To
construct, enlarge, extend, or otherwise improve community facilities
providing essential services to rural residents.
TYPES
OF ASSISTANCE:
Project Grants. Place Cursor
Here for Definition
Direct Loans. Place Cursor Here for Definition
Guaranteed/Insured Loans. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
Community
facilities include but are not limited to those providing or supporting
overall community development such as child care facilities, food
recovery and distribution centers; assisted-living facilities; group
homes, mental health clinics, and shelters; and education facilities.
Projects comprise, community, social, cultural, transportation,
industrial park sites, fire and rescue services, access ways, and
utility extensions. All facilities financed in whole or in part
with RHS funds shall be for public use.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: City, county, and State agencies;
political and quasi-political subdivisions of States and associations,
including corporations, Indian tribes on Federal and State reservations
and other federally recognized Indian tribes; and existing private
corporations which: (1) are operated on a not-for-profit basis;
(2) have or will have the legal authority necessary for constructing,
operating, and maintaining the proposed facility or service and
for obtaining, giving security for, and repaying the loan; and (3)
are unable to finance the proposed project from its own resources
or through commercial credit at reasonable rates and terms. Assistance
is authorized for eligible applicants in rural areas of the States,
Puerto Rico, the Virgin Islands, Guam, American Samoa, the commonwealth
of the Northern Mariana Islands, the Marshall Islands, the Republic
of Palaw, and the Federated States of Micronesia.
Beneficiary
Eligibility: Farmers, ranchers, rural residents,
rural businesses, and other users of such public facilities in
eligible applicant areas as set out above.
Credentials/Documentation:
Evidence of legal capacity and financial responsibility of the
applicants and the economic feasibility of the project relative
to the activity for which assistance is requested. This program
is excluded from coverage under OMB Circular No. A-87.
Pre-application
Coordination: The standard application forms
as provided by the Federal agency and required by OMB Circular No.
A-102 must be used for this program. An environmental assessment
is 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 in applying for assistance if
the State has selected the project for review.
Application
Procedure: Preapplication Form SF-424 is filed
at the local Rural Development district office from which assistance
may be obtained. This program is subject to the provisions of
OMB Circular No. A-110.
Award
Procedure: After the preapplication has been
reviewed by the Rural Development Area Office, it is forwarded
to the Rural Development State Office for review and processing
instructions. Following review by the State Office, the applicant
is notified about eligibility, availability of funds, and if an
application should be filed. Upon completion of application processing
requirements and approval by the State Office, funds are made
available to the Rural Development Area Office for delivery.
Deadlines:
None.
Range
of Approval/Disapproval Time: From 30 to 90
days.
Appeals:
If an application is rejected, the reasons for rejection are fully
stated. The applicant may request a review of the decision from
the next higher management level of Rural Development.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: Matching funds are
not required but may be used in connection with the funds provided
from the applicant or other sources. Funds are allocated to States
based upon rural population and number of households below the poverty
level. The statistical factor for eligibility is towns or incorporated
areas under 20,000 population for direct and guaranteed loans and
20,000 population for grants. The source is "Latest Decennial Census."
This program has no statutory formula.
Length
and Time Phasing of Assistance: A time limitation
is not specified for the use of RHS loan or grant funds. Funds
will be awarded when all RHS requirements are met and the project
can be completed on a timely basis. Funds may be advanced on an
as needed basis by RHS to cover expenses for a 30-day period.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Periodic reports are made to RHS. Each borrower will monitor and
report to RHS on actual performance during the construction of each
project financed, or to be financed, in whole or in part with RHS
loan funds.
Audits:
Periodic audits should be made as part of the recipient's system
of financial management and internal control to meet terms and
conditions of loans and other agreements. In accordance with the
provisions of 7 CFR Part 3052, "Audits of States, Local Governments,
and Non-Profit Organizations," which implement OMB Circular No.
A-133 (Revised, June 24, 1997), "Audits of States, Local Governments,
and Non- Profit Organizations," nonfederal entities that receive
financial assistance of $300,000 or more in Federal awards will
have a single or a program-specific audit conducted for that year.
Nonfederal entities that expend less than $300,000 a year in Federal
awards are exempt from Federal audit requirements for that year,
except as noted in 7 CFR 3052.
Records:
The borrower must maintain adequate records and accounts of the
operation of the facility developed.
Obligations:
(Direct Loans) FY 01 $199,428,591; FY 02 est $250,000,000; and
FY 03 est $250,000,000. (Guaranteed Loans) FY 01 $86,788,000;
FY 02 est $210,000,000; and FY 03 est $210,000,000. (Grants) FY
01 $10,060,000; FY 02 est $28,512,000; and FY 03 est $12,971,000.
Range
and Average of Financial Assistance:
(Direct Loans) $5,000 to $4,500,000. Average: $442,192. (Guaranteed
Loans) $50,000 to $12,000,000. Average: $859,283. (Grants) $100
to $100,000. Average: $31,937.
In fiscal year 2001, 451 direct loans, 101 guaranteed loans, and
315 grants were made.
REGULATIONS,
GUIDELINES, AND LITERATURE:
7 CFR 1942, subpart A, Community Facilities Loans; 7 CFR 1942, subpart
C, Fire and Rescue Loans; 7 CFR 3575, subpart A, Community Facilities
Guaranteed Loans; 7 CFR 3570, subpart B, Community Facilities Grants.
INFORMATION
CONTACTS:
Regional
or Local Office: Consult your local telephone
directory for Rural Development county or district office numbers.
If no listing, contact the appropriate Rural Development State Office
listed in Appendix IV of the Catalog.
Headquarters
Office: Deputy Administrator, Community Programs,
Rural Housing Service, Department of Agriculture, Washington,
DC 20250- 3222. Telephone: (202) 720-1490.
Web
Site Address: http:/www.rurdev.usda.gov
EXAMPLES
OF FUNDED PROJECTS:
Loans were made to: (1) establish rural health clinics in medically
undeserved areas; (2) purchase fire fighting equipment for rural
areas; (3) construct new municipal buildings; (4) build new schools
to serve rural counties; and (5) renovate hospitals to meet current
life/safety codes.
CRITERIA
FOR SELECTING PROPOSALS:
Projects are selected for funding giving due consideration to State
development strategies, serving the largest number of low income
rural residents, and priority recommendations. Priority for funding
will be given to those projects that will enhance public safety
such as fire, police, rescue, and ambulance services, and projects
for health care facilities.
