[Federal Register Volume 67, Number 249 (Friday, December 27, 2002)]
[Notices]
[Pages 79033-79036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32759]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Timeframe To Submit Applications for the Section 515 
Rural Rental Housing Program for Fiscal Year 2003

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the timeframe for submitting 
applications for the section 515 Rural Rental Housing Program for 
Fiscal Year (FY) 2003. We are publishing this Notice prior to passage 
of a final appropriations act to give applicants the maximum amount of 
time possible to complete their applications, to provide the Agency 
sufficient time to process the selected applications within the current 
fiscal year, and in order to comply with 7 CFR 1944.231. Because the 
Agency's appropriations act has not been passed, applicants are 
cautioned that the Agency cannot make commitments based on the 
anticipated funding. Expenses incurred in developing applications will 
be at the applicant's risk.

Additional Application Information

    Applications may be submitted for section 515 Rural Rental Housing 
(RRH) new construction loan funds and section 521 Rental Assistance 
(RA). Section 515 funds include the nonprofit set-aside for eligible 
nonprofit entities and the set-aside for the most Underserved Counties 
and Colonias (Cranston-Gonzalez National Affordable Housing Act). 
Section VI of this Notice gives additional information regarding the 
set-asides.

DATES: The closing deadline for receipt of all applications, including 
those for the set-asides, in response to this Notice is 5 p.m., local 
time for each Rural Development State Office on February 25, 2003. The 
application 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 
the United States Postal Service 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) 761-7740, TDD (907) 761-8905, Deborah Davis.
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., Room 3416, Little Rock, AR 
72201-3225, (501) 301-3250, TDD (501) 301-3063, Cathy Jones.
California State Office, 430 G Street, 4169, Davis, CA 95616-
4169, (530) 792-5830, TDD (530) 792-5848, Jeff Deiss.
Colorado State Office, 655 Parfet Street, Room E100, Lakewood, CO 
80215, (720) 544-2922, TDD (720) 544-2976, ``Sam'' Mitchell.
Connecticut Served by Massachusetts State Office
Delaware and Maryland State Office, 4607 South Dupont Highway, P.O. 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 32606-6563, (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 State Office, (Services all Hawaii, American Samoa and

[[Page 79034]]

Western Pacific), 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) 378-5630, TDD (208) 378-5644, LaDonn McElligott.
Illinois State Office, 2118 West Park Court, Suite A, Champaign, IL 
61821-2986, (217) 403-6222, TDD (217) 403-6240, 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, 210 Walnut Street, Room 873, Des Moines, IA 50309, 
(515) 284-4666, TDD (515) 284-4858, Julie Sleeper
Kansas State Office, 1303 SW First American Place, Suite 100, Topeka, 
KS 66604-4040, (785) 271-2721, TDD (785) 271-2767, Virginia M. 
Hammersmith
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) 253-4590, 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, 375 Jackson Street Building, Suite 410, St. 
Paul, MN 55101-1853, (651) 602-7804, TDD (651) 602-7830, Joyce Vondal
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) 876-9480, Colleen 
James
Montana State Office, Unit 1, Suite B, 900 Technology Blvd., Bozeman, 
MT 59715, (406) 585-2551, TDD (406) 585-2562, Deborah Chorlton
Nebraska State Office, Federal Building, Room 152, 100 Centennial Mall 
N, Lincoln, NE 68508, (402) 437-5594, TDD (402) 437-5093, Phil Willnerd
Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-
9910, (775) 887-1222 (ext. 25), TDD (775) 885-0633, Angilla Denton
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, 5th Floor North, Suite 500, 8000 Midlantic 
Dr., Mt. Laurel, NJ 08054, (856) 787-7740, TDD (856) 787-7784, 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 5th Floor, 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) 873-2066, TDD (919) 873-2003, Terry Strole
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) 255-2418, TDD (614) 255-2554, Melodie 
Taylor-Ward
Oklahoma State Office, 100 USDA, Suite 108, Stillwater, OK 74074-2654, 
(405) 742-1070, TDD (405) 742-1007, Phillip F. Reimers
Oregon State Office, 101 SW Main, Suite 1410, Portland, OR 97204-3222, 
(503) 414-3325, TDD (503) 414-3387, Bill Daniel
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, 654 Munoz Rivera Avenue, IBM Plaza, Suite 
601, Hato Rey, PR 00918, (787) 766-5095 (ext. 249), TDD (787) 766-5332, 
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) 352-1135, TDD (605) 352-1147, Roger 
Hazuka
Tennessee State Office, Suite 300, 3322 West End Avenue, Nashvile, TN 
37203-1084, (615) 783-1375, 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) 287-1596, TDD (804) 287-1753, CJ 
Michels
Washington State Office, Puyallup Executive Park, 1011 E. Main, Suite 
306, Puyallup, WA 98372-6771, (253) 845-9272 (ext. 5), TDD (253) 845-
0553, Robert Lund
Western Pacific Territories: Served by Hawaii State Office
West Virginia State Office, Federal Building, 75 High Street, Room 320, 
Morgantown, WV 26505-7500, (304) 284-4889, TDD (304) 284-4836, Craig 
St. Clair
Wisconsin State Office, 4949 Kirschling Court, Stevens Point, WI 54481, 
(715) 345-7615 (ext. 151), 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, Jack Hyde

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, 
20250-0781, 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.

[[Page 79035]]

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
    Nine percent of any appropriation will be set aside for eligible 
nonprofit entities and five percent will be set aside for the most 
Underserved Counties and Colonias (Cranston-Gonzalez National 
Affordable Housing Act). Additional information regarding distribution 
of funds will be provided when the appropriations act is passed.
C. Section 515 New Construction Funds
    For fiscal year 2003, 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 Rural Economic Area Partnership (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. Native American Housing 
and Self Determination Act (NAHASDA) funds may be considered a State 
Resource if the Tribal Plan for NAHASDA funds contains provisions for 
partnering with RHS for multifamily housing. (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 from any FY 2003 appropriations 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. Point score ties will 
be handled as follows: The highest ranked same-pointed proposal from 
each State will be selected, followed by the second highest ranked 
proposal, and so on, until funds are exhausted.
D. Applications That Do Not Require New Construction Rental Assistance 
(RA)
    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.
E. Set-asides
    Loan requests will be accepted for the following set-asides:
    1. Nonprofit set-aside. Nine percent of any appropriation act 
funding for the Section 515 program will be 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

[[Page 79036]]

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. [As a point of clarification, the partnership may have 
only one general partner, which must meet the above requirements. A 
partnership with more than one general partner is not eligible for this 
set-aside.]
    2. Underserved counties and colonias set-aside. Five percent of any 
appropriation act funding for the Section 515 program will be set aside 
for the 100 most needy underserved counties or colonias as defined in 
section 509(f) of the Housing Act of 1949.

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. States may receive a maximum combined total of $2.5 million from 
regular Section 515 funds and set-aside funds.

III. Rental Assistance (RA)

    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 
Notice. Incomplete applications will not be reviewed and will be 
returned to the applicant. No application will be accepted after 5 
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 Notice. 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; and
    2. List of designated places for which applications for new section 
515 facilities may be submitted.

VI. Areas of Special Emphasis or Consideration

    The selection criteria contained in 7 CFR part 1944, subpart E 
include 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 Low Income Housing Tax 
Credits (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. Native American Housing and Self Determination 
Act (NAHASDA) funds may be considered a State Resource if the Tribal 
Plan for NAHASDA funds contains provisions for partnering with RHS for 
multifamily housing. No State selection criteria will be used this 
fiscal year.

    Dated: December 20, 2002.
James E. Selmon,
Associate Administrator, Rural Housing Service.
[FR Doc. 02-32759 Filed 12-26-02; 8:45 am]
BILLING CODE 3410-XV-P