[Federal Register Volume 76, Number 102 (Thursday, May 26, 2011)]
[Notices]
[Pages 30641-30646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-13012]


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

DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Funding Availability (NOFA) for Loan Guarantees Under 
Section 538 Guaranteed Rural Rental Housing Program (GRRHP) for Fiscal 
Year 2011

AGENCY: Rural Housing Service, USDA.

ACTION: NOFA.

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

SUMMARY: This is a request for proposals for guaranteed loans under the 
section 538 Guaranteed Rural Rental Housing Program (GRRHP) pursuant to 
7 CFR 3565.4 for Fiscal Year (FY) 2011. The Department of Defense and 
Full Year Continuing Appropriations Act, 2011 (Pub. L. 112-20) (April 
15, 2011) appropriated approximately $31,000,000 to the Agency for FY 
2011 funding for the section 538 program. The commitment of program 
dollars will be made first to approved and complete applications from 
prior years NOFA, then to applicants of selected responses in the order 
they are ranked under this NOFA that have fulfilled the necessary 
requirements for obligation.
    Expenses incurred in developing applications will be at the 
applicant's risk. The following paragraphs outline the timeframes, 
eligibility requirements, lender responsibilities, and the overall 
response and application processes.
    Eligible lenders are invited to submit responses for new 
construction and acquisition with rehabilitation of affordable rural 
rental housing. The Agency will review responses submitted by eligible 
lenders, on the lender's letterhead, and signed by both the prospective 
borrower and lender. Although a complete application is not required in 
response to this NOFA, eligible lenders may submit a complete 
application concurrently with the response. Submitting a complete 
application will not have any effect on the respondent's NOFA response 
score.

DATES: Eligible responses to this NOFA will be accepted per this 
guidance until

[[Page 30642]]

December 30, 2011, 12 p.m. Eastern Time. Selected responses that 
develop into complete applications and meet all Federal eligibility 
requirements will receive conditional commitments until all funds are 
expended. Selected responses to this NOFA that are deemed eligible for 
further processing after September 30, 2011, will be funded to the 
extent an appropriation act provides funding for GRRHP for FY 2012 and 
will be subject to any additional limitations that may be in the FY 
2012 NOFA.
    Eligible lenders mailing a response or application must provide 
sufficient time to permit delivery to the submission address on or 
before the closing deadline date and time. Acceptance by a U.S. Post 
Office or private mailer does not constitute delivery. Postage due 
responses and applications will not be accepted.
    Submission Address: Eligible lenders will send responses to the 
Multi-family Housing Program Director of the State Office where the 
project will be located.
    USDA Rural Development State Offices, their addresses, and 
telephone numbers, follow: [this information may also be found at 
http://www.rurdev.usda.gov/recd_map.html].

    Note:  Telephone numbers listed are not toll-free.

Alabama State Office, 4121 Carmichael Road, Suite 601, Sterling Centre, 
Montgomery, AL 36106-3683, (334) 279-3400, TDD (334) 279-3495.
Alaska State Office, 800 West Evergreen, Suite 201, Palmer, AK 99645, 
(907) 761-7740, TDD (907) 761-8905.
Arizona State Office, 230 North First Avenue, Suite 206, Phoenix, AZ 
85003-1706, (602) 280-8755, TDD (602) 280-8706.
Arkansas State Office, 700 W. Capitol Avenue, Room 3416, Little Rock, 
AR 72201-3225, (501) 301-3200, TDD (501) 301-3279.
California State Office, 430 G Street, 4169, Davis, CA 95616-
4169, (530) 792-5800, TDD (530) 792-5848.
Colorado State Office, 655 Parfet Street, Room E100, Lakewood, CO 
80215, (720) 544-2915, TDD (800) 659-2656.
Connecticut: Served by Massachusetts State Office.
Delaware and Maryland State Office, 1221 College Park Drive, Suite 200, 
Dover, DE 19904, (302) 857-3580, TDD (302) 857-3585.
Florida & Virgin Islands State Office, 4440 N.W. 25th Place, P.O. Box 
147010, Gainesville, FL 32614-7010, (352) 338-3400, TDD (352) 338-3499.
Georgia State Office, Stephens Federal Building, 355 E. Hancock 
Avenue--Stop 307, Athens, GA 30601-2768, (706) 546-2162, TDD (706) 546-
2034.
Hawaii State Office, (Services all Hawaii, American Samoa Guam, and 
Western Pacific), Room 311, Federal Building, 154 Waianuenue Avenue, 
Hilo, HI 96720, (808) 933-8380, TDD (808) 933-8321.
Idaho State Office, 9173 West Barnes Drive, Suite A1, Boise, ID 83709, 
(208) 378-5602, TDD (208) 378-5644.
Illinois State Office, 2118 West Park Court, Suite A, Champaign, IL 
61821-2986, (217) 403-6200, TDD (217) 403-6240.
Indiana State Office, 5975 Lakeside Boulevard, Indianapolis, IN 46278-
1966, (317) 290-3100 (ext. 4), TDD (317) 290-3343.
Iowa State Office, 210 Walnut Street, Room 873, Des Moines, IA 50273, 
(515) 284-4663, TDD (515) 284-4858.
Kansas State Office, 1303 SW First American Place, Suite 100, Topeka, 
KS 66604-4040, (785) 271-2700, TDD (785) 271-2767.
Kentucky State Office, 771 Corporate Drive, Suite 200, Lexington, KY 
40503, (859) 224-7300, TDD (859) 224-7422.
Louisiana State Office, 3727 Government Street, Alexandria, LA 71302, 
(318) 473-7921, TDD (318) 473-7655.
Maine State Office, 967 Illinois Avenue, Suite 4, Bangor, ME 04402-
0405, (207) 990-9100 (ext. 4), TDD (207) 942-7331.
Maryland: Served by Delaware State Office.
Massachusetts, Connecticut, & Rhode Island State Office, 451 West 
Street, Suite 2, Amherst, MA 01002, (413) 253-4300, TDD (413) 253-4590.
Michigan State Office, 3001 Coolidge Road, Suite 200, East Lansing, MI 
48823, (517) 324-5190, TDD (517) 324-5169.
Minnesota State Office, 375 Jackson Street, Suite 410, St. Paul, MN 
55101-1853, (651) 602-7800, TDD (651) 602-7830.
Mississippi State Office, Federal Building, Suite 831, 100 W. Capitol 
Street, Jackson, MS 39269, (601) 965-4318, TDD (601) 965-5850.
Missouri State Office, 601 Business Loop 70 West, Parkade Center, Suite 
235, Columbia, MO 65203, (573) 876-0976, TDD (573) 876-9480.
Montana State Office, 2229 Boot Hill Court, Bozeman, MT 59715, (406) 
585-2540, TDD (406) 585-2562.
Nebraska State Office, Federal Building, Room 152, 100 Centennial Mall 
N, Lincoln, NE 68508, (402) 437-5551, TDD (402) 437-5093.
Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-
9910, (775) 887-1222 (ext. 100), TDD (775) 885-0633.
New Hampshire State Office, 10 Ferry Street, Concord, NH 03301-5004, 
Suite 218, Box 317, (603) 223-6046, TDD (802) 828-6365.
New Jersey State Office, 8000 Midlantic Drive, 5th Floor North Suite 
500, Mt. Laurel, NJ 08054, (856) 787-7700, TDD (856) 787-7730.
New Mexico State Office, 6200 Jefferson Street NE, Albuquerque, NM 
87109, (505) 761-4950, TDD (505) 761-4938.
New York State Office, The Galleries of Syracuse, 441 S. Salina Street, 
Suite 357, Syracuse, NY 13202-2425, (315) 477-6400, TDD (315) 477-6447.
North Carolina State Office, 4405 Bland Road, Suite 260, Raleigh, NC 
27609, (919) 873-2000, TDD 711 (state relay system).
North Dakota State Office, Federal Building, Room 208, 220 East Rosser, 
P.O. Box 1737, Bismarck, ND 58502, (701) 530-2061, TDD (701) 530-2090.
Ohio State Office, Federal Building, Room 507, 200 North High Street, 
Columbus, OH 43215-2477, (614) 255-2400, TDD (800) 877-8339.
Oklahoma State Office, 100 USDA, Suite 108, Stillwater, OK 74074-2654, 
(405) 742-1000, TDD (405) 742-1007.
Oregon State Office, 1201 NE. Lloyd Boulevard, Suite 801, Portland, OR 
97232-1274, (503) 414-3300, TDD (503) 414-3387.
Pennsylvania State Office, One Credit Union Place, Suite 330, 
Harrisburg, PA 17110-2996, (717) 237-2299, TDD 711 (state relay 
system).
Puerto Rico State Office, 654 Munoz Rivera Avenue, Suite 601, San Juan, 
PR 00918, (787) 766-5095, TDD (787) 766-5332.
Rhode Island: Served by Massachusetts State Office.
South Carolina State Office, Strom Thurmond Federal Building, 1835 
Assembly Street, Room 1007, Columbia, SC 29201, (803) 765-5163, TDD 
(803) 765-5697.
South Dakota State Office, Federal Building, Room 210, 200 Fourth 
Street, SW., Huron, SD 57350, (605) 352-1100, TDD (605) 352-1147.
Tennessee State Office, 3322 West End Avenue, Suite 300, Nashville, TN 
37203, (615) 783-1300, TDD (615) 783-1397.
Texas State Office, Federal Building, Suite 102, 101 South Main, 
Temple, TX 76501, (254) 742-9700, TDD (254) 742-9712.
Utah State Office, Wallace F. Bennett Federal Building, 125 S. State 
Street, Room 4438, Salt Lake City, UT 84138, (801) 524-4320, TDD (801) 
524-3309.
Vermont State Office, City Center, 3rd Floor, 89 Main Street, 
Montpelier, VT 05602, (802) 828-6080, TDD (802) 223-6365.

[[Page 30643]]

Virgin Islands: Served by Florida State Office.
Virginia State Office, 1606 Santa Rosa Road, Suite 238, Richmond, VA 
23229, (804) 287-1500, TDD (804) 287-1753.
Washington State Office, 1835 Black Lake Blvd. SW., Suite B, Olympia, 
WA 98512, (360) 704-7740, TDD (360) 704-7772.
Western Pacific Territories: Served by Hawaii State Office.
West Virginia State Office, Federal Building, 1550 Earl Core Road, 
Suite 101, Morgantown, WV 26505, (304) 284-4881, TDD (304) 284-4836.
Wisconsin State Office, 4949 Kirschling Court, Stevens Point, WI 54481, 
(715) 345-7600, TDD (715) 345-7614.
Wyoming State Office, P.O. Box 11005, Casper, WY 82602, (307) 233-6700, 
TDD (307) 233-6733.

FOR FURTHER INFORMATION CONTACT: Monica Cole, Financial and Loan 
Analyst, USDA Rural Development Guaranteed Rural Rental Housing 
Program, Multi-Family Housing Guaranteed Loan Division, U.S. Department 
of Agriculture, South Agriculture Building, Room 1263, STOP 0781, 1400 
Independence Avenue, SW., Washington, DC 20250-0781. E-mail: 
[email protected]. Telephone: (202) 720-1251. This number is not 
toll-free. Hearing or speech-impaired persons may access that number by 
calling the Federal Information Relay Service toll-free at (800) 877-
8339.

Overview

    Federal Agency: Rural Housing Service.
    Solicitation Opportunity Title: Guaranteed Multi-Family Housing 
Loans.
    Announcement Type: Initial Solicitation Announcement.
    Catalog of Federal Domestic Assistance: 10.438.
    Dates: Response Deadline: December 30, 2011,12 p.m. Eastern Time.

Funding Opportunity Description:

    The GRRHP is authorized by section 538 of the Housing Act of 1949, 
as amended (42 U.S.C. 1490p-2) and operates under 7 CFR part 3565. The 
GRRHP Origination and Servicing Handbook (HB-1-3565) is available to 
provide lenders and the general public with guidance on program 
administration. HB-1-3565, which contains a copy of 7 CFR part 3565 in 
Appendix 1, can be found at: http://www.rurdev.usda.gov/regs/Handbooks.html#hbw6. The purpose of the GRRHP is to increase the supply 
of affordable rural rental housing through the use of loan guarantees 
that encourage partnerships between the Agency, private lenders, and 
public agencies.

Eligibility of Prior Year Selected Notice of Funding Availability 
Responses

    Prior fiscal year response selections that did not develop into 
complete applications within the time constraints stipulated by the 
corresponding State Office have been cancelled. Applicants have been 
notified of the cancellation by the State Office. A new response for 
the project may be submitted subject to the conditions of this NOFA.
    Prior years NOFA responses that were selected by the Agency, with a 
complete application (including all Federal environmental documents 
required by 7 CFR part 1940, subpart G, and a Form RD 3565-1 
``Application for Loan and Guarantee'') submitted by the lender within 
90 days from the date of notification of response selection (unless an 
extension was granted by the Agency), will be eligible for any FY 2011 
program dollars without having to complete a FY 2011 response. 
Outstanding prior years approved applications were obligated to the 
extent of available funding in order of priority score with the highest 
scores obligated first. In the case of tied scores, the project with 
the greatest leveraging (lowest Loan to Cost) received selection 
priority. Once the outstanding prior years approved applications have 
been funded, the Agency will select FY 2011 responses for further 
processing in rank order as determined by the scoring criteria set 
forth in this NOFA to the extent that funds remain available.
    Qualifying Properties: Qualifying properties include new 
construction for multi-family housing units and the acquisition of 
existing structures with a minimum per unit rehabilitation expenditure 
requirement in accordance with 7 CFR 3565.252.
    Also eligible is the revitalization, repair and transfer (as 
stipulated in 7 CFR 3560.406) of existing direct section 515 housing 
(transfer costs are subject to Agency approval and must be an eligible 
use of loan proceeds as listed in 7 CFR 3565.205) and properties 
involved in the Agency's MPR program. Equity payment, as stipulated 7 
CFR 3560.406, in the transfer of existing direct section 515 housing, 
is an eligible use of guaranteed loan proceeds, however the amount of 
funding available for transfers of existing section 515 properties 
involving equity payments will be limited to 25 percent of the FY 2011 
funding level through August 31, 2011. Once the Agency has committed 25 
percent of the total funding available for transfers of existing 
section 515 properties with equity payments, no further funding will be 
available for transfers of existing section 515 properties with equity 
payments until after August 31, 2011, if funding is available. If there 
is funding available after August 31, 2011, funding requests for 
transfers of existing 515 properties involving equity payments will be 
obligated in the order the obligation request was received at the 
National Office. Funding requests for transfers of existing 515 
properties involving equity payments will be kept in a separate queue. 
The 25 percent limit is solely for equity payments and does not affect 
515 properties' use of 538 loans for rehabilitation and repairs. In 
order to be considered, the transfer of direct section 515 housing and 
MPR projects must need repairs and undergo revitalization of a minimum 
of $6,500 per unit.
    Eligible Financing Sources: Any form of Federal, state, and 
conventional sources of financing can be used in conjunction with the 
loan guarantee, including Home Investment Partnership Program (HOME) 
grant funds, tax exempt bonds, and low income housing tax credits.
    Types Of Guarantees: The Agency offers three types of guarantees 
which are set forth at 7 CFR 3565.52(c).
    The Agency's liability under any guarantee will decrease or 
increase, in proportion to any decrease or increase in the amount of 
the unpaid portion of the loan, up to the maximum amount specified in 
the Loan Note Guarantee. Penalties incurred as a result of default are 
not covered by any of the program's guarantees. The Agency may provide 
a lesser guarantee based upon its evaluation of the credit quality of 
the loan.
    Energy Conservation: USDA Rural Development has adopted a policy 
that all new multi-family housing projects financed in whole or in part 
by the USDA, will be encouraged to engage in sustainable building 
development that emphasizes energy-efficiency and conservation. In 
order to assist in the achievement of this goal, any GRRHP project that 
participates in one or all of the programs included in priority 6 under 
the Scoring of Priority Criteria for Selection of Projects section of 
this NOFA, may receive a maximum of twenty (20) additional points added 
to their project score. Participation in these nationwide initiatives 
is voluntary, but strongly encouraged.
    Interest Credit: The FY 2011 appropriation act did not fund 
interest credit.
    Surcharges for Guarantee of Construction Advances: There is no

[[Page 30644]]

surcharge for the guarantee of construction advances for FY 2011.
    Program Fees for FY 2011: As a condition of receiving a loan 
guarantee, and as provided in 7 CFR 3565.302, the Agency will charge 
the following fees to the lender responding to the FY 2011 NOFA. The 
fees are as follows:
    (1) No application fee for lenders submitting an application.
    (2) No initial guarantee fee for lenders submitting an application.
    (3) No annual guarantee fee for lenders submitting an application.
    (4) A flat fee of $500 when a lender requested USDA Rural 
Development to extend the term of a guarantee commitment.
    (5) A flat fee of $500 when a lender requested USDA Rural 
Development to reopen an application when a commitment had expired.
    (6) A flat fee of $1,250 when a lender requested USDA Rural 
Development to approve the transfer of property and assumption of the 
loan to an eligible prospective borrower.
    (7) No lender application fee for lender approval.

Eligibility Information

    Eligible Lenders: An eligible lender for the section 538 GRRHP as 
required by 7 CFR 3565.102 must be a licensed business entity or 
Housing Finance Agency (HFA) in good standing in the state or states 
where it conducts business. Lender eligibility requirements are 
contained in 7 CFR 3565.102. Please review 7 CFR 3565.102 for a 
complete list of all of the criteria. The Agency will only accept 
responses from GRRHP eligible or approved lenders as described in 7 CFR 
3565.102 and 3565.103 respectively.
    GRRHP Lender Approval Application: Lenders whose responses are 
selected will be notified by the USDA Rural Development to submit a 
request for GRRHP lender approval application within 30 days of 
notification. Lenders who request GRRHP approval must meet the 
standards in the 7 CFR part 3565 and provide the documentation set 
forth in GRRHP Origination and Servicing Handbook (HB-1-3565) found at 
http://www.rurdev.usda.gov/Handbooks.html#hbw6 (and available in any 
local RD office).
    Lenders that have received GRRHP lender approval in the past and 
are in good standing do not need to reapply for GRRHP lender approval. 
A lender making a construction loan must demonstrate an ability to 
originate and service construction loans, in addition to meeting the 
other requirements of 7 CFR part 3565, subpart C.
    Submission of Documentation For GRRHP Lender Approval: All lenders 
that have not yet received GRRHP lender approval must submit a complete 
lender application to: Director, Multi-Family Housing Guaranteed Loan 
Division, Rural Development, U.S. Department of Agriculture, Room 1263, 
STOP 0781, 1400 Independence Avenue, SW., Washington, DC 20250-0781. 
Lender applications must be identified as ``Lender Application--Section 
538 Guaranteed Rural Rental Housing Program'' on the envelope.

Discussion of NOFA Response Requirements

    Content of NOFA Responses: All responses require lender information 
and project specific data as set out in this NOFA. Incomplete responses 
will not be considered for funding. Lenders will be notified of 
incomplete responses no later than 30 calendar days from the date of 
receipt of the NOFA response by the Agency. Complete responses are to 
include a signed cover letter from the lender on the lender's 
letterhead to the office address identified in the NOFA for the scoring 
and ranking of a proposed GRRHP project. The lender must provide the 
requested information concerning the project, to establish the purpose 
of the proposed project, its location, and how it meets the established 
priorities for funding. The Agency will determine the highest ranked 
responses based on priority criteria and a threshold score.
    (1) Lender Certification--The lender must certify that the lender 
will make a loan to the prospective borrower for the proposed project, 
under specified terms and conditions subject to the issuance of the 
GRRHP guarantee. Lender certification must be on the lender's 
letterhead and signed by both the lender and the prospective borrower.
    (2) Project Specific Data--The lender must submit the project 
specific data below on the lender's letterhead, signed by both the 
lender and the prospective borrower:

------------------------------------------------------------------------
                                             Information that must be
              Data element                           included
------------------------------------------------------------------------
Lender Name............................  Insert the lender's name.
Lender Tax ID ................  Insert lender's tax ID .
Lender Contact Name....................  Name of the lender contact for
                                          loan.
Mailing Address........................  Lender's complete mailing
                                          address.
Phone ........................  Phone  for lender
                                          contact.
Fax ..........................  Insert lender's fax .
E-mail Address.........................  Insert lender contact e-mail
                                          address.
Borrower Name and Organization Type....  State whether borrower is a
                                          Limited Partnership,
                                          Corporation, Indian Tribe,
                                          etc.
Equal Opportunity Survey...............  Optional Completion
Tax Classification Type................  State whether borrower is for
                                          profit, not for profit, etc.
Borrower Tax ID ..............  Insert borrower's tax ID .
Borrower DUNS ................  Insert DUNS number.
Borrower Address, including County.....  Insert borrower's address and
                                          county.
Borrower Phone , fax number     Insert borrower's phone , fax number and e-mail
                                          address.
Principal or Key Member for the          Insert name and title. List the
 Borrower.                                general partners if a limited
                                          partnership, officers if a
                                          corporation or members of a
                                          Limited Liability Corporation.
Borrower Information and Statement of    Attach relevant information.
 Housing Development Experience.
New Construction, Acquisition With       State whether the project is
 Rehabilitation, or the Revitalization,   new construction or
 Repair, and Transfer (as stipulated in   acquisition with
 7 CFR 3560.406) of Existing Direct       rehabilitation. Transfer
 Section 515 Housing or MPR.              costs, including equity
                                          payments, are subject to
                                          Agency approval and must be an
                                          eligible use of loan proceeds
                                          in 7 CFR 3565.205.
Project Location Town or City..........  Town or city in which the
                                          project is located.
Project County.........................  County in which the project is
                                          located.
Project State..........................  State in which the project is
                                          located.
Project Zip Code.......................  Insert zip code.

[[Page 30645]]

 
Project Congressional District.........  Congressional District for
                                          project location.
Project Name...........................  Insert project name.
Project Type...........................  Family, senior (all residents
                                          55 years or older), or mixed.
Property Description and Proposed        Provide as an attachment.
 Development Schedule.
Total Project Development Cost.........  Enter amount for total project.
 of Units.....................  Insert the  of units
                                          in the project.
Ratio of 3-5 bedroom units to total      Insert percentage of 3-5
 units.                                   bedroom units to total units.
Cost Per Unit..........................  Total development cost divided
                                          by  of units.
Rent...................................  Proposed rent structure.
Median Income for Community............  Provide median income for the
                                          community.
Evidence of Site Control...............  Attach relevant information.
Description of Any Environmental Issues  Attach relevant information.
Loan Amount............................  Insert the loan amount.
Borrower's Proposed Equity.............  Insert amount and source.
Tax Credits............................  Have tax credits been awarded?
                                         If tax credits were awarded,
                                          submit a copy of the award
                                          NOFA/evidence of award with
                                          your response.
                                         If not, when do you anticipate
                                          an award will be made
                                          (announced)?
                                         What is the [estimated] value
                                          of the tax credits?
                                         Letters of application and
                                          commitment letters should be
                                          included, if available.
Other Sources of Funds.................  List all funding sources other
                                          than tax credits and amounts
                                          for each source, type, rates
                                          and terms of loans or grant
                                          funds.
Loan to Total Development Cost.........  Guaranteed loan divided by the
                                          total development costs of
                                          project.
Debt Coverage Ratio....................  Net Operating Income divided by
                                          debt service payments.
Percentage of Guarantee................  Percentage guarantee requested.
Collateral.............................  Attach relevant information.
Colonia, Tribal Lands, or..............  Colonia, on an Indian
State's Consolidated Plan or State        Reservation, or
 Needs Assessment.                       in a place identified in the
                                          State's Consolidated Plan or
                                          State Needs Assessment as a
                                          high need community for multi-
                                          family housing.
Is the Property Located in a Federally   If yes, please provide
 Declared Disaster Area.                  documentation (i.e.,
                                          Presidential Declaration
                                          document).
Population.............................  Provide the population of the
                                          county, city, or town where
                                          the project is or will be
                                          located.
What type of guarantee is being          Enter the type of guarantee.
 requested, Permanent only (Option 1),
 Construction and Permanent (Option 2)
 or Continuous (Option 3)?.
Loan Term..............................  Minimum 25-year term.
                                         Maximum 40-year term (includes
                                          construction period).
                                         May amortize up to 40 years.
                                         Balloon mortgages permitted
                                          after the 25th year.
------------------------------------------------------------------------

     (3) The Proposed Borrower
    (a) Lender certification that the borrower or principals of the 
owner are not barred from participating in Federal housing programs and 
are not delinquent on any Federal debt.
    (b) Borrower's unaudited or audited financial statements.
    (c) Statement of borrower's housing development experience.
    (4) Lender Eligibility and Approval Status
    Evidence that the lender is either an approved lender for the 
purposes of the GRRHP or that the lender is eligible to apply for 
approved lender status. The lender's application for approved lender 
status can be submitted with the response but must be submitted to the 
National Office within 30 calendar days of the lender's receipt of the 
``Notice to Proceed with Application Processing'' letter.
    (5) Competitive Criteria
    Information that shows how the proposal is responsive to the 
selection criteria specified in the NOFA.

Response Review Information

    Scoring of Priority Criteria for Selection of Projects: All 2011 
responses will be scored based on the criteria set forth below to 
establish their priority for being selected for further processing. Per 
7 CFR 3565.5 (b), priority will be given to projects: in smaller rural 
communities, in the most needy communities having the highest 
percentage of leveraging, having the lowest interest rate, or having 
the highest ratio of 3-5 bedroom units to total units. In addition, 
priority points will be given for projects involved in the Agency's MPR 
or projects that are participating in specified energy efficient 
programs.
    The six priority scoring criteria for projects are listed below.
    Priority 1--Projects located in eligible rural communities with the 
lowest populations will receive the highest points.

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

    Priority 2--The neediest communities as determined by the median 
income from the most recent census data published by the United States 
Department of Housing and Urban Development (``HUD''), will receive 
points. The Agency will allocate points to projects located in 
communities having the lowest median income. Points for median income 
will be awarded as follows:

------------------------------------------------------------------------
                    Median income (dollars)                       Points
------------------------------------------------------------------------
Less than $45,000..............................................       20
$45,000--less than $55,000.....................................       15
$55,000--less than $65,000.....................................       10
$65,000--less than $75,000.....................................        5
$75,000 or more................................................        0
------------------------------------------------------------------------

    Priority 3--Projects that demonstrate partnering and leveraging in 
order to develop the maximum number of units

[[Page 30646]]

and promote partnerships with state and local communities will also 
receive points. Points will be awarded as follows:

------------------------------------------------------------------------
      Loan to total development cost ratio (percentage %)         Points
------------------------------------------------------------------------
Less than 50...................................................       30
Less than 70--50...............................................       10
70 or more.....................................................        0
------------------------------------------------------------------------

    Priority 4--The USDA Rural Development will award points to 
projects with the highest ratio of 3-5 bedroom units to total units as 
follows:

------------------------------------------------------------------------
           Ratio of 3-5 bedroom units to total units              Points
------------------------------------------------------------------------
More than 50%..................................................       10
21%--50%.......................................................        5
Less than 21%-more than 0%.....................................        1
------------------------------------------------------------------------

    Priority 5--NOFA responses for the revitalization, repair, and 
transfer (as stipulated in 7 CFR 3560.406) of existing direct section 
515 housing and properties involved in the Agency's MPR program 
(transfer costs, including equity payments, are subject to Agency 
approval and must be an eligible use of loan proceeds listed in 7 CFR 
3565.205) will receive an additional 10 points.
    Priority 6--Projects that are energy-efficient and certified by the 
following programs will receive twenty (20) additional points:
    (1) Green Communities sponsored by The Enterprise Foundation 
(http://www.enterprisefoundation.org) or
    (2) LEED for Homes Program by the U.S. Green Builders (USGBC) 
(http://www.usgbc.org) or
    (3) National Association of Home Builders (NAHB) ICC 700-2008 
National Green Building Standard \TM\ (http://www.nahb.org) or
    (4) Any other program, specific to a state or region that is 
similar to the above three and is approved by the Agency.
    Notifications: Responses will be reviewed for completeness and 
eligibility. The USDA Rural Development will notify those lenders whose 
responses are selected via a Notice to Proceed with Application 
Processing letter. The USDA Rural Development will request lenders 
without GRRHP lender approval to apply for GRRHP lender approval within 
30 days upon receipt of notification of selection.
    Lenders will also be invited to submit a complete application to 
the USDA Rural Development State Office where the project is located.
    Submission of GRRHP Applications: Notification letters will 
instruct lenders to contact the USDA Rural Development State Office 
immediately following notification of selection to schedule required 
agency reviews.
    USDA Rural Development State Office staff will work with lenders in 
the development of an application package. The deadline for the 
submission of a complete application is 90 days from the date of 
notification of response selection. If the application is not received 
by the appropriate State Office within 90 days from the date of 
notification, the selection is subject to cancellation, thereby 
allowing another response that is ready to proceed with processing to 
be selected. The Agency may extend this 90-day deadline for receipt of 
an application at its own discretion.

Award Administration Information

    Obligation of Program Funds: The Agency will only obligate funds to 
projects that meet the requirements for obligation under 7 CFR part 
3565 and this NOFA, including having undergone a satisfactory 
environmental review in accordance with the National Environmental 
Protection Act (NEPA) and completed Form RD 3565-1 for the selected 
project.
    The Agency will prioritize the obligation requests using the 
highest score and the procedures outlined as follows. The Agency will 
select the responses that meet eligibility criteria and invite lenders 
to submit complete applications to the Agency. Once a complete 
application is received and approved, the Agency's State Office will 
submit a request to obligate funds to the Agency's National Office. 
Starting on the Friday following the date the annual appropriation bill 
has passed, obligation requests submitted to the National Office will 
be accumulated, but not obligated throughout the week until midnight 
Eastern Time every Thursday. To the extent that funds remain available, 
the Agency will obligate the requests accumulated through the weekly 
request deadline of the previous week by the following Tuesday (i.e., 
requests received from Friday, May 13, 2011, to Thursday, May 19, 2011, 
will be obligated by Tuesday, May 24, 2011). In the event of a tie, 
priority will be given to the request for the project that: 1st--has 
the highest percentage of leveraging (lowest Loan to Cost) and in the 
event there is still a tie;--is in the smaller rural community.
    Conditional Commitment: Once the required documents for obligation 
are received and all NEPA and regulatory requirements have been met, 
the USDA Rural Development State Office will issue a conditional 
commitment, which stipulates the conditions that must be fulfilled 
before the issuance of a guarantee, in accordance with 7 CFR 3565.303.
    Issuance of Guarantee: The USDA Rural Development Office will issue 
a guarantee to the lender for a project in accordance with 7 CFR 
3565.303. No guarantee can be issued without a complete application, 
review of appropriate certifications, satisfactory assessment of the 
appropriate level of environmental review, and the completion of any 
conditional requirements.

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, 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: May 18, 2011.
Tammye H. Trevi[ntilde]o,
Administrator, Rural Housing Service.
[FR Doc. 2011-13012 Filed 5-25-11; 8:45 am]
BILLING CODE 3410-XV-P