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Notice

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

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Information about this document as published in the Federal Register.

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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 (FY) 2007. 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.

DATES:

Unless otherwise indicated below, applications are accepted year-round at a local Rural Development office.

Effective Date: May 31, 2007.

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FOR FURTHER INFORMATION CONTACT:

For information on applying for assistance, visit our Internet Web site at http://offices.sc.egov.usda.gov and select your State. You may also check the blue pages in your local telephone directory under “Rural Development” for the office serving your area.

For information regarding this notice contact Myron Wooden, Loan Assistant, Single Family Housing Direct Loan Division, telephone 202-720-4780, for single family housing (SFH) issues and Tammy S. Daniels, Senior Loan Specialist, Multi-Family Housing (MFH) Processing Division, telephone 202-720-0021, for multi-family housing issues, U.S. Department of Agriculture, 1400 Independence Ave., SW., Washington, DC 20250. (The telephone numbers listed are not toll free numbers.)

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SUPPLEMENTARY INFORMATION:

The information in this notice describes how funds for the various Rural Development Housing programs are distributed to the States. Interested applicants are encouraged to contact the local USDA Rural Development office for more information and application information. Please visit http://offices.sc.egov.usda.gov for the Rural Development office nearest you.

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

Part 1940, subpart L of 7 CFR 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 USDA 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 2007. Allocation computations have been performed in accordance with 7 CFR 1940.575 and 1940.578. For FY 2007, 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 2007 are as follows:

MFH Loan Programs Credit Sales$1,484,998
Section 514 Farm Labor Housing (LH) loans*38,116,886
Section 515 Rural Rental Housing (RRH) loans99,000,000
Section 521 Rental Assistance (RA) and 502(c)(5)(C) Advance616,020,000
Section 516 LH grants13,860,000
Sections 525 Technical and Supervisory Assistance grants (TSA) and 509 Housing Application Packaging grants (HAPG) (Shared between single and multi-family housing)990,000
Section 533 Housing Preservation grants (HPG)**10,125,728
Section 538 Guaranteed Rural Rental Housing Program99,000,000
Preservation Revolving Loan Fund Demonstration Program6,300,769
Section 515 Multi-Family Housing Preservation and Revitalization Restructuring Demonstration (MPR)***8,910,000
Rural Housing Voucher Program15,840,000
* Does Not Include Carryover Funds.
** Includes Carryover Funds.
*** State at the budget authority level, rather than at the program level.
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II. Funds Not Allocated to States

A. Credit Sales Authority. For FY 2007, $1,484,988 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.

C. Multi-family Housing Preservation and Revitalization Restructing Demonstration Program (MPR). The MPR Program is designed to preserve and revitalize Section 515 multi-family rental housing properties. The Program is designed to utilize several demonstration revitalization tools to restructure debt and financing of an aging portfolio of rental properties. The objective is to ensure that properties have sufficient resources to continue providing safe and affordable housing for low-income rural residents.

D. Rural Housing Voucher Program. The Rural Housing Voucher Program, authorized under Section 542 of the Housing Act of 1949, is designed to provide tenant protections in properties that prepay their mortgages after September 30, 2005. These Vouchers are portable and will enable tenants to continue to access affordable housing without benefit of the traditional Rental Assistance Program.

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 2007 Appropriation$38,116,886
Available for Off-Farm Loans31,937,082
Available for On-Farm Loans2,000,000
National Office Reserve4,179,804

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 2007 Appropriation$13,860,000
Available for LH Grants for Off-Farm10,491,000
National Office Reserve3,369,960

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 2007 Section 515 Rural Rental Housing allocation (Total)$99,000,000
New Construction funds and set-asides25,740,000
New construction loans8,234,537
Set-aside for nonprofits8,910,000
Set-aside for underserved counties and colonias4,950,000
Earmark for EZ, EC, or REAP Zones2,655,463
State RA designated reserve990,000
Rehab and repair funds and equity53,460,000
Rehab and repair loans48,510,000
Designated equity loan reserve4,950,000
General Reserve19,800,000

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 $8,234,537 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 $4,950,000 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 $2,655,463 has been earmarked for loan requests to develop units in EZ or EC communities or REAP Zones until June 30, 2007.

C. Designated Reserves for State RA. An amount of $990,000 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.

D. Repair and Rehabilitation Loans. All funds will be held in the National office and will be distributed based upon rehabilitation needs to projects selected and processed under the FY 2007 MPR NOFA.

E. Designated Reserve for Equity Loans. An amount of $4,950,000 has been designated for the equity loan preservation incentive described in 7 CFR part 3560. The $4,950,000 will be further divided into $4 million for equity loan requests currently on the pending funding list and $950,000 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 Start Printed Page 30339existing pending equity loan funding list.

F. General Reserve. There is one general reserve fund of $19,800,000. 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 HPG

Total Available (Includes carryover funds)$10,125,728
Less General Reserve1,012,572
Less Earmark for EZ, EC or REAP Zones594,000
Total Available for Distribution8,519,155

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 $594,000 is earmarked for EZ, EC or REAP Zones until June 30, 2007.

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 2007. 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 2007 are as follows:

Section 502 Guaranteed Rural Housing (RH) loans:
Nonsubsidized Guarantees—Purchase**$3,439,396,529
Nonsubsidized Guarantees—Refinance** 204,827,600
Section 502 Direct RH loans* 1,129,390,957
Credit sales (Nonprogram)10,000,000
Section 504 Housing repair loans*34,651,692
Section 504 Housing repair grants*/**29,601,000
Section 509 Compensation for construction defects99,000
Section 523 Mutual and self-help housing grants*/**33,660,000
Section 523 Self-Help Site Loans4,998,056
Section 524 RH site loans5,000,000
Section 306C Water and waste disposal grants**1,000,000
Section 525 Supervisory and technical:
Assistance and Section 509 Housing Application Packaging Grants
Total Available for single and multi-family section 525**$ 990,000
* Includes funds for EZ/EC and REAP communities until June 30, 2007.
** Carryover funds are not 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. $99,000 is available for compensation for construction defects.

3. Section 523 Mutual and Self-Help Technical Assistance Grants. $33,660,000 is available for Section 523 Mutual and Self-Help Technical Assistance Grants. Of these funds, $990,000 is earmarked for EZ, EC or REAP Zones until June 30, 2007. 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. $4,998,056 and $5,000,000 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 $1,000,000 for FY 2007. This amount is transferred 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). $990,000 is available for the TSA and HAPG programs. Funds for TSA grants will be made through a separate NOFA.

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. Start Printed Page 30340

II. State Allocations

A. Section 502 Nonsubsidized Guaranteed RH (GRH) Loans

1. Purchase—Amount Available for Allocation

Total Available—Purchase$3,439,396,529
Less National Office General Reserve1,148,233,612
Less Special Outreach Area Reserve492,100,119
Basic Formula—Administrative Allocation1,799,062,798

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 2007 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$204,827,600
Less National office general reserve99,000,000
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$1,129,390,957
Less Required Set Aside for Underserved Counties and Colonias56,469,548
EZ, EC and REAP Earmark10,857,427
Less General Reserve170,939,096
Administrator's Reserve32,939,096
Hardships & Homelessness2,000,000
Rural Housing Demonstration Program1,000,000
Homeownership Partnership110,000,000
Program funds for the sale of REO properties25,000,000
Less Designated Reserve for Self-Help175,000,000
Basic Formula Administrative Allocation716,124,885

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 $170.9 million. Of this amount, the Administrator's reserve is $32,939,096. One of the purposes of the Administrator's reserve will be for loans in Indian Country. Indian Country consists of land inside the boundaries of Indian reservations, communities made up mainly of Native Americans, Indian trust and restricted land, and tribal allotted lands. Another purpose of the reserve will be to provide funding for subsequent loans for essential improvements or repairs and transfers with assumptions. The Administrator's reserve may also be made available to States beginning in the 3rd Quarter when demand for funds is unusually high.

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

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

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

c. Homeownership Partnership. $110 million dollars 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 Treasury, Community Development Financial Institutions (CDFI). Funds will be available to fund leveraged loans made in partnership with the Department of 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. $175 million dollars 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 $56,469,548 has Start Printed Page 30341been set aside for the 100 underserved counties and colonias.

f. Empowerment Zone (EZ), Enterprise Community (EC) or Rural Economic Area Partnership (REAP) earmark. An amount of $10,857,427 has been earmarked until June 30, 2007, 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.

B. Section 504 Housing Loans and Grants. Section 504 grant funds are included in the Rural Housing Assistance Grant program (RHAG) in the FY 2007 appropriation.

1. Amount Available for Allocation

Section 504 Loans

Total Available$34,651,692
Less 5% for 100 Underserved Counties and Colonias1,732,584
EZ, EC or REAP Zone Earmark586,294
Less General Reserve733,915
Basic Formula—Administrative Allocation31,598,899

Section 504 Grants

Total Available$29,601,000
Less 5% for 100 Underserved Counties and Colonias1,450,350
EZ, EC or REAP Zone Earmark594,000
Less General Reserve1,649,895
Basic Formula—Administrative Allocation25,906,755

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. $1,732,584 and $1,450,350 have been set aside for the 100 underserved counties and colonias until June 30, 2007, 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). $586,294 and $594,000 have been earmarked through June 30, 2007, for EZ, EC or REAPs for the Section 504 loan and grant programs, respectively.

d. General Reserve. $733,915 for Section 504 loan hardships and $1,649,895 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

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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.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, marital status or family status (not all prohibited basis apply to all programs). Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact the USDA's Target Center at (202) 720-2600 (voice or TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue SW., Washington DC 20250-9410, or call toll free, (866) 632-9992 (Voice). TDD users can contact USDA through local relay (800) 720-6382 (TDD) or (866) 377-8642 (relay voice users). USDA is an equal opportunity provider and employer.

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Dated: May 23, 2007.

Thomas E. Hannah,

Acting Administrator, Rural Housing Service.

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BILLING CODE 3410-XV-U

[FR Doc. 07-2682 Filed 5-30-07; 8:45 am]

BILLING CODE 3410-XV-C