To assist very-low income owner- occupants to repair or
replace damaged property as a direct result of a natural disaster. Loans are
made in counties named by the Federal Management Agency as being eligible for
Federal assistance under an emergency declaration by the President.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility:
Applicants must own and occupy the home in a rural area. Loan recipients must
have sufficient income to repay the loan. Grant recipients must be 62 years of
age or older and be unable to repay a loan for that part of the assistance
received as a grant. The applicant's income for a loan may not exceed the very
low-income limit which can be obtained in any Rural Development (RD) field
office.
Beneficiary Eligibility:
Applicants/borrowers are the direct beneficiaries when they meet all
eligibility criteria.
Credentials/Documentation:
Natural disasters will only include those areas identified by a Presidential
declaration. Funds are only available to the extent that funds are not
provided by the Federal Emergency Management Agency (FEMA). Applicants must
establish that physical damage was caused by natural disaster. For Section 504
loans/grants, there must be evidence of ownership and verification of income
and debts. For grant recipients, evidence of age is required. The applicant
must be unable to get credit elsewhere and demonstrate repayment for the loan.
APPLICATION AND AWARD PROCESS:
Pre-application Coordination:
This program is excluded from coverage under OMB Circular No. A-102 and E.O.
12372.
Application Procedure:
Applicants must file Form RD 410-4 at the Rural Development field office
serving the county where the dwelling is located. This program is excluded
from coverage under OMB Circular No. A-110.
Award Procedure: Final
approval of the application is given by the Community Development Manager.
Deadlines: Applicants must
file applications from the date of declaration/designation and until
supplemental appropriated funds are exhausted.
Range of Approval/Disapproval Time:
From 30 to 60 days subject to the availability of funds, from the time the
application is filed if no backlog of applications exist.
Appeals: Applicants may
request reconsideration at the local RD field office and may appeal adverse
actions in accordance with 7 CFR Part 11. Appeals may be filed within 30 days
after notification of the adverse decision is received by the loan/grant
applicants.
Renewals: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements:
This program has no matching requirement or statutory formula.
Length and Time Phasing of Assistance:
These funds are available only if the Supplemental Emergency Funding for
Natural Disaster has been appropriated.
POST ASSISTANCE REQUIREMENTS:
Reports: None.
Audits: None.
Records: Borrowers are not
required to, but should retain copies of loan/grant related documents.
FINANCIAL INFORMATION:
Account Identification:
(Loans) 12-2081-0-1-371; 12-4215-0-3-371. (Grants) 12-1953-0-1-999.
Obligations: (Loans) FY 01
$1,056,000; FY 02 est $0 (carry over funds from prior years; and FY 03 est $0.
(Grants) FY 01 $4,143,000 (based on previous fiscal year's funding); FY 02 est
$0 (based on previous fiscal year's funding); and FY 03 est $0. Note: Funds
under this program are based on supplemental funding provided by Congress in
response to a natural disaster.
Range and Average of Financial Assistance:
(Loans) $4,860,000; (Grants) $5,093,000.
PROGRAM ACCOMPLISHMENTS:
In fiscal year 2001, the number of existing houses
improved through Section 504 Loans and Grants was 990.
REGULATIONS, GUIDELINES, AND LITERATURE:
7 CFR 3550.
INFORMATION CONTACTS:
Regional or Local Office:
Consult your local telephone directory under United States Department of
Agriculture for Rural Development field office number. If no listing, contact
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 Processing Division, Rural Housing Service (RHS),
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:
Not applicable.
CRITERIA FOR SELECTING PROPOSALS:
Not applicable.
