98-30665. Notice of Funding Availability (NOFA) for the section 515 Rural Rental Housing Program

[Federal Register Volume 63, Number 220 (Monday, November 16, 1998)]
[Notices]
[Pages 63667-63669]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30665]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Funding Availability (NOFA) for the section 515 Rural 
Rental Housing Program

AGENCY: Rural Housing Service (RHS), USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This NOFA announces the timeframe to submit applications for 
section 515 Rural Rental Housing loan funds and section 521 Rental 
Assistance (RA) for new construction, including applications for the 
Nonprofit Set-Aside for eligible nonprofit entities, the set-aside for 
the 100 most Underserved Counties and Colonias (Cranston-Gonzalez Act), 
and the set-aside for Empowerment Zones and Enterprise Communities (EZ/
ECs). This document describes the methodology that will be used to 
distribute funds, the application process, submission requirements, and 
areas of special emphasis or consideration.

DATES: The closing deadline for receipt of all applications, including 
the set-asides, in response to this NOFA is 5:00 p.m., local time for 
each Rural Development State office on January 15, 1999. The 
application closing deadline is firm as to date and hour. RHS will not 
consider any application that is received after the closing deadline. 
Applicants intending to mail applications must provide sufficient time 
to permit delivery on or before the closing deadline date and time. 
Acceptance by a post office or private mailer does not constitute 
delivery. Facsimile (FAX), COD, and postage due applications will not 
be accepted.

ADDRESSES: Applicants wishing to apply for assistance must contact the 
Rural Development State office serving the place in which they desire 
to submit an application for rural rental housing to receive further 
information and copies of the application package. Rural Development 
will date and time stamp incoming applications to evidence timely 
receipt, and, upon request, will provide the applicant with a written 
acknowledgment of receipt. A listing of Rural Development State 
offices, their addresses, telephone numbers, and person to contact 
follows:

    Note: Telephone numbers listed are not toll-free.

Alabama State Office, Suite 601, Sterling Centre, 4121 Carmichael 
Road, Montgomery, AL 36106-3683, [phone], TDD [phone], 
James B. Harris
Alaska State Office, 800 West Evergreen, Suite 201, Palmer, AK 
99645, [phone], TDD [phone], Ron Abbott
Arizona State Office, Phoenix Corporate Center, 3003 N. Central 
Ave., Suite 900, Phoenix, AZ 85012-2906, [phone], TDD (602) 
280-8701, Steve Langstaff
Arkansas State Office, 700 W. Capitol Ave., Rm. 3416, Little Rock, 
AR 72201-3225, [phone], TDD [phone], Cathy Jones
California State Office, 430 G Street, Agency 4169, Davis, CA 95616-
4169, [phone], Robert P. Anderson
Colorado State Office, 655 Parfet Street, Room E100, Lakewood, CO 
80215, [phone] (ext. 122), TDD [phone], ``Sam'' 
Mitchell
Connecticut--Served by Massachusetts State Office
Delaware/Maryland State Office, 5201 South Dupont Highway, PO Box 
400, Camden, DE 19934-9998, [phone], TDD [phone], W. 
Arthur Greenwood
Florida & Virgin Islands State Office, 4440 N.W. 25th Place, PO Box 
147010, Gainesville, FL 32614-7010, [phone], TDD (352) 338-
3499, Joseph P. Fritz
Georgia State Office, Stephens Federal Building, 355 E. Hancock 
Avenue, Athens, GA 30601-2768, [phone], TDD [phone], 
Wayne Rogers
Guam--Served by Hawaii State Office
Hawaii, Guam, & Western Pacific Territories State Office, Room 311, 
Federal Building, 154 Waianuenue Avenue, Hilo, HI 96720, (808) 933-
3000, TDD [phone], Abraham Kubo,
Idaho State Office, Suite A1, 9173 West Barnes Dr., Boise, ID 83709, 
[phone], TDD [phone], Roni Atkins
Illinois State Office, Illini Plaza, Suite 103, 1817 South Neil 
Street, Champaign, IL 61820, [phone] (ext. 256), TDD (217) 
398-5396, Barry L. Ramsey
Indiana State Office 5975 Lakeside Boulevard, Indianapolis, IN 
46278, [phone], TDD [phone], John Young
Iowa State Office, 873 Federal Building, 210 Walnut Street, Des 
Moines, IA 50309, [phone], TDD [phone], Bruce McGuire
Kansas State Office, 1200 SW Executive Drive, PO Box 4653, Topeka, 
KS 66604,

[[Page 63668]]

[phone], TDD [phone], Gary Shumaker
Kentucky State Office, 771 Corporate Drive, Suite 200, Lexington, KY 
40503, [phone], TDD [phone], Paul Higgins
Louisiana State Office, 3727 Government Street, Alexandria, LA 
71302, [phone], TDD [phone], Yvonne R. Emerson
Maine State Office, 444 Stillwater Ave., Suite 2, PO Box 405, 
Bangor, ME 04402-0405, [phone], TDD [phone], Dale D. 
Holmes
Maryland--Served by Delaware State Office
Massachusetts, Connecticut, & Rhode Island State Office, 451 West 
Street, Amherst, MA 01002, [phone], Donald Colburn
Michigan State Office, 3001 Coolidge Road, Suite 200, East Lansing, 
MI 48823, [phone] (ext. 1609), TDD [phone], Philip 
Wolak
Minnesota State Office, 410 AgriBank Building 375 Jackson Street, 
St. Paul, MN 55101-1853, [phone], TDD [phone], Mary 
Ann Erickson
Mississippi State Office, Federal Building, Suite 831, 100 W. 
Capitol Street, Jackson, MS 39269, [phone], TDD (601) 965-
5850, Danny Ivy
Missouri State Office, 601 Business Loop 70 West, Parkade Center, 
Suite 235, Columbia, MO 65203, [phone], TDD [phone], 
Gary Frisch
Montana State Office, Unit 1, Suite B, 900 Technology Blvd., 
Bozeman, MT 59715, [phone], TDD [phone], MaryLou 
Falconer
Nebraska State Office, Federal Building, Room 152, 100 Centennial 
Mall N, Lincoln, NE 68508, [phone], TDD [phone], Byron 
Fischer
Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-
9910, [phone], TDD [phone] (ext. 13), William L. 
Brewer
New Hampshire--Served by Vermont State Office,
New Jersey State Office, Tarnsfield Plaza, Suite 22, 790 Woodland 
Road, Mt. Holly, NJ 08060, [phone], George Hyatt, Jr.
New Mexico State Office, 6200 Jefferson St., NE, Room 255, 
Albuquerque, NM 87109, [phone], TDD [phone], Carmen N. 
Lopez
New York State Office, The Galleries of Syracuse, 441 S. Salina 
Street, Suite 357, Syracuse, NY 13202, [phone], TDD (315) 
477-6447, George N. Von Pless
North Carolina State Office, 4405 Bland Road, Suite 260, Raleigh, NC 
27609, [phone], TDD [phone], Eileen Nowlin
North Dakota State Office, Federal Building, Room 208, 220 East 
Rosser, PO Box 1737, Bismarck, ND 58502, [phone], TDD (701) 
250-4794, Kathy Lake
Ohio State Office, Federal Building, Room 507, 200 North High 
Street, Columbus, OH 43215-2477, [phone], TDD [phone], 
Gerald Arnott
Oklahoma State Office, 100 USDA, Suite 108, Stillwater, OK 74074-
2654, [phone], TDD [phone], Patsy Graumann
Oregon State Office, 101 SW Main, Suite 1410, Portland, OR 97204-
3222, [phone], TDD [phone], Jillene Davis
Pennsylvania State Office, One Credit Union Place, Suite 330, 
Harrisburg, PA 17110-2996, [phone], TDD [phone], Gary 
Rothrock
Puerto Rico State Office, New San Juan Office Bldg., Room 501, 159 
Carlos E. Chardon Street, Hato Rey, PR 00918-5481, [phone] 
Ext. 254, TDD 1-800-274-1572, Lourdes Colon
Rhode Island--Served by Massachusetts State Office
South Carolina State Office, Strom Thurmond Federal Building, 1835 
Assembly Street, Room 1007, Columbia, SC 29201, [phone], TDD 
[phone], Larry D. Floyd
South Dakota State Office, Federal Building, Room 210, 200 Fourth 
Street, SW, Huron, SD 57350, [phone], TDD [phone], 
Dwight Wullweber
Tennessee State Office, Suite 300, 3322 West End Avenue, Nashville, 
TN 37203-1084, [phone], G. Benson Lasater
Texas State Office, Federal Building, Suite 102, 101 South Main, 
Temple, TX 76501, [phone], TDD [phone], Eugene G. 
Pavlat
Utah State Office, Wallace F. Bennett Federal Building, 125 S. State 
Street, Room 4311, Salt Lake City, UT 84147-0350, [phone], 
TDD [phone], Robert L. Milianta
Vermont & New Hampshire State Office, City Center, 3rd Floor, 89 
Main Street, Montpelier, VT 05602, [phone], TDD (802) 223-
6365, Russell Higgins,
Virgin Islands--Served by Florida State Office
Virginia State Office, Culpeper Building, Suite 238, 1606 Santa Rosa 
Road, Richmond, VA 23229, [phone], TDD [phone], 
Carlton Jarratt
Washington State Office, 1835 Black Lake Blvd. SW., Suite B, 
Olympia, WA 98512-5715, [phone], TDD [phone], Deborah 
Davis
Western Pacific Territories--Served by Hawaii State Office
West Virginia State Office, Federal Building, 75 High Street, Room 
320, Morgantown, WV 26505-7500, [phone], TDD [phone], 
Sue Snodgrass
Wisconsin State Office, 4949 Kirschiling Court, Stevens Point, WI 
54481, [phone], TDD [phone], Sherry Engel
Wyoming State Office, 100 East B, Federal Building, Room 1005, P.O. 
Box 820, Casper, WY 82602, [phone], TDD [phone], 
Charles E. Huff

FOR FURTHER INFORMATION CONTACT: Some States may have a loan limit that 
is lower than the National maximum ($2.5 million) established in this 
Notice; therefore, applicants must contact the appropriate Rural 
Development State Office listed elsewhere in this Notice for funding 
limitations. For general information, applicants may contact Linda 
Armour, Cynthia L. Reese-Foxworth, or Carl Wagner, Senior Loan 
Officers, Multi-Family Housing Processing Division, Rural Housing 
Service, United States Department of Agriculture, Stop 0781, 1400 
Independence Avenue, SW, Washington, DC, 20250, telephone (202) 720-
1604 (this is not a toll free number).

SUPPLEMENTARY INFORMATION:

Programs Affected

    The Rural Rental Housing Program is listed in the Catalog of 
Federal Domestic Assistance under Number 10.415, Rural Rental Housing 
Loans. Rental Assistance is listed in the Catalog under Number 10.427, 
Rural Rental Assistance Payments.

Explanation of 60-Day NOFA Application Deadline

    The Agency is using a 60-day application period so that the NOFA 
process will coincide with the time restraints placed upon our 
customers by participating lenders and State Housing Finance Agencies 
(SHFA). Participating lenders such as commercial banks leverage their 
funds with RHS funds. State organizations can provide Community 
Development Block Grants (CDBG) and HOME funds as another means of 
leveraging RHS funds. SHFAs have certain timeframes whereby applicants 
can apply for tax credits. Therefore, to assist as many of our 
customers as possible in obtaining leveraged funds and to participate 
with other funding sources, a 60-day application period is provided.

Discussion of Notice

I. Authority and Distribution Methodology

A. Authority
    Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) provides 
RHS the authority to make loans to any individual, corporation, 
association, trust, Indian tribe, public and private nonprofit 
organizations, consumer cooperative, or partnership to provide rental 
or cooperative housing and related facilities for elderly, handicapped, 
or disabled persons or families of low or moderate income as well as 
other persons and families of low income in rural areas. Rental 
assistance is a tenant subsidy available to very-low and low-income 
families residing in rural rental housing facilities with RHS 
financing, and is requested with application for such facilities.
B. Distribution Methodology
    The total amount available for FY 1999 for section 515 is $114 
million. Of that amount, $79 million is available for new construction 
as follows:

Set-Aside for Nonprofits..................................    $7,560,000
Set-Aside for Underserved Counties and Colonias...........     4,200,000
Set-Aside for EZ/EC.......................................     7,250,000
General Reserve...........................................     5,740,000

[[Page 63669]]

State Rental Assistance (RA) Designated Reserve...........     1,500,000
Regular Section 515 Funds.................................    52,750,000

    The General Reserve will first be used for hardships, emergencies, 
and cooperative housing requests. If funds remain, the Administrator 
may consider group home requests. Group home requests must be located 
in a designated place and must be submitted under this NOFA.
    The remaining $35 million will be available for repair and 
rehabilitation loans and for equity loans.
    For fiscal year 1999, the Administrator has determined that it 
would not be practical to allocate funds to States because of funding 
constraints; therefore, section 515 new construction funds will be 
distributed to States based on a National competition, as follows:
    1. States will accept, review, score, and rank requests in 
accordance with 7 CFR part 1944, subpart E.
    2. The National office will rank all requests nationwide and 
distribute funds to States in rank order, within funding and RA limits. 
If insufficient funds or RA remain for the next ranked proposal, the 
Agency will select the next ranked proposal that falls within the 
remaining levels.
C. Eligible Prior Year Applications
    The Rural Housing Service published a Final Rule, in the Federal 
Register (62 FR 67216, on December 23, 1997) outlining its application 
and review process for section 515 Rural Rental Housing new 
construction program. The implementation proposal for those regulations 
provided that some applicants who filed acceptable loan requests in 
prior years could proceed with their loan requests provided they were 
in compliance with the newly published regulations. The following 
States have applications on hand from prior years in designated places 
that will count toward the $2.5 million maximum that a State may 
receive:

Alabama
Colorado

    Applicants are advised to contact those States to ascertain the 
amount the State is eligible to compete for in the National NOFA.

II. Funding Limits

    A. Individual loan requests may not exceed $1 million. This applies 
to regular Section 515 funds and set-aside funds. The Administrator may 
make an exception to this limit in cases where a State's average total 
development costs exceed the National average by 50 percent or more. 
States may establish a lower limit than $1 million.
    B. No State may receive more than $2.5 million from regular section 
515 funds. Reserve funds, including set-aside funds, are not included 
in this cap.

II. Rental Assistance (RA)

    New construction RA will be held in the National Office for use 
with section 515 Rural Rental Housing loans.

III. Application Process

    All applications for section 515 new construction funds must be 
filed with the appropriate Rural Development State office and must meet 
the requirements of 7 CFR part 1944, subpart E and section IV of this 
NOFA. Incomplete applications will not be reviewed and will be returned 
to the applicant. No application will be accepted after 5:00 p.m., 
local time, on the application deadline previously mentioned unless 
that date and time is extended by a Notice published in the Federal 
Register.

IV. Application Submission Requirements

    A. Each application shall include all of the information, 
materials, forms and exhibits required by 7 CFR part 1944, subpart E as 
well as comply with the provisions of this NOFA. Applicants are 
encouraged, but not required, to include a checklist and to have their 
applications indexed and tabbed to facilitate the review process. The 
Rural Development State office will base its determination of 
completeness of the application and the eligibility of each applicant 
on the information provided in the application.
    B. Applicants are advised to contact the Rural Development State 
office serving the place in which they desire to submit an application 
for the following:
    1. Application information;
    2. Any restrictions on funding availability (applications that do 
not conform to or exceed the State's limit on size of project or dollar 
amount will be returned to the applicant); and
    3. List of designated places for funding new section 515 
facilities.

V. Areas of Special Emphasis or Consideration

    A. The selection criteria contained in 7 CFR part 1944, subpart E 
includes two optional criteria, one set by the National office and one 
by the State office. This fiscal year, the National office initiative 
will be used in the selection criteria as follows: In states where RHS 
has an on-going formal working relationship, agreement, or Memorandum 
of Understanding (MOU) with the State to provide State Resources (State 
funds, State RA, HOME funds, CDBG funds, or LIHTC) for RHS proposals; 
or where the State provides preference or points to RHS proposals in 
awarding these State Resources, 20 points will be provided to loan 
requests that include such State Resources. No State selection criteria 
will be used this fiscal year.
    B. $7.56 million is available nationwide in a set-aside for 
eligible Nonprofit organizations as defined in 42 U.S.C. 1485(w).
    C. $4.2 million is available nationwide in a set-aside for the 100 
most Underserved Counties and Colonias.
    D. $7.25 million is available nationwide in a set-aside for EZ/ECs.
    E. $1.5 million is available nationwide in a set-aside for the 
State Rental Assistance Program. These funds are available for States 
with viable State Rental Assistance Programs. In order to participate, 
States are to submit specific written information about the State RA 
program, i.e., a memorandum of understanding, documentation from the 
provider, etc., to the National office.

    Dated: November 10, 1998.
Jan E. Shadburn,
Administrator, Rural Housing Service.
[FR Doc. 98-30665 Filed 11-13-98; 8:45 am]
BILLING CODE 3410-XV-U