[Federal Register Volume 71, Number 48 (Monday, March 13, 2006)]
[Notices]
[Pages 12671-12674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-3546]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service


Notice of Availability of Hurricane Disaster Assistance

AGENCIES: Rural Housing Service, Rural Business-Cooperative Service and 
Rural Utilities Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Housing Service, Rural Business-Cooperative Service, 
and Rural Utilities programs are administered through USDA Rural 
Development. This Notice is intended to announce the availability of 
hurricane disaster assistance provided pursuant to chapter 1 of title I 
of Division B of the Department of Defense, Emergency Supplemental 
Appropriations to Address Hurricanes in the Gulf of Mexico and Pandemic 
Influenza Act, 2006 with respect to programs and activities of the 
Rural Development Mission Area of USDA.

DATES: Effective Date: March 13, 2006.

FOR FURTHER INFORMATION CONTACT: Information for the various USDA Rural 
Development programs as set forth in Section I., may be obtained by 
contacting your USDA Rural Development State Office as outlined in 
Section I. D.
    Background: The Rural Development Mission Area agencies (Rural 
Housing Service, Rural Utilities Service, and Rural Business-
Cooperative Service of the United States Department of Agriculture) 
provide a wide variety of grant, loan, and loan guarantee assistance to 
rural residents, rural communities, and rural utility systems. The 
eligibility criteria for each of the programs differ widely.
    Chapter 1 of title I of Division B of the Department of Defense, 
Emergency Supplemental Appropriations to Address Hurricanes in the Gulf 
of Mexico and Pandemic Influenza Act, 2006 (Pub. L. 109-148) (Act) 
provides USDA Rural Development with additional authorities to waive 
certain program requirements and resources to address the damage caused 
by the Gulf Coast hurricanes and, in some instances, provides 
additional latitude in program administration for a six-month period 
beginning on the date of enactment.
    Based upon the extensiveness and the magnitude of the damages to 
housing; community facilities such as schools, hospitals, first 
responder services; businesses; water and waste disposal services and 
other utilities, USDA Rural Development has determined that even with 
additional resources provided in the Act, it does not have the 
resources to fully implement all of the authorities provided within the 
Act within the six-month time frame provided. As a result,

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in implementing the authorities provided in the Act, USDA Rural 
Development has determined that it is most efficient and effective to 
provide assistance to the areas and activities that are currently 
served by its programs. To the extent that USDA Rural Development has 
determined that there are resources available to expand areas and 
activities served by June 30, 2006, by implementing the waiver 
authorities of the Act, it has implemented such waiver authority.
    The matching funds requirement for the community facilities program 
will be waived; however, the median family income requirements will 
remain the same as provided in current regulations. Further, the six-
month limitation imposed by the Act precludes implementation of the 
waivers associated with the Value-Added Producer Grant Program, the 
Rural Cooperative Development Grant Program and the Renewable Energy 
Systems/Energy Efficiency Improvements Program due to the time required 
to prepare, review, and process applications on a competitive basis. 
Therefore, these provisions of the Act will not be implemented. Should 
the authority to waive certain requirements be extended, USDA Rural 
Development will review, on a program-by-program basis, its ability to 
implement each of the waiver provisions.
    For programs for which USDA Rural Development has decided not to 
implement specific provisions of the Act, applicants located in both 
designated disaster areas and non-designated disaster areas may apply 
for funding under the already published statutory and regulatory 
provisions.

I. General Provisions

A. Rural Area

    Section 105 of chapter 1 of title I of Division B of the Act 
(section 105) provides that the Secretary may ``waive the application 
of the rural area or similar limitations under any program funded 
through an appropriations act and administered by the Rural Development 
Mission Area.'' Based upon the limitations of resources and time, USDA 
Rural Development has selectively implemented this waiver authority 
and, therefore, has decided not to implement a general waiver for all 
of its programs. In the case of the housing programs, USDA Rural 
Development, with authority provided in section 541 of the Housing Act 
of 1949 (42 U.S.C. 1490q), has increased the population limitation for 
rural areas to 50,000 and for a limited number of communities to 
75,000. With the additional funding provided for the water and waste 
disposal grant program, USDA Rural Development will consider waivers of 
the rural area definition on a project-by-project basis. Should 
additional funding become available in the future, USDA Rural 
Development will review, on a program-by-program basis, its ability to 
further implement the rural area definition waiver.

B. Designated Disaster Area

    For the purposes of this Notice, the designated disaster area shall 
be those Presidentially-declared areas in the states of Alabama, 
Florida, Louisiana, Mississippi, and Texas in accordance with the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 
U.S.C. 5121 et seq.

C. Limitation of Grant Amounts

    The Act enables the Secretary of Agriculture to make grants under 
the Renewable Energy Systems and Energy Efficiency Improvements 
Program, Value-Added Producer Grants Program, Rural Cooperative 
Development Grant Program, and the Community Facilities Grant Program 
without regard to any grant amount limitation. The Act did not, 
however, provide additional funding for these programs. Therefore, USDA 
Rural Development has determined that it is most efficient and 
effective to provide assistance through these programs without waiving 
the statutory or regulatory grant limitations. Should additional 
funding become available in the future, USDA Rural Development will 
review, on a program-by-program basis, its ability to increase the 
grant amount limitations.

D. Contacts for Additional Information

    For questions about USDA Rural Development's programs and for 
application assistance, please contact your USDA Rural Development 
State Office. The contact information for your State Office can be 
found at: http://www.rurdev.usda.gov. You can also reach your State 
Office by calling (202) 720-4323 and pressing ``1''.

E. Programs Referenced in This Notice Are Subject to Applicable Civil 
Rights Laws

    These laws include the Equal Credit Opportunity Act, Title VI of 
the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 
1968, as amended in 1988, Section 504 of the Rehabilitation Act of 1973 
and the Age Discrimination Act of 1975.''

II. Assistance Available Through This Notice

A. Agricultural Producers

1. Description of Assistance
    i. Renewable Energy--Section 105 enables USDA Rural Development to 
make Renewable Energy Systems/Energy Efficiency Improvements loans, 
grants and guaranteed loans in designated disaster areas with (a) a 
cost share requirement not to exceed 50 percent, (b) no limitation of 
the grant amount, and (c) the inclusion of businesses processing 
unsegregated solid waste and paper. However, because the authority is 
restricted to a six-month period following the enactment of the law and 
because the Notice of Funding Availability (NOFA) for this year's grant 
funding cycle has already been announced in the Federal Register on 
February 13, 2006 (71 FR 7509), the above cited provisions are not 
being implemented at this time. Should the authority to implement the 
above cited provisions be extended, USDA Rural Development will 
consider issuing a separate NOFA to address the provisions.
    ii. Value-Added--Section 105 enables USDA Rural Development to make 
Value-Added Producer Grants in designated disaster areas without a 
matching fund requirement. However, because the authority is restricted 
to a six-month period following the enactment of the law and because 
USDA Rural Development does not anticipate announcing grant awards 
until August 31, 2006, the matching funds requirement is not being 
waived at this time. Should the authority to waive the matching funds 
requirement be extended, USDA Rural Development will contemplate 
reducing the matching funds requirement for successful applicants 
located in the designated disaster areas, as long as the proposed 
projects would still be viable with the reduced matching funds 
requirement.
2. Eligibility Criteria
    i. Renewable Energy--Farmers, ranchers and rural small businesses 
located in rural areas are eligible to apply.
    ii. Value-Added--Independent producers, agriculture producer 
groups, farmer- and rancher-cooperatives, and majority-controlled 
producer-based business ventures located in rural areas are eligible to 
apply.
3. Statutory or Regulatory Authority
    i. Renewable Energy:
     7 U.S.C. 8106; and

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     7 CFR Part 4280, Subpart B, Renewable Energy Systems and 
Energy Efficiency Improvements Program.
    ii. Value-Added:
     7 U.S.C. 1621 note;
     7 CFR Part 4284, Subpart A, General Requirements for 
Cooperative Services Grant Programs; and
     7 CFR Part 4284, Subpart J, Value-Added Producer Grants.

B. Community Programs

1. Description of Assistance
    i. Community Facilities--Section 105 enables USDA Rural Development 
to make Community Facilities Grants in designated disaster areas 
without regard to graduated funding or matching fund requirements.
    ii. Water and Waste Disposal--The Act provides an additional $45 
million in grant funds to respond to damage caused by hurricanes by 
rebuilding, repairing, or otherwise improving water and waste disposal 
systems in designated disaster areas.
2. Eligibility Criteria
    i. Community Facilities--Public entities such as municipalities, 
counties, and special-purpose districts, as well as non-profit 
corporations and tribal governments in designated disaster areas are 
eligible to apply.
    ii. Water and Waste Disposal--Municipalities, counties, special 
purpose districts, Native American Tribes and non-profit corporations 
in designated disaster areas are eligible to apply. As stated in the 
preamble, these funds are available to systems serving populations of 
10,000 or less. However, under the authority of the waiver of rural 
area definitions, the program officials will consider waivers of the 
population requirement on a project-by-project basis.
3. Applicable Statutory or Regulatory Authority
    i. Community Facilities:
     Consolidated Farm and Rural Development Act, Section 306 
(7 U.S.C. 1926(a)(1) and (19)); and
     7 CFR, Part 3570, Subpart B, Community Facilities Grant 
Program.
    ii. Water and Waste Disposal:
     7 CFR Part 1780, Water and Waste Loans and Grants; and
     7 CFR Part 1778, Emergency and Imminent Community Water 
Assistance Grants.
     7 U.S.C. 1926a.

C. Housing

1. Description of Assistance
    The Act provides the following monetary resources for USDA Rural 
Development's housing programs to respond to hurricane damage in 
designated disaster areas:
     $1,293,103,000 in deliverable Section 502 guaranteed 
homeownership funds;
     $175,593,000 in deliverable Section 502 direct 
homeownership funds;
     $34,188,000 in deliverable Section 504 direct repair/
rehabilitation loans; and
     $20,000,000 in deliverable Section 504 direct repair/
rehabilitation grants.
    In addition, the Act provided the following assistance in 
designated disaster areas:
     Section 105 provided Rural Development the authority, for 
a six-month period, to provide Section 502 guaranteed homeownership 
funds to refinance any loan made to a single-family Resident who 
resided in an affected county at the time of the disaster and that was 
used to acquire or construct the single-family residence if the 
residence will be used as the borrower's principal residence and is 
located in an eligible rural area. Funds may also be used for essential 
repairs or rehabilitation. Based upon the limited time frame for 
enactment, Rural Development will be unable to implement these 
provisions during the permitted six-month time period authorized. 
Should the authority to implement the above cited provisions be 
extended, Rural Development will consider issuing a separate NOFA to 
address the provisions.
     Under the Rural Housing Assistance Grants account, the 
aforementioned funds for Section 504 direct repair/rehabilitation 
grants were appropriated without age restrictions. Funds for Section 
504 grants are generally provided only to persons 62 years of age and 
older. USDA Rural Development intends to provide the $20 million in 
Section 504 grant funds provided under the Act to applicants regardless 
of age (provided the applicant has the legal authority to enter into 
such a transaction). There were no time restrictions on the use of 
these funds under the Act.
     The Act provides that housing vouchers may be made 
available to families and individuals whose residence became 
uninhabitable or inaccessible as a result of the hurricanes. USDA Rural 
Development is currently working with the United States Department of 
Housing and Urban Development (HUD) on a ``USDA Voucher Program'' that 
will serve these residents and tenants. If USDA Rural Development 
intends to implement this provision of the Act, a separate 
Implementation Notice will be published in the Federal Register.
2. Eligibility Criteria
    i. Section 502 programs--Applicants that have an income below 80% 
of the area median income for a direct homeownership loan or below 115% 
of the area median income for a guaranteed homeownership loan for a 
home in designated disaster areas are eligible to apply. Applicants 
must have credit history that indicates reasonable ability and 
willingness to meet debt obligations.
    ii. Section 504 programs--Existing homeowners in designated 
disaster areas that have an income that does not exceed 50% of the area 
median income are eligible to apply. Loans up to $20,000 are provided 
at a 1% interest rate. Grants are limited to $7,500 and only to those 
who cannot afford a 1% loan. Loan applicants must have a credit history 
that indicates reasonable ability and willingness to meet debt 
obligations.
    iii. Expanded Rural Area Definition: USDA Rural Development's 
housing programs are governed by the Housing Act of 1949, as amended 
(42 U.S.C. 1471, et seq.). Section 541 of the Housing Act (42 U.S.C. 
1490q), which only applies to USDA Rural Development's housing 
programs, provided the authority to waive population limits subsequent 
to a natural disaster. Further, the statute allowed the population 
limits to be waived for a period of three (3) years from the date of 
declaration. Based upon this statutory authority, USDA Rural 
Development immediately increased the population limits for its housing 
program to 50,000 in any county or parish declared for individual 
assistance as a result of Hurricanes Katrina and Rita. In addition, 
USDA Rural Development included the cities of Biloxi and Gulfport, 
Mississippi; Kenner, Louisiana; and the Quad cities, Hartselle and 
Decatur, Alabama, all of which had populations under 75,000 to be 
considered ``rural'' for housing assistance.
3. Statutory and Regulatory Authority
    i. Section 502 guaranteed homeownership funds:
     42 U.S.C. 1472(h); and
     7 CFR Part 1980, Subpart D, Rural Housing Loans.
    ii. Section 502 direct homeownership funds:
     42 U.S.C. 1472; and
     7 CFR Part 3550, Direct Single Family Housing Loans and 
Grants.
    iii. Section 504 direct repair/rehabilitation loans and grants:

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     42 U.S.C. 1474; and
     7 CFR Part 3550, Direct Single Family Housing Loans and 
Grants.
    iv. Vouchers:
     42 U.S.C. 1490(a) and 42 U.S.C. 1490(r); and
     7 CFR Part 3560, Direct Multi-Family Housing Loans and 
Grants.

D. Non-Profit Institutions

1. Description of the Assistance
    Section 105 enables USDA Rural Development to make Rural 
Cooperative Development Grants in designated disaster areas without a 
matching fund requirement. However, because the authority is restricted 
to a six-month period following the enactment of the law and because 
USDA Rural Development does not anticipate announcing grant awards 
until September 2006, the matching funds requirement is not being 
waived at this time. Should the authority to waive the matching funds 
requirement be extended, USDA Rural Development will contemplate 
reducing the matching funds requirement for successful applicants 
located in the designated disaster areas, as long as the proposed 
projects would still be viable with the reduced matching funds 
requirement.
2. Eligibility Criteria
    Non-profit corporations and institutions of higher learning 
proposing cooperative development projects in rural areas are eligible 
to apply.
3. Statutory or Regulatory Authority
     7 U.S.C. 1932(e);
     7 CFR Part 4284, Subpart A, General Requirements for 
Cooperative Services Grant Programs; and
     7 CFR Part 4284, Subpart F, Rural Cooperative Development 
Grants.

E. Electric and Telecommunications

1. Description of Assistance
    i. Electric--The Act provides $8 million in funding to respond to 
damage caused by hurricanes by covering the cost of loan modifications 
such as deferring principal and interest payments on existing loans 
issued to rural electric cooperatives serving designated disaster 
areas.
    ii. Telecommunications--The Act provides $50,000,000 in loan 
guarantees to be issued to the Federal Financing Bank to respond to 
damage of telecommunications service in designated disaster areas.
2. Eligibility Criteria
    i. Electric--Existing borrowers located in designated disaster 
areas who are experiencing difficulty in meeting debt service 
obligations are eligible to apply.
    ii. Telecommunications--Organizations providing or proposing to 
provide telephone service in designated disaster areas including 
cooperative, nonprofit, limited dividend, mutual, and commercial 
companies are eligible to apply.
3. Applicable Statutory or Regulatory Authority
    i. Electric:
     Rural Electrification Act of 1936 (7 U.S.C. 1926 et seq.); 
and
     7 CFR 1721, Subpart B, Extensions of Payments of Principal 
and Interest.
    ii. Telecommunications:
     Rural Electrification Act of 1936 (7 U.S.C. 1926 et seq.);
     7 CFR Part 1735, General Policies, Types of Loans, Loan 
Requirements--Telecommunications Program; and
     7 CFR Part 1737, Pre-Loan Policies and Procedures Common 
to Insured and Guaranteed Telecommunications Loans.

III. Emergency Declaration

    Consistent with Proclamation 7925 issued by President Bush, the 
USDA Rural Development Mission Area has determined that it would be 
impracticable, unnecessary, and contrary to public interest to delay 
the effective date of this Notice for any reason. The USDA Rural 
Development Agencies need to act promptly on hurricane related needs in 
the designated disaster areas. Delay is contrary to the public interest 
because the regulations of USDA Rural Development agencies prescribe 
policies and procedures for obtaining loans, grants, guarantees for 
rebuilding critical community facilities, buildings, housing and 
infrastructure such electricity, telecommunications and water and waste 
disposal systems.

IV. Non-Discrimination Statement

    The U. S. Department of Agriculture (USDA) prohibits discrimination 
in all its programs and activities on the basis of race, color, 
national origin, age, disability, and where applicable, sex, marital 
status, familial status, parental status, religion, sexual orientation, 
genetic information, political beliefs, reprisal, or because all or 
part of an individual's income is derived from any public assistance 
program. (Not all prohibited bases apply to all programs.) Persons with 
disabilities who require alternative means for communication of program 
information (Braille, large print, audiotape, etc.) should contact 
USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a 
complaint of discrimination, write to USDA, Director, Office of Civil 
Rights, 1400 Independence Avenue, SW., Washington, DC 20250-9410, or 
call (800) 795-3272 (voice), or (202) 720-6382 (TDD). ``USDA is an 
equal opportunity provider, employer, and lender''.

    Dated: March 7, 2006.
Thomas C. Dorr,
Under Secretary, Rural Development.
[FR Doc. E6-3546 Filed 3-10-06; 8:45 am]
BILLING CODE 3410-XY-P