This section of the FEDERAL REGISTER

contains documents other than rules or

proposed rules that are applicable to the

public. Notices of hearings and investigations,

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section.

Notices Federal Register

25829 

Vol. 75, No. 89 

Monday, May 10, 2010 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

Notice of Acceptance of Proposals for 

the Section 538 Multi-Family Housing 

Guaranteed Rural Rental Housing 

Program (GRRHP) Demonstration 

Program for Fiscal Year 2010 

AGENCY: Rural Housing Service, USDA. 

ACTION: Notice. 

SUMMARY: Through this Notice the Rural 

Housing Service (Agency) announces 

the implementation of a demonstration 

program under the section 538 

Guaranteed Rural Rental Housing 

Program (GRRHP) pursuant to 7 CFR 

3565.4 and 7 CFR 3565.17 

(Demonstration Programs) for Fiscal 

Year (FY) 2010. The Demonstration 

Program’s purpose is to test the viability 

and efficacy of a continuous loan note 

guarantee through the construction and 

permanent loan financing phases of a 

project. Those applications that meet 

the Demonstration Program’s qualifying 

criteria and are selected to participate 

will be offered one loan note guarantee 

upon closing of the construction loan 

that will be in effect throughout both of 

the project’s construction and 

permanent phases without interruption. 

The Agency will permit 

approximately $10 million of program 

loan authority on loans that have 

already been obligated to participate in 

this Demonstration Program. Expenses 

incurred in developing applications will 

be at the applicant’s risk. The following 

paragraphs outline the timeframes, 

eligibility requirements, lender 

responsibilities, and the overall 

response and application processes. 

Eligible Lenders wishing to have their 

GRRHP obligated, but unfunded 

guaranteed 538 applications considered 

for the FY 2010 Demonstration Program 

must send a signed request on its 

letterhead with the proposed project 

details as outlined in the 

‘‘DEMONSTRATION PROGRAM 

RESPONSE SUBMISSION ADDRESS’’ 

section of this Notice. No other 

applications will be considered. 

Demonstration Program Guidelines 

The following guidelines are being 

provided to facilitate a structured 

implementation of the program: 

1. Demonstration guarantee. The 

Demonstration guarantee is a guarantee 

that will be offered to selected lenders 

who submit applications in response to 

this Notice. The Demonstration 

guarantee will consist of one loan note 

guarantee that will be issued upon 

closing of the construction loan and will 

be in effect throughout both of the 

project’s construction and permanent 

financing phases without interruption. 

2. Conditional commitment. Upon 

approval of an eligible previously 

obligated guaranteed 538 application 

from an approved lender, the Agency 

will modify the outstanding conditional 

commitment to provide a Demonstration 

guarantee for the construction and 

permanent financing phases of the 

project. 

3. Guarantee percentage and payment. 

Both construction loan advances and 

permanent loans are eligible for a 

guarantee subject to the following 

limitations: 

Construction loan advances and 

permanent loans. The Agency can 

guarantee the ‘‘construction and 

permanent’’ financing phases of a 

project. The Agency cannot, however, 

guarantee only the ‘‘construction’’ 

financing phase of a project. Guarantees 

under the Demonstration guarantee will 

cover construction loan advances and 

the subsequent permanent loan. The 

maximum guarantee of construction 

advances will not at any time exceed the 

lesser of: 90 percent of the amount of 

principal and interest up to default 

advanced for eligible uses of loan 

proceeds; and 90 percent of the original 

principal amount and interest up to 

default of a loan. Penalties incurred as 

a result of default are not covered by the 

guarantee. The Agency may provide a 

lesser guarantee based upon its 

evaluation of the credit quality of the 

loan. 

4. Ability. A lender making a 

construction loan must demonstrate an 

ability to originate and service 

construction loans. 

5. Guarantee during construction. The 

Agency will issue a Demonstration 

guarantee only to an approved lender. 

6. Demonstration guarantee program 

compliance requirement. For a 

Demonstration guarantee, after the loan 

note guarantee is issued, the following 

items will have to be submitted and 

approved by the Agency within the 

timeframe stipulated by the Agency: 

(i) A certificate of substantial 

completion; 

(ii) A certificate of occupancy or 

similar evidence of local approval; 

(iii) A final cost certification in a form 

acceptable to the Agency; 

(iv) A complete copy of the 

permanent loan closing docket; if a 

separate closing is conducted for the 

permanent loan; and 

(v) Any other information necessary 

for the Agency to comply with its 

regulations. 

Items (i), (ii), and (iii) are only required 

if the project is constructed. To facilitate 

the implementation of the program, an 

addendum may be attached to certain 

program forms to include relevant 

Demonstration Program requirements. 

The selected applicants will be 

subject to the Demonstration Program 

guidelines in this Notice, and GRRHP’s 

controlling statute, regulations, and 

handbook as amended. The GRRHP 

operates under the Housing Act of 1949, 

as amended, particularly section 538, 

and regulations at 7 CFR part 3565. The 

GRRHP Origination and Servicing 

Handbook (HB–1–3565) is available to 

provide lenders and the general public 

with guidance on program 

administration. HB–1–3565, which 

contains a copy of 7 CFR part 3565 in 

Appendix 1, can be found at the Rural 

Development Instructions Web site 

address http://www.rurdev.usda.gov/ 

regs/hblist.html#hbw6. 

Demonstration Program Eligibility: 

GRRHP obligated applications that meet 

the following criteria will be eligible for 

consideration to be selected into the 

Demonstration Program: 

1. The project must have been 

awarded and continue to receive Low 

Income Housing Tax Credits. 

2. The project must have a loan to cost 

(LTC) ratio equal to or lower than 50%. 

3. The Lender must have submitted a 

timely response to this Notice in 

accordance with the 

‘‘DEMONSTRATION PROGRAM 

RESPONSE SUBMISSION ADDRESS’’ 

section of this Notice. 


jlentini on DSKJ8SOYB1PROD with NOTICES
25830 Federal Register / Vol. 75, No. 89 / Monday, May 10, 2010 / Notices 

4. A Lender must have submitted its 

application under the GRRHP 2009 

Notice published January 21, 2009, 

Volume 74 FR 3551–3558, or the 

GRRHP 2009 Notice published on June 

26, 2009, Volume 74 FR 30503–30510 or 

the GRRHP 2010 Notice published 

February 26, 2010, Volume 75 FR 8896– 

8902. 

5. The application to be considered 

must have been obligated from October 

1, 2009 to December 17, 2010. However, 

if the Demonstration Program funds 

have not been fully utilized by 

December 17, 2010, the Agency may 

consider applications obligated on or 

after October 1, 2008. 

6. The Lender must not have closed 

the construction loan prior to its 

selection to participate in the 

Demonstration Program. 

Demonstration Program Selection 

Process 

Selections from qualified applications 

that have requested consideration and 

met all requirements for this 

Demonstration Program will be based on 

priority scores they received on their 

previously submitted applications, with 

the highest scoring applications being 

selected first, until all available 

Demonstration Program authority is 

used. In the event of a tie, priority will 

be given to the application that is in the 

smaller rural community, and in case of 

a subsequent tie to the application that 

has the lowest LTC ratio. 

The first round of selections into the 

Demonstration Program will be made on 

May 20, 2010. In the event there are not 

enough qualified requests for selection 

into the Demonstration Program to 

utilize all the available Demonstration 

Program authority, then until all funds 

are exhausted, an additional selection 

process will be conducted on the 3rd 

Friday of each month starting 

September 17, 2010. December 17, 2010, 

will be the last possible selection date 

unless the Final Rule is published as 

explained below. All applicants will be 

notified of the selection results no later 

than 30 business days from the date of 

selection. 

DATES: Effective Dates: The GRRHP 

intends to incorporate the guarantee 

offered under this demonstration as a 

permanent part of the program. To that 

end we have published in the Federal 

Register (January 29, 2009, Volume 75 

FR 4707–4710) a proposed rule for 

‘‘Continuous Construction-Permanent 

Loan Guarantees.’’ This Notice will 

terminate upon the earlier of either the 

publication date of the final rule or 

December 17, 2010. 

Demonstration Program Response 

Submission Address 

Eligible lenders wishing to have their 

obligated applications considered for 

selection into the Demonstration 

Program must submit a signed request 

(not to exceed one page) on its 

letterhead that includes the following 

information: 

1. Developer’s Name 

2. Borrower’s Name 

3. Project’s Name 

4. Project’s Address (City and State) 

5. Project Type (Family, Senior, or 

Mixed) 

6. Project’s Total Units 

7. Project’s Total Development Cost 

(TDC) 

8. Amount of 538 Loan Guarantee 

9. Amount of Tax Credits Awarded 

10. Amount and Source of Other 

Financing 

11. Loan to Cost (LTC) % 

12. Area Population 

13. Date obligated or date of 

Conditional Commitment 

Send the Demonstration Program 

Response Submission Letter with all of 

the information listed above, along with 

a copy of the State Office’s ‘‘Proceed 

with Application/NOFA Response 

Selection’’ letter and a copy of the tax 

credit award notification to: Tammy S. 

Daniels, Financial and Loan Analyst, 

Multi-Family Housing Guaranteed Loan 

Division, Guaranteed Rural Rental 

Housing Program, USDA Rural 

Development, South Agriculture 

Building, Room 1233, STOP 0781, 1400 

Independence Avenue, SW., 

Washington, DC 20250–0781. 

Requests may also be faxed to 202– 

690–3444 or sent by email (signed PDF 

copies of the above submissions) to 

tammy.daniels@wdc.usda.gov. Eligible 

lenders mailing a request must provide 

sufficient time to permit delivery to the 

submission address. If all the funds set 

aside for the Demonstration Program 

have not been utilized, the Agency will 

continue to accept requests for inclusion 

into the FY 2010 Demonstration 

Program until December 17, 2010 or 

publication of the final rule if earlier. 

Acceptance by a U.S. Post Office or 

private mailer does not constitute 

delivery. Postage due responses and 

applications will not be accepted. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995, the information 

collection requirements contained in 

this Notice is approved by the Office of 

Management and Budget (OMB) under 

OMB Control Number 0575–0174. 

Nondiscrimination Statement 

‘‘The U.S. Department of Agriculture 

(USDA) prohibits discrimination in all 

its programs and activities on the basis 

of race, color, national origin, age, 

disability, and where applicable, sex, 

marital status, familial status, parental 

status, religion, sexual orientation, 

genetic information, political beliefs, 

reprisal, or because all or a part of an 

individual’s income is derived from any 

public assistance program. (Not all 

prohibited bases apply to all programs.) 

Persons with disabilities who require 

alternative means for communication of 

program information (Braille, large 

print, audiotape, etc.) should contact 

USDA’s TARGET Center at (202) 720– 

2600 (voice and TDD). To file a 

complaint of discrimination write to 

USDA, Director, Office of Civil Rights, 

1400 Independence Avenue, SW., 

Washington, DC 20250–9410 or call 

(800) 795–3272 (voice) or (202) 720– 

6382 (TDD). USDA is an equal 

opportunity provider and employer.’’ 

Dated: May 3, 2010. 

Tammye Trevin ̃ o, 

Administrator, Rural Housing Service. 

[FR Doc. 2010–10929 Filed 5–7–10; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF AGRICULTURE 

Food and Nutrition Service 

Agency Information Collection 

Activities: Proposed Collection; 

Comment Request, Supplemental 

Nutrition Assistance Program 

Regulations, Part 275—Quality Control 

AGENCY: Food and Nutrition Service, 

USDA. 

ACTION: Notice. 

SUMMARY: As required by the Paperwork 

Reduction Act of 1995, this notice 

invites the general public and other 

public agencies to comment on the 

proposed information collection for the 

Supplemental Nutrition Assistance 

Program’s Regulations, Part 275— 

Quality Control. Specifically, the 

burden associated with the collection of 

information for the sampling plan, 

arbitration process, and the good cause 

process. This collection is a revision of 

a currently approved collection, OMB 

No. 0584–0303. 

DATES: Written comments must be 

submitted on or before July 9, 2010. 

ADDRESSES: Comments are invited on: 

(a) Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 


jlentini on DSKJ8SOYB1PROD with NOTICES