[Federal Register Volume 77, Number 24 (Monday, February 6, 2012)]
[Pages 5760-5767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2539]



Rural Housing Service

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

AGENCY: Rural Housing Service, USDA.



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) 2012. The Consolidated and Further 
Continuing Appropriations Act, 2012 (Pub. L. 112-55) (November 18, 
2011) (2012 Appropriations Act) provides FY 2012 funding for the 
section 538 program at $130,000,000. The commitment of program dollars 
will be made first to approved and complete applications from prior 
years notices, then to applicants of selected responses in the order 
they are ranked under this notice 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 Notice, 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 

DATES: Eligible responses to this notice will be accepted until 
December 31, 2012, 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 notice that are deemed eligible 
for further processing after September 30, 2012, will be funded to the 
extent an appropriation act provides funding for GRRHP for FY 2013 and 
will be subject to any additional limitations that may be in the FY 
2013 NOFA.
    Eligible lenders mailing a response or application must provide 
sufficient time to permit delivery to the appropriate submission 
address below 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 

    Note:  Telephone numbers listed are not toll-free.

Alabama State Office, Sterling Centre, Suite 601, 4121 Carmichael 
Road, Montgomery, AL 36106-3683, (334) 279-3400, TDD (334) 279-3495.
Alaska State Office, 800 West Evergreen, Suite 201, Palmer, AK 
99645-6539, (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, Denver Federal Center, Building 56, Room 
2300, PO Box 25426, Denver, CO 80255-0426, (720) 544-2903, TDD (720) 
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) 
Georgia State Office, Stephens Federal Building, 355 E. Hancock 
Avenue--Stop 307, Athens, GA 30601-2768, (706) 546-2162, TDD (706) 
Hawaii State Office, (Services all Hawaii, American Samoa, Guam, and 

[[Page 5761]]

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) 378-5630, 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-
Michigan State Office, 3001 Coolidge Road, Suite 200, East Lansing, 
MI 48823, (517) 324-5190, TDD (800) 649-3777.
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-
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, (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) 787-7784.
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 13202-2541, (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, PO Box 1737, Bismarck, ND 58502, (701) 530-2061, TDD (701) 
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 (717) 237-2261.
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.
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, PO 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-S, STOP 0781, 
1400 Independence Avenue SW., Washington, DC 20250-0781. Email: 
[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-


    Federal Agency: Rural Housing Service.
    Solicitation Opportunity Title: Guaranteed Multi-Family Housing 
    Announcement Type: Initial Solicitation Announcement.
    Catalog of Federal Domestic Assistance: 10.438.
    Dates: Response Deadline: December 31, 2012, 12:00 p.m. Eastern 

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/Handbooks.html. 
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 NOFA 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 Notice. 
Prior years Notice responses that were selected by the Agency, with a 
complete application 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 FY 2012 program dollars 
without having to complete a FY 2012 response. A complete application 
includes all Federal environmental documents required by 7 CFR part 
1940, subpart G, and a Form RD 3565-1 ``Application for Loan and 
Guarantee.'' Any approved applications originating from FY 2011 and 
previous fiscal years' (``outstanding prior years approved 
applications'') that are obligated in FY 2012, however, are subject to 
``PROGRAM FEES FOR FY 2012'' in this Notice. Outstanding prior

[[Page 5762]]

years approved applications will be obligated to the extent of 
available funding in order of priority score with the highest scores 
obligated first. The scores the applications received under the NOFA 
the year the application was submitted will be used for the ranking. In 
the case of tied scores, the project with the greatest leveraging 
(lowest loan to cost ratio) will receive selection priority. Once the 
outstanding prior years approved applications have been funded, the 
Agency will select FY 2012 responses for further processing in rank 
order as determined by the scoring criteria set forth in this Notice 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 Sec.  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 Multi-Family Preservation and 
Revitalization (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 2012 
funding level through August 31, 2012. 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, 2012, if funding is available.
    If there is funding available after August 31, 2012, funding 
requests for transfers of existing 515 properties involving equity 
payments will be selected for obligation according to the selection 
criteria stipulated in the ``OBLIGATION OF PROGRAM FUNDS'' section of 
this Notice. 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 loan guarantees exclusively 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 Partnerships 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: All new multi-family housing projects financed 
in whole or in part by the USDA, are 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 7 under the ``Scoring of Priority Criteria for Selection of 
Projects'' section of this notice, may receive a maximum of 25 
additional points added to their project score. Participation in these 
nationwide initiatives is voluntary, but strongly encouraged.
    Interest Credit: The 2012 Appropriations Act did not fund interest 
    Program Fees for FY 2012: The 2012 Appropriations Act provides: 
``That to support the loan program level for section 538 guaranteed 
loans made available under this heading the Secretary may charge or 
adjust any fees to cover the projected cost of such loan guarantees 
pursuant to the provisions of the Credit Reform Act of 1990 (2 U.S.C. 
661 et seq), and the interest on such loans may not be subsidized.''
    The following fees have been determined necessary to cover the 
projected cost of such loan guarantees for FY 2012. These fees may be 
adjusted in future years to cover the projected costs of loan 
guarantees in those future years or additional fees may be charged. 
These fees are also applicable to all outstanding prior years responses 
funded with FY 2012 funds. The fees are as follows:
    1. Initial guarantee fee. The Agency will charge an initial 
guarantee fee equal to one percent (1%) of the guarantee principal 
amount. For purposes of calculating this fee, the guarantee amount is 
the product of the percentage of the guarantee times the initial 
principal amount of the guaranteed loan.
    2. Annual guarantee fee. An annual guarantee fee of 50 basis points 
(one-half percent) of the outstanding principal amount of the loan as 
of December 31 will be charged each year or portion of a year that the 
guarantee is outstanding.
    3. As permitted under 7 CFR 3565.302(b)(5) there is a non-
refundable service fee of $1,500 for the review and approval of a 
lender's first request to extend the term of a guarantee commitment 
beyond its original expiration (the request must be received by the 
Agency prior to the commitment's expiration). For any subsequent 
extension request, the fee will be $2,500.
    4. As permitted under 7 CFR 3565.302(b)(5) there is a non-
refundable service fee of $3,500 for the review and approval of a 
lender's first request to reopen an application when a commitment has 
expired. For any subsequent extension request to reopen an application 
after the commitment has expired, the fee will be $3,500.
    5. As permitted under 7 CFR 3565.302(b)(4) there is a non-
refundable service fee of $1,500 in connection with a lender's request 
to approve the transfer of property or a change in composition of the 
ownership entity.
    6. There is no lender application fee for lender approval.
    7. There is no surcharge for the guarantee of construction 

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 that section 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 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

[[Page 5763]]

GRRHP Origination and Servicing Handbook (HB-1-3565) found at http://www.rurdev.usda.gov/Handbooks.html#hbw6 (and available in any local RD 
    Lenders that have received GRRHP lender approval that remain 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-
S, 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 Notice. 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 this Notice 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 

(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 

                                             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
Mailing Address                          Lender's complete mailing
Phone                           Phone  for lender
Fax                             Insert lender's fax .
Email Address                            Insert lender contact email
Borrower Name and Organization Type      State whether borrower is a
                                          Limited Partnership,
                                          Corporation, Indian Tribe,
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
Borrower Phone , fax number     Insert borrower's phone , fax number and email
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.

[[Page 5764]]

Borrower Information and Statement of    Attach relevant information.
 Housing Development Experience
New Construction, Acquisition With       State whether the project is
 Rehabilitation                           new construction or
                                          acquisition with
Revitalization, Repair, and Transfer     Yes or No (Transfer costs,
 (as stipulated in 7 CFR Sec.             including equity payments, are
 3560.406) of Existing Direct Section     subject to Agency approval and
 515 Housing or MPR                       must be an eligible use of
                                          loan proceeds in 7 CFR Sec.
Project Location Town or City            Town or city in which the
                                          project is located.
Project County                           County in which the project is
Project State                            State in which the project is
Project Zip Code                         Insert zip code.
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
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/
                                          evidence of award with your
                                         If not, when do you anticipate
                                          an award will be made
                                         What is the [estimated] value
                                          of the tax credits?
                                         Letters of application and
                                          commitment letters should be
                                          included, if available.

[[Page 5765]]

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
Loan to Total Development Cost           Guaranteed loan divided by the
                                          total development costs of
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 State's        Colonia, on an Indian
 Consolidated Plan or State Needs         Reservation, or in a place
 Assessment                               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
Population                               Provide the population of the
                                          county, city, or town where
                                          the project is or will be
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.
Participation in Energy Efficient        Initial checklist indicating
 Programs                                 prerequisites to register for
                                          participation in a particular
                                          energy efficient program. All
                                          checklists must be accompanied
                                          by a signed affidavit by the
                                          project architect stating that
                                          the goals are achievable. If
                                          property management is
                                          certified for green property
                                          management, the certification
                                          must be provided.

(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 this notice.

Response Review Information

    Scoring of Priority Criteria for Selection of Projects: All 2012 
responses will be scored based on the criteria set forth below to 
establish their priority 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, as permitted in 7 CFR 
3565.5(b), in order to meet important program goals, priority points 
will be given for projects that include low income housing tax credit 
(LIHTC) funding, Section 515 projects with no equity payments and 
projects that are participating in specified energy efficient programs.
    The seven 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........................................................       30
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

[[Page 5766]]

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 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 25...................................................       60
Less than 50 to 25.............................................       30
Less than 70 to 50.............................................       10
70 or more.....................................................        0

    Priority 4--Responses that include equity from low income housing 
tax credits will receive an additional 50 points.
    Priority 5--The USDA Rural Development will award points to 
projects with the highest ratio of 3-5 bedroom units to total units as 

           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 6--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 Sec.  
3565.205) will receive an additional 10 points. If the transfer of 
existing section 515 properties includes equity payments, 0 points will 
be awarded.
    Priority 7--Energy-Efficiency
    (A) Projects that are energy-efficient and registered for 
participation in the following programs will receive points as 
indicated up to a maximum of 25 points. Each program has an initial 
checklist indicating prerequisites for participation. Each applicant 
must provide a checklist establishing that the prerequisites for each 
program's participation will be met. Additional points will be awarded 
for checklists that achieve higher levels of energy efficiency 
certification as set forth below. All checklists must be accompanied by 
a signed affidavit by the project architect stating that the goals are 
achievable. Points will be awarded for the listed programs as follows:
     Energy Star for Homes--5 points;
     Green Communities by the Enterprise Community Partners 
(http://www.enterprisefoundation.org)--10 points;
     LEED for Homes program by the U.S. Green Building Council 
(USGBC) (http://www.usgbc.org)--Certified (10 points), Silver (12 
points), Gold (15 points), or Platinum (25 points);
     National Association of Home Builders (NAHB) ICC 700-
2008--National Green Building Standard\TM\ (http://www.nahb.org)
    Bronze (10 points), Silver (12 points), Gold (15 points), or 
Emerald (25 points); or
     A state or local green building program--20 points
    (B) Projects that will be managed by a property management company 
that are certified green property management companies will receive 5 
    Applicants must provide proof of certification. Certification may 
be achieved through one of the following programs:
     National Apartment Association, Credential for Green 
Property Management (CGPM); www.naahq.org/EDUCATION/DESIGNATIONPROGRAMS/OTHER/Pages/default.asp;
     National Affordable Housing Management Association 
(NAHMA), Credential for Green Property Management (CGPM); 
www.nahma.org/content/greencred.html; or
     U.S. Green Building Council (USGBC), Green Building 
Certification Institute (GBCI) LEED AP (any discipline) or LEED Green 
Associate; www.gbci.org.
    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 calendar days from the date 
of notification of response selection. If the application is not 
received by the appropriate State Office within 90 calendar 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 3565 and 
this Notice, 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 State Office will submit a 
request to obligate funds to the National Office. In the event of a 
tie, priority will be given to the request for the project that: 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

[[Page 5767]]

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: January 27, 2012.
Tammye H. Trevi[ntilde]o,
Administrator, Rural Housing Service.


[FR Doc. 2012-2539 Filed 2-3-12; 8:45 am]