[Federal Register Volume 87, Number 102 (Thursday, May 26, 2022)]
[Notices]
[Pages 31976-31982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11274]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service

[Docket No. RHS-22-SFH-0008]


Notice of Solicitation of Applications for the Section 533 
Housing Preservation Grants for Fiscal Year 2022

AGENCY: Rural Housing Service, Agriculture (USDA).

ACTION: Notice.

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SUMMARY: The Rural Housing Service (Agency), a Rural Development (RD) 
agency of the United States Department of Agriculture (USDA), announces 
that it is soliciting competitive preapplications under the Housing 
Preservation Grant (HPG) program for fiscal year (FY) 2022, to make 
available grant funds to sponsoring organizations for the repair or 
rehabilitation of housing owned or occupied by low- and very-low-income 
rural citizens under the HPG Program. The purpose of this notice is to 
announce the opening and closing dates for receipt of preapplications 
for HPG funds from eligible applicants, as well as submission 
requirements. Expenses incurred in developing preapplications will be 
at the applicant's cost.

DATES: Completed applications for grants must be submitted according to 
the deadlines outlined below. RHS will not consider any preapplications 
that are received after the closing deadline regardless of the 
submission method used.
    [ssquf] Paper submissions: Completed paper preapplications must be 
received in the USDA RD State Office no later than 4:30 p.m. on July 
11, 2022.
    [cir] Applicants intending to submit paper preapplications using 
the U.S. Postal Service (USPS) must provide sufficient time to permit 
delivery on or before the closing deadline date.
    [cir] Acceptance by the USPS or private mailer does not constitute 
delivery.
    [cir] Postage due preapplications will not be accepted
    [ssquf] Electronic submissions: Completed electronic 
preapplications may be submitted using one of the following two methods 
and must be received by the USDA RD State Office no later than 4:30 
p.m. on July 11, 2022:
    [ssquf] Email: To submit preapplications by email, contact the 
Single-Family Housing Program Director in the RD State Office http://www.rd.usda.gov/contact-us/state-offices. Emailed submissions must be 
encrypted and/or password protected to ensure personally identifiable 
information is secure.
    [ssquf] Grants.gov: Instructions for submitting preapplications to 
Grants.gov may be found at the following website: https://www.grants.gov

ADDRESSES: Entities that want to apply for assistance may download the 
application documents and requirements outlined in this notice from: 
https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants. Applicants will also find the 
requirements in the HPG program regulation found in 7 CFR 1944 (Subpart 
N).
    Application information for electronic submissions to Grants.gov 
may be found at the following website: http://www.Grants.gov.
    Applicants may also request paper application packages from the RD 
State offices. Contact information can be found at: https://www.rd.usda.gov/about-rd/state-offices.

FOR FURTHER INFORMATION CONTACT: Mandy Couture, Finance and Loan 
Analyst, Single Family Housing Direct Division, Special Programs and 
New Initiatives Branch at (515) 418-2188 (voice) (this is not a toll-
free number) or email: [email protected]. You may also contact the 
RD office for the state in which the applicant is located. A list of RD 
State Office contacts is provided at: https://www.rd.usda.gov/about-rd/state-offices.

[[Page 31977]]


SUPPLEMENTARY INFORMATION:

Authority

    This solicitation is authorized pursuant to the Consolidated 
Appropriations Act of 2022; 42 U.S.C. 1490m; Public Law 117-103; and 7 
CFR 1944, subpart N.

Rural Development: Key Priorities

    The Agency encourages applicants to consider projects that will 
advance the following key priorities:
     Assisting rural communities recover economically from the 
impacts of the COVID-19 pandemic, particularly disadvantaged 
communities;
     Ensuring all rural residents have equitable access to RD 
programs and benefits from RD funded projects; and
     Reducing climate pollution and increasing resilience to 
the impacts of climate change through economic support to rural 
communities.
    Additional information regarding RD's funding priorities is 
available at the following website: https://www.rd.usda.gov/priority-points.

Overview

    Federal Agency Name: Rural Housing Service (RHS).
    Funding Opportunity Title: Housing Preservation Grants (HPG).
    Announcement Type: Notice of Solicitation of Applications (NOSA).
    Assistance Listing (formerly CFDA): 10.433.
    Funding Opportunity Number: USDA-RD-HCFP-HPG-2022.
    Due Date for Applications: Preapplications must be submitted no 
later than 4:30 p.m. on July 11, 2022 using one of the following 
methods:
    [ssquf] Paper submissions: The deadline for completed paper 
preapplications to be received in the USDA RD State Office. Please 
refer to the DATES and ADDRESSES sections of this notice for further 
information.
    [ssquf] Electronic submissions: Completed electronic 
preapplications must be received by email or submitted to Grants.gov. 
Please refer to the DATES and ADDRESSESS sections of this notice for 
further information.
    [ssquf] Expenses incurred in developing grant application packages 
will be at the applicant's cost.
    Other Information:
    Definitions: The definitions applicable to this notice may be found 
at 7 CFR 1944.656.
    [ssquf] Preapplication Awards: The Agency will review, evaluate, 
and score preapplications in response to this notice based on the 
provisions in 7 CFR 1944.679 and as indicated in this notice. However, 
the Agency advises all interested parties that the applicant bears the 
burden of cost in preparing and submitting a complete preapplication in 
response to this notice

A. Background

    USDA's RD Agencies, comprised of the Rural Business-Cooperative 
Service (RB-CS), Rural Housing Service (RHS), and the Rural Utilities 
Service (RUS), are leading the way in helping rural America improve the 
quality of life and increase the economic opportunities for rural 
people.
    RHS offers a variety of programs to build or improve housing and 
essential community facilities in rural areas. The Agency offers loans, 
grants, and loan guarantees for single- and multi-family housing, 
child-care centers, fire and police stations, hospitals, libraries, 
nursing homes, schools, first responder vehicles and equipment, housing 
for farm laborers and much more. Additionally, RHS programs provide 
technical assistance loans and grants in partnership with non-profit 
organizations, Indian tribes, state and Federal government agencies, 
and local communities.

B. Program Description

    The HPG program is a grant program administered by the Single 
Family Housing program of RHS. It is limited to eligible rural areas 
and to qualified entities (such as public agencies, private non-profit 
organizations, and federally recognized tribes). Grant funds can be 
used to assist low- and very low-income homeowners in repairing and 
rehabilitating their homes in rural areas.
    The program assists cooperative housing complexes and rental 
property owners in rural areas in repairing and rehabilitating their 
units if they agree to make such units available to very low- and low-
income persons. Rental property owners can include Section 515 rental 
properties if the eligibility requirements are met for the HPG program. 
In accordance with 7 CFR 1944.663, rental property owners must agree to 
make the units repaired or rehabilitated available for occupancy to 
very low- or low-income persons for a period of not less than five 
years. The minimum five-year rent restriction for very low- and low-
income tenants will only apply to the units that are repaired with the 
HPG funding. Any units within the property that were not repaired with 
HPG funding will not be subject to the five-year restriction.

C. Federal Award Information

    Type of Assistance Instrument: The funding instrument for the HPG 
program will be a grant agreement. The term of the grant can vary from 
one to two years, depending on available funds and demand. No maximum 
or minimum grant levels have been established at the National level. 
Applicants should contact the RD State Office to determine the 
allocation for their state.
    The Consolidated Appropriations Act of 2022 (Pub. L. 117-103) 
established a set-aside for grants located in Rural Economic Area 
Partnership Zones (REAP Zones). The State Office will indicate on the 
list submitted to the National Office if the preapplication is eligible 
for the REAP Zones set-aside. The National Office will then compile a 
national list, rank the REAP Zones applicants based on the point 
allocations set forth in this Federal Register Notice, and distribute 
the HPG REAP Zones set-aside starting with the highest scoring eligible 
HPG REAP Zones applicants. Other funds will be distributed under a 
formula allocation to States pursuant to 7 CFR part 1940, subpart L, 
``Methodology and Formulas for Allocation of Loan and Grant Program 
Funds'' Sec.  1940.578. Decisions on funding will be based on 
preapplication scores (see, 7 CFR 1944.679 (b)).
    Type of Awards: Grants will be made to eligible entities who will 
then provide funds that can be used to assist low- and very low-income 
homeowners in repairing and rehabilitating their homes in rural areas.
    Available Funds: Once determined, the FY 22 funding amount will be 
posted on the Agency website: https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants.
    Award Amount: No organization may be awarded more than \1/2\ of a 
state's allocation, according to Sec.  1944.680. Award amounts 
available in FY 2022 have not been finalized.
    Due Date for Applications: July 11, 2022.

D. Eligibility Information

    1. Eligible Applicants. Eligible entities for these competitively 
awarded grants include State and local governments; non-profit 
corporations, which may include, but not be limited to Faith-Based and 
community organizations; federally recognized Indian Tribes; and 
consortia of eligible entities. HPG applicants who were previously 
selected for HPG funds are eligible to submit new preapplications to 
apply for FY 2022 HPG program funds. An additional HPG grant may be 
made when the grantee has achieved or nearly achieved the goals 
established for the previous or existing grant. The commitment of 
program dollars will be

[[Page 31978]]

made to selected applicants who have fulfilled the necessary 
requirements for obligations. Eligibility requirements can be found at 
7 CFR 1944.658, 1944.661, 1944.662, and 1944.686.
    2. Cost Sharing or Matching. Pursuant to 7 CFR 1944.652, grantees 
are expected to coordinate and leverage funding for repair and 
rehabilitation activities; as well as replacement housing, with housing 
and community development organizations or activities operating in the 
same geographic area. While it is encouraged that HPG funds be 
leveraged with other resources, cost sharing or matching is not a 
requirement for the HPG applicant as the HPG applicant would not be 
denied an award of HPG funds if all other project selection criteria 
have been met.
    3. Other. Awards made under this Notice are subject to the 
provisions contained in the Consolidated Appropriations Act, 2022 (Pub. 
L. 117-103) sections 744 and 745, Division E ``Financial Services and 
General Government Appropriations Act, 2022, Title VII ``General 
Provisions--Government-wide,'' regarding Corporate Felony Convictions 
and Corporate Federal Tax Delinquencies. To comply with these 
provisions, only applicants that are or propose to be, corporations 
will submit this form as part of their preapplication. There are no 
limits on proposed direct and indirect costs. Expenses incurred in 
developing preapplications will be at the applicant's cost.

E. Application and Submission Information

    I. Application Requirements: All requirements for submission of a 
pre-application under the Housing Preservation Program are subject to 7 
CFR 1944, subpart N. The Agency requires applicants to submit the 
following information to make an eligibility determination:
    1. A preapplication package;
    (i) A downloadable preapplication package for this program is 
available by accessing the website: Grants.gov by using a keyword, the 
program name, or Assistance Listing (formerly CFDA)10.433.
    (ii) Users of Grants.gov will be able to download a copy of the 
preapplication package, complete it offline, and then upload and submit 
the preapplication via the Grants.gov site.
    Note: Preapplications will not be considered for funding if they do 
not provide sufficient information to determine eligibility or are 
missing required elements.
    2. SF-424;
    (i) Made available by contacting any RD State Office at the 
website: http://www.rd.usda.gov/contact-us/state-offices; or
    (ii) Grants.gov at the following website: https://www.grants.gov.
    3. A statement of activities proposed by the applicant for its HPG 
program as appropriate to the type of assistance the applicant is 
proposing, including:
    (i) A complete discussion of the type of and conditions for 
financial assistance for housing preservation, including whether the 
request for assistance is for a homeowner assistance program, a rental 
property assistance program, or a cooperative assistance program.
    (ii) The process for selecting recipients for HPG assistance, 
determining housing preservation needs of the dwelling, performing the 
necessary work, and monitoring/inspecting work performed.
    (iii) A description of the process for coordinating with other 
public and private organizations and programs that provide assistance 
in rehabilitation of historic properties in accordance with 7 CFR 
1944.673.
    (iv) The development standard(s) the applicant will use for the 
housing preservation work; and, if not the RD standards for existing 
dwellings, the evidence of its acceptance by the jurisdiction where the 
grant will be implemented.
    (v) The time schedule for completing the program.
    (vi) The staffing required to complete the program.
    (vii) The estimated number of very low- and low-income minority and 
non-minority persons the grantee will assist with HPG funds; and, if a 
rental property or cooperative assistance program, the number of units 
and the term of restrictive covenants on their use for very low- and 
low-income.
    (viii) The geographical area(s) to be served by the HPG program.
    (ix) The annual estimated budget for the program period based on 
the financial needs to accomplish the objectives outlined in the 
proposal. The applicant can use SF-424a to provide this information.
    (x) A copy of an indirect cost proposal/rate or direct cost policy 
when the applicant has another source of federal funding in addition to 
the RD HPG program.
    (xi) A brief description of the accounting system to be used.
    (xii) The method of evaluation to be used by the applicant to 
determine the effectiveness of its program which encompasses the 
requirements for quarterly reports to RD in accordance with 7 CFR 
1944.683(b) and the monitoring plan for rental properties and 
cooperatives (when applicable) according to 7 CFR 1944.689.
    (xiii) The source and estimated amount of other financial resources 
to be obtained and used by the applicant for both HPG activities and 
housing development and/or supporting activities.
    (xiv) The use of program income; if any, and the tracking system 
used for monitoring same.
    (xv) The applicant's plan for disposition of any security 
instruments held by them as a result of its HPG activities in the event 
of its loss of legal status.
    (xvi) Any other information necessary to explain the proposed HPG 
program.
    (xvii) The outreach efforts outlined in 7 CFR 1944.671(b).
    4. Experience: Complete information about the applicant's 
experience and capacity to carry out the objectives of the proposed HPG 
program 7 CFR 1944.676(b)(2).
    5. Evidence of Legal Existence: Evidence of the applicant's legal 
existence, including, in the case of a private non-profit organization, 
a copy of, or an accurate reference to, the specific provisions of 
state law under which the applicant is organized; a certified copy of 
the applicant's Articles of Incorporation and Bylaws or other evidence 
of corporate existence; certificate of incorporation for applicants 
other than public bodies; evidence of good standing from the state when 
the corporation has been in existence one year or more; and the names 
and addresses of the applicant's members, directors and officers. If 
other organizations are members of the applicant-organization, or the 
applicant is a consortium, preapplications should be accompanied by the 
names, addresses, and principal purpose of the other organizations. If 
the applicant is a consortium, documentation showing compliance with 
paragraph (4)(ii) under the definition of ``organization'' in 7 CFR 
1944.656 must also be included.
    6. Audited and Financial Statements: For a private non-profit 
entity, the most recent audited statement and a current financial 
statement dated and signed by an authorized officer of the entity 
showing the amounts and specific nature of assets and liabilities 
together with information on the repayment schedule and status of any 
debt(s) owed by the applicant. If the applicant is an organization 
being assisted by another private non-profit organization, the same 
type of financial statement should also be provided by that 
organization.

[[Page 31979]]

    7. Narrative Statement: A brief narrative statement which includes 
information about the area to be served and the need for improved 
housing (including both percentage and the actual number of both low-
income and low-income minority households and substandard housing), the 
need for the type of housing preservation assistance being proposed, 
the anticipated use of HPG resources for historic properties, the 
method of evaluation to be used by the applicant in determining the 
effectiveness of its efforts.
    8. Alleviating Overcrowding Statement: A statement containing the 
component for alleviating any overcrowding as defined by 7 CFR 
1944.656.
    9. List of Other Activities: A list of other activities the 
applicant is engaged in and expects to continue, a statement as to any 
other funding, and whether it will have sufficient funds to assure 
continued operation of the other activities for at least the period of 
the HPG grant agreement.
    10. Project Selection Criteria: Other information necessary to 
address the selection criteria in Sec.  1944.679.
    11. Environmental Compliance Agreement: The applicant must submit 
1970-A Exhibit H ``Multi-tier Action Environmental Compliance 
Agreement''.
    12. Public Participation and Intergovernmental Review: 
Intergovernmental Review. In accordance with 7 CFR 1944.674 (c), the 
HPG program is subject to the provisions of Executive Order 12372, 
which requires intergovernmental consultation with state and local 
officials. Preapplications from Federally recognized Indian tribes are 
not subject to this requirement.
    (i) The applicant must submit written statements and related 
correspondence reflecting compliance with 7 CFR 1944.674(a) regarding 
consultation with local leaders from the county, parish, and/or 
township governments of the area where the HPG activities will take 
place for the purpose of assuring that the proposed HPG program is 
beneficial and does not duplicate current activities. American Indian 
non-profit organization applicants should obtain the written 
concurrence of the tribal governing body in lieu of consulting with the 
county governments with the program is operated only on tribal land.
    (ii) The applicant is to make its statement of activities available 
to the public for comment prior to submission to RD pursuant to 7 CFR 
1944.674(b). The applicant(s) must announce the availability of its 
statement of activities for review in a print or online newspaper of 
general circulation in the project area and allow at least 15 days for 
public comment. The start of this 15-day period must occur no later 
than 16 days prior to the last day for acceptance of preapplications by 
USDA RD. Federally recognized Indian Tribes, pursuant to 7 CFR 
1944.674, should obtain the written concurrence of the tribal governing 
body in lieu of consulting with the county governments when the program 
is operated only on tribal land. The preapplication must contain a 
description of how the comments (if any were received) were addressed.
    13. Equal Opportunity Agreement: The applicant must submit an 
original of Form RD 400-1, ``Equal Opportunity Agreement'' and Form RD 
400-4, ``Assurance Agreement'' in accordance with 7 CFR 1944.676.
    Applicants should review 7 CFR part 1944, subpart N for a 
comprehensive list of all application requirements. Preapplications 
will not be considered for funding if they do not provide sufficient 
information to determine eligibility or are missing required elements.
    II. Submission Information: The following information provides 
applicant submission information:
    1. Address to Request Application Package. Please refer to the 
ADDRESSES section in this notice.
    2. Content and Form of Application Submission. Applicants may 
submit a preapplication in paper form or electronically (i.e., emailed 
to the applicable Single Family Housing Program Director in the RD 
State Office or transmitted via Grants.gov). Preapplications must 
contain all required information using only one of the submission 
methods. Applications that are submitted in paper form must have all 
forms that requires signatures contain an original signature. For 
emailed preapplications, a digital signature is acceptable.
    For preapplications transmitted via Grants.gov, applicants must 
follow the instructions for this funding announcement at: https://www.grants.gov:
    (i) When entering the Grants.gov website, applicants will find 
information about applying electronically through the site. As well as 
the hours of operation. Documents submitted electronically through 
Grants.gov must include electronic signatures. Original signatures may 
be required if funds are awarded.
    (ii) After applying electronically through Grants.gov, applicants 
will receive an automatic acknowledgement from Grants.gov that contains 
a Grants.gov tracking number.
    Note: Applicants that submit a paper preapplication may send it to 
the State Office located in the state where the proposed HPG housing 
project will take place. Applicants can find State Office contact 
information at: https://www.rd.usda.gov/contact-us/state-offices. The 
State Office will date, and time stamp incoming paper preapplications 
to evidence timely receipt and upon request and will provide the 
applicant with a written acknowledgment of receipt.
    Applicants that receive a grant award under this Notice, USDA 
reserves the right to post all information that is not protected by the 
Privacy Act submitted as part of the preapplication/application package 
on a public website with free and open access to any member of the 
public.
    3. System for Award Management and Unique Entity Identifier:
    (i) At the time of application, each applicant must have an active 
registration in the System for Award (SAM) before submitting its 
application in accordance with 2 CFR 25. To register in SAM, entities 
will be required to create a Unique Entity Identifier (UEI). 
Instructions for obtaining the UEI are available at https://sam.gov/content/entity-registration.
    (ii) Applicants must maintain an active SAM registration, with 
current, accurate and complete information, at all times during which 
it has an active Federal award or an application under consideration by 
a federal awarding agency.
    (iii) Applicants must ensure they complete the Financial Assistance 
General Certifications and Representations in SAM.
    (iv) Applicants must provide a valid UEI in its application, unless 
determined exempt under 2 CFR 25.110.
    (v) The Agency will not make an award until the applicant has 
complied with all SAM requirements including providing the UEI. If an 
applicant has not fully complied with the requirements by the time the 
Agency is ready to make an award, the Agency may determine that the 
applicant is not qualified to receive a federal award and use that 
determination as a basis for making a Federal award to another 
applicant.
    4. Submission Dates and Times. Completed applications for grants 
must be submitted according to the following deadlines and other 
instructions in the DATES section of this notice.
    5. Funding Restrictions: There are no limits on proposed direct and 
indirect costs. Expenses incurred in developing

[[Page 31980]]

preapplications will be at the applicant's cost.

E. Pre-Application Review Information

    1. Criteria. All eligible and complete preapplications for Section 
533 HPG funds must be filed with the appropriate RD State Office and 
all paper or electronic preapplications must meet the requirements of 
this Notice and 7 CFR part 1944, subpart N. Preapplications determined 
not eligible and/or not meeting the selection criteria will be notified 
by the RD State Office.
    2. Review and Selection Process. RD State Offices will utilize the 
following threshold project selection criteria for applicants in 
accordance with 7 CFR 1944.679:
    (a) Providing a financially feasible program of housing 
preservation assistance. ``Financially feasible'' is defined as 
proposed assistance which will be affordable to the intended recipient 
or result in affordable housing for very low- and low-income persons.
    (b) Serving eligible rural areas with a concentration of 
substandard housing for households of very low- and low-income.
    (c) Being an eligible applicant as defined in 7 CFR 1944.658.
    (d) Meeting the requirements of consultation and public comment in 
accordance with 7 CFR 1944.674.
    (e) Submitting a complete preapplication as outlined in 7 CFR 
1944.676:
    3. Scoring. For applicants meeting all the requirements listed 
above, the RD State Offices will use weighted criteria in accordance 
with 7 CFR part 1944, subpart N as selection for the grant recipients. 
Each preapplication and its accompanying statement of activities will 
be evaluated and, based solely on the information contained in the 
preapplication, the applicant's proposal will be numerically rated on 
each criterion within the range provided. The highest-ranking 
applicant(s) will be selected based on allocation of funds available to 
the state.
    (1) Points are awarded based on the percentage of very low-income 
persons that the applicant proposes to assist, using the following 
scale:

(i) More than 80%: 20 points
(ii) 61% to 80%: 15 points
(iii) 41% to 60%: 10 points
(iv) 20% to 40%: 5 points
(v) Less than 20%: 0 points

    (2) The applicant's proposal may be expected to result in the 
following percentage of HPG fund use (excluding administrative costs) 
to total cost of unit preservation. This percentage reflects maximum 
repair or rehabilitation with the least possible HPG funds due to 
leveraging, innovative financial assistance, owner's contribution, or 
other specified approaches. Points are awarded based on the following 
percentage of HPG funds (excluding administrative costs) to total 
funds:

(i) 50% or less: 20 points
(ii) 51% to 65%: 15 points
(iii) 66% to 80%: 10 points
(iv) 81% to 95%: 5 points
(v) 96% to 100%: 0 points

    (3) The applicant has demonstrated its administrative capacity in 
assisting very low- and low-income persons to obtain adequate housing 
based on the following:
    (i) The organization or a member of its staff has at least one or 
more years of experience successfully managing and operating a 
rehabilitation or weatherization type program: 10 points.
    (ii) The organization or a member of its staff has at least one or 
more years of experience successfully managing and operating a program 
assisting very low- and low-income persons obtain housing assistance: 
10 points.
    (iii) If the organization has administered grant programs, there 
are no outstanding or unresolved audit or investigative findings which 
might impair carrying out the proposal: 10 points.
    (4) The proposed program will be undertaken entirely in rural areas 
outside Metropolitan Statistical Areas (MSAs) identified by RD as 
having populations below 10,000 or in remote parts of other rural areas 
(i.e., rural areas contained in MSAs with less than 5,000 population) 
as defined in 7 CFR 1944.656: 10 points.
    (5) The program will use less than 20 percent of HPG funds for 
administration purposes:

(i) More than 20%: Not eligible
(ii) 20%: 0 points
(iii) 19%: 1 point
(iv) 18%: 2 points
(v) 17%: 3 points
(vi) 16%: 4 points
(vii) 15% or less: 5 points

    (6) The proposed program contains a component for alleviating 
overcrowding as defined in 7 CFR 1944.656: 5 points.
    In the event more than one preapplication receives the same number 
of points, those preapplications will then be ranked based on the 
actual percentage figure used for determining the points in item (1) in 
the ``Scoring'' section of this Notice (7 CFR 1944.679 (b)(1)).
    Example of 1st tie-break:

Both Applicants score 80 points
Applicant X's percentage in ``Scoring'' section item (a) is 65%
Applicant B's percentage in ``Scoring'' section item (a) is 75%
Applicant B is ranked higher than Applicant X
Applicant B will be funded before Applicant X

    Further, if preapplications are still tied, then those 
preapplications still tied will be ranked based on the percentage 
figures used for determining the points in item (2) in the ``Scoring'' 
section of this Notice (7 CFR 1944.679 (b)(2)).
    Example of 2nd tie-break:

Both Applicants score 80 points
Both Applicants percentage in ``Scoring'' section item (a) is 65%
Applicant X's percentage in ``Scoring'' section item (b) is 55%
Applicant B's percentage in ``Scoring'' section item (b) is 60%
Applicant X is ranked with a lower percentage than Applicant B
Applicant X will be funded before Applicant B

    Further, 7 CFR 1944.679 (c), for preapplications where HPG 
assistance to rental properties or co-ops is proposed, those still tied 
will be further ranked based on the number of years the units are 
available for occupancy under the program (a minimum of five years is 
required). For this part, ranking will be based from most to least 
number of years.
    Example of 3rd tie-break:

Both Applicants score 80 points
Both Applicants percentage in ``Scoring'' section item (a) is 65%
Both Applicants percentage in ``Scoring'' section item (b) is 55%
Applicant X's rental unit will be available for occupancy under the 
program for10 years
Applicant B's rental unit will be available for occupancy under the 
program for 5 years
Applicant X is ranked higher than Applicant B
Applicant X will be funded before Applicant B

    If any of the applicants that remain tied after the 1st and 2nd 
tie-breaks are offering to assist single family owners, then the 3rd 
tie-break would not be applicable, and a lottery would be used to 
select the applicant to be funded.
    If there is still a tie after the first two [or three, when 
applicable] tie-breaks, then a lottery system will be used to select 
the applicant to be funded. The lottery will be conducted at the 
National Office. The lottery will consist of the names of each 
preapplication 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 Single Family Housing Loan 
Division, in the

[[Page 31981]]

presence of two witnesses, will draw a piece of paper from the 
receptacle. The name on the piece of paper drawn will be the applicant 
to be funded.
    After the award selections are made by the National Office, all 
applicants will be notified of the status of their preapplications by 
email or mail with Form AD-622, ``Notice of Preapplication Review 
Action.'' Applicants will be given their review rights or appeal rights 
in accordance with 7 CFR 1944.682.

F. Federal Award Administration Information

    1. Federal Award Notices. The Agency will notify applicants in 
writing, applicants whose preapplications have been selected for 
funding. At the time of notification, the Agency will advise the 
applicant what further information and documentation is required along 
with a timeline for submitting the additional information. If the 
Agency determines it is unable to select the preapplication for 
funding, the applicant will be informed in writing. Such notification 
will include the reasons the applicant was not selected. The Agency 
will advise applicants, whose preapplications did not meet eligibility 
and/or selection criteria, of their review rights or appeal rights in 
accordance with 7 CFR 1944.682.
    2. Administrative and National Policy Requirements.
    (a) The following additional requirements apply to grantees 
selected for this program:

(i) Form SF-424
(ii) Form RD 1940-1, ``Request for Obligations of Funds''
(iii) RD Instruction 1944-N Exhibit A, ``Grant Agreement''
(iv) Letter of Conditions (if applicable)
(v) Complete Form RD 1942-46, ``Letter of Intent to Meet Conditions'' 
(if applicable)
(vi) 1940-Q Exhibit A-1 (if applicable)
(vii) Form SF 3881, ``ACH Vendor Payment Enrollment Form''
(viii) Form SF 270, ``Request for Advance or Reimbursement''
(ix) Form SF 425, ``Federal Financial Report''
(x) RD Instruction 1944-N Exhibits E-1 and E-2, ``Quarterly (Final) 
Performance Report'' and ``Quarterly (Final Performance Report Guide''
(xi) 1970-B Exhibit D, ``Categorial Exclusion Form''
(xii) RD Instruction 1944-N Exhibits F-1, ``Grantee's Process for 
Identifying Properties Requiring Rural Development Environmental 
Assessments''
(xiii) RD Instruction 2000-FF
(xiv) FEMA Form 086-0-32
(xv) Execute Form SF-LLL, ``Disclosure Form to Report Lobbying'' (if 
applicable)

    The grant recipient must include the required nondiscrimination 
statements in any of their advertisements and brochures. Grantees will 
be required to collect and maintain data provided by recipients on 
race, sex, and national origin and ensure recipients collect and 
maintain this data. Race and ethnicity data will be collected in 
accordance with OMB Federal Register notice, ``Revisions to the 
Standards for the Classification of Federal Data on Race and 
Ethnicity,'' (62 FR 58782), October 30, 1997. Data on recipients' sex 
will be collected in accordance with Title IX of the Education 
Amendments of 1972. These items should not be submitted with the 
application but should be available upon request by the Agency.
    The applicant and the ultimate recipient must comply with Title VI 
of the Civil Rights Act of 1964, Title IX of the Education Amendments 
of 1972, Americans with Disabilities Act (ADA), Section 504 of the 
Rehabilitation Act of 1973, Age Discrimination Act of 1975, Executive 
Order 12250, Executive Order 13166 regarding Limited English 
Proficiency (LEP), and 7 CFR part 1901, subpart E.
    (b) The applicant must provide evidence of compliance with other 
federal statutes, including but not limited to the following:
    (i) Debarment and suspension information is required in accordance 
with 2 CFR part 417 (Nonprocurement Debarment and Suspension) 
supplemented by 2 CFR part 180, if it applies. The section heading is 
``What information must I provide before entering into a covered 
transaction with a Federal agency?'' located at 2 CFR 180.335. It is 
part of OMB's Guidance for Grants and Agreements concerning Government-
wide Debarment and Suspension.
    (ii) 2 CFR parts 200 and 400 (Uniform Administrative Requirements, 
Cost Principles and Audit Requirements for Federal Awards).
    (iii) 2 CFR part 182 (Governmentwide Requirements for Drug-Free 
Workplace (Financial Assistance)) and 2 CFR part 421 (Requirements for 
Drug Free Workplace (Financial Assistance)).
    (iv) Executive Order 13166, ``Improving Access to Services for 
Persons with Limited English Proficiency.'' For information on limited 
English proficiency and agency-specific guidance, go to http://www.lep.gov.
    (v) All applicants will be screened for eligibility to participate 
in the grant program using Treasury's Do Not Pay Portal in compliance 
with the Improper Payments Elimination and Recovery Improvement Act.
    3. Reporting. After grant approval and through grant completion, 
grantee will be required to provide the following on a quarterly basis, 
as indicated in 7 CFR part 1944 Subpart N Exhibit A, ``Grant 
Agreement'':
    (i) SF-425, ``Federal Financial Report.''
    (ii) 1944-N Exhibit E-1, ``Quarterly Performance Report.''
    (iv) Bank statements for interest bearing bank account if grantee 
is getting cash advances.
    Final award reporting requirements can be found in the 1944-N 
Exhibit A, ``Grant Agreement''. Upon grant closeout, the grantee will 
furnish a final SF-425, 1944-N Exhibit E-1, and all financial, 
performance and other reports required as a condition of the grant. The 
grantee will also provide an audit report in accordance with Uniform 
Audit Requirements for Federal Awards at 2 CFR part 200, subpart F.

G. Federal Awarding Agency Contacts

    For general questions about this notice, please contact your USDA 
RD State Office or the program website provided in the ADDRESSES 
section of this notice.

H. Other Information

    A. Paperwork Reduction Act: In accordance with the Paperwork 
Reduction Act of 1995, the information collection requirement contained 
in this notice is approved by the Office of Management and Budget under 
OMB Number 0575-0115.
    B. Federal Funding Accountability and Transparency Act: All 
recipients of Federal financial assistance are required to report 
information about first tier subawards and executive compensation (see 
2 CFR part 170). You will be required to have the necessary processes 
and systems in place to comply with the Federal Funding Accountability 
and Transparency Act of 2006 (Pub. L. 109-282) reporting requirements 
(see 2 CFR 170.200(b), unless you are exempt under 2 CFR 170.110(b)).
    C. National Environmental Policy Act: This Notice has been reviewed 
in accordance with 7 CFR part 1970, Sec.  1970.55, and it has been 
determined that the environmental process for an HPG grant to repair, 
rehabilitate, or replace a dwelling is a multi-tier review. Applicants 
must agree in writing to certain conditions prior to obligation of 
financial assistance by the Agency to the primary recipient (Sec.  
1970.55(a)(1-4)). The applicant must complete and provide the Multi-
Tier Action

[[Page 31982]]

Environmental Compliance Agreement, RD Instruction 1970-A, Exhibit H.
    In accordance with 7 CFR 1970.51 (a)(3) and 1970.55, the 
environmental review is a two-step process: The approval of the 
provision of the grant to the grantee is categorized as a Categorical 
Exclusion without an Environmental Report pursuant to 1970.55.
    The second step is an environmental review performed by the grantee 
of the activity proposed by each ultimate recipient.
    Rural Housing Service has entered into a Programmatic Memorandum of 
Agreement (PMOA) with the National Conference of State Historic 
Preservation Officers and the Advisory Council on Historic Preservation 
to implement the specific requirements regarding historic preservation 
contained in Section 533 of the Housing Act of 1949, 42 U.S.C. 1490(m) 
of the enabling legislation.
    Grantee shall comply with Rural Development's Lead Based Paint 
requirements for Rehabilitation contained in subparts of 24 CFR part 
35, which apply to all HPG rehabilitation activities.
    D. Civil Rights Requirements: All grants made under this notice are 
subject to Title VI of the Civil Rights Act of 1964 as required by the 
USDA (7 CFR part 15, subpart A) and Section 504 of the Rehabilitation 
Act of 1973, Executive Order 13166 regarding Limited English 
Proficiency (LEP), and Executive Order 11246 regarding Equal Employment 
Opportunity.
    E. Non-Discrimination Statement:
    In accordance with Federal civil rights laws and USDA civil rights 
regulations and policies, the USDA, its Mission Areas, agencies, staff 
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, 
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.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; the USDA TARGET 
Center at (202) 720-2600 (voice and TTY); or the Federal Relay Service 
at (800) 877-8339.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/sites/default/files/documents/usda-program-discrimination-complaint-form.pdf from any 
USDA office, by calling (866) 632-9992, or by writing a letter 
addressed to USDA. The letter must contain the complainant's name, 
address, telephone number, and a written description of the alleged 
discriminatory action in sufficient detail to inform the Assistant 
Secretary for Civil Rights (ASCR) about the nature and date of an 
alleged civil rights violation. The completed AD-3027 form or letter 
must be submitted to USDA by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (2) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: [email protected].

Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2022-11274 Filed 5-25-22; 8:45 am]
BILLING CODE 3410-XV-P