with the 

lowest populations. One point is 

awarded if the city or town population 

is under 10,000 people. 

Priority 2—Properties in the mostneedy communities. One point is 

awarded if the property is located in a 

persistent poverty county as defined by 

the USDA Economic Research Service. 

Priority 3—Properties that 

demonstrate partnering and leveraging 

of third-party funding. One point is 

awarded if the loan to total development 

cost ratio is less than 50%. 

Priority 4—Properties with the highest 

ratio of 3–5 bedroom units to total units. 

One point is awarded if the ratio of 3– 

5 bedroom units to total units is 25% or 

more. 

Priority 5—Properties on tribal land. 

One point is awarded if the property is 

located on tribal land. 

Priority 6—Properties with a lower 

Section 538 guaranteed loan interest 

rate. One point is awarded if the interest 

rate is equal to or less than 130% of the 

long-term annual applicable Federal rate 

(AFR Table 1) at the time of application 

submission to the Agency. 

Priority 7—Properties determined 

eligible for reduced annual section 538 

fees under the Federal Register notice 

published on March 3, 2022 (87 FR 

12077). One point awarded for each of 

the criteria met for reduced annual fees: 

(1) Workforce Housing (Rents Between 

80%–115% Area Median Income), or (2) 

Preservation of Existing Section 515 and 

Section 514/516 Rural Development 

Properties, or (3) Section 538 New 

Construction or Substantial 

Rehabilitation Meeting Green or Energy 

Efficiency Requirements. Projects will 

be held to the standards and 


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Federal Register / Vol. 89, No. 245 / Friday, December 20, 2024 / Rules and Regulations 104039 

requirements for the selected energy 

program that were in effect at the time 

the application was submitted to the 

Agency. 

Priority 8—Energy consumption 

performance. One point will be awarded 

if the lender obtains the borrower’s 

agreement to enroll in the United States 

Environmental Protection Agency’s 

ENERGY STAR Portfolio Manager and 

document and report energy 

consumption for the property to the 

Agency. Along with the collection of the 

borrower’s annual reports (outlined in 7 

CFR 3565.351), to obtain the priority 

points the lender must collect the 

Statement of Energy Performance (SEP) 

report from the borrower and submit it 

to the Agency for review. This will 

allow the Agency to track the energy 

consumption performance of the 

property. Borrowers may access the 

EPA’s ENERGY STAR Portfolio Manager 

software at no cost. 

Priority 9—Projects that include Low 

Income Housing Tax Credits financing 

that have waived or will waive their 

Qualified Contract Rights. Twelve 

points will be awarded to projects that 

include LIHTC financing in which the 

owner has agreed to waive the Qualified 

Contract rights. A document certifying 

that the rights have been waived must 

be included with the complete 

application. 

Priority 10—Projects that have or are 

assuming section 514/515 loans that 

will naturally mature within three years 

from application submission will 

receive one point. 

Priority 11—Projects Providing Access 

to Supportive Services for Tenants. One 

point will be awarded to projects that 

employ a Service Coordinator, 

documented as a project expense in the 

most recent agency-approved Form RD 

3560–7 Multifamily Housing Project 

Budget/Utility Allowance, or include 

units designated as permanent 

supportive units or for homeless 

households, documented by an 

agreement with another Federal or State 

funding source. To receive points, the 

applicant must describe the basis for 

claiming points (i.e., service coordinator 

and/or permanent supportive housing/ 

homeless unit set-aside) and provide 

documentation to include the Form 

3560–7 and/or an agreement describing 

the terms and conditions for the units 

designated as permanent supportive 

housing or for homeless households, as 

applicable. 

If there is insufficient funding 

available to fund all approved projects 

and projects have equal scores based on 

the priority criteria, the Agency will 

rank the tied projects based on the 

scores for Priority 7. If there is still a tie, 

the Agency will obligate funds in the 

order in which the applications were 

approved by the Agency. 

(2) Notifications: Applications will be 

reviewed concurrently for completeness 

and eligibility. The Agency will notify 

the lender generally within 30 days of 

receipt of a complete application. 

Incomplete applications, which 

includes supporting documentation, 

will be returned to the lender. The 

lender may reapply in the future with a 

new and complete application. 

VI. Award Administration Information 

(1) Obligation of Program Funds: The 

Agency will only obligate funds to 

projects that meet the requirements 

under 7 CFR part 3565 and this 

notification that have submitted a 

complete application and have 

undergone a satisfactory environmental 

review in accordance with the National 

Environmental Protection Act (NEPA). If 

there is sufficient funding, once a 

complete application is received and 

approved (and any request for GRRHP 

approved lender status is granted), the 

Agency will obligate funds. The Agency 

considers the program to have 

insufficient funds when the program’s 

annually appropriated funding amount 

has 10% (ten percent) or less remaining. 

If there is insufficient funding, the 

Agency will review the scores for each 

approved project and rank them 

accordingly. As funding becomes 

available, funding for approved projects 

will be obligated based on the rankings 

from high to low scores as described in 

section V. (Application Review 

Information). 

In the event that the Agency suspends 

the ability to receive applications until 

sufficient funding becomes available, a 

notice will be made to the industry via 

GovDelivery and/or some other form of 

acceptable electronic notice. 

(2) Conditional Commitment: Once 

the required documents for obligation 

are received and all applicable 

requirements have been met, including 

NEPA requirements, and to the extent 

funding is available, the Agency will 

issue a Conditional Commitment. The 

Conditional Commitment will stipulate 

the conditions that must be fulfilled 

before the issuance of a guarantee, in 

accordance with 7 CFR 3565.303(b). 

A Conditional Commitment must be 

issued by the Agency before any 

construction begins on the project. 

Drawings (plans) and specifications for 

building construction must be 

submitted to the Agency and concurred 

by the Agency before any construction 

begins on the project. Applicants are 

reminded that in accordance with 7 CFR 

3565.206(g), refinancing of an existing 

debt is not an eligible use of Section 538 

GRRHP loan funds, except in the case of 

an existing guaranteed loan where the 

Agency determines that the refinancing 

is in the government’s interest or 

furthers the objectives of the program. 

(3) Issuance of Guarantee: The 

Agency will issue a guarantee to the 

lender for a property in accordance with 

7 CFR 3565.303. No guarantee can be 

issued without a complete application, 

review of appropriate certifications, 

satisfactory assessment of the 

appropriate level of environmental 

review, and the completion of any 

conditional requirements. 

(4) Tracking of Average Rents: After 

the loan closes, the lender will track the 

initial affordable rent at each property 

funded and the average market rent in 

the area. The difference between these 

two rents will provide the lender with 

a measure of the impact the GRRHP has 

on affordable rents. 

Build America, Buy America 

Funding to Non-Federal Entities. 

Awardees that are Non-Federal Entities, 

defined pursuant to 2 CFR 200.1 as any 

State, local government, Indian Tribe, 

Institution of Higher Education, or 

nonprofit organization, shall be 

governed by the requirements of section 

70914 of the Build America, Buy 

America Act (BABAA) within the 

Infrastructure Investment and Jobs Act 

(Pub. L. 117–58), and its implementing 

regulations at 2 CFR part 184. Any 

requests for waiver of these 

requirements must be submitted 

pursuant to USDA’s guidance available 

online at https://www.usda.gov/ocfo/ 

federal-financial-assistance-policy/ 

USDABuyAmericaWaiver. 

Non-Discrimination Statement 

In accordance with Federal civil 

rights law and U.S. Department of 

Agriculture (USDA) civil rights 

regulations and policies, the USDA, its 

Mission Area, 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, familial/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 


ddrumheller on DSK120RN23PROD with RULES1
104040 Federal Register / Vol. 89, No. 245 / Friday, December 20, 2024 / Rules and Regulations 

1 In June 2024, PBGC issued a final rule at 89 FR 

48291 updating the interest, mortality, and expense 

assumptions used to determine the present value of 

a single-employer plan’s benefits when it terminates 

in a distress or involuntary termination. This rule 

moved the expected retirement ages tables from 

Appendix D in part 4044 to § 4044.58. 

2PBGC’s June 2024 final rule does not apply to 

calculations where the valuation date is before July 

31, 2024. 

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, Director, Office of 

Adjudication, 1400 Independence 

Avenue SW, Washington, DC 20250– 

9410; 

(2) Fax: (202) 690–7442; or 

(3) Email: program.intake@usda.gov. 

USDA is an equal opportunity 

provider, employer, and lender. 

Yvonne Hsu, 

Acting Administrator, Rural Housing Service. 

[FR Doc. 2024–30330 Filed 12–19–24; 8:45 am] 

BILLING CODE 3410–XV–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4044 

Allocation of Assets in SingleEmployer Plans; Valuation of Benefits 

and Assets; Expected Retirement Age; 

Missing Participants Mortality 

Assumption 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: This rule amends the Pension 

Benefit Guaranty Corporation’s 

regulation on Allocation of Assets in 

Single-Employer Plans by substituting a 

new table for determining expected 

retirement ages for participants in 

pension plans undergoing distress or 

involuntary termination with valuation 

dates falling in 2025. This table is 

needed to compute the value of early 

retirement benefits and, thus, the total 

value of benefits under a plan. This rule 

also provides the mortality assumption 

for use with PBGC’s missing 

participants program for determination 

dates in 2025. 

DATES: This rule is effective January 1, 

2025. 

FOR FURTHER INFORMATION CONTACT: 

Hilary Duke (duke.hilary@pbgc.gov), 

Assistant General Counsel for 

Regulatory Affairs, Office of the General 

Counsel, Pension Benefit Guaranty 

Corporation, 445 12th Street SW, 

Washington, DC 20024–2101, 202–229– 

3839. If you are deaf or hard of hearing, 

or have a speech disability, please dial 

7–1–1 to access telecommunications 

relay services. 

SUPPLEMENTARY INFORMATION: 

Background 

The Pension Benefit Guaranty 

Corporation (PBGC) administers the 

pension plan termination insurance 

program under title IV of the Employee 

Retirement Income Security Act of 1974 

(ERISA). PBGC’s regulation on 

Allocation of Assets in Single-Employer 

Plans (29 CFR Part 4044) sets forth (in 

subpart B) the methods for valuing plan 

benefits of terminating single-employer 

plans covered under title IV. Guaranteed 

benefits and benefit liabilities under a 

plan that is undergoing a distress 

termination must be valued in 

accordance with subpart B of part 4044. 

In addition, when PBGC terminates an 

underfunded plan involuntarily 

pursuant to ERISA section 4042(a), it 

uses the subpart B valuation rules to 

determine the amount of the plan’s 

underfunding. 

Expected Retirement Age Low, Medium, 

High Tables 

Under § 4044.51(b) of the asset 

allocation regulation, early retirement 

benefits are valued based on the annuity 

starting date, if a retirement date has 

been selected, or the expected 

retirement age, if the annuity starting 

date is not known on the valuation date. 

Sections 4044.55 through 4044.58 set 

forth rules for determining the expected 

retirement ages for plan participants 

entitled to early retirement benefits. 

Section 4044.58 contains tables to be 

used in determining the expected early 

retirement ages.1

Table I to § 4044.58 (Selection of 

Retirement Rate Category) is used to 

determine whether a participant has a 

low, medium, or high probability of 

retiring early. The determination is 

based on the year a participant would 

reach ‘‘unreduced retirement age’’ 

(URA) (i.e., the earlier of the normal 

retirement age or the age at which an 

unreduced benefit is first payable) and 

the participant’s monthly benefit at the 

unreduced retirement age. The table 

applies only to plans with valuation 

dates in the current year and is updated 

annually by PBGC to reflect changes in 

the cost of living. 

Tables II–A, II–B, and II–C (Expected 

Retirement Ages for Individuals in the 

Low, Medium, and High Categories 

respectively) are used to determine the 

expected retirement age after the 

probability of early retirement has been 

determined using Table I. These tables 

establish, by probability category, the 

expected retirement age based on both 

the earliest age a participant could retire 

under the plan and the unreduced 

retirement age. This expected retirement 

age is used to compute the value of the 

early retirement benefit and, thus, the 

total value of benefits under the plan. 

This document amends § 4044.58 to 

replace Table I–24 with Table I–25 to 

provide an updated correlation, 

appropriate for calendar year 2025, 

between the amount of a participant’s 

benefit and the probability that the 

participant will elect early retirement. 

Table I–25 will be used to value benefits 

in plans with valuation dates during 

calendar year 2025. 

Missing Participants Mortality 

Assumptions 

PBGC’s regulation on Missing 

Participants (29 CFR part 4050) provides 

that the mortality assumption used to 

determine certain amounts to be 

transferred on behalf of a missing 

participant from a terminating defined 

benefit plan to PBGC is the mortality 

table in § 4044.53(h). The table currently 

provides the mortality assumption only 

for benefit determination dates on July 

31 2 and later in 2024. This rule updates 

the table to provide the mortality 

assumption for benefit determination 

dates in 2025. 

Compliance With Regulatory 

Requirements 

PBGC has determined that notice of, 

and public comment on, this rule are 

impracticable, unnecessary, and 

contrary to the public interest. PBGC’s 

update of § 4044.58 and § 4044.53(h) for 

calendar year 2025 are routine. If a plan 

has a valuation date in 2025, the plan 

administrator needs the updated table in 


ddrumheller on DSK120RN23PROD with RULES1