[Federal Register Volume 65, Number 248 (Tuesday, December 26, 2000)]
[Notices]
[Pages 81642-81645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32621]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Funding Availability (NOFA) for the Section 515 Rural 
Rental Housing Program for Fiscal Year 2001

AGENCY: Rural Housing Service (RHS), USDA.

ACTION: Notice.

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SUMMARY: This NOFA announces the timeframe to submit applications for 
section 515 Rural Rental Housing (RRH) loan funds and section 521 
Rental Assistance (RA) for new construction, including applications for 
the nonprofit set-aside for eligible nonprofit entities, the set-aside 
for the most Underserved Counties and Colonias (Cranston-Gonzalez 
National Affordable Housing Act), and the set-aside for Empowerment 
Zones and Enterprise Communities (EZ/ECs) and Rural Economic Area 
Partnership (REAP) communities. This document describes the methodology 
that will be used to distribute funds, the application process, 
submission requirements, and areas of special emphasis or 
consideration.

DATES: The closing deadline for receipt of all applications, including 
those for the set-asides, in response to this NOFA is 5 p.m., local 
time for each Rural Development State office on March 26, 2001. The 
application closing deadline is firm as to date and hour. RHS will not 
consider any application that is received after the closing deadline. 
Applicants intending to mail applications must provide sufficient time 
to permit delivery on or before the closing deadline date and time. 
Acceptance by a post office or private mailer does not constitute 
delivery. Facsimile (FAX) and postage due applications will not be 
accepted.

ADDRESSES: Applicants wishing to apply for assistance must contact the 
Rural Development State office serving the place in which they desire 
to submit an application for rural rental housing to receive further 
information and copies of the application package. Rural Development 
will date and time stamp incoming applications to evidence timely 
receipt, and, upon request, will provide the applicant with a written 
acknowledgment of receipt. A listing of Rural Development State 
offices, their addresses, telephone numbers, and person to contact 
follows:

    Note: Telephone numbers listed are not toll-free.


Alabama State Office, Suite 601, Sterling Centre, 4121 Carmichael Road, 
Montgomery, AL 36106-3683, (334) 279-3455, TDD (334) 279-3495, James B. 
Harris
Alaska State Office, 800 West Evergreen, Suite 201, Palmer, AK 99645, 
(907) 761-7734, TDD (907) 761-8905, Miguel Correa
Arizona State Office, Phoenix Corporate Center, 3003 N. Central Ave., 
Suite 900, Phoenix, AZ 85012-2906, (602) 280-8765, TDD (602) 280-8706, 
Johnna Vargas
Arkansas State Office, 700 W. Capitol Ave., Rm. 3416, Little Rock, AR 
72201-3225, (501) 301-3250, TDD (501) 301-3279, Cathy Jones
California State Office, 430 G Street, Agency 4169, Davis, CA 95616-
4169, (530) 792-5819 or, (530) 792-5830, TDD (530) 792-5848, Millie 
Manzanedo or, Jeff Deiss
Colorado State Office, 655 Parfet Street, Room E100, Lakewood, CO 
80215,

[[Page 81643]]

(303) 236-2801 (ext. 122), TDD (303) 236-1590, ``Sam'' Mitchell
Connecticut--Served by Massachusetts State Office
Delaware and Maryland State Office, 5201 South Dupont Highway, PO Box 
400, Camden, DE 19934-9998, (302) 697-4353, TDD (302) 697-4303, Pat 
Baker
Florida & Virgin Islands State Office, 4440 N.W. 25th Place, 
Gainesville, FL 32614-7010, (352) 338-3465, TDD (352) 338-3499, Joseph 
P. Fritz
Georgia State Office, Stephens Federal Building, 355 E. Hancock Avenue, 
Athens, GA 30601-2768, (706) 546-2164, TDD (706) 546-2034, Wayne Rogers
Guam--Served by Hawaii State Office
Hawaii, Guam, & Western Pacific Territories State Office, Room 311, 
Federal Building, 154 Waianuenue Avenue, Hilo, HI 96720, (808) 933-
8316, TDD (808) 933-8321, Abraham Kubo
Idaho State Office, Suite A1, 9173 West Barnes Dr., Boise, ID 83709, 
(208) 378-5630, TDD (208) 378-5644, LaDonn McElligott
Illinois State Office, Illini Plaza, Suite 103, 1817 South Neil Street, 
Champaign, IL 61820, (217) 398-5412 (ext. 256), TDD (217) 398-5396, 
Barry L. Ramsey
Indiana State Office, 5975 Lakeside Boulevard, Indianapolis, IN 46278, 
(317) 290-3100 (ext. 423), TDD (317) 290-3343, John Young
Iowa State Office, 873 Federal Building, 210 Walnut Street, Des Moines, 
IA 50309, (515) 284-4493, TDD (515) 284-4858, Bruce McGuire
Kansas State Office, 1200 SW Executive Drive, PO Box 4653, Topeka, KS 
66604, (785) 271-2718, TDD (785) 271-2767, Gary Schumaker
Kentucky State Office, 771 Corporate Drive, Suite 200, Lexington, KY 
40503, (859) 224-7325, TDD (859) 224-7422, Paul Higgins
Louisiana State Office, 3727 Government Street, Alexandria, LA 71302, 
(318) 473-7962, TDD (318) 473-7655, Yvonne R. Emerson
Maine State Office, 967 Illinois Ave., Suite 4, PO Box 405, Bangor, ME 
04402-0405, (207) 990-9110, TDD (207) 942-7331, Dale D. Holmes
Maryland--Served by Delaware State Office
Massachusetts, Connecticut, & Rhode Island State Office, 451 West 
Street, Amherst, MA 01002, (413) 253-4333, TDD (413) 253-7068, Donald 
Colburn
Michigan State Office, 3001 Coolidge Road, Suite 200, East Lansing, MI 
48823, (517) 324-5192, TDD (517) 337-6795, Philip Wolak
Minnesota State Office, 410 AgriBank Building, 375 Jackson Street, St. 
Paul, MN 55101-1853, (651) 602-7820, TDD (651) 602-3799, Jackie 
Goodnough
Mississippi State Office, Federal Building, Suite 831, 100 W. Capitol 
Street, Jackson, MS 39269, (601) 965-4325, TDD (601) 965-5850, Darnella 
Smith-Murray
Missouri State Office, 601 Business Loop 70 West, Parkade Center, Suite 
235, Columbia, MO 65203, (573) 876-0990, TDD (573) 876-9301, Gary 
Frisch
Montana State Office, Unit 1, Suite B, 900 Technology Blvd., Bozeman, 
MT 59715, (406) 585-2515, TDD (406) 585-2562, Craig Hildreth
Nebraska State Office, Federal Building, room 152, 100 Centennial Mall 
N, Lincoln, NE 68508, (402) 437-5567, TDD (402) 437-5093, Byron Fischer
Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-
9910, (775) 887-1222 (ext. 13), TDD (775) 885-0633, William L. Brewer
New Hampshire State Office, Concord Center, Suite 218, Box 317, 10 
Ferry Street, Concord, NH 03301-5004, (603) 223-6046, TDD (603) 229-
0536, Jim Fowler
New Jersey State Office, Tarnsfield Plaza, Suite 22, 790 Woodland Road, 
Mt. Holly, NJ 08060, (609) 265-3631, TDD (609) 265-3687, George Hyatt, 
Jr.
New Mexico State Office, 6200 Jefferson St., NE, Room 255, Albuquerque, 
NM 87109, (505) 761-4944, TDD (505) 761-4938, Carmen N. Lopez
New York State Office, The Galleries of Syracuse, 441 S. Salina Street, 
Suite 357, Syracuse, NY 13202, (315) 477-6419, TDD (315) 477-6447, 
George N. Von Pless
North Carolina State Office, 4405 Bland Road, Suite 260, Raleigh, NC 
27609, (919) 873-2062, TDD (919) 873-2003, Eileen Nowlin
North Dakota State Office, Federal Building, Room 208, 220 East Rosser, 
PO Box 1737, Bismarck, ND 58502, (701) 530-2049, TDD (701) 530-2113, 
Kathy Lake
Ohio State Office, Federal Building, Room 507, 200 North High Street, 
Columbus, OH 43215-2477, (614) 469-5165, TDD (614) 469-5757, Gerald 
Arnott
Oklahoma State Office, 100 USDA, Suite 108, Stillwater, OK 74074-2654, 
(405) 742-1070, TDD (405) 742-1007, Phil Reimers
Oregon State Office, 101 SW Main, Suite 1410, Portland, OR 97204-3222, 
(503) 414-3325, TDD (503)414-3387, Joyce Hein
Pennsylvania State Office, One Credit Union Place, Suite 330, 
Harrisburg, PA 17110-2996, (717) 237-2281, TDD (717) 237-2261, Gary 
Rothrock
Puerto Rico State Office, New San Juan Office Bldg., Room 501, 159 
Carlos E. Chardon Street, Hato Rey, PR 00918-5481, (787) 766-5095 (ext. 
254), TDD 1-800-274-1572, Lourdes Colon
Rhode Island--Served by Massachusetts State Office
South Carolina State Office, Strom Thurmond Federal Building, 1835 
Assembly Street, Room 1007, Columbia, SC 29201, (803) 253-3432, TDD 
(803) 765-5697, Larry D. Floyd
South Dakota State Office, Federal Building, Room 210, 200 Fourth 
Street, SW, Huron, SD 57350, (605) 352-1132, TDD (605) 352-1147, Dwight 
Wullweber
Tennessee State Office, Suite 300, 3322 West End Avenue,
Nashvile, TN 37203-1084, (615) 783-1300, TDD (615) 783-1397, G. Benson 
Lasater
Texas State Office, Federal Building, Suite 102, 101 South Main, 
Temple, TX 76501, (254) 742-9755, TDD (254) 742-9712, Eugene G. Pavlat
Utah State Office, Wallace F. Bennett Federal Building, 125 S. State 
Street, Room 4311, Salt Lake City, UT 84147-0350, (801) 524-4324, TDD 
(801) 524-3309, Robert L. Milianta
Vermont State Office, City Center, 3rd Floor, 89 Main Street, 
Montpelier, VT 05602, (802) 828-6028, TDD (802) 223-6365, Sandra 
Mercier
Virgin Islands--Served by Florida State Office
Virginia State Office, Culpeper Building, Suite 238, 1606 Santa Rosa 
Road, Richmond, VA 23229, (804) 287-1582, TDD (804) 287-1753, Carlton 
Jarratt
Washington State Office, Suite B, 1835 Black Lake Boulevard, SW, 
Olympia, WA 98512-5715, (360) 704-7707, TDD (360) 704-7760, Deborah 
Davis
Western Pacific Territories--Served by Hawaii State Office
West Virginia State Office, Federal Building, 75 High Street, Room 320, 
Morgantown, WV 26505-7500, (304) 291-4793, TDD (304) 284-5941, Sue 
Snodgrass
Wisconsin State Office, 4949 Kirschling Court, Stevens Point, WI 54481, 
(715) 345-7620 (ext. 7145), TDD (715) 345-7614, Sherry Engel
Wyoming State Office, 100 East B, Federal Building, Room 1005, PO Box 
820, Casper, WY 82602, (307) 261-6315, TDD (307) 261-6333, Charles Huff

[[Page 81644]]


FOR FURTHER INFORMATION CONTACT:
For general information, applicants may contact Linda Armour, Senior 
Loan Officer, Multi-Family Housing Processing Division, Rural Housing 
Service, United States Department of Agriculture, Stop 0781, 1400 
Independence Avenue, SW, Washington, DC, 20250, telephone (202) 720-
1753 (voice) (this is not a toll free number) or (800) 877-8339 (TDD-
Federal Information Relay Service).

SUPPLEMENTARY INFORMATION:

Programs Affected

    The Rural Rental Housing program is listed in the Catalog of 
Federal Domestic Assistance under Number 10.415, Rural Rental Housing 
Loans. Rental Assistance is listed in the Catalog under Number 10.427, 
Rural Rental Assistance Payments.

Explanation of 90-Day NOFA Application Deadline

    The Agency is using a 90-day application period to allow adequate 
time for our customers to complete their applications, including 
finding a suitable site and preparing the market study. In many cases, 
the process of locating a site suitable for multi-family housing is 
time-consuming. Factors such as environmental issues, zoning issues, 
and community support must be addressed. In addition, the market study 
required by RHS is complex. It is difficult to complete a high quality 
market study within a limited timeframe. Because the quality of the 
site and market are two of the most important ingredients for the long-
term success of a multi-family development, a 90-day application period 
is provided.

Discussion of Notice

I. Authority and Distribution Methodology

A. Authority

    Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) provides 
RHS with the authority to make loans to any individual, corporation, 
association, trust, Indian tribe, public or private nonprofit 
organization, consumer cooperative, or partnership to provide rental or 
cooperative housing and related facilities in rural areas for very-low, 
low, or moderate income persons or families, including elderly persons 
and persons with disabilities. Rental assistance (RA) is a tenant 
subsidy for very-low and low-income families residing in rural rental 
housing facilities with RHS financing and may be requested with 
applications for such facilities.

B. Distribution Methodology

    The total amount available for FY 2001 for section 515 is 
$114,321,087, of which $49,000,000 is available for new construction as 
follows:
Section 515 new construction funds: $16,980,753
Set-aside for nonprofits: $10,288,998
Set-aside for Underserved Counties and Colonias: $5,716,054
Set-aside for EZ, EC, and REAP zones: $14,514,195
State Rental Assistance (RA) designated reserve: $1,500,000

C. Section 515 New Construction Funds

    For fiscal year 2001, the Administrator has determined that it 
would not be practical to allocate funds to States because of funding 
limitations; therefore, section 515 new construction funds will be 
distributed to States based on a National competition, as follows:
    1. States will accept, review, score, and rank requests in 
accordance with 7 CFR part 1944, subpart E. The scoring factors are:
    (a) The presence and extent of leveraged assistance for the units 
that will serve RHS income-eligible tenants at basic rents comparable 
to those if RHS provided full financing, computed as a percentage of 
the RHS total development cost (TDC). RHS TDC excludes non-RHS eligible 
costs such as a developer's fee. The required applicant contribution is 
not considered leveraged assistance. Leveraged assistance includes 
loans and grants from other sources, contributions from the applicant 
above the required contribution indicated by the Sources and Uses 
Comprehensive Evaluation (available from the Rural Development State 
Office) and tax abatements or other savings in operating costs provided 
that, at the end of the abatement period when the benefit is no longer 
available, the basic rents are comparable to or lower than the basic 
rents if RHS provided full financing. Loan proposals that include 
secondary funds from other sources that have been requested but have 
not yet been committed will be processed as follows: The proposal will 
be scored based on the requested funds, provided (1) the applicant 
includes evidence of a filed application for the funds; and (2) the 
funding date of the requested funds will permit processing of the loan 
request in the current funding cycle, or, if the applicant does not 
receive the requested funds, will permit processing of the next highest 
ranked proposal in the current year. Points will be awarded in 
accordance with the following table. (0 to 20 points)

------------------------------------------------------------------------
                    Percentage of leveraging                      Points
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75 or more.....................................................       20
70-74..........................................................       19
65-69..........................................................       18
60-64..........................................................       17
55-59..........................................................       16
50-54..........................................................       15
45-49..........................................................       14
40-44..........................................................       13
35-39..........................................................       12
30-34..........................................................       11
25-29..........................................................       10
20-24..........................................................        9
15-19..........................................................        8
10-14..........................................................        7
5-9............................................................        6
0-4............................................................        0
------------------------------------------------------------------------

    (b) The units to be developed are in a colonia, tribal land, EZ, 
EC, or REAP community, or in a place identified in the State 
Consolidated Plan or State Needs Assessment as a high need community 
for multifamily housing. (20 points)
    (c) In states where RHS has an on-going formal working 
relationship, agreement, or Memorandum of Understanding (MOU) with the 
State to provide State resources (State funds, State RA, HOME funds, 
CDBG funds, or Low-Income Housing Tax Credits) for RHS proposals; or 
where the State provides preference or points to RHS proposals in 
awarding such State resources, 20 points will be provided to loan 
requests that include such State resources in an amount equal to at 
least 5 percent of the total development cost. (National office 
initiative)
    (d) The loan request includes donated land meeting the provisions 
of 7 CFR 1944.215(r)(4). (5 points)
    2. The National office will rank all requests nationwide and 
distribute funds to States in rank order, within funding and RA limits. 
If insufficient funds or RA remain for the next ranked proposal, the 
Agency will select the next ranked proposal that falls within the 
remaining levels.

D. Applications That Do Not Require New Construction Rental Assistance 
(RA)

    For fiscal year 2001, limited new construction RA is available. 
Therefore, the Agency is inviting applications to develop units in 
markets that do not require RA. The market study for non-RA proposals 
must clearly demonstrate a need and demand for the units by prospective 
tenants at income levels that can support the proposed rents without 
tenant subsidies. The proposed units must offer amenities that are 
typical for the market area at rents that are comparable to 
conventional rents in the market for similar units.

[[Page 81645]]

E. Set-Asides

    Loan requests will be accepted for the following set-asides:
1. Nonprofit Set-Aside
    An amount of $10,288,998 has been set aside for nonprofit 
applicants. All loan proposals must be in designated places in 
accordance with 7 CFR part 1944, subpart E. A State or jurisdiction may 
receive one proposal from this set-aside, which cannot exceed $1 
million. A State could get additional funds from this set-aside if any 
funds remain after funding one proposal from each participating State. 
If there are insufficient funds to fund one loan request from each 
participating State, selection will be made by point score. If there 
are any funds remaining, they will revert to the National office 
reserve. Funds from this set-aside will be available only to nonprofit 
entities, which may include a partnership that has as its general 
partner a nonprofit entity or the nonprofit entity's for-profit 
subsidiary which will be receiving low-income housing tax credits 
authorized under section 42 of the Internal Revenue Code of 1986. To be 
eligible for this set-aside, the nonprofit entity must be an 
organization that:
    (a) Will own an interest in the project to be financed and will 
materially participate in the development and the operations of the 
project;
    (b) Is a private organization that has nonprofit, tax exempt status 
under section 501(c)(3) or section 501(c)(4) of the Internal Revenue 
Code of 1986;
    (c) Has among its purposes the planning, development, or management 
of low-income housing or community development projects; and
    (d) Is not affiliated with or controlled by a for-profit 
organization.
2. Underserved Counties and Colonias Set-Aside
    An amount of $5,716,054 has been set aside for loan requests to 
develop units in the 100 most needy underserved counties or colonias as 
defined in section 509(f) of the Housing Act of 1949.
3. EZ, EC, and REAP Set-Aside
    An amount of $14,514,195 has been set aside to develop units in EZ, 
EC, or REAP communities. Loan requests that are eligible for this set-
aside may also be eligible for regular section 515 funds as a high-need 
community. The state must indicate on the list submitted to the 
National office if the request is eligible for the EZ, EC, and REAP 
set-aside and regular section 515 funds. If requests for this set-aside 
exceed available funds, selection will be made by point score.

II. Funding Limits

    A. Individual loan requests may not exceed $1 million. This applies 
to regular section 515 funds and set-aside funds. The Administrator may 
make an exception to this limit in cases where a State's average total 
development costs exceed the National average by 50 percent or more.
    B. No State may receive more than $2.5 million from regular section 
515 funds. Reserve funds, including set-aside funds, are not included 
in this cap.

III. Rental Assistance (RA)

    New construction RA will be held in the National office for use 
with section 515 Rural Rental Housing loans. RA may be requested by 
applicants, except for non-RA requests in accordance with section I.D. 
above.

IV. Application Process

    All applications for section 515 new construction funds must be 
filed with the appropriate Rural Development State office and must meet 
the requirements of 7 CFR part 1944, subpart E and section V of this 
NOFA. Incomplete applications will not be reviewed and will be returned 
to the applicant. No application will be accepted after 5:00 p.m., 
local time, on the application deadline previously mentioned unless 
that date and time is extended by a Notice published in the Federal 
Register.

V. Application Submission Requirements

    A. Each application shall include all of the information, 
materials, forms and exhibits required by 7 CFR part 1944, subpart E as 
well as comply with the provisions of this NOFA. Applicants are 
encouraged, but not required, to include a checklist and to have their 
applications indexed and tabbed to facilitate the review process. The 
Rural Development State office will base its determination of 
completeness of the application and the eligibility of each applicant 
on the information provided in the application.
    B. Applicants are advised to contact the Rural Development State 
office serving the place in which they desire to submit an application 
for the following:
    1. Application information;
    2. Any restrictions on funding availability (applications that 
exceed the National limit of $1 million will be returned to the 
applicant); and
    3. List of designated places for which applications for new section 
515 facilities may be submitted.

VI. Areas of Special Emphasis or Consideration

    A. The selection criteria contained in 7 CFR part 1944, subpart E 
includes two optional criteria, one set by the National office and one 
by the State office. This fiscal year, the National office initiative 
will be used in the selection criteria as follows: In states where RHS 
has an on-going formal working relationship, agreement, or Memorandum 
of Understanding (MOU) with the State to provide State resources (State 
funds, State RA, HOME funds, CDBG funds, or LIHTC) for RHS proposals; 
or where the State provides preference or points to RHS proposals in 
awarding these State Resources, 20 points will be provided to loan 
requests that include such State resources in an amount equal to at 
least 5 percent of the total development cost. No State selection 
criteria will be used this fiscal year.
    B. $10,288,998 is available nationwide in a set-aside for eligible 
nonprofit organizations as defined in 42 U.S.C. 1485(w).
    C. $5,716,054 is available nationwide in a set-aside for the 100 
most Underserved Counties and Colonias.
    D. $14,514,195 is available nationwide in a set-aside for EZ, EC, 
and REAP communities.
    E. $1,500,000 is available nationwide in a reserve for States with 
viable State Rental Assistance (RA) programs. In order to participate, 
States are to submit specific written information about the State RA 
program, i.e., a memorandum of understanding, documentation from the 
provider, etc., to the National Office.

    Dated: December 15, 2000.
James C. Kearney,
Administrator, Rural Housing Service.
[FR Doc. 00-32621 Filed 12-22-00; 8:45 am]
BILLING CODE 3410-XV-U