To
assist public or private nonprofit organizations interested in providing
sites for housing; to acquire and develop land in rural areas to
be subdivided as adequate building sites and sold on a cost development
basis to families eligible for low and very low income loans, cooperatives,
and broadly based nonprofit rural rental housing applicants.
TYPES
OF ASSISTANCE:
Direct Loans. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
For
the purchase and development of adequate sites, including necessary
equipment which becomes a permanent part of the development; for
water and sewer facilities if not avail- able; payment of necessary
engineering, legal fees, and closing costs; for needed landscaping
and other necessary facilities related to buildings such as walks,
parking areas, and driveways. Restrictions: loan limitation of $200,000
without national office approval; loan funds may not be used for
refinancing of debts, payment of any fee, or com- mission to any
broker, negotiator, or other person for the referral of a prospective
applicant or solicitation of a loan; no loan funds will be used
to pay operating costs or expenses of administration other than
actual cash cost of incidental administrative expenses if funds
to pay those expenses are not otherwise available. Repayment of
loan is expected within two years.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: A private or public nonprofit organization
that will provide the developed sites to qualified borrowers on
a cost of development basis in open country and towns of 10,000
population or less and places up to 25,000 population under certain
conditions. Applicants from towns of 10,000 to 25,000 population
should check with local RD office to determine if agency can serve
them. Assistance is available to eligible applicants in States,
Puerto Rico, the Virgin Islands, Guam, and the Northern Marianas.
Beneficiary
Eligibility: Sites developed with Section
524 loans must be for housing low and very low income families
and may be sold to families, nonprofit organizations, public agencies
and cooperatives eligible for assistance under any Section of
Title V of the Housing Act of 1949, or under any other law which
provides financial assistance. Sites developed with Section 523
loans must be for housing to be built by the self-help method.
Credentials/Documentation:
Applicants must furnish evidence of the following: (1) Market
analysis showing need for such services; (2) legal capacity to
borrow funds and develop land for sale; (3) a sound budget; and
(4) general project description. This program is excluded from
coverage under OMB Circular No. A-87.
Pre-application
Coordination: Environmental impact assessment
and environmental impact statements are required for this program.
This program is eligible for coverage under E.O. 12372, "Intergovernmental
Review of Federal Programs." An applicant should consult the office
or official designated as the single point of contact in his or
her State for more information on the process the State requires
to be followed in applying for assistance, if the State has selected
the program for review. This program is excluded from coverage under
OMB Circular No. A-102.
Application
Procedure: The application will be in the
form of a letter to the Rural Development Manager of the Rural
Development (RD). Supporting information and costs should be included
as needed. This program is excluded from coverage under Departmental
Regulations 3015 and 3016, and OMB Circular No. A-110.
Award
Procedure: After application has been reviewed
by the District office, it is given final approval by the State
Director. If the request exceeds $200,000, the National office
must authorize approval. Following approval, the funds are obligated
in the finance office.
Deadlines:
None.
Range
of Approval/Disapproval Time: From 180 to
365 days.
Appeals:
A uniform procedure whereby an organization which is directly
or adversely affected by an administrative decision by RHS is
found in 7 CFR 3550.4. Applicants may request reconsideration
on the basis of pertinent facts concerning his application.
Renewals:
Applicants may reapply at any time provided there is evidence
of need for the proposed building sites in the locality.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: Not applicable.
Length
and Time Phasing of Assistance: Not applicable.
POST
ASSISTANCE REQUIREMENTS:
Reports:
RD District office monitors the loan and reports to the State Director
should the borrower default in its loan obligations.
Audits:
Not applicable.
Records:
Adequate operating records must be maintained by borrower.
In fiscal year 2001, two loans were made in the 523 program, and
three loans were made in the 524 program.
REGULATIONS,
GUIDELINES, AND LITERATURE:
RD Instruction 444.8, "Rural Housing Site Loan Policies, Procedures,
and Authorizations"; 7 CFR 1822.261-1822.278; PA-1131.
INFORMATION
CONTACTS:
Regional
or Local Office: Consult your local telephone
directory for RD District Office number. If no listing, get in touch
with appropriate RD State office listed in Appendix IV of the Catalog
or on the internet at http://www.rurdev.usda.gov/recd_map.html.
Headquarters
Office: Director, Single-Family Housing Processing
Division, Rural Housing Service, Department of Agriculture, Washington,
DC 20250. Telephone: (202) 720-1474. Use the same number for FTS.
Web
Site Address: http://www.rurdev.usda.gov
EXAMPLES
OF FUNDED PROJECTS:
Caver County Housing and Redevelopment Agency, Chanhassen, Minnesota.
