Exhibit B to Subpart L of Part 1940 - Section 515 Nonprofit Set Aside (NPSA)
7:13.1.1.1.1.2.1.28.2 :
Exhibit B to Subpart L of Part 1940 - Section 515 Nonprofit Set
Aside (NPSA)
I. Objective: To provide eligible nonprofit entities with
a reasonable opportunity to utilize section 515 funds.
II. Background: The Cranston-Gonzalez National Affordable
Housing Act of 1990 established the statutory authority for the
section 515 NPSA funds.
III. Eligible entities. Amounts set aside shall be
available only for nonprofit entities in the State, which may not
be wholly or partially owned or controlled by a for-profit entity.
An eligible entity may include a partnership, including a limited
partnership, that has as its general partner a nonprofit entity or
the nonprofit entity's for-profit subsidiary which will be
receiving low-income housing tax credits authorized under section
42 of the Internal Revenue Code of 1986. For the purposes of this
exhibit, a nonprofit entity is an organization that:
A. Will own an interest in a project to be financed under this
section and will materially participate in the development and the
operations of the project; and
B. Is a private organization that has nonprofit, tax exempt
status under section 501(c)(3) or section 501(c)(4) of the Internal
Revenue Code of 1986; and
C. Has among its purposes the planning, development, or
management of low-income housing or community development projects;
and
D. Is not affiliated with or controlled by a for-profit
organization; and
E. May be a consumer cooperative, Indian tribe or tribal housing
authority.
IV. Nondiscrimination. Rural Development reemphasizes the
nondiscrimination in use and occupancy and location requirements of
7 CFR 3560.104.
V. Amount of Set Aside. See Attachment 1 of this exhibit
(available in any FmHA or its successor agency under Public Law
103-354 State Office):
A. Small State Allocation Set Aside (SSASA). The
allocation for small States has been reserved and combined to form
the SSASA, as shown in Attachment 1 of this exhibit (available in
any FmHA or its successor agency under Public Law 103-354 State
Office). The definition of small State is included in Attachment 1
of this exhibit (available in any FmHA or its successor agency
under Public Law 103-354 State Office).
B. Large State Allocation Set Aside (LSASA). The
allocation for large States has been reserved in the amounts shown
in Attachment 1 of this exhibit (available in any FmHA or its
successor agency under Public Law 103-354 State Office). The
definition of large State is included in Attachment 1 of this
exhibit (available in any FmHA or its successor agency under Public
Law 103-354 State Office).
C. NPSA Rental Assistance (RA). NPSA RA has been reserved
in the National Office as shown in Attachment 1 of this exhibit
(available in any FmHA or its successor agency under Public Law
103-354 State Office).
VI. Access to NPSA funds and RA. RA is available and may
be requested, as needed, with eligible loan requests. NPSA funds
and RA should be requested by the State Director using a format
similar to Attachment 2 of this exhibit (available in any FmHA or
its successor agency under Public Law 103-354 State Office). Funds
are available as follows:
A. SSASA: The SSASA is available to any SSASA State on a
first-come-first-served basis until pooling. See Attachment 3 of
this exhibit (available in any FmHA or its successor agency under
Public Law 103-354 State Office) for information regarding
pooling.
B. LSASA: LSASA states may request LSASA funds up to the
amount the state contributed to LSASA until pooling. See Attachment
3 of this exhibit (available in any FmHA or its successor agency
under Public Law 103-354 State Office) for information regarding
pooling.
VII. General Information on priority/processing of
Preapplications.
A. Preapplications/applications for assistance from eligible
nonprofit entities under this subpart must continue to meet all
loan making requirements of 7 CFR part 3560, subpart B.
B. A separate processing list will be maintained for NPSA loan
requests.
C. The State Director may issue Form AD-622, “Notice of
Preapplication Review Action”, requesting a formal application to
the highest ranking preapplication(s) from eligible nonprofit
entities defined in paragraph III of this exhibit as follows:
1. LSASA. In LSASA States, AD-622s may not exceed 150
percent of the amount the State contributed to the LSASA. No single
Form AD-622 may exceed the amount of funds the State contributed to
LSASA.
2. SSASA. In SSASA States, AD-622s should not exceed the
greater of $750,000 or 150 percent of the amount the State
contributed to the SSASA; except that the State Director in a SSASA
State may request authorization to issue a Form AD-622, in an
amount in excess of $750,000 if additional funds are necessary to
finance an average-size proposal based upon average construction
costs in the state. For example, if the average size proposal
currently being funded in the state is 24 units, and the average
construction cost in the state is $35,000 per unit, the state may
request authorization to issue an AD-622 for $840,000. The State
Director will submit such requests to the National Office including
data reflecting average size/cost projects in the State. No single
Form AD-622 may exceed the amount of funds the State may receive
from SSASA.
D. All AD-622s issued for proposals to be funded from NPSA will
be subject to the availability of NPSA funds. Form AD-622 should
contain the following or similar language: “This Form AD-622 is
issued subject to the availability of Nonprofit Set-Aside (NPSA)
funds.”
E. If a preapplication requesting NPSA funds has sufficient
priority points to compete with non-NPSA loan requests based upon
the District or State allocation (as applicable), the
preapplication will be maintained on both the NPSA and non-NPSA
rating/ranking lists.
F. Provisions for providing preference to loan requests from
nonprofit organizations is contained in 7 CFR 3560.56. Limited
partnerships, with a nonprofit general partner, do not qualify for
nonprofit preference.
VIII. 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
or adversely affect the intent of the authorizing statute and/or
Rural Rental Housing program or result in an undue hardship by
applying the requirement. 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. The request must be
supported by information that demonstrates the adverse impact or
effect on the program. The Administrator, or his/her designee, also
reserves the right to change pooling dates, establish/change
minimum and maximum fund usage from NPSA, or restrict participation
in the set aside.
[58 FR 38950, July 21, 1993, as amended at 69 FR 69104, Nov. 26,
2004]
Exhibit C to Subpart L of Part 1940 - Housing in Underserved Areas
7:13.1.1.1.1.2.1.28.3 :
Exhibit C to Subpart L of Part 1940 - Housing in Underserved Areas
I. Objective
A. To improve the quality of affordable housing by targeting
funds under Rural Housing Targeting Set Aside (RHTSA) to designated
areas that have extremely high concentrations of poverty and
substandard housing and have severe, unmet rural housing needs.
B. To provide for the eligibility of certain colonias for rural
housing funds.
II. Background
The Cranston-Gonzalez National Affordable Housing Act of 1990
(herein referred to as the “Act”) requires that Farmers Home
Administration (FmHA) or its successor agency under Public Law
103-354 set aside section 502, 504, 514, 515, and 524 funds for
assistance in targeted, underserved areas. An appropriate amount of
section 521 new construction rental assistance (RA) is set aside
for use with section 514 and 515 loan programs. Under the Act,
certain colonias are now eligible for FmHA or its successor agency
under Public Law 103-354 housing assistance.
III. Colonias
A. Colonia is defined as any identifiable community that:
1. Is in the State of Arizona, California, New Mexico or
Texas;
2. Is in the area of the United States within 150 miles of the
border between the United States and Mexico, except that the term
does not include any standard metropolitan statistical area that
has a population exceeding 1 million;
3. Is designated by the State or county in which it is located
as a colonia;
4. Is determined to be a colonia on the basis of objective
criteria, including lack of potable water supply, lack of adequate
sewage systems, and lack of decent, safe, and sanitary housing;
and
5. Was in existence and generally recognized as a colonia before
November 28, 1990.
B. Requests for housing assistance in colonias have priority as
follows:
1. When the State did not obligate its allocation in one or more
of its housing programs during the previous 2 fiscal years (FYs),
priority will be given to requests for assistance, in the affected
program(s), from regularly allocated funds, until an amount equal
to 5 percent of the current FY program(s) allocation is obligated
in colonias. This priority takes precedence over other processing
priority methods.
2. When the State did obligate its allocation in one or more of
its housing programs during the previous 2 FYs, priority will be
given to requests for assistance, in the affected program(s), from
RHTSA funds, until an amount equal to 5 percent of the current FY
program(s) allocation is obligated in colonias. This priority takes
precedence over other processing priority methods.
C. Colonias may access pooled RHTSA funds as provided in
paragraph IV G of this exhibit.
IV. RHTSA
A. Amount of Set Aside. Set asides for RHTSA, from the
current FY allocations, are established in attachment 1 of this
exhibit (available in any FmHA or its successor agency under Public
Law 103-354 State Office).
B. Selection of Targeted Counties - 1.
Eligibility. Eligible counties met the following criteria:
(1) 20 percent or more of the county population is at, or below,
poverty level; (2) 10 percent or more of the occupied housing units
are substandard; and (3) the average funds received on a per capita
basis in the county, during the previous 5 FYs, were more than 40
percent below the State per capita average during the same period.
Data from the most recent available Census was used for all three
criteria, with criteria (2) and (3) based on the FmHA or its
successor agency under Public Law 103-354 rural area
definition.
2. Selection. The Act requires that 100 of the most
underserved counties be initially targeted for RHTSA funds. In
establishing the 100 counties, those with 28 percent or more of
their population at, or below, poverty level and 13 percent or more
of their occupied housing units substandard, have preference. If
less than 100 counties meet this criteria, the remaining counties
meeting the criteria in paragraph IV B 1 of this exhibit will be
ranked, based upon a total of their substandard housing and poverty
level percentages. The highest-ranking counties are then selected
until the list reaches 100. The remaining counties are eligible for
pool funds only.
C. State RHTSA Levels. In the section 502, 504, and 515
programs, each State's RHTSA level will be based on its number of
eligible counties, with each county receiving a pro rata share of
the total funds available. In order to ensure that a meaningful
amount of assistance is available to each State, minimum funding
levels may be established. When minimum levels are established,
they are set forth on Attachment 1 of this exhibit (available in
any FmHA or its successor agency under Public Law 103-354 State
Office).
D. Use of Funds. To maximize the assistance to targeted
counties, allocated program funds should be used in addition to
RHTSA funds, where possible. The State Director has the discretion
to determine the most effective delivery of RHTSA funds among the
targeted counties within his/her jurisdiction. The 100 counties
listed in attachment 2 of this exhibit (available in any FmHA or
its successor agency under Public Law 103-354 State Office) are
eligible for RHTSA funding consideration immediately. Colonias are
also eligible for RHTSA funds as described in paragraph III of this
exhibit.
E. National Office RHTSA Reserve. A limited National
Office reserve is available on an individual case basis when the
State is unable to fund a request from its regular or RHTSA
allocation. The amount of the reserve, and the date it can be
accessed and any conditions thereof, if applicable, are contained
in attachment 1 of this exhibit (available in any FmHA or its
successor agency under Public Law 103-354 State Office).
F. Requests for Funds and RA. All RHTSA funds are
reserved in the National Office and requests for these funds and/or
RA units must be submitted by the State Director, using the
applicable format shown on attachment 4 or 5 of this exhibit
(available in any FmHA or its successor agency under Public Law
103-354 State Office). The State Director is responsible for
notifying the Director of Single Family Housing Processing Division
(SFHPD) or Multi-Family Housing Processing Division (MFHPD) of any
RHTSA funds and RA units authorized, but not obligated, by RHTSA
pooling date.
G. Pooling. Unused RHTSA funds and RA will be pooled.
Pooling dates and any pertinent information thereof are available
on attachment 1 of this exhibit (available in any FmHA or its
successor agency under Public Law 103-354 State Office). Pooled
funds will be available on a first-come, first-served basis to all
eligible colonias and all counties listed on attachments 2 and 3 of
this exhibit (available in any FmHA or its successor agency under
Public Law 103-354 State Office). Pooled RHTSA funds will remain
available until the year-end pooling date.
H.-I. [Reserved]
J. Requests for Assistance. Requests for assistance in
targeted counties must meet all loan making requirements of the
applicable program Instructions, except as modified for colonias in
paragraph III of this exhibit. For section 515, States may:
1. Issue Form AD-622, “Notice of Preapplication Review Action,”
up to 150 percent of the amount shown in attachment 1 of this
exhibit (available in any FmHA or its successor agency under Public
Law 103-354 State Office).
2. All AD-622s issued for applicants in targeted counties will
be annotated, in Item 7, under “Other Remarks,” with the following:
“Issuance of this AD-622 is contingent upon receiving funds from
the Rural Housing Targeting Set Aside (RHTSA). Should RHTSA funds
be unavailable, or the county in which this project will be located
is no longer considered a targeted county, this AD-622 will no
longer be valid. In these cases, the request for assistance will
need to compete with other preapplications in non-targeted
counties, based upon its priority point score.”
V. [Reserved] [57 FR 3924, Feb. 3, 1992]