[Federal Register Volume 67, Number 64 (Wednesday, April 3, 2002)]
[Notices]
[Pages 15777-15786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8024]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Funds Availability (NOFA) Inviting Applications for the 
Rural Community Development Initiative (RCDI)

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the availability of $12 million of grant 
funds for the RCDI program through the Rural Housing Service (RHS), 
herein referred to as the Agency, USDA. Applicants must provide 
matching funds in an amount at least equal to the Federal grant. These 
grants will be made to qualified intermediary organizations that will 
provide financial and technical assistance to recipients to develop 
their capacity and ability to undertake projects related to housing, 
community facilities, or community and economic development. This 
Notice lists the information needed to submit an application for these 
funds.

DATES: The deadline for receipt of an application is 4 p.m. EST on July 
2, 2002. The application deadline is firm as to date and hour. The 
agency will not consider any application received after the deadline.

ADDRESSES: Entities wishing to apply for assistance may download the 
application requirements delineated in this Notice from the RCDI Web 
site at: www.rurdev.usda.gov/rhs/rcdi/index.htm. Applicants may also 
request application packages from: Beth Jones, Rural Housing Service, 
STOP 0787, Room 0183, 1400 Independence Ave. SW., Washington, DC 20250-
0787, Telephone (202) 720-1498, e-mail: [email protected].

FOR FURTHER INFORMATION CONTACT: Beth Jones, Senior Loan Specialist, 
Community Programs, RHS, USDA, STOP 0787, Room 0183, 1400 Independence 
Ave. SW., Washington, DC 20250-0787, Telephone (202) 720-1498, 
Facsimile (202) 690-0471, e-mail: [email protected]. You 
may also obtain information from the RCDI Web site at: 
www.rurdev.usda.gov/rhs/rcdi/index.htm.

SUPPLEMENTARY INFORMATION:

Programs Affected

    This program is listed in the Catalog of Federal Domestic 
Assistance under Number 10.446. This program is not subject to the 
provisions of Executive Order 12372, which requires intergovernmental 
consultation with State and local officials.

Paperwork Reduction Act

    The paperwork burden has been cleared by the Office of Management 
and Budget under OMB Control Number 0575-0180.

Background

    Congress created the Rural Community Development Initiative (RCDI) 
in Fiscal Year (FY) 2000 with an appropriation of $6 million under the 
Rural Community Advancement Program (RCAP). Congress appropriated $6 
million in FY 2001 for the RCDI. The funds from FY 2001 are being 
carried over to FY 2002 for utilization. Congress appropriated $6 
million in FY 2002 for

[[Page 15778]]

the RCDI. These funds are to be used solely to develop the capacity and 
ability of nonprofit organizations, low-income rural communities, or 
federally recognized tribes to undertake projects related to housing, 
community facilities, or community and economic development in rural 
areas. Qualified private and public (including tribal) intermediary 
organizations proposing to carry out financial and technical assistance 
programs will be eligible to receive the funding. The intermediary will 
be required to provide matching funds in an amount at least equal to 
the RCDI grant.

Definitions for RCDI Purposes

    Agency--the Rural Housing Service (RHS) or its successor.
    Beneficiary--entities or individuals that receive benefits from 
assistance provided by the recipient.
    Capacity--the ability of a recipient to finance and implement 
housing, community facilities, or community and economic development 
projects or provide financial and technical assistance to enhance a 
community's potential.
    Federally recognized tribes--tribal entities recognized and 
eligible for funding and services from the Bureau of Indian Affairs, 
based on the Notice in the Federal Register published by the Bureau of 
Indian Affairs on March 13, 2000, volume 65, number 49, page 13298. 
Tribally Designated Housing Entities, (TDHEs), are eligible RCDI 
recipients.
    Financial Assistance--Funds used by the intermediary to pay for the 
technical assistance program being delivered. Funds that pass through 
the intermediary to the recipient for eligible RCDI purposes.
    Fund--the RCDI grant and matching money.
    Intermediary--a qualified private nonprofit or public (including 
tribal) organization that provides financial and technical assistance 
to multiple recipients. The applicant entity must have been organized 
for a minimum of three years.
    Low-income community--an authority, district, economic development 
authority, regional council, or unit of government representing an 
incorporated city, town, village, county, township, parish, or borough. 
The location of the low-income community's office that will be 
receiving the financial and technical assistance must be in a community 
with a median household income at, or below, 80 percent of either the 
state or national median household income.
    Matching Funds--cash or confirmed funding commitments. Matching 
funds must be at least equal to the grant amount. These funds can only 
be used for eligible RCDI activities. In-kind contributions cannot be 
used as matching funds.
    Nonprofit organization--a private community-based housing or 
community development entity with a valid 501(c)(3) letter from the 
Internal Revenue Service (IRS) designating their nonprofit status.
    Recipient--the entity that receives the financial and technical 
assistance from the intermediary. The recipient must be a nonprofit 
organization, a low-income rural community, or a federally recognized 
tribe.
    Rural and Rural Area--a city, town, or unincorporated area that has 
a population of 50,000 inhabitants or less, other than urbanized areas 
immediately adjacent to a city, town, or unincorporated area that has a 
population in excess of 50,000 inhabitants. Urbanized area data will be 
based on 1990 census data because 2000 census data is not available for 
urbanized areas.
    Technical Assistance--skilled help in improving the recipient's 
abilities in the areas of housing, community facilities, or community 
and economic development. The Agency will determine whether a specific 
activity qualifies as technical assistance.

Eligibility Requirements

    1. The recipient and beneficiary, but not the intermediary, must be 
located in an eligible rural area. The applicable Rural Development 
State Office can assist in determining the eligibility of an area. A 
listing of Rural Development State Offices is included in this Notice.
    2. The name and location of recipients must be included in the 
grant application.
    3. The recipients must be nonprofit organizations, low-income rural 
communities, or federally recognized tribes based on the RCDI 
definitions of these groups.
    4. Documentation must be submitted to verify recipient eligibility. 
Acceptable documentation varies depending on the type of recipient: a 
501(c)(3) letter from the IRS is required for nonprofit recipients; for 
low-income community recipients, the Agency needs (a) evidence that the 
entity is a public body and (b) census data verifying that the median 
household income of the community, where the office receiving the 
financial and technical assistance is located, is at, or below, 80 
percent of the state or national median household income; for federally 
recognized tribes, the Agency needs the page listing their name from 
the current Federal Register list of tribal entities recognized and 
eligible for funding services (see the definition of federally 
recognized tribes for details on this list).
    5. Individuals cannot be recipients.
    6. The intermediary must provide matching funds at least equal to 
the amount of the grant.
    7. The intermediary must provide a program of financial and 
technical assistance to the recipient.
    8. The intermediary organization must have at least three years 
prior experience working with nonprofit organizations, low-income rural 
communities, or tribal organizations in the areas of housing, community 
facilities, or community and economic development.
    9. The respective minimum and maximum grant amount per intermediary 
is $50,000 and $1 million.
    10. Proposals must be structured to utilize the grant funds within 
3 years from the date of the award.
    11. Each intermediary, whether singularly or jointly, may only 
submit one application for RCDI funds under this NOFA unless the 
intermediary's participation is limited to providing all or part of the 
matching funds.
    12. Recipients can participate in more than one RCDI application; 
however, after grant selections are made, the recipient can only 
participate in multiple RCDI grants if the type of financial and 
technical assistance they will receive is not duplicative.
    13. The intermediary and the recipient cannot be the same entity. 
The recipient can be a related entity to the intermediary, if it meets 
the definition of a recipient.
    14. A nonprofit entity must already have their 501(c)(3) letter 
from the IRS when the intermediary applies for the RCDI grant. 
Organizations with pending requests for this designation are not 
considered eligible.
    15. If the recipient is a low-income community, identify the unit 
of government to which the financial and technical assistance will be 
provided (i.e., town council or village board). The financial and 
technical assistance must be provided to the organized unit of 
government representing that community, not the community at large.
    16. Nonprofits located in census designated places (CDPs) are 
eligible. CDPs are not considered eligible rural areas under low-income 
communities because they do not have a unit of government to receive 
the financial and technical assistance.

[[Page 15779]]

Eligible Fund Uses

    Fund uses must be consistent with the RCDI purpose (see 
``Background'' section of this Notice). A nonexclusive list of eligible 
grant uses includes the following.
    1. Provide financial and technical assistance to develop 
recipients' capacity and ability to undertake projects related to 
housing, community facilities, or community and economic development 
(e.g., the intermediary hires a staff person to provide technical 
assistance to the recipient, or the recipient hires a staff person, 
under the supervision of the intermediary, to carry out the financial 
and technical assistance provided by the intermediary).
    2. Develop the capacity of recipients to conduct community 
development programs (e.g. home-ownership education or training for 
minority business entrepreneurs).
    3. Develop the capacity of recipients to conduct development 
initiatives (e.g., programs that support micro-enterprise and 
sustainable development).
    4. Increase leveraging ability and access to alternative funding 
sources by providing training and staffing.
    5. Provide the financial and technical assistance component for 
essential community facilities projects.
    6. Assist recipients in completing predevelopment requirements for 
housing, community facilities, or community and economic development 
projects by providing resources for professional services (i.e., 
architectural, engineering, or legal).
    7. Improve recipient's organizational capacity by providing 
training and resource material on developing strategic plans, board 
operations, management, financial systems, and information technology.
    8. Purchase computers, software, and printers at the recipient 
level.
    9. Provide funds to recipients for training-related travel costs 
and training expenses related to RCDI.

Ineligible Fund Uses

    1. Funding a revolving loan fund.
    2. Construction (in any form).
    3. Intermediary preparation of strategic plans for recipients.
    4. Funding illegal activities.
    5. Grants to individuals.
    6. Funding a grant where there may be a conflict of interest or an 
appearance of a conflict of interest involving any action by the 
Agency.
    7. Paying obligations incurred before the beginning date or after 
the ending date of the grant agreement.
    8. Purchasing real estate.
    9. Improvement or renovation of the grantee's office space or for 
the repair or maintenance of privately owned vehicles.
    10. Any other purpose prohibited in 7 CFR parts 3015, 3016, and 
3019, as applicable.
    11. Funds cannot be used for recipient's general operating costs.

Program Examples

    The purpose of this initiative is to develop or increase the 
recipient's capacity through a program of financial and technical 
assistance to perform in the areas of housing, community facilities, or 
community and economic development. Strengthening the recipient's 
capacity in these areas will benefit the communities they serve. The 
RCDI structure requires the intermediary (grantee) to provide a program 
of financial and technical assistance to recipients. The recipients 
will in turn provide programs to their communities (beneficiaries). 
Following are examples of eligible and ineligible purposes under the 
RCDI program. These examples are illustrative and are not meant to 
limit the activities you may propose in your application. Activities 
that meet the objective of the RCDI program will be considered 
eligible.
    1. The intermediary must work directly with the recipient, not the 
beneficiaries. An example would be that the intermediary provides 
training to the recipient on how to conduct home-ownership education 
classes. The recipient then provides ongoing home-ownership education 
to the residents of the community, the ultimate beneficiaries. This 
``train the trainer'' concept fully meets the intent of this 
initiative. The intermediary is providing financial and technical 
assistance that will build the recipient's capacity by enabling them to 
conduct home-ownership education classes for the public. This is an 
eligible purpose. However, if the intermediary directly provided home-
ownership education classes to individuals in the recipient's service 
area, this would not be an eligible purpose because the recipient would 
be bypassed.
    2. If the intermediary is working with a low-income community as 
their recipient, the intermediary must provide the financial and 
technical assistance to the entity that represents the low-income 
community and is identified in the application. Examples of entities 
representing a low-income community are a village board or a town 
council. If the intermediary provides technical assistance to the Board 
of Directors of the low-income community on how to establish a 
cooperative, this would be an eligible purpose. However, if the 
intermediary works directly with individuals from the community to 
establish the cooperative, this is not an eligible purpose. The 
recipient's capacity is built by learning skills that will enable them 
to support sustainable economic development in their communities on an 
ongoing basis.
    3. The intermediary may provide technical assistance to the 
recipient on how to create and operate a revolving loan fund (RLF). The 
intermediary may not monitor or operate the RLF. RCDI funds, including 
matching funds, cannot be used to fund RLFs.

Application Selection Process

    Rating and ranking. Applications will be rated and ranked by a 
review panel based on the ``Evaluation Criteria and Weights'' contained 
in this Notice. If there is a tie score after the applications have 
been rated and ranked, the tie will be resolved by reviewing the scores 
for ``Building Capacity'' and the applicant with the highest score in 
that category will receive a higher ranking. If the scores for 
``Building Capacity'' are the same, the scores will be compared for the 
next criterion, in sequential order, until one highest score can be 
determined.
    Initial screening. The Agency will screen each application to 
determine eligibility during the period immediately following the 
application deadline. Listed below are many of the reasons for 
rejection from our previous round of funding to help you prepare a 
better application. The following reasons for rejection are not all 
inclusive; however, they represent the majority of the applications 
previously rejected.
    1. Recipients were not located in eligible rural areas based on the 
definition in this Notice.
    2. Applicants failed to provide required documentation for 
recipients (i.e., 501(c)(3) letter for nonprofit recipients).
    3. Application did not follow the RCDI structure with an 
intermediary and recipients.
    4. Recipients were not identified in the application.
    5. Recipients cannot be individuals.
    6. Intermediary did not provide evidence that they had been 
incorporated for at least three years as the applicant entity.
    7. Applicants failed to address the ``Evaluation Criteria'' and 
were unable to compete.
    8. The purpose of the proposal did not qualify as an eligible RCDI 
purpose.
    9. Funds cannot be used for construction or renovations.

[[Page 15780]]

    10. Financial and technical assistance cannot be provided directly 
to individuals.
    The State Office will review their copy of the application and 
provide the State Director's written comments and recommendations to 
the National Office.

Evaluation Criteria and Weights

    This information should be presented in narrative form. 
Documentation must be limited to three pages per criterion with the 
exception of the attachments for ``Population'' and ``Income.''

1. Building Capacity `` Maximum 60 Points

    The applicant must demonstrate how they will improve the 
recipients' capacity, through a program of financial and technical 
assistance, as it relates to the RCDI purposes. Capacity-building 
technical assistance should provide new functions to the recipients or 
expand existing functions that will enable the recipients to undertake 
projects in the areas of housing, community facilities, or community 
and economic development, which will benefit the community. The program 
of financial and technical assistance you will provide, how you will 
deliver the program, and the ability to measure the program's 
effectiveness will determine the merit of your application. All 
applications will be competitively ranked with the applications 
providing the most improvement in capacity development and measurable 
activities being ranked the highest. Capacity-building technical 
assistance may include, but is not limited to: training to conduct 
community development programs (i.e., home ownership education, 
minority business entrepreneurs, establish cooperatives, and establish 
micro-enterprises); organizational development (i.e., board operations, 
management, and financial systems); instruction on how to develop and 
implement a strategic plan; instruction on how to access alternative 
funding sources to increase leveraging opportunities; staffing (i.e., 
hire a person at intermediary level to provide technical assistance to 
recipient or hire person at recipient level to carry out financial and 
technical assistance provided by intermediary); and purchase technology 
equipment at the recipient level (i.e., computers, printers, and 
software).
    Your narrative response must address the following items:
    a. Describe in detail the type of financial and technical 
assistance you will provide to the recipients and the activities you 
will conduct to deliver the financial and technical assistance.
    b. Explain how financial and technical assistance will develop or 
increase the recipient's capacity. Indicate whether a new function is 
being developed or if existing functions are being expanded or 
performed more effectively.
    c. Identify which RCDI purpose areas will be addressed with this 
assistance: housing, community facilities, or community and economic 
development.
    d. Describe how the results of the financial and technical 
assistance will be measured. What benchmarks will be used to measure 
effectiveness?
Scoring--maximum of 60 points
    1. Type of financial and technical assistance and implementation 
activities: 0-35 points
    a. How well defined is the purpose of this proposal?
    b. Are the implementation activities specifically defined?
    c. Will the proposed implementation activities actually develop the 
recipient's capacity?
    2. How financial and technical assistance will develop capacity: 0-
10 points
    a. Is a new function being developed and will it build capacity at 
the recipient level?
    b. Is an existing function being expanded or performed more 
effectively and will it build capacity at the recipient level?
    3. RCDI purpose: 0-5 points
    a. Housing,
    b. Community facilities, or
    c. Community and economic development.
    4. Measuring outcomes: 0-10 points
    a. What benchmarks will be used to measure outcomes and 
effectiveness?
    b. Are the proposed benchmarks an effective measurement for the 
type of financial and technical assistance provided?

2. Expertise--Maximum 30 Points

    The applicant must demonstrate that they have conducted programs of 
financial and technical assistance and achieved measurable results in 
the areas of housing, community facilities, or community and economic 
development in rural areas. All applications will be competitively 
ranked using the following criteria:
    List the types of financial and technical assistance your 
organization has provided for the last five years, for the following 
questions.
    a. Have you worked with nonprofit organizations in rural areas? If 
yes, list the organizations, contact information, and type of 
assistance that was provided.
    b. Have you worked with low-income communities in rural areas? If 
yes, list the communities, the type of entity you worked with (i.e., 
city government, town council, or village board), contact information, 
and the type of financial and technical assistance provided.
    c. Have you worked with federally recognized tribes or any other 
culturally diverse organizations? If yes, list the names of the tribes 
or organizations, contact information, and the type of financial and 
technical assistance provided.
    d. Provide a synopsis of what your organization does.
Scoring--maximum 30 points
    1. The applicant has worked with groups in at least one of the 
three categories: 0-6 points
    2. The types of financial and technical assistance provided are 
similar to the RCDI purposes: 0-15 points
    3. The applicant demonstrates experience in working with the types 
of entities that they have listed as recipients in their application: 
0-9 points

3. Population--Maximum 30 Points

    Population is based on the 2000 Census Data for the community the 
recipient is located in. Community is defined for scoring purposes as a 
city, town, village, county, parish, borough, or census designated 
place where the recipient's office is physically located. The applicant 
must submit a copy of the census data from the following Web site to 
verify the population figures being used for each recipient. The data 
can be accessed on the Internet at www.census.gov; click on ``American 
FactFinder'' from the left menu; click on drop down menu for ``Show 
Me''; select ``Population, Race and Hispanic or Latino (GCT)''; click 
on drop down menu under ``for''; select ``State--Place and (in selected 
states) County Subdivision''; select state from next drop down menu; 
click on ``Go''; print information for submission and highlight 
recipient locations. The average population of the recipient locations 
will be used and will be scored as follows:

------------------------------------------------------------------------
                Population                             Scoring
------------------------------------------------------------------------
5,000 or less.............................  30 points
5,001 to 10,000...........................  20 points
10,001 to 20,000..........................  10 points
20,001 to 50,000..........................  5 points
------------------------------------------------------------------------

4. Income--Maximum 30 Points

    The average of the median household incomes for the communities 
where the recipients are physically located will

[[Page 15781]]

determine the points awarded. Applicants may compare the average 
recipient median household income to the state median household income 
or the national median household income; whichever yields the most 
points. The national median household income to be used is $30,056. The 
applicant must submit a copy of the income data from the following Web 
site to verify the income for each recipient. The data being used is 
from the 1990 census. The data can be accessed from the Internet at 
www.census.gov; click on ``American FactFinder'' from left menu; click 
on drop-down menu for ``Show Me''; select ``Income and Poverty (1990 
QT); click on drop-down menu under ``for''; select ``a Place''; select 
state from next drop-down menu; select the place from the next drop-
down menu; click on ``Go''; print information for submission. Points 
will be awarded as follows:

------------------------------------------------------------------------
                                                                Scoring
             Average recipient median income is:                (points)
------------------------------------------------------------------------
Less than 60 percent of the State or National median                  30
 household income............................................
Between 60 and 70 percent of the State or National median             20
 household income............................................
Greater than 70 percent of the State or National median               10
 household income............................................
------------------------------------------------------------------------

5. Innovative Approach--Maximum 20 Points

    The applicant must demonstrate that they have developed an 
innovative approach that can be used by other organizations as a model. 
To be considered innovative, the approach must propose an easily 
replicated new or useful service or method of providing service to 
recipients that builds their capacity to improve their communities in 
the areas of housing, community facilities, or community and economic 
development. Points will be awarded to applications that have the 
highest score on the following factors:
    a. Ease of replication by nonprofit organizations, low-income rural 
communities, or federally recognized tribes;
    b. Uniqueness of proposal;
    c. Financial return to rural communities; and
    d. Need by nonprofit organization, low-income rural community, or 
federally recognized tribe.
    If warranted, up to twenty applicants will be eligible to receive 
points in this category.
    The application ranking and scoring are:

------------------------------------------------------------------------
                  Ranking                              Scoring
------------------------------------------------------------------------
10 highest-ranking applications for this     20 points
 criterion.
Next 10 highest-ranking applicationsfor      10 points
 this criterion.
------------------------------------------------------------------------

    If there is a tie score, it will be resolved by using the format 
listed under ``Rating and Ranking'' under ``Application Selection 
Process'' elsewhere in this Notice.

6. Soundness of Approach--Maximum 50 Points

    The applicant can receive up to 50 points for soundness of 
approach. The overall proposal will be considered under this criterion. 
Applicants must list the page numbers in the application that address 
these factors.
    a. Has the applicant demonstrated their ability to provide the 
proposed financial and technical assistance based on prior 
accomplishments? 0-5 points
    b. The proposed financial and technical assistance program is 
clearly stated and the applicant has defined how this proposal will be 
implemented. The plan for implementation is viable: 0-20 points
    c. Cost effectiveness will be evaluated based on the budget in the 
application. The proposed grant amount and matching funds should be 
utilized to maximize capacity building at the recipient level: 0-15 
points
    d. How closely the proposal fits the objectives for which 
applications were invited: 0-10 points

7. Geographic Distribution Points--20 Points

    Applicant must provide a map that specifically describes the areas 
covered by their recipients. After applications have been evaluated and 
awarded points under the first six criteria, the Agency may award 20 
points per application to promote a broad geographic distribution of 
RCDI funds.

8. Purpose Distribution Points--20 Points

    Applicant must state the primary purpose of their application 
(i.e., housing, community facilities, or community and economic 
development). After applications have been evaluated and awarded points 
under the first six criteria, the Agency may award 20 points per 
application to promote diversity of RCDI purposes.

9. Proportional Distribution Points--20 Points

    Applicant must state the amount of their grant request. After 
applications have been evaluated and awarded points under the first six 
criteria, the Agency may award 20 points per application to promote 
dispersion of grant awards between the range of $50,000 to $1,000,000.

Deliverables

    Grant funds and matching funds must be used in equal proportions. 
This does not mean funds have to be used equally by line item. The 
request for reimbursement and supporting documentation must show that 
RCDI fund usage does not exceed the cumulative amount of matching funds 
used. Grant funds will be disbursed pursuant to relevant provisions of 
7 CFR parts 3015, 3016, and 3019, as applicable. Matching funds must be 
used to support the overall purpose of the RCDI program. RCDI funds 
will be disbursed on a reimbursable basis only. No advances will be 
made. Matching funds cannot be expended prior to execution of the RCDI 
Grant Agreement. No reimbursement will be made for any funds expended 
prior to execution of the RCDI Grant Agreement unless the grantee has 
requested and received written Agency approval of the costs prior to 
the actual expenditure. This exception is applicable for up to 90 days 
prior to grant closing and only applies to grantees that have received 
written approval but have not executed the RCDI Grant Agreement. The 
Agency cannot retroactively approve reimbursement for expenditures 
prior to execution of the RCDI Grant Agreement.

Grant Amounts

    In the event that the applicant is awarded a grant that is less 
than the amount requested, the applicant will be required to modify its 
application to conform to the reduced amount before execution of the 
grant agreement. The Agency reserves the right to reduce or de-obligate 
the award if acceptable modifications are not submitted by the awardee 
within 15 working days from the date the request for modification is 
made. Any modifications must be within the scope of the original 
application.

[[Page 15782]]

Program Requirements

    1. A Civil Rights Impact Analysis Certification must be completed 
by the Agency prior to grant approval.
    2. A pre-award compliance review will be conducted by the Agency 
prior to closing the grant.
    3. The intermediary and recipient must comply with title VI of the 
Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973 
and Executive Order 12250.
    4. The grantee must comply with the applicable requirements of 7 
CFR part 3015, ``Uniform Federal Assistance Regulations,'' part 3016, 
``Uniform Administrative Requirements for Grants and Cooperative 
Agreements to State and Local Governments,'' and part 3019, ``Uniform 
Administrative Requirements for Grants and Agreements with Institutions 
of Higher Education, Hospitals, and other Nonprofit Organizations.''

Program Restrictions

    Meeting expenses. In accordance with 31 U.S.C. 1345, ``Expenses of 
Meetings,'' appropriations may not be used for travel, transportation, 
and subsistence expenses for a meeting. RCDI grant funds cannot be used 
for these meeting-related expenses. Matching funds may be used to pay 
for these expenses. RCDI funds may be used to pay for a speaker as part 
of a program, equipment to facilitate the program, and the actual room 
that will house the meeting. RCDI funds can be used for travel, 
transportation, or subsistence expenses for training and technical 
assistance purposes. Any meeting or training not delineated in the 
application must be approved by the Agency to verify compliance with 31 
U.S.C. 1345. Travel and per diem expenses will be similar to those paid 
to Agency employees. Rates are based upon location. Rate information 
can be accessed on the Internet at http://policyworks.gov/perdiem. 
Grantees and recipients will be restricted to traveling coach class on 
common carrier airlines. Grantees and recipients may exceed the 
Government rate for lodging by a maximum of 20 percent. Meals and 
incidental expenses will be reimbursed at the same rate used by Agency 
employees. Mileage and gas reimbursement will be the same rate used by 
Agency employees. The current mileage and gas reimbursement rate is 
36.5 cents per mile.

Grantee Requirements

    Grantees will be required to do the following.
    1. Execute a Rural Community Development Initiative Grant 
Agreement, which is published at the end of this NOFA.
    2. Execute Form RD 1940-1, ``Request for Obligation of Funds.''
    3. Use Form SF 270, ``Request for Advance or Reimbursement'' to 
request reimbursements.
    4. Provide financial status and project performance reports on a 
quarterly basis starting with the first full quarter after the grant 
award.
    5. Maintain a financial management system that is acceptable to the 
Agency.
    6. Ensure that records are maintained to document all activities 
and expenditures utilizing RCDI grant funds and matching funds. 
Receipts for expenditures will be included in this documentation.
    7. Provide annual audits or management reports on Forms RD 442-2, 
``Statement of Budget, Income, and Equity,'' and RD 442-3, ``Balance 
Sheet,'' depending on the amount of Federal funds expended and the 
outstanding balance.
    8. Collect and maintain data provided by recipients on race, sex, 
and national origin and ensure that their recipients collect and 
maintain the same data on their beneficiaries.
    9. Provide a final project performance report.
    10. Identify and report any association or relationship with Rural 
Development employees on a format provided by the Agency.

Contents of Application Package

    A complete application for RCDI funds must include the following.
    1. A summary page listing the following items. This information 
should be double-spaced between items and not in narrative form.
    a. Applicant's name,
    b. Applicant's address,
    c. Applicant's telephone number,
    d. Name of applicant's contact person and telephone number,
    e. Applicant's fax number,
    f. County where applicant is located,
    g. Congressional district number where applicant is located,
    h. Amount of grant request,
    i. Number of recipients, and
    j. Source and amount of matching funds.
    2. A detailed Table of Contents containing page numbers for each 
component of the application.
    3. A project overview, no longer than five pages, which should 
include the following items. Please note that these items will also 
need to be addressed separately and in detail under ``Building 
Capacity'' of the ``Evaluation Criteria.''
    a. The type of financial and technical assistance to be provided 
and how it will be implemented.
    b. How the capacity and ability of the recipients will be improved.
    c. The overall goal to be accomplished.
    d. The benchmarks to be used to measure the success of the program.
    4. Organizational documents for the intermediary, which confirm 
their existence for a minimum of three years as the applicant entity.
    5. Verification of matching funds (e.g., a copy of a bank statement 
if matching funds are in cash or a copy of the confirmed funding 
commitment from the funding source). The applicant will be contacted by 
the Agency prior to grant award if verification of matching funds was 
not submitted with the application. The applicant will have 10 working 
days, from the date of contact, to submit verification of matching 
funds. If the applicant is unable to provide the verification within 
that timeframe, their application will be considered ineligible.
    6. Recipient information must include:
    a. Recipient entity name,
    b. Complete address (mailing and physical location, if different),
    c. County where located,
    d. Number of congressional district where recipient is located,
    e. Contact person's name and telephone number, and
    f. Documentation on the population composition of the service area 
of the recipient, including race, sex, and national origin.
    7. Submit evidence that the recipient entity is eligible.
    a. Nonprofits--provide a valid 501(c)(3) letter from the IRS.
    b. Low-income community--provide a copy of the 2000 census data to 
verify the population and evidence that the median household income is 
at, or below, 80 percent of either the state or national median 
household income. We will only accept data from www.census.gov. The 
specific instructions to retrieve data from this site are detailed 
under the ``Evaluation Criteria'' for ``Population'' and ``Income.''
    c. Federally recognized tribes--provide the page listing their name 
from the current Federal Register list of tribal entities published on 
March 13, 2000, volume 65, number 49, page 13298.
    8. Each of the ``Evaluation Criteria'' must be addressed 
specifically and individually by category. Present these criteria in 
narrative form. Documentation must be limited to three pages per 
criterion with the exception of attachments for ``Population'' and 
``Income.''

[[Page 15783]]

    9. A timeline identifying specific activities and proposed dates 
for completion.
    10. A detailed project budget that includes the RCDI grant amount 
and matching funds for the duration of the grant. This should be a line 
item budget, by category. Categories such as salaries, administrative, 
other, and indirect costs must be clearly defined. Supporting 
documentation listing the components of these categories must be 
included.
    11. Form SF-424, ``Application for Federal Assistance.'' (Do not 
complete Form SF-424A, ``Budget Information.'' A separate line item 
budget should be presented as described in No. 10 of this section.)
    12. Form SF-424B, ``Assurances--Non-Construction Programs.''
    13. Form AD-1047, ``Certification Regarding Debarment, Suspension, 
and Other Responsibility Matters--Primary Covered Transactions.''
    14. Form AD-1048, ``Certification Regarding Debarment, Suspension, 
Ineligibility and Voluntary Exclusion--Lower Tier Covered 
Transactions.''
    15. Form AD-1049, ``Certification Regarding Drug-Free Workplace 
Requirements.''
    16. Certification of Non-Lobbying Activities.
    17. Standard Form LLL, ``Disclosure of Lobbying Activities'', if 
applicable.
    18. Form RD 400-1, ``Equal Opportunity Agreement,'' for the 
applicant and each recipient.
    19. Form RD 400-4, ``Assurance Agreement,'' for the applicant and 
each recipient.
    20. Identify and Report any Association or Relationship with Rural 
Development Employees.
    The required forms and certifications can be downloaded from the 
RCDI Web site at: www.rurdev.usda.gov/rhs/rcdi/index.htm.

What and Where To Submit

    The original application package must be submitted to: Beth Jones, 
Rural Housing Service, STOP 0787, Room 0183, 1400 Independence Ave. 
SW., Washington, DC 20250-0787 and a copy of the application must be 
submitted to the Rural Development State Office where the applicant is 
located. A listing of Rural Development State Offices is included in 
this Notice. Applications sent electronically or by facsimile will not 
be accepted.

When To Submit

    The deadline for receipt of an application is 4 p.m. EST on July 2, 
2002. The application deadline is firm as to date and hour and applies 
to submission of the original application to the National Office in 
Washington, DC. The Agency will not consider any application received 
after the deadline. 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) 761-7722, TDD (907) 761-8905, Dean Stewart
Arizona State Office, Phoenix Corporate Center, 3003 N. Central Ave., 
Suite 900, Phoenix, AZ 85012-2906, (602) 280-8747, TDD (602) 280-8706, 
Leonard Gradillas
Arkansas State Office, 700 W. Capitol Ave., Rm. 3416, Little Rock, AR 
72201-3225, (501) 301-3257, TDD (501) 301-3279, Jesse Sharp
California State Office, 430 G Street, Agency 4169, Davis, CA 95616-
4169, (530) 792-5825, TDD (530) 792-5848, Charles M. Clendenin
Colorado State Office, 655 Parfet Street, Room E100, Lakewood, CO 
80215, (303) 236-2801 (ext. 136), TDD (303) 236-1590, Leroy W. Cruz
Connecticut, Served by Massachusetts State Office, Delaware and 
Maryland State Office, 4607 South Dupont Highway, PO Box 400, Camden, 
DE 19934-9998, (302) 697-4324, TDD (302) 697-4303, James E. Waters
Florida & Virgin Islands State Office, 4440 N.W. 25th Place, PO Box 
147010, Gainesville, FL 32614-7010, (352) 338-3440, TDD (352) 338-3499, 
Glenn E. Walden
Georgia State Office, Stephens Federal Building, 355 E. Hancock Avenue, 
Athens, GA 30601-2768, (706) 546-2171, TDD (706) 546-2034, Jerry M. 
Thomas
Guam, Served by Hawaii State Office, Hawaii, Guam, & Western Pacific 
Territories State Office, Room 311, Federal Building, 154 Waianuenue 
Avenue, Hilo, HI 96720, (808) 933-8309, TDD (808) 933-8321, Thao 
Khamoui
Idaho State Office, Suite A1, 9173 West Barnes Dr., Boise, ID 83709, 
(208) 378-5617, TDD (208) 378-5644, Daniel H. Fraser
Illinois State Office, 2118 West Park Court, Suite A, Champaign, IL 
61821, (217) 403-6200 (ext. 6209), TDD (217) 403-6240, Gerald A. 
Townsend
Indiana State Office, 5975 Lakeside Boulevard, Indianapolis, IN 46278, 
(317) 290-3109 (ext. 431), TDD (317) 290-3343, Gregg Delp
Iowa State Office, 873 Federal Building, 210 Walnut Street, Des Moines, 
IA 50309, (515) 284-4152, TDD (515) 284-4858, Dorman Otte
Kansas State Office, 1303 SW First American Place, Suite 100, Topeka, 
KS 66604-4040, (785) 271-2730, TDD (785) 271-2767, Gary L. Smith
Kentucky State Office, 771 Corporate Drive, Suite 200, Lexington, KY 
40503, (859) 224-7415, TDD (606) 224-7422, Vernon Brown
Louisiana State Office, 3727 Government Street, Alexandria, LA 71302, 
(318) 473-7940, TDD (318) 473-7655, Danny H. Magee
Maine State Office, 967 Illinois Ave., Suite 4, PO Box 405, Bangor, ME 
04402-0405, (207) 990-9125, TDD (207) 942-7331, Alan C. Daigle
Maryland, Served by Delaware State Office, Massachusetts, Connecticut, 
& Rhode Island State Office, 451 West Street, Amherst, MA 01002, (413) 
253-4318, TDD (413) 253-7068, Daniel R. Beaudette
Michigan State Office, 3001 Coolidge Road, Suite 200, East Lansing, MI 
48823, (517) 324-5192, TDD (517) 337-6795, Philip H. Wolak
Minnesota State Office, 410 AgriBank Building, 375 Jackson Street, St. 
Paul, MN 55101-1853, (651) 602-7810, TDD (651) 602-3799, James Maras
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) 876-0995, TDD (573) 876-9480, D. Clark 
Thomas
Montana State Office, Unit 1, Suite B, 900 Technology Blvd., Bozeman, 
MT 59715, (406) 585-2515, TDD (406) 585-2562, Deborah Chorlton
Nebraska State Office, Federal Building, Room 152, 100 Centennial Mall 
N, Lincoln, NE 68508, (402) 437-5559, TDD (402) 437-5093, Denise 
Brosius-Meeks
Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-
9910, (775) 887-1222 (ext. 26), TDD (775) 885-0633, Mike Holm
New Hampshire State Office, Concord Center, Suite 218, Box 317, 10 
Ferry Street, Concord, NH 03301-5004, (603) 223-6037, TDD (603) 223-
6083, William W. Konrad
New Jersey State Office, Tarnsfield Plaza, Suite 22, 790 Woodland Road, 
Mt. Holly, NJ 08060, (609) 265-3640, TDD (609) 265-3687, Michael P. 
Kelsey
New Mexico State Office, 6200 Jefferson St., NE, Room 255, Albuquerque, 
NM

[[Page 15784]]

87109, (505) 761-4955, TDD (505) 761-4938, Clyde F. Hudson
New York State Office, The Galleries of Syracuse, 441 S. Salina Street, 
Suite 357, Syracuse, NY 13202, (315) 477-6427, TDD (315) 477-6447, 
David Miller
North Carolina State Office, 4405 Bland Road, Suite 260, Raleigh, NC 
27609, (919) 873-2061, TDD (919) 873-2003, Thurman E. Burnette
North Dakota State Office, Federal Building, Room 208, 220 East Rosser, 
PO Box 1737, Bismarck, ND 58502, (701) 530-2044, TDD (701) 530-2113, 
Donald Warren
Ohio State Office, Federal Building, Room 507, 200 North High Street, 
Columbus, OH 43215-2418, (614) 255-2391, TDD (614) 255-2554, David M. 
Douglas
Oklahoma State Office, 100 USDA, Suite 108, Stillwater, OK 74074-2654, 
(405) 742-1060, TDD (405) 742-1007, Rock W. Davis
Oregon State Office, 101 SW Main, Suite 1410, Portland, OR 97204-3222, 
(503) 414-3360, TDD (503) 414-3387, Jerry W. Sheridan
Pennsylvania State Office, One Credit Union Place, Suite 330, 
Harrisburg, PA 17110-2996, (717) 237-2187, TDD (717) 237-2261, Gary 
Rothrock
Puerto Rico State Office, IBM Building--Suite 601, 654 Munos Rivera 
Avenue, Hato Rey, PR 00918-6106, (787) 766-5095 (ext. 236), TDD (787) 
766-5332, Pedro Gomez
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, Roger 
Hazuka
Tennessee State Office, Suite 300, 3322 West End Avenue, Nashvile, TN 
37203-1084, (615) 783-1345, TDD (615) 783-1397, Keith Head
Texas State Office, Federal Building, Suite 102, 101 South Main, 
Temple, TX 76501, (254) 742-9760, 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) 524-4329, TDD 
(801) 524-3309, Bonnie Carrig
Vermont State Office, City Center, 3rd Floor, 89 Main Street, 
Montpelier, VT 05602, (802) 828-6030, TDD (802) 223-6365, Rhonda 
Shippee
Virgin Islands, Served by Florida State Office, Virginia State Office, 
Culpeper Building, Suite 238, 1606 Santa Rosa Road, Richmond, VA 23229, 
(804) 287-1600, TDD (804) 287-1753, Carrie Schmidt
Washington State Office, Suite B, 1835 Black Lake Boulevard, SW, 
Olympia, WA 98512-5715, (509) 664-0203, TDD (360) 704-7760, Sandi 
Boughton
Western Pacific Territories, Served by Hawaii State Office, West 
Virginia State Office, Federal Building, 75 High Street, Room 320, 
Morgantown, WV 26505-7500, (304) 284-4868, TDD (304) 284-5941, Dianne 
Crysler
Wisconsin State Office, 4949 Kirschling Court, Stevens Point, WI 54481, 
(715) 345-7615 (ext. 131), TDD (715) 345-7614, Mark Brodziski
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

    Dated: March 28, 2002.
James C. Alsop,
Acting Administrator, Rural Housing Service.

OMB NO. 0575-0180

United States Department of Agriculture

Rural Housing Service

Rural Community Development Initiative Grant Agreement

    This grant agreement (Agreement), effective the date the Agency 
official signs the document, is a contract for receipt of grant 
funds under the Rural Community Development Initiative (RCDI).
Between---------------------------------------------------------------
a private or public or tribal organization, (Grantee or 
Intermediary) and the United States of America acting through the 
Rural Housing Service (the Agency), Department of Agriculture, 
(Grantor), for the benefit of recipients listed in Grantee's 
application for the grant.
    Witnesseth:
    The principal amount of the grant is $______________ (Grant 
Funds). Matching funds, in an amount equal to the grant funds, will 
be provided by Grantee. The Grantee and Grantor will execute Form RD 
1940-1, ``Request for Obligation of Funds''.
    Whereas,
    Grantee will provide a program of financial and technical 
assistance to develop the capacity and ability of nonprofit 
organizations, low-income rural communities, or federally recognized 
tribes to undertake projects related to housing, community 
facilities, or community and economic development in rural areas;
    Now, therefore, in consideration of said grant;
    According to the Paperwork Reduction Act of 1995, no persons are 
required to respond to a collection of information unless it 
displays a valid OMB control number. The valid OMB control number 
for this information collection is 0575-0180. The time required to 
complete this information collection is estimated to average 30 
minutes per response, including the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and reviewing the collection of information.
    Grantee agrees that Grantee will:
    A. Provide a program of financial and technical assistance in 
accordance with the proposal outlined in the application, (see 
Attachment A), the terms of which are incorporated with this 
Agreement and must be adhered to. Any changes to the approved 
program of financial technical assistance must be approved in 
writing by the Grantor;
    B. Use Grant Funds only for the purposes and activities 
specified in the application package approved by the Agency 
including the approved budget. Any uses not provided for in the 
approved budget must be approved in writing by the Agency in 
advance;
    C. Charge expenses for travel and per diem that will not exceed 
the rates paid Agency employees for similar expenses. Grantees and 
recipients will be restricted to traveling coach class on common 
carrier airlines. Lodging rates may exceed the Government rate by a 
maximum of 20 percent. Meals and incidental expenses will be 
reimbursed at the same rate used by Agency employees, which is based 
upon location. Mileage and gas will be reimbursed at the existing 
Government rate. Rates can be accessed on the Internet at http://policyworks.gov/perdiem;
    D. Charge meeting expenses in accordance with 31 U.S.C. 1345. 
Grant funds may not be used for travel, transportation, and 
subsistence expenses for a meeting. Matching funds may be used to 
pay these expenses. Any meeting or training not delineated in the 
application must be approved by the Agency to verify compliance with 
31 U.S.C. 1345.
    E. Request quarterly reimbursement for grant activities during 
the previous quarter. Reimbursement will be made on a pro rata basis 
with matching funds. Form SF 270, ``Request for Advance or 
Reimbursement,'' will be used to request reimbursement. A project 
performance report, in narrative form, and a financial report, 
reflecting the activities conducted, must accompany the request for 
reimbursement. Matching fund usage must be included in all reports.
    F. Provide periodic reports as required by the Grantor. A 
financial status report and a project performance report will be 
required on a quarterly basis (due 15 working days after each 
calendar quarter). The financial status report must show how grant 
funds and matching funds have been used to date. A final report may 
serve as the last quarterly report. Grantees shall constantly 
monitor performance to ensure that time schedules are being met and 
projected goals by time periods are being accomplished. The project 
performance reports shall include, but are not limited to, the 
following:
    1. Describe the activities that the funds reflected in the 
financial status report were used for;
    2. A comparison of actual accomplishments to the objectives for 
that period;
    3. Reasons why established objectives were not met, if 
applicable;
    4. Problems, delays, or adverse conditions which will affect 
attainment of overall

[[Page 15785]]

program objectives, prevent meeting time schedules or objectives, or 
preclude the attainment of particular objectives during established 
time periods. This disclosure shall be accomplished by a statement 
of the action taken or planned to resolve the situation;
    5. Objectives and timetables established for the next reporting 
period;
    6. If available, a summary of the race, sex, and national origin 
of the recipients and a summary from the recipients of the race, 
sex, and national origin of the beneficiaries; and
    7. The final report will also address the following:
    (a) What have been the most challenging or unexpected aspects of 
this program?
    (b) What advice would you give to other organizations planning a 
similar program? Please include strengths and limitations of the 
program. If you had the opportunity, what would you have done 
differently?
    (c) Are there any post-grant plans for this project? If yes, how 
will they be financed?
    (d) If an innovative approach was used successfully, the grantee 
must describe their program in detail for replication by other 
organizations and communities.
    G. Consider potential recipients without discrimination as to 
race, color, religion, sex, national origin, age, marital status, or 
physical or mental disability;
    H. Ensure that any services or training offered by the 
recipient, as a result of the financial and technical assistance 
received, must be made available to all persons in the recipient's 
service area without discrimination as to race, color, religion, 
sex, national origin, age, marital status, or physical or mental 
disability at reasonable rates, including assessments, taxes, or 
fees. Programs and activities must be delivered from accessible 
locations. The recipient must ensure that where there are non-
English speaking populations that materials are provided in the 
language that is spoken;
    I. Ensure recipients are required to place nondiscrimination 
statements in advertisements, notices, pamphlets and brochures 
making the public aware of their services. The Grantee and recipient 
are required to provide widespread outreach and public notification 
in promoting any type of training or services that are available 
through grant funds;
    J. The Grantee must collect and maintain data on recipients by 
race, sex, and national origin. The grantee must ensure that their 
recipients also collect and maintain data on beneficiaries by race, 
sex, and national origin as required by title VI of the Civil Rights 
Act of 1964 and must be provided to the Agency for compliance review 
purposes;
    K. Upon any default under its representations or agreements 
contained in this instrument, Grantee, at the option and demand of 
Grantor, will immediately repay to Grantor the Grant Funds with any 
legally permitted interest from the date of the default. Default by 
the Grantee will constitute termination of the grant thereby causing 
cancellation of Federal assistance under the grant. The provisions 
of this Agreement may be enforced by Grantor, at its option and 
without regard to prior waivers of this Agreement or by such other 
proceedings in law or equity, in either Federal or State courts as 
may be deemed necessary by Grantor to assure compliance with the 
provisions of this Agreement and the laws and regulations under 
which this grant is made;
    L. Provide Financial Management Systems that will include:
    1. Accurate, current, and complete disclosure of the financial 
results of each grant. Financial reporting will be on an accrual 
basis;
    2. Records that identify adequately the source and application 
of funds for grant-supported activities. Those records shall contain 
information pertaining to grant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays, and 
income related to Grant Funds and matching funds;
    3. Effective control over and accountability for all funds, 
property, and other assets. Grantees shall adequately safeguard all 
such assets and shall ensure that they are used solely for 
authorized purposes;
    4. Accounting records supported by source documentation; and
    5. Grantee tracking of fund usage and records that show matching 
funds and grant funds are used in equal proportions. The grantee 
will provide verifiable documentation regarding matching fund usage, 
i.e., bank statements or copies of funding obligations from the 
matching source.
    M. Retain financial records, supporting documents, statistical 
records, and all other records pertinent to the grant for a period 
of at least three years after grant closing except that the records 
shall be retained beyond the three-year period if audit findings 
have not been resolved. Microfilm or photocopies or similar methods 
may be substituted in lieu of original records. The Grantor and the 
Comptroller General of the United States, or any of their duly 
authorized representatives, shall have access to any books, 
documents, papers, and records of the Grantee's which are pertinent 
to the specific grant program for the purpose of making audits, 
examinations, excerpts, and transcripts;
    N. Provide an A-133 audit report if $300,000 or more of federal 
funds are expended in a one-year period. If federal funds expended 
during a one-year period are less than $300,000 and there is an 
outstanding loan balance of $300,000 or more, an audit in accordance 
with generally accepted government auditing standards is required. 
If federal funds expended during a one year period are less than 
$300,000 and there is an outstanding loan balance of less than 
$300,000, a management report may be submitted on Forms RD 442-2, 
``Statement of Budget, Income and Equity'' and 442-3, ``Balance 
Sheet'';
    O. Agree to account for and to return to Grantor interest earned 
on grant funds pending their disbursement for program purposes when 
the Grantee is a unit of local government. States and agencies or 
instrumentalities of a State are not held accountable for interest 
earned on grant funds pending their disbursement;
    P. Not encumber, transfer or dispose of the equipment or any 
part thereof, acquired wholly or in part with Grantor funds without 
the written consent of the Grantor; and
    Q. Not duplicate other program activities for which monies have 
been received, are committed, or are applied to from other sources 
(public or private).
    Grantor agrees that:
    A. It will make available to Grantee for the purpose of this 
Agreement funds in an amount not to exceed the Grant Funds. The 
funds will be disbursed to Grantee on a pro rata basis with the 
Grantee's matching funds; and
    B. At its sole discretion and at any time may give any consent, 
deferment, subordination, release, satisfaction, or termination of 
any or all of Grantee's grant obligations, with or without valuable 
consideration, upon such terms and conditions as Grantor may 
determine to be:
    1. Advisable to further the purpose of the grant or to protect 
Grantor's financial interest therein; and
    2. Consistent with both the statutory purposes of the grant and 
the limitations of the statutory authority under which it is made.
    Both Parties Agree:
    A. Extensions of this grant agreement may be approved by the 
Agency, in writing, provided in the Agency's sole discretion the 
extension is justified and there is a likelihood that the grantee 
can accomplish the goals set out and approved in the application 
package during the extension period;
    B. The Grantor must approve any changes in recipient or 
recipient composition;
    C. The Grantor has agreed to give the Grantee the Grant Funds, 
subject to the terms and conditions established by the Grantor: 
Provided, however, That any Grant Funds actually disbursed and not 
needed for grant purposes be returned immediately to the Grantor. 
This agreement shall terminate three years from this date unless 
extended or unless terminated beforehand due to default on the part 
of the Grantee or for convenience of the Grantor and Grantee. The 
Grantor may terminate the grant in whole, or in part, at any time 
before the date of completion, whenever it is determined that the 
Grantee has failed to comply with the conditions of this Agreement 
or the applicable regulations;
    D. As a condition of the Agreement, the Grantee certifies that 
it is in compliance with and will comply in the course of the 
Agreement with all applicable laws, regulations, Executive Orders, 
and other generally applicable requirements, including those 
contained in 7 CFR 3015.205(b), which are incorporated into this 
agreement by reference, and such other statutory provisions as are 
specifically contained herein. The Grantee will comply with title VI 
of the Civil Rights Act of 1964, section 504 of the Rehabilitation 
Act of 1973, and Executive Order 12250;
    E. The Grantee will ensure that the recipients comply with title 
VI of the Civil Rights Act of 1964, section 504 of the 
Rehabilitation Act of 1973 and Executive Order 12250. Each recipient 
must sign Form RD 400-1, ``Equal Opportunity Agreement'' and Form RD 
400-4, ``Assurance Agreement'';
    F. The provisions of 7 CFR part 3015, ``Uniform Federal 
Assistance Regulations,''

[[Page 15786]]

part 3016, ``Uniform Administrative Requirements for Grants and 
Cooperative Agreements to State and Local Governments,'' or part 
3019, ``Uniform Administrative Requirements for Grants and 
Agreements with Institutions of Higher Education, Hospitals, and 
Other Nonprofit Organizations,'' and the fiscal year 2002 ``Notice 
of Funds Availability (NOFA) Inviting Applications for the Rural 
Community Development Initiative (RCDI)'' are incorporated herein 
and made a part hereof by reference; and
    G. This Agreement may be terminated for cause in the event of 
default on the part of the Grantee or for convenience of the Grantor 
and Grantee prior to the date of completion of the grant purpose. 
Termination for convenience will occur when both the Grantee and 
Grantor agree that the continuation of the program will not produce 
beneficial results commensurate with the further expenditure of 
funds.
    In witness whereof, Grantee has this day authorized and caused 
this Agreement to be executed by
----------------------------------------------------------------------
Attest
----------------------------------------------------------------------
By--------------------------------------------------------------------
(Grantee)
(Title)---------------------------------------------------------------
Date------------------------------------------------------------------

United States of America

Rural Housing Service

By--------------------------------------------------------------------
    (Grantor)    (Name)      (Title)
Date------------------------------------------------------------------

Attachment A

[Application proposal submitted by grantee.]
[FR Doc. 02-8024 Filed 4-2-02; 8:45 am]
BILLING CODE 3410-XV-P