34416 Federal Register / Vol. 61, No. 128 / Tuesday, July 2, 1996 / Notices

Type of Request: Extension of a

currently approved information

collection.

Abstract: The Community Facilities

loan program is authorized by Section

306 of the Consolidated Farm and Rural

Development Act (7 U.S.C. 1926) to

make loans to public entities, nonprofit

corporations, and Indian tribes for the

development of community facilities for

public use in rural areas.

Community facilities programs have

been in existence for many years. These

programs have financed a wide range of

projects varying in size and complexity

from large general hospitals to small

rural water systems. The facilities

financed are designed to promote the

development of rural communities by

providing the infrastructure necessary to

attract residents and rural jobs.

Information will be collected by the

field offices from applicants, borrowers,

and consultants. This information will

be used to determine applicant/

borrower eligibility, project feasibility,

and to ensure borrowers operate on a

sound basis and use funds for

authorized purposes. Failure to collect

proper information could result in

improper determination of eligibility,

improper use of funds, and/or unsound

loans.

Expiration Date of Approval:

December 31, 1996.

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average 2.47 hours per

response.

Respondents: Public bodies, not for

profits, or Indian Tribes.

Estimated Number of Respondents:

10,520.

Estimated Number of Responses per

Respondent: 9.06.

Estimated Total Annual Burden on

Respondents: 235,854 hours.

Copies of this information collection

can be obtained from the Director,

Regulations and Paperwork

Management Division at (202) 720–

9725.

Comments

Comments are invited on: (a) Whether

the proposed collection of information

is necessary for the proper performance

of the function of the agency, including

whether the information will have

practical utility; (b) the accuracy of the

agency’s estimate of the burden of the

proposed collection of information

including the validity of the

methodology and assumptions used; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the collection of information

on those who are to respond, including

through the use of appropriate

automated, electronic, mechanical, or

other technological collection

techniques or other forms of information

technology. Comments may be sent to

Barbara Williams, Regulations and

Paperwork Management Division, U.S.

Department of Agriculture, Rural

Development, Stop 0743, 1400

Independence Avenue, Washington, DC

20250. All responses to this notice will

be summarized and included in the

request for OMB approval. All

comments will also become a matter of

public record.

Dated: June 25, 1996.

Eileen Fitzgerald,

Acting Administrator, Rural Housing Service.

[FR Doc. 96–16854 Filed 7–01–96; 8:45 am]

BILLING CODE 3410–07–P

Notice of Availability of Funding and

Requests for Proposals for the Section

538 Rural Rental Housing Guaranteed

Loan Demonstration Program

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

SUMMARY: The Rural Housing Service

(RHS) announces the availability of the

Section 538 Rural Rental Housing

Guaranteed Loan program on a

demonstration basis. The intended

outcome is to produce new affordable

rental housing by inviting qualified

lenders and eligible housing providers

to propose rental complexes that will

serve a wide range of incomes and better

serve rural residents. The purpose of the

demonstration is to encourage proposals

that show the feasibility of the program

in varying markets and with innovative

financing proposals.

DATES: The deadline for receipt of

applications is 4:00 PM, Eastern

Daylight Savings Time on August 5,

1996. Applications received after such

date and time will be returned. Lenders

are encouraged to submit applications

prior to the end of the period, as

applications will be reviewed as they

are received. If there are differences

between any additional guidelines and

this Notice, the requirements of this

notice shall prevail. Notification of

selected applications will be made by

September 1, 1996. Commitments for

guarantees will be issued on or before

September 16, 1996. If RHS is unable to

obligate section 538 funds for

guaranteed loans by September 16,

1996, any remaining section 538 funds

will be transferred for use prior to

September 30, 1996, under the section

515 program. Qualified lenders may call

Patrick Sheridan at 202–720–1600 or

Obediah G. Baker, Jr., at 202–720–1604

for a copy of the application package.

This is not a toll-free number. Hearingor speech-impaired persons may access

that number by calling toll-free the

Federal Information Relay Service at

(800) 877–8339.

ADDRESSES: Applications for

participation in the demonstration

program must be identified as ‘‘Section

538 Demonstration Program’’ on the

envelope or wrapper and be submitted

as follows: Director, Multi-family

Housing Processing Division, Rural

Housing Service, US Department of

Agriculture, South Agriculture Building,

Room 5337 (stop 0781), 1400

Independence Ave., SW, Washington,

DC 20250. Lenders shall submit an

original and two copies (a FAX copy is

NOT acceptable) of the application to

the above address by the application

deadline.

FOR FURTHER INFORMATION CONTACT:

Patrick Sheridan, Chief, Management

Branch, Multi-Family Housing Portfolio

Management Division, US Department

of Agriculture, South Agriculture

Building, Room 5321 (stop 0782), 1400

Independence Ave., SW, Washington,

DC 20250. Telephone: (202) 720–1600.

(This number is not toll-free.) Hearingor speech-impaired persons may access

that number by calling toll-free the

Federal Information Relay Service at

(800) 877–8339.

SUPPLEMENTARY INFORMATION: On March

28, 1996, President Clinton signed the

‘‘Housing Opportunity Program

Extension Act of 1996,’’ Public Law

104–120. One of the actions was the

authorization of the section 538 Rural

Rental Housing Guaranteed Loan

Program. The program is intended to

reach the needs of rural America by

complimenting the section 515 Rural

Rental Housing Direct Loan Program. It

is anticipated that beneficiaries of the

program will be rural residents with low

and moderate incomes provided rental

housing through the use of loan

guarantees. Partnership opportunities

exist to utilize the section 538 program

with other affordable housing programs.

In Fiscal Year (FY) 1996,

approximately $25 million is available

under the section 538 demonstration

program that was funded under the

‘‘Agriculture, Rural Development, Food

and Drug Administration, and Related

Agencies Appropriations Act, 1996,’’

Public Law 104–37. If the program is

extended, final regulations will be

developed based on information

gathered during administration of the

demonstration program.
Federal Register / Vol. 61, No. 128 / Tuesday, July 2, 1996 / Notices 34417

I. Purpose and Program Summary

Public Law 104–37 provided funds to

the Department to implement a

multifamily mortgage guarantee

demonstration program subject to

enactment of authorizing legislation.

Public Law 104–120 provided

authorization for that program with

qualified lenders, the purpose of which

is to demonstrate the effectiveness of

providing new forms of Federal credit

enhancement for the development of

affordable multifamily housing by

lenders.

The program has been designed to

increase the supply of affordable

multifamily housing through

partnerships between RHS and major

lending sources, as well as State and

local housing finance agencies and bond

issuers. Qualified lenders will be

authorized to originate, underwrite, and

close loans for multifamily housing

projects requiring new construction.

RHS will guarantee such loans upon

presentation and review of appropriate

certifications, project information and

satisfactory completion of the

appropriate level of environmental

review by RHS. Lenders will be

responsible for the full range of loan

management, servicing, and property

disposition activities associated with

these projects. The lender will be

expected to provide servicing or

contract for servicing of each loan it

underwrites. RHS, in turn, commits to

pay up to a maximum of 90 percent of

the outstanding principal and interest

mortgage balance in the case of default

of the loan and filing of a claim.

II. Eligible Housing and Tenants

A loan may be guaranteed only if the

loan is generally used for the

development costs of housing and

related facilities as such term is defined

in 7 CFR 1944.205 that also meet the

following criteria:

(a) Occupancy Requirements. The

housing must be available for

occupancy only by low or moderate

income families or persons, whose

incomes at the time of initial occupancy

do not exceed 115 percent of the median

income of the area. After initial

occupancy, a tenant’s income may

exceed these limits.

(b) Location. Projects must be located

in areas considered eligible as defined

in 7 CFR 1944.10. The eligible areas are

the same as those eligible under the

section 515 program.

(c) Minimum Project Size. Projects

must consist of 5 or more rental

dwelling units. The site may consist of

two or more noncontiguous parcels of

land situated so as to comprise a readily

marketable real estate entity within an

area small enough to allow convenient

and efficient management.

(d) Types of Housing. For the

purposes of the demonstration program,

only proposals for new construction

will be considered. The complexes may

contain units that are detached, semidetached, row houses, or multifamily

structures.

(e) Housing Standards. The standards

established under 7 CFR part 1944,

subpart E for housing and related

facilities assisted under section 515

shall generally apply to housing and

related facilities, the development costs

of which are financed in whole or in

part with a loan guaranteed under this

program. The Agency anticipates and

will guarantee loans in which the fees

and the proposed housing may exceed

the amounts or size allowances and

amenities contained in 7 CFR part 1944,

subpart E provided such costs and

features are generally found in similar

housing proposals for similar income

families in the market area. Such costs,

features and amenities may include

larger units, dishwashers, microwaves,

increased and multi-purpose

community spaces, developer’s fees, etc.

For loans where RHS is requested to

provide interest credits, the proposed

housing must more closely follow the

standards contained in 7 CFR part 1944,

subpart E.

(f) Tenant Protections. The standards

for the treatment of tenants of housing

developed using amounts from a loan

guaranteed under this program shall

incorporate standards for lease and

grievance procedures and tenant

appeals of adverse actions used under

the section 515 Rural Rental Housing

Program.

(g) Fair Housing and Equal

Opportunity. No person shall be

subjected to discrimination because of

race, color, religion, sex, disability,

familial status, or national origin in the

sale, rental or advertising of dwellings,

in the provisions of brokerage services,

or in the availability of residential real

estate related transactions involving

RHS or housing in the Rural

Development mission area.

(h) Environmental. The

environmental requirements established

under 7 CFR part 1940, subpart G, for

housing and related facilities under the

section 515 program shall apply to

housing and related facilities under the

section 538 program.

(i) Preservation. The housing

developed will remain available for

occupancy as provided in paragraph II

(a) of this notice, for the period of the

original term of the loan guaranteed

unless the housing is acquired by

foreclosure (or instrument in lieu of

foreclosure) or the Administrator waives

the applicability of such requirement for

the loan only after determining, based

on objective information, that:

(1) There is no longer a need for lowand moderate-income housing in the

market area in which the housing is

located;

(2) Housing opportunities for lowincome households and minorities will

not be reduced as a result of the waiver;

and

(3) Additional Federal assistance will

not be necessary as a result of the

waiver.

(j) It is anticipated that complexes

developed under this program may

utilize other affordable housing

programs such as the Low Income

Housing Tax Credit, tax-exempt or

taxable bonds, HOME Investment

Partnerships Program (HOME) funds,

and other State or locally funded tenant

assistance or grants.

III. Loans Eligible for Guarantee

(a) Eligible Borrowers. A loan

guaranteed under this program may be

made to a nonprofit organization, an

agency or body of any State government

or political subdivision thereof, or a

private entity.

(b) Loan Terms. Each loan guaranteed

shall:

(1) Provide for complete amortization

by periodic payments to be made for a

term not to exceed 40 years;

(2) Involve a fixed rate of interest

agreed upon by the borrower and the

lender that does not exceed the

maximum allowable rate established by

the Administrator. For purposes of the

demonstration program, the maximum

allowable rate is 300 basis points over

the 30-year Treasury Bond Rate as

published in the Wall Street Journal as

of the business day previous to the

business day the rate is set;

(3) Involve a principal obligation

(including initial service charges,

appraisal, inspection, and other

reasonable fees) not to exceed:

(i) In the case of a borrower that is a

nonprofit organization or an agency or

body of any State or local government,

up to 97 percent of the development

costs of the housing and related

facilities or the value of the housing and

facilities, whichever is less;

(ii) In the case of a borrower that is

a for-profit entity or other entity not

referred to in paragraph III(b)(3)(i) of

this notice, up to 90 percent of the

development costs of the housing and

related facilities, whichever is less;

(iii) In the case of any borrower, for

such part of the property as may be

attributable to dwelling use, the
34418 Federal Register / Vol. 61, No. 128 / Tuesday, July 2, 1996 / Notices

applicable maximum per unit dollar

amount limitations under section 207(c)

of the National Housing Act; and

(iv) In the case of a borrower utilizing

Low Income Housing Tax Credits, a

review will be conducted in conjunction

with the applicable tax credit

administration entity to determine if the

proposal is in conformance with

subsidy layering requirements.

(4) Be secured by a first mortgage on

the housing and related facilities for

which the loan is made, or in the case

where the loan upon which the RHS

guarantee is requested is not the

primary funding source, be secured by

a parity lien;

(5) May be a permanent loan or a

combination construction and

permanent loan; and

(6) For 20 percent of the loans made

under the demonstration program, RHS

shall provide the borrower with

assistance in the form of interest credits

to the extent necessary to reduce the

rate of interest under paragraph III(b)(2)

of this notice to the applicable Federal

rate, as such term is used in section

42(I)(2)(D) of the Internal Revenue Code

of 1986.

(c) Refinancing of Loans Made Under

the Program. Any loan guaranteed under

the program may be refinanced and

extended in accordance with the terms

and conditions that the Agency shall

prescribe, but in no event for an

additional amount or term that exceeds

the limitations under paragraph III(b) of

this notice.

(d) Nonassumption. The borrower

under a loan that is guaranteed under

this program and under which any

portion of the principal obligation or

interest remains outstanding may not be

relieved of liability with respect to the

loan, notwithstanding the transfer of

property for which the loan was made.

Loans guaranteed under this program

may be made on a recourse or

nonrecourse basis.

(e) Issuance of Guarantee on

Permanent Loans. Guarantees may be

issued on permanent loans financing

new construction once the final

certificate of occupancy for the complex

has been issued by the appropriate

governmental body.

IV. Guarantee Provisions

(a) Lender eligibility. Those lenders

currently approved and considered

eligible by the Federal National

Mortgage Association, the Federal Home

Loan Mortgage Corporation, or the

Department of Housing and Urban

Development for guaranteed loan

programs supporting multifamily

housing will be considered approved

lenders for this demonstration program.

Lenders may use their own

underwriting standards and loan terms

and conditions with approval from RHS

subject to statutory program constraints.

In addition, State Housing Finance

Agencies (HFAs) are also considered

eligible lenders to participate in the

demonstration program provided they

demonstrate they have the ability to

underwrite, originate, process, close,

service, manage, and dispose of

multifamily housing loans in a prudent

manner.

(b) Extent of Guarantee. RHS will

guarantee repayment of an amount not

exceeding 90 percent of the total of the

amount of the unpaid principal and

interest of the loan.

(c) Guarantee Fee. At the time of

issuance of a loan guarantee under this

program, RHS will collect a fee equal to

1 percent of the guaranteed principal

obligation of the loan from the lender.

(d) Transferability of the Guarantee. It

is anticipated that loans guaranteed

under this program may be sold into the

secondary market. The guarantee may

be transferred to other eligible lenders

with the written consent of RHS.

(e) Payment Under Guarantee.

(1) Notice of default. In the event of

default under the loan documents by the

borrower on a loan guaranteed, the

holder of the guarantee certificate for

the loan shall provide written notice of

the default to the Administrator.

(2) Lenders will be required to discuss

future servicing strategies with RHS

prior to proceeding to liquidation.

Before any payment under a guarantee

is made, the holder of the guarantee

certificate must exhaust all reasonable

possibilities of collection on the loan

guaranteed.

(3) Foreclosure. After receiving notice

under paragraph IV(e)(1) of this notice

and providing written notice of action to

RHS, the holder of the guarantee

certificate for the loan may initiate

foreclosure proceedings, with the

concurrence of RHS, in a court of

competent jurisdiction, to obtain

possession of the security property.

After the court issues a final order

authorizing foreclosure on the property,

the holder of the certificate shall be

entitled to payment by RHS under the

guarantee upon:

(i) Conveyance to RHS of title to the

security property;

(ii) Submission to RHS of a claim for

payment under the guarantee; and

(iii) Assignment to RHS of all the

claims of the holder of the guarantee

against the borrower or others arising

out of the loan transaction or foreclosure

proceedings, except claims released

with the consent of RHS.

(4) Acceptance of the Assignment by

RHS. After receiving notice under

paragraph IV (e)(1) of this notice, RHS

may accept assignment of the loan if

RHS determines that the assignment is

in the best interests of the United States.

Assignment of a loan under this

paragraph shall include conveyance to

RHS of all rights and interests arising

under the loan, and assignment to RHS

of all claims against the borrower or

others arising out of the loan

transaction. Upon assignment of a loan

under this paragraph, the holder of a

guarantee for the loan shall be entitled

to payment by RHS under the guarantee.

Upon payment, in whole or in part, to

the holder, the note or judgment

evidencing the debt shall be assigned to

the United States and the holder shall

have no further claim against the

borrower or the United States.

V. Demonstration Selection Criteria

(a) The Agency intends under the

demonstration program to fund varying

financing proposals to help determine

the areas of need, the types of financing

packages possible and the demand in

the various eligible market areas.

Selection of proposals under this

demonstration program will be based on

the following criteria:

(1) Flexibility, innovation and

variation of funding models;

(2) Partnering and leveraging;

(3) No more than one viable

application will be selected in any State

(unless the number of viable

applications are limited and sufficient

funds remain to allow more than one

application in any one State); and

(4) Administrator’s discretion in order

to effectively use funding to best explore

program structure and effectiveness

consistent with the best interests of the

Government.

(b) For 20 percent of the loans made

under the demonstration program, RHS

shall provide the borrower with interest

credits to the extent necessary to reduce

the rate of the loan to the applicable

Federal rate. Proposals that could be

viable with or without interest credits

are encouraged to submit an application

showing financial and market feasibility

under either scenario. Applications

proposing to receive interest credit will

be selected using the following criteria:

(1) Geographical location with

emphasis on smaller rural communities

versus larger rural communities;

(2) The most needy communities

based on income limits;

(3) Commitments by the applicant to

maintain occupancy standards

throughout the term of the loan for

families with low and moderate
Federal Register / Vol. 61, No. 128 / Tuesday, July 2, 1996 / Notices 34419

incomes, with a priority at initial

occupancy for low income families.

(4) The lowest overall proportional

effective subsidy cost to the Government

when section 521 interest credit is

involved.

VI. Review Criteria

RHS will review each request for

participation under the demonstration

program to determine if the lender and

the proposal meet all the requirements

of this notice and the lender

demonstrates the ability to underwrite,

originate, process, close, service,

manage, and dispose of multifamily

loans in a prudent manner. Applications

will be reviewed to determine financial

feasibility, compliance with cost

limitations, and market need of the

proposal. RHS will review each

application for compliance with subsidy

layering requirements of the Act. RHS

also reserves the right to negotiate with

potential lenders over the scope of the

proposal to ensure the best interests of

the Government and objectives of the

demonstration program are achieved.

It is the policy of RHS to consider

environmental quality as equal with

economic, social, and other relevant

factors in program development and

decision making. Proposals which have

the potential for adverse impact to

protected resources (wetlands,

floodplains, and important farmland, for

example) will receive low priority, since

the brief period of time allocated for

obligation of funds may be insufficient

for RHS to satisfactorily complete the

environmental review process if the

proposal has adverse environmental

impacts. Therefore, it is important that

lenders and applicants submit proposals

which minimize the potential to

adversely impact the environment.

Since RHS will complete the

appropriate environmental review at the

field level, the appropriate field office

will need certain information from the

lender or applicant in order to complete

the environmental review. Lenders or

applicants who plan to file an

application should call at the earliest

date possible for directions on how to

contact the applicable field office.

VII. Other Matters

(a) Environmental Finding. A Finding

of No Significant Impact with respect to

the environment has been made in

accordance with RHS regulations at 7

CFR part 1940, subpart G.

(b) Civil Rights Impact Analysis. It is

the policy within the Rural

Development mission area to ensure

that the consequences of any proposed

project approval do not negatively or

disproportionately affect program

beneficiaries by virtue of race, color,

sex, national origin, religion, age,

disability, marital or familial status. To

ensure that any proposal under this

demonstration program complies with

these objectives, the RHS approval

official will complete Form RECD 2006–

38, ‘‘Civil Rights Impact Analysis

Certification.’’

(c) Executive Order 12612,

Federalism. The General Counsel, as the

Designated Official under section 6(a) of

Executive Order 12612, Federalism, has

determined that the policies and

procedures contained in this Notice will

not have substantial direct effects on

States or their political subdivisions, or

the relationship between the federal

government and the States, or on the

distribution of power and

responsibilities among the various

levels of government. As a result, the

Notice is not subject to review under the

Order.

(d) Prohibition Against Advance

Information on Funding Decisions. The

requirements of the rule continue to

apply until the announcement of the

selection of successful applicants. RHS

employees involved in the review of

applications and in the making of

funding decisions are restricted from

providing advance information to any

person (other than an authorized

employee of RHS) concerning funding

decisions, or from otherwise giving any

applicant an unfair competitive

advantage.

(e) Paperwork Reduction Act. The

information collection requirements

within this notice are covered under

OMB Nos. 0575–0042, 0575–0047,

0575–100, 0575–0024, 0575–0029, and

0075–0137.

Dated: June 27, 1996.

Maureen Kennedy,

Administrator, Rural Housing Service.

[FR Doc. 96–16866 Filed 6–27–96; 4:08 pm]

BILLING CODE 3410–07–U

DEPARTMENT OF COMMERCE

Bureau of the Census

Broadwoven Fabrics (Gray) Average

Weight and Width Study—MC22T

Supplement

ACTION: Proposed agency information

collection activity; comment request.

SUMMARY: The Department of

Commerce, as part of its continuing

effort to reduce paperwork and

respondent burden, invites the general

public and other Federal agencies to

take this opportunity to comment on

proposed and/or continuing information

collections, as required by the

Paperwork Reduction Act of 1995, Pub.

L. 104–13 (44 U.S.C. 3506(c)(2)(A)).

DATES: Written comments must be

submitted on or before September 3,

1996.

ADDRESSES: Direct all written comments

to Linda Engelmeier, Acting

Departmental Forms Clearance Officer,

Department of Commerce, Room 5327,

14th and Constitution Avenue, NW.,

Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT:

Requests for additional information or

copies of the information collection

instrument(s) and instructions should

be directed to Robert Reinard, Bureau of

the Census, Room 2132 FB–4,

Washington, DC 20233, Telephone (301)

457–4637.

SUPPLEMENTARY INFORMATION:

I. Abstract

The Census Bureau plans to conduct

a study of Broadwoven Fabrics (Gray)

Average Weight and Width. This study

is conducted every five years and used

to be part of the Census of

Manufactures. To minimize the

reporting burden and the cost to the

Government and also to improve the

timeliness of the report, it has been

conducted separately for the past six

censuses. The results of the survey

provide Government and industry

analysts with conversion factors to

measure the relationship between fabric

yardage produced and the volume of

fiber consumed. These changes reflect

the constant changes in fabric fiber

content and machinery used by the

textile industry.

II. Method of Collection

The Census Bureau will use mail out/

mail back survey forms to collect data.

Companies will be asked to respond to

the survey within 15 days of the initial

mailing. Telephone calls and/or letters

encouraging participation will be

mailed to respondents that have not

responded by the designated time.

III. Data

OMB Number: 0607–0752.

Form Number: MC–22T.

Type of Review: Regular Review.

Affected Public: Businesses, Other for

Profit Institutions.

Estimated Number of Respondents:

350.

Estimated Time Per Response: 3

hours.

Estimated Total Annual Burden

Hours: 1,050.

Estimated Total Annual Cost: 28,000.