Rd instruction 1944-i table of Contents




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(Revision 1)


§1944.410(b) (Con.) RD Instruction 1944-I

(2) The State Director may, if needed, submit the organizational documents with any comments or questions to the Office of General Counsel (OGC) for a preliminary opinion as to whether the applicant is or will be a legal organization of the type required by these regulations and for advice on any other aspects of the preapplication.


(3) The State Director, if unable to determine eligibility or qualifications with the advice of the OGC, may submit the preapplication to the National Office for review. The preapplication will contain all memoranda from OGC giving the results of its review. The State Director will identify in the transmittal memorandum to the National Office the specific problem and will recommend possible solutions and any information about the applicant which would be helpful to the National Office in reaching a decision.
(4) After an eligibility determination has been made, which should be completed within 30 days unless OGC is involved, the State Director will:
(i)If the applicant is eligible, contact the National Office as to the availability of funds or submit the proposal to the National Office for authorization if the requested amount exceeds the State Director's approval authority. If funds are available, the final review officer, either the State Director or the Assistant Administrator, Housing will issue a letter of conditions that the applicant must meet and direct the District Director to issue Form AD-622, "Notice of Preapplication Review Action."
(ii) If the applicant is determined not eligible, the State Director will direct the District Director to issue Form AD-622.
(c) Form AD-622, "Notice of Preapplication Review Action."
(1) If the applicant is eligible and after the State Director has returned the pre-application information and, as appropriate, the environmental review documentation required in 7 CFR part 1970 to the Area Office, the Area Director will, within 10 days, prepare and issue Form AD-622. The original Form AD-622 will be signed and delivered to the applicant along with the letter of conditions, a copy to the applicant's case file, a copy to the County Supervisor, and a copy to the State Director. (Revised 04-01-16, SPECIAL PN.)


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(Revision 1)


(11-15-90) SPECIAL PN

RD Instruction 1944-I

§1944.410(c)(1) (Con.)

(2) If the applicant is not eligible and after the State Director has returned the preapplication information, the District Director will within 5 days notify the applicant on Form AD-622. The notification will inform the applicant that an appeal of the decision may be made to the National Appeals Staff under Subpart B of Part 1900 of this chapter.


(3) If the applicant is eligible and no grant or loan funds are available, the State Director will return the preapplication information to the District Director who will, within 10 days, notify the applicant on Form AD-622. The notification will explain the facts concerning the lack of funding and that Rural Development will notify them when funding will be available. This is not an appealable decision.
(d) Self-help technical assistance grant predevelopment agreement. If the grantee requested predevelopment assistance and the State Director determines that the applicant lacks the financial resources to meet the conditions of grant approval, a grant of up to $10,000 and for up to six months will be made in order for the applicant to provide what is required by paragraph (e) of this section. Exhibit D of this subpart will be used for this purpose. Existing grantees proposing to operate in an area different from the area that they are currently funded to operate are eligible for this grant. However, this grant is available only once for a defined area. This grant is available only after the letter of conditions has been issued. Denial of this assistance is an appealable decision under Subpart B of Part 1900 of this chapter.
(e) Form SF-424, "Application for Federal Assistance." The applicant will submit Form SF-424 in an original and one copy to the District Director. The application should provide a detailed proposal of its goals including:
(1) Names, addresses, number in household, and total annual household income of families who have been contacted by the applicant and are interested in participating in a self-help housing project. Community organizations including minority organizations may be used as a source of names of people interested in self-help housing.
(2) Proof that the first group of prospective participating
self-help families have qualified for financial assistance.

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(Revision 1)


RD Instruction 1944-I

§1944.410(e) (Con.)

(3) Evidence that lots are optioned by the prospective participating self-help families for the first group. Evidence that lots are available for the remaining groups.
(4) Detailed cost estimates of houses to be built by the mutual self-help method. Plans and specifications should be submitted with the cost estimates.
(5) Proposed staffing need, including qualifications, experience, proposed hiring schedule, and availability of any prospective employees.
(6) Name, address, and official position of the applicant's representative or representatives authorized to act for the applicant and work with Rural Development.
(7) Budget information including a detailed budget for the Agreement period based upon the needs outlined in the proposal.
SF 424A will be completed to furnish the budget information.
(8) Indirect or direct cost policy and proposed indirect cost rate developed in accordance with 7 CFR Part 3015 and Part 3016.
(9) Personnel procedures and practices that will be established or are in existence. Forms to be used should be submitted with the application.
(10) A proposed monthly activities schedule showing the proposed dates for starting and completing the recruitment, loan processing and construction phases for each group of participant families.
§1944.411 Conditions for approving a grant.
A grant may be approved for an eligible applicant when the conditions in the letter of conditions are met and the following conditions are present:
(a) The applicant has or can hire, or contract directly or indirectly with, qualified people to carry out its responsibilities in administering the grant.


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