94-20432. Construction and Repair  

  • [Federal Register Volume 59, Number 160 (Friday, August 19, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-20432]
    
    
    [[Page Unknown]]
    
    [Federal Register: August 19, 1994]
    
    
                                                       VOL. 59, NO. 160
    
                                                Friday, August 19, 1994
    
    DEPARTMENT OF AGRICULTURE
    
    Farmers Home Administration
    
    7 CFR Part 1924
    
    RIN 0575-AA88
    
     
    
    Construction and Repair
    
    AGENCY: Farmers Home Administration, USDA.
    
    ACTION: Proposed rule.
    
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    SUMMARY: The Farmers Home Administration (FmHA) proposes to amend its 
    Planning and Performing Site Development Work regulation. This proposal 
    is consistent with Section 716 of the Housing and Community Development 
    Act of 1992 which amended Section 535 of the Housing Act of 1949 to 
    allow the Secretary to accept subdivisions that have been approved by 
    local, county or State agencies. FmHA will no longer review or approve 
    subdivisions, but will review individual sites for the program. This 
    action is consistent with similar actions being proposed or enacted by 
    HUD and VA. A good site approval authority will allow FmHA to bring 
    into the program many low cost homes in subdivisions that have already 
    been developed. Many of these were not previously reached because the 
    seller would not, or could not afford to furnish FmHA all the required 
    data for a total subdivision approval.
        To assure that lower income people, particularly minorities and 
    single women head-of-households, are afforded quality sites, 
    subdivisions must meet the community standards and the sites must meet 
    FmHA's site underwriting criteria. Environmental reviews will be 
    required on a site by site basis and cumulative effects will be 
    addressed when indicated.
    
    DATES: Comments should be received on or before October 18, 1994.
    
    ADDRESSES: Submit written comments in duplicate to the Office of the 
    Chief, Regulation Analysis and Control Branch, Farmers Home 
    Administration, USDA, room 6348, South Agriculture Building, 14th and 
    Independence Avenue SW., Washington, DC 20250. All written comments 
    will be available for public inspection at the above address during 
    regular work hours.
    
    FOR FURTHER INFORMATION CONTACT: Billy Chapman, Senior Loan Specialist, 
    Farmers Home Administration, USDA, Room 5334-S, South Agriculture 
    Building, 14th and Independence Avenue SW., Washington, DC 20250, 
    telephone (202) 720-1485.
    
    SUPPLEMENTARY INFORMATION:
    
    Classification
    
        This rule has been determined to be not-significant for purposes of 
    Executive Order 12866 and therefore has not been reviewed by the Office 
    of Management and Budget.
    
    Regulatory Flexibility Act
    
        Bob Nash, Under Secretary, Small Community and Rural Development, 
    has determined that this action will not have a significant economic 
    impact on a substantial number of small entities because the regulatory 
    changes affect FmHA processing of section 502 loans and individual 
    applicant eligibility for the program.
    
    Paperwork Reduction Act
    
        The information collection or recordkeeping requirements contained 
    in this regulation will be submitted to the Office of Management and 
    Budget (OMB) for review under section 3504(h) of the Paperwork 
    Reduction Act of 1980. Public reporting burden for this collection of 
    information is estimated to vary from 5 minutes to 10 minutes per 
    response, including time for reviewing instructions, searching existing 
    data sources, gathering and maintaining the data needed, and completing 
    and reviewing the collection of information. Please send written 
    comments to the Office of Information Regulatory Affairs, OMB, 
    Attention: Desk Officer for USDA, Washington, DC 20503. Please send a 
    copy of your comments to Jack Holston, Agency Clearance Officer, USDA, 
    FmHA Ag Box 0743, Washington, DC 20250.
    
    Environmental Impact Statement
    
        This document has been reviewed in accordance with 7 CFR part 1940, 
    subpart G, ``Environmental Program.'' It is the determination of FmHA 
    that this proposed action does not constitute a major Federal Action 
    significantly affecting the quality of the human environment, and in 
    accordance with the National Environmental Policy Act of 1969, Public 
    Law 91-190, an Environmental Impact Statement is not required.
    
    Intergovernmental Consultation
    
        For the reason set forth in the final rule and related Notice to 7 
    CFR part 3015, Subpart V, 48 FR 29115, June 24, 1983, this program/
    activity is excluded from the scope of Executive Order 12372 which 
    requires intergovernmental consultation with State and local officials.
    
    Program Affected
    
        These changes affect the following FmHA program as listed in the 
    Catalog of Federal Domestic Assistance:
    
    10.410, Low Income Housing Loans.
    
    Civil Justice Reform
    
        This document has been reviewed in accordance with Executive Order 
    (EO) 12778. It is the determination of FmHA that this action does not 
    unduly burden the Federal Court Systems in that it meets all applicable 
    standards provided in Section 2 of the EO.
    
    Regulatory Reform: Less Burdensome or More Efficient Alternatives
    
        The Department of Agriculture is committed to carrying out its 
    statutory and regulatory mandates in a manner that best serves the 
    public interest. Therefore, where legal discretion permits, the 
    Department actively seeks to promulgate regulations that promote 
    economic growth, create jobs, are minimally burdensome and are easy for 
    the public to understand, use or comply with. In short, the Department 
    is committed to issuing regulations that maximize the net benefits to 
    society and minimize costs imposed by those regulations.
        The Department has developed and reviewed this regulatory proposal 
    in accordance with these principles. Nonetheless, the Department 
    believes that public input from all interested persons can be 
    invaluable to ensuring that the final regulatory product is minimally 
    burdensome and maximally efficient. Therefore, the Department 
    specifically seeks comments and suggestions from the public regarding 
    any less burdensome or more efficient alternative that would accomplish 
    the purposes described in the proposal. Comments suggesting less 
    burdensome or more efficient alternatives should be addressed to the 
    agency as provided in this proposal.
    
    Discussion
    
        FmHA stands alone as the only Federal Agency that requires approval 
    of a complete subdivision prior to insuring or guaranteeing a loan for 
    a home within the subdivision. Developers, builders, realtors and 
    applicants for the programs have frequently complained that there is 
    too much ``red tape'' before an eligible applicant can receive an FmHA 
    loan within a well developed subdivision. Most counties and communities 
    now have adequate subdivision reviews, and FmHA's subdivision approval 
    is not needed to assure quality sites but is duplication of efforts.
        This action permits the better use of existing developments and 
    decreases the environmental impact because not as many new developments 
    will be needed to meet the demand for lots that will meet the Agency's 
    requirements. It fits into existing growth patterns and places more 
    authority with the local people.
        FmHA is committed to quality sites for its programs and therefore, 
    proposes close scrutiny of the site. The new site criteria incorporates 
    many of the prior subdivision requirements and makes them part of the 
    site underwriting criteria. This action provides for better sites, 
    without requiring the cumbersome subdivision review and approval 
    process. It also provides the loan applicant with assurance of a 
    quality water supply and property served by publicly owned and 
    maintained roads. The proposal provides for an orderly request for 
    review and systematic process of reviewing the site.
        This proposed regulation omits the detailed internal agency 
    administrative instruction used by the field offices to administer the 
    program. In the past, FmHA program regulations and FmHA Instructions 
    have been identical. The Agency has adopted a policy of publishing 
    regulations which set forth anything which confers a benefit or imposes 
    an obligation on the public or which is necessary for the public to 
    understand their responsibilities. The Agency does not intend to 
    publish a regulation that omits or evades issues which are subject to 
    public comment or would be of interest to the public. Any substantive 
    changes in the regulation will continue to be published in the Federal 
    Register. Each FmHA field office has a copy of the FmHA Instruction and 
    a copy is available upon request to FmHA.
        Conforming changes will be made in other FmHA regulations at the 
    final rule stage.
    
    List of Subjects in 7 CFR Part 1924
    
        Housing standards, Low and moderate income housing, Rural areas.
    
        Therefore, as proposed, Chapter XVIII, Title 7, Code of Federal 
    Regulations is amended as follows:
    
    PART 1924--CONSTRUCTION AND REPAIR
    
        1. The authority citation for part 1924 continues to read as 
    follows:
    
        Authority: 7 U.S.C 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR 
    2.23; 7 CFR 2.70.
    
    Subpart C--Planning and Performing Site Development Work
    
        2. Sections 1924.101 through 1924.150 of Subpart C of part 1924, 
    are revised and exhibit A is removed to read as follows:
    
    PART 1924--CONSTRUCTION AND REPAIR
    
    Subpart C--Planning and Performing Site Development Work
    
    
    Sec. 1924.101  Purpose.
    
        -This subpart establishes the basic Agency policies for planning 
    and performing site development work. It also provides the procedures 
    and guidelines for preparing site development plans consistent with 
    Federal laws, regulations and Executive Orders.
    
    
    Sec. 1924.102  General policy.
    
        (a) Rural development. This subpart provides for the development of 
    building sites and related facilities in rural areas. It is designed 
    to:
        (1) Recognize community needs and desires, and encourage leadership 
    responsibility in local planning, control and development.
        (2) Recognize standards for building-site design which encourage 
    and lead to the development of economically stable communities, and the 
    creation of attractive, healthy, and permanent living environments.
        (3) Encourage improvements planned for the site to be the most 
    cost-effective of the practicable alternatives. Encourage utilities and 
    services utilized to be reliable, efficient and available at reasonable 
    costs.
        (4) Provide for a planning process that will consider impacts on 
    the environment and existing development in order to formulate actions 
    that protect, enhance, and restore environmental quality.
        (b) Subdivisions. The Agency does not review or approve 
    subdivisions. Each site approved by the Agency must meet the 
    requirements of Sec. 1924.115 of this subpart, on a site by site basis.
        (c) Development related costs.
        (1) Applicant. The applicant is responsible for all costs incurred 
    before loan and/or grant closing associated with planning, technical 
    services, and actual construction. These costs may be included in the 
    loan/grant as authorized by Agency regulations.
        (2) Developer. The developer is responsible for payment of all 
    costs associated with development under this subpart.
    
    
    Sec. 1924.103  Scope.
    
        -This subpart is for Agency personnel when considering a site or 
    site development work for Rural Housing (RH) loans for individuals. It 
    provides supplemental requirements for Rural Rental Housing (RRH) 
    loans, Rural Cooperative Housing (RCH) loans, Farm Labor Housing (LH) 
    loans and grants, and Rural Housing Site (RHS) loans. It also provides 
    a site development standard (Exhibit B of this subpart) which 
    supplements this subpart to determine the acceptability of development. 
    All of this subpart applies to Single Family Housing unless otherwise 
    noted. All of this subpart also applies to Multiple Family Housing 
    except Secs. 1924.115, 1924.120 and 1924.121, which applies only to 
    Single Family Housing, and any paragraph specifically shown for Single 
    Family Housing. In addition, the Agency will consult with appropriate 
    Federal, State, and local agencies, other organizations, and 
    individuals to implement the provisions of this subpart.
    
    
    Sec. 1924.104  Definitions.
    
        As used in this subpart:
        Agency. Farmers Home Administration (FmHA).
        Applicant. Any person, partnership, limited partnership, trust, 
    consumer cooperative, corporation, public body or association that has 
    filed a preapplication, or in the case of Agency programs that do not 
    require a preapplication, an official application with the Agency in 
    anticipation of receiving or utilizing Agency financial assistance.
        Community. A community includes cities, towns, boroughs, villages, 
    and unincorporated places which have the characteristics of 
    incorporated areas with support services such as shopping, post office, 
    schools, central sewer and water facilities, police and fire 
    protection, hospitals, medical and pharmaceutical facilities, etc., and 
    are easily identifiable as established concentrations of inhabited 
    dwellings and private and public buildings.
        Developer. Any person, partnership, public body or corporation 
    which intends to develop a site(s) and ask the Agency to finance it.
        Development. The act of building structures and installing site 
    improvements on an individual dwelling site, a subdivision, or a 
    multiple family tract.
        Multiple Family Housing. Agency Rural Rental Housing loans, Rural 
    Cooperative Housing loans, Farm Labor Housing loans and grants, and 
    Rural Housing Site loans.
        Single Family Housing. Agency Rural Housing loans for individuals 
    for construction of, repair of, or purchase of a dwelling to be 
    occupied by one household.
        Site. A parcel of land proposed as a dwelling site, with or without 
    development.
        Site approval official. The Agency official making the 
    determination that a site meets the requirements in this subpart to be 
    acceptable for site loans. (See Sec. 1924.120 of this subpart.)
        Street surfaces. Streets may be hard or all weather surfaced.
        (1) Hard surface--a street with a portland cement concrete, 
    asphaltic concrete, or bituminous wearing surface or other hard 
    surfaces which are acceptable and suitable to the local public body for 
    use with local climate, soil, gradient, and volume and character of 
    traffic.
        (2) All-weather--a street that can be used year-round with a 
    minimum of maintenance, such as the use of a grader and minor 
    application of surface material, and is acceptable and suitable to the 
    local public body for use with local climate, soil, gradient, and 
    volume and character of traffic.
        Subdivision. Five or more contiguous (developed or undeveloped) 
    lots, or building sites. Subdivisions may be new or existing.
    
    
    Sec. 1924.105  Planning/performing development.
    
        (a) General. Planning is an evaluation of specific development for 
    specific land uses. Planning must take into consideration topography, 
    soils, climate, adjacent land use, environmental impacts, energy 
    efficiency, local economy, aesthetic and cultural values, public and 
    private services, housing and social conditions and a degree of 
    flexibility to accommodate changing demands. Although all planning and 
    performing development work is the responsibility of the applicant or 
    developer, close coordination must occur with local planning officials 
    and with the respective Agency office to minimize the chances of 
    spending money on development that does not meet the Agency's 
    requirements. All development will be arranged and completed according 
    to applicable local, State or Federal regulations including applicable 
    health and safety standards, environmental concerns and requirements of 
    this subpart. When a public authority requires inspections prior to 
    final acceptance, written assurance by the responsible public 
    authority, of compliance to local, city, county, State or other public 
    codes, regulations and ordinances is required prior to final acceptance 
    by the Agency.
        (1) Agency advice and assistance. Applicants and developers shall 
    be encouraged to seek the advice and assistance of the Agency before 
    significant expenditures are made. Actions taken which are not in 
    accordance with this subpart may jeopardize the possibility of 
    receiving future financial assistance from the Agency. When receiving 
    an inquiry about a Single Family Housing site development or a Multiple 
    Family Housing project, the Agency official receiving the request will:
        (i) Provide information regarding publications, site planning, 
    engineering data, environmental data, soils data, and other technical 
    advice and assistance which are available through local, State, and 
    Federal agencies, planning commissions, and private institutions and 
    organizations.
        (ii) Explain the requirements for compliance with subpart G of part 
    1940 of this chapter, as well as the limitations on applicants during 
    the application review process as prescribed in Sec. 1940.309 of 
    subpart G of part 1940 of this chapter.
        (iii) Discuss the requirements of the Agency with respect to 
    compliance with local, regional, and State regulations; construction 
    practices; energy efficiency; nondiscrimination; market analysis; good 
    site planning; and location. Also, when applicable, provide and explain 
    Form FmHA 400-4, ``Assurance Agreement,'' Form FmHA 400-1 ``Equal 
    Opportunity Agreement,'' and HUD Form 935.2, ``Affirmative Fair Housing 
    Marketing Plans.''
        (2) Technical services.
        (i) Professional assistance is available from the Soil Conservation 
    Service (SCS) and the Cooperative Extension Service.
        (ii) An applicant or developer for a Multiple Family Housing 
    project or a Single Family Housing site which requires technical 
    services under Sec. 1924.13(a) of subpart A of this part, must contract 
    for the technical services of an architect, engineer, land surveyor, 
    landscape architect, or site planner, as appropriate, to provide 
    complete planning, drawings, and specifications. Such services may be 
    provided by the applicant's or developer's ``in house'' staff subject 
    to Agency concurrence. Technical services must be performed by 
    professionals who are qualified and authorized to provide such services 
    in the State in which the project would be developed. All technical 
    services must be provided in accordance with the requirements of 
    professional registration or licensing boards. For payments for 
    technical services, follow Sec. 1924.102(c) of this subpart. At 
    completion of all construction or completion of a phase or phases of 
    the total project, the person(s) providing technical services under 
    this section must notify the Agency office in writing that all work has 
    been completed in substantial conformance with the approved plans and 
    specifications.
        (iii) For developments not specifically required to have technical 
    services under paragraph (a)(2)(ii) of this section, such services may 
    be required by the State Director when construction of streets or 
    installation of utilities is involved.
        (3) Drawings, specifications, contract documents, and other 
    documentations. Adequate drawings and specifications must be provided 
    by the applicant or developer to fully describe the work. Contract 
    documents must be prepared under Sec. 1924.6 or, in the case of more 
    complex construction, Sec. 1924.13 of subpart A of this part.
        (b) Single Family Housing. Proposals for development of individual 
    dwelling sites have the following specific requirements:
        (1) Site development design requirements. Exhibit B of this subpart 
    will be used as a guide by applicants or developers in preparing 
    proposals and supporting documents for Single Family Housing loans, in 
    addition to specific requirements made in this subpart.
        (2) Environmental review.
        (i) An individual Single Family Housing loan is normally considered 
    a Categorical Exclusion under the National Environmental Policy Act 
    (NEPA). However, Form FmHA 1940-22, ``Environmental Checklist for 
    Categorical Exclusions,'' must be completed by the Agency to determine 
    that the specific action complies not only with NEPA, but also with 
    other applicable environmental laws, executive orders, and regulations. 
    To complete the form, the preparer will use reliable environmental 
    information. Sources of such information include, but are not limited 
    to, the State's Natural Resource Management Guide and the appraisal. If 
    the completed Form FmHA 1940-22 indicates a potential impact to one or 
    more environmental resources, the action is subject to disqualification 
    as Categorical Exclusion and a Class I assessment must be completed in 
    accordance with Sec. 1940.317(g) of subpart G of Part 1940 of this 
    chapter. If it is obvious at the outset that the action will be 
    disqualified as a Categorical Exclusion, the preparer should forego 
    completion of Form FmHA 1940-22 and proceed directly to the Class I 
    assessment.
        (ii) If it appears that an action will be subject to 
    disqualification as a Categorical Exclusion due to indications of 
    cumulative impacts, a Class I or Class II assessment will be completed, 
    as appropriate, in accordance with subpart G of Part 1940 of this 
    chapter. A cumulative impact is the impact on the environment which 
    results from the incremental impact of the proposed action, when added 
    to other past, present and reasonably foreseeable future actions, 
    regardless of what Agency (Federal or non-Federal) or person undertakes 
    such other actions.
        (c) Multiple Family Housing. Exhibit C of this subpart should be 
    used as a guide by the applicant or developer in preparing a proposal 
    and supporting documents for Multiple Family Housing projects. Exhibit 
    B of this subpart contains site development design requirements which 
    apply to all Multiple Family Housing projects.
    
    
    Sec. 1924.106  Location.
    
        (a) General. It is the Agency's policy to promote compact community 
    development and not to approve sites located in floodplains, on 
    wetlands, or on important farmlands, unless there is no practical 
    alternative. Furthermore, the Agency will not accept locations that 
    adversely affect properties which are listed or are eligible for 
    listing on the National Register of Historic Places, located within the 
    Coastal Barrier Resource System, or on a barrier island. In order to be 
    eligible for Agency participation:
        (1) The site must be located in an eligible area as defined in the 
    program regulations under which the development is being funded or 
    approved.
        (2) The proposal must comply with the applicable environmental 
    laws, Executive Orders, and subpart G of part 1940 of this chapter.
        (b) Single Family Housing. In addition to the general requirements 
    in paragraph (a) of this section, sites must provide a desirable, safe, 
    functional, convenient, and attractive living environment for the 
    residents, and insure long-term market demand and acceptability.
        (c) Multiple Family Housing. Multiple family housing projects shall 
    be located in accordance with the requirements in paragraph (r) of 
    Sec. 1944.215 of subpart E of part 1944 of this chapter. Locating sites 
    in less than desirable locations of the community or in close proximity 
    to undesirable influences such as railroad tracks, cemeteries; adjacent 
    to or behind commercial sites; bordering structures which are not 
    decent, safe, or sanitary or a positive conducive influence on the 
    proposed site; bordering sites which have potential environmental 
    concerns such as processing plants, etc., is not acceptable. Screening 
    such sites does not make them acceptable. Sites which are not an 
    integral part of a residential community and do not have a reasonable 
    access, either by location or terrain, to essential community 
    facilities such as water, sewerage, schools, shopping, employment 
    opportunities, medical facilities, etc., are equally not acceptable.
    
    
    Sec. 1924.107  Utilities.
    
        All development under this subpart must have adequate, economic, 
    safe, energy efficient, dependable utilities with sufficient easements 
    for installation and maintenance.
        (a) Water and wastewater disposal systems.
        (1) Single Family Housing. If sites are served by central water or 
    sewer systems the systems must meet the requirements of paragraphs 
    (a)(2) (i) and (ii) of this section. If sites have individual water or 
    sewer systems they must meet the requirements for water and sewerage in 
    Exhibit B, paragraphs V and VI of this subpart. Sites in subdivisions 
    of more than 25 dwelling units on individual systems, or sites that do 
    not meet the requirements of Exhibit B, paragraphs V and VI of this 
    subpart, must have State Director concurrence.
        (2) Multiple Family Housing. Proposals processed under this 
    paragraph shall be served by centrally owned and operated water and 
    wastewater disposal systems unless this is determined to be 
    economically or environmentally unfeasible. All central systems, 
    whether they are public, community or private, shall meet the design 
    requirements of the State Department of Health or other comparable 
    reviewing and regulatory authority(ies). The regulatory authority(ies) 
    will verify in writing that the water and wastewater systems are in 
    compliance with the current provisions of the Safe Drinking Water Act 
    and the Clean Water Act, respectively.
        (i) Sites which are not presently served by a central system, but 
    are scheduled for tie-in to the central system within 2 years should 
    have all lines installed during the initial construction. Such 
    developments must have an approved interim water supply or wastewater 
    disposal system installed capable of satisfactory service until the 
    scheduled tie-in occurs.
        (ii) In addition to written assurance of compliance with State and 
    local requirements, there must be assurance of continuous service at 
    reasonable rates for central water and wastewater disposal systems. 
    Public ownership is preferred whenever possible. In cases where interim 
    facilities are installed pending extension or construction of permanent 
    public services, the developer must assume responsibility for the 
    operation and maintenance of the interim facility or establish an 
    entity for its operation and maintenance which is acceptable to the 
    local governing body. If a system is not or will not be publicly owned 
    and operated, it must comply with one of the following:
        (A) Be an organization that meets the ownership and operating 
    requirements for a water or wastewater disposal system that the Agency 
    could finance under subpart A of part 1942 of this chapter or be 
    dedicated to and accepted by such an organization.
        (B) Be an organization or individual that meets other acceptable 
    methods of ownership and operation as outlined in HUD Handbook 4075.12, 
    ``Ownership and Organization of Central Water and Sewerage Systems.'' 
    The Agency should be assured that the organization has the right, in 
    its sole discretion, to enforce the obligation of the operator of the 
    water and/or sewerage systems to provide satisfactory continuous 
    service at reasonable rates. The advice and assistance of the Regional 
    Attorney should be obtained in preparing any necessary agreement with 
    the organization or individual supplying water and/or sewerage systems.
        (C) Be adequately controlled as to rates and services by a public 
    body (unit of Government or public services commission).
        (iii) When central systems are not available, the Agency will 
    thoroughly evaluate the proposed individual systems for economic 
    feasibility and potential impact on the environment. Information and 
    guidance for evaluation and design of individual water and wastewater 
    systems is contained in Environmental Protection Agency (EPA) 
    publications ``Manual of Individual Water Supply Systems'' and ``Design 
    Manual, Onsite Wastewater Treatment and Disposal Systems'', 
    respectively. Developments of more than 25 dwelling units with 
    individual systems must have the National Office concurrence. A request 
    for concurrence must contain written recommendations and the following:
        (A) Information prepared by the local, county or State regulatory 
    authority having jurisdiction indicating whether individual systems are 
    feasible on the proposed sites. Supporting factual data should include 
    evidence that clearly shows that individual systems will perform 
    satisfactorily for a reasonable period of time with reasonable 
    maintenance cost. Reasonable time and reasonable cost can be equated 
    with the cost and expected life of a central system if one were 
    available.
        (B) Supporting information for the proposed individual water 
    systems, covering the following points:
        (1) Documentation of how individual water supplies can be developed 
    with satisfactory water production at a reasonable cost. In areas where 
    difficulty is anticipated in developing an acceptable water supply, the 
    availability of a water supply will be determined before closing the 
    loan.
        (2) Documentation that the quality of the supply meets the 
    chemical, physical and bacteriological standards of the regulatory 
    authority having jurisdiction. The maximum contaminant levels of U.S. 
    EPA shall apply. Individual water systems must be tested for quantity 
    and bacteriological quality. Where problems are anticipated with 
    chemical quality, chemical tests may be required. Chemical tests would 
    be limited to analysis for the defects common to the area such as iron 
    and manganese, hardness, nitrates, pH, turbidity, color, or other 
    undesirable elements. Polluted or contaminated water supplies are 
    unacceptable. In all cases, assurance of a potable water supply before 
    loan closing is required.
        (C) Supporting information for individual wastewater disposal 
    systems with subsurface discharge provided by a soil scientist, 
    geologist, soils engineer, or other person recognized by the local 
    regulatory authority. This data should include the following:
        (1) Assurance of nonpollution of ground water. The local regulatory 
    authority having jurisdiction must be consulted to ensure that 
    installation of individual wastewater systems will not pollute ground 
    water sources or create other health hazards/or otherwise violate State 
    water quality standards.
        (2) Records of percolation tests. Guidance for performing these 
    tests is included in the EPA design manual, ``Onsite Wastewater 
    Treatment and Disposal Systems.'' (This may be waived by the State 
    Director when the State has established other acceptable means for 
    allowing onsite disposal.)
        (3) Determination of soil types and description. The assistance of 
    the SCS or other qualified persons should be obtained for soil type 
    determination and a copy of its recommendations included in the 
    documentation.
        (4) Description of ground water elevations, showing seasonal 
    variations.
        (5) Confirmation of space allowances. An accurate drawing to 
    indicate that there is adequate space available to satisfactorily 
    locate the individual water and/or wastewater disposal systems; 
    likewise, documented assurance of compliance with all local 
    requirements. Structures served by wastewater disposal systems with 
    subsurface discharge require larger sites than those structures served 
    by another type system.
        (6) Description of exploratory pit observations, if available.
        (D) Supporting information for individual wastewater disposal 
    systems with surface discharge covering the following points:
        (1) Effluent standards issued by the appropriate regulatory agency 
    that controls the discharge of the proposed individual systems. 
    Assurance from this regulatory agency that the effluent standards will 
    not be exceeded by the individual systems being proposed.
        (2) Program of maintenance, parts and service available to the 
    system-owner for upkeep of the system.
        (3) A plan for local inspection of the system by a responsible 
    agency with the authority to ensure compliance with health and safety 
    standards.
        (b) Electric service. The power supplier will be consulted by the 
    applicant to assure that there is adequate service available to meet 
    the needs of the proposed development. Underground service is 
    preferred.
        (c) Gas service. Gas distribution facilities, if provided, will be 
    installed according to local requirements where adequate and dependable 
    gas service is available.
        (d) Other utilities. Other utilities, if available, will be 
    installed according to local requirements.
    
    
    Sec. 1924.108  Grading and drainage.
    
        (a) General. Soil and geologic conditions must be suitable for the 
    type of construction proposed. In questionable or unsurveyed areas, the 
    applicant or developer will provide an engineering report with 
    supporting data sufficient to identify all pertinent subsurface 
    conditions which could adversely affect the structure and show proposed 
    solutions. Grading will promote drainage of surface water away from 
    buildings and foundations, minimize earth settlement and erosion, and 
    assure that drainage from adjacent properties onto the development or 
    from the development to adjacent properties does not create a health 
    hazard or other undesirable conditions. Grading and drainage will 
    comply with Exhibit B, paragraphs III and IV, of this subpart.
        (b) Cuts and fills. Development requiring extensive earthwork, cuts 
    and fills of 4 feet or more shall be designed by a duly licensed or 
    registered engineer. Where topography requires fills or extensive 
    earthwork that must support structures and building foundations, these 
    must be controlled fills designed, supervised and tested by a qualified 
    soils engineer.
        (c) Slope protection. All slopes must be protected from erosion by 
    planting or other means. Slopes may require temporary cover if exposed 
    for long periods during construction.
        (d) Storm water systems. The design of storm water systems must 
    consider convenience and property protection both at the individual 
    site level and the drainage basin level. Storm water systems should be 
    compatible with the natural features of the site. In areas with 
    inadequate natural and/or man-made drainage systems, permanent and/or 
    temporary storm water storage shall be an integral part of the overall 
    development plan. Design of these facilities shall consider safety, 
    appearance and economical maintenance operations.
    
    
    Secs. 1924.109-1924.114  [Reserved]
    
    
    Sec. 1924.115  Single Family Housing site evaluation.
    
        (a) Site review. The site approval official will evaluate each site 
    (developed or undeveloped) to determine acceptance for the program. 
    Information on the site will be provided by the appraiser on a form 
    provided by the Agency and available in any Agency office. The review 
    appraiser and/or the site approval official will review the 
    information, complete any required information, and sign the back of 
    the form. If the site is new construction in a subdivision, the builder 
    will provide Form HUD-92541, ``Builder's Certification of Plans, 
    Specifications, and Site'', available in any Agency office. The site 
    approval official must complete the proper environmental review 
    required by subpart G of part 1940 of this chapter for each site. (See 
    Sec. 1924.105(b)(2) of this subpart.)
        (b) Site access. Each site must be contiguous to and have direct 
    access from:
        (1) A hard surfaced or all weather street or road which is 
    developed in full compliance with public body requirements, dedicated 
    for public use, and is being maintained by a public body or a Home 
    Owners Association that has demonstrated its ability or can clearly 
    demonstrate its ability to maintain the street, or
        (2) An all weather extended driveway which can serve no more than 
    two sites connecting to a hard surface or all weather street or road 
    that meets the requirements of the above paragraph, or
        (3) A hard surfaced street in a condominium or townhouse complex 
    which:
        (i) Is owned in common by the members or a member association and 
    is maintained by a member association that has demonstrated its ability 
    or can clearly demonstrate its ability to maintain the street, and
        (ii) Connects to a publicly owned and dedicated street or road.
        (c) Exceptions to street requirements. A site not meeting the 
    conditions in paragraph (b) of this section will be acceptable if:
        (1) The applicant is a builder for a conditional commitment (a loan 
    will not be approved until the site meets the conditions in paragraph 
    (b) of this section), or the builder posts an irrevocable performance 
    and payment bond (or similar acceptable assurance) that assures the 
    site approval official that the site will be developed to meet the 
    conditions in paragraph (b) of this section, or
        (2) The site is recommended by the site approval official and 
    approved by the State Director. A request for State Director approval 
    must justify that it is in the best interest of both the government and 
    the applicant to approve the site.
        (d) Site layout. (1) Sites shall be surveyed and platted. Permanent 
    markers shall be placed at all corners.
        (2) Sites shall meet all requirements of State and local entities 
    and the Agency.
        (e) Covenants, conditions and restrictions. Sites in subdivisions 
    shall be protected by covenants, conditions and restrictions (CC&Rs) to 
    preserve the character, value and amenities of the residential 
    community and to avoid or mitigate potential environmental impacts 
    unless, an exception is granted by the State Director after considering 
    the suitability of local ordinances, zoning, and other land use 
    controls.
        (1) CC&Rs shall be recorded in the public land records and 
    specifically referenced in each deed.
        (2) The intent of the CC&Rs is to assure the developers that the 
    purchasers will use the land in conformance with the planned objectives 
    for the community. In addition, the CC&Rs should assure the purchasers 
    that the developers will proceed to use the land as planned and that 
    other purchasers will use and maintain the land as planned to prevent 
    changes in the character of the neighborhood that would adversely 
    impact values or create a nuisance.
    
    
    Secs. 1924.116-1924.119  [Reserved]
    
    
    Sec. 1924.120  Approval authority.
    
        The State Director is responsible for delegating Single Family 
    Housing site review and approval authority to appropriate employees 
    when the employees have had sufficient training and have demonstrated 
    the capability to perform the required actions, delegation is in 
    writing in accordance with FmHA Instruction 2006-F.
    
    
    Sec. 1924.121  [Reserved]
    
    
    Sec. 1924.122  Exception authority.
    
        The Administrator may in individual cases, make an exception to any 
    requirement or provision of this subpart or address any omission of 
    this subpart which is not inconsistent with the authorizing statute or 
    other applicable law if the Administrator determines that application 
    of the requirement or provision would adversely affect the Government's 
    interest. The Administrator will exercise this authority upon the 
    written request of the State Director or the appropriate program 
    Assistant Administrator. Requests for exceptions must be supported with 
    documentation to explain the adverse effect on the Government, proposed 
    alternative courses of action, and show how the adverse effect will be 
    eliminated or minimized if the exception is granted.
    
    
    Sec. 1924.123  State supplements and exhibits.
    
        (a) State supplements. State Directors may supplement this subpart 
    only to meet State and local laws and regulations and to provide for 
    orderly processing of submittals.
        (b) State exhibits. State Directors may develop exhibits for use by 
    applicants or developers if the exhibits to this subpart are not 
    adequate for use in the State. Those exhibits may be developed to 
    further explain the items needed within the various submittals; 
    organization of those items; and coordination of this subpart with the 
    requirements of the Agency program(s) providing the financial 
    assistance.
    
    
    Sec. 1924.124-1924.149  [Reserved]
    
    
    Sec. 1924.150  OMB control number.
    
        3. Exhibit A of subpart C is removed and reserved.
    
        Dated: June, 14, 1994.
    Bob J. Nash,
    Under Secretary for Small Community and Rural Development.
    [FR Doc. 94-20432 Filed 8-18-94; 8:45 am]
    BILLING CODE 3410-07-U
    
    
    

Document Information

Published:
08/19/1994
Department:
Agriculture Department
Entry Type:
Uncategorized Document
Action:
Proposed rule.
Document Number:
94-20432
Dates:
Comments should be received on or before October 18, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: August 19, 1994
RINs:
0575-AA88
CFR: (17)
7 CFR 1924.105(b)(2)
7 CFR 1924.101
7 CFR 1924.102
7 CFR 1924.103
7 CFR 1924.104
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