[Federal Register Volume 70, Number 48 (Monday, March 14, 2005)]
[Notices]
[Pages 12569-12575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4776]



[[Page 12569]]

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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice for Requests for Proposals for Guaranteed Loans Under the 
Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal 
Year 2005

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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

SUMMARY: This is a request for proposals for guaranteed loans under the 
section 538 Guaranteed Rural Rental Housing Program (GRRHP) pursuant to 
7 CFR 3565.4 for Fiscal Year (FY) 2005 subject to the availability of 
funding. FY 2005 funding for the section 538 program is $99.2 million. 
Applicants will submit proposals in the form of ``RESPONSES.'' The 
commitment of program dollars will be made to applicants of selected 
responses that have fulfilled the necessary requirements for 
obligation. The following paragraphs outline the timeframes, 
eligibility requirements, lender responsibilities, and the overall 
response and application processes.
    The GRRHP operates under 7 CFR part 3565. The GRRHP Origination and 
Servicing Handbook (HB-1-3565) is available to provide lenders and the 
general public with guidance on program administration. HB-1-3565, 
which contains a copy of 7 CFR part 3565 in Appendix 1, can be found at 
the Rural Development Instructions Web site address http://www.rurdev.usda.gov/regs.
    Eligible lenders are invited to submit responses for the 
development of affordable rental housing to serve rural America. The 
Rural Housing Service (RHS) will review responses submitted by eligible 
lenders, on the lender's letterhead, and signed by both the prospective 
borrower and lender. Although a complete application is not required in 
response to this Notice, eligible lenders may submit a complete 
application concurrently with the response. The submission of a 
complete application will not affect the scoring process.

DATES: The RHS will review and score all responses received through 
June 13, 2005. Those responses that are selected that subsequently 
submit complete applications and meet all Federal environmental 
requirements will receive commitments to the extent an appropriation 
act provides funding for GRRHP for FY 2005 until all funds are 
expended. If any FY 2005 funds have not been exhausted by June 13, 
2005, the Agency will continue reviewing and scoring NOFA responses 
every month after June 13, 2005. Each month after June 13, 2005, the 
Agency will select proposals with a threshold score of 25 or higher 
with priority being given based on score rank until all funds are 
expended. Priority for the selection of proposals that meet the 
threshold score of 25 will be given to the highest scoring proposals. A 
Notice will be placed in the Federal Register when all funds are 
committed for FY 2005.
    Eligible lenders intending to mail a response or application must 
provide sufficient time to permit delivery to the Submission Address on 
or before the closing deadline date and time. Acceptance by a U.S. Post 
Office or private mailer does not constitute delivery. Postage due 
responses and applications will not be accepted.
    Submission Address: Eligible lenders will send responses to the 
Multi-Family Housing Director in the State Office where the project 
will be located. 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
Debbie Andrys

Arizona State Office
Phoenix Courthouse and Federal Building
230 North First Ave., Suite 206
Phoenix, AZ 85003-1706
(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) 544-2923
TDD (800) 659-2656
Mary Summerfield

Connecticut
    Served by Massachusetts State Office

Delaware and Maryland State Office
4607 South Dupont Highway
PO Box 400
Camden, DE 19934-9998
(302) 697-4353
TDD (302) 697-4303
Pat Baker

Florida & Virgin Islands State Office
4440 N.W. 25th Place
Gainesville, FL 32606-6563
(352) 338-3465
TDD (352) 338-3499
Elizabeth M. Whitaker

Georgia State Office
Stephens Federal Building
355 E. Hancock Avenue
Athens, GA 30601-2768
(706) 546-2164
TDD (706) 546-2034
Wayne Rogers

Hawaii State Office
    (Services all Hawaii, American Samoa Guam, and Western Pacific)

Room 311, Federal Building
154 Waianuenue Avenue
Hilo, HI 96720
(808) 933-8305
TDD (808) 933-8321
Jack Mahan

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
Sue Wilhite

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

[[Page 12570]]

Bob Nadeau

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
Ghulam R. Simbal

Minnesota State Office
375 Jackson Street Building, Suite 410
St. Paul, MN 55101-1853
(651) 602-7782
TDD (651) 602-7830
Peter Lundquist

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
900 Technology Blvd. Suite B
Bozeman, MT 59715
(406) 585-2565
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
Ivan S. Graves

Oregon State Office
101 SW. Main, Suite 1410
Portland, OR 97204-3222
(503) 414-3325
TDD (503) 414-3387
Margo Donelin

Pennsylvania State Office
One Credit Union Place, Suite 330
Harrisburg, PA 17110-2996
(717) 237-2281
TDD (717) 237-2261
Martha Eberhart

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) 352-1132
TDD (605) 352-1147
Roger Hazuka or Pam Reilly

Tennessee State Office
Suite 300
3322 West End Avenue
Nashville, 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) 742-9758
TDD (254) 742-9712
Julie Hayes

Utah State Office
Wallace F. Bennett Federal Building
125 S. State Street, Room 4311
Salt Lake City, UT 84147-0350
(801) 524-4325
TDD (801) 524-3309
Janice Kocher

Vermont State Office
City Center, 3rd Floor
89 Main Street
Montpelier, VT 05602
(802) 828-6021
TDD (802) 223-6365
Heidi Setien

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
1835 Black Lake Blvd., Suite B
Olympia, WA 98512
(360) 704-7730
TDD (360) 704-7760
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
Peter Kohnen

Wyoming State Office
PO Box 11005
Casper, WY 82602
(307) 233-6715
TDD (307) 233-6733
Jack Hyde


FOR FURTHER INFORMATION CONTACT: Arlene Nunes, Senior Loan Specialist, 
Guaranteed Loans, Multi-Family Housing Processing Division, U.S. 
Department of Agriculture, South Agriculture Building, Room 1271, STOP 
0781, 1400 Independence Avenue, SW., Washington, DC 20250-0781. E-mail: 
[email protected]. Telephone: (202) 401-2307. This number is not 
toll-free. Hearing or speech-impaired persons may access that number by

[[Page 12571]]

calling the Federal Information Relay Service toll-free at (800) 877-
8339.
    Eligiblity of Prior Year Selected Notice of Funding Availability 
(NOFA) Responses: NOFA Responses selected, but not yet funded, in prior 
years, are eligible for FY 2005 program dollars. Prior year NOFA 
responses selected by RHS may compete for FY 2005 funding without 
completing a FY 2005 response. These NOFA responses are not subject to 
the scoring process. RHS will commit and obligate funds on a ``first-
come first-served basis'' only to lenders that submit a complete 
application for prior year selected NOFA response, including all 
Federal environmental documents required by 7 CFR part 1940, subpart G, 
a Form RD 3565-1, and the $2,500 application fee. FY 2005 will be the 
last fiscal year that selected prior year NOFA responses will be 
considered for funding. If prior year selections do not develop into a 
complete application and funds are not obligated to the subject 
project, the prior year NOFA response selection will be automatically 
cancelled. A new NOFA response for the project can be submitted subject 
to the conditions of the then current NOFA year.

General Program Information

    Program Purpose: The section 538 GRRHP is designed to increase the 
supply of affordable multi-family housing through partnerships between 
the RHS and major lending sources, as well as state and local housing 
finance agencies and bond issuers.
    Responses Must Be Submitted by: The Agency will only accept 
responses from GRRHP eligible or approved lenders as described in 7 CFR 
3565.102 and 3565.103 respectively.
    Qualifying Properties: Qualifying properties include new 
construction for multi-family housing units or acquisition of existing 
structures with a minimum per unit rehabilitation expenditure 
requirement in accordance with 7 CFR 3565.252. The portion of 
guaranteed funds for acquisition with rehabilitation is limited to 25 
percent of the program authority.
    Eligible Financing Sources: Any form of Federal, state, and 
conventional sources of financing can be used in conjunction with the 
loan guarantee, including Home Investment Partnership Program (HOME) 
grant funds, tax exempt bonds, and low income housing tax credits.
    Maximum Guarantee: The maximum guarantee for a permanent loan will 
be 90 percent of the unpaid balance and interest on the loan. The 
maximum guarantee on a construction loan will be 90 percent of the work 
in place, which have credit enhancements, or up to 90 percent of the 
amount actually advanced by the lender, whichever is less.
    Reimbursement of Losses: Any losses will be split on a pro-rata 
basis between the lender and the RHS from the first dollar lost.
    Interest Rate: RHS will accept the best rate negotiated between the 
lender and prospective borrower. The lender is not required to provide 
the interest rate in the response. The interest rate must be fixed over 
the term of the loan.
    Interest Credit: RHS will provide additional financial assistance 
for at least 20 percent of the loans by providing an interest credit to 
reduce the interest rate to the Long Term Monthly Applicable Federal 
Rate (AFR) subject to appropriations. The interest credit will be paid 
following the January 1st of the year in which the project has reached 
occupancy standards, and the permanent loan note guarantee is issued. 
If 20 percent of the loans have not received interest credit by June 
13, 2005, then RHS will award interest credit to those loans that 
initially requested interest credit and have the highest interest 
credit priority score until at least 20 percent of the loans have 
received interest credit. Requests for interest credit must be made in 
the response. When interest credit assistance is requested, lenders 
must state in the response the maximum basis points above the Long Term 
Monthly AFR that will be used to calculate the interest rate. Priority 
points will be given for basis points equal to or less than 250 above 
the Long Term Monthly AFR. Lenders should use the Long Term Monthly AFR 
in effect at the closing of the lender's loan. Lenders are not 
permitted to make requests for interest credit after the selection 
process has taken place.
    Due to limited funding and in order to distribute interest credit 
assistance as broadly as possible, the Agency has decided to limit the 
interest credit to $1.5 million per loan. For example, if an eligible 
request were made for interest credit on a loan of $2.5 million, up to 
$1.5 million of the loan would receive interest credit. Interest credit 
is not available for construction loans. Interest credit is only 
available for permanent loans. Lenders with projects that are viable 
with or without interest credit are encouraged to submit a response 
reflecting financial and market feasibility under both funding options. 
Responses requesting consideration under both options will not affect 
interest credit selection. However, once the interest credit funds are 
exhausted, only those responses requesting consideration under both 
funding options or the Non-Interest Credit option will be further 
considered.
    Due to limited interest credit funds and the responsibility of RHS 
to target and give priority to rural areas most in need, responses 
requesting interest credit must score a minimum of 55 points under the 
criteria established in this NOFA. In the event of ties, selection 
between responses will be by lot.
    Surcharges for Guarantee of Construction Advances: There is no 
surcharge for the guarantee of construction advances for FY 2005.
    Program Fees for FY 2005: The following information stipulates the 
program fees.
    (1) There is an initial guarantee fee of 1 percent of the total 
guarantee amount, which will be due when the loan guarantee is issued. 
In the case of a combination construction and permanent loan guarantee, 
the 1 percent initial fee will be paid when the construction loan note 
guarantee is issued. For purposes of calculating this fee, the 
guarantee amount is the product of the percentage of the guarantee 
times the initial principal amount of the guaranteed loan.
    (2) There is an annual renewal fee of 0.5 percent of the 
outstanding principal and interest of the loan. This fee will be 
collected annually on January 1st of each calendar year.
    (3) There is no fee for site assessment and market analysis or 
preliminary feasibility in FY 2005.
    (4) There is a non-refundable application fee of $2,500 when the 
application is submitted.
    (5) There is a flat fee of $500 when a lender requests RHS to 
extend the term of a guarantee commitment.
    (6) There is a flat fee of $500 when a lender requests RHS to 
reopen an application when a commitment has expired.
    (7) There is a flat fee of $1,250 when a lender requests RHS to 
approve the transfer of property and assumption of the loan to an 
eligible prospective borrower.
    (8) There is no lender application fee for lender approval in FY 
2005.
    Eligible Lenders: An eligible lender for the section 538 GRRHP as 
required by 7 CFR 3565.102 must be a licensed business entity or 
Housing Finance Agency (HFA) in good standing in the state or states 
where it conducts business. Lender eligibility requirements are 
contained in 7 CFR 3565.102. Below is a list of some of the eligible 
lender criteria under 7 CFR 3565.102:
    (1) Licensed business entity that meets the qualifications and has 
the

[[Page 12572]]

approval of the Secretary of Housing and Urban Development (HUD) to 
make multi-family housing loans that are insured under the National 
Housing Act. A complete list of HUD approved lenders can be found on 
the HUD Web site at http://www.hud.gov.
    (2) A licensed business entity that meets the qualifications and 
has the approval of the Ginnie Mae or Freddie Mac or Fannie Mae 
corporations to make multi-family housing loans that are sold to the 
same corporations. A complete list of Freddie Mac approved lenders can 
be found in Freddie Mac's Web site at http://www.freddiemac.com. Fannie 
Mae approved lenders are found at http://www.fanniemae.com. For a list 
of Ginnie Mae issuers, contact Ginnie Mae at http://www.ginniemae.gov.
    (3) A state or local HFA with a top-tier rating from Moody's or 
Standard & Poors, or member of the Federal Home Loan Bank system, and 
the demonstrated ability to underwrite, originate, process, close, 
service, manage, and dispose of multi-family housing loans in a prudent 
manner.
    (4) Be a GRRHP approved lender, defined as an entity with an 
executed multi-family housing Lender's Agreement with RHS.
    (5) Lenders that can demonstrate the capacity to underwrite, 
originate, process, close, service, manage, and dispose of multi-family 
housing loans in a prudent manner. In order to be approved the lender 
will have to have an acceptable level of financial soundness as 
determined by a lender rating service. The submission of materials 
demonstrating capacity will be required if the lender's response is 
selected. Lenders who are otherwise ineligible may become eligible if 
they maintain a correspondent relationship with an eligible lender that 
does have the capacity to underwrite, originate, process, close, 
service, manage, and dispose of multi-family housing loans in a prudent 
manner. In this case, the eligible lender must submit the response and 
application. All contractual and legal documentation will be signed 
between RHS and the lender that submitted the response and application.
    GRRHP Lender Approval Application: Lenders whose responses are 
selected will be notified by the RHS to submit a request for GRRHP 
lender approval application within 30 days of notification. Lenders 
that have received GRRHP lender approval in the past and are in good 
standing do not need to reapply for GRRHP lender approval.
    Submission of Documentation for GRRHP Lender Approval: All lenders 
that have not yet received GRRHP lender approval must submit a complete 
lender application to: Director, Multi-Family Housing Processing 
Division, Rural Housing Service, U.S. Department of Agriculture, Room 
1263, STOP 0781, 1400 Independence Avenue, SW., Washington, DC 20250-
0781. Lender applications must be identified as ``Section 538 
Guaranteed Rural Rental Housing Program'' on the envelope.
    As RHS does not have a formal application form, a complete 
application consists of a cover letter requesting GRRHP lender approval 
and the following documentation:
    (1) Request for GRRHP lender approval on the lender's letterhead;
    (2) Lenders who are HUD, Ginnie Mae, Freddie Mac or Fannie Mae 
multi-family approved lenders are required to show evidence of this 
status, such as a copy of a letter designating the distinction;
    (3) The lender's Loan Origination, Loan Servicing and Portfolio 
Management Handbooks. These handbooks should detail the lender's 
policies and procedures on loan origination through termination for 
multi-family loans;
    (4) Portfolio performance data;
    (5) Copies of standard documents that will be used in processing 
GRRHP loans;
    (6) Resumes and qualifications of key personnel that will be 
involved in the GRRHP;
    (7) Identification of standards and processes that deviate from 
those outlined in the GRRHP Origination and Servicing Handbook (HB-1-
3565) found at http://rdinit.usda.gov/regs;
    (8) A copy of the most recent audited financial statements;
    (9) Lender specific information including: (a) Legal name and 
address, (b) list of principal officers and their responsibilities, (c) 
certification that the officers and principals of the lender have not 
been debarred or suspended from Federal programs, (d) Form AD 1047, (e) 
certification that the lender is not in default or delinquent on any 
Federal debt or loan, or possesses as an outstanding finding of 
deficiency in a federal housing program, and (f) certification of the 
lender's credit rating; and
    (10) Documentation on bonding and insurance.
    GRRHP Lender Approval Requirements: Lenders who request GRRHP 
lender approval must meet the standards stipulated in the 7 CFR 
3565.103.
    Lender Responsibilities: Lenders will be responsible for the full 
range of loan origination, underwriting, management, servicing, 
compliance issues and property disposition activities associated with 
their projects. The lender will be expected to provide guidance to the 
prospective borrower on the RHS requirements during the application 
phase. Once the guarantee is issued, the lender is expected to service 
each loan it underwrites or contract these services to another capable 
entity.

Discussion of Notice

    Content of Notice Responses: All responses require lender 
information and project specific data. Incomplete responses will not be 
considered for funding. Lenders will be notified of incomplete 
responses. Complete responses are to include a signed cover letter from 
the lender on the lender's letterhead and the following information:
    (1) Lender certification--The lender must certify that the lender 
will make a loan to the prospective borrower for the proposed project, 
under specified terms and conditions subject to the issuance of the 
GRRHP guarantee. Lender certification must be on the lender's 
letterhead and signed by both the lender and the prospective borrower.
    (2) Project specific data--The lender must submit the project 
specific data below on the lender's letterhead, signed by both the 
lender and the prospective borrower.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Lender Name                                 Insert the lender's name.
-------------------------------------------
Lender Tax ID                      Insert lender's tax ID
                                             .
-------------------------------------------
Lender Contact Name                         Name of the lender contact
                                             for loan.
-------------------------------------------
Mailing Address                             Lender's complete mailing
                                             address.
-------------------------------------------
Phone                              Phone  for lender
                                             contact.
-------------------------------------------

[[Page 12573]]

 
Fax                                Insert lender's fax .
-------------------------------------------
E-mail Address                              Insert lender contact e-mail
                                             address.
-------------------------------------------
Borrower Name and Organization Type         State whether borrower is a
                                             Limited Partnership,
                                             Corporation, Indian Tribe,
                                             etc.
-------------------------------------------
Tax Classification Type                     State whether borrower is
                                             for profit, not for profit,
                                             etc.
-------------------------------------------
Borrower Tax ID                    Insert borrower's tax ID
                                             .
-------------------------------------------
Borrower Address, including County          Insert borrower's address
                                             and county.
-------------------------------------------
Borrower Phone                     Insert borrower's phone
                                             .
-------------------------------------------
Principal or Key Member for the Borrower    Insert name and title.
-------------------------------------------
Borrower Information and Statement of       Attach relevant information.
 Housing Development Experience
-------------------------------------------
New Construction or Acquisition with        State whether the project is
 Rehabilitation                              new construction or
                                             acquisition with
                                             rehabilitation.
-------------------------------------------
Project Location Town or City               Town or city in which the
                                             project is located.
-------------------------------------------
Project County                              County in which the project
                                             is located.
-------------------------------------------
Project State                               State in which the project
                                             is located.
-------------------------------------------
Project Zip Code                            Insert zip code.
-------------------------------------------
Project Congressional District              Congressional District for
                                             project location.
-------------------------------------------
Project Name                                Insert project name.
-------------------------------------------
Project Type                                Family, senior (all
                                             residents 55 years or
                                             older), or mixed.
-------------------------------------------
Property Description and Proposed           Provide as an attachment.
 Development Schedule
-------------------------------------------
Total Project Development Cost              Enter amount for total
                                             project.
-------------------------------------------
 of Units                          Insert the  of
                                             units in the project.
-------------------------------------------
Ratio of 3-5 bedroom units to total units   Insert percentage of 3-5
                                             bedroom units to total
                                             units.
-------------------------------------------
Cost Per Unit                               Total development cost
                                             divided by  of
                                             units.
-------------------------------------------
Rent                                        Proposed rent structure.
-------------------------------------------
Median Income for Community                 Provide median income for
                                             the community.
-------------------------------------------
Evidence of Site Control                    Attach relevant information.
-------------------------------------------
Description of Any Environmental Issues     Attach relevant information.
-------------------------------------------
Loan Amount                                 Insert the loan amount.
-------------------------------------------
Interest Credit (IC)                        Is interest credit requested
                                             for this loan? (Yes or No)
-------------------------------------------
Basis Points over the Long Term Monthly     Lenders seeking interest
 Applicable Federal Rate (for interest       credit must provide the
 credit requests only)                       maximum basis points above
                                             the Long Term Monthly AFR
                                             that will be used to
                                             calculate the interest
                                             rate. Priority points will
                                             be given for basis points
                                             equal to or less than 250
                                             above the Long Term Monthly
                                             AFR. Lenders should use the
                                             Long Term Monthly AFR in
                                             effect at the closing of
                                             the lender's loan.
-------------------------------------------
If Above Is Yes, Should Proposal Be         If Yes, proposal must show
 Considered Under Non-IC Selection if IC     financial feasibility for
 Funds Are Exhausted?                        Non-IC consideration.
-------------------------------------------
Borrower's Proposed Equity                  Insert amount.
-------------------------------------------
Tax Credits                                 Will the project be
                                             allocated tax credits? How
                                             much? What is the estimated
                                             value of the tax credits
                                             awarded?
-------------------------------------------
Other Sources of Funds                      List all funding sources
                                             other than tax credits and
                                             amounts for each source.
-------------------------------------------

[[Page 12574]]

 
Loan to Total Development Cost              Guaranteed loan divided by
                                             the total development costs
                                             of project.
-------------------------------------------
Debt Coverage Ratio                         Net Operating Income divided
                                             by debt service payments.
-------------------------------------------
Percentage of Guarantee                     Percentage guarantee
                                             requested.
-------------------------------------------
Collateral                                  Attach relevant information.
-------------------------------------------
Empowerment Zone(EZ) or Enterprise          Yes or No. Is the project in
 Community(EC), Colonia or Tribal Lands      a recognized EZ or EC,
                                             Colonia or on an Indian
                                             Reservation?
-------------------------------------------
Population                                  Must be within the 20,000
                                             population limit set for
                                             the program.
-------------------------------------------
Is a Guarantee for Construction Being       State yes or no. The Agency
 Requested? Are Advances Being Requested?    will guarantee construction
                                             advances, only as part of a
                                             combination construction
                                             and permanent loan.
-------------------------------------------
Loan Term                                   Up to a 40-year amortized
                                             loan. Balloon mortgages
                                             with a minimum 25-year term
                                             are eligible.
------------------------------------------------------------------------

    Scoring of Priority Criteria for Selection of Projects: All 2005 
NOFA responses will be scored based on the criteria set forth below to 
establish their priority for obligation of funds. Priority criteria 
include population size, median income, loan to development cost ratio, 
highest percentage of 3-5 bedroom units to total units, and location in 
Empowerment Zones/Enterprise Communities or on Tribal Land. Prior to 
June 13, 2005, projects with an overall score of 25 points and a loan 
to development cost ratio less than 70 percent will be processed and, 
when ready, obligated on a first-come-first-serve basis, provided funds 
are available. Projects that score less than 25 points, and projects 
that score 25 points or more and do not have a loan to development cost 
ratio less than 70 percent, may be processed up to the point of 
obligation, but they will not be obligated until after June 13, 2005. 
Each month after June 13, 2005, the Agency will select proposals with a 
threshold score of 25 or higher until all funds are expended. Priority 
for the selection of proposals that meet the threshold score of 25 will 
be given to the highest scoring proposals. A notice will be placed in 
the Federal Register when all funds are committed for FY 2005.
    Scoring of Priority Criteria for Selection of Projects With 
Interest Credit Requests: RHS will allocate points to projects with 
requests for interest credit. Subject to available funding, all 
projects scoring 55 points or more on the six priority criteria below 
and demonstrate a need for the interest credit subsidy will receive 
interest credit awards.
    The six priority criteria for projects with requests for interest 
credit are listed below.
    Priority 1--Projects located in eligible rural communities with the 
lowest populations will receive the highest points.

------------------------------------------------------------------------
                        Population size                          Points
------------------------------------------------------------------------
0-5,000 people................................................        15
5,001-10,000 people...........................................        10
10,001-15,000 people..........................................         5
15,001-20,000 people..........................................         0
------------------------------------------------------------------------

    Priority 2--The most needy communities as determined by the median 
income from the most recent census data will receive points. The RHS 
will allocate points to projects located in communities having the 
lowest median income. Points for median income will be awarded as 
follows:

------------------------------------------------------------------------
                    Median income (dollars)                      Points
------------------------------------------------------------------------
Less than $35,000.............................................        20
$35,000-less than $45,000.....................................        15
$45,000-less than $55,000.....................................        10
$55,000-less than $65,000.....................................         5
$65,000 or more...............................................         0
------------------------------------------------------------------------

    Priority 3--Projects that demonstrate partnering and leveraging in 
order to develop the maximum number of units and promote partnerships 
with state and local communities will also receive points. Points will 
be awarded as follows:

------------------------------------------------------------------------
      Loan to total development cost ratio (percentage %)        Points
------------------------------------------------------------------------
90-100........................................................         0
Less than 90-70...............................................        15
Less than 70-50...............................................        20
Less than 50..................................................        30
------------------------------------------------------------------------

    Priority 4--The development of projects on Tribal Lands, or in an 
Empowerment Zone or Enterprise Community will receive points. The RHS 
will attribute 20 points to projects that are developed in any of the 
locations described in this priority. The development of projects in a 
Colonia or in a place identified in the State's Consolidated Plan or 
State Needs Assessment as a high need community for multi-family 
housing will receive points. The RHS will attribute 20 points to 
projects that are developed in any of the locations described in this 
priority.
    Priority 5--RHS will award points for basis points above the long 
term monthly AFR used to calculate the interest rate. Lenders should 
use the Long Term Monthly AFR in effect at the closing of the lender's 
loan. The score for basis points is as follows:

------------------------------------------------------------------------
                         Basis points                            Points
------------------------------------------------------------------------
More than 250 basis points....................................       -20
200 to 250 basis points, inclusive............................        10
100 to 199 basis points, inclusive............................        15
0 to 99 basis points, inclusive...............................        20
------------------------------------------------------------------------

    Priority 6--The RHS will award points to projects with the highest 
ratio of 3-5 bedroom units to total units as follows:

------------------------------------------------------------------------
           Ratio of 3-5 bedroom units to total units             Points
------------------------------------------------------------------------
More than 50%.................................................         6
21%-50%.......................................................         5
Less than 21%-more than 0%....................................         1
------------------------------------------------------------------------

    Notifications: Responses will be reviewed for completeness and 
eligibility. The RHS will notify those lenders whose responses are 
selected via letter. The RHS will request lenders without GRRHP lender 
approval to apply for GRRHP lender approval within 30 days upon receipt 
of notification of selection. For information regarding GRRHP lender 
approval, please refer to the section entitled ``Submission of 
Documentation for GRRHP Lender Approval'' in this Notice.
    Lenders will also be invited to submit a complete application and 
the required application fee of $2,500 to the Rural Development State 
Office where the project is located.
    Submission of GRRHP Applications: Notification letters will 
instruct lenders

[[Page 12575]]

to contact the Rural Development State Office immediately following 
notification of selection to schedule required agency reviews.
    Rural Development State Office staff will work with lenders in the 
development of an application package. Required documentation for a 
complete application package is stated in section 3 of chapter 4 of HB-
1-3565.
    The deadline for the submission of a complete application and 
application fee is 90 days from the date of notification of response 
selection. If the application and fee are not submitted within 90 days 
from the date of notification, the selection is subject to 
cancellation, thereby allowing another response that is ready to 
proceed with processing to be selected.
    Obligation of Program Funds: The RHS will only obligate funds to 
projects that meet the requirements for obligation, including 
undergoing a satisfactory environmental review in accordance with the 
National Environmental Protection Act (NEPA) and lenders who have 
submitted the $2,500 application fee and completed Form RD 3565-1 for 
the selected project.
    Conditional Commitment: Once required documents for obligation and 
the application fee are received and all NEPA requirements have been 
met, the Rural Development State Office will issue a conditional 
commitment, which stipulates the conditions that must be fulfilled 
before the issuance of a guarantee, in accordance with 7 CFR 3565.303.
    Issuance of Guarantee: The RHS State Office will issue a guarantee 
to the lender for a project in accordance with 7 CFR 3565.303. No 
guarantee can be issued without a complete application, review of 
appropriate certifications, satisfactory assessment of the appropriate 
level of environmental review, and the completion of any conditional 
requirements.

    Dated: March 3, 2005.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. 05-4776 Filed 3-11-05; 8:45 am]
BILLING CODE 3410-XV-C