The Rural Development (RD) Multi-family Housing Revitalization Demonstration Program (MPR) (10.447)

Program

10.447 The Rural Development (RD) Multi-family Housing Revitalization Demonstration Program (MPR)

Federal Agency

Agency: Department of Agriculture
Office: Rural Housing Service

Authorization

Housing Act of 1949, as amended, Sections 514/516 and 515, and The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2008 (Public Law 110-161).

Program Number

10.447

Last Known Status

Active

Objectives

To preserve and revitalize existing rural rental housing and farm labor housing projects financed by RHS under Section 515 and Sections 514/516 of the Housing Act of 1949 and to ensure that sufficient resources are available in order to continue to provide safe and affordable housing for low-income residents.

Types of Assistance

PROJECT GRANTS

Uses and Use Restrictions

Funds will be used to meet the physical needs of rental and farm labor housing properties financed under Section 515 and Sections 514/516 of the Housing Act of 1949. Related soft costs are also eligible. Owners or buyers are required to agree to a Restrictive Use Covenant for 20 years or the remaining term of any loans, or the remaining term of any existing restrictive-use provisions whichever ends later. This ensures the property will be used for low income housing as defined by the Housing Act of 1949.

Eligibility Requirements

Applicant Eligibility

Owners or buyers of financially viable Section 515 financed rental or Section 514/516 labor housing properties.

Beneficiary Eligibility

Low-income rural residents needing safe, decent and sanitary rental housing.

Credentials/Documentation

Applicants must provide a Capital Needs Assessment (CNA) to identify the physical needs of the property as well as the estimated cost to make the needed repairs over a 20-year period. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Mult-Family Housing Revitalization Demonstration Program (MPR) Preapplication. An electronic version of this form can be found on the Internet at http://www.rurdev.usda.gov/rd/nofas/index.html or obtained by contacting the RD State Office in the state where the project is located. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

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. For FY 09, the MPR Program was awarded through a Notice of Soliciation Availability (NOSA) announced in the Federal Regiser on April 29, 2009. The NOSA pre-application period was 60 days from the date of the announcement. The NOSA deadline was June 29, 2009.

Award Procedure

Pre-applications will be scored on the following factors: (1) Contribution of third party funds; (2) Owner contribution sufficient to pay transaction costs; (3) Age of Project; (4) Transfer and revitalization of troubled projects; (5) Prior Agency approvals of CNAs; (6) Installation of energy generation systems; (7) Energy conservation; and (8) New tenant services to be provided by a non-profit organization at no cost to the project and that are available to all tenants.

Deadlines

Jun 29, 2009

Range of Approval/Disapproval Time

Within 45 days from Pre-application submission, pre-applications will be scored and ranked, eligibility will be confirmed, and applicants will be notified of selection for participation and requested to submit full applications.

Appeals

Applicant may request reconsideration on the basis of pertinent facts concerning the application.

Renewals

Non selected applicants may reapply under the next Notice of Funding Solicitation (NOSA).

Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program.

Matching requirements are not applicable to this program.

MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Debt deferral is the lesser of the remaining term of the existing loan or 20 years. A balloon payment of accrued principal and interest will be due at the end of the deferral period. A revitalization grant for non-profit applicants/borrowers only, is limited to the cost of correcting health and safety violations as identified by a CNA. A revitalization zero percent loan will be amortized over 30 years. A soft-second loan with a one percent interest rate will have its interest and principal deferred, to a balloon payment, due at the time the latest maturing Section 514 or 515 loan becomes due. An additional 30-year Section 515 loan at an effective one percent interest rate amortized over a period not to exceed 50 years. An additional 33-year Section 514 loan at an effective one percent interest rate amortized over a period not to exceed 33 years. An additional Section 516 grant not to exceed the lesser of 90 percent of the total development cost, or that portion of the total development cost which exceeds the sum of any amount provided by the applicant from their own resources plus the amount of any Section 514 loans approved for the applicant. See the following for information on how assistance is awarded/released: Typically, participants compete for funding via the NOSA; a selection process ensues based upon set criteria; applications are ranked and scored nationally. Selections are made based on the project type, ranking and scoring. States are given limits on how many applications are selected with a contingency for fall out.

Post Assistance Requirements

Reports

Tracking and monitoring reports are required for Rural Rental and Farm Labor Housing. Since this is a Demonstration Program, procedures for tracking and monitoring expenditures are under development. Cash reports are not applicable. Progress reports are not applicable. Expenditure reports are not applicable. Performance monitoring is not applicable.

Audits

This program is excluded from coverage under OMB Circular No. A-133. Quarterly or annual financial statements completed using agreed-upon procedures and performance standards described in the RHS Multi-Family Housing Audit Program.

Records

Business records must be retained.

Program Accomplishments

Fiscal Year 2008: In Fiscal Year 2008, 268 properties received assistance for revitalization and preservation. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Financial Information

Account Identification

12-2081-0-1-371.

Obligations

(Project Grants) FY 08 $126,000,000; FY 09 est $71,000,000; FY 10 est $71,000,000

Range and Average of Financial Assistance

The underwriting guidelines include, but are not limited to, the following: The maximum soft-second loan wil be limited to no more than $5,000 per unit; revitalization grants limited to $5,000 per unit; total assistance provided from a revitalization grant, revitalization zero percent loan, and/or a soft-second loan is limited to $10,000 per unit; and the maximum Section 515 loan or Section 514/516 loan and grant is limited to no more than $20,000 per unit.

Regulations, Guidelines and Literature

Not Applicable.

Related Programs

10.415 Rural Rental Housing Loans

Information Contacts

Regional or Local Office

See Regional Agency Offices. Refer to the NOSA which lists contacts at the National Office and consult your local telephone directory for Rural Development District or State Office numbers or visit the webstie http://offices.sc.egov.usda.gov/locator/app.

Headquarters Office

USDA, Rural Development, Preservation and Direct Loan Division Attention: Cynthia L. Johnson
1400 Independence Avenue, S.W., Mail Stop 0782, Washington, District of Columbia 20250-0781 Phone: 202-720-1940

Web Site Address

http://www.rurdev.usda.gov

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Proposals will be selected based on eligibility and ranking and scoring criteria listed in the NOSA.