Rd instruction 1944-i table of Contents

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Pre-Construction and Construction Phase Breakdown

I. General. This Exhibit will be used by Farmers Home Administration (Rural Development) and the Grantee in determining Grantee performance as required in §1944.417(b) of this subpart.
II. Determining technical assistance (TA) cost per unit.
A. Equivalent units are used to measure progress at any time during the period of the grant. It is necessary because self-help grantees have several groups of families in various stages of progress during the period of the grant. The following formula has been developed to provide a more accurate method of determining progress.



(%) (%)

Phase I 10 10

Phase II 10 10

Phase III 80 21-100
B. Using the Description of Phase Breakdown as a guide, the project staff selects the total percentage pertinent to the stage the self-help group is in and multiplies that percentage by the number of families (units) in the group. The result is the equivalent number of units completed. No credit may be given for Phase I, if the application is rejected. When this computation has been completed for each group that falls within Phases I - III, the total number of equivalent units is divided into the total grant funds expended to that date. The result is the TA cost per unit at that stage of the program's progress.
C. The definition of pre-construction and construction phases described are follows:
Phase I: Hold community meetings; conduct interviews; obtain house plans; prepare cost estimates; begin search for land; submit family applications to the lender; lender runs credit check; applications. Lender either approves or rejects.

(11-15-90) SPECIAL PN

RD Instruction 1944-I

Exhibit B-3

Page 2

Phase II: Organize an association of Section 502 Rural Housing eligible families; association conducts weekly meetings at which required lender forms are discussed and completed; house plans and land sites are selected; outside speakers explain and discuss taxes, insurance, how to keep a checking account how interest is computed, home maintenance, decorating, and landscaping; etc.; completed loan dockets for each family are submitted to the lender. Family loan dockets are reviewed and recommendations made as to the loan amounts requested; the lender reviews family loan dockets; preliminary title search of each proposed building site is begun; requests loan check from Finance Office; when check arrives, final title search is made, loan closed, checking accounts opened, and construction begun.
Construction: The grantee will utilize Exhibit B-2 which outlines 27 construction tasks to determine the percentage of completed construction activities.
D. The computation of equivalent units and TA costs will be computed as follows:
Exhibit C will be used for recording the following information and construction in this example which starts January 1.

Step 1

Both the grantee and Rural Development review the Rural Development loan application records to determine the percentage of completion for each family in the pre-construction phase of the program. These are Phases I - III. Total these percentages to find the number of "equivalent units" (EUs) completed at that date during pre-construction. For example, if there are eight families in Group #2 and all have completed the 20 percent phase of preconstruction, then there would be 1.6 EUs in the pre-construction phase of the program as of that date. Each phase must be completed before it is considered in the calculation.

Step 2

Refer to the records of construction progress for families in the construction Phase III. As of that date, the director totals the percentage of completion figures for each family as followings:
Askew: .45

Whited: .40

Martinez: .40

Gonzalez: .38

RD Instruction 1944-I

Exhibit B-3

Page 3

Sherry: .34

Duran: .33

Johnson: .13

Harvey: .31
2.92 EUs
Total production in the construction phase is therefore 2.92 EUs as of that date.

Step 3

Add the pre-construction and construction subtotals together:
Pre-construction 1.60

Construction 2.92

Total EUs 4.52
This provides the total EUs of production during the first three months of operation. Steps 1, 2, and 3 will be used to complete items 7, 8 and 9 of Exhibit B of this subpart.
III. Preparation:
Compile Exhibit B of this subpart in an original and four copies. The exhibit will be signed by the TA Grantee. Submit the original and three copies of the exhibit quarterly to Rural Development County Office on or before January 15, April 15, July 15, and October 15, of each year for the quarters ending March 31, June 30, September 30, and December 31 of each year. The District Director will keep the original and forward two copies to the State Office. The State Office will forward one copy to the National Office. The State Office will prepare information concerning TA grants closed within 30 days of the end of a quarter on the next quarterly report.

(11-15-90) SPECIAL PN

RD Instruction 1944-I

Exhibit C



Self-Help Technical Assistance Grant Agreement

This Agreement dated,__________________19_______between__________________


a nonprofit corporation ("Grantee"), organized and operating under ____________________________________ and the United States of America

(authorizing State Statute)

acting through the Rural Development, Department of Agriculture ("Rural Development"), amends the "Self-Help Technical Assistance Grant Agreement" between the parties dated _________________ 19_________, ("Agreement").

The Agreement is amended by providing additional financial assistance in the amount of ________________to be made available by Rural Development to Grantee pursuant to Section 523 of Title V of the Housing Act of 1949 for the purpose of assisting in providing a program of technical and supervisory assistance which will aid low-income families in carrying out mutual self-help housing efforts; or
The Agreement is amended by changing the completion date specified in convenant 1 from _____________to ___________ and by making the following attachments to this amendment: (List and identify proposal and any other documents pertinent to the grant.)

Agreed to this____________day of ___________19________.


(Name of Grantee)










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