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Rules and Regulations
Federal Register Vol. 86, No. 150
Monday, August 9, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

DEPARTMENT OF AGRICULTURE
Farm Service Agency 7 CFR Parts 761, 762, 764, 765, 766, and 769
Docket ID FSA20210002
RIN 0560AI44

Heirs Property Relending Program HPRP, Improving Farm Loan Program Delivery, and Streamlining Oversight Activities Farm Service Agency, USDA.
Final rule.

AGENCY:
ACTION:

The Farm Service Agency FSA is implementing a new Heirs Property Relending Program HPRP
authorized in the Agricultural Improvement Act of 2018 the 2018
Farm Bill. HPRP provides loans to eligible entities to relend with the purpose of assisting heirs with undivided ownership interests resolve ownership and succession issues on farms that are owned in common by multiple heirs. The loan funds may be used by an ultimate recipient to purchase and consolidate fractional interests held by other heirs in jointlyowned property to pay for costs and fees associated with developing and implementing a succession plan, and to pay for costs associated with buying out fractional interests held in tenancy in common by other heirs in jointly-owned property to clear the title for example closing costs, appraisals, title searches, surveys, preparing documents, mediation, and legal services. FSA is also amending the Farm Loan Programs FLP regulations to revise its rules related to loan making and servicing to improve program delivery and consolidate value-added oversight activities.

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SUMMARY:

DATES:

Effective date: August 9, 2021.

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Comment due date: We will consider comments that we receive by October 8, 2021.
ADDRESSES: We invite you to submit comments on the rule. You may submit comments by either of the following methods, although FSA prefers that you submit comments electronically through the Federal eRulemaking Portal:
Federal Rulemaking Portal: http
www.regulations.gov and search for Docket ID FSA20210002. Follow the instructions for submitting comments.
Mail: Md Mutaleb, Senior Loan Officer, Loan Making Division, Deputy Administrator for Farm Loan Programs, FSA, U.S. Department of Agriculture, 1400 Independence Avenue SW, Stop 0522, Washington, DC 202500522. In your comment, specify Docket ID FSA
20210002.
Comments will be available online at http www.regulations.gov. A copy of this rule is available through the FSA
home page at http www.fsa.usda.gov/.
FOR FURTHER INFORMATION CONTACT: Md Mutaleb; Telephone; telephone: 202
7203168; email: md.mutaleb@
usda.gov. Persons with disabilities or who require alternative means for communication should contact the USDA Target Center at 202 7202600
voice.
SUPPLEMENTARY INFORMATION:
Background of HPRP
FSA is implementing HPRP as authorized in section 5104 of the 2018
Farm Bill Pub. L. 115334, codified in 7 U.S.C. 1936c. FSA will loan funds to eligible entities, including cooperatives, credit unions, and nonprofit organizations certified to operate as a lender, to serve as intermediaries that will relend the funds to individuals and entities for purposes that assist heirs with undivided ownership interests to resolve ownership and succession issues on a farm that has multiple owners commonly referred to as Heirs Property.
In developing HPRP, FSA relied heavily on the design of Rural Developments RD relending programs, which have a long history of success, including the Intermediary Relending Program IRP found in 7 CFR part 4274.
FSA considers the IRP to be a successful relending program and a good model for achieving the goals of HPRP. In developing HPRP, FSA relied on RDs rules, forms, and framework as a model
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for establishing a relending program, while adapting provisions to ensure they were workable for HPRPs intermediaries and ultimate recipients.
FSA considers heirs property to be land that has been passed down to subsequent generations via intestate succession that is, without a will or via a will that divides real estate assets equally among all heirs. When a landowner dies without a last will and testament or estate plan, state law determines which heirs or classes of family members inherit the land of the deceased, and the ownership share for each heir.
This form of property ownership results in the land being owned in common by all heirs-at-law, each of which owns a fractional interest in the land. As a result, the absence of clear title prevents the owners who farm the land and pay real estate taxes from gaining access to the legal, financial, and managerial transactions needed to effectively manage the land.
FSA is amending 7 CFR part 769 to designate the regulations for the Highly Fractionated Indian Land Loan Program as subpart A, and to add subpart B to specify the requirements for HPRP.
FSA is adding definitions for the terms Heirs Property, HPRP Loan Agreement, HPRP Loan Funds, HPRP Revolving Loan Fund, Intermediary, Revolved Funds, Succession Plan, Ultimate Recipient, and Undivided Ownership Interest relating to HPRP to 7 CFR
761.2.
This rule implements HPRP in order to provide a way for heirs to obtain assistance resolving property issues through intermediaries.
Administrative and National Policy Requirements Intermediaries will request demographics data from ultimate recipients on race, sex gender, and ethnicity national origin. The response to the data request will be voluntary.
Intermediaries will maintain the data when voluntarily submitted to them by the ultimate recipients. Race and ethnicity data will be collected in accordance with the OMB notice published in the Federal Register on October 30, 1997 62 FR 5878258790, Revisions to the Standards for the Classification of Federal Data on Race and Ethnicity and Title VI of the Civil Rights Act of 1964 42 U.S.C. 2000d1

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