[Federal Register Volume 77, Number 138 (Wednesday, July 18, 2012)]
[Notices]
[Pages 42258-42265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-17462]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Funding Availability (NOFA) of Applications for Section 
514 Farm Labor Housing Loans and Section 516 Farm Labor Housing Grants 
for Off-Farm Housing for Fiscal Year (FY) 2012

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the timeframe to submit pre-applications 
for Section 514 Farm Labor Housing (FLH) loans and Section 516 FLH 
grants for the construction of new off-farm FLH units and related 
facilities for domestic farm laborers and for the purchase and 
substantial rehabilitation of an existing non-farm labor housing (FLH) 
property. The intended purpose of these loans and grants is to increase 
the number of available housing units for domestic farm laborers. This 
Notice describes the method used to distribute funds, the application 
process, and submission requirements.

DATES: The deadline for receipt of all applications in response to this 
Notice is 5:00 p.m., local time to the appropriate Rural Development 
State Office on September 17, 2012. The application closing deadline is 
firm as to date and hour. Rural Development will not consider any 
application that is received after the closing deadline unless date and 
time is extended by another Notice published in the Federal Register. 
Applicants intending to mail applications must provide sufficient time 
to permit delivery on or before the closing deadline. Acceptance by a 
post office or private mailer does not constitute delivery. Facsimile 
(FAX) and postage due applications will not be accepted.
    Applicants wishing to apply for assistance must contact the Rural 
Development State Office serving the State of the proposed off-farm 
labor housing project in order to receive further information and 
copies of the application package. Rural Development will date and time 
stamp incoming applications to evidence timely receipt and, upon 
request, will provide the applicant with a written acknowledgment of 
receipt. A listing of Rural Development State Offices, their addresses, 
telephone numbers, and person to contact is under Section VII of this 
Notice.

FOR FURTHER INFORMATION CONTACT: Mirna Reyes-Bible, Finance and Loan 
Analyst, Multi-Family Housing Preservation and Direct Loan Division, 
STOP 0781 (Room 1243-S), USDA, Rural Development, 1400 Independence 
Avenue SW., Washington, DC 20250-0781, telephone: (202) 720-1753 (This 
is not a toll free number), or via email: 
[email protected]. If you have questions regarding Net Zero 
Energy Consumption and Energy Generation please contact Carlton 
Jarratt, Finance and Loan Analyst, Multi-Family Housing Preservation 
and Direct Loan Division at (804) 287-1524 or via email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The reporting requirements contained in this Notice have been 
approved by the Office of Management and Budget under Control Number 
0575-0189.

Overview Information

    Federal Agency Name: Rural Development.
    Funding Opportunity Title: NOFA for Section 514 Farm Labor Housing 
Loans and Section 516 Farm Labor Housing Grants for Off-Farm Housing 
for Fiscal Year 2012.
    Announcement Type: Initial Notice inviting applications from 
qualified applicants for Fiscal Year 2012.

Catalog of Federal Domestic Assistance Numbers (CFDA): 10.405 and 
10.427.

DATES: The deadline for receipt of all applications in response to this 
is 5 p.m., local time to the appropriate Rural Development State Office 
on September 17, 2012. The application closing deadline is firm as to 
date and hour. Rural Development will not consider any application that 
is received after the closing deadline unless the date and time is 
extended by another Notice published in the Federal Register. 
Applicants intending to mail applications must provide sufficient time 
to permit delivery on or before the closing deadline. Acceptance by a 
post office or private mailer does not constitute delivery. Facsimile 
(FAX) and postage due applications will not be accepted.

I. Funding Opportunities Description

    The funds available for FY 2012 Off-Farm Labor Housing are 
$20,790,629.57 for Section 514 loans, up to $7,100,000 for Section 516 
grants, and $2,500,000 for FLH Rental Assistance.

II. Award Information

    Applications for FY 2012 will only be accepted through the date and 
time listed in this Notice. Depending on the feasibility of the loan 
underwriting, final loan and grant levels may fluctuate from the 
initial amount considered with

[[Page 42259]]

the pre-application, and all awards are subject to availability of 
funding. Once the Agency has committed 70 percent of the available FY 
2012 program funds to new construction applications, no further funding 
will be available for new construction applications until after August 
31, 2012. If funding is available after August 31, 2012, then new 
construction applications will be considered and compete for funding 
using this NOFA's scoring criteria without regard to the aforementioned 
funding limitations. Individual requests may not exceed $3 million 
(total loan and grant). No State may receive more than 30 percent of 
available FLH funding distributed in FY 2012. If there are insufficient 
applications from around the country to exhaust Sections 514 and 516 
funds available, the Agency may then exceed the 30 percent cap per 
State. Section 516 off-farm FLH grants may not exceed 90 percent of the 
total development cost (TDC) of the housing as defined in 7 CFR part 
3560.11. Applicants that will use leveraged funding must include in the 
pre-application written evidence from the third-party funder that an 
application for those funds has been submitted and accepted. If 
leveraged funds are in the form of tax credits, the applicant must 
include in its pre-application written evidence that a tax credit 
application has been submitted and accepted by the Housing Finance 
Agency (HFA). Applications that will receive leveraged funding must 
have firm commitments in place for all of the leveraged funding within 
12 months of the issuance of a ``Notice of Preapplication Review 
Action,'' Handbook Letter 103 (3060).
    Rental Assistance and operating assistance will be available for 
new construction in FY 2012. Operating assistance is explained at 7 CFR 
part 3560.574 and may be used in lieu of tenant-specific rental 
assistance (RA) in off-farm labor housing projects that serve migrant 
farm workers as defined in 7 CFR part 3560.11 that are financed under 
section 514 or section 516(h) of the Housing Act of 1949, as amended 
(42 U.S.C. 1484 and 1486(h) respectively), and otherwise meet the 
requirements of 7 CFR part 3560.574. Owners of eligible projects may 
choose tenant-specific RA or operating assistance, or a combination of 
both; however, any tenant or unit assisted with operating assistance 
may not also receive RA.

III. Eligibility Information

A. Housing Eligibility

    Housing that is constructed with FLH loans and/or grants must meet 
Rural Development's design and construction standards contained in 7 
CFR part 1924, subparts A and C. Once constructed, off-farm FLH must be 
managed in accordance with 7 CFR part 3560. In addition, off-farm FLH 
must be operated on a non-profit basis and tenancy must be open to all 
qualified domestic farm laborers, regardless at which farm they work. 
Section 514(f)(3) of the Housing Act of 1949, as amended (42 U.S.C. 
1484(f)(3)) defines domestic farm laborers to include any person 
regardless of the person's source of employment, who receives a 
substantial portion of his or her income from the primary production of 
agricultural or aquacultural commodities in the unprocessed or 
processed stage, and also includes the person's family.

B. Tenant Eligibility

    Tenant eligibility is limited to persons who meet the definition of 
a ``disabled domestic farm laborer,'' or ``a domestic farm laborer,'' 
or ``retired domestic farm laborer,'' as defined in 7 CFR Section 
3560.11. Farm workers who are admitted to this country on a temporary 
basis under the Temporary Agricultural Workers (H-2A Visa) program are 
not eligible to occupy Section 514/516 off-farm FLH.

C. Applicant Eligibility

    1. To be eligible to receive a Section 516 grant for off-farm FLH, 
the applicant must be a broad-based nonprofit organization, including 
community and faith-based organizations, a nonprofit organization of 
farm workers, a federally recognized Indian tribe, an agency or 
political subdivision of a State or local government, or a public 
agency (such as a housing authority). The applicant must be able to 
contribute at least one-tenth of the TDC from non-Rural Development 
resources which can include leveraged funds.
    2. To be eligible to receive a Section 514 loan for off-farm FLH, 
the applicant must be a broad-based nonprofit organization, including 
community and faith-based organizations, a nonprofit organization of 
farm workers, a federally recognized Indian tribe, an agency or 
political subdivision of a State or local government, a public agency 
(such as a housing authority), or a limited partnership which has a 
nonprofit entity as its general partner, and
    i. Be unable to provide the necessary housing from its own 
resources; and
    ii. Except for State or local public agencies and Indian tribes, be 
unable to obtain similar credit elsewhere at rates that would allow for 
rents within the payment ability of eligible residents.
    iii. Broad-based nonprofit organizations must have a membership 
that reflects a variety of interests in the area where the housing will 
be located.

IV. Administrative Requirements

A. Cost Sharing or Matching

    Section 516 grants for off-farm FLH may not exceed the lesser of 90 
percent of the TDC as provided in 7 CFR 3560.562(c)(1).

B. Other Requirements

    The following requirements apply to loans and grants made in 
response to this Notice:
    1. 7 CFR part 1901, subpart E, regarding equal opportunity 
requirements;
    2. For grants only, 7 CFR part 3015, 3016 or 3019 (as applicable) 
and 7 CFR 3052, which establishes the uniform administrative and audit 
requirements for grants and cooperative agreements to State and local 
governments and to nonprofit organizations;
    3. 7 CFR part 1901, subpart F, regarding historical and 
archaeological properties;
    4. 7 CFR part 1940, subpart G, regarding environmental assessments;
    5. 7 CFR part 3560, subpart L, regarding the loan and grant 
authorities of the off-farm FLH program;
    6. 7 CFR part 1924, subpart A, regarding planning and performing 
construction and other development;
    7. 7 CFR part 1924, subpart C, regarding the planning and 
performing of site development work;
    8. For construction financed with a Section 516 grant, the 
provisions of the Davis-Bacon Act (40 U.S.C. 276(a)-276(a)(5) and 
implementing regulations published at 29 CFR parts 1, 3, and 5;
    9. All other requirements contained in 7 CFR part 3560, regarding 
the section 514/516 off-farm FLH program; and
    10. Please note that grant applicants must obtain a Dun and 
Bradstreet Data Universal Numbering System (DUNS) number and maintain 
registration in the Central Contractor Registration (CCR) prior to 
submitting a pre-application pursuant to 2 CFR part 25.200(b). In 
addition, an entity applicant must maintain registration in the CCR 
database at all times during which it has an active Federal award or an 
application or plan under construction by the Agency. Similarly, all 
recipients of Federal financial assistance are required to report 
information about first-tier sub-awards and executive compensation in 
accordance with 2 CFR part 170. So long as an entity applicant does not 
have an exception under 2 CFR part 170.110(b), the applicant must have

[[Page 42260]]

the necessary processes and systems in place to comply with the 
reporting requirements should the applicant receive funding. See 2 CFR 
part 170.200(b).

V. Application and Submission Information

A. Pre-Application Submission

    The application process will be in two phases: The initial pre-
application (or proposal) and the submission of a final application. 
Only those pre-applications or proposals that are selected for further 
processing will be invited to submit final applications. In the event 
that a proposal is selected for further processing and the applicant 
declines, the next highest ranked unfunded pre-application may be 
selected for further processing. All pre-applications for Sections 514 
and 516 funds must be filed with the appropriate Rural Development 
State Office and must meet the requirements of this Notice. Incomplete 
pre-applications will not be reviewed and will be returned to the 
applicant. No pre-application will be accepted after 5:00 p.m., local 
to the appropriate Rural Development State Office on September 17, 2012 
unless date and time are extended by another Notice published in the 
Federal Register.
    Pre-applications can be submitted either electronically using the 
FLH Pre-application form found at: [http://www.rurdev.usda.gov/HAD-Farm_Labor_Grants.html] or in hard copy obtained from and submitted 
to the appropriate Rural Development Office where the project will be 
located. Applicants are strongly encouraged, but not required, to 
submit the pre-application electronically. The electronic form contains 
a button labeled ``Send Form.'' By clicking on the button, the 
applicant will receive an email with an attachment that includes the 
electronic form the applicant filled out as a data file with a .PDF 
extension. In addition, an auto-reply acknowledgement will be sent to 
the applicant when the electronic Loan Proposal form is received by the 
Agency unless the sender has software that will block the receipt of 
the auto-reply email. The State Office will record pre-applications 
received electronically by the actual date and time when all attachment 
are received at the State Office.
    Submission of the electronic section 514 Loan Proposal form does 
not constitute submission of the entire proposal package which requires 
additional forms and supporting documentation as listed within this 
Notice. You may use one of the following three options for submitting 
the entire proposal package comprising of all required forms and 
documents. On the Loan Proposal form you can indicate the option you 
will be using to submit each required form and document.
    (1) Electronic Media Option. Submit all forms and documents as 
read-only Adobe Acrobat files on electronic media such as CDs, DVDs, or 
USB drives. For each electronic device submitted, the applicant should 
include a Table of Contents of all documents and forms on that device. 
The electronic media should be submitted to the Rural Development State 
Office listed in this Notice where the property is located. Any forms 
and documents that are not sent electronically, including the check for 
credit reports, must be mailed to the Rural Development State Office.
    (2) Email Option. On the Loan Proposal form you will be asked for a 
Submission Email Address. This email address will be used to establish 
a folder on the USDA server with your unique email address. Once the 
Loan Proposal form is processed, you will receive an additional email 
notifying you of the email address that you can use to email your forms 
and documents. Please Note: All forms and documents must be emailed 
from the same Submission Email Address. This will ensure that all forms 
and documents that you send will be stored in the folder assigned to 
that email address. Any forms and documents that are not sent in via 
the email option must be submitted on an electronic media or in hard 
copy form to the Rural Development State Office.
    (3) Hard Copy Submission to the Rural Development State Office. If 
you are unable to send the proposal package electronically using either 
of the options listed above, you may send a hard-copy of all forms and 
documents to the USDA Rural Development State Office where the property 
is located. Hard copy pre-applications received on or before the 
deadline date will receive the close of business time of the day 
received as the receipt time. Hard copy pre-applications must be 
received by the submission deadline and no later than 5:00 p.m., local 
time, September 17, 2012. Assistance for filling electronic and hard 
cop pre-applications can be obtained from any Rural Development State 
Office.
    For electronic submissions, there is a time delay between the time 
it is sent and the time it is received depending on network traffic. As 
a result, last-minute submissions sent before the deadline date and 
time could well be received after the deadline date and time because of 
the increased network traffic. Applicants are reminded that all 
submissions received after the deadline date and time will be rejected, 
regardless of when they were sent.
    If you receive a loan or grant award under this NOFA, USDA reserves 
the right to post all information not protected under the Privacy Act 
and submitted as part of the pre-application/application package on a 
public Web site with free and open access to any member of the public.
    If a pre-application is accepted for further processing, the 
applicant must submit a complete, final application, acceptable to 
Rural Development prior to the obligation of Rural Development funds. 
If the pre-application is not accepted for further processing the 
applicant will be notified of appeal rights under 7 CFR part 11.

B. Pre-Application Requirements

    1. The pre-application must contain the following:
    i. A summary page listing the following items. This information 
should be double-spaced between items and not be in narrative form.
    (a) Applicant's name.
    (b) Applicant's Taxpayer Identification Number.
    (c) Applicant's address.
    (d) Applicant's telephone number.
    (e) Name of applicant's contact person, telephone number, and 
address.
    (f) Amount of loan and grant requested.
    (g) For grants of federal financial assistance (including loans and 
grants, cooperative agreements, etc.), the applicant's Dun and 
Bradstreet Data Universal Numbering System (DUNS) number and 
registration in the Central Contractor Registration (CCR) database in 
accordance with 2 CFR part 25. As required by the Office of Management 
and Budget (OMB), all grant applicants must provide a DUNS number when 
applying for Federal grants, on or after October 1, 2003. Organizations 
can receive a DUNS number at no cost by calling the dedicated toll-free 
number at 1-866-705-5711 or via Internet at http://www.dnb.com/us/. 
Additional information concerning this requirement can be obtained on 
the Grants.gov Web Site at http://www.grants.gov. Similarly, applicants 
may register for the CCR at: https://uscontractorregistration.com or by 
calling 1-877-252-2700.
    ii. Awards made under this Notice are subject to the provisions 
contained in the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2012, O.L. No. 
112-55 Division A section 735 and 739 regarding corporate

[[Page 42261]]

felony convictions and corporate federal tax delinquencies. To comply 
with these provisions, all applicants must complete and include in the 
pre-application paragraph (a) of this representation, and all corporate 
applicants also must complete paragraph (b) and (c) of this 
representation:
    (a) Applicant ---------------- [insert applicant name] is ---- is 
not ---- (check one) an entity that has filed articles of incorporation 
in one of the fifty states, the District of Columbia, or the various 
territories of the United States including American Samoa. Federated 
States of Micronesia, Guam, Midway Islands, Northern Mariana Islands, 
Puerto Rico, Republic of Palau, Republic of the Marshall Islands, U.S. 
Virgin Islands.
    (b) Applicant ---------------- [insert applicant name] has ---- has 
not ---- (check one) has been convicted of a felony criminal violation 
under Federal or state law in the 24 months preceding the date of 
application Applicant has ---- has not ---- (check one) had any officer 
of agent of the Applicant convicted of a felony criminal violation for 
actions taken on behalf of the Applicant under Federal or state law in 
the 24 months preceding the date of the signature on the pre-
application.
    (c) Applicant ---------------- [insert applicant name] has ---- has 
not ---- (check one) any unpaid Federal tax liability that has been 
assessed, for which all judicial and administrative remedies have been 
exhausted or have lapsed, and that is not being paid in a timely manner 
pursuant to an agreement with the authority responsible for collecting 
tax liability.
    iii. A narrative verifying the applicant's ability to meet the 
eligibility requirements stated earlier in this notice. If an applicant 
is selected for further processing, Rural Development will require 
additional documentation as set forth in a Conditional Commitment in 
order to verify the entity has the legal and financial capability to 
carry out the obligation of the loan.
    iv. Standard Form 424, ``Application for Federal Assistance,'' can 
be obtained at: https://www.grants.gov or from any Rural Development 
State Office listed in Section VII of this Notice.
    v. For loan pre-applications, current (within 6 months of pre-
application date) financial statements with the following paragraph 
certified by the applicant's designated and legally authorized signer:

    I/we certify the above is a true and accurate reflection of our 
financial condition as of the date stated herein. This statement is 
given for the purpose of inducing the United States of America to 
make a loan or to enable the United States of America to make a 
determination of continued eligibility of the applicant for a loan 
as requested in the loan application of which this statement is a 
part.

    vi. For loan pre-applications, a check for $40 from applicants made 
out to United States Department of Agriculture. This will be used to 
pay for credit reports obtained by Rural Development.
    vi. Evidence that the applicant is unable to obtain credit from 
other sources. Letters from credit institutions which normally provide 
real estate loans in the area should be obtained and these letters 
should indicate the rates and terms upon which a loan might be 
provided. (Note: Not required from State or local public agencies or 
Indian tribes.)
    vii. If a FLH grant is desired, a statement concerning the need for 
a FLH grant. The statement should include preliminary estimates of the 
rents required with and without a grant.
    viii. A statement of the applicant's experience in operating labor 
housing or other rental housing. If the applicant's experience is 
limited, additional information should be provided to indicate how the 
applicant plans to compensate for this limited experience (i.e., 
obtaining assistance and advice of a management firm, non-profit group, 
public agency, or other organization which is experienced in rental 
management and will be available on a continuous basis).
    ix. A brief statement explaining the applicant's proposed method of 
operation and management (i.e., on-site manager, contract for 
management services, etc.). As stated earlier in this Notice, the 
housing must be managed in accordance with the program's management 
regulation, 7 CFR part 3560 and tenancy is limited to ``disabled 
domestic farm laborers,'' ``domestic farm laborers,'' and ``retired 
domestic farm laborers,'' as defined in 7 CFR part 3560.11.
    xi. Applicants must also provide:
    (a) A copy of, or an accurate citation to, the special provisions 
of State law under which they are organized, a copy of the applicant's 
charter, Articles of Incorporation, and By-laws;
    (b) The names, occupations, and addresses of the applicant's 
members, directors, and officers; and
    (c) If a member or subsidiary of another organization, the 
organization's name, address, and nature of business.
    xii. A preliminary market survey or market study to identify the 
supply and demand for labor housing in the market area. The market area 
must be clearly identified and may include only the area from which 
tenants can reasonably be drawn for the proposed project. Documentation 
must be provided to justify a need within the intended market area for 
the housing of ``domestic farm laborers,'' as defined in 7 CFR Section 
3560.11. The documentation must take into account disabled and retired 
farm workers. The preliminary survey should address or include the 
following items:
    (a) The annual income level of farmworker families in the area and 
the probable income of the farm workers who will likely occupy the 
proposed housing;
    (b) A realistic estimate of the number of farm workers who remain 
in the area where they harvest and the number of farm workers who 
normally migrate into the area. Information on migratory workers should 
indicate the average number of months the migrants reside in the area 
and an indication of what type of family groups are represented by the 
migrants (i.e., single individuals as opposed to families);
    (c) General information concerning the type of labor intensive 
crops grown in the area and prospects for continued demand for farm 
laborers;
    (d) The overall occupancy rate for comparable rental units in the 
area and the rents charged and customary rental practices for these 
units (i.e., will they rent to large families, do they require annual 
leases, etc.);
    (e) The number, condition, adequacy, rental rates and ownership of 
units currently used or available to farm workers;
    (f) A description of the units proposed, including the number, 
type, size, rental rates, amenities such as carpets and drapes, related 
facilities such as a laundry room or community room and other 
facilities providing supportive services in connection with the housing 
and the needs of the prospective tenants such as a health clinic or day 
care facility, estimated development timeline, estimated total 
development cost, and applicant contribution; and
    (g) The applicant must also identify all other sources of funds, 
including the dollar amount, source, and commitment status. (Note: A 
Section 516 grant may not exceed 90 percent of the total development 
cost of the housing.) The applicant must submit a checklist, 
certification, and signed affidavit by the project architect or 
engineer, as applicable, for any energy programs listed in Section IV 
the applicant intends to participate in.
    xiii. The following forms are required:
    (a) A completed Form RD 1940-20, ``Request for Environmental 
Information,'' and a description of

[[Page 42262]]

anticipated environmental issues or concerns. The form can be found at 
http://www.rurdev.usda.gov/regs/forms/1940-20.pdf.
    (b) A prepared HUD Form 935.2A, ``Affirmative Fair Housing 
Marketing Plan (AFHM) Multi-family Housing,'' in accordance with 7 CFR 
1901.203(c). The plan will reflect that occupancy is open to all 
qualified ``domestic farm laborers,'' regardless of which farming 
operation they work and that they will not discriminate on the basis of 
race, color, sex, age, disability, marital or familial status or 
National origin in regard to the occupancy or use of the units. The 
form can be found at http://www.hud.gov/offices/adm/hudclips/forms/files/935-2a.pdf.
    (c) A proposed operating budget utilizing Form RD 3560-7, 
``Multiple Family Housing Project Budget/Utility Allowance,'' can be 
found at http://www.rurdev.gov/regs/forms/3560-07.pdf.
    (d) An estimate of development cost utilizing Form RD 1924-13, 
``Estimate and Certificate of Actual Cost,'' can be found at http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1924-13.PDF.
    (e) Form RD 3560-30, ``Certification of no Identity of Interest 
(IOI),'' can be found at http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-30.PDF and Form RD 3560-31, ``Identity of 
Interest Disclosure/Qualification Certification,'' can be found at 
http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-31.PDF.
    (f) Form HUD 2530, ``Previous Participation Certification,'' can be 
found at http://www.hud.gov/offices/adm/hudclips/forms/files/2530.pdf.
    (g) If requesting RA or Operating Assistance, Form RD 3560-25, 
``Initial Request for Rental Assistance or Operating Assistance,'' can 
be found at http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-25.PDF.
    (h) Form RD 400-4, ``Assurance Agreement,'' can be found at http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD400-4.PDF. 
Applicants for revitalization, repair, and rehabilitation funding are 
to apply through the Multi-Family Housing Revitalization Demonstration 
Program (MPR).
    (i) Evidence of compliance with Executive Order 12372. The 
applicant must send a copy of Form SF-424 to the applicant's state 
clearinghouse for intergovernmental review. If the applicant is located 
in a state that does not have a clearinghouse, the applicant is not 
required to submit the form.
    xiv. Evidence of site control, such as an option contract or sales 
contract. In addition, a map and description of the proposed site, 
including the availability of water, sewer, and utilities and the 
proximity to community facilities and services such as shopping, 
schools, transportation, doctors, dentists, and hospitals.
    xv. Preliminary plans and specifications, including plot plans, 
building layouts, and type of construction and materials. The housing 
must meet Rural Development's design and construction standards 
contained in 7 CFR part 1924, subparts A and C and must also meet all 
applicable Federal, State, and local accessibility standards.
    xvi. A supportive services plan, which describes services that will 
be provided on-site or made available to tenants through cooperative 
agreements with service providers in the community, such as a health 
clinic or day care facility. Off-site services must be accessible and 
affordable to farm workers and their families. Letters of intent from 
service providers are acceptable documentation at the pre-application 
stage.
    xvii. A sources and uses statement which shows all sources of 
funding included in the proposed project. The terms and schedules of 
all sources included in the project should be included in the sources 
and uses statement.
    xviii. A separate one-page information sheet listing each of the 
``Pre-Application Scoring Criteria,'' contained in this Notice, 
followed by a reference to the page numbers of all relevant material 
and documentation that is contained in the proposal that supports the 
criteria.
    xix. Applicants are encouraged, but not required, to include a 
checklist of all of the pre-application requirements and to have their 
pre-application indexed and tabbed to facilitate the review process;
    xx. Evidence of compliance with the requirements of the applicable 
State Housing Preservation Office (SHPO), and/or Tribal Historic 
Preservation Officer (THPO). A letter from the SHPO and/or THPO where 
the off-farm labor housing project is located, signed by their designee 
will serve as evidence of compliance.

VI. Pre-Application Review Information

    All applications for Sections 514 and 516 funds must be filed 
electronically or with the appropriate Rural Development State Office 
and meet the requirements of this Notice. The Rural Development State 
Office will base its determination of completeness of the application 
and the eligibility of each applicant on the information provided in 
the pre-application.
    A. Selection Criteria. Section 514 loan funds and section 516 grant 
funds will be distributed to States based on a national competition, as 
follows:
    1. Rural Development State Office will accept, review, and score 
pre-applications in accordance with this Notice. The scoring factors 
are:
    i. The presence of construction cost savings, including donated 
land and construction leverage assistance, for the units that will 
serve program-eligible tenants. The savings will be calculated as a 
percentage of the Rural Development TDC. The percentage calculation 
excludes any costs prohibited by Rural Development as loan expenses, 
such as a developer's fee. Construction cost savings includes, but is 
not limited to, funds for hard construction costs, and State or Federal 
funds which are applicable to construction costs. A minimum of ten 
percent cost savings is required to earn points; however, if the total 
percentage of cost savings is less than ten percent and the proposal 
includes donated land, two points will be awarded for the donated land. 
To count as cost savings for purposes of the selection criteria, the 
applicant must submit written evidence from the third-party funder that 
an application for those funds has been submitted and accepted points 
will be awarded in accordance with the following table using rounding 
to the nearest whole number.

------------------------------------------------------------------------
                           Percentage                             Points
------------------------------------------------------------------------
75 or more.....................................................       20
60-74..........................................................       18
50-59..........................................................       16
40-49..........................................................       12
30-39..........................................................       10
20-29..........................................................        8
10-19..........................................................        5
0-9............................................................        0
------------------------------------------------------------------------

    ii. The presence of operational cost savings, such as tax 
abatements, non-Rural Development tenant subsidies or donated services 
are calculated on a per-unit cost savings for the sum of the savings. 
Savings must be available for at least 5 years and documentation must 
be provided with the application demonstrating the availability of 
savings for 5 years. To calculate the savings, take the total amount of 
savings and divide it by the number of units in the project that will 
benefit from the savings to obtain the per unit cost savings. For non-
Rural Development tenant subsidy, if the value changes during the five-
year calculation, the applicant must use the

[[Page 42263]]

lower of the non-rural development tenant subsidy to calculate per-unit 
cost savings. For example, a 10 unit property with 100 percent 
designated farm labor housing units receiving $20,000 per year non-
rural development subsidy yields a cost savings of $100,000 ($20,000*5 
years); resulting to a $10,000 per-unit cost savings ($100,000/10 
units).
    To determine cost savings in a mixed income complex that will serve 
other income levels than farm labor housing income-eligible tenants, 
use only the number of units that will serve farm labor housing income-
eligible tenants. Round percentages to the nearest whole number, 
rounding up at 0.50 and above and down at 0.49 and below.
    Use the following table to apply points.

------------------------------------------------------------------------
                     Per-unit cost savings                        Points
------------------------------------------------------------------------
Above $15,000..................................................       20
$10,001-$15,000................................................       18
$7,501-$10,000.................................................       16
$5,001-$7,500..................................................       12
$3,501-$5,000..................................................       10
$2,001-$3,500..................................................        8
$1,000-$2,000..................................................        5
------------------------------------------------------------------------

    iii. Percent of units for seasonal, temporary, migrant housing. (5 
points for up to and including 50 percent of the units; 10 points for 
51 percent or more units used for seasonal, temporary, or migrant 
housing.)
    iv. Presence of tenant services.
    (a) Up to 10 points will be awarded based on the presence of and 
extent to which a tenant services plan exists that clearly outlines 
services that will be provided to the residents of the proposed 
project. These services may include, but are not limited to, 
transportation related services, on-site English as a Second Language 
(ESL) classes, move-in funds, emergency assistance funds, homeownership 
counseling, food pantries, after school tutoring, and computer learning 
centers.
    (b) Two points will be awarded for each resident service included 
in the tenant services plan up to a maximum of 10 points. Plans must 
detail how the services are to be administered, who will administer 
them, and where they will be administered. All tenant service plans 
must include letters of intent that clearly state the service that will 
be provided at the project for the benefit of the residents from any 
party administering each service, including the applicant.

V. Energy Initiative Properties

    (a) Energy Initiatives Properties may receive a maximum of 65 
points for energy initiatives. Projects may either be New Construction 
or Purchase and Rehabilitation of Existing Non-Farm Labor Housing 
Property. Depending on the scope of work, properties may earn ``energy 
initiative'' points in one or two categories: (1) New Construction or 
Gut Rehabilitation, or (2) General Rehabilitation. Projects will be 
eligible for one category or the two, but not both. The project 
architect's affidavit should specify which category is applicable.
    Properties in any category also may receive points for Energy 
Generation and Green Property Management.
    Energy programs including LEED for Homes, Green Communities, etc., 
will each have an initial checklist indicating prerequisites for 
participation in its energy program. The applicable energy program 
checklist will establish whether prerequisites for the energy program's 
participation will be met. All checklists must be accompanied by a 
signed affidavit by the project architect or engineer stating that the 
goals are achievable. The checklist and affidavit must be submitted 
together with the loan application.
    1. Energy Conservation for New Construction or Gut Rehabilitation 
of an Existing Building (maximum 55 points). Projects may be eligible 
for up to 55 points when the pre-application includes a written 
certification by the applicant to participate in the following energy 
efficiency programs.
    The points will be allocated as follows:
     Participation in the EPA's Energy Star for Homes V3 
program (20 points). http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.pt_bldr or
     Participation in the Green Communities program by the 
Enterprise Community Partners. (30 points) http://www.enterprisecommunity.com/solutions-and-innovation/enterprise-green-communities or
     Participation in one of the following two programs will be 
awarded points for certification.

    Note: Each program has four levels of certification. State the 
level of certification that the applicant plans will achieve in 
their certification:

     LEED for Homes program by the United States Green 
Building Council (USGBC): http://www.usgbc.org/homes.

--Certified Level (30 points), or
--Silver Level (35 points), or
--Gold Level (40 points), or
--Platinum Level (45 points), or

     The National Association of Home Builders (NAHB) ICC 
700-2008 National Green Building Standard TM: http://www.nahb.org.

--Bronze Level (30 points), or
--Silver Level (35 points), or
--Gold Level (40 points), or
--Emerald Level (45 points) and

     Participation in the Department of Energy's Builder's 
Challenge program. (8 points) http://www1.eere.energy.gov/builders/challenge/ and
     Participation in local green/energy efficient building 
standards; Applicants who participate in a city, county or 
municipality program, will receive an additional 2 points. The 
applicant should be aware of and look for additional requirements 
that are sometimes embedded in the third-party program's rating and 
verification systems. (2 points)
    2. Energy Conservation for General Rehabilitation (maximum 32 
points). Pre-applications for the purchase and substantial 
rehabilitation of non-program MFH and related facilities in rural areas 
may be eligible to receive 32 points for the following initiatives.
     Participation in the EPA's Energy Star for Homes V3 
program will be awarded 30 points for any project that qualifies for 
the program. (30 points) http://www.enterprisecommunity.com/csolutions-and-innovation/enterprise-green-communities and
    Participation in local green/energy efficient building standards; 
Applicants who participate in a city, county or municipality program, 
will receive an additional 2 points. The applicant should be aware of 
and look for additional requirements that are sometimes embedded in the 
third-party programs' rating and verification system. (2 points)
    3. Energy Generation (maximum 5 points). Pre-applications for new 
construction or purchase and rehabilitation of non-program multi-family 
projects which participate in the Energy Star for Homes V3 program, 
Green Communities, LEED for Homes or NAHB's National Green Building 
Standard (ICC-700) 2008, receive at least 8 points for energy 
generation will compliment a weatherlight, well insulated building 
envelope with highly efficient mechanical systems. Possible renewable 
energy generation technologies include, but are not limited to: Wind 
turbines and micro-turbines, micro-hydro power, and photovoltaics 
(capable of producing a voltage when exposed to radiant energy, 
especially light), solar hot water systems and biomass/biofuel systems 
that do not use fossil fuels in production. Geo-exchange systems are 
highly encouraged as they lessen the total demand for energy and, if 
supplemented with other renewable energy sources, can achieve zero 
energy consumption more easily. Points under this section will be 
awarded as follows. Projects with preliminary or rehabilitation 
building plans and energy analysis propose a 10 percent to 100 percent 
energy generation commitment

[[Page 42264]]

(where generation is considered by the total amount of energy needed to 
be generated on-site to make the building a net-zero consumer of 
energy) may be awarded points corresponding to their percent of 
commitment as follows:
    (a) 0 to 9 percent commitment to energy generation receives 0 
points;
    (b) 10 to 29 percent commitment to energy generation receives 1 
point;
    (c) 30 to 49 percent commitment to energy generation receives 2 
points;
    (d) 50 to 69 percent commitment to energy generation receives 3 
points;
    (e) 70 to 89 percent commitment to energy generation receives 4 
points;
    (f) 90 percent or more commitment to energy generation receives 5 
points. In order to receive more than 1 point for this energy 
generation section, an accurate energy analysis prepared by an engineer 
will need to be submitted with the pre-application. Energy analysis of 
preliminary building plans using industry-recognized simulation 
software must document the projected total energy consumption of the 
building, the portion of building consumption which will be satisfied 
through on-site generation, and the builder's Home Energy Rating System 
(HERS) score.
    4. Property Management Credentials (5 points). Projects may be 
awarded an additional 5 points if the designated property management 
company or individuals that will assume maintenance and operations 
responsibilities upon completion of construction work have a Credential 
for Green Property Management. Credentialing can be obtained from the 
National Apartment Association (NAA), National Affordable housing 
Management Association, the Institute for Real Estate Management, U.S. 
Green Building Council's Leadership in Energy and Environmental Design 
for Operations and Maintenance (LEED OM), or another source with a 
certifiable credentialing program. Credentialing must be illustrated in 
the resume(s) of the property management team and included with the 
pre-application.
    The National Office will rank all pre-applications nationwide and 
distribute funds to States in rank order, within funding and RA limits. 
A lottery in accordance with 7 CFR 3560.56(c) (2) will be used for 
applications with tied point scores when the all cannot be funded. If 
insufficient funds or RA remain for the next ranked proposal, that 
applicant will be given a chance to modify their pre-application to 
bring it within remaining funding levels. This will be repeated for 
each next ranked eligible proposal until an award can be made or the 
list is exhausted. Rural Development will notify all applicants whether 
their applications have been selected or rejected and provide appeal 
rights under 7 CFR part 11, as appropriate.

VII. Award Administration Information

A. Award Notices

    Loan applicants must submit their initial applications by the due 
date specified in this Notice. Once the applications have been scored 
and ranked by the National Office the National Office will advise 
States Offices of the proposals selected for further processing, State 
Offices will respond to applicants by letter.
    If the application is not accepted for further processing, the 
applicant will be notified of appeal rights under 7 CFR part 11.

B. Administrative and National Policy

    All Farm Labor Housing loans and grants are subject to the 
restrictive-use provisions contained in 7 CFR part 3560.72(a) (2).

C. Reporting

    Borrowers must maintain separate financial records for the 
operation and maintenance of the project and for tenant services. 
Tenant services will not be funded by Rural Development. Funds 
allocated to the operation and maintenance of the project may not be 
used to supplement the cost of tenant services, nor may tenant service 
funds be used to supplement the project operation and maintenance. 
Detailed financial reports regarding tenant services will not be 
required unless specifically requested by Rural Development, and then 
only to the extent necessary for Rural Development and the borrower to 
discuss the affordability (and competitiveness) of the service provided 
to the tenant. The project audit, or verification of accounts on Form 
RD 3560-10, ``Borrower Balance Sheet,'' together with an accompanying 
Form RD 3560-7, ``Multiple Family Housing Project Budget Utility 
Allowance,'' showing actual, must allocate revenue and expense between 
project operations and the service component.

IX. USDA Rural Development MFH State Office Contacts

    (Note: Telephone numbers listed are not toll-free.)

Alabama State Office
    Suite 601, Sterling Centre, 4121 Carmichael Road, Montgomery, AL 
36106-3683, (334) 279-3455, Anne Chavers.
Alaska State Office
    800 West Evergreen, Suite 201, Palmer, AK 99645, (907) 761-7723, 
Cindy Jackson.
Arizona State Office
    Phoenix Courthouse and Federal Building, 230 North First Ave., 
Suite 206, Phoenix, AZ 85003-1706, (602) 280-8764, Ernie Wetherbee.
Arkansas State Office
    700 W. Capitol Ave., Room 3416, Little Rock, AR 72201-3225, (501) 
301-3254, Jackie Young.
California State Office,
    430 G Street, 4169, Davis, CA 95616-4169, (530) 792-5821, 
Debra Moretton.
Colorado State Office
    USDA Rural Development, Denver Federal Center, Building 56, Room 
2300, P.O. Box 25426, Denver, CO 80225-0426, (720) 544-2923, Mary 
Summerfield.
Connecticut
    Served by Massachusetts State Office
Delaware and Maryland State Office
    1221 College Park Drive, Suite 200, Dover, DE 19904, (302) 857-
3615, Debra Eason.
Florida & Virgin Islands State Office
    4440 NW. 25th Place, Gainesville, FL 32606-6563, (352) 338-3465, 
Tresca Clemmons.
Georgia State Office
    Stephens Federal Building, 355 E. Hancock Avenue, Athens, GA 30601-
2768, (706) 546-2164, Jack Stanek.
Hawaii State Office
    (Services all Hawaii, American Samoa, Guam, and Western Pacific), 
Room 311, Federal Building, 154 Waianuenue Avenue, Hilo, HI 96720, 
(808) 933-8305, Nate Reidel.
Idaho State Office
    Suite A1, 9173 West Barnes Dr., Boise, ID 83709, (208) 378-5628, 
Joyce Weinzetl.
Illinois State Office
    2118 West Park Court, Suite A, Champaign, IL 61821-2986, (217) 403-
6222, Barry L. Ramsey.
Indiana State Office
    5975 Lakeside Boulevard, Indianapolis, IN 46278, (317) 290-3100 
(ext. 425), Douglas Wright.
Iowa State Office
    210 Walnut Street Room 873, Des Moines, IA 50309, (515) 284-4493, 
Shannon Chase.
Kansas State Office
    1303 SW First American Place, Suite 100, Topeka, KS 66604-4040, 
(785) 271-2721, Mike Resnik.
Kentucky State Office
    771 Corporate Drive, Suite 200, Lexington, KY 40503, (859) 224-
7325, Paul Higgins.
Louisiana State Office
    3727 Government Street, Alexandria,

[[Page 42265]]

LA 71302, (318) 473-7962, Yvonne R. Emerson.
Maine State Office
    967 Illinois Ave., Suite 4, P.O. Box 405, Bangor, ME 04402-0405, 
(207) 990-9110, Bob Nadeau.
Maryland
    Served by Delaware State Office
Massachusetts, Connecticut, & Rhode Island State Office
    451 West Street, Amherst, MA 01002, (413) 253-4310, Richard Lavoie.
Michigan State Office
    3001 Coolidge Road, Suite 200, East Lansing, MI 48823, (517) 324-
5192, Julie Putnam.
Minnesota State Office
    375 Jackson Street Building, Suite 410, St. Paul, MN 55101-1853, 
(651) 602-7820, Linda Swanson.
Mississippi State Office
    Federal Building, Suite 831, 100 W. Capitol Street, Jackson, MS 
39269, (601) 965-4325, Darnella Smith-Murray.
Missouri State Office
    601 Business Loop 70 West, Parkade Center, Suite 235, Columbia, MO 
65203, (573) 876-0987, Rachelle Long.
Montana State Office
    2229 Boot Hill Court, Bozeman, MT 59715, (406) 585-2515, Deborah 
Chorlton.
Nebraska State Office
    Federal Building, Room 152, 100 Centennial Mall N, Lincoln, NE 
68508, (402) 437-5734, Linda Anders.
Nevada State Office
    1390 South Curry Street, Carson City, NV 89703-5146, (775) 887-1222 
(ext. 105), William Brewer.
New Hampshire State Office
    Concord Center, Suite 218, Box 317, 10 Ferry Street, Concord, NH 
03301-5004, (603) 223-6050, Heidi Setien.
New Jersey State Office
    5th Floor North Suite 500, 8000 Midlantic Dr., Mt. Laurel, NJ 
08054, (856) 787-7732, Neil Hayes.
New Mexico State Office
    6200 Jefferson St. NE., Room 255, Albuquerque, NM 87109, (505) 761-
4945, Yvette Wilson.
New York State Office
    The Galleries of Syracuse, 441 S. Salina Street, Suite 357 5th 
Floor, Syracuse, NY 13202, (315) 477-6421, Michael Bosak.
North Carolina State Office
    4405 Bland Road, Suite 260, Raleigh, NC 27609, (919) 873-2055, 
Beverly Casey.
North Dakota State Office
    Federal Building, Room 208, 220 East Rosser, P.O. Box 1737, 
Bismarck, ND 58502, (701) 530-2049, Kathy Lake.
Ohio State Office
    Federal Building, Room 507, 200 North High Street, Columbus, OH 
43215-2477, (614) 255-2409, Cathy Simmons.
Oklahoma State Office
    100 USDA, Suite 108, Stillwater, OK 74074-2654, (405) 742-1070, 
Laurie Ledford.
Oregon State Office
    1201 NE Lloyd Blvd., Suite 801, Portland, OR 97232, (503) 414-3353, 
Rod Hansen.
Pennsylvania State Office
    One Credit Union Place, Suite 330, Harrisburg, PA 17110-2996, (717) 
237-2281, Martha Hanson.
Puerto Rico State Office
    654 Munoz Rivera Avenue, IBM Plaza, Suite 601, Hato Rey, PR 00918, 
(787) 766-5095 (ext. 249), Lourdes Colon.
Rhode Island
    Served by Massachusetts State Office
South Carolina State Office
    Strom Thurmond Federal Building, 1835 Assembly Street, Room 1007, 
Columbia, SC 29201, (803) 765-5122, Tim Chandler.
South Dakota State Office
    Federal Building, Room 210, 200 Fourth Street SW., Huron, SD 57350, 
(605) 352-1136, Linda Weber.
Tennessee State Office
    Suite 300, 3322 West End Avenue, Nashville, TN 37203-1084, (615) 
783-1380, Kathy Connelly.
Texas State Office
    Federal Building, Suite 102, 101 South Main, Temple, TX 76501, 
(254) 742-9711, John Kirchhoff.
Utah State Office
    Wallace F. Bennett Federal Building, 125 S. State Street, Room 
4311, Salt Lake City, UT 84147-0350, (801) 524-4325, Janice Kocher.
Vermont State Office
    City Center, 3rd Floor, 89 Main Street, Montpelier, VT 05602, (802) 
828-6015, Robert McDonald.
Virgin Islands
    Served by Florida State Office
Virginia State Office
    Culpeper Building, Suite 238, 1606 Santa Rosa Road, Richmond, VA 
23229, (804) 287-1596, CJ Michels.
Washington State Office
    1835 Black Lake Blvd., Suite B, Olympia, WA 98512, (360) 704-7706, 
Bill Kirkwood.
Western Pacific Territories
    Served by Hawaii State Office
West Virginia State Office
    Federal Building, 75 High Street, Room 320, Morgantown, WV 26505-
7500, (304) 372-3441 ext 105, Penny Thaxton.
Wisconsin State Office
    4949 Kirschling Court, Stevens Point, WI 54481, (715) 345-7620 ext 
157, Debbie Biga.
Wyoming State Office
    P.O. Box 11005, Casper, WY 82602, (307) 233-6716, Timothy Brooks.

    Dated: July 12, 2012.
Tammye Trevi[ntilde]o,
Administrator, Rural Housing Service.
[FR Doc. 2012-17462 Filed 7-17-12; 8:45 am]
BILLING CODE 3410-XV-P