[Federal Register Volume 69, Number 66 (Tuesday, April 6, 2004)]
[Notices]
[Pages 18040-18046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-7702]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Request for Proposals (RFP): Demonstration Program for 
Agriculture, Aquaculture, and Seafood Processing and/or Fishery Worker 
Housing Grants

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Housing Service (RHS) announces the availability of 
funds, the timeframe to submit proposals, and the guidelines for 
proposals for agriculture, aquaculture, and seafood processing and/or 
fishery worker housing grants in the States of Alaska, Mississippi, 
Utah, and Wisconsin. Division A of Public Law 108-199 (Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2004) authorizes RHS to establish a demonstration 
program to provide financial assistance (grants) for processing and/or 
fishery worker housing in the States of Alaska, Mississippi, Utah, and 
Wisconsin. This RFP requests proposals from qualified private and 
public nonprofit agencies, non-profit cooperatives, state and local 
governments, and tribal organizations in Alaska, Mississippi, Utah, and 
Wisconsin to construct housing for agriculture, aquaculture, and 
seafood processing and/or fishery workers. Any one project may not 
receive grant funds of more than $1 million from this program. At least 
one project in each of the four States will be funded under this 
program (provided that a proposal is received from an eligible 
applicant in each of the four States and their proposals meet the 
requirements of this RFP). Housing facilities constructed under this 
RFP are expected to increase the supply of housing for agriculture, 
aquaculture, and seafood processing and/or fishery workers in markets 
where adequate housing is not available.

DATES: The deadline for receipt of all applications in response to this 
RFP is 5 p.m., eastern standard time, on July 6, 2004. The application 
closing deadline is firm as to date and hour. RHS will not consider any 
application that is received after the closing deadline. Applicants 
intending to mail applications must provide sufficient time to permit 
delivery on or before the closing deadline. Acceptance by a post office 
or private mailer does not constitute delivery. Facsimile (FAX), Cash 
on Delivery (COD), and postage due applications will not be accepted.

ADDRESSES: Applications should be submitted to the USDA-Rural Housing 
Service, Attention: Douglas MacDowell, Senior Loan Specialist, USDA, 
Rural Housing Service, Multi-Family Housing Processing Division, STOP 
0781, Room 1263, 1400 Independence Ave., SW., Washington, DC 20250-
0781. RHS will date and time certify incoming applications to evidence 
timely receipt and, upon request, will provide the applicant with a 
written acknowledgement of receipt.

FOR FURTHER INFORMATION CONTACT: For further information and an 
application package, including all required forms, contact Douglas 
MacDowell, Senior Loan Specialist, USDA, Rural Housing Service, Multi-
Family Housing Processing Division, Stop 0781, Room 1263, 1400 
Independence Avenue, SW., Washington, DC 20250-0781, telephone (202) 
720-1627. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    Under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq., OMB must 
approve all ``collections of information'' by RHS. The Act defines 
``collection of information'' as a requirement for ``answers to * * * 
identical reporting or recordkeeping requirements imposed on ten or 
more persons * * *.'' (44 U.S.C. 3502(3)(A)) Because this RFP will 
receive less than 10 respondents, the Paperwork Reduction Act does not 
apply.

General Information

    The agriculture, aquaculture, and seafood processing and/or fishery 
worker housing grants authorized by Public Law 108-199 are for the 
purpose of developing a housing demonstration program for agriculture, 
aquaculture, and seafood processing and/or fishery worker housing in 
markets that have a demonstrated need for housing for such workers. 
Under Public Law 108-199, RHS has the authority to award $4,970,500 in 
grant funds for a housing demonstration program for agriculture, 
aquaculture, and seafood processing and/or fishery workers in Alaska, 
Mississippi, Utah, and Wisconsin.

I. Purpose

    Public Law 108-199 authorized funds to the Department to implement 
a demonstration grant program for the construction of housing for 
agriculture, aquaculture, and seafood processing and/or fishery workers 
in Alaska, Mississippi, Utah, and Wisconsin.
    The demonstration program has been designed to increase the supply 
of rental housing for a growing segment of the population whose needs 
are not currently being met. The program is expected to provide housing 
opportunities for processing workers in markets that cannot support 
other forms of conventional and government housing models. Grantees may 
not require any occupant of the housing or related facilities, as a 
condition of occupancy, to work or be employed by any particular 
processor, fishery, or other place, or work for or be employed by any 
particular person, firm, or interest.
    Developers of housing under this program will receive a grant of up 
to 80% of the Total Development Cost (TDC) of the project. TDC includes 
all hard costs, soft costs, initial operating reserves, administrative 
fees, furnishings and equipment, and related facilities.
    Housing constructed under this program may not receive RHS Rental 
Assistance or Operating Subsidies authorized under 42 U.S.C.1490a for 
payment of tenant rents. Project financial models should be structured 
to work without rental subsidies while keeping rents affordable for the 
target population.
    Projects should be located close to tenants' workplaces and 
services as much as feasible. Location of the project is not limited to 
rural areas as defined in 42 U.S.C. 1490.

II. Project Threshold Criteria

    All applications must meet the minimum threshold requirements 
contained in this RFP. The threshold criteria are as follows:

A. Occupancy Requirements

    Eligibility for residency in facilities constructed under this RFP 
is limited to individuals and families who earn at least 40% of their 
income from work as an agriculture, aquaculture, or seafood processing 
and/or fishery worker and earn less than or equal to 60% of the 
National Median Income for a family of four as reported by the U.S. 
Census Bureau. Residents must be United States citizens or be legally 
admitted for permanent residence.

[[Page 18041]]

B. Eligible Grantees

    Eligibility for grants under this notice is limited to private and 
public nonprofit agencies, non-profit cooperatives, state and local 
governments, and tribal organizations. Applicants must possess the 
experience, knowledge, and capacity to develop affordable multifamily 
housing in rural areas. Applicants will not be considered as eligible 
applicants if they have previously been selected for similar funding 
and have not carried out the purposes of that grant as of the closing 
date of this RFP.

C. Grant Limit

    A grant under this RFP may fund up to and including 80% of a 
project's TDC. TDC includes all hard costs, soft costs, initial 
operating reserves, administrative fees, furnishings and equipment, and 
related facilities. In addition, any one project may not receive grant 
funds of more than $1 million from this program. This program will fund 
at least one project in Alaska, Mississippi, Utah, and Wisconsin 
(provided that a proposal is received from an eligible applicant in 
each of the four States and their proposals meet the requirements of 
this RFP).

D. Equity Contributions and Leveraged Funds

    As stated above, a grant may fund up to 80% of the TDC which leaves 
at least 20% of the TDC to be funded from other sources. The applicant 
is encouraged to seek funding from sources with favorable rates and 
terms in order to keep rents within the reach of the target population. 
For this reason, additional selection points will be given to proposals 
that have funding with favorable rates and terms. Examples of such 
funding sources may include the Federal Home Loan Bank, the U.S. 
Department of Housing and Urban Development, or a State, county, or 
local government. Conventional loans may also be used, however, the 
rates and terms may not be in excess of what is common in the housing 
industry. For this purpose, the interest rate of any such loan may not 
exceed 200 basis points above the 10-year Treasury bond rate as of the 
date of grant closing. The term of any loan must be a minimum of 10 
years (with a balloon) and it must be amortized over a 30 year period. 
Longer terms are preferred. The objective in setting these limits is to 
create affordable rents for the tenants. In each case, equity 
contributions and loans must be contributed and disbursed prior to the 
disbursement of any grant funds from the Agency.

E. Eligible Costs

    Eligible costs for grants under this RFP include all project 
related costs including all hard costs, soft costs, initial operating 
reserves, administrative fees, furnishings and equipment, and related 
facilities. Eligible costs also include technical assistance received 
from a non-identity of interest nonprofit organization with housing 
and/or community development experience, to assist the applicant in the 
development and packaging of its grant docket and project. Eligible 
costs for technical assistance is limited to those that are allowed 
under 7 CFR 1944.158(i) and may not exceed 4 percent of the TDC.

F. Term of Use

    The project will remain in use for the intended purpose for the 
life of the project as required under 7 CFR parts 3015, 3016, or 3019, 
as applicable. These provisions require the grant recipient to use the 
real property for the authorized purpose of the project as long as it 
is needed. The type of security instrument will be determined, prior to 
grant closing, by the Agency's Regional Office of the General Counsel.

G. Site Control

    The developer must own or demonstrate evidence of site control of 
the proposed site. At a minimum, site control should extend 180 days 
past the date of application submission and is preferred to be for one 
year. Proof of site control should be submitted with the application. 
This can be in the form of a contract of sale, option agreement, long-
term lease agreement, or deed or other documentation of ownership by 
the applicant. The applicant must exercise care in site selection. Site 
approval is subject to completion of an environmental assessment by RHS 
and sites with environmental problems will increase the amount of time 
necessary to complete this assessment. Proposals which will directly or 
indirectly impact protected resources, such as floodplains or wetlands, 
can require consideration of alternative sites, changes in project 
design, or the implementation of other mitigation measures to lessen 
adverse effects on the environment.

H. Zoning

    A zoning designation adequate to develop the type of housing and 
number of units proposed is required. Evidence of proper zoning must be 
included with the application. Where there is a clear plan to have a 
site rezoned, a narrative explaining the situation and detailing the 
process and timeline for rezoning may be accepted.

I. Utilities

    Adequate capacity to connect the project to water, sewer, 
electricity, and telephone services must be demonstrated. Letters from 
utility providers must be included in the application. If on-site 
utilities are proposed, engineering reports indicating correct soil 
types, adequate land capacity, etc. must be included in the 
application.

J. Appraisals

    As required by 7 CFR 3015.56, if land is being donated as part of 
the grantee's contribution, the market value must be set by an 
independent appraiser and certified by a responsible official of the 
grantee. An appraisal will also be required if project funds are used 
to purchase land.

K. Market Demand

    Projects funded under this RFP shall be in markets with 
demonstrated need for agriculture, aquaculture, and seafood processing 
and/or fishery worker housing. All applications should include 
documentation of this need in the form of a market analysis, survey, or 
other documentation of need.

L. Design Characteristics

    Housing constructed under this demonstration may be of any 
architectural style as long as it is permitted by local zoning laws, 
meets all applicable building codes, and fits with the character of the 
surrounding community. However, the facilities should not be of 
extravagant design and their size must be commensurate with the needs 
of the workers who will occupy the housing facility. When planning 
units for families, lower density building design and layout is 
normally desirable. Housing should be designed in such a manner that it 
will be decent, safe, sanitary, and modest in size and cost. Actual 
plans, specifications, and contract documents must be prepared in 
accordance with 7 CFR part 1924, subpart A.
    Building design is subject to the requirements of section 504 of 
the Rehabilitation Act of 1973, the Americans with Disabilities Act, 
the Fair Housing Act, and any state or local accessibility 
requirements. For these reasons, buildings must be designed and 
constructed in accordance with the Uniform Federal Accessibility 
Standards, the Americans with Disabilities Act Accessibility 
Guidelines, the Fair Housing Act Accessibility Guidelines, and any 
state or local standards.
    Particular attention should be given to 7 CFR 1924.13 which gives

[[Page 18042]]

supplemental requirements for complex construction. All construction 
contracts must be awarded on the basis of competitive bidding unless an 
exception is granted in accordance with 7 CFR 1924.13. In either case, 
the Contractor must be reliable and experienced in the construction of 
projects of similar size, design, scope, and complexity. All 
construction that is financed with grant funds from RHS is subject to 
the provisions of the Davis-Bacon Act (refer to 29 CFR parts 1, 2, and 
5). In addition, the construction contracts must contain the 
nondiscrimination language, in its entirety, that is required by E.O. 
11246 (refer to 41 CFR 60-1.4(b) subparagraphs 1-7 for the specific 
language). The plans and specifications, including the construction 
contract, must be reviewed and accepted by RHS prior to the start of 
construction.
    Until the plans and specifications have been approved and the grant 
is closed, construction work should not be started. When there are 
construction changes that affect design, costs, or time, the change 
must be documented as a contract change order and must be signed by the 
borrower, borrower's architect, contractor, and Agency representative 
before the work involved in the change is started or the costs are 
included in a payment request. Changes that do not affect design, 
costs, or time, may be handled as field orders and do not require 
Agency approval.
    RHS will conduct periodic inspections during construction to 
protect the interest of the Government.

M. Civil Rights

    Title VI of the Civil Rights Act of 1964 prohibits recipients of 
Federal financial assistance from discriminating in their programs and 
activities on the basis of race, color, or national origin. It also 
requires recipients (1) to sign a civil rights assurance agreement 
(i.e., Form RD 400-4), (2) to collect statistical data on race and 
national origin, (3) submit to the Agency timely, complete, and 
accurate compliance reports so that the Agency can determine compliance 
with program regulations and applicable civil rights laws, and (4) to 
disseminate information to the public stating that the recipient 
operates a program that is subject to the non-discrimination 
requirements of Title VI and briefly explain the procedures for filing 
complaints.
    Borrowers and grantees must take reasonable steps to ensure that 
Limited English Proficiency (LEP) persons receive the language 
assistance necessary to afford them meaningful access to USDA programs 
and activities, free of charge. Failure to ensure that LEP persons can 
effectively participate in or benefit from federally-assisted programs 
and activities may violate the prohibition under Title VI of the Civil 
Rights Act of 1964, 42 U.S.C. 2000d and Title VI regulations against 
national origin discrimination.
    Section 504 of the Rehabilitation Act of 1973 prohibits recipients 
of Federal financial assistance from discriminating against persons 
with disabilities and requires recipients to make their programs and 
activities accessible to, and usable by, persons with disabilities.
    The Fair Housing Act (Title VIII of the Civil Rights Act of 1968, 
as amended by the Fair Housing Amendments Act of 1988) prohibits 
discrimination because of race, color, religion, sex, handicap, 
familial status, and national origin in the sale, rental, or 
advertising of dwellings in providing services or availability of 
residential real estate transactions.
    The Age Discrimination Act of 1975 prohibits recipients of Federal 
financial assistance from discriminating in their programs and 
activities on the basis of age.
    As part of the grant proposal, the applicant must provide (1) a 
notice of all civil rights law suits filed against it; (2) a 
description of assistance applications they have pending in other 
Agencies and of Federal assistance being provided; (3) a description of 
any civil rights compliance reviews of the applicant during the 
preceding two years; and (4) a statement as to whether the applicant 
has been found in noncompliance with any civil rights requirements.
    Successful applicants have a duty to affirmatively further fair 
housing. Proposals will include specific steps that the applicant will 
take to promote, ensure, and affirmatively further fair housing.
    In the event Federal financial assistance will be used to obtain or 
improve real property, instruments of conveyance shall contain a 
covenant running with the land assuring non-discrimination for the 
period the real property is used for the same or similar purpose the 
Federal financial assistance is extended or for another purpose 
involving the provisions of similar services or benefits. The covenant 
shall be as follows:
     ``The property described herein was obtained or 
improved with Federal financial assistance and is subject to the 
provisions of Title VI of the Civil Rights Act of 1964, section 504 of 
the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, and 
the regulations issued thereto. This covenant is in effect for as long 
as the property continues to be used for the same or similar purpose 
for which the financial assistance was extended, or for as long as the 
above recipient owns it, whichever is longer.''
    Contractors must comply with the Equal Employment Opportunity 
Executive Order 11246, as amended, and construction contracts must 
contain the specific non-discrimination language, in its entirety, that 
is required by the Executive Order.
    Before funds are disbursed, a pre-award civil rights compliance 
review will be conducted by the Agency to determine whether the 
applicant is, and will be, in compliance with Title VI of the Civil 
Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, the 
Fair Housing Act, and the Age Discrimination Act of 1975. In addition, 
the Agency will conduct a Civil Rights Impact Analysis.

N. Environmental Requirements

    All applications are subject to satisfactory completion of the 
appropriate level of environmental review by RHS in accordance with 7 
CFR part 1940, subpart G. For the purposes of 7 CFR part 1940, subpart 
G, applications under this RFP will be considered as applications for 
the financing of multi-family housing.
    All applications are subject to the requirements of Executive Order 
12898, ``Federal Actions to Address Environmental Justice in Minority 
Populations and Low-income Populations.''
    All applications are subject to the flood insurance requirements of 
7 CFR part 1806, subpart B.

O. Applicable Regulations

    All grants funded under this program must meet the requirements of 
7 CFR part 3015 and parts 3016 or 3019, as applicable, Rural 
Development Instruction 1924-A (7 CFR part 1924, subpart A), and 1924-C 
(7 CFR part 1924, subpart C).

P. Dun and Bradstreet Data Universal Numbering System (DUNS) Number

    As required by the Office of Management and Budget (OMB), all grant 
applicants must provide a DUNS number when applying for Federal grants, 
on or after October 1, 2003. Organizations can receive a DUNS number at 
no cost by calling the dedicated toll-free DUNS Number request line at 
1-866-705-5711. Additional information concerning this requirement is 
provided in a policy directive issued by OMB and published in the 
Federal Register on June 27, 2003 (68 FR 38402-38405).

[[Page 18043]]

III. Proposal Format

    A. Proposals must include the following:
    1. Standard Form (SF)-424, ``Application for Federal Assistance.''
    2. Applicant's DUNS number.
    3. Documentation to evidence the applicant's status as a private or 
public nonprofit agency, nonprofit cooperative, state or local 
government, or tribal organization.
    4. Applicant's Financial Statements.
    5. Form HUD 935.2, ``Affirmative Fair Housing Marketing Plan.''
    6. Form RD 1944-30, ``Identity of Interest (IOI) Disclosure 
Certification'' and Form RD 1944-31, ``Identity of Interest (IOI) 
Qualification.''
    7. Form HUD 2530, ``Previous Participation Certification.''
    8. Form RD 1924-13, ``Estimate and Certificate of Actual Cost.''
    9. Form RD 1930-7, ``Multiple Family Housing Project Budget'' 
including rent schedule and operating and maintenance budget.
    10. Form RD 1940-20, ``Request for Environmental Information.''
    11. A narrative statement that documents the applicant's 
experience, knowledge, and capacity to develop multifamily housing.
    12. If the applicant has previously received, or is currently 
receiving, a similar grant, the applicant must provide documentation 
that they have successfully carried out the purposes of that grant as 
of the closing date of this RFP.
    13. A Sources and Uses Statement showing all sources of funding 
included in the proposed project. The terms and schedules of all 
sources included in the project should be included in the Sources and 
Uses Statement.
    14. Applicant organizational documents (articles of incorporation, 
by laws, etc.).
    15. A narrative description of the proposed project, including a 
description of site, housing, amenities, etc.
    16. A location map showing the site and surrounding services.
    17. Evidence of site control.
    18. Evidence of proper zoning or explanation of how proper zoning 
will be achieved.
    19. Evidence of utilities availability or evidence that the site is 
suitable for on-site utilities.
    20. A description of any related facilities including justification 
and cost of such facilities.
    21. Schematic design drawings including a site plan, building 
elevations, and floor plans.
    22. Outline specifications.
    23. A statement agreeing to pay any cost overruns from the 
applicant's own sources.
    24. Documentation of need in the form of a market study, survey, or 
other sources.
    25. A list of all other funding sources and conditional commitments 
from those funding sources. The conditional commitments must provide 
the costs of those funds (i.e., rates, terms, fees, etc.).
    26. If seeking points under Evaluation Criteria, Paragraph IV.B., a 
copy of the Tenant Services Plan and letters from the service provider 
which document that they will provide the service on-site and on a 
reoccurring basis.
    B. The above items are required for the RFP response. If a proposal 
is accepted for further processing, there will be additional submittals 
required.

IV. Evaluation Criteria

A. Leveraging (Up to 40 Points)

    Points will be awarded based on the percent of non-RHS funds 
specifically identified and designated to supplement RHS funds. 
Leveraged funds may include donated land. In the case of donated land, 
the amount of leveraging will be determined by an opinion of value to 
be prepared by an independent, licensed appraiser. Points will be 
awarded as follows:

------------------------------------------------------------------------
                     Percent of leveraging                        Points
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Over 50%.......................................................       10
21% to 50%.....................................................        5
------------------------------------------------------------------------

    Additional points will be awarded based on the cost of the 
leveraged funds. A maximum of 30 points will be awarded under this 
criteria. If a proposal has multiple funding sources, points will be 
awarded proportionately to the amount that each funding source 
provides, as a percentage of the applicant's contribution. Points will 
be awarded as follows:

------------------------------------------------------------------------
                    Cost of leveraged funds                       Points
------------------------------------------------------------------------
Grant funds without any repayment costs........................       30
Loans with interest rates below the 10-year Fed bond rate......       25
Loans with interest rates above the 10-year Fed bond rate (but        15
 less then 101 basis points above it)..........................
Loans with interest rates more than 100 basis points above the         5
 Fed bond rate (but no more than 200 points above it)..........
------------------------------------------------------------------------

B. Tenant Services (Up to 25 Points)

    Points will be awarded based on the presence of and extent to which 
a tenant services plan exists that clearly outlines services that will 
be provided to residents of the proposed project.
    These services include but are not limited to:
    1. Day care or before and after school child care.
    2. Computer learning centers.
    3. Homeownership and budget counseling.
    4. Parenting programs for young parents (such as family support 
centers), parenting skills sessions for all interested parents, and 
parent and child activities.
    5. Literacy programs (such as book clubs, toddler reading programs, 
story groups), libraries and book sharing groups or centers.
    6. Art activities or art centers for children that include 
painting, photography, ceramics, etc.
    7. Health education and referral or health care outreach centers.
    8. Job training and preparation centers.
    9. Housing services and/or community coordinators.
    10. Mentoring programs where young adults mentor adolescents or 
more established adults mentor other adults.
    11. Community meeting centers.
    12. Recreation centers located within housing complexes.
    13. Nutritional services.
    14. Transportation services.
    A Tenant Services Plan must be submitted with the application to 
receive points under this criteria. In addition, letters from the 
service provider must be submitted. The letters from the service 
providers must document that they will provide the services at the 
project site and on a regular, reoccurring basis. In addition, the 
proposed design of the housing must include the necessary physical 
space for the services to be provided on-site. Unless each of the above 
requirements are met, points will not be awarded. Five points will be 
awarded for each resident service included in the tenant services plan 
up to a maximum of 25 points.

V. Review Process

    All proposals will be evaluated by a RHS grant committee. The grant 
committee will make recommendations to the RHS Administrator concerning 
preliminary eligibility determinations and for the selection of 
proposal for further processing, based on the selection criteria 
contained in this RFP and the availability of funds. The Administrator 
will inform applicants of the status of their proposals within 30 days 
of the closing date of the RFP.
    If the proposal is accepted for further processing, the applicant 
will be

[[Page 18044]]

expected to submit additional information prior to grant obligation. In 
addition, RHS must complete the appropriate level of environmental 
review prior to grant obligation. The applicant is expected to assist 
RHS, as necessary, in the development of this environmental review. In 
the event that an application is selected for further processing and 
the applicant either declines or reduces the size of their grant 
request, the RHS National Office will, at its discretion, either select 
the next highest ranked unfunded proposal or not utilize the funds for 
this demonstration project.
    Prior to grant obligation, grant recipients shall enter into the 
grant agreement provided as Appendix A to this RFP.
    The applicant will have one year from the date of the obligation of 
grant funds to begin construction.

VI. RHS Monitoring

    During construction, RHS will take part in periodic progress 
meetings at the project site and shall inspect completed work. RHS 
approval of work completed must be given before grant funds can be 
disbursed for that work.
    RHS monitoring shall continue throughout the useful life of the 
project or until the grant is terminated under provisions established 
in 7 CFR part 3015 and parts 3016 or 3019, as applicable. Monitoring 
shall consist of initial and annual tenant certifications, civil rights 
compliance reviews, triennial physical inspections, annual proposed and 
actual operating budgets, and annual audits. If other funding sources 
involved in the project require reporting, those formats may be used in 
place of RHS methods as long as those formats meet RHS requirements.
    Tenants and grantees must execute an Agency-approved tenant 
certification form establishing the tenant's eligibility prior to 
occupancy. In addition, tenant households must be recertified and must 
execute a tenant certification form at least annually.
    Grantees will submit to a triennial (once every three years) 
physical inspection of the project. RHS will inspect for health and 
safety issues, deferred maintenance, and other physical problems that 
can endanger the provision of decent, affordable housing to the target 
population on a long-term basis.
    Annual proposed and actual operating and maintenance budgets will 
be required to insure that all project needs are being met and all RHS 
guidelines are being followed. The form of operating and maintenance 
budgets will be designated by RHS.
    The grantee must submit annual audits of the project finances to 
RHS in accordance with the requirements established by OMB, in 
accordance with in 7 CFR part 3052.

    Dated: March 31, 2004.
Arthur A. Garcia,
Administrator, Rural Housing Service.

Appendix A--Processing and/or Fishery Worker Housing Grant Agreement

United States Department of Agriculture Rural Housing Service

Processing and/or Fishery Worker Housing Grant Agreement

    This Grant Agreement (Agreement) dated --------, ------, is a 
contract for receipt of grant funds under the Processing and/or 
Fishery Worker Housing Grant Demonstration Program authorized in the 
Consolidated Appropriations Act, 2004 (Pub. L. 108-199). This grant 
will be administered under the Request for Proposals (RFP): 
Demonstration Program for Agriculture, Aquaculture, and Seafood 
Processing and/or Fishery Worker Housing Grants published in the 
Federal Register on April 6, 2004, and the regulations governing the 
Farm Labor Housing Grant program (7 CFR part 1944, subpart D and 7 
CFR part 1930, subpart C). These requirements do not supersede the 
applicable requirements for receipt of Federal funds stated in 7 CFR 
parts 3015, ``Uniform Federal Assistance Regulations,'' 3016 
``Uniform Administrative Requirements for Grants and Cooperative 
Agreements to State and Local Governments,'' or 3019, ``Uniform 
Administrative Requirements for Grants and Agreements with 
Institutions of Higher Education, Hospitals, and other Non-profit 
Organizations.'' Further, all relevant regulatory requirements apply 
to applicants whether contained in here or not.

Between

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    --------, a private or public nonprofit agency, nonprofit 
cooperative, state or local government, or tribal organization 
(Grantee) and the United States of America acting through the Rural 
Housing Service (RHS), Department of Agriculture, (Grantor)

Witnesseth:

    All references herein to ``Project'' refer to a Processing and/
or Fishery Worker Housing facility to serve a rural community 
generally known as --------. The principal amount of the grant is 
$-------- (Grant Funds) which is -------- percent of Project costs.

Whereas

    Grantee has determined to undertake the acquisition, 
construction, enlargement, capital improvement, or purchase of 
equipment for a project with a total estimated cost of $--------. 
Grantee is able to finance and has committed $-------- of Project 
costs.
    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 advanced and not 
needed for grant purposes shall be returned immediately to the 
Grantor. 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 regulation.
    As a condition of this Agreement, the Grantee assures and 
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.
    Now, therefore, in consideration of said grant, and completing 
and reviewing the collection of information
    Grantee agrees that Grantee will:
    A. Cause said Project to be constructed within the total sums 
available to it, including Grant Funds, in accordance with any 
architectural or engineering reports, and any necessary 
modifications, prepared by Grantee and approved by Grantor.
    B. Provide periodic reports as required by Grantor and permit 
periodic inspection of the Project by a representative of the 
Grantor. For grant-only Projects, Form SF-269, ``Financial Status 
Report,'' and a project performance report will be required on a 
quarterly basis (due 15 working days after each calendar quarter). A 
final project performance report will be required with the last 
``Financial Status Report.'' The final report may serve as the last 
quarterly report. Grantees shall constantly monitor performance to 
ensure that time schedules are being met, projected work by time 
periods is being accomplished, and other performance objectives are 
being achieved. The project performance reports shall include, but 
are not limited to, the following:
    1. A comparison of actual accomplishments to the objectives 
established for that period;
    2. Reasons why established objectives were not met;
    3. Problems, delays, or adverse conditions which will affect 
attainment of overall project objectives, prevent meeting time 
schedules or objectives, or preclude the attainment of particular 
project work elements during established time periods. This 
disclosure shall be accomplished by a statement of the action taken 
or planned to resolve the situation; and
    4. Objectives and timetables established for the next reporting 
period.
    C. Manage, operate, and maintain the facility, including this 
Project if less than the whole of said facility, continuously in an 
efficient and economical manner.
    D. Not use grant funds to replace any financial support 
previously provided or assured from any other source. The Grantee 
agrees that the Grantee's level of expenditure for the Project shall 
be maintained and not reduced as a result of Grant Funds.
    E. Make the public facility or services available to all persons 
in Grantee's service area without discrimination as to race, color, 
religion, sex, national origin, age, marital

[[Page 18045]]

status, or physical or mental disability at reasonable rates, 
including assessments, taxes, or fees. Grantee may make 
modifications as long as they are reasonable and nondiscriminatory.
    F. Execute any agreements required by Grantor which Grantee is 
legally authorized to execute. If any such agreement has been 
executed by Grantee as a result of a loan being made to Grantee by 
Grantor contemporaneously with the making of this grant, that 
agreement applies equally to the grant and another identical 
agreement need not be executed in connection with this grant.
    G. Repay to Grantor the Grant Funds with any legally permitted 
interest from the date of any default under its representations or 
agreements contained in this instrument. 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 previous defaults by Grantee, by judicial 
proceedings to require specific performance of the terms 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.
    H. Use the real property including land, improvements, 
structures, and appurtenances thereto, for authorized purposes of 
the grant as long as needed.
    1. Title to real property shall vest in the Grantee subject to 
the condition that the Grantee shall use the real property for the 
authorized purpose of the original grant as long as needed.
    2. The Grantee shall obtain Grantor's approval to use the real 
property in other projects when the Grantee determines that the 
property is no longer needed for the original grant purposes. Use in 
other projects shall be limited to those under other Federal grant 
programs or programs that have purposes consistent with those 
authorized for support by the Grantor.
    3. When the real property is no longer needed, as provided in 
Paragraphs H.1 and H.2 above, the Grantee shall request disposition 
instructions from the Grantor. The Grantor will observe the 
following rules in the disposition instructions:
    (a) The Grantee may be permitted to retain title after it 
compensates the Federal government in an amount computed by applying 
the Federal percentage of participation in the cost of the original 
Project to the fair market value of the property.
    (b) The Grantee may be directed to sell the property under 
guidelines provided by the Grantor and pay the Federal government an 
amount computed by applying the Federal percentage of participation 
in the cost of the original Project to the proceeds from sale (after 
deducting actual and reasonable selling and fix-up expenses, if any, 
from the sales proceeds). When the Grantee is authorized or required 
to sell the property, proper sales procedures shall be established 
that provide for competition to the extent practicable and result in 
the highest possible return.
    (c) The Grantee may be directed to transfer title to the 
property to the Federal government provided that in such cases the 
Grantee shall be entitled to compensation computed by applying the 
Grantee's percentage of participation in the cost of the program or 
Project to the current fair market value of the property.
    This Grant Agreement covers the following described real 
property (use continuation sheets as necessary).
    I. Abide by the following conditions pertaining to equipment 
which is furnished by the Grantor or acquired wholly or in part with 
Grant Funds. Equipment means tangible, non-expendable personal 
property having a useful life of more than one year and an 
acquisition cost of $5,000 or more per unit. A Grantee may use its 
own definition of equipment provided that such definition would at 
least include all equipment as defined in this Paragraph.
    1. Use of equipment.
    (a) The Grantee shall use the equipment in the Project for which 
it was acquired as long as needed. When no longer needed for the 
original project, the Grantee shall use the equipment in connection 
with its other federally sponsored activities, if any, in the 
following order of priority:
    (i) Activities sponsored by the Grantor.
    (ii) Activities sponsored by other Federal agencies.
    (b) During the time that equipment is held for use on the 
project for which it was acquired, the Grantee shall make it 
available for use on other projects if such other use will not 
interfere with the work on the project for which the property was 
originally acquired. First preference for such other use shall be 
given to Grantor sponsored projects. Second preference will be given 
to other federally sponsored projects.
    2. Disposition of equipment. When the Grantee no longer needs 
the property as provided in Paragraph I.1.(a) and (b), the equipment 
may be sold or used for other activities in accordance with the 
following standards:
    (a) Equipment with a current fair market value of less than 
$5,000. The Grantee may use the property for other activities 
without reimbursement to the Federal government or sell the property 
and retain the proceeds.
    (b) Equipment with a current fair market value of $5,000 or 
more. The Grantee may retain the property for other uses provided 
that compensation is made to the Grantor. The amount of compensation 
shall be computed by applying the percentage of Federal 
participation in the cost of the original Project to the current 
fair market value of the property. If the Grantee has no need for 
the equipment and the equipment has further use value, the Grantee 
shall request disposition instructions from the Grantor.
    (c) The Grantor shall determine whether the equipment can be 
used to meet RHS or its successor agency's requirements. If no such 
requirements exist, the availability of the property shall be 
reported, in accordance with the guidelines of the Federal Property 
Management Regulations (FPMR), to the General Services 
Administration by the Grantor to determine whether a requirement for 
the equipment exists in other Federal agencies. The Grantor shall 
issue instructions to the Grantee no later than 120 days after the 
Grantee's request and the following procedures shall govern:
    (i) If so instructed or if disposition instructions are not 
issued within 120 calendar days after the Grantee's request, the 
Grantee shall sell the equipment and reimburse the Grantor an amount 
computed by applying to the sales proceeds the percentage of Federal 
participation in the cost of the original project or program. 
However, the Grantee shall be permitted to deduct and retain from 
the Federal share 10 percent of the proceeds or $500, whichever is 
less, for the Grantee's selling and handling expenses.
    (ii) If the Grantee is instructed to ship the property 
elsewhere, the Grantee shall be reimbursed by the benefiting Federal 
agency with an amount which is computed by applying the percentage 
of the Grantee participation in the cost of the original grant 
Project or program to the current fair market value of the equipment 
plus any reasonable shipping or interim storage costs incurred.
    (iii) If the Grantee is instructed to otherwise dispose of the 
equipment, the Grantee shall be reimbursed by the Grantor for such 
costs incurred in its disposition.
    3. The Grantee's property management standards for equipment 
shall include:
    (a) Property records which accurately provide for: a description 
of the equipment; manufacturer's serial number or other 
identification number; acquisition date and cost; source of the 
equipment; percentage (at the end of budget year) of Federal 
participation in the cost of the Project for which the equipment was 
acquired; location, use, and condition of the equipment and the date 
the information was reported; and ultimate disposition data 
including sales price or the method used to determine current fair 
market value if the Grantee reimburses the Grantor for its share.
    (b) A physical inventory of equipment shall be taken and the 
results reconciled with the equipment records at least once every 
two years to verify the existence, current utilization, and 
continued need for the equipment.
    (c) A control system shall be in effect to ensure adequate 
safeguards to prevent loss, damage, or theft of the equipment. Any 
loss, damage, or theft of equipment shall be investigated and fully 
documented.
    (d) Adequate maintenance procedures shall be implemented to keep 
the equipment in good condition.
    (e) Proper sales procedures shall be established for unneeded 
equipment which would provide for competition to the extent 
practicable and result in the highest possible return.
    This Grant Agreement covers the following described equipment 
(use continuation sheets as necessary).
    J. Provide Financial Management Systems which will include:
    1. Accurate, current, and complete disclosure of the financial 
results of each grant. Financial reporting will be on an accrual 
basis.

[[Page 18046]]

    2. Records which 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.
    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.
    K. 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.
    L. Provide either an audit report, annual financial statements, 
or other documentation prepared in accordance with Grantor 
regulations to allow the Grantor to determine that funds have been 
used in compliance with the proposal, any applicable laws and 
regulations, and this Agreement.
    M. 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 an 
instrumentality of a State shall not be held accountable for 
interest earned on Grant Funds pending their disbursement.
    N. Not encumber, transfer or dispose of the property or any part 
thereof, furnished by the Grantor or acquired wholly or in part with 
Grantor funds without the written consent of the Grantor except as 
provided in Paragraphs H and I.
    O. Not duplicate other Project purposes for which monies have 
been received, are committed, or are applied to from other sources 
(public or private).
    P. From construction completion throughout the term of the grant 
(useful life of the facility), the grantee shall submit on an annual 
basis, or as needed, the following:
    1. Project Operating Budget to be completed on Form RD 1930-7 
``Multiple Family Housing Project Budget.'' All sections of the 
budget are to be completed including, but not limited to, proposed 
and actual income and expense estimates, operating and maintenance 
expenses, special account statements (reserve, tax and insurance, 
and security deposit accounts) and capital improvement budgets.
    2. Annual Tenant Certification to be completed on Form RD 1944-
8, ``Tenant Certification.'' This document shall be the official 
means by which tenant eligibility is established. This document must 
be completed by each tenant and the Grantee at the time of initial 
move-in, following a fluctuation in tenant income or change in 
employment sector (processing to non-processing), and on each annual 
lease anniversary. The Grantee shall verify tenant income and 
employment sector with pay stubs, employer letters, or other 
documents which can verify the tenant's employment in agriculture, 
aquaculture, and seafood processing and/or fishery work and the 
tenants household income.
    3. Other forms and reports as required by Federal, State, or 
local statute.
    Q. Use of Real Property. The facility shall remain in use for 
its initially designated purpose of providing housing for 
agriculture, aquaculture, and seafood processing and/or fishery 
workers throughout the useful life of the facility or until such 
facility is no longer needed in the project market area. Grantee 
will not require any occupant of the housing or related facilities, 
as a condition of occupancy, to work or be employed by any 
particular processor, fishery, or other place, or work for or be 
employed by any particular person, firm, or interest. When no longer 
needed, RHS may approve the use of the property for other uses. 
These alternative uses are limited to:
    1. Activities supported by other Federal grants or assistance 
agreements.
    2. Activities not supported by other Federal grants or 
assistance agreements but having purposes consistent with the 
purposes of the legislation under which the Processing and/or 
Fishery Worker Housing Grant Demonstration Program was made.
    Grantor Agrees That It:
    A. Will make available to Grantee for the purpose of this 
Agreement not to exceed $-------- which it will advance to Grantee 
to meet but not to exceed ---- percent of the Project development 
costs in accordance with the actual needs of Grantee as determined 
by Grantor.
    B. Will assist Grantee, within available appropriations, with 
such technical assistance as Grantor deems appropriate in planning 
the Project and coordinating the plan with local official 
comprehensive plans for essential community facilities and with any 
State or area plans for the area in which the project is located.
    C. 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.

Termination of This Agreement

    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 Project 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

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and attested with its corporate seal affixed (if applicable) by

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Attest:

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By---------------------------------------------------------------------

(Title)----------------------------------------------------------------

United States of America Rural Housing Service

By---------------------------------------------------------------------

(Name)-----------------------------------------------------------------

(Title)----------------------------------------------------------------

[FR Doc. 04-7702 Filed 4-5-04; 8:45 am]
BILLING CODE 3410-XV-P