[Federal Register Volume 70, Number 88 (Monday, May 9, 2005)]
[Notices]
[Pages 24367-24372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9155]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Funding Availability: Section 515 Multi-Family Housing 
Preservation Revolving Loan Fund (PRLF) Demonstration Program

    Announcement Type: Initial Notice of Funding Availability (NOFA) 
inviting applications from qualified applicants.
    Catalog of Federal Domestic Assistance Number (CFDA): 10.415.
SUMMARY: The Rural Housing Service (RHS) announces the availability of 
funds and the timeframe to submit applications for loans to private 
non-profit organizations, or such non-profit organizations' affiliate 
loan funds and State housing finance agencies, to carry out a housing 
demonstration program to provide revolving loans for the preservation 
and revitalization of low-income multi-family housing. Housing that is 
assisted by this demonstration program must be financed by RHS through 
its multi-family housing loan program under Section 515 of the Housing 
Act of 1949. This demonstration program will be achieved through loans 
made to intermediaries that establish programs for the purpose of 
providing loans to ultimate recipients for the preservation and 
revitalization of

[[Page 24368]]

Section 515 multi-family housing as affordable housing.

DATES: The deadline for receipt of all applications in response to this 
NOFA is 5 p.m., Eastern Time, on August 8, 2005. The application 
closing deadline is firm as to date and hour. The Agency 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), COD, and postage due applications will not be accepted.

FOR FURTHER INFORMATION CONTACT: Henry Searcy, Jr., Senior Loan 
Specialist, Multi-Family Housing Processing Division--STOP 0781 (Room 
1263-S), U.S. Department of Agriculture--Rural Housing Service, 1400 
Independence Ave. SW., Washington, DC 20250-0781 or by telephone at 
(202) 720-1753. (This is not a toll free number.)

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    Under the Paperwork Reduction Act, 44 U.S.C. 3501 (2005) 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 NOFA will 
receive less than 10 respondents, the Paperwork Reduction Act does not 
apply.

Overview

    The Agriculture, Rural Development, Food and Drug Administration, 
and Related Agencies Appropriations Act, 2005 (Division A of Pub. L. 
108-447) provided funding for, and authorizes RHS to, establish a 
revolving loan fund demonstration program for the preservation and 
revitalization of the Section 515 multi-family housing portfolio. The 
Section 515 multi-family housing program is authorized by Section 515 
of the Housing Act of 1949 (42 U.S.C. 1485) and provides RHS the 
authority to make loans for low income multi-family housing and related 
facilities.

Program Administration

I. Funding Opportunities Description

    This NOFA requests applications from eligible applicants for loans 
to establish and operate revolving loan funds for the preservation of 
low-income multi-family housing within the Agency's Section 515 multi-
family housing portfolio. The Agency's Section 515 multi-family housing 
program is authorized by Section 515 (42 U.S.C. 1485) of the Housing 
Act of 1949. Agency regulations for the Section 515 multi-family 
housing program are published at 7 CFR part 3560.
    Housing that is constructed or repaired must meet the Agency design 
and construction standards and the development standards contained in 7 
CFR part 1924, subparts A and C, respectively. Once constructed, 
Section 515 multi-family housing must be managed in accordance with the 
program's management regulation, 7 CFR part 3560, subpart C. Tenant 
eligibility is limited to persons who qualify as a very low-, low-, or 
moderate-income household or who are eligible under the requirements 
established to qualify for housing benefits provided by sources other 
than the Agency, such as U.S. Department of Housing and Urban 
Development Section 8 assistance or Low Income Housing Tax Credit 
Assistance, when a tenant receives such housing benefits. Additional 
tenant eligibility requirements are contained in 7 CFR 3560.152.

II. Award Information

    Public Law 108-447 (December 8, 2004) made funding available for 
loans to private non-profit organizations, or such non-profit 
organizations' affiliate loan funds and State housing finance agencies, 
to carry out a housing demonstration program to provide revolving loans 
for the preservation of the Section 515 multi-family housing portfolio. 
The total amount of funding available for this program is $6,364,414. 
Loans to intermediaries under this demonstration program shall have an 
interest rate of no more than one percent and the Secretary of 
Agriculture may defer the interest and principal payment to RHS for up 
to three years. The term of such loans shall not exceed 30 years. 
Funding priority will be given to entities with equal or greater 
matching funds, including housing tax credits for rural housing 
assistance and to entities with experience in the administration of 
revolving loan funds and the preservation of multi-family housing.

III. Eligibility Information

Applicant Eligibility

    (1) Eligibility requirements--Intermediary.
    (a) The types of entities which may become intermediaries are 
private nonprofit organizations or such non-profit organizations' 
affiliate loan funds and State housing finance agencies.
    (b) The intermediary must have:
    (i) The legal authority necessary for carrying out the proposed 
loan purposes and for obtaining, giving security for, and repaying the 
proposed loan.
    (ii) A proven record of successfully assisting low-income multi-
family housing projects. Such record will include recent experience in 
loan making and servicing with loans that are similar in nature to 
those proposed for the PRLF demonstration program and a delinquency and 
loss rate acceptable to the Agency.
    (iii) The services of a staff with loan making and servicing 
expertise acceptable to the Agency.
    (iv) Capitalization acceptable to the Agency.
    (c) No loans will be extended to an intermediary unless:
    (i) There is adequate assurance of repayment of the loan based on 
the fiscal and managerial capabilities of the proposed intermediary.
    (ii) The amount of the loan, together with other funds available, 
is adequate to assure completion of the project or achieve the purposes 
for which the loan is made.
    (iii) At least 51 percent of the outstanding interest or membership 
in any nonpublic body intermediary must be composed of citizens of the 
United States or individuals who reside in the United States after 
being legally admitted for permanent residence.
    (d) Intermediaries, and the principals of the intermediaries, must 
not be suspended, debarred, or excluded based on the ``List of Parties 
Excluded from Federal Procurement and Nonprocurement Programs.'' In 
addition, intermediaries and their principals must not be delinquent on 
Federal debt.
    (2) Eligibility requirements--Ultimate recipients.
    (a) To be eligible to receive loans from the PRLF, ultimate 
recipients must:
    (i) Currently have a RHS Section 515 loan for the property being 
assisted by the PRLF demonstration program, or be a transferee of such 
a loan before receiving any benefits from the PRLF demonstration 
program.
    (ii) Be unable to provide the necessary housing from its own 
resources and, except for State or local public agencies and Indian 
tribes, be unable to obtain the necessary credit from other sources 
upon terms and conditions the applicant could reasonably be expected to 
fulfill.
    (iii) Along with its principal officers (including their immediate 
family), hold no legal or financial interest or

[[Page 24369]]

influence in the intermediary. Also, the intermediary and its principal 
officers (including immediate family) must hold no legal or financial 
interest or influence in the ultimate recipient.
    (iv) Be in compliance with all Agency program requirements or have 
an Agency approved workout plan in place which will correct a non-
compliance status.
    (b) Any delinquent debt to the Federal Government, by the ultimate 
recipient or any of its principals, shall cause the proposed ultimate 
recipient to be ineligible to receive a loan from the PRLF. PRLF loan 
funds may not be used to satisfy the delinquency.
    Cost Sharing or Matching. Funding priority will be given to 
entities with equal or greater matching funds, including housing tax 
credits for rural housing assistance. Refer to the Selection Criteria 
section of the NOFA for further information on funding priorities.

Equal Opportunity and Nondiscrimination Requirements

    (1) In accordance with the Fair Housing Act, title VI of the Civil 
Rights Act of 1964, the Equal Credit Opportunity Act, the Age 
Discrimination Act of 1975, Executive Order 12898, the Americans with 
Disabilities Act, and Section 504 of the Rehabilitation Act of 1973, 
neither the intermediary nor the Agency will discriminate against any 
employee, proposed intermediary or proposed ultimate recipient on the 
basis of sex, marital status, race, color, religion, national origin, 
age, physical or mental disability (provided the proposed intermediary 
or proposed ultimate recipient has the capacity to contract), because 
all or part of the proposed intermediary's or proposed ultimate 
recipient's income is derived from public assistance of any kind, or 
because the proposed intermediary or proposed ultimate recipient has in 
good faith exercised any right under the Consumer Credit Protection 
Act, with respect to any aspect of a credit transaction anytime Agency 
loan funds are involved.
    (2) The policies and regulations contained in 7 CFR part 1901, 
subpart E apply to this program.
    (3) The Rural Housing Service Administrator will assure that equal 
opportunity and nondiscrimination requirements are met in accordance 
with the Fair Housing Act, title VI of the Civil Rights Act of 1964, 
the Equal Credit Opportunity Act, the Age Discrimination Act of 1975, 
Executive Order 12898, the Americans with Disabilities Act, and Section 
504 of the Rehabilitation Act of 1973.
    (4) All housing must meet the accessibility requirements found at 7 
CFR 3560.60(d).
    (5) In accordance with RD Instruction 2006-P and Departmental 
Regulation 5600-2, the Agency should conduct a Civil Rights Impact 
Analysis for each loan made to an intermediary and the Agency should 
document their analyses through the completion of Form RECD 2006-38, 
``Civil Rights Impact Analysis Certification.''

Other Administrative Requirements

    (1) The following policies and regulations apply to loans to 
intermediaries made in response to this NOFA:
    (a) PRLF intermediaries will be required to provide the Agency with 
the following reports:
    (i) An annual audit;
    (A) Dates of audit report period need not necessarily coincide with 
other reports on the PRLF. Audit reports shall be due 90 days following 
the audit period. Audits must cover all of the intermediary's 
activities. Audits will be performed by an independent certified public 
accountant. An acceptable audit will be performed in accordance with 
Generally Accepted Government Auditing Standards and include such tests 
of the accounting records as the auditor considers necessary in order 
to express an opinion on the financial condition of the intermediary. 
The Agency does not require an unqualified audit opinion as a result of 
the audit. Compilations or reviews do not satisfy the audit 
requirement.
    (B) It is not intended that audits required by this program be 
separate and apart from audits performed in accordance with State and 
local laws or for other purposes. To the extent feasible, the audit 
work for this program should be done in connection with these other 
audits. Intermediaries covered by OMB Circular A-128 or A-133 should 
submit audits made in accordance with those circulars.
    (ii) Quarterly or semiannual reports (due 30 days after the end of 
the period);
    (A) Reports will be required quarterly during the first year after 
loan closing. Thereafter, reports will be required semiannually. Also, 
the Agency may resume requiring quarterly reports if the intermediary 
becomes delinquent in repayment of its loan or otherwise fails to fully 
comply with the provisions of its work plan or Loan Agreement, or the 
Agency determines that the intermediary's PRLF is not adequately 
protected by the current financial status and paying capacity of the 
ultimate recipients.
    (B) These reports shall contain information only on the PRLF, or if 
other funds are included, the PRLF portion shall be segregated from the 
others; and in the case where the intermediary has more than one PRLF 
from the Agency, a separate report shall be made for each PRLF.
    (C) The reports will include, on a form to be provided by the 
Agency, information on the intermediary's lending activity, income and 
expenses, financial condition and a summary of names and 
characteristics of the ultimate recipients the intermediary has 
financed.
    (iii) Annual proposed budget for the following year; and
    (iv) Other reports as the Agency may require from time to time.
    (b) RHS may consider, on a case by case basis, subordinating its 
security interest on the property to the lien of the intermediary so 
that RHS has a junior lien interest when an independent appraisal 
documents the RHS subordinated lien will continue to be fully secured.
    (c) The term of the loan to the ultimate recipient may not exceed 
the remaining term of the RHS loan.
    (d) When loans are made to the ultimate recipients for equity 
purposes, Restrictive Use Provisions must be incorporated into the loan 
documents, as outlined in 7 CFR part 3560.662.
    (e) The policies and regulations contained in 7 CFR part 1901, 
subpart F regarding historical and archaeological properties.
    (f) The policies and regulations contained in 7 CFR part 1940, 
subpart G regarding environmental assessments. Loans to intermediaries 
under this program will be considered a Categorical Exclusion under the 
National Environmental Policy Act, requiring the completion of Form RD 
1940-22, ``Environmental Checklist for Categorical Exclusions,'' by the 
Agency.
    (g) An ``Intergovernmental Review,'' if required by RD Instruction 
1940-J, will be conducted in accordance with the procedures contained 
in that Instruction.
    (2) The intermediary agrees to the following:
    (a) To obtain the written Agency approval, before the first lending 
of PRLF funds to an ultimate recipient, of:
    (i) All forms to be used for relending purposes, including 
application forms, loan agreements, promissory notes, and security 
instruments; and
    (ii) Intermediary's policy with regard to the amount and form of 
security to be required.

[[Page 24370]]

    (b) To obtain written approval from the Agency before making any 
significant changes in forms, security policy, or the work plan. The 
Agency may approve changes in forms, security policy, or work plans at 
any time upon a written request from the intermediary and determination 
by the Agency that the change will not jeopardize repayment of the loan 
or violate any requirement of this NOFA or other Agency regulations. 
The intermediary must comply with the work plan approved by the Agency 
so long as any portion of the intermediary's PRLF loan is outstanding;
    (c) To secure the indebtedness by pledging the PRLF, including its 
portfolio of investments derived from the proceeds of the loan award, 
and other rights and interests as the Agency may require;
    (d) To return, as an extra payment on the loan any funds that have 
not been used in accordance with the intermediary's work plan by a date 
2 years from the date of the loan agreement. The intermediary 
acknowledges that the Agency may cancel the approval of any funds not 
yet delivered to the intermediary if funds have not been used in 
accordance with the intermediary's work plan within the 2 year period. 
The Agency, at its sole discretion, may allow the intermediary 
additional time to use the loan funds by delaying cancellation of the 
funds by not more than 3 additional years. If any loan funds have not 
been used by 5 years from the date of the loan agreement, the approval 
will be canceled for any funds that have not been delivered to the 
intermediary and the intermediary will return, as an extra payment on 
the loan, any funds it has received and not used in accordance with the 
work plan. In accordance with the Agency approved promissory note, 
regular loan payments will be based on the amount of funds actually 
drawn by the intermediary.
    (3) The intermediary will be required to enter into an Agency 
approved loan agreement and promissory note.
    (4) Loans made to the PRLF ultimate recipient must meet the intent 
of providing decent, safe, and sanitary rural housing and be consistent 
with the requirements of title V of the Housing Act of 1949.
    (5) When an intermediary proposes to make a loan from the PRLF to 
an ultimate recipient, Agency concurrence is required prior to final 
approval of the loan. A request for Agency concurrence in approval of a 
proposed loan to an ultimate recipient must include:
    (a) Certification by the intermediary that:
    (i) The proposed ultimate recipient is eligible for the loan;
    (ii) The proposed loan is for eligible purposes;
    (iii) The proposed loan complies with all applicable statutes and 
regulations; and
    (iv) Prior to closing the loan to the ultimate recipient, the 
intermediary and its principal officers (including immediate family) 
hold no legal or financial interest or influence in the ultimate 
recipient, and the ultimate recipient and its principal officers 
(including immediate family) hold no legal or financial interest or 
influence in the intermediary.
    (b) Copies of sufficient material from the ultimate recipient's 
application and the intermediary's related files, to allow the Agency 
to determine the:
    (i) Name and address of the ultimate recipient;
    (ii) Loan purposes;
    (iii) Interest rate and term;
    (iv) Location, nature, and scope of the project being financed;
    (v) Other funding included in the project; and
    (vi) Nature and lien priority of the collateral.
    (vii) Environmental impacts of this action. This will include an 
original Form RD 1940-20, ``Request for Environmental Information,'' 
completed and signed by the intermediary. Attached to this form will be 
a statement stipulating the age of the building to be rehabilitated and 
a completed and signed FEMA Form 81-93, ``Standard Flood Hazard 
Determination.'' If the age of the building is over 50 years old or if 
the building is either on or eligible for inclusion in the National 
Register of Historic Places, then the intermediary will immediately 
contact the Agency to begin Section 106 consultation with the State 
Historic Preservation Officer. If the building is located within a 100-
year flood plain, then the intermediary will immediately contact the 
Agency to analyze any effects as outlined in 7 CFR part 1940, subpart 
G, Exhibit C. The intermediary will assist the Agency in any additional 
requirements necessary to complete the environmental review.
    (c) Such other information as the Agency may request on specific 
cases.
    (6) Upon receipt of a request for concurrence in a loan to an 
ultimate recipient the Agency will:
    (a) Review the material submitted by the intermediary for 
consistency with the Agency's preservation and revitalization 
principals which include the following;
    (i) There is a continuing need for the property in the community as 
affordable housing.
    (ii) When the transaction is complete, the property will be owned 
and controlled by eligible section 515 borrowers.
    (iii) The transaction will address the physical needs of the 
property.
    (iv) Existing tenants will not be displaced because of increased 
post transaction rents.
    (v) Post transaction basic rents will not exceed comparable market 
rents.
    (vi) Any equity loan amount will be supported by a market value 
appraisal.
    (vii) The RHS Office of Rental Housing Preservation concurs with 
any equity payments or increased return to owner and coordinates the 
approval of exceptions, National Office approvals, or revitalization 
related policy issues.
    (viii) Complete an environmental review in accordance with 7 CFR 
part 1940, subpart G, beginning with a Categorical Exclusion 
classification as shown in 7 CFR 1940.310(b)(3). The information 
received from the intermediary (RD Form 1940-20, the age of the 
building, FEMA Form 81-93, and the description of the project) will be 
attached to the environmental review forms.
    (b) Issue a letter concurring in the loan when all requirements 
have been met or notify the intermediary in writing of the reasons for 
denial when the Agency determines it is unable to concur in the loan.

IV. Application and Submission Information

    The application process will be in two phases: the initial 
preapplication (or proposal) and the submission of a formal 
application. Only those proposals that are selected for further 
processing will be invited to submit formal applications. In the event 
that a proposal is selected for further processing and the applicant 
declines, the next highest ranked unfunded preapplication may be 
selected. If a preapplication is accepted for further processing, the 
applicant will be expected to submit the additional information prior 
to the obligation of loan funds. At the time of final approval, the 
Agency and loan recipient shall enter into a loan agreement.

Preapplication Requirements

    The preapplication must contain the following:
    (1) A summary page, that is double-spaced and not in narrative 
form, that lists the following items.
    (a) Applicant's name.
    (b) Applicant's Taxpayer Identification Number.

[[Page 24371]]

    (c) Applicant's address.
    (d) Applicant's telephone number.
    (e) Name of applicant's contact person, telephone number, and 
address.
    (f) Amount of loan requested.
    (2) Form RD 4274-1, ``Application for Loan (Intermediary Relending 
Program).''
    (3) A written work plan and other evidence the Agency requires to 
demonstrate the feasibility of the intermediary's program to meet the 
objectives of this demonstration program. The plan must, at a minimum:
    (a) Document the intermediary's ability to administer this 
demonstration program in accordance with the provisions of this NOFA. 
In order to adequately demonstrate the ability to administer the 
program, the intermediary must provide a complete listing of all 
personnel responsible for administering this program along with a 
statement of their qualifications and experience. The personnel may be 
either members or employees of the intermediary's organization or 
contract personnel hired for this purpose. If the personnel are to be 
contracted for, the contract between the intermediary and the entity 
providing such service will be submitted for Agency review, and the 
terms of the contract and its duration must be sufficient to adequately 
service the Agency loan through to its ultimate conclusion. If the 
Agency determines the personnel lack the necessary expertise to 
administer the program, the loan request will not be approved;
    (b) Document the intermediary's ability to commit financial 
resources under the control of the intermediary to the establishment of 
the demonstration program. This should include a statement of the 
sources of non-Agency funds for administration of the intermediary's 
operations and financial assistance for projects;
    (c) Demonstrate a need for loan funds. As a minimum, the 
intermediary should identify a sufficient number of proposed and known 
ultimate recipients to justify Agency funding of its loan request, or 
include well developed targeting criteria for ultimate recipients 
consistent with the intermediary's mission and strategy for this 
demonstration program, along with supporting statistical or narrative 
evidence that such prospective recipients exist in sufficient numbers 
to justify Agency funding of the loan request;
    (d) Include a list of proposed fees and other charges it will 
assess the ultimate recipients;
    (e) Demonstrate to Agency satisfaction that the intermediary has 
secured commitments of significant financial support from public 
agencies and private organizations;
    (f) Include the intermediary's plan (specific loan purposes) for 
relending the loan funds. The plan must be of sufficient detail to 
provide the Agency with a complete understanding of what the 
intermediary will accomplish by lending the funds to the ultimate 
recipient and the complete mechanics of how the funds will get from the 
intermediary to the ultimate recipient. The service area, eligibility 
criteria, loan purposes, fees, rates, terms, collateral requirements, 
limits, priorities, application process, method of disposition of the 
funds to the ultimate recipient, monitoring of the ultimate recipient's 
accomplishments, and reporting requirements by the ultimate recipient's 
management are some of the items that must be addressed by the 
intermediary's relending plan;
    (g) Provide a set of goals, strategies, and anticipated outcomes 
for the intermediary's program. Outcomes should be expressed in 
quantitative or observable terms such as low-income housing complexes 
rehabilitated or low-income housing units preserved, and should relate 
to the purpose of this demonstration program; and
    (h) Provide specific information as to whether and how the 
intermediary will ensure that technical assistance is made available to 
ultimate recipients and potential ultimate recipients. Describe the 
qualifications of the technical assistance providers, the nature of 
technical assistance that will be available, and expected and committed 
sources of funding for technical assistance. If other than the 
intermediary itself, describe the organizations providing such 
assistance and the arrangements between such organizations and the 
intermediary.
    (4) A pro forma balance sheet at start-up and projected balance 
sheets for at least 3 additional years; financial statements for the 
last 3 years, or from inception of the operations of the intermediary 
if less than 3 years; and projected cash flow and earnings statements 
for at least 3 years supported by a list of assumptions showing the 
basis for the projections. The projected earnings statement and balance 
sheet must include one set of projections that shows the PRLF must 
extend to include a year with a full annual installment on the PRLF 
loan.
    (5) A written agreement of the intermediary to the Agency audit 
requirements.
    (6) Form RD 400-4, ``Assurance Agreement.''
    (7) Complete organizational documents, including evidence of 
authority to conduct the proposed activities.
    (8) Latest audit report, if available.
    (9) Form RD 1910-11, ``Applicant Certification Federal Collection 
Policies for Consumer or Commercial Debts.''
    (10) Form AD-1047, ``Certification Regarding Debarment, Suspension, 
and other Responsibility Matters--Primary Covered Transactions.''
    (11) Exhibit A-1 of RD Instruction 1940-Q, ``Certification for 
Contracts, Grants, and Loans.''
    (12) A separate one-page information sheet listing each of the 
``Application Scoring Criteria'' contained in this Notice, followed by 
the page numbers of all relevant material and documentation that is 
contained in the proposal that supports these criteria. Applicants are 
also encouraged, but not required, to include a checklist of all of the 
application requirements and to have their application indexed and 
tabbed to facilitate the review process.

Funding Restrictions

    Loans made to the PRLF intermediary under this demonstration 
program may not exceed $2,125,000 and may be limited by geographic area 
so that multiple loan recipients are not providing similar services to 
the same service areas.
    Loans made to the PRLF ultimate recipient must meet the intent of 
providing decent, safe, and sanitary rural housing and be consistent 
with the requirements of title V of the Housing Act of 1949.
    Submission address. Preapplications should be submitted to USDA--
Rural Housing Service; Attention: Henry Searcy, Jr., Multi-Family 
Housing Processing Division `` STOP 0781 (Room 1263-S), 1400 
Independence Ave. SW., Washington, DC 20250-0781.

V. Application Review Information

    All applications will be evaluated by a loan committee. The loan 
committee will make recommendations to the Agency Administrator 
concerning preliminary eligibility determinations and for the selection 
of applications for further processing based on the selection criteria 
contained in this NOFA and the availability of funds. The Administrator 
will inform applicants of the status of their application within 30 
days of the loan application closing date of the NOFA.

Selection Criteria

    Selection criteria points will be allowed only for factors 
indicated by well documented, reasonable plans which, in the opinion of 
the Agency, provide assurance that the items have a

[[Page 24372]]

high probability of being accomplished. The points awarded will be as 
specified in paragraphs (1) through (4) of this section. In each case, 
the intermediary's work plan must provide documentation that the 
selection criteria have been met in order to qualify for selection 
criteria points. If an application does not fit one of the categories 
listed, it receives no points for that paragraph.
    (1) Other funds. Points allowed under this paragraph are to be 
based on documented successful history or written evidence that the 
funds are available.
    (a) The intermediary will obtain non-Agency loan or grant funds or 
provide housing tax credits (measured in dollars) to pay part of the 
cost of the ultimate recipients' project cost. Points for the amount of 
funds from other sources are as follows:
    (i) At least 10% but less than 25% of the total project cost--5 
points;
    (ii) At least 25% but less than 50% of the total project cost--10 
points; or
    (iii) 50% or more of the total project cost--15 points.
    (b) The intermediary will provide loans to the ultimate recipient 
from its own funds (not loan or grant) to pay part of the ultimate 
recipients' project cost. The amount of the intermediary's own funds 
will average:
    (i) At least 10% but less than 25% of the total project costs--5 
points;
    (ii) At least 25% but less than 50% of total project costs--10 
points; or
    (iii) 50% or more of total project costs--15 points.
    (2) Intermediary contribution. All assets of the PRLF will serve as 
security for the PRLF loan, and the intermediary will contribute funds 
not derived from the Agency into the PRLF along with the proceeds of 
the PRLF loan. The amount of non-Agency derived funds contributed to 
the PRLF will equal the following percentage of the Agency PRLF loan:
    (a) At least 5% but less than 15%--15 points;
    (b) At least 15% but less than 25%--30 points; or
    (c) 25% or more--50 points.
    (3) Experience. The intermediary has actual experience in the 
administration of revolving loan funds and the preservation of multi-
family housing, with a successful record, for the following number of 
full years. Applicants must have actual experience in both the 
administration of revolving loan funds and the preservation of multi-
family housing in order to qualify for points under this selection 
criteria. If the number of years of experience differs between the two 
types of experience, the type with the least number of years will be 
used for this selection criteria.
    (a) At least 1 but less than 3 years--5 points;
    (b) At least 3 but less than 5 years--10 points;
    (c) At least 5 but less than 10 years--20 points; or
    (d) 10 or more years--30 points.
    (4) Administrative. The Administrator may assign up to 35 
additional points to an application to account for the following items 
not adequately covered by the other priority criteria set out in this 
section. The items that may be considered are the amount of funds 
requested in relation to the amount of need; a particularly successful 
affordable housing development record; a service area with no other 
PRLF coverage; a service area with severe affordable housing problems; 
a service area with emergency conditions caused by a natural disaster; 
an innovative proposal; the quality of the proposed program; a work 
plan that is in accord with a strategic plan, particularly a plan 
prepared as part of a request for an Empowerment Zone/Enterprise 
Community designation; or excellent utilization of an existing 
revolving loan fund program.

    Dated: May 2, 2005.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. 05-9155 Filed 5-6-05; 8:45 am]
BILLING CODE 3410-XV-P