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Federal Register / Vol. 71, No.

18 / Friday, January 27, 2006 / Notices 4559

In addition to duty-free access to the meeting. The meeting is open to the available to provide lenders and the
U.S. sugar market under NAFTA, public. general public with guidance on
Mexico may enter under the provisions DATES: Monday, February 27, 2006. program administration. HB–1–3565,
of Additional U.S. Note 5 of chapter 17 which contains a copy of 7 CFR part
ADDRESSES: The meeting will be held in
of the HTS 2,954 metric tons, raw value, 3565 in Appendix 1, can be found at the
the conference room at the Helena
of duty-free sugar under subheadings Rural Development Instructions Web
Chamber of Commerce, 225 Cruse
1701.12.10, 1701.91.10, 1701.99.10, site address http://
Avenue, Helena, MT 59601.
1702.90.10 and 2106.90.44 during a FY www.rurdev.usda.gov/regs/
FOR FURTHER INFORMATION CONTACT:
2006 quota period which opened hblist.html#hbw6.
September 8, 2005. Duane H. Harp, Designated Forest Eligible lenders are invited to submit
Notice: I hereby give notice, in Official (DFO), District Ranger, Helena responses for the development or
accordance with Annex 703.2 of the Ranger District, Helena National Forest, acquisition with rehabilitation of
NAFTA, that an aggregate quantity of up at (406) 449–5490. affordable rental housing to serve rural
to 250,383 metric tons, raw value, of SUPPLEMENTARY INFORMATION: Agenda America. In addition, this fiscal year,
sugar described in subheadings topics for this meeting include review of guarantees will be available for the
1701.11.10, 1701.12.10, 1701.91.10, projects proposed for funding and revitalization, repair, and transfer cost
1701.99.10, 1702.90.10 and 2106.90.44, public comment as authorized under of existing direct section 515 housing
of the HTS may be entered or Title II of Pub. L. 106–393. If the (transfer costs are subject to Agency
withdrawn from warehouse for meeting location is changed, notice will approval and must be an eligible use of
consumption during the period from be posted in local newspapers, loan proceeds as listed in 7 CFR
October 1, 2005, through September 30, including the Helena Independent 3565.205). In order to be considered,
2006. The quantity is based upon the Record. direct section 515 housing projects must
Department’s projection of Mexico’s net Dated: January 20, 2006. need repairs and/or undergo
production surplus of sugar which is Duane H. Harp, revitalization of a minimum of $6,500
available for export to the United States. District Ranger. per unit.
The entire amount, which is authorized [FR Doc. E6–1028 Filed 1–26–06; 8:45 am] The Rural Housing Service (RHS) will
for duty-free entry, is accounted for by review responses submitted by eligible
BILLING CODE 3410–11–P
the domestic cane sugar marketing lenders, on the lender’s letterhead, and
allotment that the Commodity Credit signed by both the prospective borrower
Corporation (CCC) estimates will not be DEPARTMENT OF AGRICULTURE and lender. Although a complete
filled in FY 2006. CCC is reassigning application is not required in response
this deficit quantity to imports, Rural Housing Service to this Notice of Funding Availability
pursuant to section 359e(b)(1)(D) of the (NOFA), eligible lenders may submit a
Agricultural Adjustment Act of 1938, as Notice for Requests for Proposals for complete application concurrently with
amended (7 U.S.C. 1359ee(b)(1)(D)). Guaranteed Loans Under the Section the response. However, submitting a
I have further determined that all 538 Guaranteed Rural Rental Housing complete application will not have an
entries of sugar entered from Mexico Program (GRRHP) for Fiscal Year 2006 effect on the response’s score.
under the provisions of Annex 703.2 of DATES: The RHS will review and score
the NAFTA during FY 2006 require AGENCY: Rural Housing Service, USDA.
ACTION: Notice. all responses received through June 16,
Certificates for Quota Eligibility issued 2006. Those responses that are selected
by the USDA Licensing Authority. SUMMARY: This is a request for proposals that subsequently submit complete
Signed at Washington, DC the 18th day of for loan guarantees under the section applications and meet all Federal
January, 2006. 538 Guaranteed Rural Rental Housing environmental requirements will
A. Ellen Terpstra, Program (GRRHP) pursuant to 7 CFR receive commitments to the extent an
Administrator, Foreign Agricultural Service. 3565.4 for Fiscal Year (FY) 2006 subject appropriation act provides funding for
[FR Doc. E6–1030 Filed 1–26–06; 8:45 am] to the availability of funding. FY 2006 GRRHP for FY 2006 until all funds are
BILLING CODE 3410–10–P funding for the section 538 program is expended. Responses received prior to
$99 million. Applicants will submit June 16, 2006, that meet program
proposals in the form of ’’RESPONSES.’’ criteria, but score less than 25 points or
DEPARTMENT OF AGRICULTURE The commitment of program dollars score 25 points or more but have a
will be made to applicants of selected development cost ratio of equal to or
Forest Service responses that have fulfilled the more than 70 percent may be selected
necessary requirements for obligation. for obligation after June 16, 2006, with
Notice of Lewis and Clark County The commitment of program dollars the highest scoring responses receiving
Advisory Committee Meeting will be made to applicants of selected priority as long as funds remain
AGENCY: Forest Service, USDA. responses that have fulfilled the available. The Agency will continue to
ACTION: Notice of meeting. necessary requirements for obligation, to select the highest scoring NOFA
the extent an appropriation act provides responses received after June 16, 2006,
SUMMARY: Pursuant to the authorities in funding for GRRHP for FY 2006. notwithstanding the score, as long as the
the Federal Advisory Committee Act Expenses incurred in developing response meets program criteria and
(Pub. L. 92–463) and under the Secure applications will be at the applicant’s funds remain available. A notice will be
Rural Schools and Community Self- risk. The following paragraphs outline placed in the Federal Register when all
Determination Act of 2000 (Pub. L. 106– the timeframes, eligibility requirements, funds are committed for FY 2006.
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393) the Helena National Forest’s Lewis lender responsibilities, and the overall Eligible lenders mailing a response or
and Clark County Resource Advisory response and application processes. application must provide sufficient time
Committee will meet on Monday The GRRHP operates under 7 CFR to permit delivery to the ‘‘Submission
February 27 from 3 p.m. until 6 p.m. in part 3565. The GRRHP Origination and Address’’ on or before the closing
Helena, Montana, for a business Servicing Handbook (HB–1–3565) is deadline date and time. Acceptance by

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4560 Federal Register / Vol. 71, No. 18 / Friday, January 27, 2006 / Notices

a U.S. Post Office or private mailer does Idaho State Office, Suite A1, 9173 West 5th Floor, Syracuse, NY 13202. (315) 477–
not constitute delivery. Postage due Barnes Dr., Boise, ID 83709, (208) 378– 6419. TDD (315) 477–6447. George N. Von
responses and applications will not be 5630. TDD (208) 378–5644. Roni Atkins. Pless.
Illinois State Office, 2118 West Park Court, North Carolina State Office, 4405 Bland
accepted. Suite A, Champaign, IL 61821–2986. (217) Road, Suite 260, Raleigh, NC 27609. (919)
Submission Address: Eligible lenders 403–6222. TDD (217) 403–6240. Barry L. 873–2066. TDD (919) 873–2003. William
will send responses to the Multi-Family Ramsey. Hobbs.
Housing Director in the State Office Indiana State Office, 5975 Lakeside North Dakota State Office, Federal Building,
where the project will be located. The Boulevard, Indianapolis, IN 46278. (317) Room 208, 220 East Rosser, PO Box 1737,
lender will also send a copy of its NOFA 290–3100 (ext. 423). TDD (317) 290–3343. Bismarck, ND 58502. (701) 530–2049. TDD
response (copies of ‘‘Lender John Young. (701) 530–2113. Donald L. Warren.
Iowa State Office, 210 Walnut Street Room Ohio State Office, Federal Building, Room
Certification’’ letter and ‘‘Project 873, Des Moines, IA 50309. (515) 284– 507, 200 North High Street, Columbus, OH
Specific Data’’ sheets only; do not 4666. TDD (515) 284–4858. Ambrose H. 43215–2477. (614) 255–2418. TDD (614)
include any application supporting McGuire. 255–2554. Gerald Arnott.
documentation, i.e., market studies, Kansas State Office, 1303 SW. First American Oklahoma State Office, 100 USDA, Suite 108,
plans/specs, etc.) to: C.B. Alonso, Senior Place, Suite 100, Topeka, KS 66604–4040. Stillwater, OK 74074–2654. (405) 742–
Loan Specialist, Guaranteed Rural (785) 271–2721. TDD (785) 271–2767. Tim 1070. TDD (405) 742–1007. Anita Kinyon.
Rental Housing Program, Multi-Family Rogers. Oregon State Office, 101 SW Main, Suite
Kentucky State Office, 771 Corporate Drive, 1410, Portland, OR 97204–3222. (503) 414–
Housing Processing Division, U.S.
Suite 200, Lexington, KY 40503. (859) 224– 3325. TDD (503) 414–3387. Jillene Davis.
Department of Agriculture, South 7325. TDD (859) 224–7422. Paul Higgins. Pennsylvania State Office, One Credit Union
Agriculture Building, Room 1271, STOP Louisiana State Office, 3727 Government Place, Suite 330, Harrisburg, PA 17110–
0781, 1400 Independence Avenue, SW., Street, Alexandria, LA 71302. (318) 473– 2996. (717) 237–2281. TDD (717) 237–
Washington, DC 20250–0781. 7962. TDD (318) 473–7655. Yvonne R. 2261. Frank Wetherhold.
Rural Development State Offices, their Emerson. Puerto Rico State Office, 654 Munoz Rivera
addresses, telephone numbers, and Maine State Office, 967 Illinois Ave., Suite 4, Avenue, IBM Plaza, Suite 601, Hato Rey,
PO Box 405, Bangor, ME 04402–0405. (207) PR 00918. (787) 766–5095 (ext. 249). TDD
person to contact follows: [This 990–9110. TDD (207) 942–7331. Dale D. (787) 766–5332. Pedro Gomez.
information may also be found at http:// Holmes. Rhode Island: Served by Massachusetts State
www.rurdev.usda.gov/recd_map.html.] Maryland: Served by Delaware State Office. Office.
Note: Telephone numbers listed are not Massachusetts, Connecticut, & Rhode Island South Carolina State Office, Strom
toll-free. State Office, 451 West Street, Amherst, MA Thurmond Federal Building, 1835
01002. (413) 253–4333. TDD (413) 253– Assembly Street, Room 1007, Columbia, SC
Alabama State Office, Suite 601, Sterling
4590. Donald Colburn. 29201. (803) 253–3432. TDD (803) 765–
Centre, 4121 Carmichael Road,
Michigan State Office, 3001 Coolidge Road, 5697. Larry D. Floyd.
Montgomery, AL 36106–3683. (334) 279–
Suite 200, East Lansing, MI 48823. (517) South Dakota State Office, Federal Building,
3455. TDD (334) 279–3495. James B. 324–5192. TDD (517) 337–6795. Ghulam R. Room 210, 200 Fourth Street, SW., Huron,
Harris. Sumbal. SD 57350. (605) 352–1132. TDD (605) 352–
Alaska State Office, 800 West Evergreen, Minnesota State Office, 375 Jackson Street 1147. Roger Hazuka or Pam Reilly.
Suite 201, Palmer, AK 99645. (907) 761– Building, Suite 410, St. Paul, MN 55101– Tennessee State Office, Suite 300, 3322 West
7740. TDD (907) 761–8905. Deborah Davis. 1853. (651) 602–7782. TDD (651) 602– End Avenue, Nashville, TN 37203–1084.
Arizona State Office, Phoenix Courthouse 7830. Jackie Morris. (615) 783–1375. TDD (615) 783–1397. Don
and Federal Building, 230 North First Ave., Mississippi State Office, Federal Building, Harris.
Suite 206. Phoenix, AZ 85003–1706. (602) Suite 831, 100 W. Capitol Street, Jackson, Texas State Office, Federal Building, Suite
280–8765. TDD (602) 280–8706. Don Irby. MS 39269. (601) 965–4325. TDD (601) 965– 102, 101 South Main, Temple, TX 76501.
Arkansas State Office, 700 W. Capitol Ave., 5850. Darnella Smith-Murray. (254) 742–9758. TDD (254) 742–9712.
Room 3416, Little Rock, AR 72201–3225. Missouri State Office, 601 Business Loop 70 Gayle Ledyard.
(501) 301–3250. TDD (501) 301–3063. West, Parkade Center, Suite 235, Columbia, Utah State Office, Wallace F. Bennett Federal
Gregory Kemper. MO 65203. (573) 876–0990, TDD (573) Building, 125 S. State Street, Room 4311,
California State Office, 430 G Street, #4169, 876–9480, Anita J. Dunning. Salt Lake City, UT 84147–0350. (801) 524–
Davis, CA 95616–4169. (530) 792–5830. Montana State Office, 900 Technology Blvd. 4325. TDD (801) 524–3309. David E.
TDD (530) 792–5848. Stephen Nnodim. Suite B, Bozeman, MT 59715. (406) 585– Brown.
Colorado State Office, 655 Parfet Street, 2565. TDD (406) 585–2562. Deborah Vermont State Office, City Center, 3rd Floor,
Room E100, Lakewood, CO 80215. (720) Chorlton. 89 Main Street, Montpelier, VT 05602.
544–2923. TDD (800) 659–2656. Jamie Nebraska State Office, Federal Building, (802) 828–6021. TDD (802) 223–6365.
Spakow. Room 152, 100 Centennial Mall N, Lincoln, Robert McDonald.
Connecticut: Served by Massachusetts State NE 68508. (402) 437–5594. TDD (402) 437– Virgin Islands: Served by Florida State
Office. 5093. Byron L. Fischer. Office.
Delaware and Maryland State Office, 4607 Nevada State Office, 1390 South Curry Street, Virginia State Office, Culpeper Building,
South Dupont Highway, PO Box 400, Carson City, NV 89703–9910. (775) 887– Suite 238, 1606 Santa Rosa Road,
Camden, DE 19934–9998. (302) 697–4353. 1222 (ext. 25). TDD (775) 885–0633. Richmond, VA 23229. (804) 287–1596.
TDD (302) 697–4303. W. Drew Clendaniel. William Brewer. TDD (804) 287–1753. Eileen Nowlin.
Florida & Virgin Islands State Office, 4440 New Hampshire State Office, Concord Washington State Office, 1835 Black Lake
NW. 25th Place, Gainesville, FL 32606– Center, Suite 218, Box 317, 10 Ferry Street, Blvd., Suite B, Olympia, WA 98512. (360)
6563. (352) 338–3465. TDD (352) 338– Concord, NH 03301–5004. (603) 223–6046. 704–7730. TDD (360) 704–7760. Robert
3499. Elizabeth M. Whitaker. TDD (603) 229–0536. Robert McDonald. Lund.
Georgia State Office, Stephens Federal New Jersey State Office, 5th Floor North Western Pacific Territories: Served by Hawaii
Building, 355 E. Hancock Avenue, Athens, Suite 500, 8000 Midlantic Dr., Mt. Laurel, State Office.
GA 30601–2768. (706) 546–2164. TDD NJ 08054. (856) 787–7740. TDD (856) 787– West Virginia State Office, Federal Building,
(706) 546–2034. Wayne Rogers. 7784. George Hyatt, Jr. 75 High Street, Room 320, Morgantown,
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Hawaii State Office, (Services all Hawaii, New Mexico State Office, 6200 Jefferson St., WV 26505–7500. (304) 284–4872. TDD
American Samoa Guam, and Western NE., Room 255, Albuquerque, NM 87109. (304) 284–4836. David Cain.
Pacific), Room 311, Federal Building, 154 (505) 761–4944. TDD (505) 761–4938. Wisconsin State Office, 4949 Kirschling
Waianuenue Avenue, Hilo, HI 96720. (808) Walter Taylor. Court, Stevens Point, WI 54481. (715) 345–
933–8305. TDD (808) 933–8321. Jack New York State Office, The Galleries of 7615 (ext. 151). TDD (715) 345–7614. Peter
Mahan. Syracuse, 441 S. Salina Street, Suite 357 Kohnen.

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Federal Register / Vol. 71, No. 18 / Friday, January 27, 2006 / Notices 4561

Wyoming State Office, PO Box 11005, 3565.205). In order to be considered, as such term is used in section
Casper, WY 82602. (307) 233–6715. TDD direct section 515 housing projects must 42(I)(2)(D) of the Internal Revenue Code
(307) 233–6733. Alan Brooks. need repairs and/or undergo of 1986, 26 U.S.C. 7805, Sec. 1.42–1T.
FOR FURTHER INFORMATION CONTACT: C.B. revitalization of a minimum of $6,500 The interest credit will be paid
Alonso, Senior Loan Specialist, per unit. following the January 1st of the year in
Guaranteed Rural Rental Housing Eligible Financing Sources: Any form which the project has reached
Program, Multi-Family Housing of Federal, state, and conventional occupancy standards, and the
Processing Division, U.S. Department of sources of financing can be used in permanent loan note guarantee is
Agriculture, South Agriculture Building, conjunction with the loan guarantee, issued. If 20 percent of the loans have
Room 1271, STOP 0781, 1400 including Home Investment Partnership not received interest credit by June 16,
Independence Avenue, SW., Program (HOME) grant funds, tax 2006, then RHS will award interest
Washington, DC 20250–0781. Email: exempt bonds, and low income housing credit to those loans that initially
cb.alonso@wdc.usda.gov. Telephone: tax credits. requested interest credit and have the
(202) 720–1624. This number is not toll- Maximum Guarantee: The Agency highest interest credit priority score
free. Hearing or speech-impaired can guarantee the ‘‘permanent’’ portion until at least 20 percent of the loans
persons may access that number by or both the ‘‘construction and have received interest credit. Requests
calling the Federal Information Relay permanent’’ portions of a construction/ for interest credit must be made in the
Service toll-free at (800) 877–8339. permanent loan. The Agency cannot, response. When interest credit
Eligibility of Prior Year Selected however, guarantee only the assistance is requested, lenders must
Notices of Funding Availability ‘‘construction’’ portion of a state in the response the maximum basis
Responses: NOFA response selections construction/permanent loan. points above the Long Term Monthly
prior to FY 2005 that did not develop The maximum guarantee for a AFR that will be used to calculate the
into a complete application or where permanent loan will be 90 percent of the interest rate. Priority points will be
funds were not obligated have been unpaid principal and interest up to given for basis points equal to or less
cancelled. A new NOFA response for default and accrued interest 90 calendar than 250 above the Long Term Monthly
the project may be submitted subject to days from the date the liquidation plan AFR. Lenders are not permitted to make
the conditions of this NOFA. is approved by the Agency, as defined requests for interest credit after the
FY 2005 NOFA responses that were in 7 CFR 3565.452. Penalties incurred as selection process has taken place.
selected by the Agency, and a complete a result of default are not covered by the Due to limited funding and in order
application (including all Federal guarantee. The Agency may provide a to distribute interest credit assistance as
environmental documents required by 7 lesser guarantee based upon its broadly as possible, the Agency has
CFR part 1940, subpart G, a Form RD evaluation of the credit quality of the decided to limit the interest credit to
3565–1, and the $2,500 application fee) loan. The Agency liability under any $1.5 million per loan. For example, if an
was submitted by the lender within 90 guarantee will decrease or increase, in eligible request were made for interest
days from the date of notification of proportion to any increase or decrease credit on a loan of $2.5 million, up to
response selection (unless an extension in the amount of the unpaid portion of $1.5 million of the loan would receive
was granted by the State office), will be the loan, up to the maximum amount interest credit. Interest credit is not
eligible for FY 2006 program dollars and specified in the Loan Note Guarantee. available for construction loans. Interest
will compete in the FY 2006 priority The maximum guarantee of credit is only available for permanent
scoring without having to complete a FY construction advances will not at any loans. Lenders with projects that are
2006 NOFA response. time exceed the lesser of 90 percent of viable with or without interest credit are
the amount of principal and interest up encouraged to submit a response
General Program Information to default advanced for eligible uses of reflecting financial and market
Program Purpose: The purpose of the loan proceeds or 90 percent of the feasibility under both funding options.
GRRHP is to increase the supply of original principal amount and interest Responses requesting consideration
affordable rural rental housing, through up to default of the loan. Penalties under both options will not affect
the use of loan guarantees that incurred as a result of default are not interest credit selection. Due to limited
encourage partnerships between the covered by the guarantee. The Agency interest credit funds and the
RHS, private lenders, and public may provide a lesser guarantee based responsibility of RHS to target and give
agencies. upon its evaluation of the credit quality priority to rural areas most in need,
Responses Must Be Submitted by: The of the loan. responses requesting interest credit
Agency will only accept responses from Reimbursement of Losses: Any losses must score a minimum of 55 points
GRRHP eligible or approved lenders as will be split on a pro-rata basis between under the criteria established in this
described in 7 CFR 3565.102 and the lender and the RHS from the first NOFA. In the event of ties, selection
3565.103 respectively. dollar lost. between responses will be by lot.
Qualifying Properties: Qualifying Interest Rate: RHS will accept the best Surcharges for Guarantee of
properties include new construction for rate negotiated between the lender and Construction Advances: There is no
multi-family housing units or the prospective borrower. The lender is not surcharge for the guarantee of
acquisition of existing structures with a required to provide the interest rate in construction advances for FY 2006.
minimum per unit rehabilitation the response unless applying for interest Program Fees for FY 2006: As a
expenditure requirement in accordance credit. The interest rate must be fixed condition of receiving a loan guarantee,
with 7 CFR 3565.252. over the term of the loan. the Agency will charge the following
In addition, this fiscal year, Interest Credit: For at least 20 percent guarantee fees to the lender.
guarantees will be available for the of the loans made during each fiscal (1) Initial guarantee fee. The Agency
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revitalization, repair and transfer cost of year, the Agency will provide assistance will charge an initial guarantee fee equal
existing direct section 515 housing in the form of interest credit, to the to one percent of the guarantee amount.
(transfer costs are subject to Agency extent necessary to reduce the agreed- For purposes of calculating this fee, the
approval and must be an eligible use of upon rate of interest to the Long Term guarantee amount is the product of the
loan proceeds as listed in 7 CFR Monthly Applicable Federal Rate (AFR) percentage of the guarantee times the

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4562 Federal Register / Vol. 71, No. 18 / Friday, January 27, 2006 / Notices

initial principal amount of the executed multi-family housing Lender’s origination through termination for
guaranteed loan. Agreement with RHS. multi-family loans;
(2) Annual guarantee fee. An annual (5) Lenders that can demonstrate the (4) Portfolio performance data;
guarantee fee of at least 50 basis points capacity to underwrite, originate, (5) Copies of standard documents that
(one-half percent) of the outstanding process, close, service, manage, and will be used in processing GRRHP
principal amount of the loan as of dispose of multi-family housing loans in loans;
December 31 will be charged each year a prudent manner. In order to be (6) Resumes and qualifications of key
or portion of a year that the guarantee approved the lender will have to have personnel that will be involved in the
is in effect. an acceptable level of financial GRRHP;
(3) There is a non-refundable soundness as determined by a lender (7) Identification of standards and
application fee of $2,500 when the rating service. The submission of processes that deviate from those
application is submitted. materials demonstrating capacity will be outlined in the GRRHP Origination and
(4) There is a flat fee of $500 when a required if the lender’s response is Servicing Handbook (HB–1–3565) found
lender requests RHS to extend the term selected. Lenders who are otherwise at http://www.rurdev.usda.gov/regs/
of a guarantee commitment. ineligible may become eligible if they hblist.html#hbw6;
(5) There is a flat fee of $500 when a maintain a correspondent relationship (8) A copy of the most recent audited
lender requests RHS to reopen an with an eligible lender that does have financial statements;
application when a commitment has the capacity to underwrite, originate, (9) Lender specific information
expired. process, close, service, manage, and
(6) There is a flat fee of $1,250 when including: (a) Legal name and address,
dispose of multi-family housing loans in
a lender requests RHS to approve the (b) list of principal officers and their
a prudent manner. In this case, the
transfer of property and assumption of responsibilities, (c) certification that the
eligible lender must submit the response
the loan to an eligible prospective officers and principals of the lender
and application. All contractual and
borrower. have not been debarred or suspended
legal documentation will be signed
(7) There is no lender application fee from Federal programs, (d) Form AD
between RHS and the lender that
for lender approval in FY 2006. 1047, (e) certification that the lender is
submitted the response and application.
Eligible Lenders: An eligible lender GRRHP Lender Approval Application: not in default or delinquent on any
for the section 538 GRRHP as required Lenders whose responses are selected Federal debt or loan, or possesses an
by 7 CFR 3565.102 must be a licensed will be notified by the RHS to submit a outstanding finding of deficiency in a
business entity or Housing Finance request for GRRHP lender approval federal housing program, and (f)
Agency (HFA) in good standing in the application within 30 days of certification of the lender’s credit rating;
state or states where it conducts notification. Lenders who request and
business. Lender eligibility GRRHP approval must meet the (10) Documentation on bonding and
requirements are contained in 7 CFR standards in the 7 CFR 3565.102 and insurance.
3565.102. Below is a list of some of the 103. Lenders that have received GRRHP Additional Construction Lender
eligible lender criteria under 7 CFR lender approval in the past and are in Requirements
3565.102: good standing do not need to reapply for
(1) Licensed business entity that GRRHP lender approval. The Agency can guarantee the
meets the qualifications and has the Submission of Documentation For ‘‘permanent’’ portion or both the
approval of the Secretary of Housing GRRHP Lender Approval: All lenders ‘‘construction and permanent’’ portions
and Urban Development (HUD) to make that have not yet received GRRHP of a construction/permanent loan. The
multi-family housing loans that are lender approval must submit a complete Agency will not, however, guarantee
insured under the National Housing lender application to: Director, Multi- only the ‘‘construction’’ portion of a
Act. A complete list of HUD approved Family Housing Processing Division, construction/permanent loan.
lenders can be found on the HUD Web Rural Housing Service, U.S. Department A lender making a construction loan
site at http://www.hud.gov. of Agriculture, Room 1263, STOP 0781, must demonstrate an ability to originate
(2) A licensed business entity that 1400 Independence Avenue, SW., and service construction loans, in
meets the qualifications and has the Washington, DC 20250–0781. Lender addition to meeting the other
approval of the Ginnie Mae or Freddie applications must be identified as requirements of 7 CFR part 3565,
Mac or Fannie Mae corporations to ‘‘Section 538 Guaranteed Rural Rental subpart C. A lender who originates and
make multi-family housing loans that Housing Program’’ on the envelope. services construction/permanent loans
are sold to the same corporations. A As RHS does not have a formal must agree to manage the construction
complete list of Freddie Mac approved application form, a complete and draw activities in the manner
lenders can be found in Freddie Mac’s application consists of a cover letter described in Chapter 5 of HB–1–3565.
Web site at http://www.freddiemac.com. requesting GRRHP lender approval and Lenders must meet either the basic or
Fannie Mae approved lenders are found the following documentation: the demonstrated eligibility test in
at http://www.fanniemae.com. For a list (1) Request for GRRHP lender paragraphs 2.4 and 2.5 of HB–1–3565
of Ginnie Mae issuers, contact Ginnie approval on the lender’s letterhead; and the lender approval requirements
Mae at http://www.ginniemae.gov. (2) Lenders who are HUD, Ginnie set forth in paragraph 2.6 of HB–1–3565.
(3) A state or local HFA with a top- Mae, Freddie Mac or Fannie Mae multi- Lenders must clearly identify policies
tier rating from Moody’s or Standard & family approved lenders are required to and processes for multifamily
Poors, or member of the Federal Home show evidence of this status, such as a construction lending. Lenders must also
Loan Bank system, and the copy of a letter designating the provide a summary of their multifamily
demonstrated ability to underwrite, distinction; construction lending activity in the
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originate, process, close, service, (3) The lender’s Loan Origination, same form as specified in paragraph 2.5
manage, and dispose of multi-family Loan Servicing, and Portfolio of HB–1–3565. The Agency may, at its
housing loans in a prudent manner. Management Handbooks. These discretion, consider other types of
(4) Be a GRRHP approved lender, handbooks should detail the lender’s construction loans—such as those for
defined as an entity with a current policies and procedures on loan commercial development—as a

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Federal Register / Vol. 71, No. 18 / Friday, January 27, 2006 / Notices 4563

substitute for multifamily construction each loan it underwrites or contract (1) Lender certification—The lender
experience. these services to another capable entity. must certify that the lender will make a
Lender Responsibilities: Lenders will loan to the prospective borrower for the
Discussion of NOFA
be responsible for the full range of loan proposed project, under specified terms
origination, underwriting, management, Content of NOFA Responses: All and conditions subject to the issuance of
responses require lender information the GRRHP guarantee. Lender
servicing, compliance issues, and
and project specific data. Incomplete certification must be on the lender’s
property disposition activities
responses will not be considered for letterhead and signed by both the lender
associated with their projects. The funding. Lenders will be notified of and the prospective borrower.
lender will be expected to provide incomplete responses. Complete (2) Project specific data—The lender
guidance to the prospective borrower on responses are to include a signed cover must submit the project specific data
the RHS requirements during the letter from the lender on the lender’s below on the lender’s letterhead, signed
application phase. Once the guarantee is letterhead and the following by both the lender and the prospective
issued, the lender is expected to service information: borrower.

Lender Name Insert the lender’s name.

Lender Tax ID # Insert lender’s tax ID #.

Lender Contact Name Name of the lender contact for loan.

Mailing Address Lender’s complete mailing address.

Phone # Phone # for lender contact.

Fax # Insert lender’s fax #.

E-mail Address Insert lender contact e-mail address.

Borrower Name and Organization Type State whether borrower is a Limited Partnership, Corporation, In-
dian Tribe, etc.

Tax Classification Type State whether borrower is for profit, not for profit, etc.

Borrower Tax ID # Insert borrower’s tax ID #.

Borrower Address, including County Insert borrower’s address and county.

Borrower Phone # Insert borrower’s phone #.

Principal or Key Member for the Borrower Insert name and title.

Borrower Information and Statement of Housing Development Expe- Attach relevant information.
rience

New Construction, Acquisition With Rehabilitation, or the Revital- State whether the project is new construction or acquisition with re-
ization, Repair, and Transfer Cost of Existing Direct Section 515 habilitation. Transfer costs are subject to Agency approval and
Housing must be an eligible use of loan proceeds listed in 7 CFR 3565.205.

Project Location Town or City Town or city in which the project is located.

Project County County in which the project is located.


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Project State State in which the project is located.

Project Zip Code Insert zip code.

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4564 Federal Register / Vol. 71, No. 18 / Friday, January 27, 2006 / Notices

Project Congressional District Congressional District for project location.

Project Name Insert project name.

Project Type Family, senior (all residents 55 years or older), or mixed.

Property Description and Proposed Development Schedule Provide as an attachment.

Total Project Development Cost Enter amount for total project.

# of Units Insert the # of units in the project.

Ratio of 3–5 bedroom units to total units Insert percentage of 3–5 bedroom units to total units.

Cost Per Unit Total development cost divided by # of units.

Rent Proposed rent structure.

Median Income for Community Provide median income for the community.

Evidence of Site Control Attach relevant information.

Description of Any Environmental Issues Attach relevant information.

Loan Amount Insert the loan amount.

Interest Credit (IC) Is interest credit requested for this loan? (Yes or No)

Basis Points over the Long Term Monthly Applicable Federal Rate Lenders seeking interest credit must provide the maximum basis
points above the Long Term Monthly AFR that will be used to
calculate the interest rate. Priority points will only be given for
basis points equal to or less than 250 above the Long Term
Monthly AFR.

If Above Is Yes, Should Proposal Be Considered Under Non-Interest If Yes, proposal must show financial feasibility for Non-IC consider-
Credit Selection If Scoring Does Not Meet the Minimum Point ation.
Threshold of 55 Points for an Interest Credit Award?

Borrower’s Proposed Equity Insert amount.

Tax Credits Will the project be allocated tax credits? How much? What is the es-
timated value of the tax credits awarded?

Other Sources of Funds List all funding sources other than tax credits and amounts for each
source.

Loan to Total Development Cost Guaranteed loan divided by the total development costs of project.

Debt Coverage Ratio Net Operating Income divided by debt service payments.
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Percentage of Guarantee Percentage guarantee requested.

Collateral Attach relevant information.

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Federal Register / Vol. 71, No. 18 / Friday, January 27, 2006 / Notices 4565

Empowerment Zone (EZ) or Enterprise Community (EC), Colonia or Yes or No. Is the project in a recognized EZ or EC, Colonia or on an
Tribal Lands Indian Reservation?

Population Must be within the 20,000 population limit set for the program.

Is a Guarantee for Construction Being Requested? Are Advances State yes or no. The Agency can guarantee the ‘‘permanent’’ portion
Being Requested? or both the ‘‘construction and permanent’’ portions of a construc-
tion/permanent loan. The Agency will not, however, guarantee
only the ‘‘construction’’ portion of a construction/permanent loan.

Loan Term Up to a 40-year amortized loan. Balloon mortgages with a minimum


25-year term are eligible.

Scoring of Priority Criteria for Priority 1—Projects located in eligible development of projects in a Colonia or
Selection of Projects: All 2006 NOFA rural communities with the lowest in a place identified in the State’s
responses will be scored based on the populations will receive the highest Consolidated Plan or State Needs
criteria set forth below to establish their points. Assessment as a high need community
priority for obligation of funds. Per 7 for multi-family housing will receive
CFR 3565.5 (b), priority will be given to Population size Points points. The RHS will attribute 20 points
projects: in smaller rural communities, to projects that are developed in any of
in the most needy communities having 0–5,000 people ................................. 15 the locations described in this priority.
5,001–10,000 people ........................ 10
the highest percentage of leveraging, 10,001–15,000 people ...................... 5 Priority 5—The RHS will award
having the lowest interest rate, having 15,001–20,000 people ...................... 0 points to projects with the highest ratio
the highest ratio of 3–5 bedroom units of 3–5 bedroom units to total units as
to total units, or located in Priority 2—The most needy follows:
Empowerment Zones/Enterprise communities as determined by the
Communities or on tribal lands. In median income from the most recent Ratio of 3–5 bedroom units to total Points
addition, the Agency may, at its sole census data will receive points. The units
discretion, set aside assistance for or RHS will allocate points to projects
rank projects that meet important More than 50% ................................. 6
located in communities having the 21%–50% ......................................... 5
program goals. lowest median income. Points for Less than 21%–more than 0% ......... 1
In order to meet program goals, the median income will be awarded as
Agency will award additional points to follows:
Fiscal Year 2006 NOFA responses for Priority 6—RHS will award points for
the revitalization, repair, and transfer basis points above the long term
Median income Points monthly AFR used to calculate the
cost of existing direct Section 515 (dollars)
housing. interest rate. The score for basis points
Less than $35,000 ............................ 20 is as follows:
Prior to June 16, 2006, projects with $35,000–less than $45,000 .............. 15
an overall score of 25 points and a loan $45,000–less than $55,000 .............. 10 Basis points Points
to development cost ratio less than 70 $55,000–less than $65,000 .............. 5
percent will be processed and, when $65,000 or more ............................... 0 More than 250 basis points .............. ¥20
ready, obligated on a first-come-first- 200 to 250 basis points, inclusive .... 10
serve basis, provided funds are Priority 3—Projects that demonstrate 100 to 199 basis points, inclusive .... 15
available. Projects that score less than partnering and leveraging in order to 0 to 99 basis points, inclusive .......... 20
25 points, and projects that score 25 develop the maximum number of units
points or more and do not have a loan and promote partnerships with state and Priority 7—NOFA responses for the
to development cost ratio less than 70 local communities will also receive revitalization, repair, and transfer cost
percent, may be processed up to the points. Points will be awarded as of existing direct section 515 housing
point of obligation, but they will not be follows: (transfer costs are subject to Agency
obligated until after June 16, 2006. Each approval and must be an eligible use of
month after June 16, 2006, the Agency Points loan proceeds listed in 7 CFR 3565.205)
Loan to total development cost ratio
will select the highest scoring proposals, (percentage %) will receive an additional 20 points.
in light of the remaining funding, until Notifications: Responses will be
90–100 .............................................. 0
all funds are expended. A notice will be Less than 90–70 ............................... 15 reviewed for completeness and
placed in the Federal Register when all Less than 70–50 ............................... 20 eligibility. The RHS will notify those
funds are committed for FY 2006. Less than 50 ..................................... 30 lenders whose responses are selected
Subject to available funding, all via letter. The RHS will request lenders
projects scoring 55 points or more on Priority 4—The development of without GRRHP lender approval to
the seven priority criteria below, and projects on Tribal Lands, or in an apply for GRRHP lender approval
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that request and demonstrate a need for Empowerment Zone or Enterprise within 30 days upon receipt of
an interest credit subsidy, will receive Community will receive points. The notification of selection. For
interest credit awards. RHS will attribute 20 points to projects information regarding GRRHP lender
The seven priority criteria for projects that are developed in any of the approval, please refer to the section
are listed below. locations described in this priority. The entitled ‘‘SUBMISSION OF

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4566 Federal Register / Vol. 71, No. 18 / Friday, January 27, 2006 / Notices

DOCUMENTATION FOR GRRHP the closing of the lender’s loan. The deadline for the submission of a
LENDER APPROVAL’’ in this NOFA. Selection and scoring criteria that the complete application and application
Lenders will also be invited to submit project must meet to receive interest fee is 90 days from the date of
a complete application and the required credit will be published in the NOFA. notification of response selection. If the
application fee of $2,500 to the Rural (c) Estimated development budget application and fee are not received by
Development State Office where the (total and cost/unit) and the proposed the appropriate State Office within 90
project is located. sources and uses of funds. This days from the date of notification, the
Submission of GRRHP Applications: information should include all proposed selection is subject to cancellation,
Notification letters will instruct lenders financing sources—the amount, type, thereby allowing another response that
to contact the Rural Development State rates and terms of loans, tax credits, or is ready to proceed with processing to
Office immediately following grant funds. Letters of application and be selected.
notification of selection to schedule commitment letters should be included, Obligation of Program Funds: The
required agency reviews. if available. RHS will only obligate funds to projects
Rural Development State Office staff (d) Estimated loan-to-development that meet the requirements for
will work with lenders in the cost ratio for the guaranteed loan. obligation, including undergoing a
development of an application package. (e) Proposed Agency guarantee satisfactory environmental review in
In response to the NOFA, lenders must percentage for guaranteed loan (under accordance with the National
submit a NOFA response to the office no condition can the percentage exceed Environmental Protection Act (NEPA)
address identified in the NOFA for the 90 percent of the loan amount). and lenders who have submitted the
scoring and ranking of a proposed (f) Collateral—all security, in addition $2,500 application fee and completed
GRRHP project. The lender must to the real property, proposed to secure Form RD 3565–1 for the selected
provide the requested information the loan. project.
concerning the project, to establish the Conditional Commitment: Once
(3) The Proposed Borrower required documents for obligation and
purpose of the proposed project, its
location, and how it meets the (a) The name of the borrower and the the application fee are received and all
established priorities for funding. The type of ownership entity. List the NEPA requirements have been met, the
Agency will determine the highest general partners if a limited partnership, Rural Development State Office will
ranked responses based on priority officers if a corporation or members of issue a conditional commitment, which
criteria and a threshold score. an Limited Liability Corporation. stipulates the conditions that must be
NOFA responses will at least include (b) Borrower’s contact name, mailing fulfilled before the issuance of a
the following [but the Agency, at its sole address, phone and fax numbers, and e- guarantee, in accordance with 7 CFR
discretion, may request additional mail address. 3565.303.
information]: (c) Evidence that the borrower or Issuance of Guarantee: The RHS State
principals of the ownership are not Office will issue a guarantee to the
(1) The Project barred from participating in Federal lender for a project in accordance with
(a) A brief description of the proposed housing programs and are not 7 CFR 3565.303. No guarantee can be
location of the project, including town, delinquent on any Federal debt. issued without a complete application,
county, state, and congressional district. (d) Borrower’s unaudited or audited review of appropriate certifications,
(b) A description of the property and financial statements. satisfactory assessment of the
improvements, including lot size, (e) Statement of borrower’s housing appropriate level of environmental
number of units, building type, type of development experience. review, and the completion of any
construction, etc., including preliminary conditional requirements.
(4) Lender Eligibility and Approval
drawings, if available. Status Dated: January 18, 2006.
(c) The proposed development David J. Villano,
schedule. Evidence that the lender is either an Acting Administrator, Rural Housing Service.
(d) Total project development cost. approved lender for the purposes of the
[FR Doc. E6–1054 Filed 1–26–06; 8:45 am]
(e) The proposed rent structure and GRRHP or that the lender is eligible to
BILLING CODE 3410–XV–P
area median income (HUD published apply for approved lender status. The
area median incomes can be found lender’s application for approved lender
online at http://www.huduser.org). status can be submitted with the NOFA
(f) Evidence of site control by the response but must be submitted to the COMMITTEE FOR PURCHASE FROM
proposed borrower or a purchase National Office within 45 calendar days PEOPLE WHO ARE BLIND OR
option. of the lender’s receipt of the ‘‘notice to SEVERELY DISABLED
(g) Description of any environmental proceed with application processing’’
Procurement List; Proposed Additions
issues that may affect the project. letter.
and Deletion
(h) Amount of loan to be guaranteed.
(i) Type of project (e.g. elderly or (5) Competitive Criteria
AGENCY: Committee for Purchase from
family). Information that shows how the People Who Are Blind or Severely
proposal is responsive to the selection Disabled.
(2) The Proposed Financing criteria specified in the NOFA. ACTION: Proposed additions to and
(a) Proposed loan amount and the deletions from Procurement List.
proposed borrower’s equity. (6) Lender Certification
(b) Proposed use of interest credit—If A commitment letter signed by the SUMMARY: The Committee is proposing
the lender proposes to use interest lender, on the lender’s letterhead, to add to the Procurement List products
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credit, this section should include the indicating that the lender will make a and services to be furnished by
maximum basis points the lender will loan to the borrower for the proposed nonprofit agencies employing persons
charge the borrower for the project. The project, under specified terms and who are blind or have other severe
interest rate may not be lower than the conditions subject only to the issuance disabilities, and to delete a product
published Long Term Monthly AFR at of a guarantee by the Agency. previously furnished by such agencies.

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