[Federal Register Volume 60, Number 89 (Tuesday, May 9, 1995)]
[Rules and Regulations]
[Pages 24540-24547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11309]
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DEPARTMENT OF AGRICULTURE
Rural Housing and Community Development Service
Rural Business and Cooperative Development Service
Rural Utilities Service
Consolidated Farm Service Agency
7 CFR Part 1924
RIN 0575-AA88
Construction and Repair
AGENCIES: Rural Housing and Community Development Service, Rural
Business and Cooperative Development Service, Rural Utilities Service,
and Consolidated Farm Service Agency; USDA.
ACTION: Final rule.
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SUMMARY: The Rural Housing and Community Development Service (RHCDS) is
amending the regulation on Planning and Performing Site Development
Work. RHCDS will no longer review or approve subdivisions, but will
review and approve individual sites for its program. This action is
consistent with similar actions being proposed or promulgated by the
Department of Housing and Urban Development (HUD) and the Department of
Veterans Affairs (VA). This site approval authority will allow RHCDS 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 RHCDS with
all the required data for a total subdivision approval.
To assure that eligible individuals are afforded quality sites,
subdivisions must meet the community standards and the sites must meet
RHCDS site underwriting criteria. Environmental reviews will be
required on a site by site basis and cumulative impact will be
addressed when indicated.
EFFECTIVE DATE: June 8, 1995.
FOR FURTHER INFORMATION CONTACT: Billy Chapman, Senior Loan Specialist,
Rural Housing and Community Development Service, USDA, Room 5334-S,
South Agriculture Building, 14th and Independence Avenue SW.,
Washington, D.C. 20250, Telephone (202) 720-1485. [[Page 24541]]
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 (OMB).
Paperwork Reduction Act
The information collection requirements contained in this
regulation have been approved by the Office of Management and Budget
(OMB) under the provisions of 44 U.S.C. chapter 35 and have been
assigned OMB control number 0575-0164, in accordance with the Paperwork
Reduction Act of 1980. This final rule does not impose any new
information collection requirements in addition to those approved by
OMB.
Environmental Impact Statement
This document has been reviewed in accordance with, 7 CFR part 1940
subpart G, ``Environmental Program.'' It is the determination of RHCDS
that this 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 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 RHCDS program as listed in the
Catalog of Federal Domestic Assistance: 10.410, Low Income Housing
Loans.
Civil Justice Reform
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. In accordance with this rule: (1) all state and
local laws and regulations that are in conflict with this rule will be
preempted; (2) no retroactive effect will be given to this rule; and
(3) administrative proceedings in accordance with the regulations of
the RHCDS at 7 CFR part 1900, subpart B as published by the Department
of Agriculture to implement the provisions of the National Appeals
Division as mandated by the Department of Agriculture Reorganization
Act of 1994, must be exhausted before bringing suit in court
challenging actions taken under this rule unless those regulations
specifically allow bringing suit at an earlier time.
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 utilized comments and suggestions from the public to develop this
regulation in accordance with these principles.
Background
The proposed rule was published in the Federal Register (59 FR
42778) on August 19, 1994, providing for a 60-day comment period. The
rule proposed that RHCDS no longer approve subdivisions and instead
approve individual lots.
Interested persons have been afforded an opportunity to participate
in the making of this rule. Due consideration has been given to the 47
comments received (including four late comments).
Twenty-seven commenters issued strong support for the rule and
requested that it be published as written.
Nine commenters applauded RHCDS for a step in the right direction.
However, they along with eleven other commenters, furnished some of the
following suggestions for revisions to individual sections of the rule:
One commenter contends this rule goes through several paragraphs to
outline details to look for, but appears to wind up stating that
regardless of whether or not the subdivision is approved by a local
community RHCDS may accept the site. The commenter recommended that
RHCDS should just allow approval officials to approve any well located
site and eliminate the rule completely.
RHCDS does not concur with this request. RHCDS must ensure that
sites are developed to provide decent, safe, and sanitary living
conditions for recipients of RHCDS loans and to serve as adequate
security for these loans. In order to effectively perform its mission,
RHCDS must have guidelines for loan approval officials as well as
applicants, builders, and developers, that will give some
standardization to what is expected before financing is approved for a
particular site. However, a paragraph has been added to the rule to
make it clear that no site will be approved unless it meets all state
and local permits and approvals in connection with any proposed
development.
Two commenters suggested that RHCDS should still require that
subdivisions be developed as part of a rural community.
RHCDS does not concur with this suggestion. When this rule is
effective RHCDS will no longer approve subdivisions, and does not plan
to deny financing for individual sites to eligible applicants just
because they may be in a subdivision not associated with a town.
Section 502(f) of the Housing Act of 1949, 42 U.S.C. Sec. 1472(f),
clearly provides that RHCDS cannot deny credit on a site just because
it is in a remote rural area.
Four commenters stated that the process for an environmental review
of a site is not clear and phrases like ``important farmland'' should
be clarified. One of these commenters stated RHCDS was excluding flood
hazard areas from their loan making and eliminating entire communities
as locations for Section 502 loans in the West and Southwest.
RHCDS has not changed the final rule because of these comments.
Several sections in the rule refer to 7 CFR part 1940, subpart G, which
contains RHCDS environmental requirements. RHCDS environmental policies
on individual site reviews are not changed with the revision of this
rule. RHCDS policy on flood hazard areas, as set forth in 7 CFR part
1806, subpart B, has not been changed by this regulation.
One commenter contends that the requirements for approval of sites
for Federal Housing Administration (FHA), VA, and RHCDS guaranteed
loans are similar and the requirements for approval of sites for this
program are different.
RHCDS has not changed the final rule relating to these comments.
This rule is for the RHCDS direct loan program which is designed for
low- and very low-income applicants. RHCDS serves not as a guarantor in
this program, but as a lender. In the guaranteed loan programs the
guaranteed lender reviews the site for acceptability for loan purposes.
In this program RHCDS must ensure that sites are developed to provide
decent lots for the applicants.
Three commenters stated that if RHCDS did not approve subdivisions
and had no process to approve more than one lot in a subdivision at a
time, it was going to be very difficult for [[Page 24542]] developers
to get financing for multiple lot developments.
RHCDS has not changed the final rule relating to these comments.
There is no provision in the rule to package approvals of more than one
site at a time. However, a developer may have more than one site
approval in any time period. The funding for RHCDS housing programs is
no longer strong enough to support subdivisions developed for 100
percent RHCDS financing. The requirements for approval of a site are
specified in this rule. If a developer receives approval on one lot in
a subdivision it should be fairly simple to receive approval on other
similar sites in the same subdivision.
One commenter suggested that with reduced funding for RHCDS
programs RHCDS should use only the best sites, i.e., the ``cream of the
crop,'' for the most needy low- and very low-income applicants.
RHCDS does not concur with this suggestion. This practice would be
discriminatory by refusing to finance properties that applicants really
wanted and requiring them to find ``better'' sites.
One commenter advised that 7 CFR part 1822, subpart G (FmHA
Instruction 444.8), Site Loan Procedures, still requires a subdivision
approval and it refers to this rule for further instructions.
RHCDS agrees with the commenter and a section is added to make it
clear that individual sites financed with RHCDS site loans must comply
with the requirements in this regulation.
Two commenters stated that sections 1924.105(a)(1) and
1924.106(a)(1)(i) should be deleted. If RHCDS was not going to approve
subdivisions they should not provide developers advice on how to
develop them.
RHCDS agrees with the commenters and the sections are revised in
the final rule.
One commenter noted section 1924.105(b)(1) referred to exhibit B as
a guide while section 1924.106(a)(1) states individual water and sewer
systems must meet requirements of exhibit B. This commenter along with
another recommended this rule be revised to require that exhibit B be
referenced as a mandatory minimum instead of a guide.
RHCDS agrees with this recommendation, even though several
commenters disagreed and wanted all references in the rule to refer to
exhibit B as a guide. After further review RHCDS believes single family
housing should use exhibit B as a mandatory minimum for all sites
unless an exception is issued by the state director. Multiple family
housing projects are reviewed by architects and engineers and
unacceptable sites are not as likely. This rule is revised accordingly.
Two commenters pointed out that the requirement that ``sites
must...insure long-term market demand and acceptability.'' in section
1924.106(b), did not comply with the law.
RHCDS agrees with these commenters and this phrase will be removed
from the final rule.
Four commenters suggested that section 1924.106(c) was too
restrictive. Railroads and cemeteries should not be restricted as
surroundings for a multiple family complex.
RHCDS partially concurs with the commenters. RHCDS is still
responsible as a Government agency to not finance a multiple family
complex if the loan approval official observes a problem for the
residents. RHCDS is concerned that the long-term viability of an
apartment complex will be adversely impacted by the non-desirable
influences and more importantly, the quality of the life of the tenants
would be diminished. RHCDS is responsible for ensuring that the
proposed housing is located to provide a desirable place for the
tenants to reside. The final rule will be revised to remove proximity
to cemeteries and low activity railroads as unacceptable locations.
Two commenters suggested that section 1924.107(a)(1) be revised to
accept individual water systems for financing if they meet the
requirements of the state Department of Health or other comparable
reviewing and regulatory authority.
RHCDS partially concurs with these commenters and the final rule
will be revised to state that individual water or sewer systems must
meet the requirements of the state Department of Health or other
comparable reviewing and regulatory authority. However, because there
is a vast difference in local area requirements, RHCDS will still
require minimum requirements for water and sewer systems serving an
individual site unless an exception is issued by the state director.
Nine commenters thought that the rule required nearly the same
steps to approve a site as previously required to approve a
subdivision. Several of these commenters wrote that the Housing and
Community Development Act of 1992 (HCDA of 1992) allowed the Secretary
to accept subdivisions that had been approved by local, county or state
agencies. They recommended that a section be included to accept
subdivisions planned in accordance with local requirements which
generally meet or exceed those of this subpart. Several of these
commenters recommended that the state director be authorized to make
those determinations.
RHCDS does not concur with the commenters' request. The HCDA of
1992 did allow the Secretary to accept subdivisions that had been
approved by local, county or state agencies. This rule does not
authorize RHCDS to accept or reject subdivisions. RHCDS approves or
rejects individual sites. Therefore, if a subdivision had been approved
by a local, county or state agency RHCDS is still required to approve
the site. Section 1924.115 requires information on the site to be
provided by the appraiser and/or the site approval official on a form
provided by the RHCDS. Currently the form that is planned for this
purpose is Form HUD-54891, ``Appraiser/Review Appraiser Checksheet.''
The site review official must complete the proper environmental review
required by 7 CFR part 1940, subpart G for each site. The applicant or
builder will only be involved in this phase if this review exposes a
problem. The other sections of this rule describe the kind of site that
is expected, and for appropriate reasons, the state director is
authorized to waive many of the individual site requirements. The
agency anticipates that the site approval official and builders will
become familiar with these requirements and it will normally only
require a very short time for a builder to complete the required forms
for approval.
One commenter recommended that ``all weather'' streets, as
referenced in section 1924.115(b), not be allowed except under
exception authority of the state director.
RHCDS does not concur with this recommendation. The agency believes
that property constructed and maintained all weather streets provide
acceptable cost effective access to housing sites which are security
for an RHCDS loan.
``All weather'' streets are still required to be developed in full
compliance with public body requirements, dedicated for public use, and
be maintained by a public body or a Home Owners Association.
One commenter stated ``site access'' as referred to in section
1924.115(b) should be left to local governments.
RHCDS does not concur with this request. While some local
governments have ``site access'' requirements, many do not. In order to
ensure that RHCDS loans are adequately secured and that borrowers have
reasonable access to their property RHCDS requires basic, minimum site
access requirements. [[Page 24543]]
Three commenters thought that site approval authority should come
with the position of county supervisor and the state director should
not approve each one individually as required in section 1924.120.
RHCDS does not concur with these commenters. With the United States
Department of Agriculture's reorganization underway, the county
supervisor title may be changed. The state directors will have the
ability to manage the program in their state by deciding who has
adequate experience and training to approve sites.
One commenter suggested that the public should be allowed to
request an exception under section 1924.122.
RHCDS does not concur with the commenter. Section 1924.122 requires
that the state director make the exception request to the
administrator. There is no general exception authority in this rule.
Exceptions are only granted if the Administrator determines that
application of the requirement or provision would adversely affect the
Government's interest.
Several commenters questioned the use of Form HUD-92541,
``Builder's Certification of Plans, Specifications, and Site'', when
the site is new construction.
RHCDS has reviewed this form and although parts of it apply to the
review process being used, it does not totally apply and would be a
source of confusion. A large part of this form applies to the
construction of the house and RHCDS has requirements in other
instructions that govern the inspection and approval of construction.
Requirement of the use of Form HUD-92541 has been deleted from the
final rule.
Discussion
RHCDS 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
RHCDS loan within a well-developed subdivision. Most counties and
communities now have adequate subdivision reviews, and RHCDS's
subdivision approval is not needed to assure quality sites, but is a
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 RHCDS's
requirements. It fits into existing growth patterns and places more
authority with the local government.
RHCDS is committed to quality sites for its programs and therefore,
requires scrutiny of the individual site. The new site criteria
incorporate many of the prior requirements for all sites in a
subdivision and make these requirements part of the underwriting
criteria for the individual site which will be security for an RHCDS
loan. This action provides for better sites, without requiring the
cumbersome subdivision review and approval process. It provides the
loan applicant with minimum standards for a quality water supply and
waste disposal. It also requires that the property be served by
publicly owned and maintained roads. The regulation provides for an
orderly request for review and systematic process of reviewing the
site.
This regulation omits the detailed internal RHCDS administrative
guidance used by the field offices to administer the program. In the
past, RHCDS program regulations and RHCDS Instructions have been
identical. However, RHCDS has now adopted a policy of publishing
regulations which set forth only these matters which confer a benefit
or impose an obligation on the public or which are necessary for the
public to understand their responsibilities.
List of Subjects in 7 CFR Part 1924
Housing standards, Low and moderate income housing, Rural areas.
Therefore, Chapter XVIII, Title 7, Code of Federal Regulations is
amended as follows:
PART 1924--CONSTRUCTION AND REPAIR
1. The authority citation for part 1924 is revised to read as
follows:
Authority: 42 U.S.C. 1480, 5 U.S.C. 301.
Subpart C--Planning and Performing Site Development Work
2. Sections 1924.101 through 1924.150 of subpart C of part 1924 are
revised to read as follows:
Sec. 1924.101 Purpose.
This subpart establishes the basic Rural Housing and Community
Development Service (RHCDS) 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 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.
(5) No site will be approved unless it meets the requirements of
this part and all state and local permits and approvals in connection
with the proposed development have been obtained.
(b) Subdivisions. RHCDS does not review or approve subdivisions.
Each site approved by RHCDS must meet the requirements of
Sec. 1924.115, on a site by site basis.
(c) Development related costs. (1) Applicant. The applicant is
responsible for all costs incurred before loan or grant closing
associated with planning, technical services, and actual construction.
These costs may be included in the loan or grant as authorized by RHCDS
regulations.
(2) Developer. The developer is responsible for payment of all
costs associated with development.
Sec. 1924.103 Scope.
This subpart 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, as indicated in exhibit B of
FmHA Instruction 1924-C (available in any RHCDS field office), which
supplements this subpart to provide the minimum for 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 and 1924.120, and any paragraph
specifically designated for Single Family Housing only. In addition,
RHCDS will consult with appropriate [[Page 24544]] 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:
Applicant. Any person, partnership, limited partnership, trust,
consumer cooperative, corporation, public body, or association that has
filed a preapplication, or in the case of RHCDS programs that do not
require a preapplication, an official application, with RHCDS in
anticipation of receiving or utilizing RHCDS 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 who
is involved with the development of a site which will be financed by
RHCDS.
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. RHCDS RRH loans, RCH loans, LH loans and
grants, and RHS loans.
Single Family Housing. RHCDS 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 RHCDS making the determination that a
site meets the requirements in this subpart to be acceptable for site
loans. (See Sec. 1924.120.)
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
a specific site. 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. All planning and
performing development work is the responsibility of the applicant or
developer. All development will be arranged and completed according to
applicable local, state, or Federal regulations including applicable
health and safety standards, environmental requirements, and
requirements of this subpart. When a public authority requires
inspections prior to final acceptance, written assurance by the
responsible public authority of compliance with local, city, county,
state or other public codes, regulations, and ordinances is required
prior to final acceptance by RHCDS.
(1) [Reserved]
(2) Technical Services. [Reserved]
(i) [Reserved]
(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), 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 RHCDS
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. At completion of all construction or
completion of a phase or phases of the total project, the persons
providing technical services under this section must notify the RHCDS
field 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 RHCDS in sufficient detail to fully
and accurately describe the proposed development. Contract documents
must be prepared in accordance with Sec. 1924.6 or, in the case of more
complex construction, Sec. 1924.13.
(b) Single Family Housing. Proposals for development of individual
dwelling sites must meet the following requirements:
(1) Site development design requirements. Exhibit B (available in
any RHCDS field office) will be used as a minimum 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) [Reserved]
(c) Multiple Family Housing. Exhibit C (available in any RHCDS
office) should be used as a guide by the applicant or developer in
preparing a proposal and supporting documents for multiple family
housing projects.
Sec. 1924.106 Location.
(a) General. It is RHCDS'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, RHCDS will not finance development on
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. (Environmental requirements are found in 7 CFR part 1940,
subpart G.) In order to be eligible for RHCDS 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 site must comply with the applicable environmental laws,
regulations, Executive Orders, and subpart G of part 1940.
(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. [[Page 24545]]
(c) Multiple Family Housing. Multiple family housing projects shall
be located in accordance with the requirements in paragraph (r) of
Sec. 1944.215. Locating sites in less than desirable locations of the
community because they are in close proximity to undesirable influences
such as high activity railroad tracks; adjacent to or behind industrial
sites; bordering sites or structures which are not decent, safe, or
sanitary; or 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 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 of the state department of health or other
comparable reviewing and regulatory authority and the minimum
requirements of exhibit B (available in any RHCDS field office),
paragraphs V and VI. 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, 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 by RHCDS to be
economically or environmentally not feasible. 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. The regulatory authority 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 sites
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 RHCDS could
finance under 7 CFR part 1942, subpart A 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.''
RHCDS should be assured that the organization has the right, in its
sole discretion, to enforce the obligation of the operator of the water
and sewerage systems to provide satisfactory continuous service at
reasonable rates.
(C) Be adequately controlled as to rates and services by a public
body (unit of Government or public services commission).
(iii) Multiple family developments of more than 25 units with
individual system must have national office concurrence.
(A) [Reserved]
(B) Supporting information for the proposed individual water
systems, covering the following points:
(1) 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 must be provided 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 must 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'' and the minimum RHCDS requirements are
in exhibit B, paragraph VI. (These 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 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 [[Page 24546]] individual systems being proposed
must be included.
(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 site. 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 professional
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 drainage systems, permanent 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 or site
approval official on a form provided by RHCDS and available in any
RHCDS field office.
(b) Site access. Each site must be contiguous to and have direct
access from:
(1) A hard surfaced or all weather road which is developed in full
compliance with public body requirements, is 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 paragraph(b)(1); 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 RHCDS.
(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 RHCDS 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 land covered by the CC&Rs will be used 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. 1924.116-1924.118 [Reserved]
Sec. 1924.119 Site Loans.
Subdivisions approved under subpart G of part 1822 (FmHA
Instruction 444.8) or exhibit F of subpart I of part 1944 (available in
any RHCDS field office), will meet the general requirements of this
subpart to insure lots in the subdivision will meet the requirements of
Sec. 1924.115.
Secs. 1924.120-1924.121 [Reserved]
Sec. 1924.122 Exception authority.
The Administrator of RHCDS 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. [[Page 24547]]
Secs. 1924.123-1924.149 [Reserved]
Sec. 1924.150 OMB Control Number.
The reporting requirements contained in this subpart have been
approved by the Office of Management and Budget (OMB) and have been
assigned OMB control number 0575-0164. Public reporting burden for this
collection of information is estimated to vary from 5 minutes to 10
minutes per response, with an average of .13 hours 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. Send comments regarding this
burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden to the Department of
Agriculture, Clearance Officer, OIRM, Ag Box 7630, Washington, D.C.
20250; and to the Office of Management and Budget, Paperwork Reduction
Project (OMB #0575-0164), Washington, D.C. 20503.
Exhibit A of Subpart C [Removed and Reserved]
3. Exhibit A of subpart C is removed and reserved.
Dated: April 14, 1995.
Michael V. Dunn,
Acting Under Secretary for Rural Economic and Community Development.
[FR Doc. 95-11309 Filed 5-8-95; 8:45 am]
BILLING CODE 3410-07-U