[Federal Register Volume 73, Number 235 (Friday, December 5, 2008)]
[Notices]
[Pages 74133-74137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-28805]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Funds Availability (NOFA): Cooperative Agreements for 
Heir Property

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Business-Cooperative Service (RBS) announces the 
availability of approximately $230,000 in funds for fiscal year (FY) 
2009 for cooperative agreements to develop and implement pilot programs 
aimed at: (1) Preventing and alleviating the problems facing African 
Americans in rural areas that are involved with real estate with 
clouded title due to unresolved interests of generations of heirs 
(otherwise known as ``heir properties''); (2) establishing an outreach/
educational program that will assist farmers and homeowners with heir 
property issues in expanding ownership; and (3) enabling farming heir 
property owners to develop economically viable agricultural operations 
and accrue homeownership.
    The Agency proposes to enter into a maximum of four cooperative 
agreements with private non-profit community based organizations (CBO) 
to assist them in the development of proposals to be presented to the 
Agency that meet the purposes described above. The maximum amount of 
each of these initial agreements is $20,000.
    After Agency review of the proposals, the Agency may offer no more 
than two CBOs initially awarded cooperative agreements a subsequent 
cooperative agreement to implement the proposals the CBOs developed. 
The maximum amount of each of these subsequent agreements is $75,000.

DATES: Please submit proposals and applications for the initial 
cooperative agreements no later than 30 days from the date of 
publication in the Federal Register. Late applications will not be 
eligible for FY 2009 funding.
    The initial cooperative agreement awardees will be selected no 
later than February 18, 2009. Any subsequent cooperative agreements 
will be awarded no later than June 3, 2009, subject to availability of 
funds.

ADDRESSES: Applicants may obtain application information, guides, and 
materials for the cooperative agreement by contacting USDA Rural 
Development at (202) 720-8460, (TDD: (800) 877-8339, Federal 
Information Relay Service) and asking for cooperative research 
agreement application guidance.
    Submit completed paper applications for a cooperative agreement to 
USDA Rural Development Cooperative Programs, Attn: Cooperative 
Research, Mail STOP 3250, Room 4016-South, 1400 Independence Avenue, 
SW., Washington, DC 20250-3250. The phone number that should be used 
for FedEx packages is (202) 720-7558.
    Submit electronic applications at http://www.grants.gov, following 
the instructions found on this Web site.

FOR FURTHER INFORMATION CONTACT: USDA Rural Development at (202) 720-
8460, (TDD (800) 877-8339), Federal Information Relay Services).

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    Under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq., OMB must 
approve all ``collections of information'' by USDA Rural Development. 
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 
the Notice is expected to receive less than 10 respondents, the 
Paperwork Reduction Act does not apply.

Overview

    Federal Agency: Rural Business-Cooperative Programs.
    Funding Opportunity Title: Rural Community Development Initiative.
    Announcement Type: Initial Announcement.
    Catalog of Federal Domestic Assistance Number: 10.446.

[[Page 74134]]

    Dates: You may submit completed applications for the cooperative 
agreement on paper or electronically according to the following 
deadlines:
     Paper copies must be postmarked and mailed, shipped, or 
sent overnight no later than January 5, 2009 to be eligible for 
funding. Late applications are not eligible for funding.
     Electronic copies must be received no later than January 
5, 2009, to be eligible for funding. Late applications are not eligible 
for funding.

Purpose of Notice

    The United States Department of Agriculture Rural Development has 
created a Request for Proposals (RFP) structured to address the land 
title problems (heir property) of the rural African American community. 
Those needs were recognized after two years of extensive research and 
public expertise offered during the comment period of the USDA--
Advanced Notice of Proposed Rule (ANPR) published on January 10, 2007 
(72 FR 1190).
    Broadly defined, heir property is property passed down from one 
generation to another. It may be transferred to one heir, subdivided 
among many heirs or transferred to many heirs with undivided interest. 
When a property owner dies without a will, state law determines 
property succession (intestate succession). Typically, title to 
properties passing under state intestate succession laws are inherited 
by heirs with undivided interests thereby creating fractional interests 
also known as tenancy in common. If this process happens for several 
generations, the land titles are divided into small fractional 
interests which become difficult to administer. The heir property 
issues that have elicited concern in the African American farming 
community arise from tenancy in common.
    The ``heir property'' issue includes a cluster of problems arising 
when undivided interest in land is passed to multiple heirs. Problems 
range from land partition sales to reduced crop yields as a result of 
underutilization and the inability to obtain adequate financing secured 
by a fractional interest. The array of problems caused by heir property 
contributes to unsuccessful business models which results in land loss 
and the deterioration of rural African American communities. It should 
be noted, however, that while unclear title contributes to unsuccessful 
business models it is not the sole contributor to the land loss issue.
    For historical reasons this issue is closely associated with 
African American farmers in the South. African American landholdings in 
the post-bellum South were generally very small. Access to capital and 
competent legal counsel were problematic and there was often distrust 
within the African American community regarding the dominant legal and 
lending institutions.
    For all these reasons, heir property issues emerged as a special 
concern of the African American agrarian community and are a priority 
of African American farming and land loss prevention organizations 
today. A parallel issue, heir housing, also presents a significant 
concern. Although not as extensively studied, heir housing also appears 
to pose substantial threats to the well being of rural African American 
communities.
    On January 10, 2007, Rural Development published the ANPR in the 
Federal Register for a 60-day comment period. It detailed a study 
conducted by Rural Development regarding the extent of heir property in 
the African American community, reviewed the role of heir property in 
exacerbating land loss among the African American farming community, 
and requested further comments and information. Seventy-six comments 
were received from twenty commenters in response to the ANPR which have 
been carefully analyzed.
    In order for the African American community to increase land and 
home-ownership and expand farming operations, they must first establish 
clear title to land. The Agency understands that clearing titles is an 
important prerequisite to establishing sound assets, but the challenge 
of developing sustainable market-driven business models will remain.

I. Funding Opportunity Description

A. Basic Proposal Components and Objectives
    The Agency realizes that a multidimensional approach is needed to 
achieve the goal of minimizing African American land loss and ensuring 
sustainable rural African American communities. Based on suggestions 
from the ANPR comments, the Agency requests proposals for a pilot 
program for a specific area such as a county. In addition, the 
proposals must include a description of how steps in this 
multidimensional approach will be enacted concurrently. This 
description should include, but is not limited to, the following: 
Project timeline, line-item budget (identifying matching funds), 
project activities, minimum size and cost for representative sampling, 
performance measures, and evaluation criteria.
    The Agency seeks proposals with new, innovative ideas for not only 
clearing title, but for establishing an education/outreach program that 
will lay the foundation to grow African American land and home 
ownership. The Agency urges CBOs to submit proposals with effective 
techniques for clearing title and ensuring that the property is managed 
in a long term economically viable manner.
    Proposals submitted need to identify a date that will serve as the 
``cut-off date'' for clearing titles and the approach for obtaining 
information based on the ``cut-off date.'' Additionally, proposals 
submitted need to address both the legal and operational issues 
associated with farm and home ownership. The Agency does not wish to 
fund any proposal solely focused on preservation. Alone, a clear title 
initiative would not be enough; expanding land and home ownership 
within the African American community is the goal.
B. Outreach/Education
    The first and most important step is to enhance current outreach 
programs and create new ones if needed. In addition to fixing heir 
property problems that already exist, the Agency is looking for 
proposals from CBOs that can enable property owners to prevent future 
heir property situations through proper estate planning. The outreach 
portion of the proposal should also be designed to teach heir property 
owners about their legal rights and limitations and their options for 
resolving heir property problems. Another fundamental component of the 
outreach/education portion is teaching property owners how to use 
leverage assets to generate income and expand ownership.
C. Legal Assistance To Clear Title
    Proposals should outline how the CBO intends to provide legal 
assistance to clear title. Because each heir property is a unique case, 
there is no one legal remedy that will work for all. Mediation, for 
example, is the least costly way to consolidate properties. However, it 
is often difficult to reach agreement among the heirs about the most 
judicious way to divide or sell the property, so multiple legal 
remedies are needed.
    CBOs will also be responsible for working with attorneys that will 
develop strategies and coalitions to address legal hurdles, such as 
State property or estate laws which hold back African American farmers 
and homeowners from establishing clear title. USDA does not believe a 
blanket

[[Page 74135]]

approach is in the best interest of heir property owners. These 
approaches must be flexible enough to fit the specific needs of the 
situation.

II. Award Information

Initial Cooperative Agreements
    Type of Award: Cooperative Agreement.
    Fiscal Year Funds: FY 2009.
    Total Funding: $80,000.
    Approximate Number of Awards: 4.
    Average Award: $20,000.
    Anticipated Award Date: No later than February 18, 2009.
Subsequent Cooperative Agreements
    Type of Award: Cooperative Agreement.
    Fiscal Year Funds: FY 2009.
    Total Funding: $150,000.
    Approximate Number of Awards: 2.
    Average Award: $75,000.
    Anticipated Award Date: No later than July 6, 2009.

III. Eligibility Information

    A. Eligible Applicants: All private, non-profit, CBOs are eligible 
for assistance. CBOs can be secular or faith-based organizations.
    B. Priority: The most important criteria for a CBO to be successful 
are: Locality and familiarity with heir property issues. Priority will 
be given to the CBOs with those strongest qualities. USDA will also pay 
special consideration to the CBOs that offer fresh ideas that have not 
been tried before but could be replicated across the Nation.
    C. Project Eligibility: The project purpose is comprised of two 
components. First, the applicant must describe how the proposed project 
consists of activities needed to prevent and alleviate heir property, 
and to enable heir property owners to develop an economically viable 
agricultural operation. Second, the applicant must demonstrate that the 
combined activities are sufficient to prevent and alleviate heir 
property issues, and in the case of farmed heir property, to enable 
heir property owners to develop economically viable agricultural 
operations.
    D. Completeness Eligibility: Applications without sufficient 
information to determine eligibility will not be considered for 
funding. Applications that are missing any required elements (in whole 
or in part) will not be considered for funding.
    E. Matching Funds: Matching funds are not required but are highly 
encouraged. Matching funds must be provided by either the applicant or 
by a third party in the form of cash or in-kind contributions.

IV. Application and Submission Information

    The purpose of this Notice is to seek the development of a variety 
of proposals that provide comprehensive solutions to address the heir 
property situation as described in the ANPR and above. You may submit 
your application in paper or in an electronic format.
    If you submit your application in paper form, you must submit one 
signed original of your complete application along with two additional 
copies.
    If you submit your application electronically, you must follow the 
instructions given at http://www.grants.gov. Applicants are advised to 
visit the site well in advance of the application deadline if they plan 
to apply electronically to ensure that they have obtained the proper 
authentication and have sufficient computer resources to complete the 
application.
    Each submission shall include:
    A. Form SF-424, ``Application for Federal Assistance.'' In order 
for this form to be considered complete, it must contain the legal name 
of the applicant, the applicant's Dun and Bradstreet Data Universal 
Numbering System (DUNS) number, the applicant's complete mailing 
address, the name and telephone number of a contact person, the 
employer identification number (EIN), the start and end dates of the 
project, the Federal funds requested, other funds that will be used as 
matching funds, an answer to the question, ``Is applicant delinquent on 
any Federal debt?'', the name and signature of an authorized 
representative, the telephone number of the authorized representative, 
and the date the form was signed. Other information requested on the 
form may be applicable, but the above-listed information is required 
for an application to be considered complete.
    The DUNS number is a nine-digit identification number, which 
uniquely identifies business entities. Applicants can receive a DUNS 
number at no cost by accessing http://www.dnb.com/us/ or calling (866) 
705-5711.
    B. Form SF-424A, ``Budget Information--Non-Construction Programs.'' 
In order for this form to be considered complete, the applicant must 
fill out Sections A, B, C, and D. The applicant must include both 
Federal and any matching funds to be included.
    C. Form SF-424B, ``Assurances--Non-Construction Programs.'' In 
order for this form to be considered complete, the form must be signed 
by an authorized official and include the title, name of applicant, and 
date.
    D. Title Page. The title page must include the title of the project 
as well as any other relevant identifying information. The length 
should not exceed one page.
    E. Table of Contents. For ease of locating information, each 
proposal must contain a detailed Table of Contents immediately 
following the title page.
    F. Executive Summary. A summary of the proposal, not to exceed one 
page, must briefly describe the project, including goals, tasks to be 
completed, and other relevant information that provides a general 
overview of the project. In the event an applicant submits more than 
one page for this element, only the first page submitted will be 
considered.
    G. Eligibility Discussion. The applicant must describe how it meets 
the definition of a CBO, and how the project meets the purposes, 
described in Eligibility Information Section paragraph C.
    H. Proposal Narrative. The narrative must include the following 
information:
    1. Project Title. The title of the proposed project must be brief, 
not to exceed 75 characters, yet describe the essentials of the 
project. The project title does not need to appear on a separate page. 
It can be included on the title page and/or on the information sheet.
    2. Goals of the Project. A clear statement of the ultimate goals of 
the project must be included. There must be an explanation of how 
economic benefit will be measured.
    3. Workplan. The narrative must:
    (i) identify the location of the area to be served and an estimate 
of the scope of the heir property problems contained in such area,
    (ii) contain a description of how the proposal would address these 
problems,
    (iii) identify the types of resources that would be needed,
    (iv) contain a description of how such resources would be secured,
    (v) identify the role of the CBO in managing the activities 
described and resources and capabilities of the CBO to manage these 
activities.
    4. Description of the CBO. The narrative must:
    (i) describe the CBO, including its purposes and experience in 
managing activities of this type and knowledge of the heir property 
situation in the proposed area to be served,
    (ii) identify resources and capabilities of the CBO to manage 
activities described in item 3, and
    (iii) identify the local connections the CBO has to African-
American

[[Page 74136]]

community affected by the heir property situation described in this 
Notice and the ANPR.

V. Application Review Information

    All eligible and complete applications will be evaluated based on 
the following criteria and maximum point allowances. Failure to address 
any one of the following criteria by the application deadline will 
result in a determination of incompleteness and the application will 
not be considered for funding. The total points available for the set 
of criteria are 80.
    1. Relevance of the project proposal (30 points). Proposals will be 
evaluated on how directly they address the stated objective of 
preventing and alleviating heir property.
    2. Quality of Workplan (30 points). The quality evaluation 
criterion will be based on whether the proposal outlines a sound plan 
of work that will meet the objectives in a timely and cost-efficient 
manner. Factors to be weighed by evaluators in scoring a proposal's 
workplan will include:
     How well the steps for carrying out the work are defined;
     The logic of the sequence of proposed steps and the 
likelihood they will achieve their intended result;
     The establishment of clear benchmarks and timetables to 
measure the progress of the project; and
     The detail, accuracy, and reasonableness of the project's 
proposed budget.
    3. Funding match and community support (5 points). Points will be 
awarded on the basis of the percentage match provided by the applicant 
and the level of support for the proposal from the community as 
evidenced by contribution of resources to the match and other 
indications of support.
     Up to 5 points will be awarded for matching funds provided 
by or arranged for by the applicant. Two points will be awarded for 
each 5 percent match, up to a maximum of 5 points for a 20 percent 
match.
    4. CBO's locality and experience (15 points). Points will be 
awarded on the basis of the physical proximity of the CBO in relation 
to the location of the project and the CBO's experience with heir 
property issues in the proposed area to be served.
     Up to 15 points will be awarded for locality and 
experience. Five points will be awarded for locality, 5 points will be 
awarded for experience within the community, and 5 points experience 
with heir property issues.

VI. Review and Selection Process

    Each application will be initially reviewed by Rural Development 
for eligibility and to determine whether all required elements are 
complete. Any incomplete or ineligible applications will not be further 
evaluated or considered for funding.
    Once the proposals are scored, the scores will be used to rank the 
proposals. Final award recommendation will be sent to the Under 
Secretary for Rural Development for final selection concurrence.
    After the award selection is made, all applicants will be notified 
of the status of their applications by mail. The awardee must meet all 
statutory and regulatory program requirements in order to receive their 
award. In the event that an awardee cannot meet the requirements, the 
award will be withdrawn. Selection will be made January 20, 2009. The 
Agency may have follow-up questions.
    Awardees will be required to enter into a cooperative agreement 
with the Agency (RBS). The awardee under the terms of the agreement 
will be required to submit a more detailed proposal to address the heir 
property issues of the proposed service area.
Subsequent Agreement
    Based on these submissions, the Agency may offer an awardee under 
this Notice the opportunity to enter into another cooperative agreement 
to implement the proposal submitted.

VII. Award Administration Information

A. Award Notices
    The successful applicant will receive a notification of tentative 
selection for funding from USDA Rural Development. The applicant must 
sign a mutually agreed-to cooperative agreement and comply with all 
applicable statutes, regulations, and this notice before the award will 
receive final approval.
    Unsuccessful applicants will receive notification, including 
mediation procedures and appeal rights, by mail.
B. Administrative and National Policy Requirements
    This award is subject to 7 CFR parts 3015 and 3019. These 
regulations may be accessed at http://www.access.gpo.gov/nara/cfr/cfr-table-search.html#page1.
    The following additional documentation requirements apply to the 
awardee selected for this program:
     Agency Approved Cooperative Agreement.
     Form RD 1940-1, ``Request for Obligation of Funds''.
     Form AD-1047, ``Certification Regarding Debarment, 
Suspension, and Other Responsibility Matters-Primary Covered 
Transactions''.
     Form AD-1048, ``Certification Regarding Debarment, 
Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered 
Transactions''.
     Form AD-1049, ``Certification Regarding a Drug-Free 
Workplace Requirements (Grants)''.
     Form RD 400-1, ``Equal Opportunity Agreement''.
     Form RD 400-4, ``Assurance Agreement''.
    Additional information on these requirements can be found at http://www.rurdev.usda.gov/rbs/coops/reic.htm.
    Reporting Requirements: You must provide USDA Rural Development 
with an original or an electronic copy that includes all required 
signatures of the following reports. The reports should be submitted to 
the Agency contact listed on your Cooperative Agreement. Failure to 
submit satisfactory reports on time may result in suspension or 
termination of your award.
    1. Form SF-269 or SF-269A. A ``Financial Status Report,'' listing 
expenditures according to agreed upon budget categories, on a quarterly 
basis. Reporting periods end each December 31, March 31, June 30, and 
September 30. Reports are due 30 days after the reporting period ends.
    2. Quarterly performance reports that compare accomplishments to 
the objectives stated in the proposal. Identify all tasks completed to 
date and provide documentation supporting the reported results. If the 
original schedule provided in the workplan is not being met, the report 
should discuss the problems or delays that may affect completion of the 
project. Objectives for the next reporting period should be listed. 
Compliance with any special condition on the use of award funds should 
be discussed. Reporting periods end each December 31, March 31, June 
30, and September 30. Reports are due 30 days after the reporting 
period ends. Supporting documentation must also be submitted for 
completed tasks. The supporting documentation for completed tasks 
include, but are not limited to, questionnaire or interview guides, 
publications of research findings, summaries of data collected, and any 
other documentation related to how funds were spent.
    3. Final Project performance reports that compare accomplishments 
to the objectives stated in the proposal. Identify all tasks completed 
and provide documentation supporting the reported results. If the 
original schedule provided

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in the workplan was not met, the report must discuss the problems or 
delays that affected completion of the project. Compliance with any 
special condition on the use of award funds should be discussed. 
Supporting documentation for completed tasks must also be submitted. 
The supporting documentation for completed tasks include, but are not 
limited to, publications of research findings, summaries of data 
collected, documentation of data and software delivered to USDA Rural 
Development, and any other documentation related to how funds were 
spent. The final performance report is due within 90 days of the 
completion of the project.

VIII. Non-Discrimination Statement

    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: December 1, 2008.
Thomas C. Dorr,
Under Secretary for Rural Development.
 [FR Doc. E8-28805 Filed 12-4-08; 8:45 am]
BILLING CODE 3410-XY-P