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Notice

Notice of Availability of Funds; Multi-Family Housing, Single Family Housing

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AGENCY:

Rural Housing Service, USDA.

ACTION:

Notice.

SUMMARY:

The Rural Housing Service (RHS) announces the availability of housing funds for fiscal year 2005 (FY 2005). This action is taken to comply with 42 U.S.C. 1490p, which requires that RHS publish in the Federal Register notice of the availability of any housing assistance.

EFFECTIVE DATE:

March 14, 2005.

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FOR FURTHER INFORMATION CONTACT:

For information regarding this notice contact Lou Paulson, Management Analyst, Single Family Housing Direct Loan Division, telephone 202-720-1478, for single family housing (SFH) issues and Tammy S. Daniels, Loan Specialist, Multi-Family Housing Processing Division, telephone 202-720-0021, for multi-family housing (MFH) issues, U.S. Department of Agriculture, 1400 Independence Ave., SW., Washington, DC, 20250. (The telephone numbers listed are not toll free numbers). For information on applying for assistance, visit our Internet Web site at http://offices.usda.gov and select your State or check the blue pages in your local telephone directory under “Rural Development” for the office serving your area. Near the end of this Notice is a listing of Rural Development State Directors.

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SUPPLEMENTARY INFORMATION:

Programs Affected

The following programs are subject to the provisions of Executive Order 12372 that requires intergovernmental consultation with State and local officials. These programs or activities are listed in the Catalog of Federal Domestic Assistance under Nos.:

10.405 Farm Labor Housing (LH) Loans and Grants

10.410 Very Low to Moderate Income Housing Loans

10.411 Rural Housing Site Loans and Self-Help Housing Land Development Loans

10.415 Rural Rental Housing Loans

10.417 Very Low Income Housing Repair Loans and Grants

10.420 Rural Self-Help Housing Technical Assistance

10.427 Rural Rental Assistance Payments

10.433 Rural Housing Preservation Grants

10.442 Housing Application Packaging Grants

Discussion of Notice

7 CFR part 1940, subpart L contains the “Methodology and Formulas for Allocation of Loan and Grant Program Funds.” To apply for assistance under these programs or for more information, contact the Rural Development Office for your area.

Multi-Family Housing (MFH)

I. General

A. This provides guidance on MFH funding for the Rural Rental Housing program (RRH) for FY 2005 (it does not include carryover funds). Allocation computations have been performed in accordance with 7 CFR 1940.575 and 1940.578. For FY 2005, State Directors, under the Rural Housing Assistance Grants (RHAG), will have the flexibility to transfer their initial allocations of budget authority between the Single Family Housing (SFH) Section 504 Rural Housing Grants and Section 533 Housing Preservation Grant (HPG) programs.

B. MFH loan and grant levels for FY 2005 are as follows:

MFH Loan Programs Credit Sales$ 1,488,819
Section 514 Farm Labor Housing (LH) loans38,191,789
Section 515 Rural Rental Housing (RRH) loans99,200,000
Section 521 Rental Assistance (RA) and 502(c)(5)(C) Advance581,411,200
Section 516 LH grants15,872,000
Sections 525 Technical and Supervisory Assistance grants:
(TSA) and 509 Housing Application Packaging grants992,000
(HAPG) (Shared between single and multi-family housing)
Section 533 Housing Preservation grants (HPG)8,810,944
Section 538 Guaranteed Rural Rental Housing Program99,200,000
Preservation Revolving Loan Fund Demonstration Program2,976,000

II. Funds Not Allocated to States

A. Credit Sales Authority. For FY 2005, $1,488,819 will be set aside for credit sales to program and nonprogram buyers. Credit sale funding will not be allocated by State.

B. Section 538 Guaranteed Rural Rental Housing Program. Guaranteed loan funds will be made available under a Notice of Funding Availability (NOFA) being published in this Federal Register. Additional guidance is provided in the NOFA.

III. Farm Labor Housing (LH) Loans and Grants

The Administrator has the authority to transfer the allocation of budget authority between the two programs. Upon NOFA closing, the Administrator will evaluate the responses and determine proper distribution of funds between loans and grants.

A. Section 514 Farm LH Loans

1. These loans are funded in accordance with 7 CFR 1940.579(a).

FY 2005 Appropriation$38,191,789
Available for Off-Farm Loans32,000,000
Available for On-Farm Loans2,000,000
National Office Reserve4,191,789

2. Off-farm loan funds will be made available under a NOFA being published in this Federal Register. Additional guidance is provided in the NOFA.

B. Section 516 Farm LH Grants

1. Grants are funded in accordance with 7 CFR 1940.579(b). Unobligated prior year balances and cancellations will be added to the amount shown.

FY 2005 Appropriation$15,872,000
Available for LH Grants for Off-Farm12,000,000
National Office Reserve3,872,000

2. Labor Housing grant funds for Off-Farm will be made available under a NOFA being published in this Federal Register. Additional guidance is provided in the NOFA.

C. Labor Housing Rental Assistance (RA) will be held in the National Office for use with LH loan and grant applications. RA is only available with a LH loan of at least 5 percent of the total development cost. Projects without a LH loan cannot receive RA.

IV. Section 515 RRH Loan Funds

FY 2005 Section 515 Rural Rental Housing allocation (Total)$99,200,000
New Construction funds and set-asides25,792,000
New construction loans5,904,000
Set-aside for nonprofits8,928,000
Set-aside for underserved counties and colonias4,960,000
Earmark for EZ, EC, or REAP Zones5,000,000
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State RA designated reserve1,000,000
Rehab and repair funds and equity53,408,000
Rehab and repair loans48,408,000
Designated equity loan reserve5,000,000
General Reserve20,000,000

A. New construction loan funds. New construction loan funds will be made available using a national NOFA being published in this Federal Register. Additional guidance is provided in the NOFA.

B. National Office New Construction Set-asides. The following legislatively mandated set-asides of funds are part of the National office set-aside:

1. Nonprofit Set-aside. An amount of $8,928,000 has been set aside for nonprofit applicants. All Nonprofit loan proposals must be located in designated places as defined in 7 CFR part 3560.

2. Underserved Counties and Colonias Set-Aside. An amount of $4,960,000 has been set aside for loan requests to develop units in the underserved 100 most needy counties or colonias as defined in section 509(f) of the Housing Act of 1949 as amended. Priority will be given to proposals to develop units in colonias or tribal lands.

3. EZ, EC or REAP Zone Earmark. An amount of $5,000,000 has been earmarked for loan requests to develop units in EZ or EC communities or REAP Zones until June 30, 2005.

C. Rental Assistance (RA). Limited new construction RA will be held in the National office for use with Section 515 Rural Rental Housing loans.

D. Designated Reserves for State RA. An amount of $1 million of Section 515 loan funds has been set aside for matching with projects in which an active State sponsored RA program is available. The State RA program must be comparable to the RHS RA program.

E. Repair and Rehabilitation Loans. Tenant health and safety continues to be the top priority. Repair and rehabilitation funds must be first targeted to RRH facilities that have physical conditions that affect the health and safety of tenants and subsequently made available to facilities that have deferred maintenance. All funds will be held in the National Office and will be distributed based upon indicated rehabilitation needs in the MFH survey conducted in November 2004.

F. Designated Reserve for Equity Loans. An amount of $5 million has been designated for the equity loan preservation incentive described in 7 CFR part 3560. The $5 million will be further divided into $4 million for equity loan requests currently on the pending funding list and $1 million to facilitate the transfer of properties from for-profit owners to nonprofit corporations and public bodies. Funds for such transfers would be authorized only for for-profit owners who are currently on the pending funding list who agree to transfer to nonprofit corporations or public bodies rather than to remain on the pending list. If insufficient transfer requests are generated to utilize the full $1 million set aside for nonprofit and public body transfers, the balance will revert to the existing pending equity loan funding list.

G. General Reserve. There is one general reserve fund of $20,000,000. Some examples of immediate allowable uses include, but are not limited to, hardships and emergencies, RH cooperatives or group homes, or RRH preservation.

V. Section 533 Housing Preservation Grants (HPG)

Total Available$8,810,944
Less General Reserve3,959,072
Less Earmark for EZ, EC or REAP Zones892,800
Total Available for Distribution3,959,072

Amount available for allocation. (See end of this Notice for HPG State allocations.) Fund availability will be announced in a NOFA being published in the Federal Register.

The amount of $892,800 is earmarked for EZ, EC or REAP Zones until June 30, 2005.

Single Family Housing (SFH)

I. General. All SFH programs are administered through field offices. For more information or to make application, please contact the Rural Development office servicing your area. To locate these offices, contact the appropriate State Office from the attached State Office listing, visit our Web site at http://offices.usda.gov or check the blue pages in your local telephone directory under “Rural Development” for the office serving your area.

A. This notice provides SFH allocations for FY 2005. Allocation computations have been made in accordance with 7 CFR 1940.563 through 1940.568. Information on basic formula criteria, data source and weight, administrative allocation, pooling of funds, and availability of the allocation are located on a chart at the end of this notice.

B. The SFH levels authorized for FY 2005 are as follows:

Section 502 Guaranteed Rural Housing (RH) loans:
Nonsubsidized Guarantees—Purchase**$3,106,964,939
Nonsubsidized Guarantees—Refinance**262,535,130
Section 502 Direct RH loans:
Very low-income subsidized loans*570,400,000
Low-income subsidized loans*570,400,000
Credit sales (Nonprogram)10,000,000
Section 504 housing repair loans*34,720,000
Section 504 housing repair grants***30,944,836
Section 509 compensation for construction defects**143,926
Section 523 mutual and self-help housing grants***41,555,175
Section 523 Self-Help Site Loans10,000,000
Section 524 RH site loans5,045,000
Section 306C Water and waste disposal grants**1,345,728
Section 525 Supervisory and technical:
Assistance and Section 509 Housing Application
Packaging Grants Total Available for single
And multi-family**1,061,966
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Natural disaster funds (Section 502 loans)**1,771,977
Natural disaster funds (Section 504 loans)**20,481,558
Natural disaster funds (Section 504 grants)**8,194,212
*Includes funds for EZ/EC and REAP communities until June 30, 2005.
**Carryover funds are included in the balance.

C. SFH Funding Not Allocated to States. The following funding is not allocated to States by formula. Funds are made available to each state on a case-by-case basis.

1. Credit sale authority. Credit sale funds in the amount of $10,000,000 are available only for nonprogram sales of Real Estate Owned (REO) property.

2. Section 509 Compensation for Construction Defects. $143,926 is available for compensation for construction defects.

3. Section 523 Mutual and Self-Help Technical Assistance Grants. $41,555,175 is available for Section 523 Mutual and Self-Help Technical Assistance Grants. Of these funds, $992,000 is earmarked for EZ, EC or REAP Zones until June 30, 2005. A technical review and analysis must be completed by the Technical and Management Assistance (T&MA) contractor on all predevelopment, new, and existing (refunding) grant applications.

4. Section 523 Mutual and Self-Help Site Loans and Section 524 RH Site Loans. $10,000,000 and $5,045,000 are available for Section 523 Mutual Self-Help and Section 524 RH Site loans, respectively.

5. Section 306C WWD Grants to Individuals in Colonias. The objective of the Section 306C WWD individual grant program is to facilitate the use of community water or waste disposal systems for the residents of the colonias along the U.S.-Mexico border.

The total amount available to Arizona, California, New Mexico, and Texas will be $1,345,728 for FY 2005. This amount includes the carryover unobligated balance of $345,728 and the transferred amount of $1 million from the Rural Utilities Service (RUS) to RHS for processing individual grant applications.

6. Section 525 Technical and Supervisory Assistance (TSA) and Section 509 Housing Application Packaging Grants (HAPG). $1,061,966 is available for the TSA and HAPG programs. Funds are available on a limited basis for TSA grants. In accordance with the provisions of 7 CFR 1944.525, funding will be targeted nationally and then on an individual basis to States/areas with the highest degree of substandard housing and persons in poverty eligible to receive Agency housing assistance. States should submit proposals from potential applicants to the National Office for review and concurrence prior to authorizing an application.

Requests should be submitted to the National Office for HAPG based on projected usage of these funds for the quarter or as needed. HAPG requests should be submitted by e-mail to Gloria Denson, Senior Loan Specialist, SFH Direct Loan Division, 202-720-1487. Reserve funds will be held at the National Office and requests from eligible States will be considered on a first-come, first-served basis. Additional guidance is provided in the NOFA.

7. Natural Disaster Funds. Funds are available until exhausted to those States with active Presidential Declarations.

8. Deferred Mortgage Payment Demonstration. There is no FY 2005 funding provided for deferred mortgage authority or loans for deferred mortgage assumptions.

II. State Allocations

A. Section 502 Nonsubsidized Guaranteed RH (GRH) Loans

1. Purchase—Amount Available for Allocation.

Total Available—Purchase$3,106,964,939
Less National office General Reserve1,055,147,494
Less Special Outreach Area Reserve452,206,069
Basic Formula—Administrative Allocation1,599,611,376

a. National Office General Reserve. The Administrator may restrict access to this reserve for States not meeting their goals in special outreach areas.

b. Special Outreach Areas. FY 2005 GRH funding is allocated to States in two funding streams. Seventy percent of GRH funds may be used in any eligible area. Thirty percent of GRH funds are to be used in special outreach areas. Special outreach areas for the GRH program are defined as those areas within a State that are not located within a metropolitan statistical area (MSA).

c. National Office Special Area Outreach Reserve. A special outreach area reserve fund has been established at the National Office. Funds from this reserve may only be used in special outreach areas.

2. Refinance—Amount available for allocation.

Total Available—Refinance$262,535,130
Less National Office general reserve262,535,130
Basic formula—Administrative Allocation0

a. Refinance Funds. Refinance loan funds will be distributed from the National Office on a case-by-case basis.

b. National Office general reserve. The Administrator may restrict access to this reserve for States not meeting their goals in special outreach areas.

B. Section 502 Direct RH Loans

1. Amount Available for Allocation.

Total Available$1,140,800,000
Less Required Set Aside for:
Underserved Counties and Colonias57,040,000
EZ, EC and REAP Earmark36,976,339
Less General Reserve168,003,000
Administrator's Reserve30,000,000
Hardships & Homelessness2,000,000
Rural Housing Demonstration Program1,000,000
Homeownership Partnership110,000,000
Program funds for the sale of REO properties25,000,000
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Less Designated Reserve for Self-Help150,000,000
Basic Formula Administrative Allocation728,780,661

2. Reserves.

a. State Office Reserve. State Directors must maintain an adequate reserve to fund the following applications:

(i) Hardship and homeless applicants including the direct Section 502 loan and Section 504 loan and grant programs.

(ii) Rural Home Loan Partnerships (RHLP) and Community Development Financial Institutions (CDFI) loans.

(iii) States will leverage with funding from other sources.

(iv) Areas targeted by the State according to its strategic plan.

b. National Office Reserves.

(i) General Reserve. The National Office has a general reserve of $168 million. Of this amount, the Administrator's reserve is $30,000,000. One of the purposes of the Administrator's reserve will be for loans in Indian Country. Indian Country is defined as land inside the boundaries of Indian reservations, communities made up mainly of Native Americans, Indian trust and restricted land, and tribal allotted lands.

(ii) Hardship and Homelessness Reserve. $2 million has been set aside for hardships and homeless.

(iii) Rural Housing Demonstration Program. $1 million has been set aside for innovative demonstration initiatives.

(iv) Program Credit Sales. $25 million has been set aside for program sales of REO property.

c. Homeownership Partnership. $110 million has been set aside for Homeownership Partnerships. These funds will be used to expand existing partnerships and create new partnerships, such as the following:

(i) Department of the Treasury, Community Development Financial Institutions (CDFI). Funds will be available to fund leveraged loans made in partnership with the Department of the Treasury CDFI participants.

(ii) Partnership initiatives established to carry out the objectives of the rural home loan partnership (RHLP).

d. Designated Reserve for Self-Help. $150 million has been set aside to assist participating Self-Help applicants. The National Office will contribute 100 percent from the National Office reserve. States are not required to contribute from their allocated Section 502 RH funds.

e. Underserved Counties and Colonias. An amount of $57,040,000 has been set aside for the 100 underserved counties and colonias.

f. Empowerment Zone (EZ) and Enterprise Community (EC) or Rural Economic Area Partnership (REAP) earmark. An amount of $36,976,339 has been earmarked until June 30, 2005, for loans in EZ, EC or REAP Zones.

g. State Office Pooling. If pooling is conducted within a State, it must not take place within the first 30 calendar days of the first, second, or third quarter. (There are no restrictions on pooling in the fourth quarter.)

h. Suballocation by the State Director. The State Director may suballocate to each area office using the methodology and formulas required by 7 CFR part 1940, subpart L. If suballocated to the area level, the Rural Development Manager will make funds available on a first-come, first-served basis to all offices at the field or area level. No field office will have its access to funds restricted without the prior written approval of the Administrator.

C. Section 504 Housing Loans and Grants. Section 504 grant funds are included in the Rural Housing Assistance Grant program (RHAG) in the FY 2005 appropriation.

1. Amount available for allocation.

Section 504 Loans:
Total Available$34,720,000
Less 5% for 100 Underserved Counties and Colonias1,736,000
EZ, EC or REAP Zone Earmark1,400,000
Less General Reserve1,501,000
Basic Formula—Administrative Allocation30,083,000
Section 504 Grants:
Total Available$30,944,836
Less 5% for 100 Underserved Counties and Colonias1,543,056
Less EZ, EC or REAP Earmark892,800
Less General Reserve1,682,916
Basic Formula-Administrative Allocation26,826,064

2. Reserves and Set-Asides.

a. State Office Reserve. State Directors must maintain an adequate reserve to handle all anticipated hardship applicants based upon historical data and projected demand.

b. Underserved Counties and Colonias. Approximately $1,736,000 and $1,543,056 have been set aside for the 100 underserved counties and colonias until June 30, 2005, for the Section 504 loan and grant programs, respectively.

c. Empowerment Zone (EZ) and Enterprise Community (EC) or Rural Economic Area Partnership (REAP) Earmark (Loan Funds Only). $1,400,000 and $892,800 have been earmarked through June 30, 2005, for EZ, EC or REAPs for the Section 504 loan and grant programs, respectively.

d. General Reserve. $1,501,000 for Section 504 loan hardships and $1,682,916 for Section 504 grant extreme hardships have been set-aside in the general reserve. For Section 504 grants, an extreme hardship case is one requiring a significant priority in funding, ahead of other requests, due to severe health or safety hazards, or physical needs of the applicant.

Information on Basic Formula Criteria, Data Source and Weight, Administrative Allocation, Pooling of Funds, and Availability of the Allocation

No.DescriptionSection 502 nonsubsidized guaranteed RH loansSection 502 direct RH loansSection 504 loans and grants
1Basic formula criteria, data source, and weightSee 7 CFR 1940.563(b)See 7 CFR 1940.565(b)See 7 CFR 1940.566(b) and 1940.567(b).
2Administrative Allocation:
Western Pacific Area$4,000,000$2,000,000$1,000,000 loan, $1,000,000 grant.
3Pooling of funds:
a. Mid-year poolingIf necessaryIf necessaryIf necessary.
b. Year-end poolingAugust 12, 2005July 15, 2005July 15, 2005.
c. Underserved counties & coloniasN/AJune 30, 2005June 30, 2005.
d. EZ, EC or REAPN/AJune 30, 2005June 30, 2005.
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e. Credit salesN/AJune 30, 2005N/A.
4Availability of the allocation:
a. first quarter40 percent50 percent50 percent.
b. second quarter70 percent75 percent75 percent.
c. third quarter90 percent100 percent100 percent.
d. fourth quarter100 percent100 percent100 percent.
1 Data derived from the 2000 U.S. Census is available on the Web at http://census.sc.egov.usda.gov.
2 Due to the absence of Census data.
3 All dates are tentative and are for the close of business (COB). Pooled funds will be placed in the National office reserve and made available administratively. The Administrator reserves the right to redistribute funds based upon program performance.
4 Funds will be distributed cumulatively through each quarter listed until the National Office year-end pooling date.
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Dated: March 4, 2005.

David J. Villano,

Acting Administrator, Rural Housing Service.

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BILLING CODE 3410-XV-P

[FR Doc. 05-4771 Filed 3-11-05; 8:45 am]

BILLING CODE 3410-XV-C