Rd instruction 1942-a table of Contents

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(Revision 3)

(2-6-85) PN 956

§1942.17 (c) (2) (iii) (D) (2) (Con.) RD Instruction 1942-A

(i) Public safety - 10 points. (Examples include police services and fire, rescue and ambulance services as authorized by Subpart C of this Part.) (Revised 11-4-87, PN 68.)
(ii) Health care - 5 points. (Examples include clinics, nursing homes, convalescent facilities, and hospital projects designed to make the facility conform with life/safety codes, Medicare and Medicaid requirements, and minor expansions needed to meet the immediate requirements of the community. Points under this authority should not be awarded to a preapplication if points were awarded under §1942.17 (c)(2)(iii)(B)(2) of this subpart.)
(3) Water and Waste Disposal and Community Facilities preapplications.
(i) Applicant is a public body or Indian tribe - 5 points.

(ii) Project is located in a "truly rural area" as described in §1942.17(c)(l) of this subpart - 10 points.

(iii) Amount of joint financing committed to the project is:
(a) 20% or more private, local or

state funds except federal funds

channeled through a state agency - 10


(b) 5% - 19% private, local or state

funds except federal funds channeled

through a state agency - 5 points.
(E) In certain cases the State Director may assign up to 15 points to a preapplication, in addition to those that may be scored under paragraphs (c)(2)(iii)(A) through (D), of this section. These points are primarily intended to address an unforeseen exigency or emergency, such as the loss of a community facility due to accident or natural disaster or the loss of joint financing if Rural Development funds are not committed in a timely fashion. However, the points may also be awarded to projects in order to improve compatibility/coordination between Rural Development's and other agencies' selection systems and to assist those projects that are the most cost effective. A written justification must be prepared and placed in the project file each time the State Director assigns these points.


(Revision 3)

§1942.17 (c)(2) (Con.) RD Instruction 1942-A
(iv) Results of State Office review. After completing the review, the State Director will normally select the eligible preapplications with the highest scores for further processing. In cases where preliminary cost estimates indicate that an eligible, high scoring preapplication is unfeasible or would require an amount of funding from Rural Development that exceeds either 25 percent of a State's current annual allocation or an amount greater than that remaining in the State's allocation, the State Director may instead select the next lower scoring preapplication(s) for further processing provided the high scoring applicant is notified of this action and given an opportunity to revise the proposal and resubmit it. If it is found that there is no effective way to reduce costs, the State Director, after consultation with applicant, may submit a request for an additional allocation of funds for the proposed project to the National Office. The request should be submitted during the fiscal year in which obligation is anticipated. Such requests will be considered along with all others on hand. A written justification must be prepared and placed in the project file when an eligible preapplication with a higher rating is not selected for further processing. The State Director will notify the District Director of the results of the review action. The State Director will return the pre-application information with an authorization for the District Director to prepare and issue Form AD-622 in accordance with §1942.2 (a)(2)(iv) of this subpart. Priority will be given to those preapplications and applications for funding which meet criteria in §1942.17 (c)(2) (iii)(A)(1) or (2); and the criteria in §1942.17 (c)(2)(iii) (B)(1)(i) or (ii) or (B)(2) of this subpart.
(v) Application development. Applications should be developed expeditiously following good management practices. Applications that are not developed in a reasonable period of time taking into account the size and complexity of the proposed project may be removed from the State's active file. Applicants will be consulted prior to taking such action.
(vi) Project obligations. To ensure efficient use of resources, obligations should occur in a timely fashion throughout the fiscal year. Projects may be obligated as their applications are completed and approved.
(vii) Requests for additional funding. All requests for additional allocations of funds submitted to the National Office must follow the formats found in Parts I and II of Guide 26. In selecting projects for funding at the National Office level, additional points may be scored based on the priority assigned to the project by the State Office.


(Revision 2)

(2-6-85) PN 956

RD Instruction 1942-A

§1942.17 (c)(2)(vii)

These points will be scored in the manner shown below. Only the three highest priority projects can score points. In addition, the Administrator may assign up to 15 additional points to account for items such as geographic distribution of funds and emergency conditions caused by economic problems or natural disasters.
Priority Points

1 5

2 3

3 1
(viii) Cost overruns. A preapplication may receive consideration for funding before others at the State Office level or at the National Office level, if funds are not available in the State Office, when it is a subsequent request for a previously approved project which has encountered cost overruns due to high bids or unexpected construction problems that cannot be reduced by negotiations, redesign, use of bid alternatives, rebidding or other means.

(d) Eligible loan purposes.
(1) Funds may be used:
(i) To construct, enlarge, extend, or otherwise improve water or waste disposal and other essential community facilities providing essential service primarily to rural residents and rural businesses. Rural businesses would include facilities such as educational and other publicly owned facilities. (Revised 05-19-92, SPECIAL PN.)
(A) "Water or waste disposal facilities” include water, sanitary sewerage, solid waste disposal, and storm wastewater facilities.
(B) "Essential community facilities" are those public improvements requisite to the beneficial and orderly development of a community operated on a nonprofit basis including but not limited to: (Revised 11-4-87, PN 68.)
(1) Health services;
(2) Community, social, or cultural services;
(3) Transportation facilities, such as streets, roads, and bridges;

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