[Federal Register Volume 72, Number 75 (Thursday, April 19, 2007)]
[Notices]
[Pages 19684-19688]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7455]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Funds Availability (NOFA) for the Section 533 Housing 
Preservation Grants for Fiscal Year 2007

    Announcement Type: Initial Notice inviting applications from 
qualified applicants for Fiscal Year 2007.
    Catalog of Federal Domestic Assistance Numbers (CFDA): 10.433.
SUMMARY: The Rural Housing Service (RHS) announces that it is 
soliciting applications under its Housing Preservation Grant (HPG) 
program. The HPG program is a grant program which provides qualified 
public agencies, private nonprofit organizations, and other eligible 
entities grant funds to

[[Page 19685]]

assist very low- and low-income homeowners in repairing and 
rehabilitating their homes in rural areas. In addition, the HPG program 
assists rental property owners and cooperative housing complexes in 
repairing and rehabilitating their units if they agree to make such 
units available to low- and very low-income persons. This action is 
taken to comply with Agency regulations found in 7 CFR part 1944, 
subpart N, which require the Agency to announce the opening and closing 
dates for receipt of preapplications for HPG funds from eligible 
applicants. The intended effect of this Notice is to provide eligible 
organizations notice of these dates.

DATES: The closing deadline for receipt of all applications in response 
to this Notice is 5 p.m., local time for each Rural Development State 
Office on June 18, 2007. The application closing deadline is firm as to 
date and hour. RHS will not consider any application that is received 
after the closing deadline. Applicants intending to mail applications 
must provide sufficient time to permit delivery on or before the 
closing deadline date and time. Acceptance by the United States Postal 
Service or private mailer does not constitute delivery. Facsimile (FAX) 
and postage due applications will not be accepted.

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The reporting requirements contained in this Notice have been 
approved by the Office of Management and Budget under Control Number 
0575-0115.

Program Administration

I. Funding Opportunities Description

    The funding instrument for the HPG Program will be a grant 
agreement. The term of the grant can vary from 1 to 2 years, depending 
on available funds and demand. No maximum or minimum grant levels have 
been established at the National level. You should contact the Rural 
Development State Office to determine the allocation.

II. Award Information

    For Fiscal Year 2007, $10,125,728 is available for the HPG Program. 
The total includes $225,728 in carryover funds. An earmark of $594,000 
has been established for grants located in Empowerment Zones, 
Enterprise Communities, and Rural Economic Area Partnership (REAP) 
Zones and other funds will be distributed under a formula allocation to 
States pursuant to 7 CFR part 1940, subpart L, ``Methodology and 
Formulas for Allocation of Loan and Grant Program Funds.'' Decisions on 
funding will be based on pre-applications.

III. Eligibility Information

    7 CFR part 1944, subpart N provides details on what information 
must be contained in the preapplication package. Entities wishing to 
apply for assistance should contact their respective Rural Development 
State Office to receive further information, the State allocation of 
funds, and copies of the preapplication package. Eligible entities for 
these competitively awarded grants include state and local governments, 
nonprofit corporations, Federally recognized Indian tribes, and 
consortia of eligible entities.
    Federally recognized Indian tribes are exempt from the requirement 
to consult with local leaders. Pursuant to 7 CFR 1944.674, the tribal 
applicant must announce the availability of its statement of activities 
for review in a newspaper, as well as obtain written concurrence of the 
tribal governing body when program participation is operated only on 
tribal land.
    As part of the application, all applicants must also provide a Dun 
and Bradstreet Data Universal Numbering System (DUNS) number. As 
required by the Office of Management and Budget (OMB), all grant 
applicants must provide a DUNS number when applying for Federal grants, 
on or after October 1, 2003. Organizations can receive a DUNS number at 
no cost by calling the dedicated toll-free DUNS number request line at 
1-866-705-5711. Additional information concerning this requirement is 
provided in a policy directive issued by OMB and published in the 
Federal Register on June 27, 2003 (68 FR 38402-38405).
    To comply with the President's Management Agenda, the Department of 
Agriculture is participating as a partner in the new government-wide 
site in FY 2007 grants.gov. The Web site can be found at 
www.grants.gov. Housing Preservation Grants [Catalog of Federal 
Domestic Assistance 10.433] is one of the programs included at 
this Web site. Please note that you must locate the downloadable 
application package for this program by the CFDA Number or FedGrants 
Funding Opportunity Number, which can be found at http://www.fedgrants.gov. If you are an applicant under the Housing 
Preservation Grant Program, you may submit your application to the 
Agency in either electronic or paper format. The deadline for 
electronic and paper format is based on the local time for each USDA 
Rural Development State Office.
    Users of grants.gov will be able to download a copy of the 
application package, complete it off line, and then upload and submit 
the application via the grants.gov site. You may not e-mail an 
electronic copy of a grant application to RHS; however, the Agency 
encourages your participation in grants.gov. The following are useful 
tips and instructions on how to use the Web site:
     When you enter the grants.gov site, you will find 
information about submitting an application electronically through the 
site as well as the hours of operation. RHS strongly recommends that 
you do not wait until the application deadline date to begin the 
application process through grants.gov. To use grants.gov, applicants 
must have a DUNS number.
     You may submit all documents electronically through the 
Web site, including all information typically included on the 
Application for Rural Housing Preservation Grants, and all necessary 
assurances and certifications.
     Your application must comply with any page limit 
requirements described in this NOFA.
     After you electronically submit your application through 
the Web site, you will receive an automatic acknowledgement from 
grants.gov that contains a grants.gov tracking number.
     RHS may request that you provide original signatures on 
forms at a later date.
     You must meet the closing date and local time deadline. If 
you experience technical difficulties on the closing date and are 
unable to meet the 5 p.m. (Washington, DC time) deadline, print out 
your application and submit it to your State Office.

IV. Application and Submission Information

    Applicants wishing to apply for assistance must make its statement 
of activities available to the public for comment. The applicant(s) 
must announce the availability of its statement of activities for 
review in a newspaper of general circulation in the project area and 
allow at least 15 days for public comment. The start of this 15-day 
period must occur no later than 16 days prior to the last day for 
acceptance of pre-applications by RHS.
    Applicants must also contact the Rural Development State Office 
serving the place in which they desire to submit an application to 
receive further information and copies of the application package. 
Rural Development will date and time stamp incoming applications to 
evidence timely receipt, and, upon request, will provide the

[[Page 19686]]

applicant with a written acknowledgment of receipt. A listing of Rural 
Development State Offices, their addresses, telephone numbers, and 
person to contact follows:

    Note: Telephone numbers listed are not toll-free.

Alabama State Office
    Suite 601, Sterling Centre, 4121 Carmichael Road, Montgomery, AL 
36106-3683, (334) 279-3400, 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) 280-8766, TDD (602) 280-
8706, Kathy Wilhelm.
Arkansas State Office
    700 W. Capitol Ave., Rm. 3416, Little Rock, AR 72201-3225, (501) 
301-3258,TDD (501) 301-3063, Clinton King.
California State Office
    430 G Street, 4169, Davis, CA 95616-4169, (530) 934-
4614 ext. 123, TDD (530) 792-5848, Linda Eveland.
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
    1221 College Park Drive, Suite 200, Dover, DE 19904, (302) 857-
3615, TDD (302) 857-3585, Pat Baker.
Florida & Virgin Islands State Office,
    4440 NW. 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) 933-8300, TDD (808) 933-8321, Gayle Kuheana.
Idaho State Office
    Suite A1, 9173 West Barnes Dr., Boise, ID 83709, (208) 378-5628, 
TDD (208) 378-5644, Miriam Haylett.
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,Stephen Dye.
Iowa State Office
    210 Walnut Street Room 873, Des Moines, IA 50309, (515) 284-
4493, 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, Beth Moore.
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, P.O. Box 405, Bangor, ME 04402-0405, 
(207) 990-9110, TDD (207) 942-7331, Bob Nadeau.
Maryland
    Served by Delaware State Office.
Massachusetts, Connecticut, & Rhode Island State Office
    451 West Street Suite 2, Amherst, MA 01002, (413) 253-4315, TDD 
(413) 253-4590, Paul Geoffroy.
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 55125, (651) 
602-7804, TDD (651) 602-7830, Thomas Osborne.
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) 876-9303, TDD (573) 876-9480, Becky Eftink.
Montana State Office
    900 Technology Blvd, Suite B, Bozeman, MT 59718, (406) 585-2515, 
TDD (406) 585-2562, Deborah Chorlton.
Nebraska State Office
    Federal Building, room 152, 100 Centennial Mall N, Lincoln, NE 
68508, (402) 437-5035, TDD (402) 437-5093, Sharon Kluck.
Nevada State Office
    1390 South Curry Street, Carson City, NV 89703-5146, (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 Drive, 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) 477-6404, TDD (315) 477-6447, Tia 
Baker.
North Carolina State Office
    4405 Bland Road, Suite 260, Raleigh, NC 27609, (919) 873-2066, 
TDD (919) 873-2003, William A. Hobbs.
North Dakota State Office
    Federal Building, Room 208, 220 East Rosser, PO Box 1737, 
Bismarck, ND 58502, (701) 530-2046, TDD (701) 530-2113, Barry 
Borstad.
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 Graves.
Oregon State Office
    1201 NE Lloyd Blvd., Suite 801, Portland, OR 97232, (503) 414-
3351, TDD (503)414-3387, Diana Chappell.
Pennsylvania State Office
    One Credit Union Place, Suite 330, Harrisburg, PA 17110-2996, 
(717) 237-2282, TDD (717) 237-2261, Martha E. Hanson.
Puerto Rico State Office
    IBM Building, Suite 601, Munoz Rivera Ave. 654, San 
Juan, 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, Larry Kennedy.
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 84138, (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) 704-7742, Robert L. Lund.
Western Pacific Territories
    Served by Hawaii State Office
West Virginia
    Parkersburg West Virginia County Office, 91 Boyles Lane, 
Parkersburg, WV 26104, (304) 422-9070, TDD (304) 284-4836, Penny 
Thaxton.
Wisconsin State Office
    4949 Kirschling Court, Stevens Point, WI 54481, (715) 345-7608 
(ext.151), TDD (715) 345-7614, Peter Kohnen.

[[Page 19687]]

Wyoming State Office
    PO Box 82601, Casper, WY 82602-5006, (307) 233-6715, TDD (307) 
233-6733, Jack Hyde.

FOR FURTHER INFORMATION CONTACT: For general information, applicants 
may contact Bonnie Edwards-Jackson, Senior Loan Specialist, Multi-
Family Housing Processing Division, Rural Housing Service, United 
States Department of Agriculture, Stop 0781, 1400 Independence Avenue, 
SW., Washington, DC, 20250-0781, telephone (202) 690-0759 (voice) (this 
is not a toll free number) or (800) 877-8339 (TDD-Federal Information 
Relay Service) or via e-mail at, [email protected].

V. Application Review Information

    All applications for Section 533 funds must be filed with the 
appropriate Rural Development State Office and must meet the 
requirements of this Notice and 7 CFR part 1944, subpart N. Pre-
applications determined not eligible and/or not meeting the selection 
criteria will be notified by the Rural Development State Office.
    All applicants will file an original and two copies of Standard 
Form (SF) 424, ``Application For Federal Assistance,'' and supporting 
information with the appropriate Rural Development State Office. A pre-
application package, including SF-424, is available in any Rural 
Development State Office. All preapplications shall be accompanied by 
the following information which Rural Development will use to determine 
the applicant's eligibility to undertake the HPG program and to 
evaluate the preapplication under the project selection criteria of 
Sec.  1944.679 of 7 CFR part 1944, subpart N.
    (a) A statement of activities proposed by the applicant for its HPG 
program as appropriate to the type of assistance the applicant is 
proposing, including:
    (1) A complete discussion of the type of and conditions for 
financial assistance for housing preservation, including whether the 
request for assistance is for a homeowner assistance program, a rental 
property assistance program, or a cooperative assistance program;
    (2) The process for selecting recipients for HPG assistance, 
determining housing preservation needs of the dwelling, performing the 
necessary work, and monitoring/inspecting work performed;
    (3) A description of the process for identifying potential 
environmental impacts in accordance with 7 CFR 1944.672 and the 
provisions for compliance with Stipulation I, A-G of the Programmatic 
Memorandum of Agreement, also known as PMOA, (RD Instruction 2000-FF, 
available in any Rural Development State Office) in accordance with 7 
CFR 1944.673(b);
    (4) The development standard(s) the applicant will use for the 
housing preservation work; and, if not the Rural Development standards 
for existing dwellings, the evidence of its acceptance by the 
jurisdiction where the grant will be implemented;
    (5) The time schedule for completing the program;
    (6) The staffing required to complete the program;
    (7) The estimated number of very low- and low-income minority and 
non-minority persons the grantee will assist with HPG funds; and, if a 
rental property or cooperative assistance program, the number of units 
and the term of restrictive covenants on their use for very low- and 
low-income;
    (8) The geographical area(s) to be served by the HPG program;
    (9) The annual estimated budget for the program period based on the 
financial needs to accomplish the objectives outlined in the proposal. 
The budget should include proposed direct and indirect administrative 
costs, such as personnel, fringe benefits, travel, equipment, supplies, 
contracts, and other cost categories, detailing those costs for which 
the grantee proposes to use the HPG grant separately from non-HPG 
resources, if any. The applicant budget should also include a schedule 
(with amounts) of how the applicant proposes to draw HPG grant funds, 
i.e., monthly, quarterly, lump sum for program activities, etc.;
    (10) A copy of a indirect cost proposal as required in 7 CFR parts 
3015, 3016, and 3019, when the applicant has another source of federal 
funding in addition to the Rural Development HPG program;
    (11) A brief description of the accounting system to be used;
    (12) The method of evaluation to be used by the applicant to 
determine the effectiveness of its program. The evolution method should 
include the requirements for quarterly reports to Rural Development in 
accordance with 7 CFR Sec.  1944.683(b) and the monitoring plan for 
rental properties and cooperatives (when applicable) according to 7 CFR 
Sec.  1944.689;
    (13) The source and estimated amount of other financial resources 
to be obtained and used by the applicant for both HPG activities and 
housing development and/or supporting activities;
    (14) The use of program income, if any, and the tracking system 
used for monitoring same;
    (15) The applicant's plan for disposition of any security 
instruments held by them as a result of its HPG activities in the event 
of its loss of legal status;
    (16) Any other information necessary to explain the proposed HPG 
program; and
    (17) The outreach efforts outlined in 7 CFR 1944.671(b).
    (b) Complete information about the applicant's experience and 
capacity to carry out the objectives of the proposed HPG program.
    (c) Evidence of the applicant's legal existence, including, in the 
case of a private nonprofit organization, a copy of or an accurate 
reference to, the specific provisions of State law under which the 
applicant is organized; a certified copy of the applicant's Articles of 
Incorporation and Bylaws or other evidence of corporate existence; 
certificate of incorporation for entities other than public bodies; 
evidence of good standing from the State when the corporation has been 
in existence 1 year or more; and the names and addresses of the 
applicant's members, directors and officers. If other organizations are 
members of the applicant-organization, or the applicant is a 
consortium, pre-applications should be accompanied by the names, 
addresses, and principal purpose of the other organizations. If the 
applicant is a consortium, documentation showing compliance with 
paragraph (4)(ii) under the definition of ``organization'' in 7 CFR 
1944.656 must also be included.
    (d) For a private nonprofit entity, the most recent audited 
statement and a current financial statement dated and signed by an 
authorized officer of the entity showing the amounts and specific 
nature of assets and liabilities together with information on the 
repayment schedule and status of any debt(s) owed by the applicant.
    (e) A brief statement which includes information about the area to 
be served and the need for improved housing (including both percentage 
and the actual number of both low-income and low-income minority 
households and substandard housing for the area to be covered by HPG 
funds), the need for the type of housing preservation assistance being 
proposed, the anticipated use of HPG resources for historic properties, 
the method of evaluation to be used by the applicant in determining the 
effectiveness of its efforts.
    (f) Applicant must submit an original and one copy of Form RD 1940-
20 prepared in accordance with Exhibit F-1 of RD Instruction 1944-N 
(available in any Rural Development State Office).

[[Page 19688]]

    (g) Applicant must also submit a description of its process for:
    (1) Identifying and rehabilitating properties listed on or eligible 
for listing on the National Register of Historic Places;
    (2) Identifying properties that are located in a floodplain or 
wetland;
    (3) Identifying properties located within the Coastal Barrier 
Resources System; and
    (4) Coordinating with other public and private organizations and 
programs that provide assistance in the rehabilitation of historic 
properties (Stipulation I, D, of the PMOA, RD Instruction 2000-FF, 
available in any Rural Development State Office).
    (h) The applicant must also submit evidence of the State Historic 
Preservation Office's (SHPO) concurrence in the proposal, or in the 
event of nonconcurrence, a copy of SHPO's comments together with 
evidence that the applicant has received information from the Advisory 
Council on Historic Preservation's advice as to how the disagreement 
might be resolved, and a copy of any advice provided by the Council.
    (i) The applicant must submit written statements and related 
correspondence reflecting compliance with Sec.  1944.674 (a) and (c) of 
7 CFR part 1944, subpart N regarding consultation with local government 
leaders in the preparation of its program and the consultation with 
local and state government pursuant to the provisions of Executive 
Order 12372.
    (j) The applicant is to make its statement of activities available 
to the public for comment prior to submission to Rural Development 
pursuant to Sec.  1944.674 (b) of 7 CFR part 1944, subpart N. The 
application must contain a description of how the comments (if any were 
received) were addressed.
    (k) The applicant must submit an original and one copy of Form RD 
400-1, ``Equal Opportunity Agreement,'' and Form 400-4, ``Assurance 
Agreement,'' in accordance with Sec.  1944.676 of 7 CFR part 1944, 
subpart N.
    Applicants should review 7 CFR part 1944, subpart N for a 
comprehensive list of all application requirements.

IV. Selection Criteria

    The Rural Development State Offices will utilize the project 
selection criteria for applicants in accordance with Sec.  1944.679.
    In addition to the criteria established in 7 CFR part 1944.679 and 
in an effort to implement USDA's nationwide initiative to promote 
renewable energy and energy conservation, Rural Development (RD) has 
adopted incentives for energy generation and energy conservation. 
Participation in these nationwide initiatives is voluntary, but is 
strongly encouraged.
    Energy Generation. Applicants will be awarded points if the 
proposal includes the installation of energy generation systems to be 
funded by a third party. The proposal must include an overview of the 
energy generation system being proposed. Evidence that an energy 
generation system has been funded by a third party and that it has a 
quantifiable positive impact on energy consumption will be required. (5 
points)
    Energy Conservation. Applicants will be awarded points to construct 
(or substantially rehabilitate) housing that earns the ENERGY STAR 
label for new residential construction. Units earning the ENERGY STAR 
label must be independently verified to meet guidelines for energy 
efficiency as set by the U.S. Environmental Protection Agency. All 
procedures used in verifying a unit for the ENERGY STAR label must 
comply with National Home Energy Ratings System (HERS) guidelines. 
ENERGY STAR guidelines for residential construction apply to homes that 
are three stories or less and single or low-rise multi-family 
residential buildings.
    The Applicant will include in the narrative an explanation of how 
they plan to incorporate ENERGY STAR. Construction plans pertaining to 
energy efficiency must be developed with, reviewed, and accepted by a 
HERS certified rater, the contractor, and the owner. Progress 
inspections must be made at appropriate times by a HERS certified rater 
to ensure that the housing is being constructed or rehabilitated 
according to ENERGY STAR specifications. In order to receive final 
payment, applicants will be required to submit the appropriate rating 
reports from the HERS rater to RD as evidence that the housing has been 
constructed to meet the standards of ENERGY STAR. In the event that 
housing does not meet ENERGY STAR guidelines for new residential 
construction, the Agency shall, at its discretion, deduct 5 points from 
future funding proposals. For further information about ENERGY STAR, 
see http://www.energystar.gov or call the following toll-free numbers: 
(888) 782-7939 or (888) 588-9920 (TTY). (5 points)
    In the event more than one preapplication receives the same amount 
of points, those preapplications will then be ranked based on the 
actual percentage figure used for determining the points. Further, in 
the event that preapplications are still tied, then those pre-
applications still tied will be ranked based on the percentage for HPG 
fund use (low to high). Further, for applications where assistance to 
rental properties or cooperatives is proposed, those still tied will be 
further ranked based on the number of years the units are available for 
occupancy under the program (a minimum of 5 years is required).
    For this part, ranking will be based from most to least number of 
years. Finally, if there is still a tie, then a lottery system will be 
used.

     Dated: April 12, 2007.
Russell T. Davis,
Administrator Rural Housing Service.
[FR Doc. E7-7455 Filed 4-18-07; 8:45 am]
BILLING CODE 3410-XV-P