Notices. Notice

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

BILLING CODE 3410-11-M DEPARTMENT OF AGRICULTURE Rural Housing Service Notice of Funding Availability

(NOFA)for the Section 515 Rural Rental Housing Program for New Construction in Fiscal Year 2007 AGENCY: Rural Housing Service (RHS), USDA. ACTION: Notice. SUMMARY: This NOFA announces the timeframe to submit applications for Section 515 Rural Rental Housing

(RRH)loan funds, including applications for the nonprofit set-aside for eligible nonprofit entities, the set-aside for the most Underserved Counties and Colonias (Cranston-Gonzalez National Affordable Housing Act), and the set-aside for Empowerment Zones and Enterprise Communities (EZ/ECs) and Rural Economic Area Partnership

(REAP)zones, and a designated reserve for states with rental assistance programs. This document describes the methodology that will be used to distribute funds, the application process, submission requirements, and areas of special emphasis or consideration. DATES: The deadline for receipt of all applications in response to this NOFA is 5 p.m., local time for each USDA Rural Development State Office on June 29, 2007. The application closing deadline is firm as to date and hour. The Agency will not consider any application that is received after the closing deadline. Applicants intending to mail applications must provide sufficient time to permit delivery on or before the closing deadline date and time. Acceptance by the United States Postal Service or private mailer does not constitute delivery. Facsimile

(FAX)and postage due applications will not be accepted. ADDRESSES: Applicants wishing to apply for assistance must contact the USDA Rural Development State Office serving the place in which they desire to submit an application for rural rental housing to receive further information and copies of the application package. USDA Rural Development will date and time stamp incoming applications to evidence timely receipt, and, upon request, will provide the applicant with a written acknowledgment of receipt. A listing of USDA Rural Development State Offices, their addresses, telephone numbers, and person to contact follows: Note: Telephone numbers listed are not toll-free. Alabama State Office, Suite 601, Sterling Centre, 4121 Carmichael Road, Montgomery, AL 36106-3683,

(334)279-3618, TDD

(334)279-3495, Van McCloud. Alaska State Office, 800 West Evergreen, Suite 201, Palmer, AK 99645,

(907)761-7740, TDD

(907)761-8905, Debbie Andrys. Arizona State Office, Phoenix Courthouse and Federal Building, 230 North First Ave., Suite 206, Phoenix, AZ 85003-1706,

(602)280-8768, TDD

(602)280-8706, Carol Torres. Arkansas State Office, 700 W. Capitol Ave., Room 3416, Little Rock, AR 72201-3225,

(501)301-3250, TDD

(501)301-3063, Greg Kemper. California State Office, 430 G Street, #4169, Davis, CA 95616-4169,

(530)792-5821, TDD

(530)792-5848, Debra Moretton. Colorado State Office, 655 Parfet Street, Room E100, Lakewood, CO 80215,

(720)544-2923, TDD

(800)659-2656, Mary Summerfield. Connecticut, Served by Massachusetts State Office. Delaware and Maryland State Office, 1221 College Park Drive, Suite 200, Dover, DE 19904,

(302)857-3615, TDD

(302)857-3585, Pat Baker. Florida & Virgin Islands State Office, 4440 N.W. 25th Place, Gainesville, FL 32606-6563,

(352)338-3465, TDD

(352)338-3499, Elizabeth M. Whitaker. Georgia State Office, Stephens Federal Building, 355 E. Hancock Avenue, Athens, GA 30601-2768,

(706)546-2164, TDD

(706)546-2034, Wayne Rogers. Hawaii State Office, (Services all Hawaii, American Samoa Guam, and Western Pacific), Room 311, Federal Building, 154 Waianuenue Avenue, Hilo, HI 96720,

(808)933-8305, TDD

(808)933-8321, Thao Khamoui. Idaho State Office, Suite A1, 9173 West Barnes Dr., Boise, ID 83709,

(208)378-5630, TDD

(208)378-5644, Miriam Haylett. Illinois State Office, 2118 West Park Court, Suite A, Champaign, IL 61821-2986,

(217)403-6222, TDD

(217)403-6240, Barry L. Ramsey. Indiana State Office, 5975 Lakeside Boulevard, Indianapolis, IN 46278,

(317)290-3100 (ext. 423), TDD

(317)290-3343, Stephen Dye. Iowa State Office, 210 Walnut Street Room 873, Des Moines, IA 50309,

(515)284-4685, TDD

(515)284-4858, Julie Sleeper. Kansas State Office, 1303 SW First American Place, Suite 100, Topeka, KS 66604-4040,

(785)271-2721, TDD

(785)271-2767, Virginia M. Hammersmith. Kentucky State Office, 771 Corporate Drive, Suite 200, Lexington, KY 40503,

(859)224-7325, TDD

(859)224-7422, Paul Higgins. Louisiana State Office, 3727 Government Street, Alexandria, LA 71302,

(318)473-7962, TDD

(318)473-7655, Yvonne R. Emerson. Maine State Office, 967 Illinois Ave., Suite 4, PO Box 405, Bangor, ME 04402-0405,

(207)990-9110, TDD

(207)942-7331, Bob Nadeau. Maryland, Served by Delaware State Office. Massachusetts, Connecticut, & Rhode Island State Office, 451 West Street, Amherst, MA 01002,

(413)253-4333, TDD

(413)253-4590, Donald Colburn. Michigan State Office, 3001 Coolidge Road, Suite 200, East Lansing, MI 48823,

(517)324-5192, TDD

(517)337-6795, Julie Putnam. Minnesota State Office, 375 Jackson Street Building, Suite 410, St. Paul, MN 55101-1853,

(651)602-7820, TDD

(651)602-7830, Rodney Jackson. Mississippi State Office, Federal Building, Suite 831, 100 W. Capitol Street, Jackson, MS 39269,

(601)965-4325, TDD

(601)965-5850, Darnella Smith-Murray. Missouri State Office, 601 Business Loop 70 West, Parkade Center, Suite 235, Columbia, MO 65203,

(573)876-0990, TDD

(573)876-9480, Colleen James. Montana State Office, 900 Technology Blvd., Suite B, Bozeman, MT 59718,

(406)585-2515, TDD

(406)585-2562, Deborah Chorlton. Nebraska State Office, Federal Building, Room 152, 100 Centennial Mall N, Lincoln, NE. 68508,

(402)437-5734, TDD

(402)437-5093, Linda Anders. Nevada State Office, 1390 South Curry Street, Carson City, NV 89703-5146,

(775)887-1222 (ext. 25), TDD

(775)885-0633, Angilla Denton. New Hampshire State Office, Concord Center, Suite 218, Box 317, 10 Ferry Street, Concord, NH 03301-5004,

(603)223-6050, TDD

(603)229-0536, Robert McCarthy. New Jersey State Office, 5th Floor North Suite 500, 8000 Midlantic Dr., Mt. Laurel, NJ 08054,

(856)787-7740, TDD

(856)787-7784, George Hyatt, Jr. New Mexico State Office, 6200 Jefferson St., NE., Room 255, Albuquerque, NM 87109,

(505)761-4944, TDD

(505)761-4938, Carmen N. Lopez. New York State Office, The Galleries of Syracuse, 441 S. Salina Street, Suite 357 5th Floor, Syracuse, NY 13202,

(315)477-6419, TDD

(315)477-6447, George N. Von Pless. North Carolina State Office, 4405 Bland Road, Suite 260, Raleigh, NC 27609,

(919)873-2066, TDD

(919)873-2003, Beverly Casey. North Dakota State Office, Federal Building, Room 208, 220 East Rosser, PO Box 1737, Bismarck, ND 58502,

(701)530-2049, TDD

(701)530-2113, Kathy Lake. Ohio State Office, Federal Building, Room 507, 200 North High Street, Columbus, OH 43215-2477,

(614)255-2418, TDD

(614)255-2554, Melodie Taylor-Ward. Oklahoma State Office, 100 USDA, Suite 108, Stillwater, OK 74074-2654,

(405)742-1070, TDD

(405)742-1007, Ivan S. Graves. Oregon State Office, 1201 NE Lloyd Blv., Suite 801, Portland, OR 97232,

(503)414-3325, TDD

(503)414-3387, Sherryl Gleason. Pennsylvania State Office, One Credit Union Place, Suite 330, Harrisburg, PA 17110-2996,

(717)237-2281, TDD

(717)237-2261, Martha Eberhart. Puerto Rico State Office, 654 Munoz Rivera Avenue, IBM Plaza, Suite 601, Hato Rey, PR 00918,

(787)766-5095 (ext. 249), TDD

(787)766-5332, Lourdes Colon. Rhode Island, Served by Massachusetts State Office . South Carolina State Office, Strom Thurmond Federal Building, 1835 Assembly Street, Room 1007, Columbia, SC 29201,

(803)253-3432, TDD

(803)765-5697, Larry D. Floyd. South Dakota State Office, Federal Building, Room 210, 200 Fourth Street, SW, Huron, SD 57350,

(605)352-1132, TDD

(605)352-1147, Roger Hazuka or Pam Reilly. Tennessee State Office, Suite 300, 3322 West End Avenue, Nashville, TN 37203-1084,

(615)783-1375, TDD

(615)783-1397, Don Harris. Texas State Office, Federal Building, Suite 102, 101 South Main, Temple, TX 76501,

(254)742-9758, TDD

(254)742-9712, Julie Hayes. Utah State Office, Wallace F. Bennett Federal Building, 125 S. State Street, Room 4311, Salt Lake City, UT 84147-0350,

(801)524-4325, TDD

(801)524-3309, Janice Kocher. Vermont State Office, City Center, 3rd Floor 89 Main Street, Montpelier, VT 05602,

(802)828-6021, TDD

(802)223-6365, Heidi Setien. Virgin Islands, Served by Florida State Office . Virginia State Office, Culpeper Building, Suite 238, 1606 Santa Rosa Road, Richmond, VA 23229,

(804)287-1596, TDD

(804)287-1753, CJ Michels. Washington State Office, 1835 Black Lake Blvd., Suite B, Olympia, WA 98512,

(360)704-7730, TDD

(360)704-7760, Robert Lund. Western Pacific Territories, Served by Hawaii State Office. West Virginia State Office, Federal Building, 75 High Street, Room 320, Morgantown, WV 26505-7500,

(304)284-4872, TDD

(304)284-4836, David Cain. Wisconsin State Office, 4949 Kirschling Court, Stevens Point, WI 54481,

(715)345-7615 (ext. 151), TDD

(715)345-7614, Peter Kohnen. Wyoming State Office, PO Box 11005, Casper, WY 82602,

(307)233-6715, TDD

(307)233-6733, Jack Hyde. FOR FURTHER INFORMATION CONTACT: For general information, applicants may contact Barbara Chism, Senior Loan Specialist, Multi-Family Housing Processing Division, Rural Housing Service, United States Department of Agriculture, Stop 0781, 1400 Independence Avenue, SW., Washington, DC 20250, telephone

(202)690-1436 (voice) (this is not a toll free number),

(800)877-8339 (TDD-Federal Information Relay Service), or via e-mail, *Barbara.Chism@wdc.usda.gov.* SUPPLEMENTARY INFORMATION: Programs Affected The Rural Rental Housing program is listed in the Catalog of Federal Domestic Assistance under Number 10.415, Rural Rental Housing Loans. Rental Assistance is listed in the Catalog under Number 10.427, Rural Rental Assistance Payments. Discussion of Notice I. Authority and Distribution Methodology A. Authority Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) provides RHS with the authority to make loans to any individual, corporation, association, trust, Indian tribe, public or private nonprofit organization, consumer cooperative, or partnership to provide rental or cooperative housing and related facilities in rural areas for very-low, low, or moderate income persons or families, including elderly persons and persons with disabilities. Rental assistance

(RA)is a tenant subsidy for very-low and low-income families residing in rural rental housing facilities with RHS financing and, when available, may be requested with applications for such facilities. B. Distribution Methodology The total amount available for Fiscal Year

(FY)2007 for section 515 is $99,000,000, of which $25,740,000 is available for new construction as follows: Non-Restricted—$8,234,537 Set-aside for nonprofits—$8,910,000 Set-aside for Underserved Counties and Colonias—$4,950,000 Earmark for EZ, EC, and REAP Zones—$2,655,463 Designated Reserve for States with Rental Assistance Programs—$990,000 C. Section 515 New Construction Funds For FY 2007, the Administrator has determined that it would not be practical to allocate funds to States because of funding limitations; therefore, section 515 new construction funds will be distributed to States based on a National competition, as follows: 1. States will accept, review, score, and rank requests in accordance with 7 CFR 3560.56. The scoring factors are:

(a)The presence and extent of leveraged assistance for the units that will serve RHS income-eligible tenants at basic rents, comparable to those if RHS provided full financing, computed as a percentage of the RHS total development cost (TDC). Loan proposals that include secondary funds from other sources that have been requested but have not yet been committed will be processed as follows: The proposal will be scored based on the requested funds, provided

(1)the applicant includes evidence of a filed application for the funds; and

(2)the funding date of the requested funds will permit processing of the loan request in the current funding cycle, or, if the applicant does not receive the requested funds, will permit processing of the next highest ranked proposal in the current year. Points will be awarded in accordance with the following table. Percentages will be rounded to the next higher whole number. (0 to 20 points) Percentage of leveraging Points 75 or more 20 70-74 19 65-69 18 60-64 17 55-59 16 50-54 15 45-49 14 40-44 13 35-39 12 30-34 11 25-29 10 20-24 9 15-19 8 10-14 7 5-9 6 0-4 0

(b)The units to be developed are in a colonia, tribal land, EZ, EC, or Rural Economic Area Partnership

(REAP)community, or in a place identified in the State Consolidated Plan or State Needs Assessment as a high need community for multifamily housing. (20 points)

(c)Pursuant to 7 CFR 3560.56 (c)(1)(iii), in states where RHS has an on-going formal working relationship, agreement, or Memorandum of Understanding

(MOU)with the State to provide State resources (State funds, State RA, HOME funds, Community Development Block Grant

(CDBG)funds, or Low-Income Housing Tax Credits (LIHTC)) for RHS proposals; or where the State provides preference or points to RHS proposals in awarding such State resources, 20 points will be provided to loan requests that include such State resources in an amount equal to at least 5 percent of the TDC. Native American Housing and Self Determination Act (NAHASDA) funds may be considered a State Resource if the Tribal Plan for NAHASDA funds contains provisions for partnering with RHS for multi-family housing. (National Office initiative)

(d)The loan request includes donated land meeting the provisions of 7 CFR 3560.56(c)(1)(iv). (5 points)

(e)In an effort to implement USDA's nationwide initiative to promote renewable energy and energy conservation, Rural Development has adopted incentives for energy generation and energy conservation. Participation in these nationwide initiatives is voluntary, but is strongly encouraged. *Energy Generation.* Applicants will be awarded points if the proposal includes the installation of energy generation systems to be funded by a third party. The proposal must include an overview of the energy generation system being proposed. Evidence that an energy generation system has been funded by a third party and that it has a quantifiable positive impact on energy consumption will be required. (5 points) *Energy Conservation.* Applicants will be awarded points to construct (or substantially rehabilitate) housing that earns the ENERGY STAR label for new residential construction. Units earning the ENERGY STAR label must be independently verified to meet guidelines for energy efficiency as set by the U.S. Environmental Protection Agency. All procedures used in verifying a unit for the ENERGY STAR label must comply with National Home Energy Ratings System

(HERS)guidelines. ENERGY STAR guidelines for residential construction apply to homes that are three stories or less and single or low-rise multi-family residential buildings. The Applicant will include in the summary an explanation of how they plan to incorporate ENERGY STAR. Construction plans pertaining to energy efficiency must be developed with, reviewed, and accepted by a HERS certified rater, the contractor, and the owner. Progress inspections must be made at appropriate times by a HERS certified rater to ensure that the housing is being constructed or rehabilitated according to ENERGY STAR specifications. In order to receive final payment, applicants will be required to submit the appropriate rating reports from the HERS rater to Rural Development as evidence that the housing has been constructed to meet the standards of ENERGY STAR. In the event that housing does not meet ENERGY STAR guidelines for new residential construction, the Agency shall, at its discretion, deduct 5 points from future funding proposals. For further information about ENERGY STAR, see *http://www.energystar.gov* or call the following toll-free numbers:

(888)782-7939 or

(888)588-9920 (TTY). (5 points) 2. The National Office will rank all requests nationwide and distribute funds to States in rank order, within funding limits. If insufficient funds remain for the next ranked proposal, the Agency will select the next ranked proposal that falls within the remaining levels. Point score ties will be handled in accordance with 7 CFR 3560.56(c)(2). D. Applications That Do Not Require New Construction RA In the event new construction RA is available for FY 2007, it will be available in limited amounts. Therefore, the Agency is inviting applications to develop units in markets that do not require RA. The market study for proposals must clearly demonstrate a need and demand for the units by prospective tenants at income levels that can support the proposed rents without tenant subsidies. The proposed units must offer amenities that are typical for the market area at rents that are comparable to conventional rents in the market for similar units. E. Set-Asides Loan requests will be accepted for the following set-asides: 1. Nonprofit set-aside. An amount of $8,910,000 has been set aside for nonprofit applicants. All loan proposals must be in designated places in accordance with 7 CFR 3560.57. A State or jurisdiction may receive one proposal from this set-aside, which cannot exceed $1 million. A State could get additional funds from this set-aside if any funds remain after funding one proposal from each participating State. If there are insufficient funds to fund one loan request from each participating State, selection will be made by point score. If there are any funds remaining, they will be handled in accordance with 42 U.S.C. 1485(w)(3). Funds from this set-aside will be available only to nonprofit entities, which may include a partnership that has as its general partner a nonprofit entity or the nonprofit entity's for-profit subsidiary which will be receiving low-income housing tax credits authorized under section 42 of the Internal Revenue Code of 1986. To be eligible for this set-aside, the nonprofit entity must be an organization that:

(a)Will own an interest in the project to be financed and will materially participate in the development and the operations of the project;

(b)Is a private organization that has nonprofit, tax exempt status under section 501(c)(3) or section 501(c)(4) of the Internal Revenue Code of 1986;

(c)Has among its purposes the planning, development, or management of low-income housing or community development projects; and

(d)Is not affiliated with or controlled by a for-profit organization. 2. Underserved counties and colonias set-aside. An amount of $4,950,000 has been set aside for loan requests to develop units in the 100 most needy underserved counties or colonias as defined in section 509(f) of the Housing Act of 1949. 3. EZ, EC, and REAP Earmark. An amount of $2,655,463 has been set aside to develop units in an EZ, EC, or REAP zone. Loan requests that are eligible for this set-aside are also eligible for regular Section 515 funds. If requests for this set-aside exceed available funds, selection will be made in accordance with 7 CFR 3560.56(c). II. Funding Limits A. Individual loan requests may not exceed $1 million. This applies to regular section 515 funds and set-aside funds. The Administrator may make an exception to this limit in cases where a State's average total development costs exceed the National average by 50 percent or more. B. No State may receive more than 20% of the total available for new construction, including set-aside funds. III. Rental Assistance

(RA)In addition to the State Matching RA program as described in Section VI. E. of this Notice and subject to its availability, new construction RA will be held in the National Office for use with section 515 Rural Rental Housing loans. Because the amount of RA available for new construction is minimal, RA will be granted to projects which best meet the scoring and ranking criteria at 7 CFR 3560.56(c). Unused RA may be allocated from within the State jurisdiction to approved new construction projects. New construction RA may not be used in conjunction with a transfer or subsequent loan for repairs or rehabilitation, preservation purposes or for inventory property sales. IV. Application Process All applications for section 515 new construction funds must be filed with the appropriate Rural Development State Office and must meet the requirements of 7 CFR 3560.56, as well as comply with the provisions of Section V. of this notice. Incomplete applications will not be reviewed and will be returned to the applicant. No application will be accepted after 5 p.m., local time, on the application deadline previously mentioned unless that date and time is extended by a Notice published in the **Federal Register** . V. Application Submission Requirements A. Each application shall include the following information, materials, forms and exhibits required by 7 CFR 3560.56, as well as comply with the provisions of this Notice. Forms to be included in initial application package: 1. Form SF 424, Application for Federal Assistance, which can be found online at *http://www.whitehouse.gov/omb/grants/sf424.pdf;* 2. Form RD 1940-20, Request for Environmental Information, which can be found online at *http://www.rurdev.usda.gov/regs/forms/1940-20.pdf;* 3. Form RD 3560-7, Multiple Family Housing Project Budget/Utility Allowance, which can be found online at *http://www.rurdev.usda.gov/regs/forms/3560-07.pdf;* 4. Form HUD 2530, Previous Participation Certification, which can be found online at *http://www.hudclips.org/sub_nonhud/cgi/pdfforms/2530.pdf;* 5. Form RD 1924-13, Estimate and Certificate of Actual Costs, which can be found online at *http://www.rurdev.usda.gov/regs/forms/1924-13.pdf;* 6. Form RD 410-9, Statement Required by the Privacy Act (for individuals only), which can be found online at *http://www.rurdev.usda.gov/regs/forms/0410-09.pdf;* Information requested in initial application package: I. To establish applicant eligibility: A. Current (within 6 months) financial statements with the following paragraph certified by someone with the legal authority to do so: I/we certify the above is a true and accurate reflection of my/our financial condition as of the date stated herein. This statement is given for the purpose of inducing the United States of America to make a loan or to enable the United States of America to make a determination of continued eligibility of the applicant for a loan as requested in the loan application of which this statement is a part. B. Check for $28 from individual applicants and $40 from organizational applicants made out to United States Department of Agriculture. This will be used to pay for credit reports obtained by the Agency. C. Statement signed by applicants that they will pay any cost overruns. D. Proposed limited partnership agreement and certificates of limited partners, if applicable. (Agency requirements should be contained in one section of the agreement and their location identified by the applicants or their attorney in a cover sheet.) E. If a nonprofit organization: 1. Tax-exempt ruling from the IRS designating them as a 501(c)(3) or 501(c)(4) organization. If the designation is pending, a copy of the designation request must be submitted. 2. Purpose statement, including the provision of low income housing. 3. Evidence of organization under state and local law, or copies of pending applications. 4. List of Board of Directors. F. If a limited liability company, proposed operating agreement and the authorized agent who has the authority to complete the loan application and loan closing documents. G. If a trust, organizational documents and attorney opinion letter that the trust is validly formed and identifying the authorized representative to act on the trust's behalf. II. To establish project feasibility: A. Market feasibility documentation: Either a market study or a market survey, as appropriate. B. Type of project and structures proposed (total number of units by bedroom size, size of each unit type, size and type of other facilities). C. Schematic drawings: 1. Site plan, including contour lines; 2. Floor plan of each living unit type and other spaces, such as laundry facilities, community rooms, stairwells, etc.; 3. Building exterior elevations; 4. Typical building exterior wall section; and 5. Plot plan. D. Description and justification of related facilities, schedule of separate charges for related facilities. E. Type and method of construction (owner builder, negotiated bid, or contractor method). F. Estimated costs (Form RD 1924-13). G. Statement of proposed management. H. Congregate services package/plan (if applicable). I. Statement of support from other Government services providers to the project (congregate only). J. Response to the Uniform Relocation Assistance Act (if applicable). III. To establish project financing: A. Statement of budget and cash flow (applicant completes Form RD 3560-7), including type of utilities and utility allowance, if applicable and contribution to reserves. B. Congregate services charges (if applicable). C. Status of efforts to obtain leveraged funds. D. Proposed construction financing (interim or multiple advance; if interim financing, letter of interest from intended lender). IV. Environmental and site information: A. Environmental information (applicant completes Form RD 1940-20). B. Evidence of compliance with Executive Order 12372 (A-95) (if applicable) Form SF 424 is sent to a clearinghouse for intergovernmental review. C. Phase I due diligence (Environmental Site Assessment; see Chapter 3 of the section 515 Rural Rental Housing Loan Origination Handbook). D. Map showing location of support services. E. Evidence of submission of project description to State Housing Preservation Office with request for comments. F. Comments regarding relevant offsite conditions. G. Explanation of any proposed energy efficiency components. Applicants are encouraged, but not required, to include a checklist and to have their applications indexed and tabbed to facilitate the review process. The Rural Development State Office will base its determination of completeness of the application and the eligibility of each applicant on the information provided in the application. B. Applicants are advised to contact the Rural Development State Office serving the place in which they desire to submit an application for the following: 1. Questions pertaining to the application process; and 2. List of designated places for which applications for new section 515 facilities may be submitted. VI. *Areas of Special Emphasis or Consideration* A. The RHS encourages the use of funding from other sources in conjunction with Agency loans. This year there will be a National Office Initiative pursuant to 7 CFR 3560.56(c)(1)(iii), whereby preference points will be awarded to loan requests that meet the selection criteria as follows: In states where RHS has an on-going formal working relationship, agreement, or MOU with the State to provide State resources (State funds, State RA, HOME funds, CDBG funds, or LIHTC) for RHS proposals; or where the State provides preference or points to RHS proposals in awarding these State Resources, 20 points will be provided to loan requests that include such State resources in an amount equal to at least 5 percent of the TDC. NAHASDA funds may be considered a State Resource if the Tribal Plan for NAHASDA funds contains provisions for partnering with RHS for multi-family housing. B. $8,910,000 is available nationwide in a set-aside for eligible nonprofit organizations as defined in 42 U.S.C. 1485(w). C. $4,950,000 is available nationwide in a set-aside for the 100 most Underserved Counties and Colonias. D. $2,655,463 is available nationwide in an earmark for EZ, EC, and REAP zone. E. $990,000 is available nationwide in a reserve for States with viable State RA programs. In order to participate, States are to submit specific written information about the State RA program, i.e., a memorandum of understanding, documentation from the provider, etc., to the National Office. Dated: April 23, 2007. James C. Alsop, Acting Administrator, Rural Housing Service. [FR Doc. E7-8157 Filed 4-27-07; 8:45 am] BILLING CODE 3410-XV-P DEPARTMENT OF AGRICULTURE Rural Housing Service Notice of Funding Availability: Section 515 Multi-Family Housing Preservation and Revitalization Restructuring Program

(MPR)for Fiscal Year 2007 AGENCY: Rural Housing Service, USDA. ACTION: Notice. *Announcement Type:* Inviting applications from eligible applicants for Fiscal Year 2007 funding. *Catalog of Federal Domestic Assistance Number (CFDA):* 10.447. SUMMARY: USDA Rural Development administers the programs of Rural Housing Service

(RHS)announces the availability of funds and the timeframe to submit applications to participate in a demonstration program to preserve and revitalize existing rural rental housing projects financed by Rural Development under Section 515 of the Housing Act of 1949. The intended effect is to restructure selected existing Section 515 loans expressly for the purpose of ensuring that sufficient resources are available to preserve the rental project for the purpose of providing safe and affordable housing for very low-, low-, or moderate-income residents. Expectations are that properties participating in this program will be revitalized and affordable use extended without displacing tenants because of increased rents. No additional Rural Development rental assistance units will be made available under this program. DATES: The deadline for receipt of all pre-applications in response to this Notice of Funding Availability

(NOFA)is 5 p.m., Eastern Time, May 30, 2007. The pre-application closing deadline is firm as to date and hour. The Agency will not consider any pre-application that is received after the closing deadline. Applicants intending to mail pre-applications must allow sufficient time to permit delivery on or before the closing deadline. Acceptance by a post office or private mailer does not constitute delivery. Facsimile

(FAX)and postage-due pre-applications will not be accepted. FOR FURTHER INFORMATION CONTACT: Carlton Jarratt, *carlton.jarratt@wdc.usda.gov* ,

(804)561-0665; Sherry Engel, *sherry.engel@wi.usda.gov*

(715)345-7677; or Sandra Mercier, *sandra.mercier@wdc.usda.gov*

(202)720-1617, Senior Loan Specialists, Multi-Family Housing Office of Rental Housing Preservation, STOP 0782, (Room 1263-S), U.S. Department of Agriculture, Rural Housing Service, 1400 Independence Avenue, SW., Washington, DC 20250-0782. (Please note these phone numbers are not toll free numbers.) SUPPLEMENTARY INFORMATION: Paperwork Reduction Act The information collection requirements contained in this Notice have received approval from the Office of Management and Budget

(OMB)under Control Number 0570-0190. Overview The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2007 (Pub. L. 110-5), February 15, 2007, provides funding for and authorizes Rural Development to conduct a demonstration program for the preservation and revitalization of the Section 515 multi-family housing portfolio. The Section 515 multi-family housing program is authorized by Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) and provides Rural Development the authority to make loans for low-income multi-family housing and related facilities. Program Administration I. Funding Opportunities Description This NOFA solicits pre-applications from eligible borrowers/applicants to restructure existing multi-family housing within the Agency's Section 515 multi-family housing portfolio for the purpose of revitalization and preservation. The demonstration program shall be referred to in this notice as the Multi-Family Housing Preservation and Revitalization Restructuring Demonstration

(MPR)program. Agency regulations for the Section 515 multi-family housing program are published at 7 CFR part 3560. The MPR is intended to assure that existing rental projects will continue to deliver decent, safe, and sanitary affordable rental housing for the lesser of the remaining term of the loan or 20 years from the date of the MPR transaction closing. Once an applicant has been confirmed eligible and the project has been selected by the Agency in the process described in this notice, and the applicant agrees to participate in the MPR demonstration by written notification to the Agency, an independent third party capital needs assessment

(CNA)will be conducted to provide a fair and objective review of projected capital needs. The Agency shall implement this NOFA through an MPR Conditional Commitment (MPRCC) with the eligible borrower, which will include all the terms and conditions under this NOFA, including the MPR Debt Deferral Agreement. The primary restructuring tool to be used in this program is debt deferral up to 20 years of the existing 1% Section 515 loans obligated prior to October 1, 1991. The cash flow from the deferred payment will be deposited to the reserve account to help meet the future physical needs of the property. If the resulting cash flow is not adequate to address the long-term needs of the project, the Agency may use the following sources of funds:

(1)Other Agency restructuring tools as discussed below;

(2)Section 515 Rehabilitation loan funds; and

(3)Third party funds in the form of grants, tax credits, tax exempt financing, owner-provided rehabilitation funds, Rural Development Section 538 Guaranteed Rural Rental Housing Program financing, and financing from loan funds established through the Rural Development Section 515 Multi-Family Housing Preservation Revolving Loan Fund Demonstration Program. For the purposes of the MPR, the restructuring transactions will be identified in three categories:

(1)Simple transactions involve no change in ownership.

(2)Complex transactions will consist of a property transfer to new ownership processed in accordance with 7 CFR 3560.406, or transactions requiring a subordination agreement as a result of third party funds.

(3)Portfolio Sale transactions that are defined as multiple project sale transactions with a common purchaser all within one state closed no earlier than September 30, 2006. Each category may utilize any or all restructuring tools. Restructuring tools that may be available to address capital needs during the MPR demonstration based on the capital needs assessment process and the underwriting feasibility determination. Restructuring tools include:

(1)*Debt Deferral:* A deferral of the existing Agency debt for the lesser of the remaining term of the loan or 20 years. All terms and conditions of the deferral will be described in the MPR Debt Deferral Agreement. A balloon payment of accrued principal and interest will be due at the end of the deferral period. Interest will accrue at the promissory note rate and subsidy will be applied as set out in the Agency's Interest Credit Agreement. Interest will not be charged on the deferred interest.

(2)*Revitalization Grant:* A revitalization grant (for non-profit applicants/borrowers only), is limited to the cost of correcting health and safety violations as identified by the CNA. The grant administration will be in accordance with 7 CFR part 3015.

(3)*Rehabilitation Loan:* A rehabilitation loan at zero percent interest that will be amortized over 30 years.

(4)*Bullet Loan:* A loan with a one percent interest rate that will have its interest and principal deferred, to a balloon payment, due at the time the latest maturing Section 515 loan becomes due.

(5)*Additional Section 515 Loan:* A Section 515 rehabilitation loan at traditional rates and terms.

(6)*Regulatory Approvals:* Transfers, subordinations, and consolidations may be approved as part of a MPR transaction in accordance with existing servicing authorities of the Agency as available in 7 CFR part 3560. While all non-deferred Agency debt, either in first lien position or a subordinated lien position, must be secured within market value, deferred debt may exceed market value of the security. Payment of the deferred debt will not be required from normal project operation income, but from excess cash from project operations and the value of the property after all other secured debts are satisfied.

(1)*Pre-application:* Applicants must submit a pre-application described in Section VI. This pre-application process is designed to lessen the cost burden on applicants who may not be eligible or whose proposals may not be feasible.

(2)*Eligible Properties:* Using criteria described below in Section III, USDA will conduct an initial screening for eligibility. As described in Section VIII, USDA will conduct additional eligibility screening later in the process.

(3)*Scoring and Ranking:* All eligible, complete and timely-filed pre-applications will be scored, ranked and put in funding queues as discussed in Sections VI and VII.

(4)*Formal Application:* Top ranked pre-applicants will be invited to submit a formal application. As discussed in Section VIII paragraph

(2)of this notice, USDA will require the owner to provide a Capital Needs Assessment

(CNA)in order to determine the mix of tools to be offered to the applicant, perform additional eligibility review, and underwrite the proposal to determine financial feasibility. Where proposals are found to be ineligible or financially infeasible, owners will be informed and proposals lower in the queue will be considered.

(5)*Financial Feasibility:* Using the results of the CNA to help identify the need for resources and applicant provided information regarding anticipated or available third party financing, the Agency will determine the financial feasibility of each potential transaction, using restructuring tools available either through existing regulatory authorities or specifically authorized through this demonstration program. Project financial feasibility is determined when a property can provide affordable, safe, decent, and sanitary housing for 20 years or the remaining term of the loan whichever is less, by using the authorities of this program while minimizing the cost to the Agency and without increasing rents for tenants, except when necessary to meet normal and necessary operating expenses. If the transaction is determined financially feasible by the Agency, the borrower will be offered a restructuring proposal, which will include the requirement that the borrower will execute, for recordation, a restrictive use covenant consistent with 7 CFR 3560.662. The restructuring proposal will be established in the form of the MPR Conditional Commitment (MPRCC). MPR Agreements: If accepted by the borrower, the Agency and applicant will enter into a MPRCC. The applicant must also agree to restrict the property use pursuant to 7 CFR 3560.662 when the MPR transaction is closed. Any third party lender will be required to subordinate to the Agency's restrictive use covenant unless the Agency determines on a case-by-case basis that the lender refuses to subordinate and such refusal will not compromise the purpose of the MPR. The Agency may also request that the applicant sign an agreement that would require the owner to escrow reserve, tax, and insurance payments in accordance with all pertinent current and future Agency regulations. General Requirements: The MPR transactions may be conducted with a stay-in owner (simple) or may involve a change in ownership (complex or portfolio sale). Any housing or related facilities that are constructed or repaired must meet the Agency design and construction standards and the development standards contained in 7 CFR part 1924, subparts A and C, respectively. Once constructed, Section 515 multi-family housing must be managed in accordance with 7 CFR part 3560. Tenant eligibility will be limited to persons who qualify as a very low- or low-income household under Agency regulations or who are eligible under the requirements established to qualify for housing benefits provided by sources other than the Agency, such as U.S. Department of Housing and Urban Development Section 8 assistance or Low Income Housing Tax Credit Assistance, when a tenant receives such housing benefits. Additional tenant eligibility requirements are contained in 7 CFR 3560.152. Voluntary Community Market Rent Demonstration: In conjunction with this demonstration, Rural Development also announces the opportunity for all successful applicants to participate on a voluntary basis in a viability test of a 30 percent limitation on tenant rents, as proposed in Section 544(b)(7) of Saving America's Rural Housing Act of 2006, H.R. 5039, for post-restructured properties. Owners of properties in the Section 515 restructuring program may elect to participate in the “community market rent” demonstration which will allow an owner to set a rent above the approved basic rent for any unit not currently occupied by a tenant receiving Rural Development rental assistance. Eligible tenants for these units must have adjusted annual incomes sufficient to allow them to pay the community market rent using less than 30 percent of their adjusted income. Tenants would be allowed to occupy without paying overage, additional sums that would otherwise be required to bring their rent payment up to 30 percent of income. With Rural Development's consent, up to 50 percent of the difference between the basic rent and the new “community market rent” could be retained by the owner as an increased return. For example, if the basic rent is $350, the owner could create a community market rent at, say, $410, and market the unit to tenants who could pay that rent at less than 30 percent of adjusted income. A percentage of the difference, $60.00 could be retained by the owner, as negotiated with Rural Development, up to $30.00. Prior to implementation of the community market rent demonstration, Rural Development will issue guidance to successful applicants who have indicated an interest in participating in the demonstration providing further details with respect to the program. II. Award Information Public Law 110-5 makes funding available to the Secretary of Agriculture for Rural Development to provide the restructuring tools of the MPR demonstration. Approximately $8,900,000 in budget authority will be available during FY 2007. Additionally, up to $70,000,000 in Section 515 funding may be made available for properties selected to participate in the MPR. Based on an identical level of budget authority made available for the MPR last fiscal year, the Agency 2006 funded approximately $47,795,000 in deferred debt, $210,000 in grants, $280,000 in zero percent loans, $4,473,000 in bullet loans. The Agency anticipates the ability to revitalize approximately 200 properties (5,500 units) with the funds available during FY 2007. Once the funding levels for this program are determined, a subsequent notice will be published in the **Federal Register** announcing them. Funding levels may differ from above when necessary to assure that the Agency maximizes the value of the funds available and that all funds are used. All funding must be approved no later than September 24, 2007 and obligated by the Agency not later than September 28, 2007. If funds available for the MPR are fully used before all properties approved under this NOFA are funded, the unfunded approved properties may receive priority for funding from future resources available for MFH revitalization if additional funds become available and the selected properties/owners meet any future eligibility criteria. III. Eligibility Information Applicants (and the principals associated with each applicant) must meet the following requirements:

(1)Eligibility under 7 CFR 3560.55; however, the requirements described in 7 CFR 3560.55(a)(5) pertaining to required borrower contributions and CFR 3560.55(a)(6) pertaining to required contributions of initial operating capital are waived for MPR proposals.

(2)That the project is needed in the market as evidenced by an average physical vacancy rate over the twelve months preceding the filing of the pre-application of no more than 10 percent for projects of 16 units or more and 15 percent for projects under 16 units. The Agency may consider and accept documentation submitted by the applicant that demonstrates the occupancy standard will be met once a restructuring is performed. The documentation must include a copy of a market study performed according to 7 CFR 3560.56(d)(2) and the guidance provided in HB-1-3560, Attachment 4-F. The cost of the market study will NOT be considered a part of the project expense.

(3)Ownership of and ability to operate the facility after the transaction is completed. (In the event of a transfer, the proposed transferee with an executed purchase agreement or other evidence of site control will be the applicant.)

(4)Compliance with any commitment to contribute funds to pay transaction costs as represented at the time of application for the MPR program.

(5)A CNA and Agency financial evaluation must demonstrate that utilization of the restructuring tools of the MPR program is financially feasible and necessary for the revitalization and preservation of the property for affordable housing. Eligibility for processing will be determined as of the date of the pre-application filing deadline. The Agency reserves the right to discontinue processing in the event that material changes in the applicant's status occurs any time after the initial determination. IV. Equal Opportunity and Nondiscrimination Requirements

(1)Borrowers and applicants will comply with the provisions of 7 CFR 3560.2.

(2)All housing must meet the accessibility requirements found at 7 CFR 3560.60(d).

(3)All MPR participants must have on file a valid Form RD 400-1, “Equal Opportunity Agreement” and Form RD 400-4, “Assurance Agreement.” V. Authorities Available for MPR MPR tools will be used in accordance with 7 CFR part 3560 and its associated handbooks (available in any Rural Development office). The program will be administered within the resources made available to the Agency through Pub. L. 110-5 for the preservation and revitalization of Section 515 financed properties. In the event that provisions of 7 CFR part 3560 conflict with this demonstration program, the provisions of the MPR will take precedence. VI. Application and Submission Information

(1)The application submission and scoring process will be completed in two phases in order to avoid unnecessary effort and expense on the part of interested borrowers/applicants and to allow additional points to be added to applications that propose a transfer of a troubled project to an eligible owner. The first phase is the pre-application process. The applicant must submit a complete pre-application by the deadline date under the “ DATES ” section of this Notice. The applicant's submission will be classified complete when a “pre-application” is received by MFH for each MPR proposal the applicant wishes to be considered in the demonstration. In the event the MPR proposal involves either a project consolidation completed in accordance with 7 CFR 3560.410 or a portfolio sale only one pre-application for the proposal will be required so long as the proposal lists all the properties to be consolidated or purchased as a portfolio. The form to be used for the pre-application is “MPR Pre-application” and is attached at the end of this Notice. An electronic version of this form may be found on the internet at *http://www.rurdev.usda.gov/rd/nofas/index.html.* Information must be provided, as indicated on the MPR pre-application, showing the breakdown of funding sources, type and probability of third party money, borrower names and identification numbers, project names and numbers, and property locations of all properties being consolidated and included in the transaction. Additional information that must be provided with the pre-application, when applicable, includes:

(i)A copy of a Purchase agreement or other evidence of site control if a transfer is being considered.

(ii)Evidence of need for property if occupancy standards are not met, which could include a copy of a market study. The second phase of the application process will be completed by the Agency based on Agency records and the pre-application information. Points as set forth below will only be assigned to eligible pre-applications. Additional points will be assigned when the proposal involves a transfer to a new eligible owner and the property is currently classified by the Agency as a troubled property; or to an eligible “stay-in owner” when the property is classified by the Agency as a troubled property AND there is an approved workout plan in place that was approved prior to January 1, 2007. All eligible, complete, and timely-filed pre-applications will then be scored and ranked based on points received during this two-phase application process. Further, the Agency will categorize each MPR proposal as being potentially Simple, Complex, or Portfolio Sale based on the information submitted on the pre-application and in accordance with the category description provided in Section I of this Notice.

(2)Pre-applications can be submitted either electronically or in hard copy. The Agency will record pre-applications received electronically by the actual date and time received in the website mail box. Hard copy pre-applications received on the deadline date will receive the close of business time of the day received as the receipt time. Assistance for filing electronic and hard copy pre-applications can be obtained from any Rural Development State Office. The pre-application is stored in the form of a .pdf format and may be completed as a fillable form. The form contains a button labeled “Submit by Email”. Clicking on the button will result in an e-mail containing a completed pre-application being sent to the Office of Rental Housing Preservation in Washington, DC for consideration. Pre-application forms may be downloaded from the site given in Section VI, paragraph

(1)above or obtained by contacting the State Office in the state the project is located. Hard copy pre-applications and electronic submittals should be submitted to the attention of Sandra L. Mercier, Senior Loan Specialist, Multi-Family Housing Office of Rental Housing Preservation-STOP 0782 (Room 1263-S), or Ed Duval, Chief, Operations Research and Systems Development Branch-STOP 0782 (Room 1263-S), U.S. Department of Agriculture, Rural Housing Service, 1400 Independence Avenue, SW., Washington, DC 20250-0781 Note: All documents must be received on or before the pre-application closing deadline to be considered complete and timely filed. Pre-applications that are incomplete as of the closing deadline will not be considered and will be returned to the applicant with no appeal rights. VII. Selection Process Pre-application ranking points will be based on information provided during the submission process and in Agency records. Points will be awarded as follows:

(1)*Contribution of third party funds.* Third party funds are those discussed in the second paragraph of Section I “Funding Opportunities Description”. Points awarded are to be based on documented written evidence that the third party funds are available or they will be available by October 1, 2008 or closing, whichever is first. The maximum points awarded for this criterion is 25 points. These points will be awarded in the following manner:

(i)Owner contribution (these funds cannot be from project reserve or operating funds) sufficient to pay transaction costs. Transaction costs are defined as those soft costs required to complete the transaction and include, but are not limited to, the CNA, legal and closing costs, appraisal costs and filing/recording fees. The minimum contribution required to receive these points is $5,000 and will be required to be deposited in the property reserve account prior to closing—5 points, and

(ii)Evidence of intent that meets the approval of the Agency to obtain a commitment greater than $5,000 per unit from other sources—10 points . (An example of evidence to obtain a commitment might be an application for the Low Income Housing Tax Credit Program), or

(iii)A commitment of at least $3,000 to $5,000 per unit from other sources—15 points, or

(iv)A commitment greater than $5,000 per unit from other sources—20 points.

(2)*Age of project.* Since the age of the project and the date that the loan was made are directly related to physical needs, a maximum of 25 points will be awarded on the following criteria:

(i)Initial loans closed prior to December 21, 1979—25 points.

(ii)Initial loans closed on or after December 21, 1979, but before December 15, 1989—20 points.

(iii)Initial loans closed on or after December 15, 1989, but before October 1, 1991—15 points. Note: For multiple property transactions, the closing date of the earliest loan will be used.

(3)*Troubled project points.* The Agency may award up to 25 additional points to facilitate the transfer and revitalization of troubled projects with an Agency classification of “C” or “D” according to HB 2-3560, Paragraph 9.7 (available at *http://www.rurdev.usda.gov/regs/hblist.html* ). Troubled properties that are classified “B” and do not involve a transfer will also receive consideration. These projects may be troubled due to an act of nature or physical or financial deterioration or to correct management issues. Points will be awarded in the following manner:

(i)If the Agency servicing classification is C or D for less than 24 months—15 points.

(ii)If the Agency servicing classification is C or D for more than 24 months—20 points.

(iii)For Stay-in Owners only: If the Agency servicing classification is B as a result of a workout plan approved by the agency prior to January 1, 2007—25 points.

(4)*Prior Agency approvals.* The Agency will award up to 20 points for properties with CNAs already approved by the Agency. Points will be awarded for:

(i)CNAs approved after October 1, 2005 and *prior* to October 1, 2006—20 points.

(ii)CNAs approved *after* October 1, 2006 but before April 1, 2007—10 points.

(5)*Energy generation.* Applicants will be awarded 5 points if the proposal includes the installation of energy generation systems to be funded by a third party. The proposal must include an overview of the energy generation system being proposed. Evidence that an energy generation system has been funded by a third party and that it has a quantifiable positive impact on energy consumption will be required.

(6)*Tenant service provision.* The Agency will award 10 points for applications that include new services provided by a non-profit organization, which may include a faith-based organization, or by a Government agency. Such services shall be provided at no cost to the project and shall be made available to all tenants. Examples of such services are transportation for the elderly, after-school day care services or after-school tutoring, etc. The Agency will total the points awarded to each pre-application received within the timeframes of this Notice and rank each pre-application according to total score. If point totals are equal, the earliest time and date the pre-application was received by the Agency will determine the ranking. In the event pre-applications are still tied, they will be further ranked by giving priority to those pre-applications with the earliest Rural Development loan closing date. Eligibility will then be confirmed on the 10 highest-scoring pre-applications in each State. If one or more of the 10 highest-scoring pre-applications is determined ineligible, (i.e. the applicant is a borrower that is not in good standing with the Agency or has been debarred or suspended by the Agency, etc.) the next highest-scoring pre-application will be confirmed for eligibility. If one or more of the highest ranking pre-applications is a portfolio sale, then eligibility determinations will be conducted on all of the pre-applications associated with the portfolio sale. Should any of the pre-applications associated with the portfolio sale be determined ineligible, the overall eligibility of the portfolio sale will not be affected as long as the definition in Section I “Funding Opportunities Description”, of “portfolio sale” is still met. Once ranking has been established, the Agency will conduct a five-step process to select pre-applications for submission of formal applications. This process is needed to assure that the Agency can process the proposed transactions within available staffing resources, develop a representative sampling of revitalization transaction types, assure geographic distribution, and assure an adequate pipeline of transactions to use all available funding. *Step One:* The Agency will review the eligible pre-applications, identify pre-applications as either Simple, Complex or Portfolio Sale and separate them by state. *Step Two:* For portfolio sale transactions, the Agency will re-calculate an average score for each portfolio sale transaction and then score and separately rank the simple, complex and portfolio sale transactions. *Step Three:* The Agency will select, for further processing, the top-ranked portfolio sale transactions until a total of $100,000,000 in potential debt deferral is reached. Portfolio sale transactions will be limited to one per State. *Step Four:* The highest ranked complex transaction in each State will be selected for further processing, not to exceed 3 per State. *Step Five:* For those states not having a portfolio transaction and at least two eligible complex transactions, additional projects will be selected from the highest ranking eligible pre-applications involving simple transactions in that state, seeking a minimum of 4 pre-applications for MPR transactions per state. VIII. Processing for Selected Pre-applications Those proposals that are ranked and then selected for further processing will be invited to submit a formal application on SF 424 “Application for Federal Assistance.” Those proposals that are rejected by the Agency will be returned to the applicant and the applicant will be given appeal rights pursuant to 7 CFR Part 11. In the event that a proposal is selected for further processing and the pre-applicant declines, the next highest ranked pre-application in that state will be selected. Applications can be obtained and completed on line. An electronic version of this form may be found on the internet at *http://forms.sc.egov.usda.gov/eforms/mainservlet* and can be submitted either electronically or in hard copy. If a pre-application is accepted for further processing, the applicant will be expected to submit additional information needed to demonstrate eligibility and feasibility (such as a CNA), consistent with this NOFA and the appropriate sections of 7 CFR part 3560, prior to the issuance of a restructuring offer. Rural Development will work with pre-applicants selected for further processing in accordance with the following steps:

(1)Based on the feasibility of the type of transaction that will best suit the project and the availability of funds, further eligibility confirmation determinations will be conducted by the designated Multi-Family Housing Revitalization Coordinators assigned by each Rural Development State Director with the assistance of the Office of Rental Housing Preservation.

(2)If one is not already available to the Agency, a CNA will be required and conducted in accordance with the requirements of 7 CFR 3560.103(c), HB 3-3560, Chapter 7, “Guidance on the Capital Needs Assessment Process,” and the CNA Statement of Work (available in any Rural Development State Office.) A CNA is prepared by a qualified independent contractor and is obtained to determine needed repairs and any necessary adjustments to the reserve account for long-term project viability. While the requirements of the CNA are described in the materials referenced above, at a minimum, to be considered acceptable, a CNA must include:

(i)A physical inspection of the site, architectural features, common areas and all electrical and mechanical systems,

(ii)An inspection of a sample of dwelling units;

(iii)Identify repair or replacement needs,

(iv)Provide a cost estimate of the repair and replacement expenses, and

(v)Provide at least a 20-year analysis of the timing and funding for identified needs which includes reasonable assumptions regarding inflation. The cost of the CNA will be considered a part of the project expense and may be paid from the “project reserve” with prior approval of the Agency. The Agency approval for participation in this program will be contingent upon the Agency's final approval of the CNA and concurrence in the scope of work by the owner. The Agency, in its sole discretion, may choose to obtain a CNA, at its expense, if it determines that doing so is in the best interest of the Government.

(3)Underwriting will be conducted by the designated Multi-Family Housing Revitalization Coordinator assigned by each Rural Development State Director with the assistance of the Office of Rental Housing Preservation. The feasibility and structure of each revitalization proposal will be determined using this underwriting process and will include a determination of the restructuring tools that will minimize the cost to the Government consistent with the purposes of this NOFA. To help assure a balanced utilization of revitalization tools and the long-term economic viability of revitalized projects, the MPR underwriting guidelines include, but are not limited to the following:

(i)The maximum bullet loan is limited to no more than $5,000 per unit,

(ii)The total assistance provided from a revitalization grant, rehabilitation loan, and/or a bullet loan is limited to $10,000 per unit,

(iii)The maximum Section 515 one percent loan is limited to no more than $20,000 per unit,

(iv)Properties receiving tax credits are expected to have sufficient funding sources and generally will receive debt deferral only.

(4)Properties with more than 75 percent of the units receiving deep tenant subsidy such as Rural Development rental assistance or HUD-funded tenant subsidy will be supplemented with rehabilitation loans and Section 515 loans before grant and bullet loans are considered,

(5)Grants will be limited to $5,000 per unit,

(6)Any rent increases that may be necessary will not exceed 10 percent in any one year,

(7)The approved MPR transaction will include projected revenue sufficient to cover a 10 percent Operations and Maintenance increase in the second year after the transaction,

(8)Full return to owner will be budgeted pursuant to the Loan Agreement,

(9)Budgeted increases to reserve deposit will not exceed 3 percent per annum,

(10)The remaining reserve balance at the end of the 20-year analysis period should be at least 2.0 times the average annual needs, including inflation, over the 20-year analysis period. These guidelines have been developed based on experience in the FY 2005 and FY 2006 Demonstrations. The Agency believes that these guidelines will be appropriate for typical transactions. However, the Agency reserves the right to waive any of the guidelines if, in the Agency's judgment, doing so would further the objectives of the Demonstration and is in the best interest of the Government. The Agency expects that some of the transactions proposed by selected pre-applicants will prove to be infeasible. The applicant entity may be determined to be ineligible under Section III of this Notice. If a proposed transaction is determined infeasible or the applicant determined ineligible, the Agency will then select the next highest ranked project for processing. Each MPR offer will be approved by the Revitalization Review Committee chaired by the Deputy Administrator for Multi-Family Housing or an agency-authorized delegate. Approved MPR offers will be presented to applicants who will then have up to 15 calendar days to accept or reject the offer in writing. Offers will expire after 15 days. The Agency will replace expired applications by selecting the next highest ranked project. Closing of MPR offers will occur within 90 days of acceptance by the applicant unless extended by the Agency. IX. Funding Restrictions Applicants will be selected in accordance with selection criteria and the five-step process identified in Section VII of this Notice. Once selected to proceed, the Agency will provide additional guidance to the applicant and request information and documents necessary to complete the underwriting and review process. Since the character of each application may vary substantially depending on the type of transactions proposed, information requirements will be provided as appropriate. Complete project information must be submitted as soon as possible but in no case later than 45 days from the date of Agency notification of the applicant's selection for further processing or September 1, 2007, whichever occurs first. Failure to submit the required information in a timely manner may result in the Agency discontinuing the processing of the request. Funding under this NOFA will be obligated to selectees that finish the processing steps outlined above first within each of the 3 funding queues described in Section VII of this Notice and to result in a ratio as close as possible to 30 percent portfolio sale transactions, 50 percent complex transactions, and 20 percent simple transactions. X. Application Review A review committee will make recommendations for final decision regarding funding to the appropriate Rural Development State Director based on the selection criteria contained in this NOFA. XI. Appeal Process All adverse determinations regarding applicant eligibility and the awarding of points as a part of the selection process are appealable. Instructions on the appeal process will be provided at the time an applicant is notified of the adverse action. Dated: April 20, 2007 Russell T. Davis, Administrator, Rural Housing Service. [FR Doc. E7-8148 Filed 4-27-07; 8:45 am] BILLING CODE 3410-XV-P DEPARTMENT OF COMMERCE Economic Development Administration Notice of Petitions by Firms for Determination of Eligibility To Apply for Trade Adjustment Assistance AGENCY: Economic Development Administration, Department of Commerce. ACTION: Notice and opportunity for public comment. Pursuant to Section 251 of the Trade Act of 1974 (19 U.S.C. 2341 *et seq.* ), the Economic Development Administration

(EDA)has received petitions for certification of eligibility to apply for Trade Adjustment Assistance from the firms listed below. EDA has initiated separate investigations to determine whether increased imports into the United States of articles like or directly competitive with those produced by each firm contributed importantly to the total or partial separation of the firm's workers, or threat thereof, and to a decrease in sales or production of each petitioning firm. List of Petitions Received by EDA for Certification of Eligibility To Apply for Trade Adjustment Assistance for the Period March 21, 2007 Through April 20, 2007 Firm Address Date petition accepted Product Romarc Corporation *32 Appletree Lane, Plumsteadville, PA 18949* 3/30/2007 *Sheet plastic and structural foam.* Dakota Granite Company *14964 484th Ave., Milbank, SD 57252* 4/13/2007 *Cut stone.* Nisbet Oyster Co., Inc *PO Box 338, 7081 Niawaukum St. Hwy 101, Bay Center, WA 98527* 4/2/2007 *Shucked fresh oysters.* TMI Industries, Inc *PO Box 968, 25 Ware Road, Palmer, MA 01069* 3/27/2007 *Machine braided and hand hooked rugs.* Wirefab, Inc *75 Blackstone River Road, Worcester, MA 01607* 3/29/2007 *Custom steel wire products in hospitality markets.* Lakeshore Technologies, Inc *7536 Murray Drive, Cicero, NY 13039* 3/28/2007 *Medical imaging processing systems and cameras.* Pecos Cantaloupe Shed, Inc *2101 Bickley Avenue, Pecos, TX 79772* 4/19/2007 *Sale and marketing of cantaloupes.* Liberty Hearth, Inc *301 Locust Ave., Oakdale, NY 11769* 4/18/2007 *Frozen baked bagels.* Foulke Family Farm *P.O. Box 64, 12145 Elkins Rd., Monmouth, OR 97361* 4/17/2007 *Hazelnuts in the shell.* Dakota Lettering, Inc 3400 *South Sheldon Lane, Sioux Falls, SD 57105* 4/18/2007 *Custom apparel designs with screen printing on fabric articles and embroidery advertising.* Tiyoda Serec Corporation *342 Compass Circle, Unit 2, N. Kingstown, RI 02852* 4/18/2007 *Precision and industrial cleaning machinery.* Snokist Growers *12 West Mead, P.O. Box 1587, Yakima, WA 98907* -1587 4/19/2007 *Canned pears.* Eastman Hill Holdings, Inc *70 Ingersoll Drive, Portland, Maine 04103* 4/19/2007 *Professional grade lawn and landscaping equipment.* Software Services Group, Ltd. Dba ISODISC *7030 North 97th Plaza Circle, Omaha, NE 68122* 4/19/2007 *Magnetic and optical discs.* P.W. Minor & Son, Inc *3 Treadeasy Avenue, Batavia, NY 14021-0678* 4/19/2007 *Manufacture of Orthopedic Shoes.* Wening Enterprises, Inc *201 E. Industrial Drive, New Haven, MO 63068* 4/19/2007 *Tractor trailer suspension parts and sunroofs.* Any party having a substantial interest in these proceedings may request a public hearing on the matter. A written request for a hearing must be submitted to the Office of Performance Evaluation, Room 7009, Economic Development Administration, U.S. Department of Commerce, Washington, DC 20230, no later than ten

(10)calendar days following publication of this notice. Please follow the procedures set forth in § 315.9 of EDA's final rule (71 FR 56704) for procedures for requesting a public hearing. The Catalog of Federal Domestic Assistance official program number and title of the program under which these petitions are submitted is 11.313, Trade Adjustment Assistance. Dated: April 24, 2007. William P. Kittredge, Program Officer for TAA. [FR Doc. 07-2100 Filed 4-27-07; 8:45 am]

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