[Federal Register Volume 67, Number 188 (Friday, September 27, 2002)]
[Rules and Regulations]
[Pages 60853-60854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24621]



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 Rules and Regulations
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  Federal Register / Vol. 67, No. 188 / Friday, September 27, 2002 / 
Rules and Regulations  

[[Page 60853]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Part 1942


Associations--Community Facilities Loans

AGENCY: Rural Housing Service, USDA.

ACTION: Final rule.

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

SUMMARY: The Rural Housing Service (RHS) hereby amends the regulations 
utilized to administer the Community Facilities loan program to remove 
administrative requirements and the requirement to complete Forms RD 
1942-14, 1942-43, and 1942-45 from Federal regulations. Forms RD 1942-
14, 1942-43, and 1942-45 are completed by Federal employees processing 
loan requests to summarize information concerning project feasibility. 
Removal of the forms from the regulation will allow us to consolidate 
the forms and print a specialized project summary for each project from 
information entered into the Rural Development automated system.

EFFECTIVE DATE: September 27, 2002.

FOR FURTHER INFORMATION CONTACT: Dan Spieldenner, Community Programs 
Senior Loan specialist, Rural Housing Service, U.S. Department of 
Agriculture, STOP 0787, 1400 Independence Avenue SW., Washington, DC 
20250-0787, telephone: (202) 720-9700.

SUPPLEMENTARY INFORMATION:

Classification

    This action is not subject to the provisions of Executive Order 
12866 since it involves only internal Agency management. This action is 
not published for proposed rulemaking because it involves only internal 
Agency management and publication for notice and comment is not 
necessary.

Programs Affected

    The Catalog of Federal Domestic Assistance Program impacted by this 
action is 10.766, Community Facilities Loans and Grants.

Intergovernmental Review

    These loans are subject to the provisions of Executive Order 12372, 
which require intergovernmental consultation with State and local 
officials. RHS conducts intergovernmental consultations for each loan 
in the manner delineated in 7 CFR, part 3015 subpart V.

Civil Justice Reform

    This final rule has been reviewed under Executive Order 12988, 
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) except as expressively provided in the regulation, no 
retroactive effect will be given to this rule; and (3) administrative 
proceedings of the National Appeals Division (7 CFR part 11) must be 
exhausted before bringing suit in court challenging action taken under 
this rule.

Environmental Impact Statement

    The action has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' The Agency has determined 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, 42 U.S.C. 4321 et seq., 
an Environmental Impact Statement is not required.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 
U.S.C. chapters 17A and 25, established requirements for Federal 
agencies to assess the effects of their regulatory actions on State, 
local, and tribal governments and the private sector. Under section 202 
of the UMRA, RHS generally must prepare a written statement, including 
a cost-benefit analysis, for proposed and final rules with Federal 
mandates that may result in expenditures to State, local, or tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any 1 year. When such a statement is needed for a 
rule, section 205 of the UMRA generally requires RHS to identify and 
consider a reasonable number of regulatory alternatives and adopt the 
least costly, most cost-effective, or least burdensome alternative that 
achieves the objectives of the rule. This rule contains no Federal 
mandates (under the regulatory provisions of title II of the UMRA) for 
State, local, and tribal governments or the private sector. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
the UMRA.

Regulatory Flexibility Act

    This rule has been reviewed with regard to the requirements of the 
Regulatory Flexibility Act (5 U.S.C. 601-612). The undersigned has 
determined and certified by signature of this document that this rule 
will not have a significant economic impact on a substantial number of 
small entities since this rulemaking action does not involve a new or 
expanded program.

Implementation

    It is the policy of this Department that rules relating to public 
property, loans, grants, benefits, or contracts shall comply with 5 
U.S.C. 553, notwithstanding the exemption of that section with respect 
to such rules. This action is not published for proposed rulemaking 
because it involves only internal Agency management and publication for 
notice and comment is unnecessary.

Paperwork Reduction Act

    The information collection and recordkeeping 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 were 
assigned OMB control number 0575-0015 in accordance with the Paperwork 
Reduction Act of 1995. Under the Paperwork Reduction Act of 1955, no 
person is required to respond to a collection of information unless it 
displays a valid OMB control number. This final rule does not impose 
any new information or recordkeeping requirements.

[[Page 60854]]

Discussion

    The Agency has determined that internal administrative forms 
completed by Agency employees are not subject to Federal regulatory 
requirements when information is obtained from other OMB-approved 
forms. Removal of administrative processing requirements and 
administrative forms will improve our ability to modernize our 
documentation process used to determine project feasibility and 
eligibility for program funding. We are developing a customized project 
summary for each project with our automated system to replace Forms RD 
1942-14, 1942-43, and 1942-45.

List of Subjects in 7 CFR Part 1942

    Community Development, Community Facilities, Loan programs--Housing 
and Community Development, Loan security, Rural areas, Waste treatment 
and disposal--Domestic, Water supply--Domestic.

PART 1942--ASSOCIATIONS

    1. The authority citation for part 1942 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1932; 7 U.S.C. 1989; 16 U.S.C. 
1005.

Subpart A--Community Facilities Loans

    2. Section 1942.5 is amended by revising paragraphs (a)(1), 
introductory, (a)(2), (a)(3), (b)(1)(ii)(C), the introductory text of 
(c) and paragraph (c)(3) to read as follows:


Sec.  1942.5  Application review and approval.

    (a) * * *
    (1) The Rural Development manager will complete the project 
summary, including written analysis and recommendations, and will 
prepare a draft letter of conditions listing all the requirements that 
the applicant must agree to meet within a specific time.
* * * * *
    (2) The State staff engineer or architect, as appropriate, will 
include a written analysis and recommendations on the project summary.
    (1) The Chief, Community Programs or Community and Business 
Programs, will review the assembled application and include in the 
project summary a written analysis and recommendations, including the 
availability of other credit and other eligibility determinations. The 
draft letter of conditions will be reviewed and any necessary 
modifications made.
    (b) * * *
    (1) * * *
    (ii)* * *
    (C) Community Facilities Project Summary.
    (c) For all applications. All letters of conditions will be 
addressed to the applicant, signed by the Rural Development Manager or 
other Agency representative designated by the State Director, and 
delivered to the applicant. Upon signing the letter of conditions, the 
Rural Development Manager will send two copies of the letter of 
conditions and two copies of the project summary to the State Director. 
The State Director will immediately send one copy of the project 
summary and a copy of the letter of conditions to the National Office, 
Attention: Community Programs. The Rural Development Manager, with 
assistance as needed from the State Office, will discuss the 
requirements of the letter of conditions with the applicant's 
representatives and afford them an opportunity to execute Form RD 1942-
46.
* * * * *
    (3) If the applicant accepts the letter of conditions, the Rural 
Development Manager will forward the executed Form RD 1942-46 and a 
signed and an unsigned copy of Form RD 1940-1 to the State Director.
* * * * *

    3. Section 1942.17(f) is amended by revising paragraph (f)(1) to 
read as follows:


Sec.  1942.17  Community facilities.

* * * * *
    (f) * * *--(1) General. Each loan will bear interest at the rate 
prescribed in RD Instruction 440.1, exhibit B (available in any Rural 
Development office). The interest rates will be set by Rural 
Development at least for each quarter of the fiscal year. All rates 
will be adjusted to the nearest one-eighth of 1 percent. The applicant 
may submit a written request prior to loan closing that the interest 
rate charged on the loan be the lower of the rate in effect at the time 
of loan approval or the rate in effect at the time of loan closing. If 
the interest rate is to be that in effect at loan closing, the interest 
rate charged on a loan involving multiple advances of Rural Development 
funds, using temporary debt instruments, shall be that in effect on the 
date when the first temporary debt instrument is issued. If no written 
request is received from the applicant prior to loan closing, the 
interest rate charged on the loan will be the rate in effect at the 
time of loan approval.
* * * * *

Subpart C--Fire and Rescue Loans


Sec.  1942.108  [Amended]

    4. Section 1942.108(b) is removed and reserved.

    Dated: September 20, 2002.
Arthur A. Garcia,
Administrator, Rural Housing Service.
[FR Doc. 02-24621 Filed 9-26-02; 8:45 am]
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