81 FR 13311 - Notice of Solicitation of Applications for Loan Guarantees Under the Section 538 Guaranteed Rural Rental Housing Program for Fiscal Year 2016

DEPARTMENT OF AGRICULTURE
Rural Housing Service

Federal Register Volume 81, Issue 49 (March 14, 2016)

The Rural Housing Service (RHS), an agency within Rural Development, announces that it is soliciting competitive applications under its Section 538 Guaranteed Rural Rental Housing Program (GRRHP) pursuant to 7 CFR 3565.4 for Fiscal Year (FY) 2016. The Consolidated Appropriations Act, 2016, Public Law 114-113 (December 18, 2015) appropriated $150 million for FY 2016. The commitment of program dollars will be made first to approved and complete applications from prior years' notices, then to applicants of selected responses in the order they are ranked under this Notice that have fulfilled the necessary requirements for obligation. Successful applications will be selected by the Agency for funding and subsequently awarded to the extent that funding may ultimately be made available to the Agency through appropriations. Expenses incurred in developing applications will be at the applicant's risk. The following paragraphs outline the timeframes, eligibility requirements, lender responsibilities, and the overall response and application processes. Eligible lenders are invited to submit responses for new construction and acquisition with rehabilitation of affordable rural rental housing. The Agency will review responses submitted by eligible lenders, on the lender's letterhead, and signed by both the prospective borrower and lender. Although a complete application is not required in response to this Notice, eligible lenders may submit a complete application concurrently with the response. Submitting a complete application will not have any effect on the respondent's response score.

[Federal Register Volume 81, Number 49 (Monday, March 14, 2016)]
[Notices]
[Pages 13311-13317]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-05610]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of Solicitation of Applications for Loan Guarantees Under 
the Section 538 Guaranteed Rural Rental Housing Program for Fiscal Year 
2016

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Rural Housing Service (RHS), an agency within Rural 
Development, announces that it is soliciting competitive applications 
under its Section 538 Guaranteed Rural Rental Housing Program (GRRHP) 
pursuant to 7 CFR 3565.4 for Fiscal Year (FY) 2016. The Consolidated 
Appropriations Act, 2016, Public Law 114-113 (December 18, 2015) 
appropriated $150 million for FY 2016. The commitment of program 
dollars will be made first to approved and complete applications from 
prior years' notices, then to applicants of selected responses in the 
order they are ranked under this Notice that have fulfilled the 
necessary requirements for obligation. Successful applications will be 
selected by the Agency for funding and subsequently awarded to the 
extent that funding may ultimately be made available to the Agency 
through appropriations.
    Expenses incurred in developing applications will be at the 
applicant's risk. The following paragraphs outline the timeframes, 
eligibility requirements, lender responsibilities, and the overall 
response and application processes.
    Eligible lenders are invited to submit responses for new 
construction and acquisition with rehabilitation of affordable rural 
rental housing. The Agency will review responses submitted by eligible 
lenders, on the lender's letterhead, and signed by both the prospective 
borrower and lender. Although a complete application is not required in 
response to this Notice, eligible lenders may submit a complete 
application concurrently with the response. Submitting a complete 
application will not have any effect on the respondent's response 
score.

DATES: Eligible responses to this Notice will be accepted until 
December 31, 2017, 12:00 p.m. Eastern Time. Selected

[[Page 13312]]

responses that develop into complete applications and meet all Federal 
eligibility requirements prior to September 30, 2016, will receive 
conditional commitments until all FY 2016 funds are expended. Selected 
responses to this Notice that are deemed eligible for further 
processing after September 30, 2016, will be funded to the extent an 
appropriations act provides sufficient funding in the fiscal year the 
response is selected. Responses are subject to the fee structure in 
effect in the fiscal year they are selected for funding, for example, a 
response that receives a Notice to Proceed Letter in FY 2015 will be 
subject to all fees in effect in FY 2015.
    Eligible lenders mailing a response or application must provide 
sufficient time to permit delivery to the appropriate submission 
address below on or before the closing deadline date and time. 
Acceptance by a U.S. Post Office or private mailer does not constitute 
delivery. Postage due responses and applications will not be accepted.
    Submission Address: Eligible lenders will send responses to the 
Multi-Family Housing Program Director of the State Office where the 
project will be located. USDA Rural Development State Offices, their 
addresses, and telephone numbers, may be found at http://www.rd.usda.gov/contact-us/state-offices.

    Note: Telephone numbers listed there are not toll-free.


FOR FURTHER INFORMATION CONTACT: Tammy Daniels, Financial and Loan 
Analyst, USDA Rural Development Guaranteed Rural Rental Housing 
Program, Multi-Family Housing Guaranteed Loan Division, U.S. Department 
of Agriculture, South Agriculture Building, Room 1263-S, STOP 0781, 
1400 Independence Avenue SW., Washington, DC 20250-0781 or email: 
[email protected]. Telephone: (202) 720-0021. This number is 
not toll-free. Hearing or speech-impaired persons may access that 
number by calling the Federal Information Relay Service toll-free at 
(800) 877-8339.

Overview

Federal Agency: Rural Housing Service
Solicitation Opportunity Title: Guaranteed Multi-Family Housing Loans
Announcement Type: Initial Solicitation Announcement

Catalog of Federal Domestic Assistance: 10.438

Dates: Response Deadline: December 31, 2017, 12:00 p.m. Eastern Time

I. Funding Opportunity Description

    The GRRHP is authorized by Section 538 of the Housing Act of 1949, 
as amended (42 U.S.C. 1490p-2) and operates under 7 CFR part 3565. The 
purpose of the GRRHP is to increase the supply of affordable rural 
rental housing through the use of loan guarantees that encourage 
partnerships between the Agency, private lenders, and public agencies.
    Eligibility of Prior Year Selected Responses: Prior fiscal year 
response selections that did not develop into complete applications 
within the time constraints stipulated by the corresponding State 
Office have been cancelled. Applicants have been notified of the 
cancellation by the State Office. A new response for the project may be 
submitted subject to the conditions of this Notice.
    Prior years' responses that were selected by the Agency, with a 
complete application submitted by the lender within 90 days from the 
date of notification of response selection (unless an extension was 
granted by the Agency), will be eligible for FY 2016 program dollars 
without having to complete a FY 2016 response. A complete application 
includes all Federal environmental documents required by 7 CFR part 
1940, subpart G, and a Form RD 3565-1, ``Application for Loan and 
Guarantee.'' Any approved applications originating from FY 2015 and 
previous fiscal years (outstanding prior years approved applications) 
that are obligated between January 2, 2016, and December 31, 2017, 
however, are subject to the fees in the ``PROGRAM FEES'' section in 
this Notice. Outstanding prior years approved applications will be 
obligated to the extent of available funding in order of priority score 
with the highest scores obligated first. The scores the applications 
received under the Notice the year the application was submitted will 
be used for the ranking. In the case of tied scores, the project with 
the greatest leveraging (lowest loan to cost ratio) will receive 
selection priority. Once the outstanding prior years approved 
applications have been funded, the Agency will select FY 2016 responses 
for further processing in rank order as determined by the scoring 
criteria set forth in this Notice to the extent that funds remain 
available.

II. Award Information

    Anyone interested in submitting an application for funding under 
this program is encouraged to consult the Rural Development Web site 
http://www.rd.usda.gov/programs-services/multi-family-housing-loan-guarantees periodically for updated information regarding the status of 
funding authorized for this program.
    Qualifying Properties: Qualifying properties include new 
construction for multi-family housing units and the acquisition of 
existing structures with a minimum per unit rehabilitation expenditure 
requirement in accordance with 7 CFR 3565.252. The Agency does not 
finance acquisition only deals.
    Also eligible is the revitalization, repair, and transfer (as 
stipulated in 7 CFR 3560.406) of existing direct Section 515 housing 
and Section 514/516 Farm Labor Housing (FLH) (transfer costs are 
subject to Agency approval and must be an eligible use of loan proceeds 
as listed in 7 CFR 3565.205), and properties involved in the Agency's 
Multifamily Preservation and Revitalization (MPR) program. Equity 
payment, as stipulated in 7 CFR 3560.406, in the transfer of existing 
direct Section 515 and Section 514/516 FLH, is an eligible use of 
guaranteed loan proceeds. In order to be considered, the transfer of 
Section 515 and Section 514/516 FLH and MPR projects must need repairs 
and undergo revitalization of a minimum of $6,500 per unit.
    Eligible Financing Sources: Any form of Federal, State, and 
conventional sources of financing can be used in conjunction with the 
loan guarantee, including Home Investment Partnerships Program (HOME) 
grant funds, tax exempt bonds, and Low Income Housing Tax Credits 
(LIHTC).
    Types of Guarantees: The Agency offers three types of guarantees 
which are set forth at 7 CFR 3565.52(c). The Agency's liability under 
any guarantee will decrease or increase, in proportion to any decrease 
or increase in the amount of the unpaid portion of the loan, up to the 
maximum amount specified in the Loan Note Guarantee. Penalties incurred 
as a result of default are not covered by any of the program's 
guarantees. The Agency may provide a lesser guarantee based upon its 
evaluation of the credit quality of the loan.
    Energy Conservation: All new multi-family housing projects financed 
in whole or in part by the USDA, are encouraged to engage in 
sustainable building development that emphasizes energy-efficiency and 
conservation. In order to assist in the achievement of this goal, any 
GRRHP project that participates in one or all of the programs included 
in priority 7 under the ``Scoring of Priority Criteria for Selection of 
Projects'' section of this Notice may receive a maximum of 25 
additional points added to their project

[[Page 13313]]

score. Participation in these nationwide initiatives is voluntary, but 
strongly encouraged.
    Interest Credit: There will be no interest credit.
    Program Fees: The Consolidated Appropriations Act, 2016, Public Law 
114-113 (December 18, 2015) continued the provision ``That to support 
the loan program level for Section 538 guaranteed loans made available 
under this heading the Secretary may charge or adjust any fees to cover 
the projected cost of such loan guarantees pursuant to the provisions 
of the Credit Reform Act of 1990 (2 U.S.C. 661 et seq), and the 
interest on such loans may not be subsidized.'' The following fees have 
been determined necessary to cover the projected cost of such loan 
guarantees. These fees may be adjusted in future years to cover the 
projected costs of loan guarantees in those future years or additional 
fees may be charged. These fees are also applicable to all outstanding 
prior years' responses funded with funds under this NOSA. The fees are 
as follows:
    1. Initial guarantee fee. The Agency will charge an initial 
guarantee fee equal to 1 percent of the guarantee principal amount. For 
purposes of calculating this fee, the guarantee amount is the product 
of the percentage of the guarantee times the initial principal amount 
of the guaranteed loan.
    2. Annual guarantee fee. An annual guarantee fee of 50 basis points 
(1/2 percent) of the outstanding principal amount of the loan as of 
December 31 will be charged each year or portion of a year that the 
guarantee is outstanding.
    3. As permitted under 7 CFR 3565.302(b)(5), there is a non-
refundable service fee of $1,500 for the review and approval of a 
lender's first request to extend the term of a guarantee commitment 
beyond its original expiration (the request must be received by the 
Agency prior to the commitment's expiration). For any subsequent 
extension request, the fee will be $2,500.
    4. As permitted under 7 CFR 3565.302(b)(5), there is a non-
refundable service fee of $3,500 for the review and approval of a 
lender's first request to reopen an application when a commitment has 
expired. For any subsequent extension request to reopen an application 
after the commitment has expired, the fee will be $3,500.
    5. As permitted under 7 CFR 3565.302(b)(4), there is a non-
refundable service fee of $1,500 in connection with a lender's request 
to approve the transfer of property or a change in composition of the 
ownership entity.
    6. There is no application fee.
    7. There is no lender application fee for lender approval.
    8. There is no surcharge for the guarantee of construction 
advances.

III. Eligibility Information

    Eligible Lenders: An eligible lender for the Section 538 GRRHP as 
required by 7 CFR 3565.102 must be a licensed business entity or 
Housing Finance Agency (HFA) in good standing in the State or States 
where it conducts business. Lender eligibility requirements are 
contained in 7 CFR 3565.102. Please review that section for a complete 
list of all of the criteria. The Agency will only accept responses from 
GRRHP eligible or approved lenders as described in 7 CFR 3565.102 and 
3565.103 respectively.
    Lenders whose responses are selected will be notified by the Agency 
to submit a request for GRRHP lender approval within 30 days of 
notification. Lenders who request GRRHP approval must meet the 
standards in 7 CFR 3565.103.
    Lenders that have received GRRHP lender approval that remain in 
good standing in accordance with 7 CFR 3565.105, do not need to reapply 
for GRRHP lender approval. A lender making a construction loan must 
demonstrate an ability to originate and service construction loans, in 
addition to meeting the other requirements of 7 CFR part 3565, subpart 
C.
    Submission of Documentation for GRRHP Lender Approval: All lenders 
that have not yet received GRRHP lender approval must submit a complete 
lender application to: Director, Multi-Family Housing Guaranteed Loan 
Division, Rural Development, U.S. Department of Agriculture, Room 1263-
S, STOP 0781, 1400 Independence Avenue SW, Washington, DC 20250-0781. 
Lender applications must be identified as ``Lender Application--Section 
538 Guaranteed Rural Rental Housing Program'' on the envelope.

IV. Application and Submission Information

    Responses to this NOSA can be submitted either electronically using 
the Section 538 electronic response form found at: http://www.rd.usda.gov/programs-services/multi-family-housing-loan-guarantees 
or in hard copy and submitted to the appropriate Rural Development 
State Office where the project will be located. USDA Rural Development 
State Offices, their addresses, and telephone numbers may be found at 
http://www.rd.usda.gov/contact-us/state-offices. Note: Telephone 
numbers listed are not toll-free. Applicants are strongly encouraged, 
but not required, to submit the NOSA response electronically.
    The electronic form contains a button labeled ``Send Form.'' By 
clicking on the button, the applicant will see an email message window 
with an attachment that includes the electronic form the applicant 
filled out as a data file with an .fdf extension. In addition, an auto-
reply acknowledgement will be sent to the applicant when the electronic 
NOSA Response form is received by the Agency unless the sender has 
software that will block the receipt of the auto-reply email. The State 
Office will record NOSA responses received electronically by the actual 
date and time when all attachments are received at the State Office.
    Submission of the electronic Section 538 NOSA response form does 
not constitute submission of the entire application package which 
requires additional forms and supporting documentation.
    Content of Responses: All responses require lender information and 
project specific data as set out in this Notice. Incomplete responses 
will not be considered for funding. Lenders will be notified of 
incomplete responses no later than 30 calendar days from the date of 
receipt of the response by the Agency. Complete responses are to 
include a signed cover letter from the lender, on the lender's 
letterhead. The lender must provide the requested information 
concerning the project, to establish the purpose of the proposed 
project, its location, and how it meets the established priorities for 
funding. The Agency will determine the highest ranked responses based 
on priority criteria and a threshold score.
    (1) Lender Certification: The lender must certify that the lender 
will make a loan to the prospective borrower for the proposed project, 
under specified terms and conditions subject to the issuance of the 
GRRHP guarantee. Lender certification must be on the lender's 
letterhead and signed by both the lender and the prospective borrower.
    (2) Project Specific Data: The lender must submit the project 
specific data below on the lender's letterhead, signed by both the 
lender and the prospective borrower:

[[Page 13314]]



------------------------------------------------------------------------
                                             Information that must be
              Data element                           included
------------------------------------------------------------------------
Lender Name............................  Insert the lender's name.
Lender Tax ID #........................  Insert lender's tax ID number.
Lender Contact Name....................  Name of the lender contact for
                                          loan.
Mailing Address........................  Lender's complete mailing
                                          address.
Phone #................................  Phone number for lender
                                          contact.
Fax #..................................  Insert lender's fax number.
E-mail Address.........................  Insert lender contact e-mail
                                          address.
Borrower Name and Organization Type....  State whether borrower is a
                                          Limited Partnership,
                                          Corporation, Indian Tribe,
                                          etc.
Equal Opportunity Survey...............  Optional Completion.
Tax Classification Type................  State whether borrower is for
                                          profit, not for profit, etc.
Borrower Tax ID #......................  Insert borrower's tax ID
                                          number.
Borrower DUNS#.........................  Insert DUNS number.
Borrower Address, including County.....  Insert borrower's address and
                                          county.
Borrower Phone #, fax # and e-mail       Insert borrower's phone number,
 address.                                 fax number and e-mail address.
Principal or Key Member for the          Insert name and title. List the
 Borrower.                                general partners if a limited
                                          partnership, officers if a
                                          corporation or members of a
                                          Limited Liability Corporation.
Borrower Information and Statement of    Attach relevant information.
 Housing Development Experience.
New Construction, Acquisition With       State whether the project is
 Rehabilitation.                          new construction or
                                          acquisition with
                                          rehabilitation.
Revitalization, Repair, and Transfer     Yes or No (Transfer costs,
 (as stipulated in 7 CFR 3560.406) of     including equity payments, are
 Existing Direct Section 515 and          subject to Agency approval and
 Section 514/516 FLH or MPR.              must be an eligible use of
                                          loan proceeds 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.
Project State..........................  State in which the project is
                                          located.
Project Zip Code.......................  Insert Zip Code where the
                                          project is located.
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        Provide as an attachment.
 Development Schedule.
Total Project Development Cost.........  Enter amount for total project.
# of Units.............................  Insert the number of units in
                                          the project.
Ratio of 3-5 bedroom units to total      Insert percentage of 3-5
 units.                                   bedroom units to total units.
Cost Per Unit..........................  Total development cost divided
                                          by number 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.
Borrower's Proposed Equity.............  Insert amount and source.
Tax Credits............................  Have tax credits been awarded?
                                         If tax credits were awarded,
                                          submit a copy of the award/
                                          evidence of award with your
                                          response.
                                         If not, when do you anticipate
                                          an award will be made
                                          (announced)?
                                         What is the [estimated] value
                                          of the tax credits?
                                         Letters of application and
                                          commitment letters should be
                                          included, if available.
Other Sources of Funds.................  List all funding sources other
                                          than tax credits and amounts
                                          for each source, type, rates
                                          and terms of loans or grant
                                          funds.
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.
Percentage of Guarantee................  Percentage guarantee requested.
Collateral.............................  Attach relevant information.
Colonia, Tribal Lands, or State's        Colonia, on an Indian
 Consolidated Plan or State Needs         Reservation, or in a place
 Assessment.                              identified in the State's
                                          Consolidated Plan or State
                                          Needs Assessment as a high
                                          need community for multi-
                                          family housing.
Is the Property Located in a Federally   If yes, please provide
 Declared Disaster Area?.                 documentation (i.e.,
                                          Presidential Declaration
                                          document).
Population.............................  Provide the population of the
                                          county, city, or town where
                                          the project is or will be
                                          located.
What type of guarantee is being          Enter the type of guarantee.
 requested, Permanent only (Option 1),
 Construction and Permanent (Option 2)
 or Continuous (Option 3).
Loan Term..............................  Minimum 25-year term.
                                         Maximum 40-year term (includes
                                          construction period).
                                         May amortize up to 40 years.
                                         Balloon mortgages permitted
                                          after the 25th year.
Participation in Energy Efficient        Initial checklist indicating
 Programs.                                prerequisites to register for
                                          participation in a particular
                                          energy efficient program. All
                                          checklists must be accompanied
                                          by a signed affidavit by the
                                          project architect stating that
                                          the goals are achievable. If
                                          property management is
                                          certified for green property
                                          management, the certification
                                          must be provided.
------------------------------------------------------------------------


[[Page 13315]]

    (3) The Proposed Borrower Information:
    (a) Lender certification that the borrower or principals of the 
owner are not barred from participating in Federal housing programs and 
are not delinquent on any Federal debt.
    (b) Borrower's unaudited or audited financial statements.
    (c) Statement of borrower's housing development experience.
    (4) Lender Eligibility and Approval Status: Evidence that the 
lender is either an approved lender for the purposes of the GRRHP or 
that the lender is eligible to apply for approved lender status. The 
lender's application package requesting approved lender status can be 
submitted with the NOSA response. If a lender has not yet been approved 
by the Agency submits a NOSA response and receives a ``Notice to 
Proceed with Application Processing'' letter from the State Office, the 
lender approval application must be submitted to the National Office 
within 30 calendar days of the lender's receipt of the ``Notice to 
Proceed with Application Processing'' letter. The Agency will not issue 
a loan note guarantee until the lender is approved by the Agency.
    (5) Competitive Criteria: Information that shows how the proposal 
is responsive to the selection criteria specified in this Notice.

V. Application Review Information

    Scoring of Priority Criteria for Selection: All responses received 
under this NOSA will be scored based on the criteria set forth below to 
establish their priority for further processing. Per 7 CFR 3565.5 (b), 
priority will be given to projects: In smaller rural communities, in 
the most needy communities having the highest percentage of leveraging, 
having the lowest interest rate, or having the highest ratio of 3-5 
bedroom units to total units. In addition, as permitted in 7 CFR 
3565.5(b), in order to meet important program goals, priority points 
will be given for projects that include LIHTC funding and projects that 
are participating in specified energy efficient programs.
    The eight priority scoring criteria for projects are listed below.
    Priority 1--Projects located in eligible rural communities with the 
lowest populations will receive the highest points.

------------------------------------------------------------------------
                      Population size                           Points
------------------------------------------------------------------------
0-5,000....................................................           30
5,001-10,000 people........................................           15
10,001-15,000 people.......................................           10
15,001-20,000 people.......................................            5
20,001-35,000 people.......................................            0
------------------------------------------------------------------------

    Priority 2--The neediest communities as determined by the median 
income from the most recent census data published by the United States 
Department of Housing and Urban Development (HUD), will receive points. 
The Agency will allocate points to projects located in communities 
having the lowest median income. Points for median income will be 
awarded as follows:

------------------------------------------------------------------------
                  Median income (dollars)                       Points
------------------------------------------------------------------------
Less than $45,000..........................................           20
$45,000--less than $55,000.................................           15
$55,000--less than $65,000.................................           10
$65,000--less than $75,000.................................            5
$75,000 or more............................................            0
------------------------------------------------------------------------

    Priority 3--Projects that demonstrate partnering and leveraging in 
order to develop the maximum number of units and promote partnerships 
with State and local communities will also receive points. Points will 
be awarded as follows:

------------------------------------------------------------------------
    Loan to total development cost ratio (percentage %)         Points
------------------------------------------------------------------------
Less than 25...............................................           60
Less than 50 to 25.........................................           30
Less than 70 to 50.........................................           10
70 or more.................................................            0
------------------------------------------------------------------------

    Priority 4--Responses that include equity from low income housing 
tax credits will receive an additional 50 points.
    Priority 5--The USDA Rural Development will award points to 
projects with the highest ratio of 3-5 bedroom units to total units as 
follows:

------------------------------------------------------------------------
         Ratio of 3-5 bedroom units  to total units             Points
------------------------------------------------------------------------
More than 50%..............................................           10
21%-50%....................................................            5
Less than 21%--more than 0%................................            1
------------------------------------------------------------------------

    Priority 6--Responses for the revitalization, repair, and transfer 
(as stipulated in 7 CFR 3560.406) of existing direct Section 515 and 
Section 514/516 FLH and properties involved in the Agency's MPR program 
(transfer costs, including equity payments, are subject to Agency 
approval and must be an eligible use of loan proceeds listed in 7 CFR 
3565.205) will receive an additional 10 points. If the transfer of 
existing Section 515 and Section 514/516 FLH properties includes equity 
payments, 0 points will be awarded.

Priority 7--Energy Efficiency

    (A) Projects that are energy-efficient and registered for 
participation in the following programs will receive points as 
indicated up to a maximum of 25 points. Each program has an initial 
checklist indicating prerequisites for participation. Each applicant 
must provide a checklist establishing that the prerequisites for each 
program's participation will be met. Additional points will be awarded 
for checklists that achieve higher levels of energy efficiency 
certification as set forth below. All checklists must be accompanied by 
a signed affidavit by the project architect stating that the goals are 
achievable. Points will be awarded for the listed programs as follows. 
Because Energy Star for Homes is a requirement within other programs 
such as LEED and Green Communities, points will only be awarded 
separately for Energy Star for Homes if it is the only program in which 
the project is enrolled, excluding local programs that do not require 
participation in Energy Star for Homes:
     Energy Star for Homes--5 points;
     Green Communities by the Enterprise Community Partners 
(www.enterprisefoundation.org)--10 points;
     LEED for Homes program by the U.S. Green Building Council 
(USGBC) (www.usgbc.org)--Certified (10 points), Silver (12 points), 
Gold (15 points), or Platinum (25 points);
     Home Innovation's National Green Building StandardTM 
(NGBS) certification program (www.homeinnovation.com/green)--Bronze (10 
points), Silver (12 points), Gold (15 points), or Emerald (25 points); 
or
     A State or local green building program--2 points
    (B) Projects that will be managed by a property management company 
that are certified green property management companies will receive 5 
points. Applicants must provide proof of certification. Certification 
may be achieved through one of the following programs:
     National Apartment Association, Credential for Green 
Property Management (CGPM); www.naahq.org/EDUCATION/DESIGNATIONPROGRAMS/OTHER/Pages/default.aspx;
     National Affordable Housing Management Association 
(NAHMA), Credential for Green Property Management (CGPM); 
www.nahma.org/content/greencred.html; or
     U.S. Green Building Council (USGBC), Green Building 
Certification Institute (GBCI) LEED AP (any discipline) or LEED Green 
Associate; www.gbci.org.

[[Page 13316]]

    (C) Energy Generation (maximum 5 points). Pre-applications for new 
construction or purchase and rehabilitation of non-program multi-family 
projects which participate in the Energy Star for Homes V3 Program, 
Green Communities, LEED for Homes or NAHB's National Green Building 
Standard (ICC-700) 2008, receive at least 8 points for Energy 
Conservation measures (if limited rehabilitation only) in the point 
allocations above are eligible to earn additional points for 
installation of on-site renewable energy sources. In order to receive 
more than 1 point for this energy generation section, an accurate 
energy analysis prepared by an engineer will need to be submitted with 
the pre-application. Energy analysis of preliminary building plans 
using industry-recognized simulation software must document the 
projected total energy consumption of the building, the portion of the 
building consumption which will be satisfied through on-site generation 
and the building's Home Energy Rating System (HERS) score.
    Projects with an energy analysis of the preliminary or 
rehabilitation building plans that propose a 10 percent to 100 percent 
energy generation commitment (where generation is considered to be the 
total amount of energy needed to be generated on-site to make the 
building a net-zero consumer of energy) will be awarded points as 
follows:
     (a) 0 to 9 percent commitment to energy generation 
receives 0 points;
     (b) 10 to 29 percent commitment to energy generation 
receives 1 point;
     (c) 30 to 49 percent commitment to energy generation 
receives 2 points;
     (d) 50 to 69 percent commitment to energy generation 
receives 3 points;
     (e) 70 to 89 percent commitment to energy generation 
receives 4 points;
     (f) 90 percent or more commitment to energy generation 
receives 5 points.

Priority 8--Promise Zones/Persistent Poverty Areas

    Additional 10 points will be awarded to projects located in Promise 
Zones and/or persistent poverty counties. A county is considered 
persistently poor if 20 percent or more of its population was living in 
poverty over the last 30 years (measured by the 1980, 1990, and 2000 
decennial censuses and 2007-2011 American Community Survey 5-year 
estimates), as determined by the Agency.
    Notifications: Responses will be reviewed for completeness and 
eligibility. The Agency will notify those lenders whose responses are 
selected via a Notice to Proceed with Application Processing letter. 
The Agency will request lenders without GRRHP lender approval to apply 
for GRRHP lender approval within 30 days upon receipt of notification 
of selection.
    Lenders will also be invited to submit a complete application to 
the USDA Rural Development State Office where the project is located.
    Submission of GRRHP Applications: Notification letters will 
instruct lenders to contact the USDA Rural Development State Office 
immediately following notification of selection to schedule required 
agency reviews.
    USDA Rural Development State Office staff will work with lenders in 
the development of an application package. The deadline for the 
submission of a complete application is 90 calendar days from the date 
of notification of response selection. If the application is not 
received by the appropriate State Office within 90 calendar days from 
the date of notification, the selection is subject to cancellation, 
thereby allowing another response that is ready to proceed with 
processing to be selected. The Agency may extend this 90 day deadline 
for receipt of an application at its own discretion.

VI. Award Administration Information

    Obligation of Program Funds: The Agency will only obligate funds to 
projects that meet the requirements for obligation under 7 CFR part 
3565 and this NOSA, including having undergone a satisfactory 
environmental review in accordance with the National Environmental 
Protection Act (NEPA) and completed Form RD 3565-1 for the selected 
project.
    The Agency will prioritize the obligation requests using the 
highest score and the procedures outlined as follows. The Agency will 
select the responses that meet eligibility criteria and invite lenders 
to submit complete applications to the Agency. Once a complete 
application is received and approved, the Agency's State Office will 
submit a request to obligate funds to the Agency's National Office. 
Starting on the Friday following the date the NOSA is published; 
obligation requests submitted to the National Office will be 
accumulated, but not obligated throughout the week until midnight 
Eastern Time every Thursday. To the extent that funds remain available, 
the Agency will obligate the requests accumulated through the weekly 
request deadline of the previous week by the following Tuesday (i.e., 
requests received from Friday, May 13, 2016, to Thursday, May 19, 2016, 
will be obligated by Tuesday, May 24, 2016). In the event of a tie, 
priority will be given to the request for the project that: 1st--has 
the highest percentage of leveraging (lowest Loan to Cost) and in the 
event there is still a tie;--is in the smaller rural community.
    Conditional Commitment: Once the required documents for obligation 
are received and all NEPA and regulatory requirements have been met, 
the USDA Rural Development State Office will issue a conditional 
commitment, which stipulates the conditions that must be fulfilled 
before the issuance of a guarantee, in accordance with 7 CFR 3565.303.
    Issuance of Guarantee: The USDA Rural Development Office will issue 
a guarantee to the lender for a project in accordance with 7 CFR 
3565.303. No guarantee can be issued without a complete application, 
review of appropriate certifications, satisfactory assessment of the 
appropriate level of environmental review, and the completion of any 
conditional requirements.

Non-Discrimination Statement

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, familial/parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or 
write a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To request a copy of the complaint 
form,

[[Page 13317]]

call (866) 632-9992, submit your completed form or letter to USDA by: 
Mail: U.S. Department of Agriculture, Office of the Assistant Secretary 
for Civil Rights, 1400 Independence Avenue SW., Washington, DC 20250-
9410; Fax: (202) 690-7442; or, email: [email protected]., USDA is 
an equal opportunity provider, employer, and lender.

    Dated: March 3, 2016.
Tony Hernandez,
Administrator, Housing and Community Facilities Programs.
[FR Doc. 2016-05610 Filed 3-11-16; 8:45 am]
BILLING CODE 3410-XV-P