Rural Housing Site Loans and Self-Help Housing Land Development Loans (10.411)
Program
10.411 Rural Housing Site Loans and Self-Help Housing Land Development Loans
Federal Agency
Agency: Department of Agriculture
Office: Rural Development
Authorization
Housing Act of 1949, as amended, Sections 523 and 524, Public Law 89-117; Public Law 89-754, 42 U.S.C. 1490 (c) and (d).
Program Number
10.411
Last Known Status
Active
Objectives
To assist public or private nonprofit organizations interested in providing sites for housing; to acquire and develop land in rural areas to be subdivided as adequate building sites and sold on a cost development basis to families eligible for low and very low income loans, cooperatives, and broadly based nonprofit rural rental housing applicants.
Types of Assistance
DIRECT LOANS
Uses and Use Restrictions
For the purchase and development of adequate sites, including necessary equipment which becomes a permanent part of the development; for water and sewer facilities if not available; payment of necessary engineering, legal fees, and closing costs; for needed landscaping and other necessary facilities related to buildings such as walks, parking areas, and driveways. Restrictions: loan funds may not be used for refinancing of debts, payment of any fee, or commission to any broker, negotiator, or other person for the referral of a prospective applicant or solicitation of a loan; no loan funds will be used to pay operating costs or expenses of adminsitration other than actual cash cost of incidental administrative expenses if funds to pay those expenses are not otherwise available. Repayment of loan is expected within two years.
Eligibility Requirements
Applicant Eligibility
A private or public nonprofit organization that will provide the developed sites to qualified borrowers on a cost of development basis in open country and towns of 10,000 population or less and places up to 25,000 population under certain conditions. Applicants from towns of 10,000 to 25,000 population should check with local RD office to determine if agency can serve them. Assistance is available to eligible applicants in States, Puerto Rico, the Virgin Islands, Guam, and the Northern Marianas.
Beneficiary Eligibility
Sites developed with Section 524 loans must be for housing low and very low income families and may be sold to families, nonprofit organizations, public agencies and cooperatives eligible for assistance under any Section of Title V of the Housing Act of 1949, or under any other law which provides financial assistance. Sites developed with Section 523 loans must be for housing to be built by the self-help method.
Credentials/Documentation
Applicants must furnish evidence of the following: (1) Market analysis showing need for such services; (2) legal capacity to borrow funds and develop land for sale; (3) a sound budget; and (4) general project description. This program is excluded from coverage under OMB Circular No. A-87. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process
Preapplication Coordination
This program is subject to environmental review pursuant to the National Environmental Policy Act (NEPA) of 1969. An environmental impact assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Application Procedure
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. The application will be in the form of a letter to the Rural Development Manager of the Rural Development (RD). Supporting information and costs should be included as needed. This program is excluded from coverage under Departmental Regulations 3015 and 3016, and OMB Circular No. A-110.
Award Procedure
After application has been reviewed.
Deadlines
Not Applicable.
Range of Approval/Disapproval Time
From 60 to 90 days.
Appeals
A uniform procedure whereby an organization which is directly or adversely affected by an administrative decision by Rural Development Rural Housing Programs is found in 7 CFR 3550.4. Applicants may request reconsideration on the basis of pertinent facts concerning his application.
Renewals
Applicants may reapply at any time provided there is evidence of need for the proposed building sites in the locality.
Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
Not Applicable. See the following for information on how assistance is awarded/released: Contact Local Rural Development Office.
Post Assistance Requirements
Reports
Audits
Not Applicable.
Records
Adequate operating records must be maintained by borrower.
Program Accomplishments
Not Applicable.
Financial Information
Account Identification
12-2081-0-1-371; 12-4141-0-3-371.
Obligations
(Direct Loans) FY 08 $100,000; FY 09 est $4,970,000; FY 10 est $4,970,000 - (523 Site Loans). (Direct Loans) FY 08 $1,700,000; FY 09 est $5,045,000; FY 10 est $5,045,000 - (524 Site Loans).
Range and Average of Financial Assistance
Not Available.
Regulations, Guidelines and Literature
RD Instruction 444.8, "Rural Housing Site Loan Policies, Procedures, and Authorizations"; 7 CFR 1822.261-1822.278; PA-1131.
Related Programs
10.410 Very Low to Moderate Income Housing Loans; 10.415 Rural Rental Housing Loans; 10.420 Rural Self-Help Housing Technical Assistance
Information Contacts
Regional or Local Office
See Regional Agency Offices. Consult your local telephone directory under U.S. Department of Agriculture for Rural Development county or district office numbers or visit the website http://offices.sc.egov.usda.gov/locator/app for a State Office listing.
Headquarters Office
Director, Single Family Housing Processing Division, Rural Housing Service, U.S. Department of Agriculture, Washington, District of Columbia 20250 Phone: 202-720-1474
Web Site Address
Examples of Funded Projects
Fiscal Year 2008: No Current Data Available Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available
Criteria for Selecting Proposals
Not Applicable.
