This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

50222

Vol. 70, No. 165

Friday, August 26, 2005

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

7 CFR Part 1924 

RIN 0575–AC60 

Surety Requirements

AGENCY: Rural Housing Service, USDA.

ACTION: Proposed rule.

SUMMARY: The Rural Housing Service is 

amending its regulations to change the 

threshold for surety requirements 

guaranteeing payment and performance 

from a $100,000 contract amount to the 

maximum Rural Development Single 

Family Housing area lending limit. This 

limit will vary by locality. This will 

liberalize the requirement for surety and 

take into account the increased 

construction cost of single family homes 

in Rural Development’s Single Family 

Housing Program. This will ease the 

burden on small contractors for whom 

obtaining surety is difficult and 

expensive, thereby reducing costs to our 

single family housing borrowers.

DATES: Written or e-mail comments 

must be received on or before October 

25, 2005.

ADDRESSES: You may submit to this rule 

by any of the following methods: 

• Agency Web Site: http://

rdinit.usda.gov/regs/. Follow the 

instructions for submitting comments 

on the Web Site. 

• E-Mail: comments@one.usda.gov.

Include the RIN number (0575–AC60) in 

the subject line of the message. 

• Federal eRulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Submit written comments via 

the U.S. Postal Service to the Branch 

Chief, Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, STOP 0742, 1400 

Independence Avenue SW., 

Washington, DC 20250–0742. 

• Hand Delivery/Courier: Submit 

written comments via Federal Express 

Mail or another mail courier service 

requiring a street address to the Branch 

Chief, Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, 300 7th Street, SW., 7th 

Floor, Suite 701, Washington, DC 20024. 

All written comments will be 

available for public inspection during 

regular work hours at the 300 7th Street, 

SW., address listed above.

FOR FURTHER INFORMATION CONTACT:

Michel Mitias, Technical Support 

Branch, Program Support Staff, Rural 

Housing Service, U.S. Department of 

Agriculture, STOP 0761, 1400 

Independence Avenue SW., 

Washington, DC 20250–0761; 

Telephone: 202–720–9653; FAX: 202–

690–4335; E-mail: 

michel.mitias@usda.gov.

SUPPLEMENTARY INFORMATION:

Classification 

This rule has been determined to be 

not significant for purposes of Executive 

Order 12866 and, therefore, has not 

been reviewed by the Office of 

Management and Budget (OMB). 

Civil Justice Reform 

In accordance with this rule: (1) All 

State and local laws and regulations that 

are in conflict with this rule will be 

preempted, (2) no retroactive effect will 

be given to this rule, and (3) 

administrative proceedings in 

accordance with 7 CFR part 11 must be 

exhausted before bringing suit in court 

challenging action taken under this rule, 

unless those regulations specifically 

allow bringing suit at an earlier time. 

Regulatory Flexibility Act 

The Administrator of the Rural 

Housing Service has determined that 

this rule will not have a significant 

economic impact on a substantial 

number of small entities as defined in 

the Regulatory Flexibility Act (5 U.S.C. 

601 et seq.). New provisions included in 

this rule will not impact a substantial 

number of small entities to a greater 

extent than large entities. Therefore, a 

regulatory flexibility analysis was not 

performed. 

Paperwork Reduction Act 

There are no new reporting and 

recordkeeping requirements associated 

with this rule. 

Unfunded Mandates Reform Act 

This rule contains no Federal 

mandates (under the regulatory 

provisions of title II of the Unfunded 

Mandates Reform Act of 1995) for State, 

local, and tribal governments or the 

private sector. Thus, this rule is not 

subject to the requirements of sections 

202 and 205 of the Unfunded Mandates 

Reform Act of 1995. 

Environmental Impact Statement 

This document has been reviewed in 

accordance with 7 CFR part 1940, 

subpart G, ‘‘Environmental Program.’’ 

RHS has determined that this action 

does not constitute a major Federal 

action significantly affecting the quality 

of the human environment, and, in 

accordance with the National 

Environmental Policy Act of 1969, 

Public Law 91–190, an Environmental 

Impact Statement is not required. 

Programs Affected

The programs affected are listed in the 

Catalog of Federal Domestic Assistance 

under Number 10.410, Very Low to 

Moderate Income Housing Loans, and 

Number 10.415, Rural Rental Housing 

Loans. Rural Rental Housing Loans will 

be affected for those construction 

contracts above the applicable Rural 

Development area loan limit. 

Intergovernmental Review 

RHS conducts intergovernmental 

consultation in the manner delineated 

in RD Instruction 1940–J, 

‘‘Intergovernmental Review of Rural 

Development Programs and Activities,’’ 

and in 7 CFR part 3015, subpart V. The 

Very Low to Moderate Income Housing 

Loans Program, Number 10.410, is not 

subject to the provisions of Executive 

Order 12372, which requires 

intergovernmental consultation with 

State and local officials. Rural Rental 

Housing Loans Program, Number 

10.415, conducts intergovernmental 

reviews on a case-by-case basis. An 

intergovernmental review for this 

revision is not required or applicable. 

Background 

RHS administers the Direct Single 

Family Housing Loan and Grant 

program pursuant to 7 CFR part 3550, 

designed to assist very low and lowincome households to obtain modest, 

decent, safe, and sanitary housing for 

use as permanent residences in rural 

areas. Direct loans may be used to buy, 

build, or improve the applicant’s 

permanent residence. 

Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Proposed Rules 50223

RHS regulations in 7 CFR part 1924, 

subpart A, contain requirements for 

construction which is funded with 

direct RHS loans, including direct single 

family housing loans. The regulation 

also applies to larger direct funded 

construction projects by other agencies 

in the Rural Development mission area. 

This regulation was originally 

promulgated on March 13, 1987 in 52 

FR 41833. One of the requirements in 

this regulation is that for construction 

work performed by the contract method 

(where the borrower contracts with a 

builder for the construction), the builder 

must obtain a surety bond guaranteeing 

payment and performance in the 

amount of the contract when the 

contract exceeds $100,000. This amount 

has remained unchanged since 1987. In 

1987, a single family house constructed 

and financed under the direct single 

family housing loan program would not 

exceed $100,000. Since 1987, 

construction costs for single family 

houses financed by RHS have 

dramatically increased so that now 

construction costs frequently exceed 

$100,000. The requirement that builders 

obtain surety bonds when the 

construction contract exceeds $100,000 

has made it difficult for contractors to 

compete for direct single family housing 

projects financed by RHS. While the 

regulation contains internal exceptions 

for the $100,000 requirement, none of 

these exceptions satisfactorily resolves 

the cost burden for builders of direct 

single family housing. 

The revision to 7 CFR 

1924.6(a)(3)(i)(A) will facilitate the 

process of construction by raising the 

threshold when the contractor must 

acquire surety bonds. The purpose of 

this regulation is to revise the existing 

surety bond requirement for direct 

funded single family housing. The new 

threshold will be when the contract 

exceeds the applicable RHS area single 

family housing loan limit as established 

pursuant to 7 CFR 3550.63 and the limit 

for any particular area is available from 

any Rural Development office. 

The provisions in 7 CFR 

1924.6(a)(3)(i) that require payment and 

performance bonds when construction 

is under this threshold amount remain 

unchanged. RHS has determined that 

changing the threshold for payment and 

performance bonds provides for more 

flexibility, is locality based, borrowers 

are adequately protected, and housing 

costs are reduced.

List of Subjects in 7 CFR Part 1924 

Agriculture, Construction 

management, Construction and repair, 

Energy conservation, Housing, Loan 

programs—Agriculture, Low and 

moderate income housing.

For the reasons set forth in the 

preamble, Chapter XVIII, Title 7, of the 

Code of Federal Regulations is proposed 

to be amended as follows:

PART 1924—CONSTRUCTION AND 

REPAIR 

1. The authority citation for part 1924 

continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 

U.S.C. 1480.

Subpart A—Planning and Performing 

Construction and Other Development 

2. Section 1924.6 is amended by 

revising paragraph (a)(3)(i)(A) to read as 

follows:

§ 1924.6 Performing development work.

* * * * *

(a) * * * 

(3) * * * 

(i) * * * 

(A) The contract exceeds the 

applicable Rural Development Single 

Family Housing area loan limit as per 7 

CFR 3550.63. (Loan limits are available 

at the local Rural Development field 

office.)

* * * * *

Dated: July 28, 2005. 

Russell T. Davis, 

Administrator, Rural Housing Service.

[FR Doc. 05–17026 Filed 8–25–05; 8:45 am] 

BILLING CODE 3410–XV–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2005–21998; Directorate 

Identifier 2005–CE–40–AD] 

RIN 2120–AA64 

Airworthiness Directives; GROB–

WERKE Model G120A Airplanes

AGENCY: Federal Aviation 

Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to adopt a 

new airworthiness directive (AD) for all 

GROB–WERKE Model G120A airplanes. 

This proposed AD would require you to 

inspect for signs of any chafing damage 

to the attachment cables of the switch 

panels below the left-hand instrument 

panel, any damaged switch below the 

switch panels of the left-hand 

instrument panel, any damaged (that is, 

sharp) edge of the support tray for the 

attachment cables of the switch panels 

below the left-hand instrument panel; 

correct any damage found during the 

inspection; and apply a layer of anti-rub 

(protective padding) strips to the edge of 

the support tray. This proposed AD 

results from mandatory continuing 

airworthiness information (MCAI) 

issued by the airworthiness authority for 

Germany. We are issuing this proposed 

AD to detect, correct, and prevent 

chafing of the cables against the rear lip 

of the tray that holds the switch panels. 

Chafing of the electrical cables could 

result in smoke or fire in the cockpit.

DATES: We must receive any comments 

on this proposed AD by September 26, 

2005.

ADDRESSES: Use one of the following to 

submit comments on this proposed AD: 

• DOT Docket Web site: Go to http:/

/dms.dot.gov and follow the instructions 

for sending your comments 

electronically. 

• Government-wide rulemaking Web 

site: Go to http://www.regulations.gov

and follow the instructions for sending 

your comments electronically. 

• Mail: Docket Management Facility; 

U.S. Department of Transportation, 400 

Seventh Street, SW., Nassif Building, 

Room PL–401, Washington, DC 20590–

001. 

• Fax: 1–202–493–2251. 

• Hand Delivery: Room PL–401 on 

the plaza level of the Nassif Building, 

400 Seventh Street, S.W., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

To get the service information 

identified in this proposed AD, contact 

GROB Luft-und Raumfahrt, 

Lettenbachstrasse 9, D–86874 

Tussenhausen-Mattsies, Federal 

Republic of Germany; telephone: 011 49 

8268 998139; facsimile: 011 49 8268 

998200. 

To view the comments to this 

proposed AD, go to http://dms.dot.gov.

This is docket number FAA–2005–

21998; Directorate Identifier 2005–CE–

40–AD.

FOR FURTHER INFORMATION CONTACT: Karl 

Schletzbaum, Aerospace Engineer, FAA, 

Small Airplane Directorate, 901 Locust, 

Room 301, Kansas City, Missouri 64106; 

telephone: (816) 329–4146; facsimile: 

(816) 329–4090.

SUPPLEMENTARY INFORMATION: 

Comments Invited 

How do I comment on this proposed 

AD? We invite you to submit any 

written relevant data, views, or 

arguments regarding this proposal. Send 

your comments to an address listed 

under ADDRESSES. Include the docket