section_id,title_number,title_name,chapter,subchapter,part_number,part_name,subpart,subpart_name,section_number,section_heading,agency,authority,source_citation,amendment_citations,full_text 7:7:13.1.1.1.5.10.1.1,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.651 General.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26208, May 13, 1997]","(a) This subpart sets forth the policies and procedures for making grants under section 533 of the Housing Act of 1949, 42 U.S.C. 1490(m), to provide funds to eligible applicants (hereafter also referred to as grantee(s)) to conduct housing preservation programs benefiting very low- and low-income rural residents. Program funds cover part or all of the grantee's cost of providing loans, grants, interest reduction payments or other assistance to eligible homeowners, owners of single or multiple unit rental properties or for the benefit of owners (as occupants) of consumer cooperative housing projects (hereafter also referred to as co-ops). Such assistance will be used to reduce the cost of repair and rehabilitation, to remove or correct health or safety hazards, to comply with applicable development standards or codes, or to make needed repairs to improve the general living conditions of the resident(s), including improved accessibility by handicapped persons. Such assistance will be used to reduce the cost of repair and rehabilitation, to remove or correct health or safety hazards, to comply with applicable development standards or codes, or to make needed repairs to improve the general living conditions of the residents, including improved accessibility by persons with a disability. Individual housing that is owner occupied may qualify for replacement housing when it is determined by the grantee that the housing is not economically feasible for repair or rehabilitation. (b) The Rural Housing Service (RHS) will provide Housing Preservation Grant (HPG) assistance to grantees who are responsible for providing assistance to eligible persons without discrimination because of race, color, religion, sex, national origin, age, familial status, or disability. (c) The preapplication must only address a proposal to finance repairs and rehabilitation activities to individual housing or rental properties or co-ops. Any combination proposal will not be accepted. (d) Any processing or servicing activity conducted pursuant to this subpart involving authorized assistance to RHS employees, members of their families, known close relatives, or business or close personal associates, is subject to the provisions of subpart D of part 1900 of this chapter. Applicants for this assistance are required to identify any known relationship or association with an RHS employee." 7:7:13.1.1.1.5.10.1.10,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.660 Authorized representative of the HPG applicant and Rural Development point of contact.,RHS,,,,"(a) Rural Development will deal only with authorized representatives designated by the HPG applicant. (b) The State Director will designate either the State Office and/or the District Office as the processing office and/or the servicing office for the HPG program. The State Director's selection may be based on staffing, total program size, number of preapplications anticipated, type of applicants, or similar criteria. The State Director must publish this designation each year at the time the Federal Register is published informing the public of the open period for acceptance of preapplications as outlined in § 1944.678 of this subpart." 7:7:13.1.1.1.5.10.1.11,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.661 Individual homeowners—eligibility for HPG assistance.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26209, May 13, 1997]","The individual homeowners assisted must have income that meets the very low- or low-income definitions, be the owner of an individual dwelling at least 1 year prior to the time of assistance, and be the intended occupant of the dwelling subsequent to the time of assistance. The dwelling must be located in a rural area and be in need of housing preservation assistance. Each homeowner is required to submit evidence of income and ownership for retention in the grantee's files. (a) Income. Determination of income will be made in accordance with 7 CFR 3550.54(c). All members of the household, as defined in § 1944.656 of this subpart, must be included when determining income. Grantees must use certifications, may require additional information from the homeowner, and should seek advice from their attorney. (b) Ownership. Evidence of ownership may be a photostatic copy of the instrument evidencing ownership. Methods for assuring the intention of the homeowner to continue to occupy the unit after assistance will be established by the grantee. Any of the following will satisfy or fulfill this requirement of ownership: (1) Full marketable title. (2) An undivided or divided interest in the property to be repaired, rehabilitated, or replaced when not all of the owners are occupying the property. HPG assistance may be made in such cases when: (i) The occupant has been living in the house for at least 1 year prior to the date of requesting assistance; (ii) The grantee has no reason to believe the occupant's position of owner/occupant will be jeopardized as a result of the improvements to be made with HPG funds; and (iii) In the case of a loan, and to the extent possible, the co-owner(s) should also sign the security instrument. (3) A leasehold interest in the property to be repaired, rehabilitated, or replaced. When the potential HPG recipient's “ownership” interest in the property is based on a leasehold interest, the lease must be in writing and a copy must be included in the grantee's file. The unexpired portion of the lease must not be less than 5 years and must permit the recipient to make modifications to the structure without increasing the recipient's lease cost. (4) A life estate, with the right of present possession, control, and beneficial use of the property. (5) Land assignments may be accepted as evidence of ownership only for American Indians living on a reservation, when historically the permits have been used by the tribe and have had the comparable effect of a life estate. (c) Other evidence of ownership. The following items may be accepted as evidence of ownership if a recorded deed cannot be provided: (1) Any legal instrument, whether or not recorded, which is commonly considered evidence of ownership. (2) Evidence that the person(s) receiving assistance from the HPG grantee is listed as the owner of the property by the local taxing authority and is responsible for any real estate taxes. (3) Affidavits by others in the community that the person(s) receiving assistance from the HPG grantee has occupied the property as the apparent owner for a period of not less than 10 years, and is generally believed to be the owner." 7:7:13.1.1.1.5.10.1.12,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.662 Eligibility of HPG assistance on rental properties or co-ops.,RHS,,,,"(a) Ownership. The owner(s) of rental properties or co-ops must own the dwelling at the time of receiving assistance from the HPG grantee. The dwelling must be located in a rural area and be in need of housing preservation assistance. Evidence of ownership may be a photostatic copy of the instrument evidencing ownership. Owners of rental properties and co-ops are required to submit evidence of ownership for retention in the grantee's files. Any of the following will satisfy or fulfill this requirement of ownership: (1) Full marketable title. (2) An undivided or divided interest in the property to be repaired or rehabilitated. (3) A leasehold interest in the property to be repaired or rehabilitated. Ownership interest in the property is based on a leasehold interest. The lease must be in writing and a copy must be included in the grantee's file. The unexpired portion of the lease must not be less than 5 years and must permit the recipient to make modifications to the structure without increasing the recipient's lease cost. (4) Land assignments may be accepted as evidence of ownership only for American Indians living on a reservation, when historically the permits have been used by the tribe and have had the comparable effect of a life estate. (b) Tenant eligibility. The following requirements must be met in order for a unit within a rental property or co-op to be assisted with HPG funds: (1) The tenant must have income that meets the very low- or low-income definition. (2) The tenant must be the intended occupant of the unit, but is not required to have resided previously in the dwelling. (3) Any owner(s) who receives assistance from an HPG grantee or a member of the immediate family of the owner(s), who also resides in the unit within the dwelling to be repaired or rehabilitated is eligible to have their unit repaired or rehabilitated, if they are income eligible and meet all other requirements. (c) Identity of interest. When an identity of interest, as defined in § 1924.4(i) of subpart A of part 1924 of this chapter, exists between a nonprofit entity and the owner(s) of a dwelling, the property is not eligible for assistance." 7:7:13.1.1.1.5.10.1.13,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.663 Ownership agreement between HPG grantee and rental property owner or co-op.,RHS,,,,"HPG assistance may be provided by a grantee with respect to rental properties or co-ops only if the following conditions are met by the rental property owner(s) or by the co-op during a minimum 5 year restrictive period beginning on the date agreed upon in the agreement between the grantee and the rental property owner (or co-op). The HPG grantee is responsible for preparing, executing, and monitoring for compliance, the ownership agreement with the owner(s) of the rental property or the co-op. The rental property owner(s) or the co-ops are required to enter into an ownership agreement with the grantee to assure compliance with the requirements of this section. (a) Ownership agreement. At a minimum, the ownership agreement must include the following clauses: (1) The owner(s) agrees to make the units repaired or rehabilitated available for occupancy to very low- or low-income persons for a period of not less than 5 years, such restrictive period beginning on the date agreed upon in the agreement between the grantee and the rental property owner(s) or co-op. (2) The owner(s) agrees to pass on to the tenants any reduction in the debt service payments resulting from the HPG assistance provided by the HPG grantee to the owner(s). (3) The owner(s) of rental properties agrees not to convert the units to condominium ownership. In the case of co-ops, the owner(s) agrees not to convert the dwelling(s) to condominium ownership or any form of cooperative ownership not eligible under this section. This paragraph (a)(3) is subject to the restrictive period noted in paragraph (a)(1) of this section. (4) The owner(s) agrees not to refuse to rent a unit to any person solely because the person is receiving or is eligible to receive assistance under any Federal, State, or local housing assistance program. (5) The owner(s) agrees that the units repaired or rehabilitated will be occupied or available for occupancy by persons of very low- or low-income. (6) The owner(s) agrees to enter into and abide by written leases with the tenants and that such leases shall provide that the tenants may be evicted only for good cause. (7) The owner(s) agrees that, in the event the owner(s) or the owner's successors in interest fail to carry out the requirements of this section during the applicable period, they shall make a payment to Rural Development in an amount that equals the total amount of assistance provided by the grantee plus interest thereon (without compounding) for each year and any fraction thereof that the assistance was outstanding. The interest rate shall be that as determined by Rural Development at the time of infraction taking into account the average yield on outstanding marketable long-term obligations of the United States during the month preceding the date on which the assistance was initially made available. (8) The owner(s) agrees that, notwithstanding any other provisions of law, the HPG assistance provided to the owner(s) shall constitute a debt which is payable in the case of any failure of this section and shall be secured by a security instrument provided by the owner(s) or co-op to the grantee, that provides for Rural Development to take such action upon incapacity or dissolution of the grantee. (9) The owner(s) agrees and certifies that the assistance is being made available in conformity with Public Law 88-352, the “Civil Rights Act of 1964,” and Public Law 90-284, the “Civil Rights Act of 1968.” (b) Responsibilities of the grantee. The grantee is responsible for insuring through verification and monitoring that the areas listed below are in compliance: (1) That HPG funds used for loans, grants, or interest reduction payments providing repair or rehabilitation assistance to owners of rental properties or co-ops are not in excess of 75 percent of the total cost of all repairs and rehabilitation activities eligible for HPG assistance. (2) That the owner(s) is not repairing and/or rehabilitating any unit unless it meets the requirements of § 1944.662 (b)(3) of this subpart. (3) That rental property units being repaired and/or rehabilitated and occupied by owners or members of the owner's immediate family meet all other requirements of this subpart. (4) That, for multi-units not considered eligible as a result of paragraph (b)(2) or (b)(3) of this section, the grantee and owner(s) shall agree on a method, if any is needed, of determining the prorata share of repairs and rehabilitation activities to the dwelling, based on a percentage of the ineligible units to the total dwelling." 7:7:13.1.1.1.5.10.1.14,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.664 Housing preservation and replacement housing assistance.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26210, May 13, 1997]","(a) Grantees are responsible for providing loans, grants, or other comparable assistance to homeowners, owners of rental properties or co-ops for housing preservation or for replacement housing as described in § 1944.656. (b) HPG funds used for loans, grants, or interest reduction payments to provide rental repair and/or rehabilitation assistance to owners of rental properties or co-ops shall not exceed the requirement noted in § 1944.663(b)(1) of this subpart. (c) Authorized housing preservation assistance includes, but is not limited to, cost of labor and materials for: (1) Installation and/or repair of sanitary water and waste disposal systems, together with related plumbing and fixtures, which will meet local health department requirements; (2) Energy conservation measures such as: (i) Insulation; and (ii) Combination screen-storm windows and doors; (3) Repair or replacement of the heating system including the installation of alternative systems such as woodburning stoves or space heaters, when appropriate and if local codes permit; (4) Electrical wiring; (5) Repair of, or provision for, structural supports and foundations; (6) Repair or replacement of the roof; (7) Replacement of severely deteriorated siding, porches or stoops; (8) Alterations of the unit's interior or exterior to provide greater accessibility for any handicapped person; (9) For properties listed on or eligible for the National Register of Historic Places, activities associated with conforming repair and rehabilitation activities to the standards and/or design comments resulting from the consultation process contained in § 1944.673 of this subpart; (10) Necessary repairs to manufactured housing provided: (i) For homeowners only, the recipient owns the home and the site on which the home is situated and the homeowner has occupied that home on that site for at least 1 year prior to receiving HPG assistance; and (ii) For homeowners, owners of single- or multiple-unit rental properties, and co-ops, the manufactured housing is on a permanent foundation or will be put on a permanent foundation with HPG funds. Advice on the requirements for a permanent foundation is available from Rural Development. Guidance may be found in § 1944.223(e) of subpart E of this part and in exhibit J of subpart A of part 1924 of this chapter; (11) Additions to any dwelling (conventional or manufactured) only when it is clearly necessary to alleviate overcrowding or to remove health hazards to the occupants; or (12) Relocation costs either permanent or temporary for assistance to rental properties or co-ops, as noted in § 1944.667 of this subpart. (d) Authorized replacement housing assistance includes, but is not limited to: (1) Building a dwelling and providing related facilities for use by the individual homeowner as a permanent resident; (2) Providing a safe and sanitary water and waste disposal system, together with related plumbing and fixtures, which will meet local health department requirements; (3) Providing minimum site preparation and other on-site improvement including grading, foundation plantings, and minimal landscaping, and other on-site improvements required by local jurisdictions; (4) Providing special design features or equipment when necessary because of physical handicap or disability of the HPG recipient or member of the household; (5) Purchasing and installing approved energy saving measures and approved furnaces and space heaters which use a type of fuel that is commonly used, and is economical and dependably available; (6) Providing storm cellars and similar protective structures, if typical for the area; (7) Paying real estate taxes which are due and payable on the existing dwelling or site at the time of closing, if this amount is not a substantial part of the HPG assistance. (HPG assistance may not be made available if the real estate taxes which are due and payable are not paid at the time assistance is granted.); (8) Providing living area for the HPG recipient and all members of the household as required in 7 CFR 3550.54(c); (9) Moving a dwelling onto the site of the demolished, previously existing housing and meeting all HPG housing preservation requirements for repair and rehabilitation; (10) Providing funds for demolishing the existing housing; and (11) Any other cost that is reasonable and justifiable directly related to replacement activities. (e) HPG funds may be used for payment of incidental expenses directly related to accomplishing authorized activities such as fees for connection of utilities (water, sewer, gas, electric), credit reports, surveys, title clearance, loan closing, inspections, and architectural or other technical services. All fees will be in accordance with local prevailing rates and so documented. (f) HPG funds may be used where they do not contribute to the health, safety and well being of the occupant or do not materially contribute to the structural integrity or long-term preservation of the unit. The percentage of the funds to be used for such purposes must not exceed 20 percent of the total funding for the unit(s) and/or dwelling, and such work must be combined with improvements listed as eligible under paragraph (c) of this section. These improvements may include, but are not limited to the following: (1) Painting; (2) Paneling; (3) Floor covering, including carpeting; (4) Improving clothes closets or shelving; (5) Improving kitchen cabinets; (6) Air conditioning; or (7) Landscape plantings. (g) Under the following conditions, HPG funds may be used to reimburse the grantee for authorized housing preservation or replacement housing activities performed by employees of the grantee where the grantee acts as a construction contractor and furnishes construction services: (1) The grantee must demonstrate that such work performed by the grantee results in cost savings in terms of time and labor over cost for such work prevailing in the area; (2) The grantee has established a process for third party review of all performance by a local government, building inspector or other independent party; (3) The grantee has established or makes available a process that provides for consumer protection to the individual homeowner, owner of a rental property, or co-op assisted; and (4) The grantee's accounting system provides a clear delineation between administrative costs and construction contractor (non-administrative) costs. (h) HPG funds may not be used to: (1) Assist in the construction or completion of an addition (excluding paragraph (c)(11) of this section) or a new dwelling. This paragraph does not apply to replacement housing. (2) Refinance any debt or obligation of the grantee, the individual homeowner, owners of a rental property, or co-ops other than obligations incurred for eligible items covered by this section entered into after the date of agreement with the HPG grantee. (3) Repair or rehabilitate as well as replace any property located in the Coastal Barrier Resources System." 7:7:13.1.1.1.5.10.1.15,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.665 Supervision and inspection of work.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26210, May 13, 1997]","Grantees are responsible for supervising all rehabilitation and repair work, as well as replacement housing financed with HPG assistance. After all HPG work has been completed, a final inspection must be done by a disinterested third party, such as local building and code enforcement officials. If there are no such officials serving the area where HPG activities will be undertaken, or if the grantee would also normally make such inspections, the grantee must use qualified contract or fee inspectors." 7:7:13.1.1.1.5.10.1.16,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.666 Administrative activities and policies.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26210, May 13, 1997; 79 FR 76011, Dec. 19, 2014]","Grant funds are to be used primarily for housing repair and rehabilitation activities. Use of grant funds for direct and indirect administrative costs is a secondary purpose and must not exceed 20 percent of the HPG funds awarded to the grantee. (a) Administrative expenses may include: (1) payment of reasonable salaries or contracts for professional, technical, and clerical staff actively assisting in the delivery of the HPG project. (2) Payment of necessary and reasonable office expenses such as office rental, supplies, utilities, telephone services, and equipment. (Any item of nonexpendable personal property having a unit value of $1,000 or more, acquired with HPG funds, will be specifically identified to Rural Development in writing.) (3) Payment of necessary and reasonable administrative costs such as workers' compensation, liability insurance, and the employer's share of Social Security and health benefits. Payments to private retirement funds are permitted if the grantee already has such a fund established and ongoing. (4) Payment of reasonable fees for necessary training of grantee personnel. (5) Payment of necessary and reasonable costs for an audit upon expiration of the grant agreement. (6) Other reasonable travel and miscellaneous expenses necessary to accomplish the objectives of the specific HPG grant which were anticipated in the individual HPG grant proposal and which have been approved as eligible expenses at the time of grant approval. (b) HPG administrative funds may not be used for: (1) Preparing housing development plans and strategies except as necessary to accomplish the specific objectives of the HPG project. (2) Substitution of any financial support previously provided or currently available from any other source. (3) Reimbursing personnel to perform construction related to housing preservation assistance. (Non-administrative funds may be used if construction is for housing preservation assistance under the provisions of § 1944.664(g) of this subpart. (4) Buying property of any kind from persons receiving assistance from the grantee under the terms of the HPG agreement. (5) Paying for or reimbursing the grantee for any expense or debts incurred before Rural Development executes the grant agreement. (6) Paying any debts, expenses, or costs which should be the responsibility of the individual homeowner, owner, tenant or household member of a rental property, or owner (member) or non-member of a co-op receiving HPG assistance outside the costs of repair and rehabilitation as well as for replacement housing (individual homeowners only). (7) Any type of political activities prohibited by the Office of Management and Budget (OMB) Circular A-122. (8) Other costs including contributions and donations, entertainment, fines and penalties, interest and other financial costs unrelated to the HPG assistance to be provided, legislative expenses, and any excess of cost from other grant agreements. (9) Paying added salaries for employees paid by other sources, i.e. , public agencies who pay employees to handle grants. (c) Advice concerning ineligible costs may be obtained from Rural Development as part of the HPG preapplication review or when a proposed cost appears ineligible. (d) The grantee may not charge fees or accept any compensation or gratuities from HPG recipients for the grantee's technical or administrative services under this program. Where the grantee performs as a construction contractor, the grantee may be paid such compensation directly related to construction services provided and limited to authorized housing preservation activities. (e) The policies, guidelines and requirements of 2 CFR part 200, as adopted by USDA through 2 CFR part 400, apply to the acceptance and use of HPG funds." 7:7:13.1.1.1.5.10.1.17,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.667 Relocation and displacement.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26210, May 13, 1997]","(a) Relocation. Public bodies and agencies must comply with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Act of 1970. The grantee must provide assistance for permanent or temporary relocation of displaced persons for units repaired or rehabilitated or for individual homes replaced with HPG assistance. HPG funds may be used to cover costs incurred in the relocation of displaced persons. The applicant shall include in its statement of activities, a statement concerning the temporary relocation of homeowners and/or tenants during the period of repairs and/or rehabilitation to the units or dwellings. Any contract or agreement between the homeowner and the grantee, as well as between the grantee and the owner(s) of rental properties and co-ops shall include a statement covering at a minimum; (1) The period of relocation (if any); (2) The name(s) of the party (or parties) who shall bear the cost of temporarily relocating; and (3) The name(s) of the party (or parties) who shall bear the cost of permanent relocation; and (4) If paragraphs (a) (2) or (3) of this section is the grantee, the maximum amount of temporary or permanent relocation costs proposed to be allowed. (b) Displacement. The applicant shall include in its statement of activities, a statement as to how its proposed HPG financial assistance program shall keep to a minimum the displacement of homeowners and/or tenants." 7:7:13.1.1.1.5.10.1.18,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.668 Term of grant.,RHS,,,,HPG projects may be funded under the terms of a grant agreement for a period of up to 2 years commencing on the date of execution of the grant agreement by the Rural Development approval official. Term of the project will be based upon HPG resources available for the proposed project and the accomplishability of the applicant's proposal within 1 or 2 years. Applicants requesting a 2 year term may be asked to develop a feasible 1 year program if sufficient funds are not available for a 2 year program. 7:7:13.1.1.1.5.10.1.19,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.669 [Reserved],RHS,,,, 7:7:13.1.1.1.5.10.1.2,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.652 Policy.,RHS,,,"[62 FR 26208, May 13, 1997]","(a) The policy of RHS is to provide HPG's to grantees to operate a program which finances repair and rehabilitation activities to individual housing, rental properties, or co-ops for very low- and low-income persons. Individual housing that is owner occupied may qualify for replacement housing when it is determined by the grantee that the housing is not economically feasible for repair or rehabilitation. Grantees are expected to: (1) Coordinate and leverage funding for repair and rehabilitation activities, as well as replacement housing, with housing and community development organizations or activities operating in the same geographic area; and (2) Focus the program on rural areas and smaller communities so that it serves very low and low-income persons. (b) RHS intends to permit grantees considerable latitude in program design and administration. The forms or types of assistance must provide the greatest long-term benefit to the greatest number of persons residing in individual housing, rental properties, or co-ops needing repair and rehabilitation or replacement of individual housing. (c) Repairs and rehabilitation or replacement activities affecting properties on or eligible for listing on the National Register of Historic Places will be accomplished in a manner that supports national historic preservation objectives as specified in § 1944.673." 7:7:13.1.1.1.5.10.1.20,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.670 Project income.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26210, May 13, 1997; 79 FR 76011, Dec. 19, 2014]","(a) Project income during the grant period from loans made to homeowners, owners of rental properties, and co-ops is governed by 2 CFR part 200 as adopted by USDA through 2 CFR part 400. All income during the grant period, including amounts recovered by the grantee due to breach of agreements between the grantee and the HPG recipient, must be used under (and in accordance with) the requirements of the HPG program. (b) Grantees are encouraged to establish a program which reuses income from loans after the grant period for continuing repair and rehabilitation activities, as well as for individual housing replaced." 7:7:13.1.1.1.5.10.1.21,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.671 Equal opportunity requirements and outreach efforts.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26210, May 13, 1997]","The policies and regulations contained in subpart E of part 1901 of this chapter apply to grantees under this subpart. (a) Fair housing. The Fair Housing Act prohibits any person or entity whose business includes engaging in residential real estate-related transactions to discriminate against any person in making loans, grants, or other financial assistance for a unit or dwelling, or which will be secured by a unit or dwelling, because of race, color, religion, sex, national origin, age, familial status, or handicap/disability. Prohibited practices under this section include: (1) Failing to provide any person in connection with a residential real estate-related transaction, information regarding the availability of loans, grants, or other financial assistance, or providing information that is inaccurate or different from that provided others; and (2) The term residential and real estate-related transaction includes the making or purchasing of loans, grants, or other financial assistance for purchasing, constructing, improving, repairing, or rehabilitating a unit or dwelling, as well as for replacement housing for individual homeowners. (b) Outreach. In addition, the HPG grantee is required to address an outreach effort in their program. The amount of outreach should sufficiently reach the entire service area. As a measure of compliance, the percentages of the individuals served by the HPG grantee should be in proportion to the percentages of the population of the service area by race/national origin. If the percentages are not proportional, then adequate justification is to be made. Exhibit E-1 of this subpart (available in any Rural Development office) will be used to monitor these requirements. (Further explanation and guidance of exhibit E-1 can be found in exhibit E-2 of this subpart which is available in any Rural Development office). A separate file will be maintained by the grantee that will include the following outreach activities: (1) Community contacts to community organizations, community leaders, including minority leaders, by name, race, and date contacted; (2) Copies of all advertising in local newspapers, and through other media. Any advertising must reach the entire service area. Rural Development encourages the use of minority-owned radio stations and other types of media, if available, in the service area. The grantee's file shall also include the name of the media used, and the percentage of its patronage by race/national origin; and (3) Copies of any other advertising or other printed material, including the application form used. The application form shall include the nondiscrimination slogan: “This is an equal opportunity program. Discrimination is prohibited by Federal Law.” (c) Additional requirements. In order to meet the Fair Housing requirements and the nondiscrimination requirements of Title VI of the Civil rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, the HPG grantee will need to adhere to the recommendations of exhibit H of this subpart (available in any Rural Development office)." 7:7:13.1.1.1.5.10.1.22,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.672 Environmental review requirements.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26210, May 13, 1997; 81 FR 11031, Mar. 2, 2016; 82 FR 19319, Apr. 27, 2017]","Grants made under this subpart must comply with the environmental review requirements in accordance with 7 CFR part 1970. (a) The approval of an HPG grant for the repair, rehabilitation, or replacement of dwellings is classified as a Categorical Exclusion, pursuant to § 1970.53. As part of their pre-application materials, applicants shall submit environmental documentation in accordance with 7 CFR part 1970, for the geographical areas proposed to be served by the program. The applicant shall refer to part 1944 subpart N exhibit F-1. (b) The use of HPG funds by the grantee to repair, rehabilitate, or replace on the same site, specific dwellings is generally exempt from an RHS environmental review. However, if such dwellings are located in a floodplain, wetland, or the proposed work is not concurred in by the Advisory Council on Historic Preservation under the requirements of § 1944.673, an RHS environmental review is required. Dwellings within the Coastal Barrier Resources System are not eligible for HPG assistance. Applicants must include in their preapplication a process for identifying dwellings that may receive housing preservation or replacement housing assistance that will require an environmental assessment. This may be accomplished through use of exhibit F-2 of this subpart (available in any Rural Development State or District Office) or another process supplying similar information acceptable to RHS. (c) If a specific dwelling is not located in a floodplain, wetland, or the proposed work is concurred in by the Advisory Council on Historic Preservation under the requirements of § 1944.673 of this subpart, no environmental review is required by Rural Development. The grantee only needs to indicate its review and compliance with this subpart, indicating such in each recipient's file in accordance with paragraph (e) of this section. (d) When an HPG proposal does not qualify as a categorical exclusion under § 1970.53 and may require either an environmental report under § 1970.54 or an environmental assessment, the applicant will immediately contact the RHS office designated to service the HPG grant. Prior to approval of HPG assistance to the recipient by the applicant, RHS must complete the environmental review process in accordance with 7 CFR part 1970, with the assistance of the applicant, as necessary. (e) If Rural Development is required to make an environmental assessment, the grantee will be provided with a copy of the assessment which will be made part of the recipient's file. The grantee must also include in each recipient's file: (1) Documentation on how the process for historic preservation review under § 1944.673 of this subpart has been complied with, including all relevant reviews and correspondence; and (2) Determination as to whether the unit is located in a 100-year floodplain or a wetland. (3) Documentation of this review. Suggested language is: “We have considered this dwelling under Rural Development's environmental and historic preservation requirements for a HPG (§§ 1944.672 and 1944.673 of this subpart) and an environmental assessment is not required. The review was completed in accordance with the process to identify properties requiring a Rural Development environmental assessment approved with our statement of activities.” (f) Proposed use of funds by an applicant to use monies for additions under § 1944.664 (c)(11) of this subpart must be addressed in the statement of activities. (g) Grantees must contact Rural Development prior to actual usage of funds by the grantees under § 1944.664 (c)(11) of this subpart. Rural Development must complete the appropriate level of environmental review in accordance with part 1970 of this chapter." 7:7:13.1.1.1.5.10.1.23,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.673 Historic preservation and replacement housing requirements and procedures.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26211, May 13, 1997]","(a) Rural Development has entered into a Programmatic Memorandum of Agreement (PMOA) with the National Conference of State Historic Preservation Officers (SHPO) and the Advisory Council on Historic Preservation in order to implement the specific requirements regarding historic preservation contained in section 533 of the Housing Act of 1949, 42 U.S.C. 1490(m) of the enabling legislation. The PMOA, with attachments, can be found in RD Instruction 2000-FF (available in any Rural Development office). A copy of the PMOA will be provided to each applicant for a HPG as part of the preapplication package specified in paragraph II of exhibit C of this subpart (available in any Rural Development office). (b) Each applicant for an HPG grant will provide, as part of its preapplication documentation submitted to RHS, a description of its proposed process for assisting very low-and low-income persons owning historic properties needing rehabilitation, repair, or replacement. “Historic properties” are defined as properties that are listed or eligible for listing on the National Register of Historic Places. Each HPG proposal shall comply with the provisions of Stipulation I, A-G of the PMOA (RD Instruction 2000-FF), available in any Rural Development State or District Office. Should RHS be required to assume responsibility for compliance with 36 CFR part 800 in accordance with Stipulation III of the PMOA, the grantee will assist RHS in preparing an environmental assessment. RHS will work with the grantee to develop alternative actions or mitigation measures, as appropriate. (c) Such assumption of responsibility by Rural Development on a particular property shall not preclude the grantee from carrying out the requirements of 36 CFR part 800 on other properties as though it were a Federal agency, but no work may be commenced on any unit or dwelling in controversy until and unless so advised by Rural Development." 7:7:13.1.1.1.5.10.1.24,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.674 Public participation and intergovernmental review.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 76 FR 80731, Dec. 27, 2011]","(a) In preparing its statement of activities, the applicant is responsible for consulting with leaders from the county, parish and/or township governments of the area where HPG activities will take place for the purpose of assuring that the proposed HPO program is beneficial and does not duplicate current activities. American Indian nonprofit organization applicants should obtain the written concurrence of the tribal governing body in lieu of consulting with the county governments when the program is operated only on tribal land. (b) The applicant must also make its statement of activities available to the public for comment. The applicant must announce the availability of its statement of activities for review in a newspaper of general circulation in the project area and allow at least 15 days for public comment. The start of this 15-day period must occur no later than 16 days prior to the last day for acceptance of preapplications by Rural Development. (c) The HPG program is subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. These requirements are set forth in U.S. Department of Agriculture regulations 7 CFR part 3015, subpart V, and RD Instruction 1970-I, ‘Intergovernmental Review,’ available in any Agency office or on the Agency's Web site. Prospective applicants for HPG grants must submit its statement of activities to the State single point of contact prior to submitting their preapplication to Rural Development. Evidence of submittal of the statement of activities to the State single point of contact is to be submitted with a preapplication. Comments and recommendations made through the intergovernmental review process are for the purpose of assuring consideration of State and local government views. The name of the State single point of contact is available from any Rural Development office. This section does not apply to American Indian tribes, bands, groups, etc., as noted in § 1944.656 of this subpart." 7:7:13.1.1.1.5.10.1.25,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.675 Allocation of HPG funds to States and unused HPG funds.,RHS,,,,The allocation and distribution of HPG funds is found in § 1940.578 of subpart L of part 1940 of this chapter. 7:7:13.1.1.1.5.10.1.26,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.676 Preapplication procedures.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 79 FR 76011, Dec. 19, 2014; 81 FR 11031, Mar. 2, 2016]","(a) All applicants will file an original and two copies of Standard Form (SF) 424.1, “Application For Federal Assistance (For Nonconstruction),” and supporting information with the appropriate Rural Development office. A preapplication package, including SF-424.1, is available in any Rural Development office. (b) All preapplications shall be accompanied by the following information which Rural Development will use to determine the applicant's eligibility to undertake the HPG program and to evaluate the preapplication under the project selection criteria of § 1944.679 of this subpart. (1) A statement of activities proposed by the applicant for its HPG program as appropriate to the type of assistance the applicant is proposing, including: (i) A complete discussion of the type of and conditions for financial assistance for housing preservation, including whether the request for assistance is for a homeowner assistance program, a rental property assistance program, or a co-op assistance program; (ii) The process for selecting recipients for HPG assistance, determining housing preservation needs of the dwelling, performing the necessary work, and monitoring/inspecting work performed; (iii) A description of the process for identifying potential environmental impacts in accordance with § 1944.672 of this subpart, and the provisions for compliance with Stipulation I, A-G of the PMOA (RD Instruction 2000-FF available in any Rural Development office) in accordance with § 1944.673 (b) of this subpart. With the exception of Stipulation I, D of the PMOA, this may be accomplished by adoption of exhibit F-2 of this subpart (available in any Rural Development office), or another process supplying similar information acceptable to Rural Development; (iv) The development standard(s) the applicant will use for the housing preservation work; and, if not the Rural Development development standards for existing dwellings, the evidence of its acceptance by the jurisdiction where the grant will be implemented; (v) The time schedule for completing the program; (vi) The staffing required to complete the program; (vii) The estimated number of very low- and low-income minority and nonminority persons the grantee will assist with HPG funds; and, if a rental property or co-op assistance program, the number of units and the term of restrictive covenants on their use for very low- and low-income; (viii) The geographical area(s) to be served by the HPG program; (ix) The annual estimated budget for the program period based on the financial needs to accomplish the objectives outlined in the proposal. The budget should include proposed direct and indirect administrative costs, such as personnel, fringe benefits, travel, equipment, supplies, contracts, and other cost categories, detailing those costs for which the grantee proposes to use the HPG grant separately from non-HPG resources, if any. The applicant budget should also include a schedule (with amounts) of how the applicant proposes to draw HPG grant funds, i.e. , monthly, quarterly, lump sum for program activities, etc.; (x) A copy of an indirect cost proposal as required in 2 CFR part 200 as adopted by USDA through 2 CFR part 400, when the applicant has another source of federal funding in addition to the HPG program; (xi) A brief description of the accounting system to be used; (xii) The method of evaluation to be used by the applicant to determine the effectiveness of its program which encompasses the requirements for quarterly reports to Rural Development in accordance with § 1944.683(b) of this subpart and the monitoring plan for rental properties and co-ops (when applicable) according to § 1944.689 of this subpart; (xiii) The source and estimated amount of other financial resources to be obtained and used by the applicant for both HPG activities and housing development and/or supporting activities; (xiv) The use of program income, if any, and the tracking system used for monitoring same; (xv) The applicant's plan for disposition of any security instruments held by them as a result of its HPG activities in the event of its loss of legal status; (xvi) Any other information necessary to explain the proposed HPG program; and (xvii) The outreach efforts outlined in § 1944.671(b) of this subpart. (2) Complete information about the applicant's experience and capacity to carry out the objectives of the proposed HPG program. (3) Evidence of the applicant's legal existence, including, in the case of a private nonprofit organization, a copy of, or an accurate reference to, the specific provisions of State law under which the applicant is organized; a certified copy of the applicant's Articles of Incorporation and Bylaws or other evidence of corporate existence; certificate of incorporation for other than public bodies; evidence of good standing from the State when the corporation has been in existence 1 year or more; and, the names and addresses of the applicant's members, directors and officers. If other organizations are members of the applicant-organization, or the applicant is a consortium, preapplications should be accompanied by the names, addresses, and principal purpose of the other organizations. If the applicant is a consortium, documentation showing compliance with § 1944.656 of this subpart will also be included. (4) For a private nonprofit entity, the most recent audited statement and a current financial statement dated and signed by an authorized officer of the entity showing the amounts and specific nature of assets and liabilities together with information on the repayment schedule and status of any debt(s) owed by the applicant. If the applicant is an organization being assisted by another private nonprofit organization, the same type of financial statement should also be provided by that organization. (5) A brief narrative statement which includes information about the area to be served and the need for improved housing (including both percentage and actual number of both low-income and low-income minority households and substandard housing), the need for the type of housing preservation assistance being proposed, the anticipated use of HPG resources for historic properties, the method of evaluation to be used by the applicant in determining the effectiveness of its efforts (according to paragraph (b)(1)(xii) of this section). (6) A statement containing the component for alleviating overcrowding as defined by § 1944.656 of this subpart. (7) A list of other activities the applicant is engaged in and expects to continue, a statement as to any other funding, and whether it will have sufficient funds to assure continued operation of the other activities for at least the period of the HPG grant agreement. (8) Any other information necessary that specifically addresses the selection criteria in § 1944.679 of this subpart. (c) Grants made under this subpart must be in compliance with the environmental review requirements in accordance with 7 CFR part 1970. (d) The applicant must submit a description of its process for: (1) Identifying and rehabilitating properties that are listed on or eligible for listing on the National Register of Historic Places. (2) Identifying properties that are located in a floodplain or wetland. (3) Identifying properties located within the Coastal Barrier Resources System. (4) Coordinating with other public and private organizations and programs that provide assistance in the rehabilitation of historic properties (Stipulation I, D, of the PMOA, RD Instruction 2000-FF, available in any Rural Development office). (5) Paragraphs (d) (1), (2), and (3) of this section may be accomplished by adoption of exhibit F-2 of this subpart (available in any Rural Development office), or another process supplying similar information acceptable to Rural Development. (e) The applicant must submit evidence of SHPO concurrence in the proposal, or in the event of nonconcurrence, a copy of SHPO's comments together with evidence that the applicant has sought the Advisory Council on Historic Preservation's advice as to how the disagreement might be resolved, and a copy of any advice provided by the Council. (f) The applicant must submit written statements and related correspondence reflecting compliance with § 1944.674 (a) and (c) of this subpart regarding consultation with local government leaders in the preparation of its program and the consultation with local and state government pursuant to the provisions of Executive Order 12372. (g) The applicant is to make its statement of activities available to the public for comment prior to submission to Rural Development pursuant to § 1944.674(b) of this subpart. The application must contain a description of how the comments (if any were received) were addressed. (h) The applicant must submit an original and one copy of Form RD 400-1, “Equal Opportunity Agreement,” and Form RD 400-4, “Assurance Agreement,” in accordance with § 1944.674(c) of this subpart." 7:7:13.1.1.1.5.10.1.27,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.677 [Reserved],RHS,,,, 7:7:13.1.1.1.5.10.1.28,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.678 Preapplication submission deadline.,RHS,,,,Dates governing the invitation and review of HPG preapplications will be published annually in the Federal Register and may be obtained from Rural Development offices processing HPG preapplications. Preapplications received after the date specified in the Federal Register will not be considered for funding in that fiscal year and will be returned. 7:7:13.1.1.1.5.10.1.29,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.679 Project selection criteria.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 73 FR 36269, June 26, 2008]","(a) Applicants must meet all of the following threshold criteria: (1) Provide a financially feasible program of housing preservation assistance. Financially feasible is defined as proposed assistance which will be affordable to the intended recipient or result in affordable housing for very low- and low-income persons; (2) Serve eligible rural areas with a concentration of substandard housing for households with very low- and low-income; (3) Be an eligible applicant entity as defined in § 1944.658 of this subpart; (4) Meet the requirements of consultation and public comment in accordance with § 1944.674 of this subpart; and (5) Submit a complete preapplication as outlined in § 1944.676 of this subpart. (b) For applicants meeting all of the requirements listed in paragraph (a) of this section, Rural Development will use the weighted criteria in this paragraph (b) in the selection of grant recipients. Each preapplication and its accompanying statement of activities will be evaluated and, based solely on the information contained in the preapplication, the applicant's proposal will be numerically rated on each criteria within the range provided. The highest ranking applicant(s) will be selected based on allocation of funds available to the State. Exhibit D of this subpart (available in any Rural Development office) will be used to document the rating. (1) Points are awarded based on the percentage of very low-income persons that the applicant proposes to assist, using the following scale: (i) More than 80%: 20 points. (ii) 61% to 80%: 15 points. (iii) 41% to 60%: 10 points. (iv) 20% to 40%: 5 points. (v) Less than 20%: 0 points. (2) The applicant's proposal may be expected to result in the following percentage of HPG fund use (excluding administrative costs) to total cost of unit preservation. This percentage reflects maximum repair or rehabilitation with the least possible HPG funds due to leveraging, innovative financial assistance, owner's contribution or other specified approaches. Points are awarded based on the following percentage of HPG funds (excluding administrative costs) to total funds: (i) 50% or less: 20 points. (ii) 51% to 65%: 15 points. (iii) 66% to 80%: 10 points. (iv) 81% to 95%: 5 points. (v) 96% to 100%: 0 points. (3) The applicant has demonstrated its administrative capacity in assisting very low- and low-income persons to obtain adequate housing based on the following: (i) The organization or a member of its staff has at least one or more years experience successfully managing and operating a rehabilitation or weatherization type program: 10 points. (ii) The organization or a member of its staff has at least one or more years experience successfully managing and operating a program assisting very low- and low-income persons obtain housing assistance: 10 points. (iii) If the organization has administered grant programs, there are no outstanding or unresolved audit or investigative findings which might impair carrying out the proposal: 10 points. (4) The proposed program will be undertaken entirely in rural areas outside MSAs identified by Rural Development as having populations below 10,000 or in remote parts of other rural areas ( i.e. , rural areas contained in MSAs with less than 5,000 population) as defined in § 1944.656 of this subpart: 10 points. (5) The program will use less than 20 percent of HPG funds for administration purposes: (i) More than 20%: Not Eligible. (ii) 20%: 0 points. (iii) 19%: 1 point. (iv) 18%: 2 points. (v) 17%: 3 points. (vi) 16%: 4 points. (vii) 15% or less: 5 points. (6) The proposed program contains a component for alleviating overcrowding as defined in § 1944.656 of this subpart: 5 points. (c) In the event more than one preapplication receives the same amount of points, those preapplications will then be ranked based on the actual percentage figure used for determining the points under paragraph (b)(1) of this section. Further, in the event that preapplications are still tied, then those preapplications still tied will be ranked based on the percentage figures used (low to high) in paragraph (b)(2) of this section. Further, for applications where assistance to rental properties or co-ops is proposed, those still tied will be further ranked based on the number of years the units are available for occupancy under the program (a minimum of 5 years is required). For this part, ranking will be based from most to least number of years. Finally, if there is still a tie, then a “lottery” System will be used." 7:7:13.1.1.1.5.10.1.3,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.653 Objective.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26209, May 13, 1997]","The objective of the HPG program is to repair or rehabilitate individual housing, rental properties, or co-ops owned and/or occupied by very low- and low-income rural persons. Grantees will provide eligible homeowners, owners of rental properties, and owners of co-ops with financial assistance through loans, grants, interest reduction payments or other comparable financial assistance for necessary repairs and rehabilitation. Further, individual housing that is owner occupied may qualify for replacement housing when it is determined by the grantee that the housing is not economically feasible for repair or rehabilitation, except as specified in § 1944.659." 7:7:13.1.1.1.5.10.1.30,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.680 Limitation on grantee selection.,RHS,,,,"After all preapplications have been reviewed under the selection criteria and if more than one preapplication has met the criteria of § 1944.679(a) of this subpart, the State Director or approval official may not approve more than 50 percent of the State's allocation to a single entity." 7:7:13.1.1.1.5.10.1.31,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.681 Application submission.,RHS,,,,"Applicants selected by Rural Development will be advised to submit a full application in an original and two copies of SF 424.1, and are to include any condition or amendments that must be incorporated into the statement of activities prior to submitting a full application. Instructions on submission and timing will be provided by FmHA or its successor agency under Public Law 103-354." 7:7:13.1.1.1.5.10.1.32,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,"§ 1944.682 Preapplication/application review, grant approval, and requesting HPG funds.",RHS,,,,"The Rural Development offices processing HPG preapplications/applications will review the preapplications and applications submitted. Further review and actions will be taken by Rural Development personnel in accordance with exhibit C of this subpart (available in any Rural Development office). Exhibit G of this subpart (available in any Rural Development office) will be used by the State Office to notify the National Office of preapplications received, eligibility, ranking, number of proposed units, amount requested by applicants, and amount recommended by State Office. Preapplications determined not eligible and/or not meeting the selection criteria will be notified in the manner prescribed in exhibit C of this subpart (available in any Rural Development office). In addition, Rural Development will document its findings and advise the applicant of its review rights or appeal rights (if applicable) under subpart B of part 1900 of this chapter. Applications determined not eligible will be handled in the same manner. The preapplications or applications determined incomplete will be notified in the manner prescribed in exhibit C of this subpart (available in any Rural Development office) and will not be given appeal rights. The State Director is authorized to approve an HPG in accordance with this subpart and subpart A of part 1901 of this chapter. The State Director may delegate this authority in writing to designated State Office personnel and District Directors. Further: (a) Grant approval is the process by which Rural Development determines that all applicable administrative and legal conditions for making a grant have been met, the grant agreement is signed, and funds have been obligated for the HPG project. If acceptable, the approval official will inform the applicant of approval, having the applicant sign Form RD 1940-1, “Request for Obligation of Funds,” and exhibit A of this subpart (available in any Rural Development office). The applicant will be sent a copy of the executed grant agreement and Form RD 1940-1. Should any conditions be attached to the grant agreement that must be satisfied prior to the applicant receiving any HPG funds, the grant agreement and the conditions will be returned to the applicant for acceptance and acknowledgement on the grant agreement prior to execution by the approval official. (b) The application may be disapproved before execution of the grant agreement if the applicant is no longer eligible, the proposal is no longer feasible, or the applicant requests cancellation of its project. Except when the applicant requests cancellation, Rural Development will document its findings and advise the applicant of its appeal rights under subpart B of part 1900 of this chapter. (c) With the executed grant agreement and Form RD 1940-1, Rural Development will send the approved applicant (now the “grantee”) copies of SF-270, “Request for Advance or Reimbursement”. The grantee must submit an original and two copies of SF-270 to the Rural Development office servicing the project. In addition, the grantee must submit SF-272, “Federal Cash Transactions Report,” each time an advance of funds is made. This report shall be used by Rural Development to monitor cash advances made to the grantee. Advances or reimbursements must be in accordance with the grantee's budget and statement of activities, including any amendments, prior approved by Rural Development. Requests for reimbursement or advances must be at least 30 calendar days apart. (d) If the grantee fails to submit required reports pursuant to § 1944.683 of this subpart or is in violation of the grant agreement, Rural Development may suspend HPG reimbursements and advances or terminate the grant in accordance with § 1944.688 of this subpart and the grant agreement." 7:7:13.1.1.1.5.10.1.33,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.683 Reporting requirements.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26211, May 13, 1997]","(a) SF-269, “Financial Status Report,” is required of all grantees on a quarterly basis. Grantees shall submit an original and two copies of the report to the designated Rural Development servicing office. When preparing the Financial Status Report, the total program outlays (Item 10, g, of SF-269) should be less any rebates, refunds, or other discounts. Reports must be submitted no later than 15 days after the end of each calendar quarter. (b) Quarterly performance reports shall be submitted by grantees with SF-269, in an original and two copies (see exhibit E-1 or this subpart which is available in any Rural Development office.) The quarterly report should relate the activities during the report period to the project's objectives and analyze the effectiveness of the program. As part of the grantee's preapplication submission, as required by § 1944.676(b) of this subpart, the grantee establishes its objectives for the HPG program, including its method of evaluation to determine its effectiveness. Accordingly, the report must include, but need not be limited to, the following: (1) Use of HPG funds for administration and housing preservation activities. (2) The following specific information for each unit or dwelling assisted: (i) Name(s), address, and income(s) of each homeowner assisted or the name and address of the owner(s) or co-op for each rental property (single or multi-unit) or co-op assisted; (ii) Total cost of repair/rehabilitation, a list of major repairs made, amount financed by HPG, and amount financed from which other sources; (iii) Type of assistance provided (interest subsidy, loan, grant, etc.); and (iv) Results of implementing the environmental process contained in § 1944.672 of this subpart and the historic preservation process contained in § 1944.673 of this subpart. (3) The use of HPG and any other funds for replacement housing. (4) A comparison of actual accomplishments to the objectives set for that period, including: (i) The number of very low- and low-income, minority and nonminority persons assisted in obtaining adequate housing by the HPG program through repair and rehabilitation as well as for replacement housing; and (ii) The average cost of assistance provided to each household. (5) Reasons why, if established objectives are not met. (6) Problems, delays, or adverse conditions which will materially affect attainment of the HPG grant objectives, prevent the meeting of time schedules or objectives, or preclude the attainment of program work elements during established time periods. This disclosure shall be accompanied by a statement of the action taken or contemplated and any Federal or other assistance needed to relieve the situation. (7) Objectives established for the next reporting period, sufficiently detailed to identify the type of assistance to be provided, the number and type of households to be assisted, etc. (8) A certification that the final building inspection reports for each rehabilitation or repair work financed as well as for replacement housing with HPG funds for that quarter is on file. (c) The grantee should be prepared to meet with the Rural Development office servicing the project to discuss its quarterly report shortly after submission. (d) If the reports are not submitted in a timely manner or if the reports indicate that the grantee has made unsatisfactory progress or the grantee is not meeting its established objectives, the Rural Development official servicing the grant will recommend to the State Director appropriate action to resolve the indicated problem(s). If appropriate corrective action is not taken by the grantee, the State Director has the discretion to not authorize further advances by suspending the project in accordance with § 1944.688 of this subpart and the grant agreement." 7:7:13.1.1.1.5.10.1.34,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.684 Extending grant agreement and modifying the statement of activities.,RHS,,,,"(a) All requests extending the original grant agreement or modifying the HPG program's statement of activities must be in writing. Such requests will be processed through the designated Rural Development office servicing the project. The approval official will respond to the applicant within 30 days of receipt of the request. (b) A grantee may request an extension of the grant agreement prior to the end of the project term specified in the grant agreement if the grantee anticipates that there will be grant funds remaining and the grantee has demonstrated its ability to conduct its program in a manner satisfactory to Rural Development. The approval official may approve an extension when: (1) The grantee is likely to complete or exceed the goals outlined in the approved statement of activities; and (2) The Rural Development office responsible for servicing the grant recommends continuation of the grant until the grantee has expended all of the remaining grant funds. (c) Modifications to the statement of activities, such as revising the processes the grantee follows in operating the HPG program, may be approved by the approval official when the modifications are for eligible purposes in accordance with §§ 1944.664 and 1944.666 of this subpart, meet any applicable review and process requirements of this subpart, and the program will continue to serve the geographic area originally approved. The grantee will submit its proposed revisions together with the necessary supporting information to Rural Development prior to modifying its operation from the approved statement of activities. (d) Exhibit B of this subpart (available in any Rural Development office) will be used for all extensions on and modifications to the grant agreement." 7:7:13.1.1.1.5.10.1.35,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.685 [Reserved],RHS,,,, 7:7:13.1.1.1.5.10.1.36,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.686 Additional grants.,RHS,,,,An additional HPG grant may be made when the grantee has achieved or nearly achieved the goals established for the previous or existing grant. The grantee must file a preapplication for the current fiscal year which will be processed and compared under the project selection criteria to others submitted at that time. 7:7:13.1.1.1.5.10.1.37,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.687 [Reserved],RHS,,,, 7:7:13.1.1.1.5.10.1.38,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,"§ 1944.688 Grant evaluation, closeout, suspension, and termination.",RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 79 FR 76011, Dec. 19, 2014]","(a) Grant evaluation will be an on-going activity performed by both the grantee and Rural Development. The grantee will perform self-evaluations by preparing quarterly performance reports in accordance with § 1944.683 of this subpart. Rural Development will also review all reports prepared and submitted by the grantee in accordance with the grant agreement and this subpart. (b) The grant can be suspended or terminated before the grant ending date for the causes specified in the grant agreement. No further grant funds will be advanced when grant suspension or termination procedures have been initiated in accordance with the grant agreement. Grantees may be reimbursed for eligible costs incurred prior to the effective date of the suspension or termination. Grantees are prohibited from incurring additional obligations of funds after notification, pending corrective action by the grantee. Rural Development may allow necessary and proper costs that the grantee could not reasonably avoid during the period of suspension provided they are for eligible HPG purposes. In the event of termination, Rural Development may allow necessary and reasonable costs for an audit. (c) Grantees will have the opportunity to appeal a suspension or termination under Rural Development's appeal procedures under subpart B of part 1900 of this chapter. (d) The grantee will complete the closeout procedures as specified in the grant agreement. (e) The grantee will have an audit performed upon termination or completion of the project in accordance with 2 CFR part 200 as adopted by USDA through 2 CFR part 400, as applicable. As part of its final report, the grantee will address and resolve all audit findings." 7:7:13.1.1.1.5.10.1.39,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.689 Long-term monitoring by grantee.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 79 FR 76011, Dec. 19, 2014]","(a) The grantee is required to perform long-term monitoring on any housing preservation program involving rental properties and co-ops. This monitoring shall be at least on an annual basis and shall consist of, at a minimum, the following: (1) All requirements noted in § 1944.663 of this subpart; (2) All requirements of the “ownership agreement” executed between the grantee and the rental property owner or co-op; and (3) All requirements noted in 2 CFR part 200 as adopted by USDA through 2 CFR part 400 during the effective period of the grant agreement. (b) The grantee is required to make available to Rural Development any such information as requested by Rural Development concerning the above. The grantee shall submit to the Rural Development servicing office an annual report every year while the ownership agreement is in effect. This report shall be submitted within 15 days after the anniversary date or end of the grant agreement. At a minimum, the report will consist of a statement that the grantee is in compliance with this subpart. (c) All files pertaining to such rental property owner or co-op shall be kept separate and shall be maintained for a period of 3 years after the termination date of the ownership agreement." 7:7:13.1.1.1.5.10.1.4,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.654 Debarment and suspension—drug-free workplace.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 61 FR 39851, July 31, 1996]","(a) For purposes of this subpart, exhibit A of RD Instruction 1940-M (available in any Agency office) requires all Rural Development applicants; for an HPG to sign and submit with their preapplication, Form AD-1047, “Certification Regarding Debarment, Suspension, and Other Responsibility Matters—Primary Covered Transactions,” which basically states that the applicant has not been debarred or suspended from Government assistance. Further, all grantees after receiving a HPG must obtain a signed certification (Form AD-1048, “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transactions”) from all persons or entities (excluding homeowner recipients) that the grantee does business with as a result of the HPG. Grantees are responsible for informing these persons or entities of the provisions of exhibit A of RD Instruction 1940-M (available in any Agency office) and of maintaining Form AD-1048 in the grantee's office. (b) Grantees must also be made aware of the Drug-free Workplace Act of 1988 requirements found in exhibit A of RD Instruction 1940-M (available in any Rural Development office). For this subpart, a grantee is defined as any organization who applies for or receives a direct grant from Rural Development. All preapplications must include a signed Form AD-1049, “Certification Regarding Drug-free Workplace Requirements (Grants) Alternative I—Grants Other Than Individuals.”" 7:7:13.1.1.1.5.10.1.40,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.690 Exception authority.,RHS,,,,"The Under Secretary for Rural Development (or designee) may, in individual cases, make an exception to any requirements of this subpart not required by the authorizing statute if the Administrator finds that application of such requirement would adversely affect the interest of the Government, or adversely affect the accomplishment of the purposes of the HPG program, or result in undue hardship by applying the requirement. The Administrator or the Assistant Administrator for Housing may exercise this exception authority at the request of the State Director. The request must be supported by information demonstrating the adverse impact, citing the particular requirement involved, recommending proper alternative course(s) of action, and outlining how the adverse impact could be mitigated. Exception to any requirement may also be initiated by the Assistant Administrator for Housing." 7:7:13.1.1.1.5.10.1.41,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§§ 1944.691-1944.699 [Reserved],RHS,,,, 7:7:13.1.1.1.5.10.1.42,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.700 OMB control number.,RHS,,,"[62 FR 26211, May 13, 1997]","According to the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), no persons are required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for the information collection in this subpart is 0575-0115." 7:7:13.1.1.1.5.10.1.5,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.655 [Reserved],RHS,,,, 7:7:13.1.1.1.5.10.1.6,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.656 Definitions.,RHS,,,"[58 FR 21894, Apr. 26, 1996, as amended at 61 FR 39851, July 31, 1996; 62 FR 26209, May 13, 1997; 67 FR 78329, Dec. 24, 2002; 69 FR 69105, Nov. 26, 2004; 72 FR 70221, Dec. 11, 2007; 73 FR 36268, June 26, 2008]","References in this subpart to District, State, National and Finance Offices, and to District Director, State Director, and Administrator refer to Rural Development offices and officials and should be read as prefaced by Rural Development. Terms used in this subpart have the following meanings: Adjusted income. As defined in 7 CFR 3550.54(c). Applicant or grantee. Any eligible organization which applies for or receives HPG funds under a grant agreement. Cooperative (co-op). For the purposes of the HPG program, a cooperative (co-op) is one which: (1) Is a corporation organized as a consumer cooperative; (2) Will operate the housing on a nonprofit basis solely for the benefit of the occupants; and (3) Is legally precluded from distributing, for a minimum period of 5 years from the date of HPG assistance from the grantee, any gains or profits from operation of the co-op. For this purpose, any patronage refunds to occupants of the co-op would not be considered gains or profits. A co-op may accept non-members as well as members for occupancy in the project. Grant agreement. The contract between Agency and the grantee which sets forth the terms and conditions under which HPG funds will be made available. (See exhibit A of this subpart which is available in any Agency office.) Homeowner. For the purposes of the HPG program, a homeowner is one who can meet the conditions of income and ownership under § 1944.661 of this subpart. Household. For the purposes of the HPG program, a household is defined as all persons living all or part of the next 12 months in a unit or dwelling assisted with HPG funds. Housing preservation. The repair and rehabilitation activities that contribute to the health, safety, and well-being of the occupant, and contribute to the structural integrity or long-term preservation of the unit. As a result of these activities, the overall condition of the unit or dwelling must be raised to meet Thermal Standards for existing structures adopted by the locality/jurisdiction and applicable development standards for existing housing recognized by RHS in subpart A of part 1924 or standards contained in any of the voluntary national model codes acceptable upon review by RHS. Properties included on or eligible for inclusion on the National Register of Historic Places are subject to the standards and conditions of § 1944.673. The term “housing preservation” does not apply to replacement housing. HPG. Housing Preservation Grant. Low income. An adjusted annual income that does not exceed the “lower” income limit according to size of household as established by the United States Department of Housing and Urban Development (HUD) for the county or Metropolitan Statistical Area (MSA) where the property is located. Maximum low-income limits are set forth in Appendix 9 of HB-1-3550 (available in any Rural Development office). Organization. An organization is defined as one of the following: (1) A State, commonwealth, trust territory, other political subdivision, or public nonprofit corporation authorized to receive and administer HPG funds; (2) An American Indian tribe, band, group, nation, including Alaskan Indians, Aleuts, Eskimos and any Alaskan Native Village, of the United States which is considered an eligible recipient under the Indian Self-Determination and Education Assistance Act (Pub. L. 93-638) or under the State and Local Fiscal Assistance Act of 1972 (Pub. L. 92-512); (3) A private nonprofit organization, including faith-based and community organizations, that is owned and controlled by private persons or interests for purposes other than making gains or profits for the corporation, is legally precluded from distributing any gains or profits to its members, and is authorized to undertake housing development activities; or (4) A consortium of units of government and/or private nonprofit organizations, including faith-based and community organizations, which is otherwise eligible to receive and administer HPG funds and which meets the following conditions: (i) Be comprised of units of government and/or private nonprofit corporations that are close together, located in the same state, and serve areas eligible for USDA Rural Development assistance; and (ii) Have executed an agreement among its members designating one participating unit of government or private nonprofit corporation as the applicant or designating a legal entity (such as a Council of Governments) to be the applicant. Overcrowding. Guidance is provided at 7 CFR 3560.155(e). These guidelines should result in an ideal range of persons per housing unit. Rental properties. Rental properties are defined as single-unit or multi-unit dwellings used for occupancy by tenants, owners, or members of an owner's immediate family. Replacement housing. The replacement of existing, individual owner occupied housing where repair and rehabilitation assistance is not economically feasible or practical. The term replacement housing does not apply to housing preservation. The overall condition of the unit or dwelling must meet Thermal Standards adopted by the locality/jurisdiction for new or existing structures and applicable development standards for new or existing housing recognized by RHS in subpart A of part 1924 or standards contained in any of the voluntary national model codes acceptable upon review by RHS. Properties included on or eligible for inclusion on the National Register of Historic Places are subject to the standards and conditions of § 1944.673 prior to replacement. RHS. RHS means the Rural Housing Service, or a successor agency. Rural area. The definition in 7 CFR part 3550 applies. Tenant. Any person who resides in a single- or multi-unit rental property. Very low-income. An adjusted annual income that does not exceed the very low-income limit according to size of household as established by HUD for the county of MSA where the property is located. Maximum very low-income limits are set forth in 7 CFR part 3550." 7:7:13.1.1.1.5.10.1.7,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.657 Restrictions on lobbying.,RHS,,,,All applicants must comply with RD Instruction 1940-Q (available in any Rural Development office) which prohibits applicants of Federal grants from using appropriated funds for lobbying the Federal Government in connection with a specific grant. 7:7:13.1.1.1.5.10.1.8,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.658 Applicant eligibility.,RHS,,,"[58 FR 21894, Apr. 26, 1993, as amended at 62 FR 26209, May 13, 1997; 79 FR 76011, Dec. 19, 2014]","(a) To be eligible to receive a grant, the applicant must: (1) Be an organization as defined in § 1944.656 of this subpart; (2) Have the necessary background and experience on the part of its staff or governing body with proven ability to perform responsibility in the field of low-income rural housing development, repair and rehabilitation, or have other business management or administrative experience which indicates an ability to operate a program providing repair and rehabilitation financial assistance as well as for replacement housing; (3) Legally obligate itself to administer HPG funds, provide an adequate accounting of the expenditure of such funds in compliance with the terms of this regulation, the grant agreement, and 2 CFR part 200 as adopted by USDA through 2 CFR part 400 (available in any Rural Development office), as appropriate, and comply with the grant agreement and Rural Development regulations; and (4) If the applicant is engaged in or plans to become engaged in any other activities, provide sufficient evidence and documentation that they have adequate resources, including financial resources, to carry on any other programs or activities to which they are committed without jeopardizing the success and effectiveness of the HPG project. (b) An applicant will not be considered eligible if it is a nonprofit entity and its proposal is based solely on an identity of interest, as defined in § 1924.4(i) of subpart A of part 1924 of this chapter, between the applicant and the owner(s) of the proposed dwelling or co-op to be rehabilitated or repaired." 7:7:13.1.1.1.5.10.1.9,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,N,Subpart N—Housing Preservation Grants,,§ 1944.659 Replacement housing.,RHS,,,"[62 FR 26209, May 13, 1997]","Replacement housing applies only to existing, individual owner occupied housing. Replacement housing does not apply to rental properties (single-unit or multiple-unit) or to cooperative housing projects. The grantee is responsible for determining the extent of the repairs and rehabilitation prior to any assistance given to an individual homeowner. If the cost of such repairs and rehabilitation is not economically feasible, then the grantee may consider replacing the existing housing with replacement housing, subject to the following: (a) The HPG grantee: (1) Shall document the total costs for all repairs and rehabilitation of the existing housing; and (2) Shall document the basis for the determination that the costs for all repairs and rehabilitation for the existing housing are not economically feasible. (b) The individual homeowner: (1) Must meet all requirements of § 1944.661; (2) Must lack the income and repayment ability to replace their existing home without the assistance of the HPG grantee; (3) Must have been determined by the HPG grantee and RHS to be unable to afford a loan under section 502 for replacement housing; and (4) Must be able to afford the replacement housing on terms set forth by the HPG grantee. (c) The existing home: (1) Must be demolished as part of the process of providing replacement housing. It will be determined by the grantee and individual homeowner when is the best time for demolition; and (2) May not be sold to make way for the replacement housing. (d) The replacement housing: (1) May be either new housing or a dwelling brought onto the site of the existing housing; (2) May use no more than $15,000 in HPG funds; (3) Must meet all applicable requirements of 7 CFR 3550.57; and (4) May not be sold within 5 years of completion of the project. (e) Any moneys received by the homeowner from selling salvaged material after demolishing the existing home must be used towards the replacement housing." 7:7:13.1.1.1.5.2.1.1,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.51 Objective.,RHS,,,,"This subpart states the policies and procedures for making grants under section 509 of the Housing Act of 1949, as amended (42 U.S.C. 1479). Grants reimburse eligible organizations for part or all of the costs of conducting, administering, and coordinating an effective housing application packaging program in colonias and designated counties. Eligible organizations will aid very low- and low-income individuals and families in obtaining benefits from Federal, State, and local housing programs. The targeted groups are very low- and low-income families without adequate housing who will receive priority for recruitment and participation and nonprofit organizations able to propose rental or housing rehabilitation assistance benefitting such families. These funds are available only in the areas defined in exhibit D of this subpart. Participants will assist very low- and low-income families in solving their housing needs. One way of assisting is to package single family housing applications for families wishing to buy, build, or repair houses for their own use. Another way is to package applications for organizations wishing to develop rental units for lower income families. The intent is to make Rural Development housing assistance programs available to very low- and low-income rural residents in colonias and designated counties. Rural Development will reimburse eligible organizations packaging loan/grant applications without discrimination because of race, color, religion, sex, national origin, age, familial status, or handicap if such an organization has authority to contract." 7:7:13.1.1.1.5.2.1.10,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.68 [Reserved],RHS,,,, 7:7:13.1.1.1.5.2.1.11,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.69 Agency point of contact.,RHS,,,"[58 FR 58643, Nov. 3, 1993, as amended at 61 FR 39851, July 31, 1996]",Grantees must submit packages to the appropriate Agency office serving the designated county and/or colonias. Packages for Single Family Housing loans/grants are submitted to the appropriate County Office. All other packages are submitted to the appropriate District Office. The applicable forms required to develop a package can be obtained in any District or County Office. Packagers should coordinate their packaging activity with the appropriate District and County Offices. 7:7:13.1.1.1.5.2.1.12,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.70 Targeting of HAPG funds to States.,RHS,,,"[58 FR 58643, Nov. 3, 1993, as amended at 61 FR 39851, July 31, 1996]","(a) HAPG funds will be distributed administratively by the Administrator to achieve the success of the program. Allocations will be distributed to States as set forth in Attachment 2 of exhibit A of subpart L of part 1940 of this chapter. (b) The State Director will determine based on the housing funds available and the personnel available, how many applications can be processed for each program during the fiscal year in each Agency office serving a designated county and/or colonias. The number of applications will be published in the advertisement required under § 1944.72 of this subpart." 7:7:13.1.1.1.5.2.1.13,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.71 Term of grant.,RHS,,,,"(a) For Single Family Housing loans/grants, HAPG funds will be specifically available for designated counties. Packages may be submitted after the annual housing application packaging orientation and training is held. The grant period will end when sufficient packages are received for each designated county or colonia or on September 30, of the fiscal year, whichever is earlier. The State Director must send notification, in the form of a letter, to all packagers who attended the packaging orientation and training that the number of applications specified in the advertisement required under § 1944.72 of this subpart have been received. Any packages submitted after this date will be paid for only if the grantee can demonstrate the package was prepared in good faith and prior to receipt of the above notification. (b) For Multi-Family Housing loans/grants, HAPG funds will be available for designated areas or colonias to the extent specified in Rural Development's advertisement. Preapplications approved in one fiscal year, for which grant funds were obligated, may have the balance disbursed in a later fiscal year when the application is submitted and approved." 7:7:13.1.1.1.5.2.1.14,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.72 Application packaging orientation and training.,RHS,,,"[58 FR 58643, Nov. 3, 1993, as amended at 61 FR 39851, July 31, 1996]","Agency approval officials will orient and train organizations on how to package. A newspaper advertisement will be published by Agency offices serving designated counties and/or colonias after October 1. The advertisement will announce that application packaging services are being requested and specify the date of the certification training. All eligible organizations may attend this training. This date will be no more than 30 days after the advertisement appears in the newspaper and no later than December 31 of any year. The advertisement will include the estimated number of packages needed by loan type, i.e. , Single Family, Multi-Family, etc. Exhibit A of this subpart (available in any Agency office) is an example of an appropriate advertisement. “Certificates of Training” as required under § 1944.53 of this subpart will be signed by the State Director and given after completion of the training. Efforts will be made by the appropriate Agency office to complete this training process and certify packagers as quickly as possible. Grantees must attend this training each year in order to qualify for assistance." 7:7:13.1.1.1.5.2.1.15,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.73 Package submission.,RHS,,,"[58 FR 58643, Nov. 3, 1993, as amended at 67 FR 78328, Dec. 24, 2002]","(a) When submitting its first package to a Rural Development office, in addition to the item in paragraph (b) of this section and the information set forth in exhibit C of this subpart, the organization must submit the following. A file of these documents will be established in the Rural Development office and retained in accordance with RD Instruction 2033-A (available in any Rural Development office). (1) Proof of their nonprofit status under section 501(c)(3) or section 501(c)(4) of the Internal Revenue Code of 1986 or of their existence as a state agency or unit of general local government legally authorized to work in the designated county and/or colonias. If the Rural Development approval official is in doubt about the legal status of the organization, the evidence will be sent to the State Director. The State Director may, if needed, submit the above documents with any comments or questions to the Office of General Counsel (OGC) for an opinion as to whether the applicant is a legal organization of the type required by these regulations. (2) An original and copy of Forms RD 400-1, “Equal Opportunity Agreement,” and RD 400-4, “Assurance Agreement.” (3) A copy of a current “Certificate of Training” pertaining to the type of application package submitted. (b) All packages must contain a signed statement which states, “Neither the organization nor any of its employees have charged, received or accepted compensation from any source other than Rural Development for packaging this application and are not associated with or represent anyone other than the applicant in this transaction.” (c) Form SF-270, “Request for Advance or Reimbursement” will be submitted with each application package for the amount authorized for the specific loan type in exhibit B of this subpart. (d) The Rural Development approval official will review each package for completeness, accuracy, and conformance to program policy and regulations. Cost reimbursement will be made in accordance with exhibit B of this subpart. Packagers that submit “incomplete” packages for sections 502 and 504 loans/grants will be sent a letter within 5 working days after submission of the “incomplete” package advising of additional information needed. Payment will be held until all the information is received. Packagers for sections 502 loans and 504 loans/grants will not be paid for packages submitted on applicants who are obviously ineligible for the programs. For example, a grantee would not be reimbursed for submitting a package for a section 502 loan applicant with an adjusted income exceeding the limits of Appendix 9 of HB-1-3550 (available in any Rural Development office) or who already owns adequate housing. Likewise, a grantee would not be reimbursed for submitting a package for a section 504 loan/grant when the adjusted family income exceeds the very low-income limits of Appendix 9 of HB-1-3550 (available in any Rural Development office) or when the applicant does not own and occupy his/her property, or for a section 504 grant when the applicant is not 62 years of age or older. (e) Submissions for sections 514/516, 515, and 524 loans/grants will be reviewed and, if incomplete, a letter sent within 15 working days advising of additional information required. (f) Form SF-269A, will be submitted within 15 days of the end of the fiscal year." 7:7:13.1.1.1.5.2.1.16,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.74 Debarment or suspension.,RHS,,,"[70 FR 7651, Feb. 15, 2005]",Certified packagers whose actions or acts warrant they not be allowed to participate in the program are to be investigated in accordance with agency procedures (available in any Rural Development office). 7:7:13.1.1.1.5.2.1.17,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.75 Exception authority.,RHS,,,"[58 FR 58643, Nov. 3, 1993, as amended at 67 FR 78328, Dec. 24, 2002]","The Administrator may, in individual cases, make an exception to any requirement or provision of this subpart which is not inconsistent with the authorizing statute or other applicable law if the Administrator determines that the Government's interest would be adversely affected. The Administrator will exercise this authority only at the request of the State Director and recommendation of the Deputy Administrator, Single Family Housing. Requests for exceptions must be in writing by the State Director and supported with documentation to explain the adverse effect on the Government's interest and/or impact on the applicant, borrower, or community, proposed alternative courses of action, and show how the adverse effect will be eliminated or minimized if the exception is granted." 7:7:13.1.1.1.5.2.1.18,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§§ 1944.76-1944.99 [Reserved],RHS,,,, 7:7:13.1.1.1.5.2.1.19,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.100 OMB control number.,RHS,,,,"The reporting and recordkeeping requirements contained in this regulation have been approved by the Office of Management and Budget and have been assigned OMB control number 0575-0157. Public reporting burden for this collection of information is estimated to vary from 30 minutes to five hours per response, with an average of 3 hours per response including time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Department of Agriculture, Clearance Officer, OIRM, Room 404-W, Washington, DC 20250; and to the Office of Management and Budget, Paperwork Reduction Project (OMB #0575-0157), Washington, DC 20503." 7:7:13.1.1.1.5.2.1.2,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.52 Definitions.,RHS,,,"[58 FR 58643, Nov. 3, 1993, as amended at 80 FR 9885, Feb. 24, 2015]","References in this subpart to County, District, State, National and Finance Offices, and to County Supervisor, District Director, State Director, and Administrator refer to Rural Development offices and officials and should be read as prefaced by Rural Development. Terms used in this subpart have the following meanings: Colonias. As defined in exhibit C of subpart L of part 1940 of this chapter. Complete application package (hereafter called package). The package submitted to the appropriate Rural Development office which is considered acceptable in accordance with exhibit C of this subpart. Cost reimbursement. Amount determined by the Administrator that equals the customary and reasonable costs incurred in preparing a package for a loan or grant. These amounts are included in exhibit B of this subpart. Designated counties. These counties are listed in exhibit D of this subpart. The counties meet the following criteria: (1) Twenty percent or more of the county population is at or below the poverty level based on the most recent 5-year survey of the American Community Survey of the Census Bureau or other Census Bureau data if needed; and (2) Ten percent or more of the occupied housing units are substandard based on the most recent decennial Census of the United States. Organization. Any of the following entities which are legally authorized to work in designated counties and/or colonias and are: (1) A State, State agency, or unit of general local government or; (2) A private nonprofit organization or corporation that is owned and controlled by private persons or interests, is organized and operated for purposes other than making gains or profits for the corporation, and is legally precluded from distributing any gains or profits to its members. Packager. Any eligible organization which is reimbursed with Housing Application Packaging Grants (HAPG) funds. Technical assistance. Any assistance necessary to carry out housing efforts by or for very low- and low-income individuals/families to improve the quality and/or quantity of housing available to meet their needs. Such assistance must include, but is not limited to: (1) Contacting and assisting very low- and low-income families in need of adequate housing by: (i) Implementing an organized outreach program using available media and personal contacts; (ii) Explaining available housing programs and alternatives to increase the awareness of very low- and low-income families and to educate the community as to the benefits from improved housing; (iii) Assisting very low- and low-income families in locating adequate housing; and (iv) Developing and packaging loan/grant applications for new construction and/or rehabilitation, or repair of existing housing. (2) Contacting and assisting eligible applicants to develop multi-family housing loan/grant applications for new construction, rehabilitation, or repair to serve very low- and low-income families." 7:7:13.1.1.1.5.2.1.3,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.53 Grantee eligibility.,RHS,,,,"An eligible grantee is an organization as defined in § 1944.52 of this subpart and has received a current “Certificate of Training” pertaining to the type of application being packaged. In addition, the grantee must: (a) Have the financial, legal, and administrative capacity to carry out the responsibilities of packaging housing applications for very low- and low-income applicants. To meet this requirement it must have the necessary background and experience with proven ability to perform responsibly in the field of housing application packaging, low-income housing development, or other business or administrative ventures which indicate an ability to perform responsibly in this field of housing application packaging. (b) Legally obligate itself to administer grant funds, provide adequate accounting of the expenditure of such funds, and comply with Rural Development regulations. (c) If the organization is a private nonprofit corporation, be a corporation that: (1) Is organized under State and local laws. (2) Is qualified under section 501(c)(3) of the Internal Revenue Code of 1986. (3) Has as one of its purposes assisting very low- and low-income families to obtain affordable housing." 7:7:13.1.1.1.5.2.1.4,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§§ 1944.54-1944.61 [Reserved],RHS,,,, 7:7:13.1.1.1.5.2.1.5,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.62 Authorized representative of the applicant.,RHS,,,"[58 FR 58643, Nov. 3, 1993, as amended at 61 FR 39851, July 31, 1996]","RHS or its successor agency under Public Law 103-354 will deal only with authorized representatives designated by the applicant. The authorized representatives must have no pecuniary interest in the award of the architectural or construction contracts, the purchase of equipment, or the purchase of the land for the housing site." 7:7:13.1.1.1.5.2.1.6,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.63 Authorized use of grant funds.,RHS,,,,Grant funds may only be used to reimburse a packager for delivered packages. Payment will be made for each complete package received and accepted in accordance with exhibit C of this subpart. 7:7:13.1.1.1.5.2.1.7,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§§ 1944.64-1944.65 [Reserved],RHS,,,, 7:7:13.1.1.1.5.2.1.8,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.66 Administrative requirements.,RHS,,,"[58 FR 58643, Nov. 3, 1993, as amended at 61 FR 39851, July 31, 1996; 79 FR 76008, Dec. 19, 2014; 81 FR 11031, Mar. 2, 2016]","The following policies and regulations apply to grants made under this subpart: (a) Grantees must comply with all provisions of the Fair Housing Act of 1988 and subpart E of part 1901 of this chapter which states in part, that no person in the United States shall, on the grounds of race, color, national origin, sex, religion, familial status, handicap, or age, be excluded from participating in, be denied the benefits of, or be subject to discrimination in connection with the use of grant funds. (b) The policies and regulations contained in RD Instruction 1940-Q (available in any Agency office), Departmental Regulation 2400-5, 2 CFR part 200 as adopted by USDA through 2 CFR part 400 apply to grantees under this subpart. (c) Grants made under the subpart must be in compliance with the environmental review requirements in accordance with 7 CFR part 1970. (d) The grantee will retain records for 3 years from the date Standard Form (SF)-269A, “Financial Status Report (Short Form),” is submitted. These records will be accessible to RHS and other Federal officials in accordance with 2 CFR part 200 as adopted by USDA through 2 CFR part 400. (e) Annual audits will be completed if the grantee has received more than $25,000 of Federal assistance in the year in which HAPG funds were received. These audits will be due 13 months after the end of the fiscal year in which funds were received. (1) States, State agencies, or units of general local government will complete an audit in accordance with 2 CFR part 200 as adopted by USDA through 2 CFR part 400 and OMB Circular A-128. (2) Nonprofit organizations will complete an audit in accordance with 2 CFR part 200 as adopted by USDA through 2 CFR part 400. (f) Performance reports, as required, will be submitted in accordance with 2 CFR part 200 as adopted by USDA through 2 CFR part 400." 7:7:13.1.1.1.5.2.1.9,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,B,Subpart B—Housing Application Packaging Grants,,§ 1944.67 Ineligible activities.,RHS,,,"[58 FR 58643, Nov. 3, 1993, as amended at 61 FR 39851, July 31, 1996]","The packager may not charge fees or accept compensation or gratuities directly or indirectly from the very low- and low-income families being assisted under this program. The packager may not represent or be associated with anyone else, other than the applicant, who may benefit in any way in the proposed transaction. If the packager is compensated for this service from other sources, then the packager is not eligible for compensation from this source except as permitted by Agency. Grantees who are funded to do Self-Help Housing, may not be reimbursed for packaging applications for participation in the Self-Help Housing effort." 7:7:13.1.1.1.5.4.1.1,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.251 Purpose.,RHS,,,,"The requirements of this subpart augment the requirements of section 802 of the National Affordable Housing Act of 1990 (approved November 28, 1990, Public Law 101-625) (42 U.S.C. 8011), (hereinafter, section 802), as amended by the Housing and Community Development Act of 1992 (Public Law 102-550, approved October 28, 1992), which authorizes the Congregate Housing Services Program (hereinafter, CHSP or Program)." 7:7:13.1.1.1.5.4.1.10,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.260 Cost distribution.,RHS,,,,"(a) General. (1) Grantees, the Secretary concerned, and participants shall all contribute to the cost of providing supportive services according to section 802(i)(A)(i). Grantees must contribute at least 50 percent of program cost, participants must contribute fees that in total are at least 10 percent of program cost, and the Secretary concerned will provide funds in an amount not to exceed 40 percent. (2) Section 802(i)(1)(B)(ii) creates a cost-sharing provision between grantee and the Secretary concerned if total participant fees collected over a year are less than 10 percent of total program cost. This provision is subject to availability of appropriated grant funds. If funds are not available, the grantee must assume the funding shortfall. (b) Prohibition on substitution of funds and maintenance of existing supportive services. Grantees shall maintain existing funding for and provision of supportive services prior to the application date, as set forth in section 802(i)(1)(D). The grantee shall ensure that the activities provided to the project under a CHSP grant will be in addition to, and not in substitution for, these previously existing services. The value of these services do not qualify as matching funds. Such services must be maintained either for the time the participant remains in CHSP, or for the duration of CHSP grant. The grantee shall certify compliance with this paragraph to the Secretary concerned. (c) Eligible matching funds. (1) All sources of matching funds must be directly related to the types of supportive services prescribed by the PAC or used for administration of CHSP. (2) Matching funds may include: (i) Cash (which may include funds from Federal, State and local governments, third party contributions, available payments authorized under Medicaid for specific individuals in CHSP, Community Development Block Grants or Community Services Block Grants, Older American Act programs or excess residual funds with the approval of the Secretary concerned), (ii) The imputed dollar value of other agency or third party-provided direct services or staff who will work with or provide services to program participants; these services must be justified in the application to assure that they are the new or expanded services of CHSP necessary to keep the program participants independent. If services are provided by the state, Indian tribe, unit of general local government, or local nonprofit housing sponsor, IHA, PHA, or for-profit or not-for-profit owner, any salary paid to staff from governmental sources to carry out the program of the grantee and any funds paid to residents employed by the Program (other than from amounts under a contract under section 1944.155) is allowable match. (iii) In-kind items (these are limited to 10 percent of the 50 percent matching amount), such as the current market value of donated common or office space, utility costs, furniture, material, supplies, equipment and food used in direct provision of services. The applicant must provide an explanation for the estimated donated value of any item listed. (iv) The value of services performed by volunteers to CHSP, at the rate of $5.00 an hour. (d) Limitation. (1) The following are not eligible for use as matching funds: (i) PHA operating funds; (ii) CHSP funds; (iii) Section 8 funds other than excess residual receipts; (iv) Funds under section 14 of the U.S. Housing Act of 1937, unless used for service coordination or case management; and (v) Comprehensive grant funds unless used for service coordination or case management; (2) Local government contributions are limited by section 802(i)(1)(E). (e) Annual review of match. The Secretary concerned will review the infusion of matching funds annually, as part of the program or budget review. If there are insufficient matching funds available to meet program requirements at any point after grant start-up, or at any time during the term of the grant ( i.e. , if matching funds from sources other than program participant fees drop below 50 percent of total supportive services cost), the Secretary concerned may decrease the federal grant share of supportive services funds accordingly." 7:7:13.1.1.1.5.4.1.11,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.261 Program participant fees.,RHS,,,,"(a) Eligible program participants. The grantee shall establish fees consistent with section 1944.145(a). Each program participant shall pay CHSP fees as stated in paragraphs (d) and (e) of this section, up to a maximum of 20 percent of the program participant's adjusted income. Consistent with section 802(d)(7)(A), the Secretary concerned shall provide for the waiver of fees for individuals who are without sufficient income to provide for any payment. (b) Fees shall include: (1) Cash contributions of the program participant; (2) Food Stamps; and (3) Contributions or donations to other eligible programs acceptable as matching funds under section 1944.145(c). (c) Older Americans Act programs. No fee may be charged for any meals or supportive services under CHSP if that service is funded under an Older Americans Act Program. (d) Meals fees: (1) For full meal services, the fees for residents receiving more than one meal per day, seven days per week, shall be reasonable and shall equal between 10 and 20 percent of the adjusted income of the project resident, or the cost of providing the services, whichever is less. (2) The fees for residents receiving meal services less frequently than as described in paragraph (d)(1) of this section shall be in an amount equal to 10 percent of the adjusted income of the project resident, or the cost of providing the services, whichever is less. (e) Other service fees. The grantee may also establish fees for other supportive services so that the total fees collected from all participants for meals and other services is at least 10 percent of the total cost of CHSP. However, no program participants may be required to pay more than 20 percent of their adjusted incomes for any combination of services. (f) Other residents and nonresidents. Fees shall be established for residents of eligible housing projects (other than eligible project residents) and for nonresidents who receive meals and other services from CHSP under section 1944.125(a). These fees shall be in an amount equal to the cost of providing the services." 7:7:13.1.1.1.5.4.1.12,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.262 Grant agreement and administration.,RHS,,,,"(a) General. HUD will enter into grant agreements with grantees, to provide congregate services for program participants in eligible housing projects, in order to meet the purposes of CHSP. (b) Term of grant agreement and reservation of amount. A grant will be for a term of five years and the Secretary concerned shall reserve a sum equal to the total approved grant amount for each grantee. Grants will be renewable at the expiration of a term, subject to the availability of funds and conformance with the regulations in this subpart, except as otherwise provided in section 1944.160. (c) Monitoring of project sites by governmental units. States, Indian tribes, and units of general local government with a grant covering multiple projects shall monitor, review, and evaluate Program performance at each project site for compliance with CHSP regulations and procedures, in such manner as prescribed by HUD or RHS. (d) Reports. Each grantee shall submit program and fiscal reports and program budgets to the Secretary concerned in such form and at such times, as the Secretary concerned requires. (e) Enforcement. The Secretary concerned will enforce the obligations of the grantee under the agreement through such action as may be necessary, including terminating grants, recapturing grant funds, and imposing sanctions. (1) These actions may be taken for: (i) A grantee's non-compliance with the grant agreement or HUD or RHS regulations; (ii) Failure of the grantee to provide supportive services within 12 months of execution of the grant agreement. (2) Sanctions include but are not limited to the following: (i) Temporary withholding of reimbursements or extensions or renewals under the grant agreement, pending correction of deficiencies by the grantee; (ii) Setting conditions in the contract; (iii) Termination of the grant; (iv) Substitution of grantee; and (v) Any other action deemed necessary by the Secretary concerned. (f) Renewal of grants. Subject to the availability of funding, satisfactory performance, and compliance with the regulations in this subpart: (1) Grantees funded initially under this subpart shall be eligible to receive continued, non-competitive renewals after the initial five-year term of the grant. (2) Grantees will receive priority funding and grants will be renewed within time periods prescribed by the Secretary concerned. (g) Use of Grant Funds. If during any year, grantees use less than the annual amount of CHSP funds provided to them for that year, the excess amount can be carried forward for use in later years." 7:7:13.1.1.1.5.4.1.13,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.263 Eligibility and priority for 1978 Act recipients.,RHS,,,,"Grantees funded initially under 42 U.S.C. 8001 shall be eligible to receive continued, non-competitive funding subject to its availability. These grantees will be eligible to receive priority funding under this subpart if they comply with the regulations in this part and with the requirements of any NOFA issued in a particular fiscal year." 7:7:13.1.1.1.5.4.1.14,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.264 Evaluation of Congregate Housing Services Programs.,RHS,,,,"(a) Grantees shall submit annually to the Secretary concerned, a report evaluating the impact and effectiveness of CHSPs at the grant sites, in such form as the Secretary concerned shall require. (b) The Secretaries concerned shall further review and evaluate the performance of CHSPs at these sites and shall evaluate the Program as a whole. (c) Each grantee shall submit a certification with its application, agreeing to cooperate with and to provide requested data to the entity responsible for the Program's evaluation, if requested to do so by the Secretary concerned." 7:7:13.1.1.1.5.4.1.15,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.265 Reserve for supplemental adjustment.,RHS,,,,The Secretary concerned may reserve funds subject to section 802(o). Requests to utilize supplemental funds by the grantee shall be transmitted to the Secretary concerned in such form as may be required. 7:7:13.1.1.1.5.4.1.16,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.266 Other Federal requirements.,RHS,,,,"In addition to the Federal Requirements set forth in 24 CFR part 5, the following requirements apply to grant recipient organizations in this program: (a) Office of Management and Budget (OMB) Circulars and Administrative Requirements. The policies, guidelines, and requirements of OMB Circular No. A-87 and 24 CFR part 85 apply to the acceptance and use of assistance under this program by public body grantees. The policies, guidelines, and requirements of OMB Circular No. A-122 apply to the acceptance and use of assistance under this program by non-profit grantees. Grantees are also subject to the audit requirements described in 24 CFR part 44 (OMB Circular A-128). (b) Conflict of interest. In addition to the conflict of interest requirements in OMB Circular A-87 and 24 CFR part 85, no person who is an employee, agent, consultant, officer, or elected or appointed official of the applicant, and who exercises or has exercised any function or responsibilities with respect to activities assisted with CHSP grant funds, or who is in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or any proceeds thereunder, either for himself or herself or for those with whom he or she has family or business ties during his or her tenure, or for one year thereafter. CHSP employees may receive reasonable salary and benefits. (c) Disclosures required by Reform Act. Section 102(c) of the HUD Reform Act of 1989 (42 U.S.C. 3545(c)) requires disclosure concerning other government assistance to be made available with respect to the Program and parties with a pecuniary interest in CHSP and submission of a report on expected sources and uses of funds to be made available for CHSP. Each applicant shall include information required by 24 CFR part 12 on form HUD-2880 “Applicant/Recipient Disclosure/Update Report,” as required by the Federal Register Notice published on January 16, 1992, at 57 FR 1942. (d) Nondiscrimination and equal opportunity. (1) The fair housing poster regulations (24 CFR part 110) and advertising guidelines (24 CFR part 109); (2) The Affirmative Fair Housing Marketing Program requirements of 24 CFR part 200, subpart M, and the implementing regulations at 24 CFR part 108; and (3) Racial and ethnic collection requirements—Recipients must maintain current data on the race, ethnicity and gender of program applicants and beneficiaries in accordance with section 562 of the Housing and Community Development Act of 1987 and section 808(e)(6) of the Fair Housing Act. (e) Environmental requirements. Support services, including the operating and administrative expenses described in section 1944.115(a), are categorically excluded from the requirements of the National Environmental Policy Act (NEPA) of 1969. These actions, however, are not excluded from individual compliance requirements of other environmental statutes, Executive Orders, and agency regulations where appropriate. When the responsible official determines that any action under this subpart may have an environmental effect because of extraordinary circumstances, the requirements of NEPA shall apply." 7:7:13.1.1.1.5.4.1.2,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.252 Definitions.,RHS,,,,"In addition to the definitions in section 802(k), the following definitions apply to CHSP: Activity of Daily Living (ADL) means an activity regularly necessary for personal care. (1) The minimum requirements of ADLs include: (i) Eating (may need assistance with cooking, preparing or serving food, but must be able to feed self); (ii) Dressing (must be able to dress self, but may need occasional assistance); (iii) Bathing (may need assistance in getting in and out of the shower or tub, but must be able to wash self); (iv) Grooming (may need assistance in washing hair, but must be able to take care of personal appearance); (v) Getting in and out of bed and chairs, walking, going outdoors, using the toilet; and (vi) Household management activities (may need assistance in doing housework, grocery shopping or laundry, or getting to and from one location to another for activities such as going to the doctor and shopping, but must be mobile. The mobility requirement does not exclude persons in wheelchairs or those requiring mobility devices.) (2) Each of the Activities of Daily Living noted in paragraph (1) of this definition includes a requirement that a person must be able to perform at a specified minimal level (e.g., to satisfy the eating ADL, the person must be able to feed himself or herself). The determination of whether a person meets this minimal level of performance must include consideration of those services that will be performed by a person's spouse, relatives or other attendants to be provided by the individual. For example, if a person requires assistance with cooking, preparing or serving food plus assistance in feeding himself or herself, the individual would meet the minimal performance level and thus satisfy the eating ADL, if a spouse, relative or attendant provides assistance with feeding the person. Should such assistance become unavailable at any time, the owner is not obligated at any time to provide individualized services beyond those offered to the resident population in general. The Activities of Daily Living analysis is relevant only with regard to determination of a person's eligibility to receive supportive services paid for by CHSP and is not a determination of eligibility for occupancy; Adjusted income means adjusted income as defined in 24 CFR parts 813 or 913. Applicant means a State, Indian tribe, unit of general local government, public housing authority (PHA), Indian housing authority (IHA) or local nonprofit housing sponsor. A State, Indian tribe, or unit of general local government may apply on behalf of a local nonprofit housing sponsor or a for-profit owner of eligible housing for the elderly. Area agency on aging means the single agency designated by the State Agency on Aging to administer the program described in Title III of the Older Americans Act of 1965 (45 CFR chapter 13). Assistant Secretary means the HUD Assistant Secretary for Housing-Federal Housing Commissioner or the HUD Assistant Secretary for Public and Indian Housing. Case management means implementing the processes of: establishing linkages with appropriate agencies and service providers in the general community in order to tailor the needed services to the program participant; linking program participants to providers of services that the participant needs; making decisions about the way resources are allocated to an individual on the basis of needs; developing and monitoring of case plans in coordination with a formal assessment of services needed; and educating participants on issues, including, but not limited to, supportive service availability, application procedures and client rights. Eligible housing for the elderly means any eligible project including any building within a mixed-use project that was designated for occupancy by elderly persons, or persons with disabilities at its inception or, although not so designated, for which the eligible owner or grantee gives preference in tenant selection (with HUD approval) for all units in the eligible project (or for a building within an eligible mixed-use project) to eligible elderly persons, persons with disabilities, or temporarily disabled individuals. For purposes of this subpart, this term does not include projects assisted under the Low-Rent Housing Homeownership Opportunity program (Turnkey III (24 CFR part 905, subpart G)). Eligible owner means an owner of an eligible housing project. Excess residual receipts mean residual receipts of more than $500 per unit in the project which are available and not committed to other uses at the time of application to HUD for CHSP. Such receipts may be used as matching funds and may be spent down to a minimum of $500/unit. For-profit owner of eligible housing for the elderly means an owner of an eligible housing project in which some part of the project's earnings lawfully inure to the benefit of any private shareholder or individual. Grantee or Grant recipient means the recipient of funding under CHSP. Grantees under this Program may be states, units of general local government, Indian tribes, PHAs, IHAs, and local nonprofit housing sponsors. Local nonprofit housing sponsor means an owner or borrower of eligible housing for the elderly; no part of the net earnings of the owning organization shall lawfully inure to the benefit of any shareholder or individual. Nonprofit includes a public housing agency as that term is defined in section 3(b)(6) of the United States Housing Act of 1937. Person with disabilities means a household composed of one or more persons, at least one of whom is an adult who has a disability. (1) A person shall be considered to have a disability if such person is determined under regulations issued by the Secretary to have a physical, mental, or emotional impairment which: (i) Is expected to be of long-continued and indefinite duration; (ii) Substantially impedes his or her ability to live independently; and (iii) Is of such a nature that the person's ability could be improved by more suitable housing conditions. (2) A person shall also be considered to have a disability if the person has a developmental disability as defined in section 102(5) of the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001-7). Notwithstanding the preceding provisions of this paragraph, the terms person with disabilities or temporarily disabled include two or more persons with disabilities living together, one or more such persons living with another person who is determined (under regulations prescribed by the Secretary of HUD) to be essential to their care or well-being, and the surviving member or members of any household where at least one or more persons was an adult with a disability who was living, in a unit assisted under this section, with the deceased member of the household at the time of his or her death. Program participant (participant) means any project resident as defined in section 802(e)(1) who is formally accepted into CHSP, receives CHSP services, and resides in the eligible housing project served by CHSP grant. Qualifying supportive services means those services described in section 802(k)(16). Under this Program, health-related services mean non-medical supervision, wellness programs, preventive health screening, monitoring of medication consistent with state law, and non-medical components of adult day care. The Secretary concerned may also approve other requested supportive services essential for achieving and maintaining independent living. Rural Housing Service (RHS) means a credit agency for rural housing and rural development in the U.S. Department of Agriculture (USDA). Secretary concerned means (1) The Secretary of Housing and Urban Development, with respect to eligible federally assisted housing administered by HUD; and (2) The Secretary of Agriculture with reference to programs administered by the Administrator of the Rural Housing Service. Service coordinator means CHSP staff person responsible for coordinating Program services as described in section 1944.130. Service provider means a person or organization licensed or otherwise approved in writing by a State or local agency (e.g., Department of Health, Department of Human Services or Welfare) to provide supportive services. State agency means the State or an agency or instrumentality of the State. State agency on aging means the single agency designated by the Governor to administer the program described in Title III of the Older Americans Act of 1965 (See 45 CFR part 13)." 7:7:13.1.1.1.5.4.1.3,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,"§ 1944.253 Notice of funding availability, application process and selection.",RHS,,,,"(a) Notice of funding availability. A Notice of Funding Availability (NOFA) will be published periodically in the Federal Register by the Secretary concerned containing the amounts of funds available, allocation or distribution of funds available among eligible applicant groups, where to obtain and submit applications, the deadline for submissions, and further explanation of the selection criteria, review and selection process. The Secretary concerned will designate the maximum allowable size for grants. (b) Selection criteria are set forth in section 802(h)(1) and shall include additional criteria specified by the Secretary concerned." 7:7:13.1.1.1.5.4.1.4,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.254 Program costs.,RHS,,,,"(a) Allowable costs. (1) Allowable costs for direct provision of supportive services includes the provision of supportive services and others approved by the Secretary concerned for: (i) Direct hiring of staff, including a service coordinator; (ii) Supportive service contracts with third parties; (iii) Equipment and supplies (including food) necessary to provide services; (iv) Operational costs of a transportation service (e.g., mileage, insurance, gasoline and maintenance, driver wages, taxi or bus vouchers); (v) Purchase or leasing of vehicles; (vi) Direct and indirect administrative expenses for administrative costs such as annual fiscal review and audit, telephones, postage, travel, professional education, furniture and equipment, and costs associated with self evaluation or assessment (not to exceed one percent of the total budget for the activities approved); and (vii) States, Indian tribes and units of general local government with more than one project included in the grant may receive up to 1% of the total cost of the grant for monitoring the projects. (2) Allowable costs shall be reasonable, necessary and recognized as expenditures in compliance with OMB Cost Policies, i.e. , OMB Circular A-87, 24 CFR 85.36, and OMB Circular A-128. (b) Nonallowable costs. (1) CHSP funds may not be used to cover expenses related to any grantee program, service, or activity existing at the time of application to CHSP. (2) Examples of nonallowable costs under the program are: (i) Capital funding (such as purchase of buildings, related facilities or land and certain major kitchen items such as stoves, refrigerators, freezers, dishwashers, trash compactors or sinks); (ii) Administrative costs that represent a non-proportional share of costs charged to the Congregate Housing Services Program for rent or lease, utilities, staff time; (iii) Cost of supportive services other than those approved by the Secretary concerned; (iv) Modernization, renovation or new construction of a building or facility, including kitchens; (v) Any costs related to the development of the application and plan of operations before the effective date of CHSP grant award; (vi) Emergency medical services and ongoing and regular care from doctors and nurses, including but not limited to administering medication, purchase of medical supplies, equipment and medications, overnight nursing services, and other institutional forms of service, care or support; (vii) Occupational therapy and vocational rehabilitation services; or (viii) Other items defined as unallowable costs elsewhere in this subpart, in CHSP grant agreement, and OMB Circular A-87 or 122. (c) Administrative cost limitation. Grantees are subject to the limitation in section 802(j)(4)." 7:7:13.1.1.1.5.4.1.5,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.255 Eligible supportive services.,RHS,,,,"(a) Supportive services or funding for such services may be provided by state, local, public or private providers and CHSP funds. A CHSP under this section shall provide meal and other qualifying services for program participants (and other residents and nonresidents, as described in § 1944.125(a)) that are coordinated on site. (b) Qualifying supportive services are those listed in section 802(k)(16) and in section 1944.105. (c) Meal services shall meet the following guidelines: (1) Type of service. At least one meal a day must be served in a group setting for some or all of the participants; if more than one meal a day is provided, a combination of a group setting and carry-out meals may be utilized. (2) Hot meals. At least one meal a day must be hot. A hot meal for the purpose of this program is one in which the principal food item is hot at the time of serving. (3) Special menus. Grantees shall provide special menus as necessary for meeting the dietary needs arising from the health requirements of conditions such as diabetes and hypertension. Grantees should attempt to meet the dietary needs of varying religious and ethnic backgrounds. (4) Meal service standards. Grantees shall plan for and provide meals which are wholesome, nutritious, and each of which meets a minimum of one-third of the minimum daily dietary allowances as established by the Food and Nutrition Board of the National Academy of Sciences-National Research Council (or State or local standards, if these standards are higher). Grantees must have an annual certification, prepared and signed by a registered dietitian, which states that each meal provided under CHSP meets the minimum daily dietary allowances. (5) Food stamps and agricultural commodities. In providing meal services grantees must apply for and use food stamps and agricultural commodities as set forth in section 802(d)(2)(A). (6) Preference for nutrition providers: In contracting for or otherwise providing for meal services grantees must follow the requirements of section 802(d)(2)(B). These requirements do not preclude a grantee or owner from directly preparing and providing meals under its own auspices." 7:7:13.1.1.1.5.4.1.6,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.256 Eligibility for services.,RHS,,,,"(a) Participants, other residents, and nonresidents. Such individuals are eligible either to participate in CHSP or to receive CHSP services, if they qualify under section 802(e)(1), (4) and (5). Under this paragraph, temporarily disabled persons are also eligible. (b) Economic need. In providing services under CHSP, grantees shall give priority to very low income individuals, and shall consider their service needs in selecting program participants." 7:7:13.1.1.1.5.4.1.7,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.257 Service coordinator.,RHS,,,,"(a) Each grantee must have at least one service coordinator who shall perform the responsibilities listed in section 802(d)(4). (b) The service coordinator shall comply with the qualifications and standards required by the Secretary concerned. The service coordinator shall be trained in the subject areas set forth in section 802(d)(4), and in any other areas required by the Secretary concerned. (c) The service coordinator may be employed directly by the grantee, or employed under a contract with a case management agency on a fee-for-service basis, and may serve less than full-time. The service coordinator or the case management agency providing service coordination shall not provide supportive services under a CHSP grant or have a financial interest in a service provider agency which intends to provide services to the grantee for CHSP. (d) The service coordinator shall: (1) Provide general case management and referral services to all potential participants in CHSP. This involves intake screening, upon referral from the grantee of potential program participants, and preliminary assessment of frailty or disability, using a commonly accepted assessment tool. The service coordinator then will refer to the professional assessment committee (PAC) those individuals who appear eligible for CHSP; (2) Establish professional relationships with all agencies and service providers in the community, and develop a directory of providers for use by program staff and program participants; (3) Refer proposed participants to service providers in the community, or those of the grantee; (4) Serve as staff to the PAC; (5) Complete, for the PAC, all paperwork necessary for the assessment, referral, case monitoring and reassessment processes; (6) Implement any case plan developed by the PAC and agreed to by the program participant; (7) Maintain necessary case files on each program participant, containing such information and kept in such form as HUD and RHS shall require; (8) Provide the necessary case files to PAC members upon request, in connection with PAC duties; (9) Monitor the ongoing provision of services from community agencies and keep the PAC and the agency providing the supportive service informed of the progress of the participant; (10) Educate grant recipient's program participants on such issues as benefits application procedures (e.g. SSI, food stamps, Medicaid), service availability, and program participant options and responsibilities; (11) Establish volunteer support programs with service organizations in the community; (12) Assist the grant recipient in building informal support networks with neighbors, friends and family; and (13) Educate other project management staff on issues related to “aging-in-place” and services coordination, to help them to work with and assist other persons receiving housing assistance through the grantee. (e) The service coordinator shall tailor each participant's case plan to the individual's particular needs. The service coordinator shall work with community agencies, the grantee and third party service providers to ensure that the services are provided on a regular, ongoing, and satisfactory basis, in accordance with the case plan approved by the PAC and the participant. (f) Service coordinators shall not serve as members of the PAC." 7:7:13.1.1.1.5.4.1.8,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.258 Professional assessment committee.,RHS,,,,"(a) General. (1) A professional assessment committee (PAC), as described in this section, shall recommend services appropriate to the functional abilities and needs of each eligible project resident. The PAC shall be either a voluntary committee appointed by the project management or an agency in the community which provides assessment services and conforms to section 802(e)(3)(A) and (B). PAC members are subject to the conflict of interest provisions in section 1944.175(b). (2) The PAC shall utilize procedures that ensure that the process of determining eligibility of individuals for congregate services affords individuals fair treatment, due process, and a right of appeal of the determination of eligibility, and shall ensure the confidentiality of personal and medical records. (3) The dollar value of PAC members' time spent on regular assessments after initial approval of program participants may be counted as match. If a community agency discharges the duties of the PAC, staff time is counted as its imputed value, and if the members are volunteers, their time is counted as volunteer time, according to sections 1944.145(c)(2) (ii) and (iv). (b) Duties of the PAC. The PAC is required to: (1) Perform a formal assessment of each potential elderly program participant to determine if the individual is frail. To qualify as frail, the PAC must determine if the elderly person is deficient in at least three ADLs, as defined in section 1944.105. This assessment shall be based upon the screening done by the service coordinator, and shall include a review of the adequacy of the informal support network ( i.e. , family and friends available to the potential participant to assist in meeting the ADL needs of that individual), and may include a more in-depth medical evaluation, if necessary; (2) Determine if non-elderly disabled individuals qualify under the definition of person with disabilities under section 1944.105. If they do qualify, this is the acceptance criterion for them for CHSP. Persons with disabilities do not require an assessment by the PAC; (3) Perform a regular assessment and updating of the case plan of all participants; (4) Obtain and retain information in participant files, containing such information and maintained in such form, as HUD or RHS shall require; (5) Replace any members of the PAC within 30 days after a member resigns. A PAC shall not do formal assessments if its membership drops below three, or if the qualified medical professional leaves the PAC and has not been replaced. (6) Notify the grantee or eligible owner and the program participants of any proposed modifications to PAC procedures, and provide these parties with a process and reasonable time period in which to review and comment, before adoption of a modification; (7) Provide assurance of nondiscrimination in selection of CHSP participants, with respect to race, religion, color, sex, national origin, familial status or type of disability; (8) Provide complete confidentiality of information related to any individual examined, in accordance with the Privacy Act of 1974; (9) Provide all formal information and reports in writing. (c) Prohibitions relating to the PAC. (1) At least one PAC member shall not have any direct or indirect relationship to the grantee. (2) No PAC member may be affiliated with organizations providing services under the grant. (3) Individuals or staff of third party organizations that act as PAC members may not be paid with CHSP grant funds. (d) Eligibility and admissions. (1) Before selecting potential program participants, each grantee (with PAC assistance) shall develop a CHSP application form. The information in the individual's application is crucial to the PAC's ability to determine the need for further physical or psychological evaluation. (2) The PAC, upon completion of a potential program participant's initial assessment, must make a recommendation to the service coordinator for that individual's acceptance or denial into CHSP. (3) Once a program participant is accepted into CHSP, the PAC must provide a supportive services case plan for each participant. In developing this plan, the PAC must take into consideration the participant's needs and wants. The case plan must provide the minimum supportive services necessary to maintain independence. (e) Transition-out procedures. The grantee or PAC must develop procedures for providing for an individual's transition out of CHSP to another setting. Transition out is based upon the degree of supportive services needed by an individual to continue to live independently. If a program participant leaves the program, but wishes to retain supportive services, he or she may do so, as long as he or she continues to live in an eligible project, pays the full cost of services provided, and management agrees (section 802(e)(4) and (5)). A participant can be moved out of CHSP if he or she: (1) Gains physical and mental health and is able to function without supportive services, even if only for a short time (in which case readmission, based upon reassessment to determine the degree of frailty or the disability, is acceptable); (2) Requires a higher level of care than that which can be provided under CHSP; or (3) Fails to pay services fees. (f) Procedural rights of participants. (1) The PAC must provide an informal process that recognizes the right to due process of individuals receiving assistance. This process, at a minimum, must consist of: (i) Serving the participant with a written notice containing a clear statement of the reasons for termination; (ii) A review of the decision, in which the participant is given the opportunity to present written or oral objections before a person other than the person (or a subordinate of that person) who made or approved the termination decision; and (iii) Prompt written notification of the final decision to the participant. (2) Procedures must ensure that any potential or current program participant, at the time of initial or regular assessment, has the option of refusing offered services and requesting other supportive services as part of the case planning process. (3) In situations where an individual requests additional services, not initially recommended by the PAC, the PAC must make a determination of whether the request is legitimately a needs-based service that can be covered under CHSP subsidy. Individuals can pay for services other than those recommended by the PAC as long as the additional services do not interfere with the efficient operation of the program." 7:7:13.1.1.1.5.4.1.9,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,F,Subpart F—Congregate Housing Services Program,,§ 1944.259 Participatory agreement.,RHS,,,,"(a) Before actual acceptance into CHSP, potential participants must work with the PAC and the service coordinator in developing supportive services case plans. A participant has the option of accepting any of the services under the case plan. (b) Once the plan is approved by the PAC and the program participant, the participant must sign a participatory agreement governing the utilization of the plan's supportive services and the payment of supportive services fees. The grantee annually must renegotiate the agreement with the participant." 7:7:13.1.1.1.5.6.1.1,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.401 Objective.,RHS,,,"[55 FR 41833, Oct. 16, 1990, as amended at 58 FR 227, Jan. 5, 1993]","This subpart sets forth the policies and procedures and delegates authority for providing Technical Assistance (TA) funds to eligible applicants to finance programs of technical and supervisory assistance for self-help housing, as authorized under section 523 of the Housing Act of 1949. Any processing or servicing activity conducted pursuant to this subpart involving authorized assistance to Rural Development employees, members of their families, known close relatives, or business or close personal associates, is subject to the provisions of subpart D of part 1900 of this chapter. Applicants for this assistance are required to identify any known relationship or association with a Rural Development employee. This financial assistance may pay part or all of the cost of developing, administering, or coordinating programs of technical and supervisory assistance to aid needy very low- and low-income families in carrying out self-help housing efforts in rural areas. Very low-income families must receive a priority for recruitment and participation and may not comprise less than the percentage stated in subpart L of part 1940 of this chapter of those assisted in any grant. The primary purpose is to fund organizations that are willing to locate and work with families that otherwise do not qualify as homeowners. Generally, these are families below 50 percent of median incomes, living in substandard housing, and/or lacking the skills to be good homeowners. Grantees will comply with the nondiscrimination regulation subpart E of part 1901 of this chapter which states that no person in the United States shall, on the grounds of race, color, national origin, sex, religion, marital status, mental or physical handicap, or age, be excluded from participating in, be denied the benefits of, or be subject to discrimination in connection with the use of grant funds and all provisions of the Fair Housing Act of 1988." 7:7:13.1.1.1.5.6.1.10,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,"§ 1944.410 Processing preapplications, applications, and completing grant dockets.",RHS,,,"[55 FR 41833, Oct. 16, 1990, as amended at 61 FR 39851, July 31, 1996; 79 FR 76009, Dec. 19, 2014; 81 FR 11031, Mar. 2, 2016]","(a) Form SF-424, “Application for Federal Assistance.” Form SF-424 in an original and one copy must be submitted by the applicant to the District Director. It will be used to establish communication between the applicant and RHS, determine the applicant's eligibility, determine how well the project can compete with similar applications from other organizations and eliminate any proposals which have little or no chance for Federal funding before applicants incur significant expenditures for preparing an application. In addition, the following information will be attached to and become a part of the preapplication: (1) Complete information about the applicant's previous experience and capacity to carry out the objective of the agreement. (2) If the applicant organization is already formed, a copy of or an accurate reference to the specific provisions of State law under which the applicant is organized; a certified copy of the applicant's Articles of Incorporation and Bylaws or other evidence of corporate existence; certificate of incorporation for other than public bodies; evidence of good standing from the State when the corporation has been in existence 1 year or more; the names and addresses of the applicant's members, directors, and officers; and, if another organization is a member of the applicant-organization, its name, address, and principal business. If the applicant is not already formed, attach copies of the proposed organizational documents demonstrating compliance with § 1944.404(d) of this subpart. (3) A current (no more than 12 months old) dated and signed financial statement showing the amounts and specific nature of assets and liabilities together with information on the repayment schedule and status of any debt owed by the applicant. If the applicant is being sponsored by another organization, the same type of financial statement also must be provided by the applicant's sponsor. (4) A narrative statement which includes information about the amount of the grant funds being requested, area(s) to be served, need for self-help housing in the area(s), the number of self-help units proposed to be built, rehabilitated or repaired during the agreement period, housing conditions of low-income families in the area and reasons why families need self-help assistance. Evidence should be provided that the communities support the activity and that there are low-income families willing to contribute their labor in order to obtain adequate housing. Evidence of community support may be letters of support from local officials, individuals and community organizations. The pre-application may contain information such as census materials, local planning studies, surveys, or other readily available information which indicates a need in the area for housing of the type and cost to be provided by the proposed self-help TA program. (5) A plan of how the organization proposes to reach very low-income families living in houses that are deteriorated, dilapidated, overcrowded, and/or lacking plumbing facilities. (6) A proposed budget which will be prepared on SF-424A, “Budget Information (Non-Construction Programs)” will be completed to address applicable assurances as outlined in 2 CFR part 200 as adopted by USDA through 2 CFR part 400. State and local Government will include an assurance that the grantee shall comply with all applicable Federal statutes and regulations in effect with respect to the periods for which it receives grant funding. The State and local governments shall also comply with 2 CFR part 200 as adopted by USDA through 2 CFR part 400. (7) A preliminary survey as to the availability of lots and projected cost of the sites. (8) A list of other activities the applicant is engaged in and expects to continue, and a statement as to other sources of funding and whether it will have sufficient funds to assure continued operation of the other activities for at least the period of the agreement. If multi-funded, its cost allocation plan or indirect cost rate must be part of the pre-application. (9) Whether assistance under paragraph (d) of this section is requested and a brief narrative identifying the need, amount of funds needed, and projected time period. (10) If a project is planned for five or more housing lots or units, an Affirmative Fair Marketing Plan is required. The plan will be in effect until the completion of the project. (b) Preapplication review. (1) The District Director, within 30 days of receipt of the preapplication, Form SF-424, and all other required information and material will complete a thorough review for completeness, accuracy, and conformance to program policy and regulations. Incomplete preapplications will be returned to the applicant for completion. The applicant should be given the name of the regional technical assistance contractor. The County Supervisor in the prospective county will be contacted as to the need for the program in the proposed area and if the necessary resources are available to the grantee. This will include a discussion of the number of 502 and 504 units that will need to be committed to the grantee and the potential work impact on the office during the grant period. If it is determined that the County Office lacks the resources (either personnel or funds) to process all loan requests in a timely manner, the District Director must communicate this need to the State Director along with a recommended solution. (Lack of resources at the county level are not grounds to deny a request). After the District Director has determined that the preapplication is complete and accurate, the District Director will assemble the material in an applicant case file and forward it to the State Director. The case file, as a minimum, must contain the following: (i) Form SF-424, (ii) Documentation required in accordance with 7 CFR part 1970. (iii) Eligibility recommendations, and (iv) HUD Form 935.2 “Affirmative Fair Housing Marketing Plan”, if applicable. (2) The State Director may, if needed, submit the organizational documents with any comments or questions to the Office of General Counsel (OGC) for a preliminary opinion as to whether the applicant is or will be a legal organization of the type required by these regulations and for advice on any other aspects of the preapplication. (3) The State Director, if unable to determine eligibility or qualifications with the advice of the OGC, may submit the preapplication to the National Office for review. The preapplication will contain all memoranda from OGC giving the results of its review. The State Director will identify in the transmittal memorandum to the National Office the specific problem and will recommend possible solutions and any information about the applicant which would be helpful to the National Office in reaching a decision. (4) After an eligibility determination has been made, which should be completed within 30 days unless OGC is involved, the State Director will: (i) If the applicant is eligible, contact the National Office as to the availability of funds or submit the proposal to the National Office for authorization if the requested amount exceeds the State Director's approval authority. If funds are available, the final review officer, either the State Director or the Assistant Administrator, Housing will issue a letter of conditions that the applicant must meet and direct the District Director to issue Form AD-622, “Notice of Preapplication Review Action.” (ii) If the applicant is determined not eligible, the State Director will direct the District Director to issue Form AD-622. (c) Form AD-622, “Notice of Preapplication Review Action.” (1) If the applicant is eligible and after the State Director has returned the pre-application information and, as appropriate, the environmental review documentation required in 7 CFR part 1970 to the Area Office, the Area Director will, within 10 days, prepare and issue Form AD-622. The original Form AD-622 will be signed and delivered to the applicant along with the letter of conditions, a copy to the applicant's case file, a copy to the County Supervisor, and a copy to the State Director. (2) If the applicant is not eligible and after the State Director has returned the preapplication information, the District Director will within 5 days notify the applicant on Form AD-622. The notification will inform the applicant that an appeal of the decision may be made to the National Appeals Staff under subpart B of part 1900 of this chapter. (3) If the applicant is eligible and no grant or loan funds are available, the State Director will return the preapplication information to the District Director who will, within 10 days, notify the applicant on Form AD-622. The notification will explain the facts concerning the lack of funding and that Rural Development will notify them when funding will be available. This is not an appealable decision. (d) Self-help technical assistance grant predevelopment agreement. If the grantee requested predevelopment assistance and the State Director determines that the applicant lacks the financial resources to meet the conditions of grant approval, a grant of up to $10,000 and for up to six months will be made in order for the applicant to provide what is required by paragraph (e) of this section. Exhibit D of this subpart will be used for this purpose. Existing grantees proposing to operate in an area different from the area that they are currently funded to operate are eligible for this grant. However, this grant is available only once for a defined area. This grant is available only after the letter of conditions has been issued. Denial of this assistance is an appealable decision under subpart B of part 1900 of this chapter. (e) Form SF-424, “Application for Federal Assistance.” The applicant will submit Form SF-424 in an original and one copy to the District Director. The application should provide a detailed proposal of its goals including: (1) Names, addresses, number in household, and total annual household income of families who have been contacted by the applicant and are interested in participating in a self-help housing project. Community organizations including minority organizations may be used as a source of names of people interested in self-help housing. (2) Proof that the first group of prospective participating self-help families have qualified for financial assistance. (3) Evidence that lots are optioned by the prospective participating self-help families for the first group. Evidence that lots are available for the remaining groups. (4) Detailed cost estimates of houses to be built by the mutual self-help method. Plans and specifications should be submitted with the cost estimates. (5) Proposed staffing need, including qualifications, experience, proposed hiring schedule, and availability of any prospective employees. (6) Name, address, and official position of the applicant's representative or representatives authorized to act for the applicant and work with Rural Development. (7) Budget information including a detailed budget for the Agreement period based upon the needs outlined in the proposal. SF 424A will be completed to furnish the budget information. (8) Indirect or direct cost policy and proposed indirect cost rate developed in accordance with 2 CFR part 200 as adopted by USDA through 2 CFR part 400. (9) Personnel procedures and practices that will be established or are in existence. Forms to be used should be submitted with the application. (10) A proposed monthly activities schedule showing the proposed dates for starting and completing the recruitment, loan processing and construction phases for each group of participant families." 7:7:13.1.1.1.5.6.1.11,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.411 Conditions for approving a grant.,RHS,,,"[55 FR 41833, Oct. 16, 1990; 56 FR 19253, Apr. 26, 1991; 79 FR 76010, Dec. 19, 2014]","A grant may be approved for an eligible applicant when the conditions in the letter of conditions are met and the following conditions are present: (a) The applicant has or can hire, or contract directly or indirectly with, qualified people to carry out its responsibilities in administering the grant. (b) The applicant has met all of the conditions listed in § 1944.410(e) of this subpart. (c) The grantee furnishes a signed statement that it complies with the requirements of the Departmental Regulations found in 2 CFR part 200 as adopted by USDA through 2 CFR part 400. (d) A resolution has been adopted by the board of directors which authorizes the appropriate officer to execute exhibit A of this subpart and Form RD 400-4, “Assurance Agreement.” (e) The grantee has fidelity bonding as covered in 2 CFR part 200 as adopted by USDA through 2 CFR part 400 if a nonprofit organization or, if a State or local government, to the extent required in 2 CFR part 200 as adopted by USDA through 2 CFR part 400. (f) The grantee has agreed by completing SF-424B, “Assurances-Non Construction Programs,” that it will establish a recordkeeping system that is certifiable by a certified public accountant that it adequately meets the Agreement. (g) The grantee has established an interest bearing checking account on which at least two bonded officials will sign all checks issued and understands that interest earned in excess of $250.00 annually must be submitted to Rural Development quarterly. (The use of minority depository institutions is encouraged.) (h) The grantee has developed an agreement to be executed by the grantee and the self-help participants which clearly sets forth what is expected of each and has incorporated exhibit B-2 of this subpart which clearly shows what work is expected of the participating family." 7:7:13.1.1.1.5.6.1.12,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.412 Docket preparation.,RHS,,,,"When the application and all items required for the complete docket have been received, the District Director will thoroughly examine it to insure the application has been properly and accurately prepared and that it includes the required dates and signatures. The docket items will be assembled and distributed by the District Director in the following order: O = Original. C = Copy." 7:7:13.1.1.1.5.6.1.13,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.413 Grant approval.,RHS,,,,"(a) Approval of grant. Within 30 days of the grantee meeting the conditions of § 1944.411 of this subpart or, if applicable, signing exhibit D, the approving official will: (1) Execute and distribute Form RD 1940-1 in accordance with the Forms Manual Insert (FMI). (2) After the Finance Office acknowledges that funds are obligated, request an initial advance of funds on Form RD 440-57, “Acknowledgment of Obligated Funds/Check Request,” in accordance with the FMI. The amount of this request should cover the applicant's needs for the remainder of the month in which the grant is closed plus the next month. Subsequent advances will cover only a one-month period. (b) Cancellation of an approved grant. An approved grant may be canceled before closing if the applicant is no longer eligible, the proposal is no longer feasible, or the applicant requests cancellation. Cancellation will be accomplished as follows: (1) The District Director will prepare Form RD 1940-10, “Cancellation of U.S. Treasury Check and/or Obligation,” according to the FMI and send it to the State Director with the reasons for cancellation. If the State Director approves the request, Form RD 1940-10 will be returned to the District Office for processing in accordance with the FMI. (2) The District Director will notify the applicant of the cancellation and the right to appeal under subpart B of part 1900 of this chapter. If the applicant requested the cancellation, no appeal rights are provided, but the applicant will still be notified of the cancellation. (c) Disapproval of grant. If a grant is disapproved after the docket has been developed, the approving official will state the reason on the original Form RD 1940-1, or in a memorandum to the District Director. The District Director will notify the applicant in writing of the disapproval and the reason for disapproval. Also, the notification will inform the applicant of its appeal rights under subpart B of part 1900 of this chapter." 7:7:13.1.1.1.5.6.1.14,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.414 [Reserved],RHS,,,, 7:7:13.1.1.1.5.6.1.15,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.415 Grant approval and other approving authorities.,RHS,,,,"(a) The State Director is authorized to approve or disapprove TA grants under this subpart. For a grant in excess of $300,000, or in the case of a grant amendment when the amount of the grant plus any unexpended funds from a previous grant will exceed $400,000, prior written consent of the National Office is required. In such cases, the docket, along with the State Director's recommendations, must be submitted to the National Office for review. (b) The State Director may approve a grant not to exceed $10,000 to an eligible organization under § 1944.410(d) of this subpart. The grant must be limited to 6 months and funds must be used for the development of the final application, family recruitment, and related activities as explained in § 1944.410(e) of this subpart. The amount of this grant will not be included in figuring TA cost per units. (c) The authority to contract for services is limited to the Administrator of Rural Development. (d) Monthly expenditures of the grantee will normally be approved by the District Director unless: (1) The grantee operates in only one county, in which case the authority may be delegated to the County Supervisor. (2) The grantee operates in more than one Rural Development District, in which case the State Director will designate the approving official. (3) The grantee operates in more than one State Director's jurisdiction, in which case the Administrator will designate the approving official. (4) The expenditure is under contract authority, in which case the Contracting Official Representative will approve the monthly expenditure." 7:7:13.1.1.1.5.6.1.16,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.416 Grant closing.,RHS,,,,The grant is closed on the date the Agreement is executed as defined in § 1944.403(a) by the applicant and the Government. Funds may not be advanced prior to the signing of the Agreement. The District Director or Assistant District Director are authorized to execute the Agreement for Rural Development. Person(s) authorized by resolution may sign for the applicant. 7:7:13.1.1.1.5.6.1.17,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.417 Servicing actions after grant closing.,RHS,,,"[55 FR 41833, Oct. 16, 1990; 56 FR 19253, Apr. 26, 1991]","Rural Development has a responsibility to help the grantee be successful and help the grantee avoid cases of fraud and abuse. Servicing actions also include correlating activities between the grantee and Rural Development to the benefit of the participating families. The amount of servicing actions needed will vary in accordance with the experience of the grantee, but as minimum the following actions are required: (a) Monthly, the grantee will provide the District Director with a request for additional funds on Form SF-270, “Request for Advance or Reimbursement.” This request need only show the amount of funds used during the previous month, amount of unspent funds, projected need for the next 30 days, and written justification if the request exceeds the projected need for the next 30 days. This request must be in the District Director's office fifteen days prior to the beginning of the month. Upon receipt of the grantee's request, the District Director will: (1) If the request appears to be in order, process Form RD 440-57 so that delivery of the check will be possible on the first of the next month. (2) If the request does not appear to be in order, immediately contact the grantee to resolve the problem. After the contact: (i) If the explanation is acceptable, process Form RD 440-57 so delivery may be possible by the first of the next month, or (ii) If the explanation is not acceptable, immediately notify the grantee and request the amount of funds that appear reasonable for the next 30 days on Form RD 440-57, so that delivery may be possible by the first of the next month. Unapproved funds that are later approved will be added to the next month's request. (b) Quarterly, the grantee will submit exhibit B of this subpart in an original and three copies to the County Supervisor on or before January 15, April 15, July 15, and October 15 which will verify its progress toward meeting the objectives stated in the Agreement and the application. The County Supervisor will immediately complete the County Office review part and forward the report to the District Office. After exhibit B is received in the District Office, a meeting should be scheduled between the grantee, District Director, and the County supervisor since this is an opportune time for both the grantee and Rural Development to review progress to date and make necessary adjustments for the future. This meeting is required if the grantee was previously identified as a problem grantee or will be identified as a problem grantee at this time. Regardless of whether a meeting will be held, the following will be done: (1) Exhibit B and other information will be evaluated to determine progress made to date. The District Director will comment on exhibit B as to whether the grantee is ahead or behind schedule in each of the following areas: (i) Assisting the projected number of families. (ii) Serving very low-income applicants. Is the grantee reaching a minimum of very low-income families as required in exhibit A, attachment 2 to subpart L of part 1940 of this chapter (available in any Rural Development office). (iii) Equivalent units (EUs). Is the number of EUs completed representative of lapse in time of the grant? For example, if 25 percent of the grant period has elapsed, are 25 percent of the number of EUs completed? (iv) Labor contributions by the family. Are the families working together and are they completing the labor tasks as established on exhibit B-2? (2) The District Director will submit exhibit B to the State Director who will evaluate the quarterly report along with the District Director's comments. If the State Director determines the grantee is progressing satisfactorily, the State Director will sign and forward exhibit B to the National Office. However, if the State Director determines the grantee is not performing as expected, the State Director will notify the grantee that it has been classified a “High Risk” grantee. The notice will specify the deficiencies and inform the grantee of proposed remedies for noncompliance. The notice will advise the grantee that Rural Development is available to assist and provide the name and address of an organization that is under contract with Rural Development to assist them. The State Director will forward a copy of exhibit B, District Directors comments, and the reasons for classifying them as “High Risk” to the National Office, Single Family Housing, Special Programs Branch. When the period of time provided for corrective action has expired, an assessment will be made of the progress by the grantee toward correcting the situation. If the State Director determines: (i) The situation has been corrected or reasonable progress has been made toward correcting the situation, the “High Risk” status will be lifted and the grantee so notified. (ii) The situation has not been corrected but it is correctable if additional time is granted, an extension will be issued. (iii) The situation has not been corrected and it is unlikely to be corrected if given additional time, the grant will be terminated under § 1944.426(b)(1) of this subpart." 7:7:13.1.1.1.5.6.1.18,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.418 [Reserved],RHS,,,, 7:7:13.1.1.1.5.6.1.19,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.419 Final grantee evaluation.,RHS,,,,"Near the end of the grant period but prior to the last month, an evaluation of the grantee will be conducted by Rural Development. The State Director may use Rural Development employees or an organization under contract to Rural Development to provide the evaluation. The evaluation is to determine how successful the grantee was in meeting goals and objectives as defined in the agreement, application, this regulation, and any amendments. (a) This is a quantitative evaluation of the grantee to determine if it met its goals in: (1) Assisting the project number of families in obtaining adequate housing. (2) Meeting the goal of assisting very low-income families. (3) Meeting the family labor requirement in § 1944.411(h) and exhibit B-2 of this subpart. (4) Keeping costs within the guides set in § 1944.407. (5) Meeting order objectives in the Agreement. (b) The evaluation is a narrative addressed to the State Director with a copy of the National Office, Single Family Housing Processing Division. It will be in 3 parts, namely; findings, recommendations, and an overall rating. The rating will be either unacceptable, acceptable, or outstanding, as follows: (1) Outstanding if the grantee met or exceeded all of the goals in paragraph (a) of this section. (2) Acceptable if the grantee met or exceeded all of the goals as defined in paragraph (a) except two. (3) Unacceptable if the grantee failed to obtain an acceptable rating. (c) After the State Director has reviewed the evaluation, a copy will be mailed to the grantee. The grantee may request a review of the evaluation with the District Director. This review is for clarification of the material and to dispute the findings if they are known to be wrong. The rating is not open for discussion except to the extent it can be proven that the findings do not support the rating. If this is the case, the District Director will file an amendment to the State Director." 7:7:13.1.1.1.5.6.1.2,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.402 Grant purposes.,RHS,,,"[55 FR 41833, Oct. 16, 1990, as amended at 67 FR 78328, Dec. 24, 2002]","Rural Development may contract or make a grant to an organization to: (a) Give technical and supervisory assistance to eligible very low- and low-income families as defined in Appendix 9 of HB-1-3550 (available in any Rural Development office), in carrying out self-help housing efforts. (b) Assist other organizations to provide technical and supervisory assistance to eligible families. (c) Develop a final application, recruit families and related activities necessary to participate under paragraph (a) of this section." 7:7:13.1.1.1.5.6.1.20,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.420 Extension or revision of the grant agreement.,RHS,,,,"The State Director may authorize the District Director to execute on behalf of the Government, exhibit C of this subpart, at any time during the grant period provided: (a) The extension period is for no more than one year from the final date of the existing Agreement. (b) The need for the extension is clearly justified. (c) If additional funds are needed, a revised budget is submitted with complete justification, and (d) The grantee is within the guidelines in § 1944.407 of this subpart or the State Director determines that the best interest of the Government will be served by the extension." 7:7:13.1.1.1.5.6.1.21,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.421 Refunding of an existing grantee.,RHS,,,,"Grantees wishing to continue with self-help efforts after the end of the current grant plus any extensions should file Form SF-424, in accordance with § 1944.410(e). It is recommended that it be filed at least 6 months before the end of the current grant period. Funds from the existing grant may be used to meet the conditions of a new grant to serve the same or redefined geographic area. If the grantee is targeting a different geographic area, a new preapplication must be submitted in accordance with § 1944.410 and the grantee may apply for a predevelopment grant in accordance with § 1944.410(d). In addition to meeting the conditions of an applicant as defined in § 1944.411 of this subpart, the grantee must also have received or will receive an acceptable rating on its current grant unless an exception is granted by the State Director. The State Director may grant an exception to the rating if it is determined that the reasons causing the previous unacceptable rating have been removed or will be removed with the approval of this grant." 7:7:13.1.1.1.5.6.1.22,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.422 Audit and other report requirements.,RHS,,,"[55 FR 41833, Oct. 16, 1990; 56 FR 19253, Apr. 26, 1991, as amended at 79 FR 76010, Dec. 19, 2014; 81 FR 7698, Feb. 16, 2016]","The grantee must submit an audit to the appropriate Rural Development District Office annually (or biennially if a State or local government with authority to do a less frequent audit requests it) and the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the grantee's audit period. The audit, conducted by the grantee's auditors, is to be performed in accordance with Generally Accepted Government Auditing Standards (GAGAS), using the publication “Standards for Audit of Governmental Organizations, Programs, Activities and Functions” developed by the Comptroller General of the United States in 1981, and any subsequent revisions. In addition, the audits are also to be performed in accordance with 2 CFR part 200 as adopted by USDA through 2 CFR part 400 and Rural Development requirements as specified in this subpart. Audits of borrower loan funds will be required. The number of borrower accounts audited will be determined by the auditor. In incidences where it is difficult to determine the appropriate number of accounts to be audited, auditors should be authorized by the State Director to audit the lesser of 10 loans or 10 percent of total loans. (a) Nonprofit organizations and others. If determined necessary, these organizations are to be audited in accordance with Rural Development requirements in accordance with 2 CFR part 200 as adopted by USDA through 2 CFR part 400. These requirements also apply to public hospitals, public colleges, and universities if they are excluded from the audit requirements of paragraph (b) of this section. (1) An audit conducted by the grantee's auditor shall be supplied to the Rural Development District Director as soon as possible but in no case later than ninety (90) days following the period covered by the grant agreement. (2) Auditors shall promptly notify United States Department of Agriculture's Office of the Inspector General Regional Inspector General and the Rural Development District Office, in writing, of any indication of fraud, abuse, or illegal acts in grantees use of grant funds or in the handling of borrowers accounts. (3) Nonprofit organizations that receive less than $25,000 a year in Federal financial assistance need not be audited. (b) State and local governments and Indian tribes. These organizations are to be audited in accordance with this subpart and 2 CFR part 200 as adopted by USDA through 2 CFR part 400. The grantee will forward completed audits to the appropriate Federal Cognizant agency and a copy to the Rural Development District Director. “Cognizant agency” for audits is defined at 2 CFR 200.18 as the Federal agency designated to carry out the responsibilities described in § 200.513 Responsibilities, paragraph (a). The cognizant agency for audit is not necessarily the same as the cognizant agency for indirect costs. A list of cognizant agencies for audit may be found at the FAC Web site. Within USDA, the OIG shall fulfill cognizant agency responsibilities. Smaller grantees not assigned a cognizant agency by OMB should contact the Federal agency that provided the most funds. When USDA is designated as the cognizant agency or when it has been determined by the borrower that Rural Development provided the major portion of Federal financial assistance, the State Director will contact the appropriate USDA OIG Regional Inspector General. Rural Development and the borrower shall coordinate all proposed audit plans with the appropriate USDA OIG. (1) State and local governments and Indian tribes that receive $25,000 or more a year in Federal financial assistance shall have an audit made in accordance with 2 CFR part 200 as adopted by USDA through 2 CFR part 400. (2) State and local and Indian tribes that receive less than $25,000 a year in Federal financial assistance shall be exempt from 2 CFR part 200 as adopted by USDA through 2 CFR part 400. (3) Public hospitals and public colleges and universities may be excluded by the State Director from OMB Circular A-128 audit requirements. If such entities are excluded, audits shall be made in accordance with paragraph (a) of this section." 7:7:13.1.1.1.5.6.1.23,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.423 Loan packaging and 502 RH application submittal.,RHS,,,"[55 FR 41833, Oct. 16, 1990, as amended at 67 FR 78328, Dec. 24, 2002]","A grantee is required to assist 502 RH applicants in submitting their application for a RH loan. Loan packaging will be performed in accordance with 7 CFR part 3550; therefore, it is important that the grantee be trained at an early date in the packaging of RH loans. Typically, this training should take place before the first applications are submitted to the County Office and before the grant is closed. A grantee should become very knowledgeable of Rural Development's eligibility requirements but must understand that only Rural Development can approve or deny an applicant assistance. Grantee must work cooperatively with Rural Development in the 502 loan approval process and must work within the regulations for the 502 program and recognize Rural Development's ultimate decision making authority to approve or deny loans. However, the grantee may ask for clarification that may be helpful in working with future applicants. Grant funds may not be used to pay any expense in connection with an appeal that the applicant may file or pursue." 7:7:13.1.1.1.5.6.1.24,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.424 Dwelling construction and standards.,RHS,,,"[55 FR 41833, Oct. 16, 1990, as amended at 67 FR 78328, Dec. 24, 2002]",All construction will be performed in accordance with subpart A of part 1924 of this chapter. The planned work must meet the building requirements of 7 CFR part 3550 and meet the Development Standards as defined in subpart A of part 1924 of this chapter and in any local codes. Sites and site developments must conform to the requirements of subpart C of part 1924 of this chapter. 7:7:13.1.1.1.5.6.1.25,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.425 Handling and accounting for borrower loan funds.,RHS,,,,Grantees will be required to administer borrower loan funds during the construction phases. The extent of their involvement will depend on the experience of the grantee and the amount of authority delegated to them by the District Director in accordance with § 1924.6(c) of subpart A of part 1924 of this chapter. Training should include Rural Development's non-discrimination policies in receiving applications. 7:7:13.1.1.1.5.6.1.26,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.426 Grant closeout.,RHS,,,"[55 FR 41833, Oct. 16, 1990, as amended at 67 FR 78328, Dec. 24, 2002; 68 FR 61331, Oct. 28, 2003; 79 FR 76010, Dec. 19, 2014]","(a) Grant purposes completed. Promptly after the date of completion, grant closeout actions will be taken to allow the orderly discontinuance of grantee activity. (1) The grantee will immediately refund to Rural Development any balance of grant funds that are not committed for the payment of authorized expenses. (2) The grantee will furnish Form SF-269A, “Financial Status Report (short form)” to Rural Development within 90 days after the date of completion of the grant. All other financial, performance, and other reports required as a condition of the grant also will be completed. (3) After the grant closeout, Rural Development retains the right to recover any disallowed costs which are discovered as a result of the final audit. 7 CFR part 3550 will be used by Rural Development to recover any unauthorized expenditures. (4) The grantee will provide Rural Development an audit conforming to those requirements established in this part, including audits of self-help borrower accounts. (5) Upon request from the recipient, any allowable reimbursable cost not covered by previous payments shall be promptly paid by Rural Development. (b) Grant purposes not completed —(1) Notification of termination. The State Director will promptly notify the grantee and the National Office in writing of the termination action including the specific reasons for the decision and the effective date of the termination. The notification to the grantee will specify that if the grantee believes the reason for the proposed termination can be resolved, the grantee should, within 15 calendar days of the date of this notification, contact the State Director in writing requesting a meeting for further consideration. The meeting will be an informal proceeding at which the grantee will be given the opportunity to provide whatever additional information it believes should be considered in reaching a decision concerning the case. The grantee may have an attorney or any other person present at the meeting if desired. Within 7 calendar days of the meeting, the State Director will determine what action to take. (i) If the State Director determines that termination is not necessary, the grantee will be informed by letter along with the District Director. (ii) If the State Director determines that termination of the grant is appropriate, he/she will promptly inform the grantee by the use of exhibit B-3 of subpart B of part 1900 of this chapter. (2) National Office review. (i) Upon receipt of a request from a grantee that the decision of the State Director be reconsidered, the National Office will make a preliminary decision concerning the continued funding of the grantee during the appeal period. Written notification of the decision will be given to the State Director and grantee. (ii) The National Office will then obtain a comprehensive report on the matter from the State Office. This information will be considered together with any additional information that may be provided by the grantee. (c) Grant suspension. When the grantee has failed to comply with the terms of the agreement, the District Director will promptly report the facts to the State Director. The State Director will consider termination or suspension of the grant usually only after a Grantee has been classified as “high risk” in accordance with § 1944.417(b)(2). When the State Director determines that the grantee has a reasonable potential to correct deficiencies the grant may be suspended. The State Director will request written authorization from the National Office to suspend a grantee. The suspension will adhere to 2 CFR part 200 as adopted by USDA through 2 CFR part 400. The grantee will be notified of the grant suspension in writing by the State Director. The State Director will also promptly inform the grantee of its rights to appeal the decision by use of Exhibit B-3 of Subpart B of part 1900 of this chapter. (d) Grant termination. The State Director may terminate the grant agreement whenever Rural Development determines that the grantee has failed to comply with terms of the Agreement. The reasons for termination may include, but are not limited to, such problems as listed in paragraph (e)(3)(i) of exhibit A of this subpart. The State Director may also withhold further disbursement of grant funds and prohibit the grantee from incurring additional obligations of grant funds with written approval of the National Office. Rural Development will allow all necessary and proper costs which grantee could not reasonably avoid. (1) Termination for cause. The grant agreement may be terminated in whole, or in part, at any time before date of completion, whenever Rural Development determines that the grantee has failed to comply with terms of the Agreement. The State Director will notify the grantee in writing giving the reasons for the action and inform the grantee of its rights of appeal by use of exhibit B-3 of subpart B of part 1900 of this chapter. (2) Termination for convenience. FmHA or its successor agency under Public Law 103-354 or the grantee may terminate the grant in whole, or in part, when both parties agree that the continuation of the grant would not produce beneficial results. The two parties will agree in writing to the termination conditions including the effective date. No notice of rights of appeal will be issued by Rural Development." 7:7:13.1.1.1.5.6.1.27,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.427 Grantee self-evaluation.,RHS,,,,"Annually or more often, the board of directors will evaluate their own self-help program. Exhibit E of this subpart is provided for that purpose. It is also recommended that they review their personnel policy, any audits that may have been conducted and other reports to determine if they need to make adjustments in order to prevent fraud and abuse, and meet the goals in the current grant agreement." 7:7:13.1.1.1.5.6.1.28,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§§ 1944.428-1944.449 [Reserved],RHS,,,, 7:7:13.1.1.1.5.6.1.29,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.450 OMB control number.,RHS,,,,"The reporting and recordkeeping requirements contained in this regulation have ben approved by the Office of Management and Budget and have been assigned OMB control number 0575-0043. Public reporting burden for this collection of information is estimated to vary from 10 minutes to 18 hours per response, with an average of 1.17 hours per response including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Department of Agriculture, Clearance Officer, OIRM, room 404-W, Washington, DC 20250; and to the Office of Management and Budget, Paperwork Reduction Project (OMB# 0575-0043), Washington, DC 20503." 7:7:13.1.1.1.5.6.1.3,7,Agriculture,XVIII,H,1944,PART 1944—HOUSING,I,Subpart I—Self-Help Technical Assistance Grants,,§ 1944.403 Definitions.,RHS,,,,"(a) Agreement. The Self-Help Technical Assistance Agreement, which is a document signed by Rural Development and the grantee, sets forth the terms and conditions under which TA funds will be made available. (Exhibit A of this subpart). (b) Agreement period (or grant period). The period of time for which an agreement is in force. Generally, the period will not exceed 24 months. (c) Date of completion. The date when all work under a grant is completed or the date in the TA grant agreement, or any supplement or amendment to it, when Federal assistance ends. (d) Direct costs. Those costs that are specifically identified with a particular project or activity. Grantees receiving funds from a single grant source would consider all costs as direct costs. (e) Disallowed costs. Those charges to a grant which Rural Development determines cannot be authorized. (f) Equivalent units. Equivalent units represent the “theoretical number of units” arrived at by adding the equivalent percentage of completion figure for each family in the self-help program (pre-construction and actual construction) together at any given date during program operations. The sum of the percentage of completion figures for all participant families represent the total number of “theoretical units” completed at any point in time. Equivalent units are useful in measuring progress during the period of the grant and are not a measurement of actual accomplishments. The number of equivalent units for any group can never exceed the number of planned or completed houses for that group. (g) Equivalent value of a modest house. The equivalent value of a modest house is the typical cost of a recent contractor-built Rural Development financed home in the area plus the actual or projected costs of an acceptable site and site development. If Rural Development has not financed a contractor-built house during the last twelve months, the value will be established by use of the Marshall and Swift cost handbook or a similar type of handbook. Equivalent value of a modest house is established by Rural Development. (h) Indirect costs. Those costs that are incurred for common or joint objectives and therefore, cannot be readily and specifically identified with a particular project or activity, e.g., self-help. (i) Mutual self-help. The construction method by which participating families organized in groups generally of 4 to 10 families utilize their own labor to reduce the total construction cost of their homes. Participating families complete construction work on their homes by an exchange of labor with one another. The mutual self-help method must be used for new construction. (j) Organization. (1) A State, political subdivision, or public nonprofit corporation (including Indian tribes or Tribal corporations); or (2) A private nonprofit corporation that is owned and controlled by private persons or interests and is organized and operated for purposes other than making gains or profits for the corporation and is legally precluded from distributing any gains or profits to its members. (k) Participating family. Individuals and/or their families who agree to build homes by the mutual self-help method and rehabilitate homes by the self-help method. Participants are families with very low- or low-incomes who have the ability to furnish their share of the required labor input regardless of the handicap, age, race, color, national origin, religion, family status, or sex of the head of household. The participating family must be approved for a section 502 RH loan or similar loans from other Federal, state, and private lenders that uses income guidelines substantially similar to the Department of Housing and Urban Development before the start of construction, have sufficient time available to assist in building their own homes, and show a desire to work with other families. Each family in the group must contribute labor on each other's homes to accomplish the 65 percent of the total 100 percent of tasks listed in exhibit B-2 of this subpart. A participating family may use a substitute to perform the labor with prior approval of the Grantee and the Rural Development State Director. A substitute is only permitted when the participating family is incapacitated. (l) Self-help. The construction method by which an individual family utilizes their labor to reduce the construction cost of their home without an exchange of labor between participating families. Unless otherwise authorized by the District Director, this method is only funded for repair and rehabilitation type construction. (m) Sponsor. An existing entity that is willing and able to assist an applicant, with or without charge, in applying for a grant and in carrying out responsibilities under the agreement. Examples of sponsors are local rural electric cooperatives, institutions of higher education, community action agencies and other self-help grantees. Also, when available, regional technical and management assistance contractors may qualify to serve as a sponsor at no charge. (n) Technical assistance. The organizing and supervising of groups of families in the construction of their own homes including: (1) Recruiting families who are interested in sharing labor in the construction of each other's homes and assisting such families in obtaining housing loans. (2) Conducting meetings of the families to explain the self-help program and subjects related to home ownership, such as loan payments, taxes, insurance, maintenance, and upkeep of the property. (3) Helping families in planning and developing activities that lead to the acquisition and development of suitable building sites. (4) Assisting families in selecting or developing house plans for homes which will meet their needs and which they can afford. (5) Assisting families in obtaining cost estimates for construction materials and any contracting that may be required. (6) Providing assistance in the preparation of loan applications. (7) Providing construction supervision and training for families while they construct their homes. (8) Providing financial supervision to individual families with section 502 Rural Housing (RH) loans which will minimize the time and effort required by Rural Development in processing borrower expenditures for materials and contract services. (9) Assisting families in solving other housing problems. (o) Termination of a grant. The cancellation of Federal assistance, in whole or in part, at any time before the date of completion."