[Federal Register Volume 84, Number 130 (Monday, July 8, 2019)]
[Notices]
[Pages 32404-32413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14390]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Solicitation of Applications for Section 514 Farm Labor 
Housing Loans and Section 516 Farm Labor Housing Grants for Off-Farm 
Housing for Fiscal Year 2019

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Housing Service (RHS) 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 non-FLH property. The 
intended purpose of the 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.
    The amount of funding available can be found at the following link: 
https://www.rd.usda.gov/newsroom/notices-solicitation-applications-nosas. Expenses incurred in developing applications will be at the 
applicant's risk.

DATES: The agency deadline for receipt of all applications in response 
to this Notice is 5 p.m., local time to the appropriate Rural 
Development State Office by August 30, 2019. Rural Development will not 
consider any application that is received after the deadline unless the 
date and time are extended by another Notice published in the Federal 
Register. Applicants mailing applications must provide sufficient time 
to permit delivery on or

[[Page 32405]]

before the deadline. Acceptance by a post office or private mailer does 
not constitute delivery. Facsimile (FAX) and postage due applications 
will not be accepted.

ADDRESSES: Applicants wishing to submit an application in response to 
this Notice must contact the Rural Development State Office serving the 
State of the proposed off-farm FLH project in order to receive further 
information and copies of the application package. You may find the 
addresses and contact information for each State Office at, http://www.rd.usda.gov/contact-us/state-offices. Rural Development will date, 
and time stamp incoming applications to evidence timely receipt, and 
will provide the applicant with a written acknowledgment of receipt 
upon request.

FOR FURTHER INFORMATION CONTACT: Mirna Reyes-Bible, Senior Finance and 
Loan Analyst, Preservation and Direct Loan Division, STOP 0781 (Room 
1263-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].

SUPPLEMENTARY INFORMATION: 

Priority Language for Funding Opportunities

    The Agency encourages applications that will help improve life in 
rural America. See information on the Interagency Task Force on 
Agriculture and Rural Prosperity found at www.usda.gov/ruralprosperity. 
Applicants are encouraged to consider projects that provide measurable 
results in helping rural communities build robust and sustainable 
economies through strategic investments in infrastructure, partnerships 
and innovation. Please note that this Notice of Solicitation 
Applications (NOSA) does not award points for these strategies. Key 
strategies include:

 Achieving e-Connectivity for Rural America
 Developing the Rural Economy
 Harnessing Technological Innovation
 Supporting a Rural Workforce
 Improving Quality of Life

    To encourage investments in rural properties, the Agency also will 
award points to projects located in rural Opportunity Zones where 
projects should provide measurable results in helping communities build 
robust and sustainable economies. An Opportunity Zone is an 
economically-distressed community where new investments, under certain 
conditions, may be eligible for preferential tax treatment. Localities 
qualify as Opportunity Zones if they have been nominated for that 
designation by the State and that nomination has been certified by the 
Secretary of the U.S. Treasury via his delegation of authority to the 
Internal Revenue Service. See https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions for more information.
    To focus investments in areas where the need for increased 
prosperity is greatest, the Agency will set aside 10 percent of the 
funds available through this fiscal year's NOSA for applications that 
will serve persistent poverty counties. Persistent poverty counties are 
areas where at least 20 percent of the population is living in poverty 
over the last 30 years (measured by the 1980, 1990, 2000 and 2010 
decennial censuses and 2007-2011 American Community Survey 5-year 
estimates) according to American Community Survey census tract data. 
Information on which counties are considered persistent poverty 
counties can be found through the United States Department of 
Agriculture's (USDA) Economic Research Service (ERS) (http://ers.usda.gov/). ERS is the main source of economic information and 
research for USDA and a principal agency of the U.S. Federal 
Statistical System located in Washington, DC. Set-aside funds will be 
awarded in the order of receipt of complete pre-applications. Once the 
set-aside funds are exhausted, any further set-aside applications will 
be evaluated and ranked with the other applications submitted in 
response to this Notice. If, by September 6, 2019, the Agency does not 
receive enough eligible applications to fully utilize the 10 percent 
set aside in the service of these areas, the Agency will award any 
unused set aside funds to other eligible applicants.

Overview

    Federal Agency: Rural Housing Service.
    Funding Opportunity Title: Notice of Solicitation Applications for 
Section 514 Farm Labor Housing Loans and Section 516 Farm Labor Housing 
Grants for Off-Farm Housing for Fiscal Year (FY) 2019.
    Announcement Type: Solicitation of pre-applications from qualified 
applicants for FY 2019.
    Catalog of Federal Domestic Assistance Numbers (CFDA): 10.405 and 
10.427.

A. Federal Award Description

    Pre-applications will only be accepted through the date and time 
listed in this Notice. All awards are subject to availability of 
funding. The maximum award per selected project may not exceed $3 
million (total loan and grant).
    A State will not receive more than 30 percent of FLH funding 
appropriated for FY 2019, unless there are remaining Section 514 and 
Section 516 funds after all eligible applications nationwide have been 
funded. In this case, funds will be awarded to the next highest-ranking 
eligible applications among all of the remaining unfunded applications 
submitted to the National Office by the State Offices. The National 
Office will allocate the awarded funds to the States for obligation, 
and the allocation of these funds may result in a State or States 
exceeding the 30 percent limitation.
    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 
3560.11. Section 514 off-farm labor loans may not exceed the limits set 
forth in 7 CFR 3560.562(b).
    If leveraged funds are going to be used and are in the form of tax 
credits, the applicant must include in the pre-application written 
evidence that a tax credit application has been submitted and accepted 
by the Housing Finance Agency (HFA). All applications that receive any 
leveraged funds must have firm commitments in place within 18 months of 
the issuance of a ``Notice of Pre-Application Review Action,'' Handbook 
Letter 106 (3560). Applicants without written evidence that a tax 
credit application has been submitted and accepted by a HFA must 
certify in writing they will apply for tax credits to a HFA and obtain 
a firm commitment within 18 months of the issuance of a ``Notice of 
Pre-Application Review Action.'' Those applicants that do not obtain a 
firm commitment for tax credits from a HFA within 18 months of the 
issuance of a ``Notice of Pre-Application Review Action'' will be 
deemed to have an incomplete application and will be notified in 
writing that funds will be de-obligated.
    Rental Assistance (RA) and operating assistance will be available 
for new construction in FY 2019. Operating assistance is explained at 7 
CFR 3560.574 and may be used in lieu of tenant-specific RA in off-farm 
FLH projects that serve migrant farm workers as defined in 7 CFR 
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 3560.574.
    In order to maximize the use of the limited supply of FLH funds, 
the Agency may contact eligible NOSA responses selected for an award in 
point

[[Page 32406]]

score order starting with the higher scores, with proposals to modify 
the transaction's proportions of grant and loan funds. In addition, if 
funds remain after the highest scoring eligible NOSA responses are 
selected for awards, we may contact those eligible responses not 
selected for awards, in point score order starting with the highest 
scores, to ascertain whether those respondents will accept the 
remaining funds.

B. Eligibility Information

1. Eligibility

    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/her income from 
the primary production of agricultural or aqua cultural commodities in 
the unprocessed or processed stage, and also includes the person's 
family.
    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 Section 514(f)(3) of the Housing Act of 1949, as amended (42 
U.S.C. 1484(f)(3)).
    Section 514(f)(3)(A) of the Housing Act of 1949 (42 U.S.C. 
1484(f)(3)(A)) has been amended to extend FLH tenant eligibility to 
agricultural workers legally admitted to the United States and 
authorized to work in agriculture. It is important to note, that 
persons admitted legally for agricultural work remain ineligible for 
Rental Assistance (RA) as set forth in 7 CFR 3560.254(c). In addition, 
under no circumstance may any currently eligible FLH tenants be 
displaced from their homes as a result of this statutory change.
    Applicant Eligibility--
    (a) To be eligible to receive a Section 516 grant for off-farm FLH, 
the applicant must meet the requirements of 7 CFR 3560.555 and be a 
broad-based non-profit organization, including community and Faith-
Based organizations, a non-profit 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. An off-farm labor housing loan (514) financed by RHS may be 
used to meet this requirement. Limited partnerships in which a general 
partner is a non-profit entity are eligible for Section 514 loans but 
are not eligible for Section 516 grants.
    (b) To be eligible to receive a Section 514 loan for off-farm FLH, 
the applicant must meet the requirements of 7 CFR 3560.555 and be a 
broad-based non-profit organization, including community and Faith-
Based organizations, a non-profit 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 non-profit entity as 
its general partner, and
    (i) Be unable to provide the necessary housing from its own 
resources;
    (ii) 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.)
    (iii) Broad-based non-profit organizations must have a membership 
that reflects a variety of interests in the area where the housing will 
be located.
    2. Cost Sharing or Matching--Section 516 grants for off-farm FLH 
may not exceed 90 percent of the TDC as provided in 7 CFR 
3560.562(c)(1).
    3. Other Requirements--the following requirements apply to loans 
and grants made in response to this Notice:
    (a) 7 CFR part 1901, subpart E, regarding equal opportunity 
requirements;
    (b) For grants only, 2 CFR parts 200 and 400, which establishes the 
uniform administrative and audit requirements for grants and 
cooperative agreements to State and local Governments and to non-profit 
organizations;
    (c) 7 CFR part 1901, subpart F, regarding historical and 
archaeological properties;
    (d) 7 CFR 1970.11, Environmental review process. Please note, the 
Agency must conclude the environmental review process before a FLH 
award is obligated. It is incumbent on an applicant to work closely and 
to coordinate with the corresponding State Office during the 
environmental review process.
    (e) 7 CFR part 3560, subpart L, regarding the loan and grant 
authorities of the off-farm FLH program;
    (f) 7 CFR part 1924, subpart A, regarding planning and performing 
construction and other development;
    (g) 7 CFR part 1924, subpart C, regarding the planning and 
performing of site development work;
    (h) 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;
    (i) A check for $24 from the applicant made out to the United 
States Department of Agriculture. This check will be used to pay for 
credit reports obtained by the Agency;
    (j) Borrowers and grantees must take reasonable steps to ensure 
that tenants receive the language assistance necessary to afford them 
meaningful access to USDA programs and activities, free of charge. 
Failure to provide this assistance to tenants who can effectively 
participate in or benefit from Federally-assisted programs or 
activities may violate the prohibition under Title VI of the Civil 
Rights Act of 1964, 42 U.S.C. 2000d et seq. and Title VI regulations 
against national origin discrimination
    (k) All other requirements contained in 7 CFR part 3560, regarding 
the Sections 514/516 off-farm FLH programs; and
    (l) 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 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 consideration 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 170.110(b), the applicant must have the necessary processes 
and systems in place to comply with the reporting requirements should 
the applicant receive funding. See 2 CFR 170.200(b).

C. Application and Submission Information

1. Pre-Application Submission

    The application process will be in two phases: The initial pre-
application (or

[[Page 32407]]

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 will 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 the deadline 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.rd.usda.gov/programs-services/farm-labor-housing-direct-loans-grants or in hard copy to the 
appropriate Rural Development Office where the project will be located. 
Follow the link to find the appropriate Rural Development State Office 
address for requesting and submitting a pre-application at: http://www.rurdev.usda.gov/StateofficeAddresses.html. 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 see an email 
message window 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 attachments 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 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.
    (a) 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.
    (b) E-Mail 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 you send will be stored in the 
folder assigned to that email address. Any forms and documents that are 
not sent via the email option must be submitted on an electronic media 
or in hard copy to the Rural Development State Office.
    (c) 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 Rural Development State Office where the property is 
located. Hard copy pre-applications received on or before the deadline 
will receive the close of business time of the day received as the 
receipt time. Assistance for filing electronic and hard copy 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 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 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.

2. Pre-Application Requirements

    (a) The pre-application must contain the following:
    (1) A summary page listing the following items. This information 
should be double-spaced between items and not be in narrative form.
    i. Applicant's name.
    ii. Applicant's Taxpayer Identification Number.
    iii. Applicant's address.
    iv. Applicant's telephone number.
    v. Name of applicant's contact person, telephone number, and 
address.
    vi. Amount of loan and/or grant requested.
    vii. For grants of Federal financial assistance (including loans 
and grants, cooperative agreements, etc.), the applicant's DUNS number 
and registration in the CCR database in accordance with 2 CFR part 25. 
As required by 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 (866) 705-5711 or via the internet at: 
http://www.dnb.com/. Additional information concerning this requirement 
can be obtained on the Grants.gov website at www.grants.gov. Similarly, 
applicants may register for the CCR at: https://www.uscontractorregistration.com/ or by calling (877) 252-2700.
    (2) Awards made under this Notice are subject to the provisions 
contained in the Consolidated Appropriations Act, 2019 (Pub. L. 116-6) 
sections 745 and 746 regarding felony convictions and corporate Federal 
tax delinquencies. To comply with these provisions, applicants that are 
or propose to be corporations will submit form AD-3030, 
``Representations Regarding Felony Conviction and Tax Delinquent Status 
for Corporate Applicants,'' as part of their pre-application. Form AD-
3030 can be found here: http://www.ocio.usda.gov/document/ad3030.
    (3) 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.
    (4) Standard Form 424, ``Application for Federal Assistance,'' can 
be obtained at: http://www.grants.gov or from any Rural Development 
State Office listed in Section VII of this Notice.

[[Page 32408]]

    (5) 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.''
    (6) For loan pre-applications, a check for $24 from applicants made 
out to the United States Department of Agriculture. This will be used 
to pay for credit reports obtained by Rural Development.
    (7) Evidence that the applicant is unable to obtain credit from 
other sources. Evidence may include but is not limited to a denial from 
a credit institution which normally provide real estate loans in the 
area. (Note: not required from State or local public agencies or Indian 
tribes.)
    (8) If an FLH grant is desired, a statement concerning the need for 
an FLH grant. The statement should include preliminary estimates of the 
rents required with and without a grant.
    (9) 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).
    (10) 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.
    (11) Provide your entity's projected Return on Investment (ROI) for 
the requested funds to demonstrate the effectiveness and efficiency of 
your proposal. Please include the methodology and assumptions you used 
in the ROI calculation. Also include a detailed examination of outputs 
and outcomes.
    (12) Applicants must also provide:
    (i) A copy of, or an accurate citation to, the special provisions 
of State or Tribal law under which they are organized, a copy of the 
applicant's charter, Articles of Incorporation, and by-laws;
    (ii) The names, occupations, and addresses of the applicant's 
members, directors, and officers; and
    (iii) If a member or subsidiary of another organization, the 
organization's name, address, and nature of business.
    (13) A preliminary market survey or market study to identify the 
supply and demand for farm 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. The 
documentation must consider disabled and retired farm workers. The 
preliminary survey should address or include the following items:
    (i) 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;
    (ii) 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);
    (iii) General information concerning the type of labor-intensive 
crops grown in the area and prospects for continued demand for farm 
laborers;
    (iv) 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.);
    (v) The number, condition, adequacy, rental rates and ownership of 
units currently used or available to farm workers;
    (vi) 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 TDC, and 
applicant contribution; and
    (vii) 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 TDC of the housing.)
    (14) The applicant must submit a checklist, certification, and 
signed affidavit by the project architect or engineer, as applicable, 
for any energy programs the applicant intends to participate in.
    (15) The following forms are required:
    (i) 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://portal.hud.gov/hudportal/documents/huddoc?id=935-2a.PDF.
    (ii) A proposed operating budget utilizing Form RD 3560-7, 
``Multiple Family Housing Project Budget/Utility Allowance,'' can be 
found at: http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-7.PDF.
    (iii) 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.
    (iv) 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.
    (v) Form HUD 2530, ``Previous Participation Certification,'' can be 
found at: http://portal.hud.gov/hudportal/documents/huddoc?id=2530.pdf.
    (vi) 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.
    (vii) Form RD 400-4, ``Assurance Agreement,'' can be found at: 
http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD400-4.PDF.
    (viii) Evidence of compliance with Executive Order 12372. The 
applicant must send a copy of Form SF-424,

[[Page 32409]]

``Application for Federal Assistance,'' 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. Applications from Federally recognized 
Indian tribes are not subject to this requirement.
    (ix) 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.
    (x) 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.
    (xi) 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. RA may not fund a direct service provision.
    (xii) 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.
    (xiii) 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. 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.
    (xvi) 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 FLH project is located, signed by their 
designee will serve as evidence of compliance.
    (xv) Environmental information in accordance with the requirements 
in 7 CFR 1970.

D. Pre-Application Review Information

    1. Selection Criteria. Section 514 FLH loan funds and Section 516 
FLH grant funds will be distributed to States based on a national 
competition, as follows:
    (a) Rural Development State Office will accept, review, and score 
pre-applications in accordance with this Notice.
    (1) Points will be allocated for applications that leverage other 
funds based on the leverage funds percentage of RD's total investment. 
This is calculated as follows:
    Rural Development Leverage funds equals the sum of all permanent 
third-party project investments plus Rural Development's allowed value 
of donated land. The value of the donated land will be calculated in 
accordance with Rural Development's Handbook HB-1-3560. The amount of 
permanent third-party project investments is limited to third-party 
funds from equity, grants, loans, and deferred developer fees. To 
obtain the percentage from which the leverage points are derived, this 
leverage fund amount is divided by Rural Development's investment, 
which equals the total amount of approved Section 516 grants and/or 
Section 514 loans. For example:
[GRAPHIC] [TIFF OMITTED] TN08JY19.003

    The score points for leverage in this section will be calculated by 
multiplying the leverage percentage by 10. Using the above percentage, 
this would be 516.67 percent (or 5.1667) x 10, which equates to 51.67 
score points for leverage.
    A score point for leverage of more than zero but less than one will 
be rounded to one (1) point. A score point for leverage of zero or less 
will not receive any points. There is no maximum amount of score points 
for leverage. All score points for leverage will be rounded to two 
decimal places.
    (2) 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 5-
year calculation, the applicant must use the 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 x 5 years); resulting to a 
$10,000 per-unit cost savings ($100,000/10 units).
    Use the following table to apply points:

------------------------------------------------------------------------
                   Per-unit cost savings                        Points
------------------------------------------------------------------------
Above $15,000..............................................           50
$10,001-$15,000............................................           35
$7,501-$10,000.............................................           20
$5,001-$7,500..............................................           15
$3,501-$5,000..............................................           10
$2,001-$3,500..............................................            5
$1,000-$2,000..............................................            2
------------------------------------------------------------------------

    The Agency will not be providing excess assistance to the project. 
This is determined by conducting a subsidy layering review at this 
stage, and then again at Stage 2 of the loan origination process. 
Paragraph 4.19 of the USDA Multi-Family Housing Loan Origination 
Handbook (HB-1-3560) provides details on the subsidy layering review 
process. A subsidy layering review will be required prior to funding.
    (3) Ten (10) points will be awarded to projects in Opportunity 
Zones. An Opportunity Zone is an economically-

[[Page 32410]]

distressed community where new investments, under certain conditions, 
may be eligible for preferential tax treatment. Localities qualify as 
Opportunity Zones if they have been nominated for that designation by 
the State and that nomination has been certified by the Secretary of 
the U.S. Treasury via his delegation of authority to the Internal 
Revenue Service. See https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions for more information.
    (4) Points will be allocated for the presence of tenant services. 
Two (2) 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. These 
services may include, but are not limited to, transportation related 
services, on-site English as a Second Language classes, move-in funds, 
emergency assistance funds, homeownership counseling, food pantries, 
after school tutoring, and computer learning centers. RA may not be 
used to pay for these services.
    (5) Points will be allocated for Energy initiatives (the aggregate 
points for all the Energy Initiative categories may not exceed 20 
points).
    Properties may receive points for energy initiatives in the 
categories of energy conservation, energy generation, water 
conservation and green property management. Depending on the scope of 
work, properties may earn ``energy initiative'' points in either one of 
two categories: (1) New Construction or (2) Purchase and Rehabilitation 
of an Existing Non-Farm Labor Housing Building. Projects will be 
eligible for one category of the two, but not both.
    Energy programs including Council's Leadership in Energy and 
Environmental Design (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, and the project has been enrolled in these 
programs if enrollment is applicable to that program. In addition, 
projects that apply for points under the energy generation category 
must include calculations of savings of energy. Compare property energy 
usage of three scenarios: (1) Property built to required code of State 
with no renewables, to (2) property as-designed with commitments to 
stated energy conservation programs without the use of renewables and 
(3) property as-designed with commitments to stated energy conservation 
programs and the use of proposed renewables. Use local average metrics 
for weather and utility costs and detail savings in kWh and dollars. 
Provide payback calculations. These calculations must be done by a 
licensed engineer or credentialed renewable energy provider. Include 
with application, the provider/engineer's credentials including 
qualifications, recommendations, and proof of previous work. The 
checklist, affidavit, calculations, and qualifications of engineer/
energy provider must be submitted together with the loan application.
    Enrollment in EPA Portfolio Manager Program. All projects awarded 
scoring points for energy initiatives must enroll the project in the 
EPA Portfolio Manager program to track post-construction energy 
consumption data. More information about this program may be found at: 
http://www.energystar.gov/buildings/facility-owners-and-managers/existing-buildings/use-portfolio-manager.
    (i) Energy Conservation for New Construction or Purchase and 
Rehabilitation of an Existing Non-Farm Labor Housing Building. Projects 
may be eligible for scoring points when the pre-application includes a 
written certification by the applicant to participate and achieve 
certification in the following energy efficiency programs.
    The points will be allocated as follows:
     Participation in the EPA's Energy Star for Homes V3 
program. (2 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. (4 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.

--Certified Level (2 points), OR
--Silver Level (4 points), OR
--Gold Level (6 points), OR
--Platinum Level (8 points)

    Applicant must state the level of certification that the 
applicant's plans will achieve in their certification in its pre-
application.

OR

     Home Innovation's and The National Association of Home 
Builders (NAHB) ICC 700 National Green Building Standard TM: http://www.nahb.org/.
--Green-Bronze Level (2 points), OR
--Silver Level (4 points), OR
--Gold Level (6 points), OR
--Emerald Level (8 points)

    Applicant must state the level of certification that the 
applicant's plans will achieve in their certification in its pre-
application.

AND

     Participation in the Department of Energy's Zero Energy 
Ready program. (2 points) http://www.energy.gov/eere/buildings/zero-energy-ready-home.

AND

     Participation in local green/energy efficient building 
standards. Applicants who participate in a city, county or municipality 
program (2 points).
    (ii) Energy Conservation for Rehabilitation. Pre-applications for 
the purchase and rehabilitation of non-program MFH and related 
facilities in rural areas may be eligible for scoring points when the 
pre-application includes a written certification by the applicant to 
participate in one of the following energy efficiency programs. Again, 
the certification must be accompanied by a signed affidavit by the 
project architect or engineer stating that the goals are achievable. 
Points will be award as follows:
     Participation in the Green Communities program by the 
Enterprise Community Partners (3 points) http://www.enterprisecommunity.com/solutions-and-innovation/enterprise-green-communities. At least 30 percent of the points needed to qualify for 
the Green Communities program must be earned under the Energy 
Efficiency section of Green Communities.

AND

     Participation in local green/energy efficient building 
standards. Applicants who participate in a city, county or municipality 
program (2 points). The applicant should be aware of and look for 
additional requirements that are

[[Page 32411]]

sometimes embedded in the third-party program's rating and verification 
systems.
    (iii) Energy Generation. Pre-applications for new construction or 
purchase and rehabilitation of non-program multi-family projects which 
participate in the above-mentioned programs and receive scoring points 
for installation of on-site renewable energy sources. Energy analysis 
of preliminary building plans using industry-recognized simulation 
software must document the projected total energy consumption of all of 
the building components and building site usage. 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:

 0 to 9 percent commitment to energy generation--0 points
 10 to 20 percent commitment to energy generation--1 point
 21 to 40 percent commitment to energy generation--2 points
 41 to 60 percent commitment to energy generation--3 points
 61 to 80 percent commitment to energy generation--4 points
 81-100 percent or more commitment to energy generation--5 
points

    Projects may participate in Power Purchase Agreements or Solar 
Leases to achieve their on-site renewable energy generation goals 
provided that the financial obligations of the lease/purchase 
agreements are clearly documented and included in the application, and 
qualifying ratios continue to be achieved.
    An additional 1 point will be awarded for off-grid systems, or 
elements of systems, provided that at least 5 percent of on-site 
renewable system is off-grid. See www.dsireusa.org for State and local 
specific incentives and regulations of energy initiatives.
    (iv) Water Conservation in Irrigation Measures. Projects may be 
awarded 1 point for the use of an engineered recycled water (gray water 
or storm water) for landscape irrigation covering 50 percent or more of 
the property's site landscaping needs.
    (v) Property Management Credentials. Projects may be awarded 1 
point 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 LEED for 
Operations and Maintenance, 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.

E. Federal Award Administration Information

1. Federal Award Notices

    Applicants must submit their pre-applications by the due date 
specified in this Notice. Once the pre-applications have been scored 
and ranked by the State Office, the pre-applications must be reviewed 
and concurred with for funding by the National Office. The National 
Office will rank by score, highest to lowest, eligible pre-applications 
approved by State Offices. Based on available funding and the 30 
percent limitation per State, the National Office will determine which 
pre-applications can be funded starting with the highest scoring pre-
application. Thereafter, the National Office will notify the State 
Offices of pre-applications it concurred with for funding and further 
processing. Upon National Office notification, State Offices will 
notify applicants with pre-applications found eligible and selected for 
further processing. The selected applicants must submit a final 
application to their respective State Offices as soon as possible, but 
no later than 90 calendar days from the date of the selection letter 
(deadline). The State Office will deem an application not submitted on 
or before the deadline incomplete and a withdrawal by the applicant 
from consideration under this Notice. The applicant may re-submit its 
pre-application under a subsequent Notice.
    Pre-applications will be notified if there are insufficient funds 
available for the proposal and such notification is not appealable.
    Pre-applications found ineligible, State Offices will send notices 
of ineligibility that provide appeal rights under 7 CFR part 11, as 
appropriate.
    The National Office will rank all pre-applications nationwide and 
distribute funds to States in rank order, within funding and RA limits. 
When proposals have an equal score and not all pre-applications can be 
funded, preference will be given first to Indian tribes as defined in 
Sec.  3560.11, then local non-profit organizations or public bodies 
whose principal purposes include low-income housing that meet the 
conditions of Sec.  3560.55(c), and the following conditions:
     Is exempt from Federal income taxes under section 
501(c)(3) or 501(c)(4) of the Internal Revenue Service code;
     Is not wholly or partially owned or controlled by a for-
profit or limited-profit type entity;
     Whose members, or the entity, do not share an identity of 
interest with a for-profit or limited-profit type entity;
     Is not co-venturing with another entity; and
     The entity or its members will not be receiving any direct 
or indirect benefits pursuant to Low Income Housing Tax Credits.
    If after all of the above evaluations are completed there are two 
or more pre-applications that have the same score, and all cannot be 
funded, a lottery will be used to break the tie. The lottery will 
consist of the names of each application with equal scores printed onto 
a same size piece of paper, which will then be placed into a receptacle 
that fully obstructs the view of the names. The Director of the 
Preservation and Direct Loan Division, in the presence of two 
witnesses, will draw a piece of paper from the receptacle. The name on 
piece of paper drawn will be the applicant to 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 the remaining available funding. This will be 
repeated for each next ranked eligible proposal until an award can be 
made or the list is exhausted.

2. Administrative and National Policy

    All FLH loans and grants are subject to the restrictive-use 
requirements contained in 7 CFR 3560.72(a) (2).

3. 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

[[Page 32412]]

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,'' must allocate revenue and expense between 
project operations and the service component.

F. Guidance to Agency Staff for Processing Section 514/516 Farm Labor 
Housing (FLH) New Construction Loan and Grant Requests

General Processing Guidelines
    Submitted applications should be reviewed for completeness using 
the requirements listed in this NOSA. Complete applications received by 
the deadline listed in this NOSA will be reviewed and scored based upon 
the factors listed therein by Agency staff. States Offices that need 
assistance with the review or the processing of FLH pre-applications 
should contact Mirna Reyes-Bible of the Multi-Family Housing 
Preservation and Direct Loan Division's Farm Labor Housing Program at 
(202) 720-1753 or at [email protected].
    The following are tasks that will be completed by Agency staff:
     State Offices will conduct the site visit and conduct the 
environmental review, and civil rights impact analysis. States Offices 
should refer to the 7 CFR part 1970 Instructions for guidance on how to 
conduct environmental reviews. RD Instructions for 7 CFR part 1970 can 
be found at: https://www.rd.usda.gov/publications/regulations-guidelines/instructions.
     State Offices will conduct preliminary eligibility 
assessment on each application received. Based on the preliminary 
eligibility, feasibility review, and application scoring, State Offices 
fax or email a final list of their scored and ranked pre-applications 
and a copy of the preliminary market study submitted by the applicant 
to the National Office.
     The State Office will include in the National Office list 
every pre-application determined incomplete or ineligible along with 
the reason for that determination, and receive National Office 
concurrence, prior to notifying the applicant. Pre-applications will be 
notified by the State Office if there are insufficient funds available 
for the proposal and such notification is not appealable. The Agency 
will notify the applicants of their ability to challenge the lack of 
appealability decision. State Offices will send all other notices of 
ineligibility and provide appeal rights under 7 CFR part 11.
     State Offices will issue letters of condition and state 
when acceptance must be returned by applicant.
Preliminary Eligibility Assessment
    The State Office shall make a preliminary eligibility assessment 
using the following criteria:
    1. The pre-application was received by the submission deadline 
specified in the NOSA;
    2. The pre-application is complete as specified by the NOSA;
    3. The applicant is an eligible entity and is not currently 
debarred, suspended, or delinquent on any Federal debt; and
    4. The proposal is for authorized purposes.
Final Applications
    The National Office will notify the State Offices which pre-
applications have been selected for further processing. State Offices 
should then follow Chapter 5 of HB-1-3560 for the processing of final 
applications. Final applicants will need to follow the bidding process 
as set forth in 7 CFR part 1924.
Equal Opportunity Survey
    State Offices should provide applicants the voluntary OMB 1890-0014 
form, ``Survey on Ensuring Equal Opportunity for Applicants'', (or 
other forms currently being used by Rural Development) and ask the 
applicant to complete it and return it to the State Office.
Substantial Portion of Income From Farm Labor
    The NOSA restates the requirement that domestic farm laborers must 
receive a substantial portion of their income from ``farm labor''. 
Further explanation of this requirement can be found in the regulation 
at 7 CFR 3560.576(b)(2) and Chapter 6, attachment 6-H of HB-2-3560. The 
term ``farm labor'' is defined at 7 CFR 3560.11 and further 
clarification is provided by Chapter 12, Attachment 12-A-of HB-1-3560.
Obligation of funds and Documentation of Underwriting and Costs
    All loan requests must be analyzed at the feasibility stage and 
again prior to obligation to determine the minimum amount of assistance 
that is needed for the proposal. The Multi-Family Housing Underwriting 
Request Form considers the sources and uses of all assistance proposed, 
i.e., all loans, grants, equity, and any other assistance. State 
Offices must obligate funds by the announced deadline. Form RD 1940-1, 
``Request for Obligation of Funds'', should refer to assistance codes 
``322'' for loans and ``323'' for grants. When obligating funds, the 
estimated development costs must be entered into the Automated Multi-
Family Housing Accounting System (AMAS) using the M5V screen. Once 
construction is completed, the actual development costs must be entered 
into AMAS using the M5VA screen. Guidance can be found in Chapter 2 of 
the AMAS manual (Stock #66, pages 9-15).
    Questions regarding this letter may be directed to Mirna Reyes-
Bible of the Multi-Family Housing Preservation and Direct Loan 
Division, at (202) 720-1753.

G. Equal Opportunity and Non-Discrimination Requirements

    In accordance with Federal civil rights law and United States 
Department of Agriculture (USDA) civil rights regulations and policies, 
the USDA, its Agencies, offices, and 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, family/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 a complaint 
form, call, (866) 632-9992. Submit your completed form or letter to 
USDA by:
    (1) Mail: United States Department of Agriculture, Office of the 
Assistant Secretary for Civil Rights, 1400

[[Page 32413]]

Independence Avenue SW, Washington, DC 20250-9410;
    (2) Fax: (202) 690-7442; or
    (3) Email at: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Bruce W. Lammers,
Administrator, Rural Housing Service.
[FR Doc. 2019-14390 Filed 7-5-19; 8:45 am]
BILLING CODE 3410-XV-P