Title 7--AGRICULTURE
Chapter XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE


housing loan programs operated by the Rural Housing Service (RHS) of the U.S. Department of Agriculture (USDA). It addresses the requirements of sections 502 and 504 of...


to provide low- and very low-income people who will live in rural areas with an opportunity to own adequate but modest, decent, safe, and sanitary dwellings and...


both the letter and the spirit of all equal opportunity and fair housing legislation and applicable executive orders. Loans, grants, services, and benefits provided under...


participant, RHS will provide the participant with written notice of such adverse decision and the participant's rights to a USDA National Appeals Division hearing in...


as equal with economic, social, and other relevant factors in program development and decision-making processes. RHS will take into account potential environmental...


the laws of federally recognized Indian tribes, may affect RHS implementation of certain provisions of this regulation, for example, with respect to the treatment of...


programs. The purpose of these demonstration programs is to test new approaches to offering housing under the statutory authority granted to the Secretary....


designee may make, an exception to any requirement or provision of this part or address any omission of this part that is consistent with the applicable statute if...


highest standards of honesty, integrity, and impartiality by employees. To reduce the potential for employee conflict of interest, all processing, approval, servicing,...


balance of a debt if the security instruments are breached. Adjusted income. Used to determine whether an applicant is income- eligible. Adjusted income provides...


this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0172. Public reporting burden for this...


as amended authorizes the Rural Housing Service (RHS) to provide financing to help low- and very low-income persons who cannot obtain credit from other sources obtain...


improve, or relocate an eligible dwelling and provide related facilities for use by the borrower as a permanent residence. In limited circumstances section 502...


of loan approval, the household's adjusted income must not exceed the applicable low-income limit for the area, and at closing, must not exceed the applicable...


income is the annual amount of income from all sources that are expected to be received by those household members who are parties to the promissory note, except for...


RHS loans must file a complete written application in a format specified by RHS. Applications will be accepted even when funds are not available. (b)...


rural areas designated by RHS. If an area designation is changed to non-rural: (1) New conditional commitments will be made and existing conditional commitments will...


one that is considered modest for the area, must not be designed for income producing purposes, must not have an in-ground swimming pool or have a market value in excess of...


have an acceptable interest in the property as evidenced by one of the following. (a) Fee-simple ownership. Acceptable fee-simple ownership is evidenced by a...


requirements to secure its interests. (a) Adequate security. A loan will be considered adequately secured only when all of the following requirements are met: (1)...


escrow account amounts necessary to ensure that the account will contain sufficient funds to pay real estate taxes, hazard and flood insurance premiums, and other related...


paid in full the customer must furnish and continually maintain hazard and flood insurance on property securing RHS loans, with companies, in amounts, and on terms and...


debt to be secured exceeds $15,000 or whenever RHS determines that it is necessary to establish the adequacy of the security. Appraisals must be made in accordance with the...


the area loan limit or market value limitations specified in paragraphs (a) or (b) of this section, whichever is lower. Any loan amount for the RHS appraisal, tax...


excess of $10,000 towards a down payment on the property. Non-elderly families must use net family assets in excess of $7,500 towards a down payment on the property....


rate in effect at loan approval or loan closing, whichever is lower. Information about current interest rates is available in any Rural Development office. [67...


period that does not exceed the expected useful life of the property as a dwelling. The loan repayment period will not exceed: (a) Thirty-three years in all cases except...


payment assistance and interest credit. Payment subsidies are subject to recapture when the borrower transfers title or ceases to occupy the property. (a)...


defer up to 25 percent of the monthly principal and interest payment at 1 percent for up to 15 years. This assistance may be granted only at initial loan closing and is...


by RHS that a dwelling offered for sale will be acceptable for purchase by a qualified RHS loan applicant if it is built or rehabilitated in accordance with...


for condominium units under the following conditions: (a) The unit is in a project approved or accepted by U.S. Department of Housing and Urban Development (HUD), the...


a community land trust may be financed if: (a) The loan meets all the requirements of this subpart; and (b) Any restrictions, imposed by the community land trust on...


additional requirements contained in this section, section 502 loans on manufactured homes are subject to the same conditions as all other section 502 loans. (a)...


do not qualify for program credit, or for properties that do not qualify as program properties, when it is in the best interest of the Government. NP loans are originated...


in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0172. Public reporting burden for...


This subpart sets forth policies for administering loans and grants under section 504(a) of title V of the Housing Act of 1949, as amended. Section...


and loan purposes. (a) Grant funds. Grant funds may be used only to pay costs for repairs and improvements that will remove identified health and safety hazards or...


requirements. To be eligible, applicants must meet the following requirements: (a) Owner-occupant. Applicants must own, as described in Sec. 3550.107, and...


(a) Application submissions. All persons applying for section 504 loans or grants must file a complete written application in a format specified by...


(a) Rural areas. Loans may be made only in rural areas designated by RHS. If an area designation is changed to nonrural an existing RHS borrower may receive...


(a) Modest dwelling. The property must be one that is considered modest for the area, must not be designed for income producing purposes, have an...


requirements. The applicant must have an acceptable ownership interest in the property as evidenced by one of the following: (a) Full fee ownership....


(loans only). When the total section 504 indebtedness is $7,500 or more, the property will be secured by a mortgage on the property, leasehold interest,...


(loans only). RHS may require that borrowers deposit into an escrow account amounts necessary to ensure that the account will contain sufficient funds to pay...


(loans only). (a) Borrower responsibility. Until the loan is paid in full, any borrower with a secured indebtedness in excess of $15,000 must furnish and...


only). An appraisal is required when the section 504 debt to be secured exceeds $15,000 or whenever RHS determines that it is necessary to establish the...


and grant. (a) Maximum loan permitted. The sum of all outstanding section 504 loans to 1 borrower or on 1 dwelling may not exceed $20,000. (1) Transferees who...


terms (loans only). (a) Interest rate. The interest rate for all section 504 loans will be 1 percent. (b) Loan term. The repayment period for the loan should...


(grants only). Grant recipients are required to sign a repayment agreement which specifies that the full amount of the grant must be repaid if the property...


program objectives. The objective of the WWD individual grant program is to facilitate the use of community water and waste disposal systems by the residents of...


applicable to WWD grants only. (a) Colonia. Any identifiable community designated in writing by the State [[Page 449]] or county in which it...


purposes. Grant funds may be used to pay the reasonable costs for individuals to: (a) Extend service lines from the system to their residence. (b)...


(a) Maximum grant. Lifetime assistance to any individual for initial or subsequent Section 306C WWD grants may not exceed a cumulative total of $5,000. ...


requirements. In addition to the eligibility requirements of Sec. 3550.103, WWD applicants must meet the following requirements: (a) An applicant need not be...


control number. The information collection requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3550.151] [Page 450] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3550_DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS--Table of Contents Subpart D_Regular Servicing Sec. 3550.151 Servicing goals. This subpart sets forth the Rural Housing Service (RHS) policies for managing the repayment of loans made under sections 502 and 504 of the Housing Act of 1949, as amended. ...


other loan repayment terms, borrowers are required to make monthly payments. Borrowers with existing loans specifying annual payments may request conversion to...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3550.153] [Page 450] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3550_DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS--Table of Contents Subpart D_Regular Servicing Sec. 3550.153 Fees. RHS may assess reasonable fees including a tax service fee, fees for late payments, and fees for checks returned for insufficient funds. ...


inspections of any property used as security for an RHS loan as necessary to protect the interest of the Government. RHS will give the borrower notice at the time of or prior...


RESPA and section 501(e) of the Housing Act of 1949, as amended. (a) Upon creation of the escrow account, RHS may require borrowers to deposit funds sufficient to...


are expected to meet a variety of obligations outlined in the loan documents. In addition to making timely payments, these obligations include: (1) Maintaining...


RHS will review annually each borrower's eligibility for continued payment subsidy and determine the appropriate level of assistance. To be eligible for payment...


the interest rate charged a borrower who enters full-time active military duty after a loan is closed not exceed six percent. Active military duty does not...


who wish to lease mineral rights to a security property must request authorization from RHS. RHS may consent to the lease of mineral rights and subordinate its liens to...


are not intended to supplant or compete with private credit sources. Therefore, borrowers are required to refinance RHS loans with private credit sources when...


includes repayment of principal and outstanding interest, unauthorized assistance, recapture [[Page 454]] amounts, and charges made to the...


assumed on or after October 1, 1979, will be required to repay subsidy amounts received through payment subsidy or deferred mortgage assistance. Amounts to be recaptured are...


policy. RHS mortgages contain due-on-sale clauses that generally require RHS consent before title to a security property can be transferred with an assumption of the...


any loan, payment subsidy, deferred mortgage payment, or grant for which the recipient was not eligible. (b) Unauthorized assistance due to false information....


in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0172. Public reporting burden for...


(RHS) may approve special servicing actions to reduce the number of borrower failures that result in liquidation. Borrowers who have difficulty keeping their accounts...


not received by the due date, or as authorized by State law. (a) Late fee. A late fee will be assessed if the full scheduled payment is not received by the 15th day...


in this subpart result in reamortization of the account RHS may: (a) Require a borrower who currently makes annual payments, but receives a monthly income, to...


assistance in accordance with subpart B of this part. Borrowers who are not eligible for payment assistance because the loan was approved [[Page...


be offered the opportunity to avoid liquidation by entering into a delinquency workout agreement that specifies a plan for bringing the account current. To receive...


cost against the borrower's account to protect the Governments interest. (a) Advances for taxes and insurance. RHS may advance funds to pay real estate taxes, hazard...


for up to 2 years. NP borrowers are not eligible for a payment moratorium. (a) Borrower eligibility. For a borrower to be eligible for a moratorium, all of the...


the promissory note interest rate may be authorized when RHS determines that reamortization is required to enable the borrower to meet scheduled obligations, and only if...


to an RHS borrower may be subject to administrative, salary, or Internal Revenue Service (IRS) offsets for the collection of a debt owed to RHS. (a) IRS offset. RHS...


unable or unwilling to [[Page 460]] meet loan obligations, RHS may accelerate the loan and, if necessary, acquire the security property. The borrower...


in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0172. Public reporting burden for...


Housing Service (RHS) will manage custodial property and Real Estate Owned (REO) property to protect the Government's interest, and may dispose of REO property through...


may be initiated to collect any amounts due to RHS including: (1) Balances remaining on loan accounts after all liquidation proceeds or credits have been...


adjustment offers may be initiated by the debtor or by RHS. RHS will approve only those compromises and adjustments that are in the best interest of the Government. ...


in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0172. Public reporting burden for...


is to increase the supply of affordable rural rental housing, through the use of loan guarantees that encourage partnerships between the Rural Housing Service,...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.2] [Page 464] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart A_General Provisions Sec. 3565.2 Applicability and authority. The regulation prescribes the policies, authorizations, and procedures for the guarantee of multifamily loans under section 538 of the Housing Act of 1949. ...


or his or her designee. Agency. The Rural Housing Service, or a successor agency. Allowable claim amount. The total losses incurred by the lender, as...


loans, or provide interest credits is limited to the extent that appropriations are available to cover the cost of the assistance. The Agency will publish a NOFA...


loan guarantee submitted by lenders must include a loan request for a project that meets all of the following threshold criteria: (1) The project must involve an owner and...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.6] [Page 468] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart A_General Provisions Sec. 3565.6 Inclusion of tax-exempt debt. Tax-exempt financing can be used a source of capital for the guaranteed loan. [64 FR 32371, June 16, 1999] ...


impacts of proposed projects by working with applicants, other federal agencies, Indian tribes, State and local governments, and interested citizens...


the Agency, by a lender will be conducted without regard to race, color, religion, national origin, sex, marital status, age, income from public assistance or having...


for ensuring that the application is in compliance with all applicable federal requirements, including the following specific statutory...


Development mission area to maintain the highest standards of honesty, integrity, and impartiality by employees. (b) Rural Development requirement. To reduce the potential...


designee may make an exception to any requirement or provision, or address any omission of this part, if the Administrator determines that application of the requirement...


lender or a borrower, RHS will provide written notice of such adverse decision and of the right to a USDA National Appeals Division hearing in accordance with 7 CFR part 11...


any manner with any guarantee under this program must cooperate fully with all oversight and monitoring efforts of the Agency, Office of Inspector General, the U.S....


effectiveness of the guarantee program, or for similar purposes, the Agency may, from time to time, propose demonstration programs that use loan guarantees or...


party is required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection...


an approved lender, the Agency will commit to providing a guarantee for a permanent loan or a combination construction and permanent loan, subject to the availability of...


the project has attained a minimum level of acceptable occupancy as determined by the lender with Agency concurrence. The required occupancy level must be reached before...


will charge the following guarantee fees to the lender. (a) Initial guarantee fee. The Agency will charge an initial guarantee fee equal to one percent of the...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.54] [Page 471] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart B_Guarantee Requirements Sec. 3565.54 Transferability of the guarantee. A lender must receive the Agency's approval prior to any sale or transfer of the loan guarantee. ...


a guarantee when one of the lenders is an approved lender and agrees to act as the lead lender with responsibility for the loan under the loan...


will terminate when one of the following actions occurs: (In accordance with subpart H of this part, use restrictions on the property will remain if the following actions...


interest or further the objectives of the program, the Agency may, at its sole discretion, modify, extend, or reinstate a loan guarantee. In making this decision the Agency...


no party is required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection...


service a guaranteed loan in accordance with the regulation and program requirements throughout the life of a loan or guarantee, whichever is less. When it is in the...


or HFA in good standing in the state or states where it conducts business; be approved by the Agency; and meet at least one of the criteria contained below. Lenders...


approved lenders''. To be an approved lender, eligible lenders must meet the following requirements and maintain them on a continuing basis at a level consistent with...


application, in a format prescribed by the Agency. The lender approval application submission must occur at the time the lender submits [[Page 473]] its...


by the Agency. To maintain approval, the lender must comply with the following requirements. (a) Maintain eligibility in accordance with Sec. Sec. 3565.102...


as part of a combination construction and permanent loan, must demonstrate an ability to originate and service construction loans, in addition to meeting the other...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.108] [Page 473] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart C_Lender Requirements Sec. 3565.108 Responsibility for actions of agents and mortgage brokers. An approved lender is responsible for the actions of its agents and mortgage brokers. ...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.109] [Page 473] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart C_Lender Requirements Sec. 3565.109 Minimum loan prohibition. A lender must not establish a minimum loan amount for loans under this program. ...


guaranteed loan or loans to another approved lender prior to a determination of insolvency by the lender. If the lender fails to transfer a loan when required, the guarantee will...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.111] [Page 473] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart C_Lender Requirements Sec. 3565.111 Lobbying activities. An approved lender must comply with RD Instruction 1940-Q (available in any Rural Development Office) regarding lobbying activities. ...


party is required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection...


eligible borrower whose intention is to provide and maintain rural rental housing. The ownership entity must be a valid entity in good standing under the laws of the jurisdiction...


evidence of site control by the borrower (option to purchase, lease, deed or other evidence acceptable to the Agency). At the time of loan closing, the lender's closing...


lender must certify that the borrower: (a) Has the ability and experience to construct or rehabilitate multifamily housing that meets the requirements established by...


borrowers who are delinquent on a federal debt may not be guaranteed. Furthermore, borrowers or principals thereof who have defaulted on state or local government loans will not...


certify that it has disclosed any and all identity of interest relationships and preexisting conditions with respect to its relationships and that of the borrower, or that...


Agency requirements. At the time of application, the lender must obtain from the borrower a certification of compliance with all applicable federal, state, and...


1995, no party is required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.201] [Page 474] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart E_Loan Requirements Sec. 3565.201 General. To be eligible for a guarantee, a loan must comply with the provisions of this subpart and be originated by an approved lender. ...


to a guaranteed loan must be available for occupancy only by low or moderate- income families or individuals whose incomes at the time of initial occupancy do not...


tenant-paid utilities, must not exceed an amount equal to 30 percent of 115 percent of area median income, adjusted for family size. In addition, on an annual basis,...


part of the property that is attributable to dwelling use, the principal obligation of each guaranteed loan must not exceed the applicable maximum per-unit limitations...


conform with standards and conditions for housing and facilities contained in 7 CFR part 1924, subpart A or successor provision, except that the Agency, at its sole...


following: (a) Specialized equipment for training and therapy; (b) Housing in military impact areas; (c) Housing that serves primarily temporary and...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.207] [Page 476] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart E_Loan Requirements Sec. 3565.207 Form of lien. The loan originated by the lender for a guarantee must be secured by a first lien against the property. [[Page 477]] ...


of the loan, but in no instance may the term of a guaranteed loan exceed the lesser of 40 years or the remaining economic life of the project. (b) Prepayment of loans....


not less than 25 nor greater than 40 years from the date the loan was made and may provide for amortization of the loan over a period of not to exceed 40 years with a final...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.210] [Page 477] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart E_Loan Requirements Sec. 3565.210 Maximum interest rate. The interest rate for a guaranteed loan must not exceed the maximum allowable rate specified by the Agency in NOFA. Such rate must be fixed over the term of the loan. ...


during each fiscal year, the Agency will provide assistance in the form of interest credit, to the extent necessary to reduce the agreed-upon rate of interest to the AFR...


on any project if all guaranteed loans, in the aggregate, comply with these regulations, including without limitation: (a) In the aggregate, loans do not exceed the...


an area where there is undue risk due to a concentration in the market of properties subject to a Agency guaranteed loan. The Agency will consider the credit quality of the...


receiving a guaranteed loan, the Agency, or the lender if designated by the Agency, must review the terms and conditions of any secondary financing or funding of...


party is required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection...


must be used primarily for residential dwelling purposes and must meet the following requirements or the requirements of this subpart: (a) Property location. All...


existing structures. The units may be attached, detached, semi-detached, row houses, modular or manufactured houses, or multifamily structures....


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.253] [Page 478] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart F_Property Requirements Sec. 3565.253 Form of ownership. The property must be owned in fee simple or be subject to a ground lease or other legal right in land acceptable to the Agency. ...


The property must meet the site and neighborhood requirements established by the state or locality, and those standards contained under 7 CFR part 1924, subparts A and...


the Agency is required to assess the potential impact of the proposed actions on protected environmental resources. Measures to avoid or at least mitigate adverse impacts...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.256] [Page 478-479] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart F_Property Requirements Sec. 3565.256 Architectural services. Architectural services must be provided for the project in accordance [[Page 479]] with 7 CFR part 1924, subpart A or successor regulation, including plan certifications. ...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.257] [Page 479] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart F_Property Requirements Sec. 3565.257 Procurement actions. All construction procurement actions, whether by sealed bid or by negotiation, must be conducted in a manner that provides maximum open and free competition. ...


no party is required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection...


loan and appraise the subject property in accordance with prudent lending practices and Agency criteria addressing the following factors: (a) Borrower qualifications...


and necessary fees in connection with a borrower's application for a guaranteed loan. (b) Agency fees. The Agency will charge one or more types of fees...


the initial processing of a loan, the lender may request a preliminary feasibility review by the Agency when required loan documentation is submitted. (b)...


be responsible for submitting an application for a loan guarantee in a format prescribed by the Agency. Lenders may submit an application at the feasibility stage or when...


ensure that the loan closing statement and required loan documents are in a form acceptable to the Agency and included in the closing docket. The lender is responsible...


no party is required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection...


is to obtain borrower certification that the project is in compliance with local, state, federal laws and program requirements. (a) Regulatory agreement. A...


of the guarantee, owners are prohibited from using the housing or related facilities for any purpose other than an approved program purpose. (b) Use restriction. For...


lender must ensure that the lender and borrower are in compliance with the approved Affirmative Fair Housing Marketing Plan. This plan must be reviewed annually by the lender...


in compliance with the applicable fair housing laws in the development of the property, the selection of applicants for housing, and ongoing management. See subpart A of...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3565.355] [Page 482] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3565_GUARANTEED RURAL RENTAL HOUSING PROGRAM--Table of Contents Subpart H_Project Management Sec. 3565.355 Changes in ownership. Any change in ownership, in whole or in part, must be approved by the lender and the Agency before such change takes effect. ...


party is required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection...


servicing the guaranteed loan throughout the term of the loan or guarantee, whichever is less. In all cases, the lender remains responsible for liquidation of the property...


with this subpart and perform the services contained in this section in a reasonable and prudent manner. The lender is responsible for the actions of its agents...


servicing actions are insufficient to resolve borrower default or property deficiencies. (a) Responsibility of lender. It is the lender's responsibility during...


the Agency determines that circumstances warrant such action, the proposed lender is an eligible lender approved by the Agency, and the transfer of servicing is approved...


no party is required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection...


default and before filing a claim or assignment of the loan to the Agency, the lender must make every reasonable and prudent effort to resolve the default. The lender...


made when it is determined that the default cannot be cured through actions contained in Sec. 3565.403 of subpart I or it has been determined that it is in the best interest...


within 30 days after a decision to liquidate, submit to the Agency in writing its proposed detailed plan of liquidation. Upon approval by the Agency of the liquidation...


may choose to obtain an assignment of [[Page 486]] the loan from the lender or conveyance of title obtained by the lender through foreclosure or...


the Agency has agreed to accept an assignment of the loan or conveyance of title to the property, the lender may file a claim for the guaranteed portion of allowable losses....


maximum guarantee payment will not exceed the amount of guarantee percentage as contained in the guarantee agreement (but in no event more than 90%) times the...


to the Agency of withdrawal of the claim, the guarantee will continue as if the default had not occurred if the borrower cures the default prior to foreclosure or prior...


1995, no party is required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information...


(a) This subpart contains Rural Housing Service (RHS) policies and authorizations and establishes procedures for making essential Community Facilities Grants (CFG)...


facilities in rural areas. The Agency will authorize grant funds on a graduated basis. Eligible applicants located in smaller communities with lower populations and...


Agriculture, or a successor agency. Approval official. An official who has been delegated loan or grant approval authorities within applicable programs, subject...


rural areas, be located in a rural area, and the median household income of the population to be served by the proposed facility must be below the higher of the poverty...


facilities may be used to supplement financial assistance authorized in accordance with 7 CFR parts 1942, subparts A and C, and 3575, subpart A. Eligible CFG...


expenses or annual recurring costs, including purchases or rentals that are generally considered to be operating and maintenance expenses (unless a CF loan is part of...


the processing office will notify the applicant in writing of the reasons. The applicant will be advised that it may appeal the decision. (See 7 CFR...


grant funds, only one preapplication package and one application package should be prepared and submitted. Preapplications and applications for grants will be developed...


for determining the applicant's eligibility for grant assistance. (b) Maximum grant assistance. Grant assistance cannot exceed the lower of: (1)...


be distributed as follows: (a) Population priorities. The proposed project is located in a rural community having a population of: (1) 5,000 or less--30 points; ...


prioritized to determine which projects should be selected for further development and funding. (a) Selection of applications for further processing. The approval...


awarded under this subpart, including grant-only awards, are subject to the environmental requirements of 7 CFR part 1940, subpart G, to the intergovernmental review requirements...


recommendations of appropriate Federal or State regulatory or other agency or institution having expertise in the planning, operation, and management of...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3570.75] [Page 494] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3570_COMMUNITY PROGRAMS--Table of Contents Subpart B_Community Facilities Grant Program Sec. 3570.75 Grantee contracts. The requirements of 7 CFR 1942.4, 1942.17(e), 1942.17(l), 1942.118, and 1942.119 will be applicable when agreements between grantees and third parties are involved. ...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3570.76] [Page 494] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3570_COMMUNITY PROGRAMS--Table of Contents Subpart B_Community Facilities Grant Program Sec. 3570.76 Planning, bidding, contracting, and construction. Planning, bidding, contracting, and construction will be handled in accordance with 7 CFR 1942.9, 1942.18, and 1942.126. ...


be used as the grant agreement between the Agency and the grantee and will be signed by the grantee before grant funds are advanced. (b) Approval officials may...


provided in this section. (b) Grantees who are not required to submit an audit report will, within 60 days following the end of the fiscal year in which any grant...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3570.84] [Page 495] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3570_COMMUNITY PROGRAMS--Table of Contents Subpart B_Community Facilities Grant Program Sec. 3570.84 Grant servicing. Grants will be serviced in accordance with 7 CFR part 1951, subparts E and O. ...


the objectives of the approved project. (For construction projects, a material change in approved space utilization or functional layout shall be considered such a...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3570.87] [Page 495] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3570_COMMUNITY PROGRAMS--Table of Contents Subpart B_Community Facilities Grant Program Sec. 3570.87 Grant suspension, termination, and cancellation. Grants may be suspended or terminated for cause or convenience in accordance with 7 CFR parts 3015, 3016, or 3019, as applicable. ...


ensure that facilities are constructed in accordance with approved plans and specifications and to ensure that funds are expended for...


make, in individual cases, an exception to any requirement or provision of this subpart or address any omission of this subpart if the Administrator determines that...


or 3019, as applicable, and any conflicts between those parts and this part will be resolved in favor of applicable 7 CFR parts 3015, 3016,...


(designated under Title V of the Public Works and Economic Development Act of 1965) for projects eligible for RHS assistance. RHS has agreed to administer such funds in...


been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0173. You are not required to respond to this collection...


the Agency and applies to lenders, holders, borrowers, and other parties involved in making, guaranteeing, holding, servicing, or liquidating such loans. (b) The...


Agency. The Rural Housing Service which is within the Rural Development mission area of the United States Department of Agriculture or its successor agencies...


and credit of the United States and is not contestable except for fraud or misrepresentation (including negligent misrepresentation) of which the lender or holder has...


by the Agency. Each lender will also execute a Lender's Agreement. (a) The entire loan will be secured by the same security with equal lien priority for...


the Agency (or other agencies of the U.S. Department of Agriculture authorized by that Department or the U.S. Government) to inspect and make copies of any of the records of...


in part 1940, subpart G, of this title. The lender must assist the Agency to ensure that the lender's applicant complies with any mitigation measures required by...


and after issuance of the Loan Note Guarantee. The Agency may attend such field inspections. Any inspections or review conducted by the Agency, including those with...


the Agency has denied or reduced the amount of final loss payment to the lender, the adverse decision may be appealed only by the lender. A decision by a lender adverse to...


provision of this subpart or address any omission of this subpart provided the Administrator determines that application of the requirement or provision, or failure...


the borrower is unable to obtain the required credit without the loan guarantee from private, commercial, or cooperative sources at reasonable rates and terms for loans for...


other essential community facilities providing essential service primarily to rural residents and rural businesses. (1) Essential community facilities include, but...


be used for commercial rental when the borrower has no control over tenants and services offered except for industrial- site infrastructure development, (b) Facilities...


in the loan guarantee program. These lenders must be subject to credit examination and supervision by an appropriate agency of the United States or a State that...


issuance of the loan guarantee, the Agency may approve the transfer of an outstanding Conditional Commitment for Guarantee from the present lender to a new eligible...


fees for the loan, provided they do not exceed those charged other borrowers for similar types of transactions. ``Similar types of transactions'' mean those...


is a matter for negotiation between the lender and the Agency. (a) The maximum guarantee is 90 percent of eligible loss. (b) The lender will retain a minimum of...


They may be either fixed or variable rates. Interest rates will be those rates customarily charged borrowers in similar circumstances in the ordinary course of business...


provided in the note except, any interest accrued as the result of the borrower's default on the guaranteed loan over and above that which would have accrued at the note...


and fidelity bond coverage by loan closing or start of construction, whichever occurs first. Adequate coverage must be maintained for the life of the loan and is...


will comply with the requirements of title V of the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.). (See the Federal Reserve Board Regulation, 12 CFR part 202.) ...


at the end of construction that all funds were utilized for authorized purposes. The borrower and the lender will authorize designs and plans based upon the...


and beginning on the date of issuance of the Loan Note Guarantee, proposals for facilities financed in whole or in part with a loan guaranteed by the Agency will...


be based on taxes, assessments, revenues, fees, or other sources of revenues in an amount sufficient to provide for facility operation and maintenance, a...


and adequate security to protect the interest of the lender, the holder, and the Government. (b) Type of security. Security must be of such a nature that repayment...


or the necessary information may be submitted simultaneously with the application. The preapplication package will contain: (i) An Application for Federal Assistance on...


loan [[Page 509]] is for an eligible purpose, there is reasonable assurance of repayment ability, sufficient collateral and equity exists, the proposed...


the Acceptance of Conditions and return a copy to the Agency as soon as possible. Notwithstanding the preceding sentence, if certain conditions cannot be met, the lender...


be issued until: (a) The lender certifies that: (1) No changes have been made in the lender's loan conditions and requirements since the issuance of the...


(a) Lender's Agreement. If the Agency finds that all requirements have been met, the lender and the Agency will execute the Lender's Agreement. The original will be retained by...


the guaranteed loan. The lender must not sell or participate any amount of the guaranteed or non-guaranteed portion of the loan to the borrower or to members of the...


loan in accordance with the lender's loan agreement. The unguaranteed portion of the loan will not be paid first nor given any preference or priority over the...


Agreement. (a) Replacement of Loan Note Guarantee. The Agency may issue a replacement Loan Note Guarantee or Assignment Guarantee Agreement which may have...


a borrower is 30 days past due on a payment, has not met its responsibilities of providing the required financial statements, or is otherwise in default. The lender...


from a holder within 30 days of written demand from the holder when the borrower is in default not less than 60 days on payment. The repurchase will be for an amount equal...


lender, and holder (if any) may collectively effect a permanent reduction in the interest rate on the guaranteed loan at any time during the life of the loan on...


loan is necessary because of default or third party actions that the borrower cannot, or will not, cure or eliminate within a reasonable period of time and the Agency...


requirements to preserve the value of the security. Protective advances [[Page 516]] constitute an indebtedness of the borrower to the lender and must...


[Code of Federal Regulations] [Title 7, Volume 15] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR3575.84] [Page 516] TITLE 7--AGRICULTURE CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE PART 3575_GENERAL--Table of Contents Subpart A_Community Programs Guaranteed Loans Sec. 3575.84 Additional loans or advances. The lender will not make additional expenditures or new loans to the borrower without first obtaining the written approval of the Agency even though such expenditures or loans will not be guaranteed. ...


be used for calculating estimated and final loss determinations. (b) Lender responsibility. The lender is responsible for protecting the guaranteed loan debt and all...


in the plans for disposition of funds in the transferor's debt service, reserve, and operation and maintenance account. The Agency will approve, in writing, transfers...


as ``mergers'') when the resulting organization will be eligible for an Agency guaranteed loan and assumes all the liabilities and acquires all the assets of the merged...


the final loss claim is not paid until final disposition, the lender must proceed as quickly as possible to develop a plan to fully protect the collateral, and the lender...


the lender after the collateral is liquidated. The Agency will have the right to recover losses paid under the guarantee from any liable party. (a) General. If the...


any future funds which may be recovered by the lender will be pro-rated between the Agency and the lender in [[Page 521]] accordance with the...


(a) Upon full payment of the guaranteed loan; or (b) Upon full payment of any loss obligation or negotiated loss settlement except for future...


been approved by the Office of Management and Budget and have been assigned OMB control number 0575-0137. Subpart B...




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