Federal Register - February 2, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 20 / Tuesday, February 2, 2021 / Notices counties for each individual fiscal year that this Notice is open. Persistent poverty counties are areas where at least 20 percent of the population is living in poverty over the last 30 years measured by the 1980, 1990, 2000 and 2010
decennial censuses and 20072011
American Community Survey five-year estimates according to the American Community Survey census tract data.
Information on which counties are considered persistent poverty counties can be found through the USDA
Economic Research Service ERS
http ers.usda.gov/. ERS is the main source of economic information and research for USDA and a principal Agency of the U.S. Federal Statistical System located in Washington, DC. Setaside funds will be awarded in the order of receipt of pre-applications. Once the set-aside funds are exhausted for each individual fiscal year that this Notice is open, any further set-aside applications will be evaluated and ranked with the other applications submitted in response to this Notice. If, after the preapplications are reviewed, RHS does not receive enough eligible applications to fully utilize the 10 percent set-aside in the service of these areas in each individual fiscal year that this Notice is open, RHS will award any unused setaside funds to other eligible applicants.
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Overview Federal Agency: Rural Housing Service.
Funding Opportunity Title: Notice of Solicitation of Applications for Section 514 Off-Farm Labor Housing Loans and Section 516 and Off-Farm Labor Housing Grants for New Construction for Fiscal Year 2021.
Announcement Type: Solicitation of applications from qualified applicants for Fiscal Year 2021.
Catalog of Federal Domestic Assistance Numbers CFDA: 10.405 and 10.427.
A. Federal Award Description Pre-applications will only be accepted through the dates and times listed in this Notice. All awards are subject to the availability of funding. The maximum award per selected project may not exceed $5 million total loan and grant.
A state will not receive more than 30
percent of the Off-FLH funding for each fiscal year that this Notice is open, unless there are remaining Section 514
and Section 516 funds after all eligible applications Nationwide have been funded. In this case, funds will be awarded to the next highest-ranking eligible applications among all of the remaining unfunded applications within the applicable application round.
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The allocation of these funds may result in a state or states exceeding the 30
percent limitation.
Section 516 Off-FLH grants may not exceed 90 percent of the total development cost TDC of the housing.
TDC is defined in 7 CFR 3560.11.
Section 514 Off-FLH loans may not exceed the limits set forth in 7 CFR
3560.562b.
If leveraged funds are going to be used and are in the form of Low-Income Housing Tax Credits LIHTC, the applicant must include in the preapplication, written evidence that a LIHTC application has been submitted and accepted by the Housing Finance Agency HFA. Applicants without written evidence that a tax credit application has been submitted and accepted by an HFA must certify in writing within the pre-application that they will apply for tax credits to an HFA, obtain a firm commitment letter, and include the commitment letter within their final application submission, if available. The firm commitment letter from the HFA must be submitted prior to the approval of the final application. If the applicant is unable to secure a firm commitment letter from the HFA in order to submit it to RHS by September 30th of the relevant fiscal year, the application will be deemed incomplete and the applicant will be notified in writing that the application will not be considered for funding.
Pre-applications that propose the use of other forms of leveraged funds must submit firm commitment letters within their final application, if available. If the applicant is unable to secure a firm commitment letter from the funding source in order to submit it by September 30th of the relevant fiscal year, the application will be deemed incomplete and the applicant will be notified in writing that the application will not be considered for funding.
A firm commitment letter is defined as a lenders unqualified pledge to the borrower that they have passed their underwriting guidelines and they are willing to offer the borrower a loan and/
or grant under specified terms. The letter validates that the borrowers financing has been fully approved and that the lender is prepared to close the transaction. Preliminary commitment letters, term sheets, or any other letter from the lender that does not meet the definition above will not be considered a firm commitment letter and will not meet the requirements specified in this Notice.
Rental Assistance RA and Operating Assistance OA will be available for this Notice. OA is described in 7 CFR
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3560.574 and may be used in lieu of tenant-specific RA in Off-FLH projects financed under Section 514 or Section 516i of the Housing Act of 1949
U.S.C. 1486i as amended 42 U.S.C.
1484 and 1486h respectively, that serve migrant farmworkers as defined in 7 CFR 3560.11.
In order to maximize the use of the limited supply of FLH funds, RHS may contact eligible applicants selected for an award in point score order starting with the highest score, with proposals to modify the transactions proportions of loan and grant funds for each individual fiscal year that this Notice is open. In addition, if funds remain after the highest scoring eligible applications are selected for awards, we may contact those eligible applicants selected for the awards, in point score order, starting with the highest score, to ascertain whether those respondents will accept the remaining funds for each individual fiscal year that this Notice is open.
In order to enhance customer service and the transparency of this program, RHS will publish a list of awardees, the loan and/or grant amounts of their respective awards, the self-score provided by the applicant, and the final score as computed by RHS in accordance with the dates listed in this Notice. This will be done for each funding round. This information can be found at: https www.rd.usda.gov/
programs-services/farm-labor-housingdirect-loans-grants. RHS reserves the right to post all information submitted as part of the pre-application and final application package, which is not protected under the Privacy Act, on a public website with free and open access to any member of the public.
B. Eligibility Information 1. Eligibility Housing Eligibilityhousing that is constructed with FLH loans and/or grant funds must meet RHSs design and construction standards contained in 7
CFR part 1924, subparts A and C. Once constructed, Off-FLH must be managed in accordance with 7 CFR part 3560. In addition, Off-FLH must be operated on a non-profit basis and tenancy must be open to all qualified domestic farm laborers, regardless of which farm they work. Section 514f3 of the Housing Act of 1949, as amended 42 U.S.C.
1484f3 defines domestic farm laborers to include any person regardless of the persons source of employment, who receives a substantial portion of his/her income from the primary production of agricultural or aqua cultural commodities in the
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