[Federal Register Volume 82, Number 244 (Thursday, December 21, 2017)]
[Notices]
[Pages 60579-60584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27527]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Solicitation of Applications for Loan Guarantees Under 
the Section 538 Guaranteed Rural Rental Housing Program for Fiscal Year 
2018

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Housing Service (RHS or Agency), an agency within 
Rural Development, announces that it is soliciting competitive lender 
submissions (responses) regarding proposed projects for the Section 538 
Guaranteed Rural Rental Housing Program (GRRHP). The amount of program 
dollars available for the GRRHP will be determined by the 
Appropriations Act for each fiscal year that this Notice is open.

DATES: Eligible responses to this Notice will be accepted until 
December 31, 2021, 12:00 p.m. Eastern Time. Funding for selected 
responses that develop into complete applications and meet all Federal 
eligibility requirements will be based on the Appropriations Act for 
each individual fiscal year that this NOSA is open. Selected responses 
to this Notice that are deemed eligible for further processing after 
each fiscal year ends, will be funded to the extent an Appropriations 
Act provides sufficient funding in the fiscal year the response is 
selected. Approved applications are subject to the fee structure in 
effect when the response was selected for further processing. For 
example, a response that was selected under the 2016 NOSA will be 
subject to all fees stated in the 2016 NOSA.

ADDRESSES: Responses to this Notice may be submitted either 
electronically using the Section 538 electronic response form found at: 
http://www.rd.usda.gov/programs-services/multi-family-housing-loan-guarantees under the Forms and Resources tab or in hard copy to the 
appropriate Rural Development State Office where the project will be 
located. USDA Rural Development State Offices, their addresses, and 
telephone numbers may be found at: http://www.rd.usda.gov/contact-us/state-offices. Note: Telephone numbers listed are not toll-free. 
Applicants are strongly encouraged, but not required, to submit the 
response electronically.
    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 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.

FOR FURTHER INFORMATION CONTACT: Monica Cole, Financial and Loan 
Analyst, U.S. Department of Agriculture Rural Development, Guaranteed 
Rural Rental Housing Program, Multi-Family Housing Guaranteed Loan 
Division, 1400 Independence Avenue SW, Room 1263S-STOP 0781, 
Washington, DC 20250-0781 or 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) 877-8339.

SUPPLEMENTARY INFORMATION: The obligation of available funds, via the 
issuance of Conditional Commitments for loan guarantees, will be made 
in the following order: (1) To outstanding approved applications from 
prior years for which Conditional Commitments have not been issued; 
then (2) to applications approved under this Notice in the order by 
which the request for funding obligation is received by the USDA Rural 
Development National Office (National Office) from the State Offices. 
When funding is insufficient to serve all applications approved under 
this Notice, they will be funded according to the priority scoring set 
forth in Section V of this Notice.
    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.
    Any modifications to this Notice, including cancellation, will be 
published in the Federal Register.
    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 response 
score.

Overview

    Federal Agency: Rural Housing Service.
    Solicitation Opportunity Title: Guaranteed Multi-Family Housing 
Loans.
    Announcement Type: Initial Solicitation Announcement.

[[Page 60580]]

    Catalog of Federal Domestic Assistance: 10.438.
    Dates: Response Deadline: December 31, 2021, 12:00 p.m. Eastern 
Time.

I. 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 
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 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. Lenders and 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' 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 review, approval and FY 
2018 program dollars without having to complete a FY 2018 response. A 
complete application includes all Federal environmental documents 
required by 7 CFR part 1970, subpart G, and a Form RD 3565-1, 
``Application for Loan and Guarantee''.
    If approved, applications that accompanied a response submitted 
under a prior year's notice (outstanding prior years approved 
applications) will be obligated in the order by which the Agency's 
National Office received the request for obligation from the State 
Offices, to the extent of available funding.
    Once the outstanding prior years approved applications have been 
funded, the Agency will fund applications approved pursuant to this 
Notice in the order by which the Agency's National Office received the 
request for obligation from the State Offices. If funding is 
insufficient to serve applications pursuant to this Notice, they will 
be funded according to the priority scoring set forth in Section V of 
this Notice.
    The obligation of program funds is discussed further in Section VI 
of this Notice.

II. Award Information

    Anyone interested in submitting a response and application for 
funding under this program is encouraged to consult the Rural 
Development website http://www.rd.usda.gov/programs-services/multi-family-housing-loan-guarantees periodically for updated information 
regarding the status of funding authorized for this program.
    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. The Agency does not 
finance acquisition only deals.
    Also eligible is the revitalization, repair, and transfer (as 
stipulated in 7 CFR 3560.406) of existing direct Section 515 housing 
and Section 514/516 Farm Labor Housing (FLH) (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 
Multifamily Preservation and Revitalization (MPR) Demonstration 
program. Equity payment, as stipulated in 7 CFR 3560.406, in the 
transfer of existing direct Section 515 and Section 514/516 FLH, is an 
eligible use of guaranteed loan proceeds. In order to be considered, 
the transfer of Section 515 and Section 514/516 FLH 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 
(LIHTC).
    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 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: There will be no interest credit.
    Program Fees: The following fees have been determined necessary to 
cover the projected cost of loan guarantees. These fees may be adjusted 
based on the 2018 Appropriation requirements and in future years to 
cover the projected costs of loan guarantees in those future years, or 
additional fees may be charged. The fees are as follows:
    1. Initial guarantee fee. The Agency will charge an initial 
guarantee fee equal to one percent 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 
(\1/2\ 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 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 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 application fee.
    7. There is no lender application fee for lender approval.
    8. There is no surcharge for the guarantee of construction 
advances.

III. Lender 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

[[Page 60581]]

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 consider responses from GRRHP eligible 
or approved lenders as described in 7 CFR 3565.102 and 3565.103 
respectively.
    Lenders who do not have GRRHP approved lender status and whose 
responses are selected will be notified by the Agency to submit a 
request for GRRHP lender approval within 30 days of notification. 
Alternately, lenders may submit a request for GRRHP approved lender 
status with the response. Lenders who request GRRHP approval must meet 
the standards in 7 CFR 3565.103.
    Lenders that have received GRRHP lender approval that remain in 
good standing in accordance with 7 CFR 3565.105, do not need to reapply 
for GRRHP lender approval.
    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, U.S. Department of Agriculture Rural Development, 1400 
Independence Avenue SW, Room 1263S-STOP 0781, Washington, DC 20250-
0781. Lender applications must be identified as ``Lender Application--
Section 538 Guaranteed Rural Rental Housing Program'' on the envelope.

IV. Response Submission Information

    Responses to this Notice may be submitted either electronically 
using the Section 538 electronic response form found at: http://www.rd.usda.gov/programs-services/multi-family-housing-loan-guarantees 
under the Forms and Resources tab or in hard copy to the appropriate 
Rural Development State Office where the project will be located. USDA 
Rural Development State Offices, their addresses, and telephone numbers 
may be found at: http://www.rd.usda.gov/contact-us/state-offices. Note: 
Telephone numbers listed are not toll-free. Lenders are strongly 
encouraged, but not required, to submit their responses electronically.
    The electronic form contains a button labeled ``Send Form.'' By 
clicking on the button, the applicant will see an email message window 
with an attachment that includes the electronic form the applicant 
filled out as a data file with an .fdf extension. In addition, an auto-
reply acknowledgement will be sent to the applicant when the electronic 
response 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 responses received electronically by the actual date and 
time when all attachments are received at the State Office.
    Submission of the response to this Notice does not constitute 
submission of the entire loan guarantee application package, which 
requires additional forms and supporting documentation.
    Content of 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 response by the Agency. Complete responses are to 
include a signed cover letter from the lender, on the lender's 
letterhead. 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. In the case of insufficient funding for applications approved 
under this Notice, the Agency will fund those applications by highest 
ranked responses based on priority criteria.
    (1) Lender Certification: The lender must certify that the lender 
will make a loan to the prospective borrower for the proposed project, 
under specified terms and conditions subject to the issuance of the 
GRRHP guarantee. Lender certification must be on the lender's 
letterhead and signed by both the lender and the prospective borrower.
    (2) Project Specific Data: The lender must submit the project 
specific data below on the lender's letterhead, signed by both the 
lender and the prospective borrower:

------------------------------------------------------------------------
                                             Information that must be
              Data element                           included
------------------------------------------------------------------------
Lender Name............................  Insert the lender's name.
Lender Tax ID #........................  Insert lender's tax ID number.
Lender Contact Name....................  Name of the lender contact for
                                          loan.
Mailing Address........................  Lender's complete mailing
                                          address.
Phone #................................  Phone number for lender
                                          contact.
Fax #..................................  Insert lender's fax number.
EMail Address..........................  Insert lender contact email
                                          address.
Borrower Name and Organization Type....  State whether borrower is a
                                          Limited Partnership,
                                          Corporation, Indian Tribe,
                                          etc.
Equal Opportunity Survey...............  Optional Completion.
Tax Classification Type................  State whether borrower is for
                                          profit, not for profit, etc.
Borrower Tax ID #......................  Insert borrower's tax ID
                                          number.
Borrower DUNS #........................  Insert DUNS number.
Borrower Address, including County.....  Borrower's complete address and
                                          county.
Borrower Phone #, Fax # and EMail        Insert borrower's phone number,
 Address.                                 fax number and email address.
Principal or Key Member for the          Insert name and title. List the
 Borrower.                                general partners if a limited
                                          partnership, officers if a
                                          corporation or members of a
                                          Limited Liability Corporation.
Borrower Information and Statement of    Attach relevant information.
 Housing Development Experience.
New Construction, Acquisition With       State whether the project is
 Rehabilitation.                          new construction or
                                          acquisition with
                                          rehabilitation.
Revitalization, Repair, and Transfer     Yes or No (Transfer costs,
 (as stipulated in 7 CFR 3560.406) of     including equity payments, are
 Existing Direct Section 515 and          subject to Agency approval and
 Section 514/516 FLH or MPR.              must be an eligible use of
                                          loan proceeds in 7 CFR
                                          3565.205).
Project Location Town or City..........  Town or city in which the
                                          project is located.
Project County.........................  County in which the project is
                                          located.
Project State..........................  State in which the project is
                                          located.
Project Zip Code.......................  Insert zip code where the
                                          project is located.
Project Congressional District.........  Congressional District for
                                          project location.

[[Page 60582]]

 
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 number 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 number of units.
Rent...................................  Proposed rent structure.
Median Income for Community............  Provide median income for the
                                          community.
Evidence of Site Control...............  Attach relevant information.
Description of Any Environmental Issues  Attach relevant information.
Loan Amount............................  Insert the loan amount.
Borrower's Proposed Equity.............  Insert amount and source.
Low Income Housing Tax Credits.........  Have tax credits been awarded?
                                          If tax credits were awarded,
                                          submit a copy of the award/
                                          evidence of award with your
                                          response. If not, when do you
                                          anticipate an award will be
                                          made (announced)? What is the
                                          [estimated] value of the tax
                                          credits? Letters of
                                          application and commitment
                                          letters should be included, if
                                          available.
Other Sources of Funds.................  List all funding sources other
                                          than tax credits and amounts
                                          for each source, type, rates
                                          and terms of loans or grant
                                          funds.
Loan to Total Development Cost.........  Guaranteed loan divided by the
                                          total development costs of
                                          project.
Debt Coverage Ratio....................  Net Operating Income divided by
                                          debt service payments.
Percentage of Guarantee................  Percentage guarantee requested.
Collateral.............................  Attach relevant information.
Colonia, Tribal Lands, or 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
                                          document).
Population.............................  Provide the population of the
                                          county, city, or town where
                                          the project is or will be
                                          located.
What Type of Guarantee is Being          Enter the type of guarantee.
 Requested, Permanent Only (Option 1),
 Construction and Permanent (Option 2),
 or Continuous (Option 3).
Loan Term..............................  Minimum 25-year term. Maximum
                                          40-year term (includes
                                          construction period). May
                                          amortize up to 40 years.
                                          Balloon mortgages permitted
                                          after the 25th year.
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 Information:
    (a) Lender certification that the borrower and principals are not 
barred or suspended from participating in State or Federal loan 
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 package requesting approved lender status can be 
submitted with the response. If a lender has not yet been approved by 
the Agency submits a response and receives a Notice to Proceed from the 
State Office, the lender approval application must be submitted to the 
National Office within 30 calendar days of the lender's receipt of the 
Notice to Proceed letter. The Agency will not issue a loan note 
guarantee until the lender is approved by the Agency.
    (5) Competitive Criteria: Information that shows how the proposal 
is responsive to the priority scoring criteria specified in this 
Notice.

V. Application Review Information

    Scoring of Priority Criteria for Selection: All responses received 
under this Notice will be scored based on the criteria set forth below 
to establish priority in the event there is insufficient funding. 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 LIHTC funding 
and projects that are participating in specified energy efficient 
programs.
    The eight 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 (people)                      Points
------------------------------------------------------------------------
0-5,000......................................................         30
5,001-10,000.................................................         15
10,001-15,000................................................         10
15,001-20,000................................................          5
20,001-35,000................................................          0
------------------------------------------------------------------------

    Priority 2--The neediest communities as determined by the median 
income from the most recent census data published by the United States 
Department of Housing and Urban Development, 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:

[[Page 60583]]



------------------------------------------------------------------------
                   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 (%)              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 
follows:

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

    Priority 6--Responses for the revitalization, repair, and transfer 
(as stipulated in 7 CFR 3560.406) of existing direct Section 515 and 
Section 514/516 FLH and properties involved in the Agency's MPR 
Demonstration program (transfer costs, including equity payments, are 
subject to Agency approval and must be an eligible use of loan proceeds 
listed in 7 CFR 3565.205) will receive an additional 10 points. If the 
transfer of existing Section 515 and Section 514/516 FLH 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. 
Because Energy Star for Homes is a requirement within other programs 
such as LEED and Green Communities, points will only be awarded 
separately for Energy Star for Homes if it is the only program in which 
the project is enrolled, excluding local programs that do not require 
participation in Energy Star for Homes:
     Energy Star for Homes--5 points;
     Green Communities by the Enterprise Community Partners 
(www.enterprisefoundation.org)--10 points;
     LEED for Homes program by the U.S. Green Building Council 
(www.usgbc.org)--Certified (10 points), Silver (12 points), Gold (15 
points), or Platinum (25 points);
     Home Innovation's National Green Building 
StandardTM certification program (www.homeinnovation.com/green)--Bronze (10 points), Silver (12 points), Gold (15 points), or 
Emerald (25 points); or
     A State or local green building program--2 points.
    (B) Projects that will be managed by a property management company 
that are certified green property management companies will receive 5 
points. Applicants must provide proof of certification. Certification 
may be achieved through one of the following programs:
     National Apartment Association, Credential for Green 
Property Management; www.naahq.org/EDUCATION/DESIGNATIONPROGRAMS/OTHER/Pages/default.aspx;
     National Affordable Housing Management Association, 
Credential for Green Property Management; www.nahma.org/content/greencred.html; or
     U.S. Green Building Council, Green Building Certification 
Institute LEED AP (any discipline) or LEED Green Associate; 
www.gbci.org.
    (C) Energy Generation (maximum 5 points). Responses 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 Home Innovation's National Green 
Building StandardTM are eligible to earn additional points 
for installation of on-site renewable energy sources. 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 response. Energy analysis of preliminary building 
plans using industry-recognized simulation software must document the 
projected total energy consumption of the building, the portion of the 
building consumption which will be satisfied through on-site generation 
and the building's Home Energy Rating System (HERS) score.
    Projects with an energy analysis of the preliminary or 
rehabilitation building plans that propose a 10 percent to 100 percent 
energy generation commitment (where generation is considered to be the 
total amount of energy needed to be generated on-site to make the 
building a net-zero consumer of energy) will be awarded points 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.
    Priority 8--Promise Zones/Persistent Poverty Areas:
    Additional 10 points will be awarded to projects located in Promise 
Zones and/or Persistent Poverty Counties. A county is considered 
persistently poor if 20 percent or more of its population was living in 
poverty over the last 30 years (measured by the 1990, 2000, and 2010 
decennial censuses and 2007-2011 American Community Survey 5-year 
estimates), as determined by the Agency.
    Notifications: Responses will be reviewed for completeness and 
eligibility. The Agency will notify those lenders whose responses are 
selected via a ``Notice to Proceed with Application Processing'' 
letter. The Agency 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: The Agency will issue a ``Notice 
to Proceed with Application Processing'' (Notice to Proceed) to lenders 
whose responses have been selected. The Notice to Proceed 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

[[Page 60584]]

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.

VI. Award Administration Information

    Obligation of Program Funds: The Agency will only obligate funds to 
projects that meet the requirements under 7 CFR part 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, ``Application for Loan and Guarantee''.
    The Agency will select the responses that meet eligibility criteria 
and invite lenders, via a Notice to Proceed, to submit complete 
applications to the Agency, as well as a request for GRRHP approved 
lender status if necessary. Once a complete application is received and 
approved (and any request for GRRHP approved lender status is granted), 
the Agency's State Office will submit a request to obligate funds to 
the Agency's National Office. Obligation requests submitted to the 
National Office will be accumulated and placed in a queue for funding 
based on the order by which the obligation request was received by the 
National Office. In the event that multiple obligation requests are 
received at the same time, first priority will be given to the request 
for the project that has the highest percentage of leveraging (lowest 
Loan to Cost). If there is still a tie, priority will be given to the 
project in the smaller rural community.
    In the event there is insufficient funding for applications 
approved under this Notice, the Agency will fund applications based on 
priority score ranking described in Section V.
    Conditional Commitment: Once the required documents for obligation 
are received and all applicable requirements have been met, including 
NEPA requirements, and to the extent funding is available, the USDA 
Rural Development State Office will issue a Conditional Commitment. The 
Conditional Commitment will stipulate 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 State Office will 
issue a guarantee to the lender for a project in accordance with 7 CFR 
3565.303. No guarantee can be issued without a complete application, 
review of appropriate certifications, satisfactory assessment of the 
appropriate level of environmental review, and the completion of any 
conditional requirements.
    Tracking of Average Rents: After the loan closes, the lender will 
track the initial affordable rent at each property funded under this 
Notice and the average market rent in the area. The difference between 
these two rents will provide the lender with a measure of the impact 
the GRRHP has on affordable rents.

Non-Discrimination Statement

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, familial/parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or 
write a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To request a copy of the complaint 
form, call (866) 632-9992, submit your completed form or letter to USDA 
by:
    Mail: U.S. Department of Agriculture, Director, Office of 
Adjudication, 1400 Independence Avenue SW, Washington, DC 20250-9410;
    Fax: (202) 690-7442; or
    Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

    Dated: December 14, 2017.
Richard A. Davis,
Acting Administrator, Rural Housing Service.
[FR Doc. 2017-27527 Filed 12-20-17; 8:45 am]
 BILLING CODE 3410-XV-P