Rd instruction 1940-l table of Contents




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Exhibit C: Attachments 1, 2, and 3 in PDF EXHIBIT ONLY.

RD Instruction 1940-L

Exhibit C, Attachment 4


SUBJECT: Request for Rural Housing Targeting

Set Aside (RHTSA) Funds

TO: Ronnie O. Tharrington

Assistant Administrator

Housing


ATTN: Single Family Housing Processing Division

We hereby request RHTSA funds as follows:


State Name: ________________

Program Amount of RHTSA Requested


Section 502 Very Low-Income Funds $ _____________________
Section 502 Low-Income Funds $ _____________________
Section 504 Loan Funds $ _____________________
Section 504 Grant Funds $ _____________________
Section 524 Loan Funds $ _____________________

State Director


(General Instructions - Individual listing of counties or applicants not required. Requests should be grouped and submitted on a periodic basis.)

(02-20-91) SPECIAL PN

RD Instruction 1940-L

Exhibit C, Attachment 5


SUBJECT: Request for Rural Housing Targeting Set Aside (RHTSA)

Funds and Rental Assistance (RA)

TO: Ronnie O. Tharrington

Assistant Administrator

Housing


ATTN: Multi-Family Housing Processing Division

We hereby request funds and RA from the RHTSA as follows:


State Name: ___________ County Name: _________ Colonia: __________________
State Code: __________ County Code: ________ District Code: ___________

Name of Applicant: __________________________________________________


Project Name: _______________________________________________________
Project Physical Location: __________________________________________
Type of Project: _________________ No. of rental units: _____________
Priority Processing Point Score: _______________ points
Total Loan Request: $__________________ RA units ___________________
RHTSA Request: $________________________ RHTSA RA Request ___________
Projected Obligation Date: _____________________
Other comments/information:
State Director
[General Instructions - Complete a separate Attachment 5 for each RHTSA request.]

(02-20-91) SPECIAL PN

RD Instruction 1940-L

Exhibit D

Page 1


RURAL RENTAL HOUSING DIVERSITY DEMONSTRATION PROGRAM (RRHDDP)

I. Objectives.


A. To encourage applicants of limited gross incomes which have little or no participation in the Section 515 program.
B. To provide housing in unserved areas.
C. To provide an economic stimulus to the local economy by encouraging procurement of labor, goods, and services from the local community.
II. Background. In accordance with Section 506 (b) of the Housing Act of 1949, as amended, the Secretary is authorized and directed to conduct research, technical studies, and demonstrations relating to the mission and programs of Rural Development and the national housing goals defined in section 2 of this Act. In connection with such activities, the Secretary shall seek to promote the construction of adequate farm and other rural housing. The Secretary shall conduct such activities for the purposes of stimulating construction and improving the architectural design and utility of dwellings and buildings. In furtherance of this goal, the Rural Rental Housing Diversity Demonstration Program (RRHDDP) is implemented. An appropriate amount of Section 521 new construction rental assistance (RA) is set aside for use with Section 515 loan funds.
III. RRHDDP.
A. Amount of Set Aside. Set asides for RRHDDP from the current fiscal year (FY) allocations are established in Attachment 1 of this exhibit.
B. Selection of States. All States were considered using the following criteria:
1. Highest percentage of poverty;
2. Highest percentage of substandard housing;
3. Highest unemployment rates;
4. Lowest rural median income; and
5. Number of places with population of 2,500 or fewer.

(02-24-05) SPECIAL PN

RD Instruction 1940-L

Exhibit D

Page 2

Each State selected for RRHDDP had to be in the top 10 of at least 3 of the 5 criteria. Data from the 1990 census was used for all criteria. The States selected are listed in Attachment 1 of this exhibit.


C. State RRHDDP Levels. See Attachment 1 of this exhibit.
D. Use of Funds. To ensure the success of RRHDDP, the State Director may leverage funds from the RRHDDP with allocated funds from the Section 515 and 521 allocations held in the State Office reserve. The State Director has the discretion to determine the most effective delivery of RRHDDP funds; however, the intent and scope of the program should be ever present in the implementation and application processes.
E. National Office RRHDDP Reserve. There is no RRHDDP reserve available when the State is unable to fund a request from its regular or RRHDDP allocation.
F. Pooling. Unused RRHDDP funds and RA will be pooled. Pooling dates and any pertinent information thereof are available on Attachment 1 of this exhibit. Pooled funds will be available on a first-come-first-served basis to all eligible States listed on Attachment 1 of this exhibit. Pooled RRHDDP funds will remain available until the year-end pooling date.
IV. Eligibility. Applicants and proposals will need to meet the following requirements, in addition to those found in 7 CFR part 3560, Subpart B:
A. The applicant must have had an interest (including family members) in no more than one Section 515 loan over the past 3 years. For entity applicants, this restriction applies to all general partners and their family members. For the purposes of this program, interest means a Section 515 loan which has been approved and funds obligated.
B. The applicant must have had a gross aggregate income from business and personal operations of less than $500,000 in the previous calendar year. For entity applicants, the aggregate income of all general partners will be considered. American Indian tribes and tribal housing authorities are exempt from these income requirements.
C. At least 51 percent of the labor, goods, and services to develop the proposed housing must come from the market area as described in paragraph V B of this exhibit.

RD Instruction 1940-L

Exhibit D

Page 3

D. The housing must be constructed in a market area without similar subsidized housing. Market area is defined in 7 CFR part 3560,
Subpart A.
E. The proposed complex must contain no more than 50 percent of the average number of units of the average size Section 515 complex in the State based on the previous FY average.
V. Processing Preapplications.
A. Requirements. To be eligible for participation in this demonstration program, applicants must ensure that the preapplication meets all requirements set forth in 7 CFR part 3560 and this exhibit.
1. All complete preapplications must be received in the place designated by the State Director by the date listed in Attachment 1 of this exhibit. Incomplete preapplications will not be considered. A complete preapplication consists of all items specified in THC Notice of Funding Availability that will be published in the Federal Register each Fiscal Year.
2. Based upon projected demand for the RRHDDP, the State Director will select the manner in which preapplications will be rated prior to implementation and/or announcement of the program to ensure the public is aware of how requests will be prioritized. The State Director may elect one of the following systems to prioritize and select proposals for further processing:
a. The priority point system contained in 7 CFR 3560.56 or
b. The following priority point scoring system;
(i)Interest in Section 515 loans over the past 3 FYs as specified in paragraph IV A of this exhibit.
No Interest - 5 points

Interest in 1 project - 2 points


(ii) Gross incomes as defined in paragraph IV B of this exhibit.
Income: $400,001-499,999 - 1 point

$300,000-400,000 - 2 points

$299,999 or less - 3 points

American Indian Tribes/Tribal

Housing Authorities - 3 points
(02-24-05) SPECIAL PN

RD Instruction 1940-L

Exhibit D

Page 4

(iii) Percent of the labor, goods, and services must come from the local market described in paragraph V B of this exhibit.
100% from local market - 5 points

90-99% from local market - 4 points

80-89% from local market - 3 points

70-79% from local market - 2 points

51-69% from local market - 1 point
(iv) Size of proposed complex compared to average size complex obligated in previous FY.
40-50% average size - 3 points

30-39% average size - 4 points

less than 30% - 5 points
c. A combination of the points received in paragraphs V A 2 a and b of this exhibit.
3. In the event of a tie, the proposal with the earliest date of complete preapplication will take preference.
B. Procurement of labor, goods, and services. One of the intents of the RRHDDP is to stimulate the local economy by encouraging procurement of labor, goods, and services from the local area. Rural Development recognizes that defining a local trade area in which to procure the labor, goods, and services to build an apartment complex is difficult in rural America. To be responsive to the application procedures, applicants must procure labor, goods, and services from Level One of this paragraph. If labor, goods, and services are not available in Level One of this paragraph, the applicant may use the trade area defined in Level Two of this paragraph. Documentation as to why the labor, goods, and services are not available in Level One of this paragraph must be included in the case file. The applicant may propose to secure labor, goods, and services from Level Three or Four of this paragraph; however, documentation as to why same is not available in all of the previous levels must be included in the case file.
1. Level One: Labor, goods, and services must be procured within 15 miles of the proposed site of the apartments.
2. Level Two: Labor, goods, and services must be procured within the county where the proposed apartments will be located.

RD Instruction 1940-L

Exhibit D

Page 5

3. Level Three: Labor, goods, and services must be procured within the lesser of 50 miles from the site of the proposed complex OR the boundaries of any adjacent county (regardless of State boundary).
4. Level Four: Labor, goods, and services must be procured within 100 miles of the proposed site (regardless of State boundary).
C. Outreach. Outreach efforts publicizing the availability of loan funds for the eligible RRHDDP States will be aggressively carried out. Each affected State Director will develop an outreach plan which includes such techniques as news releases, community meetings, coordination with other Federal, State, and local government organizations, to promote full utilization of these funds by all qualified applicants regardless of race, color, religion, national origin, marital status, age, and sex. In addition to the above outreach efforts, States with eligible colonias and/or tribal lands should establish liaison with community groups in order to leverage support and assistance provided to residents of colonias and tribal lands.

D. Monitoring Performance.


1. National Office: The National Office will track the use of targeted funds on a regular basis throughout the FY and take necessary follow-up actions to facilitate the delivery of the program.
2. State Office: The State Director will designate a staff member to coordinate all efforts under RRHDDP.
E. Issuance of Form AD-622, "Notice of Preapplication Review Action," inviting a formal application.
1. The State Director may issue AD-622s up to 100 percent of the amount shown in Attachment 1 of this exhibit and any funds made available from the State Office reserve.
2. All AD-622s issued for applicants under this demonstration program will be annotated, in Item 7 of the form, under "Other Remarks," with the following:
"Issuance of this AD-622 is contingent upon receiving funds from the Rural Rental Housing Diversity Demonstration Program (RRHDDP). Should RRHDDP funds be unavailable or the program discontinued,

(02-24-05) SPECIAL PN

RD Instruction 1940-L

Exhibit D

Page 6

this AD-622 will no longer be valid. In these cases, the request for assistance will need to compete with other preapplications based upon its priority point score established in accordance with 7 CFR 3560.56.


VI. Exception Authority. The Administrator, or his/her designee, may, in individual cases, make an exception to any requirements of this exhibit which are not inconsistent with the authorizing statute, if he/she finds that application of such requirement would adversely affect the interest of the Government. The Administrator, or his/her designee, may exercise this authority upon the request of the State Director, Assistant Administrator for Housing, or Director of the Multi-Family Housing Processing Division (MFHPD). The request must be supported by information that demonstrates the adverse impact or affect on the program. The Administrator, or his/her designee, also reserves the right to change the pooling date, establish/change minimum and maximum fund usage from set asides and/or the reserve, or restrict participation in set asides and/or reserves.

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