[Federal Register Volume 89, Number 77 (Friday, April 19, 2024)]
[Notices]
[Pages 28717-28732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08155]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service

[Docket No. RHS-24-MFH-0010]


Notice of Solicitation of Applications for Section 514 Off-Farm 
Labor Housing Loans and Section 516 Off-Farm Labor Housing Grants for 
New Construction for Fiscal Year 2024

AGENCY: Rural Housing Service, United States Department of Agriculture.

ACTION: Notice of Solicitation of Applications (NOSA).

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SUMMARY: The Rural Housing Service (RHS or Agency), a Rural Development 
(RD) agency of the United States Department of Agriculture (USDA), 
announces that it is soliciting competitive pre-applications for 
Section 514 Off-Farm Labor Housing (Off-FLH) loans and Section 516 Off-
FLH grants for the construction of new Off-FLH units for domestic farm 
laborers, retired domestic farm laborers, or disabled domestic farm 
laborers. The program objective is to increase the supply of affordable 
housing for farm laborers. This Notice describes the method used to 
distribute funds, the pre-application and final application process, 
and submission requirements.

DATES: Eligible pre-applications submitted to the Production and 
Preservation Division, Processing and Report Review Branch, for this 
Notice will be accepted until July 3, 2024, 12:00 p.m., Eastern Time. 
Applications that are deemed eligible but are not selected for further 
processing due to inadequate funding will be withdrawn from processing. 
RHS will not consider any application that is received after the 
established deadlines unless the date and time are extended by another 
Notice published in the Federal Register. The RHS may at any time 
supplement, extend, amend, modify, or supersede this Notice by 
publishing another Notice in the Federal Register. Additional 
information about this funding opportunity can be found on the 
Grants.gov website at http://www.grants.gov.
    The application deadlines are as follows:
    1. Available loan and grant funding posted to the RHS Multifamily 
Housing (MFH) website by April 19, 2024.
    2. Pre-applications must be submitted by July 3, 2024, 12 p.m., 
Eastern Time.
    3. RHS pre-application notice to proceed and non-selection 
notifications to applicants by September 3, 2024.
    4. Final applications must be submitted by October 16, 2024, 12 
p.m., Eastern Time.
    5. Awards communicated to applicants by December 16, 2024.
    6. Awards posted to the RHS website by January 14, 2025.

ADDRESSES: Applications to this Notice must be submitted electronically 
to the Production and Preservation Division, Processing and Report 
Review Branch.
    At least three business days prior to the application deadline, the 
applicant must email the RHS a request to create a shared folder in 
CloudVault. The email must be sent to the following address: usda.gov">Off-FLHapplication@usda.gov. The email must contain the following 
information:
    1. Subject line: ``Off-FLH New Construction Application 
Submission.''
    2. Body of email: Borrower Name, Project Name, Borrower Contact 
Information, Project State.
    3. Request language: ``Please create a shared CloudVault folder so 
that we may submit our new construction application documents.''
    Once the email request to create a shared CloudVault folder has 
been received, a shared folder will be created within two business 
days. When the shared CloudVault folder is created by the RHS, the 
system will automatically send an email to the applicant's submission 
email address with a link to the shared folder. All required 
application documents in accordance with this Notice must be loaded 
into the shared CloudVault folder. The applicant's access to the shared 
CloudVault folder will be removed when the submission deadline is 
reached. Any document uploaded to the shared CloudVault folder after 
the application deadline will not be reviewed or considered. Please 
note: CloudVault is a USDA[hyphen]approved cloud[hyphen]based file 
sharing and synchronization system. CloudVault folders are neither 
suitable nor intended for file storage due to agency file retention 
policies and space limitations. Therefore, the agency will remove all 
application-related files stored in shared CloudVault folders the 
latter of either 180 days from the application date, or once the 
application has been processed and the transaction has been closed.

FOR FURTHER INFORMATION CONTACT: Jonathan Bell, Branch Director, 
Processing and Report Review Branch, Production and Division, 
Multifamily Housing Programs, Rural Development, United States 
Department of Agriculture, via email: usda.gov">MFHprocessing1@usda.gov or phone 
at: 202-205-9217.

SUPPLEMENTARY INFORMATION:

[[Page 28718]]

Authority

    This solicitation is authorized pursuant to the Title V of the 
Housing Act of 1949 (Pub. L. 81-171), as amended; 7 CFR 3560, subpart 
L; 42 U.S.C. 1484; 42 U.S.C. 1486; and 42 U.S.C. 1480.

RD: Key Priorities

    RD will continue to support and promote activities and investments 
that will achieve the following:
    1. Creating More and Better Market Opportunities: Assisting rural 
communities recover economically through more and better market 
opportunities and through improved infrastructure.
    2. Addressing Climate Change and Environmental Justice: Reducing 
climate pollution and increasing resilience to the impacts of climate 
change through economic support for rural communities.
    3. Advancing Racial Justice, Place-Based Equity, and Opportunity: 
Ensuring all rural residents have equitable access to RD programs and 
benefits from RD funded projects. For further information, visit 
https://www.rd.usda.gov/priority-points.

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 also 
offers loans, grants, and loan guarantees for single-family 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. The Agency also 
provides technical assistance loans and grants in partnership with non-
profit organizations, Indian tribes, state and Federal government 
agencies, and local communities.
    Sections 514 and 516 of the Housing Act of 1949 allows the RHS to 
provide competitive loan financing and grants, respectively, for 
affordable multifamily rental housing. Funds will be used to construct 
new Off-FLH properties to serve domestic farm laborers, retired 
domestic farm laborers, or disabled domestic farm laborers.
    To focus investments in areas where the need for increased 
prosperity is greatest, the RHS will set aside 10 percent of the 
available funds for applications that will serve persistent poverty 
counties. The term ``persistent poverty counties'' means any county 
that has had 20 percent or more of its population living in poverty 
over the past 30 years, as measured by the 1990 and 2000 decennial 
censuses and 2007-2011 American Community Survey 5-year average, or any 
territory or possession of the United States. Information on which 
counties are considered persistent poverty counties can be found 
through using the following link (Persistent Poverty Counties 
(arcgis.com) provided by the USDA's RD Innovation Center. Set-aside 
funds will be awarded in point score order, starting with the highest 
score. 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 the RHS does not receive 
enough eligible applications to fully utilize the 10 percent set aside 
in the service of these areas, the RHS will award any unused set aside 
funds to other eligible applicants.

Overview

    Federal Agency: Rural Housing Service.
    Funding Opportunity Title: Notice of Solicitation of Applications 
for Section 514 Off-Farm Labor Housing Loans and Section 516 Off-Farm 
Labor Housing Grants for New Construction for Fiscal Year 2024.
    Funding Opportunity Number: USDA-RD-HCFP-OFFFLH-NEW-2024.
    Available Funds: Available loan and grant funding amounts for new 
construction can be found at the following link: https://www.rd.usda.gov/programs-services/farm-labor-housing-direct-loans-grants.
    Maximum Award: All awards are subject to the availability of 
funding. Total Award amounts for Section 514 loans and Section 516 
grants under this notice for Off-FLH may not exceed the per unit, as 
adjusted by number of bedrooms, Basic Statutory Mortgage Limits 
published by the U.S. Department of Housing & Urban Development for the 
221(d)(4) program for elevatored building as follows:

               Section 221(d)(4)--Moderate Income Housing
------------------------------------------------------------------------
                                                                Per unit
                           Bedrooms                              limit
------------------------------------------------------------------------
0............................................................    $66,591
1............................................................     76,340
2............................................................     92,831
3............................................................    120,090
4+...........................................................    131,826
------------------------------------------------------------------------

    The maximum award per selected project may not exceed $5 million 
(total loan and grant).
    Announcement Type: Request for applications from qualified 
applicants for Fiscal Year 2024.
    Assistance Listing Number: 10.405.
    Please Note: Expenses incurred in developing applications will be 
at the applicant's sole risk.

A. Federal Award Description

    1. A state will not receive more than 30 percent of the Off-FLH 
funding (excluding awards made to Federally Recognized Tribes or 
Tribally Designated Housing Entities) 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. The allocation of these funds may result in a 
state or states exceeding the 30 percent limitation.
    2. Section 516 Off-FLH grants must not exceed the limits set forth 
in 7 CFR 3560.562(c). Total Development Cost (TDC) is defined in 7 CFR 
3560.11. Section 514 Off-FLH loans may not exceed the limits set forth 
in 7 CFR 3560.562(b).
    3. All award commitments will be valid for a period of twelve 
months. Applicants dependent upon third-party funding, including but 
not limited to local, state, and federal resources through competitive 
and noncompetitive application rounds, must obtain and submit to the 
Agency a firm commitment letter for those funds, upon receipt, but no 
later than the twelve-month time frame, as specified in the award 
commitment. An extension of the award commitment of up to six months 
may be given, at the sole discretion of the Agency, and will be based 
on project viability, current program demand, and availability of 
program funds. Applicants unable to satisfy this condition of the award 
commitment will be subject to having the award rescinded and will be 
required to reapply in future funding announcements.
    4. A firm commitment letter is defined as a lender's unqualified 
pledge to the borrower that they have passed their underwriting 
guidelines, and they

[[Page 28719]]

are willing to offer the borrower a loan and/or grant under specified 
terms. The letter validates that the borrower's financing has been 
fully approved and that the lender is prepared to close the 
transaction. Preliminary commitment letters, term sheets, or any other 
letter from the lender that does not meet the definition above will not 
be considered a firm commitment letter and will not meet the 
requirements specified in this Notice.
    5. Rental Assistance (RA) and Operating Assistance (OA) may be 
available for projects funded under this Notice, subject to the 
availability of funds. OA is described in 7 CFR 3560.574 and may be 
used in lieu of tenant-specific RA in Off-FLH projects financed under 
Section 514 or Section 516(i) of the Housing Act of 1949 (42 U.S.C. 
1484 and 1486(i) respectively) that serve migrant farmworkers as 
defined in 7 CFR 3560.11. Owners of eligible projects may choose 
tenant-specific RA as described in Sec.  3560.573 or OA, or a 
combination of both, however, any tenant or unit assisted under Sec.  
3560.574 may not receive rental assistance under Sec.  3560.573. To 
request RA and/or OA, applicants must submit form RD 3560-25, Initial 
Request for Rental Assistance or Operating Assistance.
    6. To maximize the use of the limited supply of FLH funds, the RHS 
may contact eligible applicants selected for an award with proposals to 
modify the transaction's proportions of loan and grant funds. Such 
applicants will be contacted in point score order, starting with the 
highest score. In addition, if funds remain after the highest scoring 
eligible applications are selected for awards, the RHS may contact 
those eligible applicants selected for the awards, in point score 
order, starting with the highest score, to ascertain whether those 
respondents will accept the remaining funds.
    7. To enhance customer service and the transparency of this 
program, RHS will publish a list of awardees and the loan and/or grant 
amounts of their respective awards in accordance with the dates listed 
in this Notice. This information can be found at: https://www.rd.usda.gov/programs-services/farm-labor-housing-direct-loans-grants. RHS reserves the right to post all information submitted as 
part of the pre-application and final application package that is not 
protected under the Privacy Act on a public website with free and open 
access to any member of the public.

B. Eligibility Information

1. Housing Eligibility

    Housing that is constructed with FLH loans and/or grant funds must 
meet RHS's design and construction standards contained in 7 CFR part 
1924, subparts A and C. All projects must comply with current building 
codes and standards. Better building performance efforts are rewarded 
in the section Building Performance and Climate Resilience under 
section (12) Addressing Climate Change and Environmental Justice. Once 
constructed, Off-FLH must be managed in accordance with 7 CFR part 
3560. In addition, Off-FLH must be operated on a non-profit basis and 
tenancy must be open to all qualified domestic farm laborers, 
regardless of 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, handling, or processing of agricultural or aqua 
cultural commodities, and also includes the person's family.

2. Tenant Eligibility

    Tenant eligibility is limited to persons who meet the definition of 
a ``domestic farm laborer,'' a ``disabled domestic farm laborer,'' or a 
``retired domestic farm laborer'' as defined in Section 514(f)(3) of 
the Housing Act of 1949, as amended (42U.S.C. 1484(f)(3)).
    Section 514(f)(3)(A) of the Housing Act of 1949 (42 U.S.C. 
1484(f)(3)(A)) hasbeen amended to extend FLH tenant eligibility to 
agricultural workers legally admitted to theUnited States and 
authorized to work in agriculture.
    Owners are responsible for verifying tenant income eligibility. 
Only very-low or low-income households are eligible for the operating 
assistance rents or RA. Households with incomes above the low-income 
limits must pay the full rent.
    In accordance with 7 CFR 3560.554, off-farm labor housing may be 
used to serve migrant farmworkers, as defined in 7 CFR 3560.11. 
Migrants or migrant agricultural laborer is a person (and the family of 
such person) who receives a substantial portion of his or her income 
from farm labor employment and who establishes a residence in a 
location on a seasonal or temporary basis, in an attempt to receive 
farm labor employment at one or more locations away from their home 
base state, excluding day-haul agricultural workers whose travels are 
limited to work areas within one day of their residence.
    Seasonal housing is housing that is operated on a seasonal basis, 
typically for migrants or migrant agricultural laborers as opposed to 
year-round. Off- FLH loan and grant funds may be used to provide 
facilities for seasonal or temporary residential use with appropriate 
furnishings and equipment. A temporary residence is a dwelling which is 
used for occupancy, usually for a short period of time, but is not the 
legal residence for the occupant.
    The design and construction requirements established in Sec.  
3560.60 apply to all applications for Off-FLH loans and grants except 
that seasonal Off-FLH that will be occupied for eight months or less 
per year by migrant farmworkers while they are away from their 
residence, may be constructed in accordance with Exhibit I of 7 CFR 
part 1924, subpart A.
    For Off-FLH operating on a seasonal basis, the management plan must 
establish specific opening and closing dates.
    Off-FLH is subject to the tenant contribution and rental unit rent 
requirements for Plan II housing established under 7 CFR part 3560, 
subpart E, except where seasonal housing will be occupied for less than 
a three-month period. In such instances the best available and 
practical income verification methods may be used with prior approval 
of RHS.
    For housing rented to farm laborers and owned by public bodies, 
public or private nonprofit organizations, and limited partnerships, 
when charging rent, households must meet the income requirements 
outlined in 7 CFR 3560.576(b)(2)(i)(A).

3. Applicant Eligibility

    (a) To be eligible to receive a Section 514 loan for Off-FLH, the 
applicant must meet the requirements of 7 CFR 3560.555(a) and (1) be a 
broad-based non-profit organization, a non-profit organization of 
farmworkers, a Federally recognized Indian tribe, a community 
organization, or an Agency or political subdivision of state or local 
Government, and must meet the requirements of Sec.  3560.55, excluding 
Sec.  3560.55(a)(6), or (2) be a limited partnership with a non-profit 
general partner which meets the requirements of Sec.  3560.55(d). A 
broad-based non- profit organization is a non-profit organization that 
has a membership that reflects a variety of interests in the area where 
the housing will be located.
    (b) To be eligible to receive a Section 516 grant for Off-FLH, the 
applicant must meet the requirements of 7 CFR

[[Page 28720]]

3560.555(b) and (1) be a broad-based non- profit organization, a non-
profit organization of farmworkers, a federally recognized Indian 
tribe, a community organization, or an agency or political subdivision 
of State or local Government, and must meet the requirements of Sec.  
3560.55, excluding Sec.  3560.55(a)(6), and (2) be able to contribute 
at least one-tenth of the total FLH development cost from its own or 
other resources. A broad-based non- profit organization is a non-profit 
organization that has a membership that reflects a variety of interests 
in the area where the housing will be located . The applicant's 
contribution must be available at the time of the grant closing. An 
Off-FLH loan financed by RHS may be used to meet this requirement, 
however, an RHS grant cannot be used to meet this requirement. Limited 
partnerships with a non-profit general partner are eligible for Section 
514 loans; however, they are not eligible for Section 516 grants.
    (c) The applicant must be unable to provide the necessary housing 
from their own resources and be unable to obtain credit from any other 
source upon terms and conditions which the applicant could reasonably 
be expected to fulfill.
    (d) Broad-based non-profit organizations must have a membership 
that reflects a variety of interests in the area where the housing will 
be located.

4. 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, Timing of the environmental review process. 
Please note, the environmental information must be submitted by the 
applicant to RHS. RHS must review and determine that the environmental 
information is acceptable before the obligation of funds;
    (e) 7 CFR part 3560, regarding the loan and grant authorities of 
the Off-FLH program;
    (f) 7 CFR part 1924, subpart A, regarding the planning and 
performing of construction and other development;
    (g) 7 CFR part 1924, subpart C, regarding the planning and 
performing of site development work;
    (h) For construction utilizing a Section 516 grant, the provisions 
of the Davis-Bacon Act (40 U.S.C. chapter 31, subchapter IV) and 
implementing regulations published at 29 CFR parts 1, 3, and 5;
    (i) Applicants must be financially stable and provide proof of 
credit worthiness.
    (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.
    (k) In accordance with 7 CFR 3560.60, the housing must be 
economical to construct, operate, and maintain and must not be of 
elaborate design or materials.
    (l) The agency promotes the protection of outdoor workers from heat 
illness. Applicants are encouraged to include amenities in the project 
that help prevent heat illness or promote recovery from potential 
impacts of exposure to heat illness.
    (m) All program applicants, unless exempt under 2 CFR 25.110(b), 
(c), or (d), are required to:
    i. Be registered in System Award Management (SAM) before submitting 
their applications;
    ii. Provide a valid Unique Entity ID (UEI) in their applications; 
and
    iii. Continue to maintain an active SAM registration with current 
information at all times during which they have an active Federal award 
or an application or plan under consideration by a Federal awarding 
agency.
    The Federal awarding agency may not make a Federal award to an 
applicant until the applicant has complied with all applicable SAM 
requirements and, if an applicant has not fully complied with the 
requirements by the time the Federal awarding agency is ready to make a 
Federal award, the Federal awarding 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. SAM is the Official U.S. Government system for collection of 
forms for acceptance of a federal award through the registration or 
annual recertification process. Applicants may register for SAM at 
https://www.sam.gov or by calling 1-866-606-8220. The applicant must 
ensure that the information in the database is current, accurate, and 
complete. On April 4, 2022, the unique entity identifier used across 
the federal government changed from the DUNS Number to the UEI 
(generated by SAM.gov). As required by the Office of Management and 
Budget (OMB), all applications must provide a UEI number when applying 
for Federal assistance. Instructions for obtaining the UEI are 
available at https://sam.gov/content/entity-registration. Applicants 
must ensure they complete the Financial Assistance General 
Certifications and Representations in SAM. Similarly, all recipients of 
Federal financial assistance are required to report information about 
first-tier subawards 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).
    Additional information concerning these requirements can be 
obtained on the Grants.gov website at http://www.grants.gov. The 
applicant must provide documentation that they are registered in SAM 
and their UEI number or the application will not be considered for 
funding. The following forms for acceptance of a federal award are now 
collected through the registration or annual recertification in SAM.gov 
in the Financial Assistance General Certifications and Representations 
section:
     Form AD-1047, ``Certification Regarding Debarment, 
Suspension, and Other Responsibility Matters-Primary Covered 
Transactions.''
     Form AD-1048, ``Certification Regarding Debarment, 
Suspension, Ineligibility and Voluntary Exclusion. Lower Tier Covered 
Transactions.''
     Form AD-1049, ``Certification Regarding Drug-Free 
Workplace Requirements (Grants).''
     Form AD-3031, ``Assurance Regarding Felony Conviction or 
Tax Delinquent Status for Corporate Applicants.''
     Form AD-3030, ``Representations Regarding Felony 
Conviction and Tax Delinquent Status for Corporate Applicants.''

C. Pre-Application and Submission Information

    The application process will be in two phases: The initial pre-
application and the submission of a final application. Only those pre-
applications that are selected for further processing will be

[[Page 28721]]

invited to submit a final application. In the event that a pre-
application is selected for further processing and the applicant 
declines, the next highest ranked pre-application will be selected for 
further processing. All pre-applications for Section 514 and Section 
516 funds must meet the requirements of this Notice. Incomplete pre-
applications will be rejected and returned to the applicant. No pre-
application will be accepted after the deadline unless the date and 
time is extended by another Notice published in the Federal Register.
    Applicants are encouraged to include a checklist or Table of 
Contents of all the application requirements and to index and tab their 
application to facilitate the review process. Applicants must submit 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.
    1. Pre-Application submission process. Pre-applications must be 
submitted electronically. The process for submitting an electronic 
application to RHS is as follows:
    (a) At least three business days prior to the application deadline, 
the applicant must email RHS a request to create a shared folder in 
CloudVault. The email must be sent to the following address: usda.gov">Off-FLHapplication@usda.gov. The email must contain the following 
information:
    i. Subject line: ``Off-FLH New Construction Application 
Submission.''
    ii. Body of email: Borrower Name, Project Name, Borrower Contact 
Information, Project State.
    iii. Request language: ``Please create a shared CloudVault folder 
so that we may submit our new construction application documents.''
    (b) Once the email request to create a shared CloudVault folder has 
been received, a shared folder will be created within two business 
days. When the shared CloudVault folder is created by RHS, the system 
will automatically send an email to the applicant's submission email 
with a link to the shared folder. All required application documents in 
accordance with this Notice must be loaded into the shared CloudVault 
folder. When the submission deadline is reached, the applicant's access 
to the shared CloudVault folder will be removed. Any document uploaded 
to the shared CloudVault folder after the application deadline will not 
be reviewed or considered.
    (c) The applicant should upload a Table of Contents of all of the 
documents that have been uploaded to the shared CloudVault folder. 
Last-minute requests and submissions may not allow adequate time for 
the submission process to take place prior to the deadline. Applicants 
are reminded that all submissions must be received by the deadline and 
the application will be rejected if it is not received by the deadline 
date and time, regardless of when the application was submitted.
    2. Pre-Application Requirements. The application must contain the 
following:
    (a) An executed and dated Executive Summary on the applicant's 
letterhead that must include at least the following:
    i. Brief description of the proposed project. Be sure to address if 
the project will be used year-round or seasonally and to what 
construction standards the housing will be built.
    ii. Document the need for the project. The applicant must document 
that the housing and related facilities will fulfill a pressing need in 
the area in which the project will be located.
    iii. Description of the proposed ownership structure with an 
organizational chart.
    iv. Narrative verifying the applicant's ability to meet the 
eligibility requirements stated earlier in this Notice.
    v. 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 that the 
applicant plans to compensate for this limited experience (e.g., by 
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).
    vi. Description of the applicant's legal and financial capability 
to carry out the obligation of the loan and/or grant.
    vii. Proposed management. A brief statement explaining the 
applicant's proposed method of operation and management (e.g., on-site 
manager, contract for management services, or other method.). As stated 
earlier in this Notice, the housing must be managed in accordance with 
the program's management regulations, 7 CFR part 3560.
    viii. Description and proof of established site control.
    ix. Proposed Return to Owner (RTO), if applicable.
    x. Any financial commitments, financial concessions, or other 
economic benefits proposed to be provided by RHS.
    xi. Third-party funding, if applicable. For each third-party 
funding source or leveraged funds, discuss briefly the funding 
provider, funding amount, including terms, commitment status, timing 
issues such as any proposed closing dates, any restrictions that will 
be applicable to the project, and whether any accommodation from RHS is 
proposed, such as a lien position other than first. The desired lien 
position of any third-party funding source must be clearly disclosed as 
well as any proposal for RHS to accept a second lien position.
    xii. Any proposed compensation to parties having an identity of 
interest with either the seller, purchaser, consultant, or Technical 
Assistance (TA) provider.
    xiii. Any proposed construction financing, for example, a 
construction or bridge loan or the use of multiple advances.
    xiv. Type and method of construction such as negotiated bid or 
contractor method.
    xv. If a FLH grant is desired, a statement concerning the need for 
a FLH grant. The statement must include estimates of the rents required 
with a grant and rents required without a grant. Documentation to 
demonstrate how the rent figures were computed must be provided. 
Documentation must be in the form of a completed Form RD 3560-7 
``Multiple Family Housing Project Budget/Utility Allowance'' completed 
as if a grant was received and another form completed as if a grant 
would not be received. RHS will review each budget to determine that 
the income and expenses are reasonable and customary for the area.
    xvi. If RA or OA is requested, a statement concerning the need for 
the RA or OA and a statement concerning the specific number of units of 
RA or OA that is needed. Strong and detailed justification must be 
provided for requests of 100 percent RA or OA.
    xvii. In accordance with Sec.  3560.63(f), all applicants must 
agree in writing to provide funds at no cost to the housing and without 
pledging the housing as security to pay cost overruns for completing 
planned construction after the maximum debt limit is reached.
    xviii. Estimated development timeline to include estimated start 
and end date as well as any other important milestones such as a 
required closing date.
    xix. Description of any required site development such as building 
roads, obtaining easements, installing utilities, verification that 
there is proper site

[[Page 28722]]

access, and any state or local approvals such as zoning.
    xx. Description of the required and intended applicant 
contribution.
    xxi. Any other pertinent information that the applicant feels 
should be disclosed as part of this proposal.
    (b) Provide the following forms and certifications:
    i. Standard Form 424 ``Application for Federal Assistance'' which 
can be obtained at: https://www.grants.gov/.
    ii. Form RD 3560-30, ``Certification of no Identity of Interest 
(IOI),'' if applicable, can be found at: http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-30.PDF.
    iii. Form RD 3560-31, ``Identity of Interest Disclosure/
Qualification Certification'' if applicable, can be found at: http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD3560-31.PDF.
    An IOI is defined in 7 CFR 3560.11. RHS will review Form RD 3560-30 
and Form RD 3560-31, as applicable, to determine if they are completed 
in accordance with the Forms Manual Insert and to determine that all 
IOI's have been disclosed. TA will not be funded by RHS when an IOI 
exists between the TA provider and the loan or grant applicant.
    iv. Form HUD 2530, ``Previous Participation Certification'' can be 
found at: https://www.hud.gov/sites/dfiles/OCHCO/documents/2530.pdf.
    v. Form RD 400-4, ``Assurance Agreement'' can be found at: http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD400-4.PDF.
    vi. RD Instruction 1940-Q, Exhibit A- 1, ``Certification for 
contracts, grants and loans,'' can be found at: https://www.rd.usda.gov/files/1940q.pdf.
    vii. Form RD 1910-11, ``Applicant Certification, Federal Collection 
Policies for Consumer or Commercial Debts'' can be found at: https://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1910-11.PDF.
    viii. Form RD 400-1, ``Equal Opportunity Agreement,'' can be found 
at: https://formsadmin.sc.egov.usda.gov/eFormsAdmin/browseFormsAction.do?pageAction=displayPDF&formIndex=2.
    (c) Provide the following financial and organizational information:
    i. Current (within six months of this Notice's pre-application 
submission due date) financial statements for each entity within the 
ownership structure 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.''
    ii. Submit a current (within 6 months from the date of issuance) 
comprehensive credit reports that contain details of both current open 
credit accounts and closed accounts for both the entity and the actual 
individual principals, partners, and members within the applicant 
entity, including any sub-entities who are responsible for controlling 
the ownership and operations of the entity. If any of the principals in 
the applicant entity are not natural persons (including but not limited 
to corporations, limited liability companies, trusts, partnerships, or 
limited partnerships), separate comprehensive commercial credit reports 
must be submitted on those organizations as well. Only credit reports 
provided by one of the three accredited major credit bureaus (Experian, 
Equifax, or TransUnion) will be accepted. The Agency will also accept 
combination comprehensive credit reports which provide a comprehensive 
view of the applicant's credit profile by combining data from all three 
major credit bureaus (Experian, Equifax, and TransUnion). If the credit 
report(s) is not submitted by the application deadline, the application 
will be considered incomplete and will not be considered for funding.
    iii. Letter from the IRS indicating the applicant's tax 
identification number.
    iv. Organizational applicants must provide to their attorney 
acceptable evidence of U.S. citizenship and/or qualified alien status. 
Acceptable evidence of U.S. citizenship may include a valid U.S. birth 
certificate, a valid U.S. Passport, a valid U.S. Certificate of 
Naturalization, or other acceptable evidence of U.S. citizenship 
proposed by the applicant and determined by the Agency. Acceptable 
evidence of qualified alien status may include valid documentation 
issued by the U.S. Citizenship and Immigration Services (USCIS), or 
other acceptable documentation of qualified alien status proposed by 
the applicant and determined by the Agency.
    Attorney Certification. The applicant's attorney must review all 
applicable evidence to verify U.S. citizenship and/or qualified alien 
status, must certify that the Agency's U.S. citizenship and/or 
qualified alien status eligibility requirements are met by all 
applicants, and must submit the certification for Agency review.
    v. Documentation verifying the applicant is registered in SAM and 
the applicant's UEI number (unless exempt under 2 CFR 25.110(b), (c), 
or (d)).
    vi. If the applicant is a limited partnership, a current and fully 
executed limited partnership agreement and certificates of limited 
partnership. If changes are proposed to be made to the limited 
partnership agreement prior to loan/grant closing, the applicant must 
provide the proposed limited partnership agreement and certificates of 
limited partners for any proposed new limited partners. (Agency 
requirements should be contained in one section of the agreement and 
their location identified by the applicant or their attorney in a cover 
sheet.)
    vii. If the applicant is a non-profit organization:
    a. Tax-exempt ruling from the IRS designating the applicant as a 
501(c)(3) or 501(c)(4) organization. If the designation is pending, a 
copy of the designation request must be submitted.
    b. Purpose statement, including the provision of low-income 
housing.
    c. Evidence of organization under Tribal, state and/or local law, 
or copies of pending applications and a copy of the applicant's 
charter, Articles of Incorporation, and by-laws.
    d. List of Board of Directors including their names, occupations, 
phone numbers, and addresses.
    e. If the applicant is a member or subsidiary of another 
organization, the organization's name, address, and nature of business.
    viii. Certificate of Good Standing.
    ix. Attorney Certification. Letter from the applicant's attorney 
certifying the legal sufficiency of the organizational documents. The 
attorney must certify:
    a. The applicant's legal capacity to successfully operate the 
proposed project for the life of the loan and/or grant.
    b. That the organizational documents comply with RHS regulations.
    c. For partnership purchasers, that the term of the partnership 
extends at least through the latest maturity of all proposed RHS debt.
    d. That the organizational documents require prior written RHS 
approval for any of the following: withdrawal of a general partner of a 
partnership or limited partnership applicant, withdrawal of any member 
of a limited liability company applicant, admission of a new general 
partner to a partnership or limited partnership applicant, admission of 
any new member to a limited liability company applicant, amending the 
applicant's organizational

[[Page 28723]]

documents, and selling all or substantially all of the assets of the 
applicant.
    (d) Provide the following information about the Project:
    i. Market feasibility documentation to identify the supply and 
demand for Off-FLH in the market area. A market study must be 
submitted. 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, taking into consideration the pool of applicants that meet 
the occupancy requirements of the Off-FLH program under 7 CFR 3560.576. 
The documentation must also consider disabled and retired farm workers 
and adjusted median incomes of very-low, low, and moderate. The market 
study must include the following:
    a. A complete description of the proposed site and a map showing 
the site, location of services, and their distances from the site.
    b. Names and qualifications of members of the community interviewed 
during the site visit and a discussion of their comments.
    c. Major employers in the area and year established.
    d. Employment opportunities and rates for the area for the past 5 
years.
    e. Services available in the area, including shopping, schools, and 
medical facilities as well as community services such as recreational, 
transportation, and day care that are available.
    f. Population by year plus the annual increase or decrease for the 
past 5 years.
    g. Population characteristics by age.
    h. Number of households by year and number of persons per household 
for the past 5 years.
    i. Historical breakdown of households by owners and renters.
    j. Households by income groups.
    k. A survey of existing or proposed rental housing, including 
complex name, location, number of units, bedroom mix, family or elderly 
type, year built, rent charges, vacancies, waiting lists, amenities, 
and the availability of RA or other subsidies.
    l. Available mobile homes, if part of housing stock.
    m. The existing vacancy rate of all available rental units in the 
community, including houses.
    n. Proportionate need for project type.
    o. Building permits issued per year for the last 3 years for single 
and multiple unit dwellings.
    p. For proposals where the applicant is requesting LIHTCs, the 
number of LIHTC units and the maximum LIHTC incomes and rents by unit 
size. This information will determine the levels of incomes in the 
market area, which will support the basic rents while also qualifying 
the applicant for tax credits.
    q. The amount of RA and/or OA necessary to ensure the project's 
success.
    r. Major employment data including the name, location, and date of 
establishment of any major employers within the community; the product 
or service of each employer; the number of employees; and salary range 
for each employer; and business permits issued.
    s. Housing stock as defined by total number of units: one-unit 
buildings, two- or more unit buildings, mobile homes, and the number of 
these lacking some or all plumbing facilities (substandard housing).
    t. Number of rent-overburdened households.
    u. An expanded analysis of existing vacancy rates for all available 
rental units in the community, including mobile homes. The analysis 
must make a distinction between ``owned properties,'' ``available for 
rent,'' and ``for sale--not available for rent,'' as well as available 
apartments and other rental units.
    v. Population characteristics by age.
    w. A projection of housing demand based on:
     Household growth;
     Units constructed since the last U.S. Census;
     Number of owned and rented units;
     Number of replacements; and
     Number of households in the eligible-income range.
    x. 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;
    y. 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 households are represented by the migrants 
(i.e., single individuals as opposed to families);
    z. General information concerning the type of labor-intensive crops 
grown in the area and prospects for continued demand for farm laborers;
    aa. The overall occupancy rate for comparable rental units in the 
area, the rents charged, and customary rental practices for these 
comparable units (e.g., will they rent to large families, do they 
require annual leases, etc.);
    bb. The number, condition, adequacy, rental rates and ownership of 
units currently used by or available to farm workers;
    cc. Information on any proposed new construction of housing units 
within the market area. The building permit information and pending tax 
credit applications must be checked for the primary market area;
    dd. Documentation verifying that interviews were conducted with 
farms and other agricultural businesses within the primary market area 
to inquire if they are in need of additional housing for their 
employees or if they plan to expand and hire additional employees that 
will need housing; and
    ee. A description of the proposed units, including the number, 
type, size, rental rates, amenities such as carpets and drapes, related 
facilities such as a laundry room or a 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.
    ff. All market studies must provide a summary of the sample of farm 
workers used to document the need for off-farm labor housing. This 
summary should quantify eligible tenants according to 7 CFR part 3560 
subpart L section 3560.577 within the farm worker demographics sample 
and provide the reference/source of the information.
    gg. The market study must also include the following required 
elements of the market feasibility documentation (MFD):
     Services available in the area include shopping, schools, 
and medical facilities as well as community services such as 
recreational, transportation, and day care. Services appear to be 
appropriate for the project type and within reasonable proximity of the 
site.
     Building permits issued during the past 3 years and new 
employment opportunities show the community to be growing, rather than 
declining.
     Major employers in the area provide employment 
opportunities sufficient to support a population base of renters for 
the proposed project.
     Employment rates for the area have been high over the past 
5 years.
    hh. The analyst makes realistic recommendations supported by the 
statistical information provided:
     Population characteristics and household data for the 
community are stable or show an increase during the past 5 years.
     Population characteristics by age shows support for the 
type of project being proposed, and the type of complex proposed 
reflects the greater

[[Page 28724]]

proportionate need and demand of the community. To establish this, 
compare the share or percentage of the community's total rental units 
that are designated for the elderly (62 years or older or disabled) to 
the community's share of elderly households, and the share of total 
rental units for families to the share of family households in the 
community. For mixed projects, the unit mix must reflect the 
proportionate need of each household type.
     Statistical data showing households by income group shows 
that there are households in the eligible income group that could rent 
in the project.
     Historical breakdown of households by owners and renters 
shows that there is a tradition of renters.
     The MFD addresses the need for more than just one and two 
bedroom units.
     The bedroom mix of the proposed units is proportional to 
the need in the market area based on renter household size and the 
bedroom mix of existing units.
     The bedroom mix of fully accessible units (5 percent) is 
comparable to the bedroom mix of non-accessible units.
     The MFD shows evidence of need for the housing in that 
there are rent overburdened households and/or households in substandard 
housing.
     A discussion of existing housing supply includes reference 
to the single-family housing rental and sale units available and shows 
these to be inadequate.
     Temporary residents of a community, including college 
students, military personnel, or others not claiming their current 
residence as their legal domicile, have not been included in 
determining need and project size.
     The MFD includes a discussion on the current market for 
single-family houses and how sales, or the lack of sales, will affect 
the demand for elderly rental units. If the market study discusses how 
elderly homeowners reinforce the need for rental housing, it does so 
only as a secondary market and not as the primary market.
     The vacancy rates in existing rental housing, including 
available single-family housing and mobile homes, is 5 percent (or the 
State-approved vacancy standard, if different) or less, or there is an 
acceptable explanation where higher rates occur. Existing rental 
complexes should also show waiting lists.
     The CRCU shown is less than or equal to the rents proposed 
for the project.
     For proposals where the applicant is requesting LIHTCs, 
the number of LIHTC units and the maximum LIHTC incomes and rents by 
unit size are provided. Statistical data provided show that there are 
households in the tax credit-eligible income group to rent in the 
project. If not, rental assistance is requested.
     The MFD makes clear the amount of RA that is necessary to 
ensure the project's success.
    ii. The analyst that completes the market study must provide the 
following certifications:
     The information presented is accurate to the best of the 
preparer's knowledge.
     Reliable sources were used to collect the information and 
data presented (for a study, the analyst has included a statement of 
qualifications).
     A site visit was made by the preparer or their 
representative.
     The analyst will not receive any fees that are contingent 
upon approval of the project by the Agency.
     The analyst will have no interest in the project.
    jj. The market study must also include the following methodologies:
     A brief statement of the methodology used in the study has 
been included.
     All mathematical calculations are expressed in actual 
numbers, including percentages.
     Source references are identified for each table or section 
of the market study.
    It is recommended that the provider include a copy of Attachment 4-
F, located in HB-1-3560, Chapter 4 (https://www.rd.usda.gov/sites/default/files/3560-1chapter04.pdf), within the report and provide the 
page number of the report where it contains the information that 
satisfies each element of Attachment 4-F. The market study must be 
obtained from, and performed by, an independent third-party provider 
that has no identity of interest with the property owner, management 
agent, applicant or any other principal or affiliate. The market study 
must also include the following:
    ii. If the applicant is seeking points for land donation, a 
narrative to explain how the land donation meets all of the 
requirements set forth in Section E(5) of this Notice.
    iii. Evidence of site control, such as an executed option contract 
or sales contract. The option contract or sales contract must not be 
expired.
    iv. 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. Off-FLH projects must 
comply with the site requirements in 7 CFR 3560.58 with the exception 
of the requirement that the property be located in a designated place.
    v. 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. A map showing the 
location of supportive services must be included. Letters of commitment 
from service providers to deliver services to tenants must be included. 
The plan must describe how the services will be funded. RA may not fund 
supportive services.
    (e) Provide the following construction related documents:
    i. Preliminary plans and specifications, including a plot plan, 
site plan with contour lines, floor plan for each living unit type and 
other spaces, such as laundry facilities, community rooms, stairwells, 
etc., building exterior elevations, typical building exterior wall 
section, building layouts, and type of construction and materials. The 
housing must meet RHS's design and construction standards contained in 
7 CFR part 1924, subparts A and C, including meeting all current 
applicable building codes, and must also meet all applicable federal, 
state, and local accessibility standards and be in compliance with all 
building codes. Applications for Off-FLH loans and grants must also 
meet the design requirements in 7 CFR 3560.559.
    ii. A description of the proposed interior/exterior washing 
facilities, if applicable. Applicants should consider incorporating 
interior/exterior washing facilities for tenants, as necessary to 
protect the housing and the tenants from excess dirt and chemical 
exposure. Such facilities might include a boot washing station or hose 
bibs, among others.
    iii. Description and justification of related facilities as defined 
in 7 CFR 3560.11, and a schedule of separate charges for the related 
facilities.
    iv. A checklist, certification, and signed affidavit by the project 
architect or engineer, as applicable, for any energy programs the 
applicant intends to participate in.
    (f) Provide the following project financing information:
    i. A Sources and Uses Statement which shows all sources of funding 
included in the proposed transaction. The terms and schedules of all 
sources included in the project should be included in the Sources and 
Uses Statement. (Note: A Section 516 grant

[[Page 28725]]

may not exceed 90 percent of the TDC of the transaction)
    ii. All applications that propose the use of any grant, non-
amortizing leveraged funds, or similar funding source should submit 
commitment letters with their application, if available. If the 
applicant is unable to secure third-party firm commitment letters 
within 180 calendar days from the issuance of the award letter under 
this NOSA, the application will be deemed incomplete, the award letter 
will be considered null and void, and the applicant will be notified in 
writing that the application will be rejected.
    iii. Description of how the applicant will meet the applicable 
equity contribution requirement.
    (g) Provide the following environmental information:
    i. Environmental information in accordance with the requirements in 
7 CFR part 1970. The applicant is responsible for preparing and 
submitting the environmental review document in accordance with the 
format and standards provided by RHS in 7 CFR part 1970. Applicants may 
employ a design or environmental professional or technical service 
provider to assist them in the preparation of their environmental 
review documents at their own expense.
    ii. Evidence of the submission of the project description to the 
applicable State Housing Preservation Office (SHPO), and/or Tribal 
Historic Preservation Officer (THPO) with the request for comments. A 
letter from the SHPO and/or THPO where the Off-FLH project is located 
stating they have reviewed the site and made a determination, signed by 
their designee, is required to demonstrate compliance.
    iii. Intergovernmental review. Evidence of compliance with 
Executive Order 12372. The applicant must initiate the 
intergovernmental review by submitting the required information to the 
applicable State Clearinghouse. The applicant must provide 
documentation that the intergovernmental review process was completed. 
The applicant must also submit any comments that were received as part 
of this review to the agency. If no comments are received, the 
applicant must provide documentation that the review was properly 
initiated and that the required comment period has expired. 
Applications from Federally recognized Indian tribes are not subject to 
this requirement.
    iv. FEMA Form 81-93, Standard Flood Hazard Determination.
    v. Comments regarding relevant offsite environmental conditions, 
which could include but are not limited to, information on surrounding 
businesses or land uses such as abandoned buildings or facilities, 
landfills, and waste or water management facilities, etc. that may 
present an adverse impact to the proposed development.
    (h) Provide the following budget and management information:
    i. A proposed post-construction 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.
    RHS will review the budget to determine that the income and 
expenses are reasonable and customary for the area. RHS will also 
verify that the budget reflects the correct and estimated RHS debt 
service, number of units, unit mix, and proposed rents. Overall, RHS 
will review the budget for feasibility, accuracy, and reasonableness.
    ii. An estimate of development costs 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.
    iii. If requesting RA or OA, 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.
    If any of the required items listed above are not submitted within 
the pre-application in accordance with this Notice or are incomplete, 
the pre-application will be considered incomplete and will not be 
considered for funding.
    RHS will not consider information from an applicant after the pre-
application deadline. RHS may contact the applicant to clarify items in 
the application. RHS will uniformly notify applicants of each curable 
deficiency. A curable deficiency is an error or oversight that if 
corrected it would not alter, in a positive or negative fashion, the 
review and rating of the application. An example of a curable 
(correctable) deficiency would be inconsistencies in the amount of the 
funding request.

D. Preliminary Eligibility Assessment

    RHS shall make a preliminary eligibility assessment using the 
following criteria:
    1. The pre-application was received by the applicable submission 
deadlines specified in the Notice;
    2. The pre-application is complete as specified by the Notice;
    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.

E. Pre-Application Review and Scoring Information

    RHS will accept, review, score, and rank pre-applications in 
accordance with this Notice. The maximum score that can be obtained is 
106 points. Section 514 Off- FLH loan funds and Section 516 Off- FLH 
grant funds will be distributed to states based on a national 
competition, based on the following scoring criteria:
    (1) Development Team Experience (up to 15 points). Applicants 
should demonstrate their team's (owner, including the General Partner 
of a partnership applicant, Developer and Management Company) recent 
experience in successfully completing the development of FLH and/or MFH 
projects in a timely manner. RHS will consider the applicant's 
experience with utilizing federal financing programs, including timely 
project completion and ensuring that Section 514/516 projects are 
occupied by eligible farmworker tenants. A firm resume must be provided 
for all sponsors/co-sponsors, including the management agent in order 
to receive points. The description or firm resumes must include any 
rental housing projects that the applicant team sponsored, owns, or 
operates. To score the highest number of points for this factor, 
applicants must describe significant previous experience in providing 
housing to generally and significant previous experience implementing 
affordable housing development activities. Points will be awarded as 
follows:

Low level of development experience (5 points)
Medium level of development experience (10 points)
High level of development experience (15 points)

    (2) Market Conditions/Need for Farm Labor Housing (up to 15 
points). The applicant must provide the required market study as 
described above in Section C, Pre-application and Submission 
Information, number 11. In particular, the applicant must ensure that 
the market study assesses the supply of eligible farmworkers that meet 
the tenancy requirements for the Section 514/516 program. Points will 
be awarded as follows:
    a. Need (up to 10 points). Points will be awarded based on the 
absorption ratio. The absorption ratio is computed by dividing the 
number of units in the proposed project by the number of

[[Page 28726]]

income eligible and farm labor eligible households within the primary 
market area.
    Evidence of Strong Need (10 points). An absorption ratio of 15 
percent or less.
    Evidence of Need (5 points). An absorption ratio greater than 15 
percent and less than 30 percent.
    b. Diminished Needs Waivers in Primary Market Area. If the market 
study indicates that the primary market area for the property includes 
an existing Section 514/516 property, the Agency will determine if the 
existing property has been approved by the Agency for a Diminished 
Needs Waiver (DNW) due to a lack of qualified farmworker tenants. If a 
DNW is in place, the Agency will reduce the scoring by two (2) points 
in (a) to reflect a reduced need for the property.
    c. Location and Access to Services (up to 5 points). Applicants 
must demonstrate that the location of the site supports FLH. The 
applicant must identify the location, the proximity, and ease of access 
of the project site to amenities important to the residents that 
supplement the services provided on- site. Applicants must describe how 
residents could reasonably access critical amenities. Amenities will 
generally be considered readily available if they are within one-half 
mile walking distance or they can be accessed by public transportation 
within one-quarter walking mile, and/or affordable private door-to-door 
shuttle/van service that is reliable and accessible. Applicants may 
commit to providing such transportation services if the nature of the 
commitment and the financing of the commitment is adequately described. 
Project funds cannot be used for this purpose. To score the maximum 
number of points on this factor, applicants must make a compelling 
argument that the location of the proposed project is well suited with 
respect to proximate amenities to meet the needs of farm workers. 
Documentation must be provided that clearly outlines the project site 
and its proximity to the applicable amenities. The site location will 
be rated on access to the following:
    Health care and social services (1 point) (e.g. hospital, medical 
clinic, social service organization that offers services to farm 
workers);
    Grocery stores (1 point) (e.g., supermarket or other store that 
sells produce and meat);
    Recreational facilities (1 point) (e.g., parks and green space, 
community center, gym, health club, family entertainment venue, 
library);
    Schools and civic facilities (1 point) (e.g., place of worship, 
schools, police or fire station, post office);
    Other neighborhood-serving amenities (1 point) (e.g., apparel 
store, convenience store, pharmacy, bank, hair care, and restaurants).
    (3) Ownership and Management Capacity (up to 15 points). Applicants 
should demonstrate that they have the experience and organizational 
resources to successfully own, operate and manage FLH on a long-term 
basis. In the case of co-sponsored applications, the rating will be 
based upon the combination of the experience of all co-sponsors in the 
area under review. In order to receive points, a firm resume must be 
provided for the applicant and all Sponsors/Co-Sponsors, including the 
management agent. Each resume must include FLH and MFH ownership and 
management experience, as applicable. In addition, the resume should 
include a description of all similar projects that the applicant and 
Sponsors/Co-Sponsors have been involved with, to include whether they 
were Federal housing projects, and information regarding the success of 
the projects. Points will be awarded as follows:

Low level of management experience (5 points)
Medium level of management experience (10 points)
High level of management experience (15 points)

(4) Leveraging Other Funds (up to 10 points). Points will be allocated 
for applications that leverage other funds based on the ratio of 
leveraged funds to total development cost (TDC). Leveraged funds are 
defined as non-Section 514/516 funds, including third-party funds from 
equity, grants, loans and deferred developer fees. To receive points, 
the proposal must serve tenants meeting Agency income limits at basic 
rents comparable to what the rent would be if the Agency provided full 
financing. These comparable rents will be determined by the Agency. 
Points are calculated as follows:
Leveraged funds/TDC is greater than 80%: 10 points
Leveraged funds/TDC is 60% to 79%: 8 points
Leveraged funds/TDC is 40% to 59%: 6 points
Leveraged funds/TDC is 20% to 39%: 4 points
Leveraged funds/TDC is 5% to 19%: 2 points

    (5) Land Donation (5 points). Points are provided if the proposal 
uses a donated site which meets the following conditions: (A) The site 
is donated by a state, unit of local government, public body or a 
nonprofit organization; (B) The site is suitable for the housing 
proposal and meets Agency requirements in accordance with Sec.  3560.56 
(c) (1) (iv); (C) Site development costs do not exceed what they would 
be to purchase and develop an alternative site; (D) The overall cost of 
the FLH is reduced by the donation of the site; and (E) A return on 
investment is not paid to the borrower for the value of the donated 
site nor is the value of the site considered as part of the borrower's 
contribution. If the applicant is seeking points for land donation, 
provide a narrative to explain how the land donation meets all of the 
requirements.
    (6) Operational cost savings (up to 5 points). The presence of 
outside funding sources that contribute to operational cost savings, 
such as tax abatements, non-RHS 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 15 years and documentation must 
be provided within the pre-application demonstrating the availability 
of savings for 15 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 example, a 10- unit property receiving $30,000 per year non-RHS 
subsidy yields a cost savings of $450,000 ($30,000 x 15 years); 
resulting in a $3,000 per-unit per-year cost savings ($450,000/10 
units/15 years). Documentation must be provided within the pre-
application that verifies the presence of operational cost savings. 
Points will be awarded relative to the amount of operating cost savings 
obtained by other NOSA applicants:

Per-unit operating costs saving amount is among the top 50% of 
applicants: (5 points)
Per unit operating cost savings are demonstrated, but are not among the 
top 50% of applicants: (3 points)
No per-unit operating cost savings are demonstrated: (0 points)

    (7) Targeted Locations (5 points). Points will be awarded to 
proposals that provide rental units in a colonia, on Tribal land, Rural 
Economic Area Partnership (REAP) community, Enterprise Zone or 
Empowerment Community (EZ/EC) or in a place identified in the state 
Consolidated Plan or a state needs assessment as a high need community 
for MFH. Documentation must be provided within the pre-application that 
verifies

[[Page 28727]]

the property is located in one of the targeted locations.
    (8) Tenant Support Services (up to 5 points). Points will be 
allocated for the presence of tenant supportive services. One point 
will be awarded for each tenant service included in the tenant 
supportive services plan up to a maximum of 5 points. In order to 
receive points, the tenant support services plan must describe the 
proposed supportive services, including a description of the public or 
private funds that are expected to fund the proposed services as well 
as the way the services will be delivered, 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. The proposed supportive 
services plan must describe how the services will meet the identified 
needs of the tenants and how the services will be provided on a 
consistent, long-term basis to support the tenants. The plan must 
clearly state how the services will be funded. RA, OA and project funds 
may not be used to pay for these services.
    (9) Rural Communities (5 points). Although a rural area location is 
not required for the Section 514/516 program, points will be awarded to 
properties located in MFH eligible rural areas. Applicants must include 
a copy of the map demonstrating the project is located in an eligible 
rural area. MFH eligible areas are found on the following website: 
Eligibility (usda.gov)
    (10) Creating More and Better Markets (5 points). Assisting Rural 
communities to recover economically through more and better market 
opportunities and through improved infrastructure. Priority points will 
be awarded if the project is located in or serving a rural community 
whose economic well-being ranks in the most distressed tier of the 
Distressed Communities Index. The Distressed Communities Index provides 
a score between 1-100 for every community at the zip code level. The 
most distressed tier of the index are those communities with a score 
over 80. Please use the Distressed Communities Index Look-Up Map to 
determine if your project qualifies for priority points. Provide a copy 
of the map showing the project is eligible to claim points. Note: US 
Territories are considered distressed and qualify for priority points. 
For additional information on data sources used for this priority 
determination, please download the Data Sources for Rural Development 
Priorities document. Additional information for priority points can be 
found on the following website: https://www.rd.usda.gov/priority-points.
    (11) Advancing Racial Justice, Place-Based Equity, and Opportunity 
(5 points). Ensuring all rural residents have equitable access to RD 
programs and benefits from RD funded projects. Priority points will be 
awarded if the project is located in or serving a community with score 
0.75 or above on the CDC Social Vulnerability Index. Please use Social 
Vulnerability Index Map to look up map or list to determine if your 
project qualifies for priority points. Provide a copy of the map 
showing the project is eligible to claim points. Applications from 
Federally Recognized Tribes, including Tribal instrumentalities and 
entities that are wholly owned by Tribes, will receive priority points. 
Federally Recognized Tribes are classified as any Indian or Alaska 
Native tribe, band, nation, pueblo, village, or community as defined by 
the Federally Recognized Indian Tribe List Act (List Act) of 1994 (Pub. 
L. 103-454). Please refer to the Bureau of Indian Affairs for a listing 
of Federally Recognized Tribes. Additionally, projects where at least 
50% of the project beneficiaries are members of Federally Recognized 
Tribes, will receive priority points if applications from non-Tribal 
applicants include a Tribal Resolution of Consent from the Tribe or 
Tribes that the applicant is proposing to serve. Note: US Territories 
are considered socially vulnerable and qualify for priority points. For 
additional information on data sources used for this priority 
determination, please download the Data Sources for Rural Development 
Priorities document. Additional information for priority points can be 
found on the following website: https://www.rd.usda.gov/priority-points.
    (12) Addressing Climate Change and Environmental Justice (up to 5 
points). Increasing resilience to the impacts of climate change through 
economic support to rural communities. Applicants can receive priority 
points through the options listed below.
    Option 1 (5 points). Priority points will be awarded if the project 
is in or serves a Disadvantaged Community as defined by the Climate and 
Economic Justice Screening Tool (CEJST), from the White House Council 
on Environmental Quality (CEQ). CEJST is a tool to help Federal 
agencies identify disadvantaged communities that will benefit from 
programs included in the Justice40 initiative. Census tracts are 
considered disadvantaged if they meet the thresholds for at least one 
of the CEJST's eight (8) categories of burden: Climate, Energy, Health, 
Housing, Legacy Pollution, Transportation, Water and Wastewater, or 
Workforce Development.

OR;

    Option 2 (5 points). Priority points will be awarded if the project 
is in or serves an Energy Community as defined by the Inflation 
Reduction Act (IRA). The IRA defines energy communities as:
    A ``brownfield site'' (as defined in certain subparagraphs of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (CERCLA))
    A ``metropolitan statistical area'' or ``non-metropolitan 
statistical area'' that has (or had at any time after 2009) 0.17% or 
greater direct employment or 25% or greater local tax revenues related 
to the extraction, processing, transport, or storage of coal, oil, or 
natural gas; and has an unemployment rate at or above the national 
average unemployment rate for the previous year
    A census tract (or directly adjoining census tract) in which a coal 
mine has closed after 1999; or in which a coal-fired electric 
generating unit has been retired after 2009.
    To determine if your project qualifies for priority points under 
Option 1 or Option 2, please use the Disadvantaged Community & Energy 
Community Look-Up Map on the following website: https://www.rd.usda.gov/priority-points. Provide a copy of the map showing the 
project is eligible to claim points.
    (13) Building Performance and Climate Resilience (11 points 
maximum).
    A. Disaster Resilient Construction Practices and Standards (Up to 3 
points). Constructing buildings to be of good quality at the outset 
will ensure the long-term durability, health, safety, operational 
efficiency, and asset quality into the future. Addressing location 
specific hazards may also offer applicants an opportunity to lower 
insurance premiums.
    The FEMA National Risk Index (NRI) https://hazards.fema.gov/nri/map. identifies the following hazards, which may occur simultaneously: 
Avalanche, coastal flooding, cold wave, drought, earthquake, hail, heat 
wave, hurricane, ice storm, landslide, lightening, riverine flooding, 
strong wind, tornado, tsunami, volcanic activity, wildfire, winter

[[Page 28728]]

weather. The FEMA mapping tool allows a report to be generated for the 
County level and the Census track level. The applicant should use the 
tool to create a report based on the address of the proposed project at 
the Census track level. This report should be included in the 
application in order to obtain points in this category.
    USDA RD was involved in the authorship of the collaborative 
creation of guides to builders on resilient construction techniques 
germane to Natural Hazards. Five volumes include: wind, water, fire, 
earth, and auxiliary hazards. https://www.huduser.gov/portal/publications/Designing-for-Natural-Hazards-Series.html.
    (i) Disaster Resilient Construction (1 point). Applicants seeking 
to earn 1 point for Disaster Resilient construction must submit a 
signed commitment from the applicant that the project will be designed 
and constructed using the most current suite of codes published by the 
International Code Council, including the International Building Code 
2021 without weakening amendments, or a more stringent code, and shall 
articulate the specific measures that will be carefully taken to 
mitigate the impact of pertinent natural hazards impacting the project 
location. In order to obtain points, the applicant must also provide a 
certification from a licensed professional architect or engineer that 
the building plans meet these standards and that the final building 
plans, if not yet available, will meet these standards.
    (ii) Addressing Specific Hazards (2 points) In addition to best 
practices illustrated in the Natural Hazard guides, there are some 
industry standards that address specific hazards. To obtain points in 
this category, applicants must commit to additional compliance beyond 
the building code, with the industry standard resilience programs such 
as those listed below, and must illustrate this through commitments 
signed by the applicant and key leaders of the project development 
team, including the lead developer, architects, engineers, and special 
consultants if applicable. Applicants can obtain points by illustrating 
the specific hazard(s) germane to the location of the project and 
committing to participate in an industry standard program designed to 
address the identified risk(s). The applicant must also submit a 
certification from a licensed professional architect or engineer that 
the building plans comply with the standards of the identified 
resilience program and that the final building plans, if not yet 
available, will comply with such standards.
     Strong Wind, Hurricane, Tornado, Hail: Institute for 
Business and Home Safety (IBHS) FORTIFIED programs that address high-
wind, hail, hurricane and up to CAT 3 tornado risk. https://fortifiedhome.org/fortified-multifamily/
     Wildfire: 2021 Wildland Urban Interface (WUI) Code https://planningforhazards.com/wildland-urban-interface-code-wui-code.
    NFPA Firewise USA https://www.nfpa.org/education-and-research/wildfire/firewise-usa.
     Riverine, Coastal, or Pluvial Flooding--Federal Flood Risk 
Management Standard (FFRMS) (required as of January 1, 2024)
     Wholistic Multihazard--RELi is a holistic third-party 
rating system that can be used for both individual buildings and 
communities, addressing multi-hazards and deeper community resilience. 
https://c3livingdesign.org/reli/.
    B. Green Building Standards: (3-6 points). The complex processes of 
design and construction of buildings have interwoven choices that have 
potential to protect the health, safety, and welfare of not only its 
occupants but also every part of the supply chain and lives of human 
beings within that ecosystem. Development has the potential to improve 
lives, create communities, elevate economies, and heal ecosystems if 
done well. Achieving certification from one or more of the green 
building standard programs listed below will yield a maximum of 3 
points for achievement of an above-code, green building standard, with 
an additional 3 points possible for full zero energy achievements, for 
a total of 6 points maximum.
    (i) Green Building Program Participation (3 points)
     EPA's Energy Star Multifamily Certification or Energy Star 
Next Gen https://www.energystar.gov/partner_resources/residential_new/homes_prog_reqs/multifamily_national_page.
     DOE Zero Energy Ready Homes https://www.energy.gov/eere/buildings/zero-energy-ready-homes.
     Earth Advantage https://www.earthadvantage.org/.
     Earthcraft Gold or Platinum https://earthcraft.org/programs/earthcraft-house/.
     Green Communities program by the Enterprise Community 
Partners (2020 Criteria, EGC + Zero Ready/Phius) https://www.enterprisecommunity.org/solutions-and-innovation/green-communities.
     Greenpoint Gold or Platinum. https://www.greenpointrated.com/greenpoint-rated/.
     The National Green Building Standard (NGBS)--Multifamily 
and Mixed Use (four levels of base certification, plus *NGBS Green + 
NET ZERO ENERGY CERTIFICATION) https://www.homeinnovation.com/services/certification/green_homes/multifamily_certification.
     International Living Future Institute (ILFI) Living 
Building Challenge (LBC 4.0--Core Building Certification, *Zero Energy, 
*Zero Carbon). https://living-future.org/lbc/.
     LEED V4 Homes and Multifamily Midrise, or LEED BD+C: Homes 
and Multifamily Lowrise LEED BD+C: Multifamily Midrise (four levels of 
certification, plus *LEED Zero) https://www.usgbc.org/resources/leed-v4-homes-and-multifamily-midrise-current-version.
     Passive House Institute US, Inc. (Phius Core, *Phius Zero) 
https://multifamily.phius.org/service-category/phius-within-reach.
    (ii) Zero Energy Buildings (3 points maximum). Points will be 
awarded for achievements of deep energy efficiency and transitions 
toward Zero Energy Building Performance for projects that have already 
committed to compliance with at least Energy Star for Homes program, 
with the additional following performance achievement commitments. For 
Energy Star and other programs, a Home Energy Rating System (HERS 
score) is a potential pathway for assessment of energy performance 
achievement. A HERS score of 100 is the benchmark of an average home, 
and scores that are lower than 100 illustrate a percentage of improved 
performance from that average. A HERS 85 would mean that the unit 
performs 15% better than the average housing unit. A HERS 0 means that 
the housing unit has achieved net zero--that there is enough on-site 
renewable energy to cover its consumption needs. HERS 42 is an 
approximate benchmark that indicates that improved energy performance 
achievements in performance will require the addition of on-site 
renewable energy sources. Energy modeling that illustrates the 
achievements of the following progressively successful achievements 
will be awarded the following points:

 (1 point) HERS 42 or lower and all-electric
 (2 points) HERS 42 or lower, all-electric, and 10% on-site 
renewable energy
 (3 points) HERS 0 or lower, all-electric, and 100% on-site 
renewable energy
    Applicants aspiring to achieve net zero energy are encouraged to 
choose a

[[Page 28729]]

program from the list of green building programs above that has a Zero 
Energy achievement adder or separately designed track. These programs 
have asterisks next to them and include programs such as the Phius Zero 
program, the ILFI Zero Energy or Zero Carbon Program, the NGBS Green + 
NET ZERO ENERGY CERTIFICATION or LEED Zero. Working within a guided 
program will assist the applicant in ensuring successful achievement of 
zero energy goals.
    Applicants must submit the corresponding checklist, registrations 
in programs, and signed affidavits by the owner, the architect, 
applicable mechanical, electrical plumbing, and structural engineers, 
and other program-required green building professionals, energy 
modelers and raters as applicable to the programs selected for point 
consideration.
    C. Water Conservation (1 point). One (1) point will be awarded for 
xeriscaping of site landscaping and/or water conservation in irrigation 
measures to include a recycled water (gray water or storm water) for 
landscape irrigation covering 50 percent or more of the property's site 
landscaping needs. In order to receive this point, the applicant's 
architect or consulting landscape architect must illustrate in 
narrative, draft specifications, and schematic drawings how this will 
be achieved.
    D. Property Management Credentials (1 point). Projects may be 
awarded one (1) point if the designated property management company or 
individuals that will assume maintenance and operation responsibilities 
upon completion of construction work have a Credential for Green 
Property Management. Credentialing can be obtained from the National 
Apartment Association (NAA), National Affordable Housing Management 
Association, The Institute for Real Estate Management, U.S. Green 
Building Council Leadership in Energy and Environmental Design (USGBC 
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 
application in order to receive the point.
    Additional requirement: All projects awarded scoring points for 
energy initiatives must enroll the project in the EPA Portfolio Manager 
program and the associated EPA Water Score program to track post 
construction energy consumption data as well as water usage. More 
information about this program may be found at: https://www.energystar.gov/buildings/benchmark.

F. Federal Award Administration Information

1. Review and Selection Process

    All pre-applications must be received by the due dates specified in 
this Notice. Applications or application materials received after the 
deadline will not be considered. Each application will be reviewed for 
overall completeness, as well as compliance with eligibility and 
program requirements set forth in this Notice. If an application does 
not meet these requirements, it will be removed from consideration and 
will not be scored. For applications found ineligible or incomplete, 
RHS will send notices of ineligibility that provide notice of any 
applicable appeal rights under 7 CFR part 11.
    RHS will rank all eligible and complete pre-applications nationwide 
by score, highest to lowest. Taking into account available funding, the 
10 percent persistent poverty counties set-aside, and the 30 percent 
limitation per state, RHS will determine which pre-applications will be 
selected for further processing starting with the highest scoring pre-
application. RHS will notify applicants with pre-applications found 
eligible and selected for further processing.
    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 and that meet the 
conditions of Sec.  3560.55(c) and the following conditions:
     Is exempt from Federal income taxes as a public body or 
under section 501(c)(3) or 501(c)(4) of the Internal Revenue 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 a for-profit or limited-profit 
type entity; and
     The entity or its members will not be receiving any direct 
or indirect benefits pursuant to the Low Income Housing Tax Credit 
Program (LIHTC).
    If after all of the above evaluations are completed and 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 pre-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 RHS Production and Preservation Division, in the 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.
    If insufficient funds or RA/OA remain for the next ranked proposal, 
that applicant will be given a chance to modify their pre-application 
funding request to bring it within the remaining available funding. 
This will be repeated for the next ranked eligible proposal until an 
award can be made or the list is exhausted.
    If a pre-application is selected and the applicant declines, the 
next highest ranked pre-application will be selected.
    Applicants will be notified if there are insufficient funds 
available for the proposal, and such notification is not appealable.

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).
    For Section 516 Off-FLH grant awardees, a FLH grant agreement, 
prepared by RHS, must be dated and executed by the applicant on the 
date of closing. The grant agreement will remain in effect for so long 
as there is a need for the housing and will not expire until an 
official determination has been made by RHS that there is no longer a 
need for the housing.
    The applicant's Board of Directors must adopt a resolution in a 
form acceptable to the RHS stating that the Board has read and fully 
understands the grant agreement and understands that the grant 
agreement will remain in effect until RHS determines that there is no 
longer a need for the housing.

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 RHS. 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 RHS, and then only to the extent necessary 
for RHS and the borrower to discuss the affordability (and 
competitiveness) of the service provided to the tenant. The project 
audit, or

[[Page 28730]]

verification of accounts on Form RD 3560-10, ``Multifamily Housing 
Borrower Balance Sheet'' together with an accompanying Form RD 3560-7, 
``Multiple Family Housing Project Budget/Utility Allowance'' must 
allocate revenue and expenses between project operations and the tenant 
services component.

G. Final Application and Submission Information

1. Final Application Submission Process

    The pre-applications that are selected for further processing will 
be invited to submit final applications. In the event that a pre-
application is selected for further processing and the applicant 
declines, the next highest ranked pre-application will be selected for 
further processing. The final applications will be due by the dates 
specified in this Notice.
    All final applications must be submitted to RHS and must meet the 
requirements of this Notice. The final application submission process 
will be the same as previously explained and outlined for the pre-
application submission process in Section C 1, ``Pre-Application and 
Submission Information.'' Final applications that are incomplete as of 
the deadline will be rejected and returned to the applicant. No final 
applications or application materials will be accepted after the 
deadline unless the date and time are extended by another Notice 
published in the Federal Register.
    A final application in accordance with this Notice must be 
submitted and approved by RHS prior to the obligation of funds. RHS 
will follow this Notice for the processing of final applications. 
Awards will require a determination from RHS that the project is 
feasible and meets all applicable program requirements as stated in 
this Notice and in RHS regulations. If there are insufficient funds 
available to fund all eligible final applications, awards will be made 
in accordance with the Review and Selection Process described in 
Section F.1 of this Notice.

2. Final Application Requirements

    In addition to the items listed below, the final application must 
contain any document that was submitted within the pre-application that 
has since changed or needs to be updated. The Agency will advise the 
applicant of any documents that are required to be updated. The 
applicant may also change or update additional documents at the 
applicant's discretion. The following new documents must be submitted:
    (a) A narrative that contains a description of any changes from the 
pre-application submission.
    (b) Provide the following forms and certifications:
    a. Form RD 400-1, ``Equal Opportunity Agreement'' can be found at: 
https://forms.sc.egov.usda.gov/eForms/browseFormsAction.do?pageAction=displayPDF&formIndex=1.
    b. Form RD 400-6, ``Compliance Statement'' can be found at: https://forms.sc.egov.usda.gov/eForms/browseFormsAction.do?pageAction=displayPDF&formIndex=4.
    (c) Provide the following financial and organizational information:
    a. Final organizational documents and Certificate of Good Standing.
    b. Description of how the applicant will meet the equity 
contribution requirement as applicable.
    c. Description of how the applicant will provide the two percent 
initial operating and maintenance reserve requirement.
    (d) Provide the following Project information:
    a. Current Preliminary title insurance commitment/binder.
    b. Land survey with flood plain certification.
    (e) Provide the following construction documents:
    a. Final plans and specifications along with the proposed manner of 
construction, if available. The housing must meet RHS'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 and be in compliance with all current building 
codes. The final plans and specifications, along with the proposed 
manner of construction, are not required to be submitted prior to the 
final application deadline. However, these documents must be submitted 
prior to the approval of the final application. The Agency will 
communicate to applicants the deadline to submit these documents.
    b. Final construction planning, bidding, and contract documents, 
including, but not limited to the construction contract and 
architectural agreement, if available. The final construction planning, 
bidding, and contract documents, including the construction contract 
and architectural agreement, etc., are not required to be submitted 
prior to the final application deadline. However, these documents must 
be submitted prior to the approval of the final application. The Agency 
will communicate to applicants the deadline to submit these documents.
    (f) Provide the following financing information:
    a. All applications that propose the use of any leveraged funds 
should submit firm commitment letters within their final application, 
if available. Applicants dependent upon third-party funding, including 
but not limited to local-, state-, and federal resources through 
competitive and noncompetitive application rounds, must obtain and 
submit to the Agency a satisfactory commitment of those funds, as 
determined by the Agency, upon receipt, but no later than the twelve-
month time frame, as specified in the award commitment. An extension of 
the award commitment of up to six months may be given, at the sole 
discretion of the Agency, and will be based on project viability, 
current program demand, and availability of program funds. Applicants 
unable to satisfy this condition of the award commitment will be 
subject to having the award rescinded and will be required to reapply 
in future funding announcements.
    (g) Provide the following budget and management information:
    a. Final proposed Form RD 1924-13, ``Estimate and Certificate of 
Actual Cost.''
    b. Final proposed post-construction operating budget utilizing Form 
RD 3560-7, ``Multiple Family Housing Project Budget/Utility 
Allowance.''
    c. Form RD 3560-13, ``Multifamily Project Borrower's/Management 
Agent's Management Certification'' if applicable, can be found at: 
https://forms.sc.egov.usda.gov//efcommon/eFileServices/eForms/RD3560-13.PDF.
    d. Management plan with all attachments including the proposed 
record keeping system, the proposed lease with an attorney's 
certification, if applicable, and the proposed occupancy rules.
    e. Management Agreement, if applicable.
    f. For projects that have five or more rental units, an Affirmative 
Fair Housing Marketing Plan (AFHMP) as defined in 24 CFR part 200, 
subpart M, in accordance with 7 CFR 1901.203(c). The AFHMP will reflect 
that occupancy is open to all qualified ``domestic farm laborers,'' 
regardless of which farming operation they work for, 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 AFHMP must include all attachments 
and supporting documentation.
    Indian Tribes, including instrumentalities of such Indian Tribes,

[[Page 28731]]

are not required to comply with certain aspects of the AFHMP guidelines 
above, and may allow members of Indian Tribes to be given preference 
for housing. The Native American Housing Enhancement Act of 2005 
(NAHEA), Public Law 109-136, Codified at 25 U.S.C. 4101 et seq., 
amended Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) 
which created the housing programs administered by the United States 
Department of Agriculture, Rural Housing Service. The NAHEA excludes 
Indian Tribes, including instrumentalities of such Indian Tribes, from 
the requirement to comply with Title VI of the Civil Rights Act of 
1964, and Title VIII of the Civil Rights Act of 1968, allowing members 
of Indian Tribes to be given preference for housing in accordance to 
the Native American Housing Assistance and Self Determination Act of 
1996 (25 U.S.C. 4101 et seq.).
    The NAHEA does not exempt Indian Tribes from complying with other 
laws that apply to recipients of Federal financial assistance. 
Therefore, Federally recognized Indian Tribes must continue to comply 
with Section 504 of the Rehabilitation Act of 1973, the Age 
Discrimination Act of 1975, and Title IX of the Education Amendments 
Act of 1972, where applicable. The NAHEA also does not exempt Indian 
Tribes from complying with the accessibility requirements of the Fair 
Housing Amendments Act (FHAA) of 1988. This Act amended Title VIII of 
the Fair Housing Act of 1968, to include disability and familial 
status. Therefore, the NAHEA did not specifically exempt Indian Tribes 
from the accessibility requirements of the FHAA. The requirements to 
construct multi-family housing properties accessible to, or adaptable 
for, persons with disabilities are to be followed. This requirement 
shall be consistent with 7 CFR 3560.60(d).
    (h) Provide the following third-party reports:
    a. Acceptable appraisal. Appraisals for applications requesting an 
Off-FLH loan may be conditioned but will be required prior to closing. 
Please refer to the Agency's appraisal guidance under the ``To Apply'' 
tab on the Off-Farm Labor Housing Direct Loans & Grants website 
(https://www.rd.usda.gov/programs-services/multifamily-housing-programs/farm-labor-housing-direct-loans-grants#to-apply).
    b. A Capital Needs Assessment (CNA) is not required. When 
underwriting new construction applications, the Agency will require an 
initial and ongoing capitalization of the replacement reserve account 
to address future replacement reserve-eligible needs. This shall be 
reflected in the applicant's development budget as an Initial Deposit 
for Replacement Reserve (IDRR) in an amount equal to $250 per-unit. The 
Annual Deposit for Replacement Reserve (ADRR) requirements shall be 
reflected in the operating budget and shall be the lower of the 
following:
    i. 0.2% of the Total Development Costs (TDC) per unit.
    ii. $450 per unit.
    iii. An amount determined to be acceptable, at the sole discretion 
of the agency based on the underwriting analysis, that is required by 
another participating state or federal: program, lender, or investor in 
the proposed transaction.

H. Documentation of Underwriting and Costs

    All final applications including the loan and/or grant requests 
will be analyzed using an underwriting template that RHS has developed. 
A complete analysis and underwriting of the proposed transaction will 
be completed to ensure all regulatory requirements are met and to 
ensure overall project feasibility as well as to determine the minimum 
amount of assistance that is needed for the proposal. Proposals that 
are determined not to be feasible will not receive funding.
    Questions regarding this Notice may be directed to Jonathan Bell, 
Branch Director, Processing and Report Review Branch, Production and 
Preservation Division, Multifamily Housing Program, Rural Development, 
United States Department of Agriculture, or email: 
usda.gov">MFHprocessing1@usda.gov or phone at: 800-292-8293.

I. Technical Assistance Providers

    Please be aware that TA services may not be used to reimburse a 
non-profit or public body applicant for technical services provided by 
a non-profit organization, with housing and/or community development 
experience, to assist the non-profit applicant entity in the 
development and packaging of its loan/grant docket and project. In 
addition, TA will not be funded by RHS when an identity of interest 
exists between the TA provider and the loan or grant applicant. 
Identity of interest is defined in 7 CFR 3560.11.

J. Applicant Assistance

    The RHS plans to host a workshop to discuss this Notice, the 
application process, and the borrower's responsibilities, among other 
topics. Further information regarding the date and time of this 
workshop, as well as information on how to participate in the workshop 
will be issued at a later date in a public notice via GovDelivery. 
Click here to sign up for notifications from Rural Development.
    Prior to the submission of an application, the applicant is 
encouraged to schedule a concept meeting with RHS to discuss the 
application process, the specifics of the proposed project, and the 
borrower's responsibilities under the Off-FLH new construction program, 
among other topics.
    Concept meetings will be scheduled between the dates of May 6, 2024 
and May 31, 2024. No concept meetings will be scheduled outside of the 
specified dates.
    Requests for concept meetings can be sent to the following email 
address: usda.gov">MFHprocessing1@usda.gov and must be received by May 20, 2024. 
The email must contain the following information:
    (1) Subject line: ``Off-FLH New Construction Concept Call 
Request.''
    (2) Body of email: Borrower Name, Project Name, Borrower Contact 
Information, Project State.
    (3) Request language: ``We request to schedule a concept call to 
discuss our proposed application for the Off-FLH New Construction 
NOSA.''

K. Equal Opportunity Survey

    RHS will provide applicants the voluntary OMB 1890-0014 form, 
``Survey on Ensuring Equal Opportunity for Applicants,'' (or other 
forms currently being used by RHS) and ask the applicant to complete it 
and return it to RHS.

L. Substantial Portion of Income From Farm Labor

    The Notice 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). The term ``farm labor'' is defined in 7 CFR 
3560.11.

M. Build America, Buy America Act

    Funding to Non-Federal Entities. Awardees that are Non-Federal 
Entities, defined pursuant to 2 CFR 200.1 as any State, local 
government, Indian tribe, Institution of Higher Education, or nonprofit 
organization, shall be governed by the requirements of Section 70914 of 
the Build America, Buy America Act (BABAA) within the Infrastructure 
Investment and Jobs Act (Pub. L. 117-58), and its implementing 
regulations at 2 CFR part 184. Any requests for waiver of these 
requirements must be submitted pursuant to USDA's guidance available

[[Page 28732]]

online at https://www.usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver.

N. Equal Opportunity and Non-Discrimination Requirements

    In accordance with federal civil rights law and USDA civil rights 
regulations and policies, 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, etc.) should contact the 
responsible Mission Area, agency, staff office; or the 711 Relay 
Service. Additionally, program information may be made available in 
languages other than English.
    To file a program discrimination complaint, a complainant should 
complete Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.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 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: United States Department of Agriculture, Office of the 
Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410;
    (2) Fax: (202) 690-7442; or
    (3) Email at: usda.gov">program.intake@usda.gov.
    USDA is an equal opportunity provider, employer, and lender.

Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2024-08155 Filed 4-18-24; 8:45 am]
BILLING CODE 3410-XV-P