[Federal Register Volume 59, Number 160 (Friday, August 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20432]


[[Page Unknown]]

[Federal Register: August 19, 1994]


                                                   VOL. 59, NO. 160

                                            Friday, August 19, 1994

DEPARTMENT OF AGRICULTURE

Farmers Home Administration

7 CFR Part 1924

RIN 0575-AA88

 

Construction and Repair

AGENCY: Farmers Home Administration, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Farmers Home Administration (FmHA) proposes to amend its 
Planning and Performing Site Development Work regulation. This proposal 
is consistent with Section 716 of the Housing and Community Development 
Act of 1992 which amended Section 535 of the Housing Act of 1949 to 
allow the Secretary to accept subdivisions that have been approved by 
local, county or State agencies. FmHA will no longer review or approve 
subdivisions, but will review individual sites for the program. This 
action is consistent with similar actions being proposed or enacted by 
HUD and VA. A good site approval authority will allow FmHA to bring 
into the program many low cost homes in subdivisions that have already 
been developed. Many of these were not previously reached because the 
seller would not, or could not afford to furnish FmHA all the required 
data for a total subdivision approval.
    To assure that lower income people, particularly minorities and 
single women head-of-households, are afforded quality sites, 
subdivisions must meet the community standards and the sites must meet 
FmHA's site underwriting criteria. Environmental reviews will be 
required on a site by site basis and cumulative effects will be 
addressed when indicated.

DATES: Comments should be received on or before October 18, 1994.

ADDRESSES: Submit written comments in duplicate to the Office of the 
Chief, Regulation Analysis and Control Branch, Farmers Home 
Administration, USDA, room 6348, South Agriculture Building, 14th and 
Independence Avenue SW., Washington, DC 20250. All written comments 
will be available for public inspection at the above address during 
regular work hours.

FOR FURTHER INFORMATION CONTACT: Billy Chapman, Senior Loan Specialist, 
Farmers Home Administration, USDA, Room 5334-S, South Agriculture 
Building, 14th and Independence Avenue SW., Washington, DC 20250, 
telephone (202) 720-1485.

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.

Regulatory Flexibility Act

    Bob Nash, Under Secretary, Small Community and Rural Development, 
has determined that this action will not have a significant economic 
impact on a substantial number of small entities because the regulatory 
changes affect FmHA processing of section 502 loans and individual 
applicant eligibility for the program.

Paperwork Reduction Act

    The information collection or recordkeeping requirements contained 
in this regulation will be submitted to the Office of Management and 
Budget (OMB) for review under section 3504(h) of the Paperwork 
Reduction Act of 1980. Public reporting burden for this collection of 
information is estimated to vary from 5 minutes to 10 minutes per 
response, including time for reviewing instructions, searching existing 
data sources, gathering and maintaining the data needed, and completing 
and reviewing the collection of information. Please send written 
comments to the Office of Information Regulatory Affairs, OMB, 
Attention: Desk Officer for USDA, Washington, DC 20503. Please send a 
copy of your comments to Jack Holston, Agency Clearance Officer, USDA, 
FmHA Ag Box 0743, Washington, DC 20250.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' It is the determination of FmHA 
that this proposed 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.

Intergovernmental Consultation

    For the reason set forth in the final rule and related Notice to 7 
CFR part 3015, Subpart V, 48 FR 29115, June 24, 1983, this program/
activity is excluded from the scope of Executive Order 12372 which 
requires intergovernmental consultation with State and local officials.

Program Affected

    These changes affect the following FmHA program as listed in the 
Catalog of Federal Domestic Assistance:

10.410, Low Income Housing Loans.

Civil Justice Reform

    This document has been reviewed in accordance with Executive Order 
(EO) 12778. It is the determination of FmHA that this action does not 
unduly burden the Federal Court Systems in that it meets all applicable 
standards provided in Section 2 of the EO.

Regulatory Reform: Less Burdensome or More Efficient Alternatives

    The Department of Agriculture is committed to carrying out its 
statutory and regulatory mandates in a manner that best serves the 
public interest. Therefore, where legal discretion permits, the 
Department actively seeks to promulgate regulations that promote 
economic growth, create jobs, are minimally burdensome and are easy for 
the public to understand, use or comply with. In short, the Department 
is committed to issuing regulations that maximize the net benefits to 
society and minimize costs imposed by those regulations.
    The Department has developed and reviewed this regulatory proposal 
in accordance with these principles. Nonetheless, the Department 
believes that public input from all interested persons can be 
invaluable to ensuring that the final regulatory product is minimally 
burdensome and maximally efficient. Therefore, the Department 
specifically seeks comments and suggestions from the public regarding 
any less burdensome or more efficient alternative that would accomplish 
the purposes described in the proposal. Comments suggesting less 
burdensome or more efficient alternatives should be addressed to the 
agency as provided in this proposal.

Discussion

    FmHA stands alone as the only Federal Agency that requires approval 
of a complete subdivision prior to insuring or guaranteeing a loan for 
a home within the subdivision. Developers, builders, realtors and 
applicants for the programs have frequently complained that there is 
too much ``red tape'' before an eligible applicant can receive an FmHA 
loan within a well developed subdivision. Most counties and communities 
now have adequate subdivision reviews, and FmHA's subdivision approval 
is not needed to assure quality sites but is duplication of efforts.
    This action permits the better use of existing developments and 
decreases the environmental impact because not as many new developments 
will be needed to meet the demand for lots that will meet the Agency's 
requirements. It fits into existing growth patterns and places more 
authority with the local people.
    FmHA is committed to quality sites for its programs and therefore, 
proposes close scrutiny of the site. The new site criteria incorporates 
many of the prior subdivision requirements and makes them part of the 
site underwriting criteria. This action provides for better sites, 
without requiring the cumbersome subdivision review and approval 
process. It also provides the loan applicant with assurance of a 
quality water supply and property served by publicly owned and 
maintained roads. The proposal provides for an orderly request for 
review and systematic process of reviewing the site.
    This proposed regulation omits the detailed internal agency 
administrative instruction used by the field offices to administer the 
program. In the past, FmHA program regulations and FmHA Instructions 
have been identical. The Agency has adopted a policy of publishing 
regulations which set forth anything which confers a benefit or imposes 
an obligation on the public or which is necessary for the public to 
understand their responsibilities. The Agency does not intend to 
publish a regulation that omits or evades issues which are subject to 
public comment or would be of interest to the public. Any substantive 
changes in the regulation will continue to be published in the Federal 
Register. Each FmHA field office has a copy of the FmHA Instruction and 
a copy is available upon request to FmHA.
    Conforming changes will be made in other FmHA regulations at the 
final rule stage.

List of Subjects in 7 CFR Part 1924

    Housing standards, Low and moderate income housing, Rural areas.

    Therefore, as proposed, Chapter XVIII, Title 7, Code of Federal 
Regulations is amended as follows:

PART 1924--CONSTRUCTION AND REPAIR

    1. The authority citation for part 1924 continues to read as 
follows:

    Authority: 7 U.S.C 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR 
2.23; 7 CFR 2.70.

Subpart C--Planning and Performing Site Development Work

    2. Sections 1924.101 through 1924.150 of Subpart C of part 1924, 
are revised and exhibit A is removed to read as follows:

PART 1924--CONSTRUCTION AND REPAIR

Subpart C--Planning and Performing Site Development Work


Sec. 1924.101  Purpose.

    -This subpart establishes the basic Agency policies for planning 
and performing site development work. It also provides the procedures 
and guidelines for preparing site development plans consistent with 
Federal laws, regulations and Executive Orders.


Sec. 1924.102  General policy.

    (a) Rural development. This subpart provides for the development of 
building sites and related facilities in rural areas. It is designed 
to:
    (1) Recognize community needs and desires, and encourage leadership 
responsibility in local planning, control and development.
    (2) Recognize standards for building-site design which encourage 
and lead to the development of economically stable communities, and the 
creation of attractive, healthy, and permanent living environments.
    (3) Encourage improvements planned for the site to be the most 
cost-effective of the practicable alternatives. Encourage utilities and 
services utilized to be reliable, efficient and available at reasonable 
costs.
    (4) Provide for a planning process that will consider impacts on 
the environment and existing development in order to formulate actions 
that protect, enhance, and restore environmental quality.
    (b) Subdivisions. The Agency does not review or approve 
subdivisions. Each site approved by the Agency must meet the 
requirements of Sec. 1924.115 of this subpart, on a site by site basis.
    (c) Development related costs.
    (1) Applicant. The applicant is responsible for all costs incurred 
before loan and/or grant closing associated with planning, technical 
services, and actual construction. These costs may be included in the 
loan/grant as authorized by Agency regulations.
    (2) Developer. The developer is responsible for payment of all 
costs associated with development under this subpart.


Sec. 1924.103  Scope.

    -This subpart is for Agency personnel when considering a site or 
site development work for Rural Housing (RH) loans for individuals. It 
provides supplemental requirements for Rural Rental Housing (RRH) 
loans, Rural Cooperative Housing (RCH) loans, Farm Labor Housing (LH) 
loans and grants, and Rural Housing Site (RHS) loans. It also provides 
a site development standard (Exhibit B of this subpart) which 
supplements this subpart to determine the acceptability of development. 
All of this subpart applies to Single Family Housing unless otherwise 
noted. All of this subpart also applies to Multiple Family Housing 
except Secs. 1924.115, 1924.120 and 1924.121, which applies only to 
Single Family Housing, and any paragraph specifically shown for Single 
Family Housing. In addition, the Agency will consult with appropriate 
Federal, State, and local agencies, other organizations, and 
individuals to implement the provisions of this subpart.


Sec. 1924.104  Definitions.

    As used in this subpart:
    Agency. Farmers Home Administration (FmHA).
    Applicant. Any person, partnership, limited partnership, trust, 
consumer cooperative, corporation, public body or association that has 
filed a preapplication, or in the case of Agency programs that do not 
require a preapplication, an official application with the Agency in 
anticipation of receiving or utilizing Agency financial assistance.
    Community. A community includes cities, towns, boroughs, villages, 
and unincorporated places which have the characteristics of 
incorporated areas with support services such as shopping, post office, 
schools, central sewer and water facilities, police and fire 
protection, hospitals, medical and pharmaceutical facilities, etc., and 
are easily identifiable as established concentrations of inhabited 
dwellings and private and public buildings.
    Developer. Any person, partnership, public body or corporation 
which intends to develop a site(s) and ask the Agency to finance it.
    Development. The act of building structures and installing site 
improvements on an individual dwelling site, a subdivision, or a 
multiple family tract.
    Multiple Family Housing. Agency Rural Rental Housing loans, Rural 
Cooperative Housing loans, Farm Labor Housing loans and grants, and 
Rural Housing Site loans.
    Single Family Housing. Agency Rural Housing loans for individuals 
for construction of, repair of, or purchase of a dwelling to be 
occupied by one household.
    Site. A parcel of land proposed as a dwelling site, with or without 
development.
    Site approval official. The Agency official making the 
determination that a site meets the requirements in this subpart to be 
acceptable for site loans. (See Sec. 1924.120 of this subpart.)
    Street surfaces. Streets may be hard or all weather surfaced.
    (1) Hard surface--a street with a portland cement concrete, 
asphaltic concrete, or bituminous wearing surface or other hard 
surfaces which are acceptable and suitable to the local public body for 
use with local climate, soil, gradient, and volume and character of 
traffic.
    (2) All-weather--a street that can be used year-round with a 
minimum of maintenance, such as the use of a grader and minor 
application of surface material, and is acceptable and suitable to the 
local public body for use with local climate, soil, gradient, and 
volume and character of traffic.
    Subdivision. Five or more contiguous (developed or undeveloped) 
lots, or building sites. Subdivisions may be new or existing.


Sec. 1924.105  Planning/performing development.

    (a) General. Planning is an evaluation of specific development for 
specific land uses. Planning must take into consideration topography, 
soils, climate, adjacent land use, environmental impacts, energy 
efficiency, local economy, aesthetic and cultural values, public and 
private services, housing and social conditions and a degree of 
flexibility to accommodate changing demands. Although all planning and 
performing development work is the responsibility of the applicant or 
developer, close coordination must occur with local planning officials 
and with the respective Agency office to minimize the chances of 
spending money on development that does not meet the Agency's 
requirements. All development will be arranged and completed according 
to applicable local, State or Federal regulations including applicable 
health and safety standards, environmental concerns and requirements of 
this subpart. When a public authority requires inspections prior to 
final acceptance, written assurance by the responsible public 
authority, of compliance to local, city, county, State or other public 
codes, regulations and ordinances is required prior to final acceptance 
by the Agency.
    (1) Agency advice and assistance. Applicants and developers shall 
be encouraged to seek the advice and assistance of the Agency before 
significant expenditures are made. Actions taken which are not in 
accordance with this subpart may jeopardize the possibility of 
receiving future financial assistance from the Agency. When receiving 
an inquiry about a Single Family Housing site development or a Multiple 
Family Housing project, the Agency official receiving the request will:
    (i) Provide information regarding publications, site planning, 
engineering data, environmental data, soils data, and other technical 
advice and assistance which are available through local, State, and 
Federal agencies, planning commissions, and private institutions and 
organizations.
    (ii) Explain the requirements for compliance with subpart G of part 
1940 of this chapter, as well as the limitations on applicants during 
the application review process as prescribed in Sec. 1940.309 of 
subpart G of part 1940 of this chapter.
    (iii) Discuss the requirements of the Agency with respect to 
compliance with local, regional, and State regulations; construction 
practices; energy efficiency; nondiscrimination; market analysis; good 
site planning; and location. Also, when applicable, provide and explain 
Form FmHA 400-4, ``Assurance Agreement,'' Form FmHA 400-1 ``Equal 
Opportunity Agreement,'' and HUD Form 935.2, ``Affirmative Fair Housing 
Marketing Plans.''
    (2) Technical services.
    (i) Professional assistance is available from the Soil Conservation 
Service (SCS) and the Cooperative Extension Service.
    (ii) An applicant or developer for a Multiple Family Housing 
project or a Single Family Housing site which requires technical 
services under Sec. 1924.13(a) of subpart A of this part, must contract 
for the technical services of an architect, engineer, land surveyor, 
landscape architect, or site planner, as appropriate, to provide 
complete planning, drawings, and specifications. Such services may be 
provided by the applicant's or developer's ``in house'' staff subject 
to Agency concurrence. Technical services must be performed by 
professionals who are qualified and authorized to provide such services 
in the State in which the project would be developed. All technical 
services must be provided in accordance with the requirements of 
professional registration or licensing boards. For payments for 
technical services, follow Sec. 1924.102(c) of this subpart. At 
completion of all construction or completion of a phase or phases of 
the total project, the person(s) providing technical services under 
this section must notify the Agency office in writing that all work has 
been completed in substantial conformance with the approved plans and 
specifications.
    (iii) For developments not specifically required to have technical 
services under paragraph (a)(2)(ii) of this section, such services may 
be required by the State Director when construction of streets or 
installation of utilities is involved.
    (3) Drawings, specifications, contract documents, and other 
documentations. Adequate drawings and specifications must be provided 
by the applicant or developer to fully describe the work. Contract 
documents must be prepared under Sec. 1924.6 or, in the case of more 
complex construction, Sec. 1924.13 of subpart A of this part.
    (b) Single Family Housing. Proposals for development of individual 
dwelling sites have the following specific requirements:
    (1) Site development design requirements. Exhibit B of this subpart 
will be used as a guide by applicants or developers in preparing 
proposals and supporting documents for Single Family Housing loans, in 
addition to specific requirements made in this subpart.
    (2) Environmental review.
    (i) An individual Single Family Housing loan is normally considered 
a Categorical Exclusion under the National Environmental Policy Act 
(NEPA). However, Form FmHA 1940-22, ``Environmental Checklist for 
Categorical Exclusions,'' must be completed by the Agency to determine 
that the specific action complies not only with NEPA, but also with 
other applicable environmental laws, executive orders, and regulations. 
To complete the form, the preparer will use reliable environmental 
information. Sources of such information include, but are not limited 
to, the State's Natural Resource Management Guide and the appraisal. If 
the completed Form FmHA 1940-22 indicates a potential impact to one or 
more environmental resources, the action is subject to disqualification 
as Categorical Exclusion and a Class I assessment must be completed in 
accordance with Sec. 1940.317(g) of subpart G of Part 1940 of this 
chapter. If it is obvious at the outset that the action will be 
disqualified as a Categorical Exclusion, the preparer should forego 
completion of Form FmHA 1940-22 and proceed directly to the Class I 
assessment.
    (ii) If it appears that an action will be subject to 
disqualification as a Categorical Exclusion due to indications of 
cumulative impacts, a Class I or Class II assessment will be completed, 
as appropriate, in accordance with subpart G of Part 1940 of this 
chapter. A cumulative impact is the impact on the environment which 
results from the incremental impact of the proposed action, when added 
to other past, present and reasonably foreseeable future actions, 
regardless of what Agency (Federal or non-Federal) or person undertakes 
such other actions.
    (c) Multiple Family Housing. Exhibit C of this subpart should be 
used as a guide by the applicant or developer in preparing a proposal 
and supporting documents for Multiple Family Housing projects. Exhibit 
B of this subpart contains site development design requirements which 
apply to all Multiple Family Housing projects.


Sec. 1924.106  Location.

    (a) General. It is the Agency's policy to promote compact community 
development and not to approve sites located in floodplains, on 
wetlands, or on important farmlands, unless there is no practical 
alternative. Furthermore, the Agency will not accept locations that 
adversely affect properties which are listed or are eligible for 
listing on the National Register of Historic Places, located within the 
Coastal Barrier Resource System, or on a barrier island. In order to be 
eligible for Agency participation:
    (1) The site must be located in an eligible area as defined in the 
program regulations under which the development is being funded or 
approved.
    (2) The proposal must comply with the applicable environmental 
laws, Executive Orders, and subpart G of part 1940 of this chapter.
    (b) Single Family Housing. In addition to the general requirements 
in paragraph (a) of this section, sites must provide a desirable, safe, 
functional, convenient, and attractive living environment for the 
residents, and insure long-term market demand and acceptability.
    (c) Multiple Family Housing. Multiple family housing projects shall 
be located in accordance with the requirements in paragraph (r) of 
Sec. 1944.215 of subpart E of part 1944 of this chapter. Locating sites 
in less than desirable locations of the community or in close proximity 
to undesirable influences such as railroad tracks, cemeteries; adjacent 
to or behind commercial sites; bordering structures which are not 
decent, safe, or sanitary or a positive conducive influence on the 
proposed site; bordering sites which have potential environmental 
concerns such as processing plants, etc., is not acceptable. Screening 
such sites does not make them acceptable. Sites which are not an 
integral part of a residential community and do not have a reasonable 
access, either by location or terrain, to essential community 
facilities such as water, sewerage, schools, shopping, employment 
opportunities, medical facilities, etc., are equally not acceptable.


Sec. 1924.107  Utilities.

    All development under this subpart must have adequate, economic, 
safe, energy efficient, dependable utilities with sufficient easements 
for installation and maintenance.
    (a) Water and wastewater disposal systems.
    (1) Single Family Housing. If sites are served by central water or 
sewer systems the systems must meet the requirements of paragraphs 
(a)(2) (i) and (ii) of this section. If sites have individual water or 
sewer systems they must meet the requirements for water and sewerage in 
Exhibit B, paragraphs V and VI of this subpart. Sites in subdivisions 
of more than 25 dwelling units on individual systems, or sites that do 
not meet the requirements of Exhibit B, paragraphs V and VI of this 
subpart, must have State Director concurrence.
    (2) Multiple Family Housing. Proposals processed under this 
paragraph shall be served by centrally owned and operated water and 
wastewater disposal systems unless this is determined to be 
economically or environmentally unfeasible. All central systems, 
whether they are public, community or private, shall meet the design 
requirements of the State Department of Health or other comparable 
reviewing and regulatory authority(ies). The regulatory authority(ies) 
will verify in writing that the water and wastewater systems are in 
compliance with the current provisions of the Safe Drinking Water Act 
and the Clean Water Act, respectively.
    (i) Sites which are not presently served by a central system, but 
are scheduled for tie-in to the central system within 2 years should 
have all lines installed during the initial construction. Such 
developments must have an approved interim water supply or wastewater 
disposal system installed capable of satisfactory service until the 
scheduled tie-in occurs.
    (ii) In addition to written assurance of compliance with State and 
local requirements, there must be assurance of continuous service at 
reasonable rates for central water and wastewater disposal systems. 
Public ownership is preferred whenever possible. In cases where interim 
facilities are installed pending extension or construction of permanent 
public services, the developer must assume responsibility for the 
operation and maintenance of the interim facility or establish an 
entity for its operation and maintenance which is acceptable to the 
local governing body. If a system is not or will not be publicly owned 
and operated, it must comply with one of the following:
    (A) Be an organization that meets the ownership and operating 
requirements for a water or wastewater disposal system that the Agency 
could finance under subpart A of part 1942 of this chapter or be 
dedicated to and accepted by such an organization.
    (B) Be an organization or individual that meets other acceptable 
methods of ownership and operation as outlined in HUD Handbook 4075.12, 
``Ownership and Organization of Central Water and Sewerage Systems.'' 
The Agency should be assured that the organization has the right, in 
its sole discretion, to enforce the obligation of the operator of the 
water and/or sewerage systems to provide satisfactory continuous 
service at reasonable rates. The advice and assistance of the Regional 
Attorney should be obtained in preparing any necessary agreement with 
the organization or individual supplying water and/or sewerage systems.
    (C) Be adequately controlled as to rates and services by a public 
body (unit of Government or public services commission).
    (iii) When central systems are not available, the Agency will 
thoroughly evaluate the proposed individual systems for economic 
feasibility and potential impact on the environment. Information and 
guidance for evaluation and design of individual water and wastewater 
systems is contained in Environmental Protection Agency (EPA) 
publications ``Manual of Individual Water Supply Systems'' and ``Design 
Manual, Onsite Wastewater Treatment and Disposal Systems'', 
respectively. Developments of more than 25 dwelling units with 
individual systems must have the National Office concurrence. A request 
for concurrence must contain written recommendations and the following:
    (A) Information prepared by the local, county or State regulatory 
authority having jurisdiction indicating whether individual systems are 
feasible on the proposed sites. Supporting factual data should include 
evidence that clearly shows that individual systems will perform 
satisfactorily for a reasonable period of time with reasonable 
maintenance cost. Reasonable time and reasonable cost can be equated 
with the cost and expected life of a central system if one were 
available.
    (B) Supporting information for the proposed individual water 
systems, covering the following points:
    (1) Documentation of how individual water supplies can be developed 
with satisfactory water production at a reasonable cost. In areas where 
difficulty is anticipated in developing an acceptable water supply, the 
availability of a water supply will be determined before closing the 
loan.
    (2) Documentation that the quality of the supply meets the 
chemical, physical and bacteriological standards of the regulatory 
authority having jurisdiction. The maximum contaminant levels of U.S. 
EPA shall apply. Individual water systems must be tested for quantity 
and bacteriological quality. Where problems are anticipated with 
chemical quality, chemical tests may be required. Chemical tests would 
be limited to analysis for the defects common to the area such as iron 
and manganese, hardness, nitrates, pH, turbidity, color, or other 
undesirable elements. Polluted or contaminated water supplies are 
unacceptable. In all cases, assurance of a potable water supply before 
loan closing is required.
    (C) Supporting information for individual wastewater disposal 
systems with subsurface discharge provided by a soil scientist, 
geologist, soils engineer, or other person recognized by the local 
regulatory authority. This data should include the following:
    (1) Assurance of nonpollution of ground water. The local regulatory 
authority having jurisdiction must be consulted to ensure that 
installation of individual wastewater systems will not pollute ground 
water sources or create other health hazards/or otherwise violate State 
water quality standards.
    (2) Records of percolation tests. Guidance for performing these 
tests is included in the EPA design manual, ``Onsite Wastewater 
Treatment and Disposal Systems.'' (This may be waived by the State 
Director when the State has established other acceptable means for 
allowing onsite disposal.)
    (3) Determination of soil types and description. The assistance of 
the SCS or other qualified persons should be obtained for soil type 
determination and a copy of its recommendations included in the 
documentation.
    (4) Description of ground water elevations, showing seasonal 
variations.
    (5) Confirmation of space allowances. An accurate drawing to 
indicate that there is adequate space available to satisfactorily 
locate the individual water and/or wastewater disposal systems; 
likewise, documented assurance of compliance with all local 
requirements. Structures served by wastewater disposal systems with 
subsurface discharge require larger sites than those structures served 
by another type system.
    (6) Description of exploratory pit observations, if available.
    (D) Supporting information for individual wastewater disposal 
systems with surface discharge covering the following points:
    (1) Effluent standards issued by the appropriate regulatory agency 
that controls the discharge of the proposed individual systems. 
Assurance from this regulatory agency that the effluent standards will 
not be exceeded by the individual systems being proposed.
    (2) Program of maintenance, parts and service available to the 
system-owner for upkeep of the system.
    (3) A plan for local inspection of the system by a responsible 
agency with the authority to ensure compliance with health and safety 
standards.
    (b) Electric service. The power supplier will be consulted by the 
applicant to assure that there is adequate service available to meet 
the needs of the proposed development. Underground service is 
preferred.
    (c) Gas service. Gas distribution facilities, if provided, will be 
installed according to local requirements where adequate and dependable 
gas service is available.
    (d) Other utilities. Other utilities, if available, will be 
installed according to local requirements.


Sec. 1924.108  Grading and drainage.

    (a) General. Soil and geologic conditions must be suitable for the 
type of construction proposed. In questionable or unsurveyed areas, the 
applicant or developer will provide an engineering report with 
supporting data sufficient to identify all pertinent subsurface 
conditions which could adversely affect the structure and show proposed 
solutions. Grading will promote drainage of surface water away from 
buildings and foundations, minimize earth settlement and erosion, and 
assure that drainage from adjacent properties onto the development or 
from the development to adjacent properties does not create a health 
hazard or other undesirable conditions. Grading and drainage will 
comply with Exhibit B, paragraphs III and IV, of this subpart.
    (b) Cuts and fills. Development requiring extensive earthwork, cuts 
and fills of 4 feet or more shall be designed by a duly licensed or 
registered engineer. Where topography requires fills or extensive 
earthwork that must support structures and building foundations, these 
must be controlled fills designed, supervised and tested by a qualified 
soils engineer.
    (c) Slope protection. All slopes must be protected from erosion by 
planting or other means. Slopes may require temporary cover if exposed 
for long periods during construction.
    (d) Storm water systems. The design of storm water systems must 
consider convenience and property protection both at the individual 
site level and the drainage basin level. Storm water systems should be 
compatible with the natural features of the site. In areas with 
inadequate natural and/or man-made drainage systems, permanent and/or 
temporary storm water storage shall be an integral part of the overall 
development plan. Design of these facilities shall consider safety, 
appearance and economical maintenance operations.


Secs. 1924.109-1924.114  [Reserved]


Sec. 1924.115  Single Family Housing site evaluation.

    (a) Site review. The site approval official will evaluate each site 
(developed or undeveloped) to determine acceptance for the program. 
Information on the site will be provided by the appraiser on a form 
provided by the Agency and available in any Agency office. The review 
appraiser and/or the site approval official will review the 
information, complete any required information, and sign the back of 
the form. If the site is new construction in a subdivision, the builder 
will provide Form HUD-92541, ``Builder's Certification of Plans, 
Specifications, and Site'', available in any Agency office. The site 
approval official must complete the proper environmental review 
required by subpart G of part 1940 of this chapter for each site. (See 
Sec. 1924.105(b)(2) of this subpart.)
    (b) Site access. Each site must be contiguous to and have direct 
access from:
    (1) A hard surfaced or all weather street or road which is 
developed in full compliance with public body requirements, dedicated 
for public use, and is being maintained by a public body or a Home 
Owners Association that has demonstrated its ability or can clearly 
demonstrate its ability to maintain the street, or
    (2) An all weather extended driveway which can serve no more than 
two sites connecting to a hard surface or all weather street or road 
that meets the requirements of the above paragraph, or
    (3) A hard surfaced street in a condominium or townhouse complex 
which:
    (i) Is owned in common by the members or a member association and 
is maintained by a member association that has demonstrated its ability 
or can clearly demonstrate its ability to maintain the street, and
    (ii) Connects to a publicly owned and dedicated street or road.
    (c) Exceptions to street requirements. A site not meeting the 
conditions in paragraph (b) of this section will be acceptable if:
    (1) The applicant is a builder for a conditional commitment (a loan 
will not be approved until the site meets the conditions in paragraph 
(b) of this section), or the builder posts an irrevocable performance 
and payment bond (or similar acceptable assurance) that assures the 
site approval official that the site will be developed to meet the 
conditions in paragraph (b) of this section, or
    (2) The site is recommended by the site approval official and 
approved by the State Director. A request for State Director approval 
must justify that it is in the best interest of both the government and 
the applicant to approve the site.
    (d) Site layout. (1) Sites shall be surveyed and platted. Permanent 
markers shall be placed at all corners.
    (2) Sites shall meet all requirements of State and local entities 
and the Agency.
    (e) Covenants, conditions and restrictions. Sites in subdivisions 
shall be protected by covenants, conditions and restrictions (CC&Rs) to 
preserve the character, value and amenities of the residential 
community and to avoid or mitigate potential environmental impacts 
unless, an exception is granted by the State Director after considering 
the suitability of local ordinances, zoning, and other land use 
controls.
    (1) CC&Rs shall be recorded in the public land records and 
specifically referenced in each deed.
    (2) The intent of the CC&Rs is to assure the developers that the 
purchasers will use the land in conformance with the planned objectives 
for the community. In addition, the CC&Rs should assure the purchasers 
that the developers will proceed to use the land as planned and that 
other purchasers will use and maintain the land as planned to prevent 
changes in the character of the neighborhood that would adversely 
impact values or create a nuisance.


Secs. 1924.116-1924.119  [Reserved]


Sec. 1924.120  Approval authority.

    The State Director is responsible for delegating Single Family 
Housing site review and approval authority to appropriate employees 
when the employees have had sufficient training and have demonstrated 
the capability to perform the required actions, delegation is in 
writing in accordance with FmHA Instruction 2006-F.


Sec. 1924.121  [Reserved]


Sec. 1924.122  Exception authority.

    The Administrator may in individual cases, make an exception to any 
requirement or provision of this subpart or address any omission of 
this subpart which is not inconsistent with the authorizing statute or 
other applicable law if the Administrator determines that application 
of the requirement or provision would adversely affect the Government's 
interest. The Administrator will exercise this authority upon the 
written request of the State Director or the appropriate program 
Assistant Administrator. Requests for exceptions must be supported with 
documentation to explain the adverse effect on the Government, proposed 
alternative courses of action, and show how the adverse effect will be 
eliminated or minimized if the exception is granted.


Sec. 1924.123  State supplements and exhibits.

    (a) State supplements. State Directors may supplement this subpart 
only to meet State and local laws and regulations and to provide for 
orderly processing of submittals.
    (b) State exhibits. State Directors may develop exhibits for use by 
applicants or developers if the exhibits to this subpart are not 
adequate for use in the State. Those exhibits may be developed to 
further explain the items needed within the various submittals; 
organization of those items; and coordination of this subpart with the 
requirements of the Agency program(s) providing the financial 
assistance.


Sec. 1924.124-1924.149  [Reserved]


Sec. 1924.150  OMB control number.

    3. Exhibit A of subpart C is removed and reserved.

    Dated: June, 14, 1994.
Bob J. Nash,
Under Secretary for Small Community and Rural Development.
[FR Doc. 94-20432 Filed 8-18-94; 8:45 am]
BILLING CODE 3410-07-U