cfr_sections
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232 rows where part_number = 3560 sorted by section_id
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| 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 |
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| 7:7:15.1.14.2.4.1.1.1 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.1 Applicability and purpose. | RHS | (a) This part sets forth requirements, policies, and procedures for multi-family housing (MFH) direct loan and grant programs to serve eligible very-low, low- and moderate income households. The programs covered by this part are authorized by title V of the Housing Act of 1949 and are: (1) Section 515 Rural Rental Housing, which includes congregate housing, group homes, and Rural Cooperative Housing. Section 515 loans may be made to finance multi-family units in rural areas as defined in § 3560.11. (2) Sections 514 and 516 Farm Labor Housing loans and grants. Housing under these programs may be built in any area with a need and demand for housing for farm workers. (3) Section 521 Rental Assistance. A project-based tenant rent subsidy which may be provided to Rural Rental Housing and Farm Labor Housing facilities. (b) The programs covered by this part provide economically designed and constructed rural rental, cooperative, and farm labor housing and related facilities operated and managed in an affordable, decent, safe, and sanitary manner. (c) Internal Agency procedures containing details for Agency processing under these regulations can be found in the program handbooks, available in any Rural Development office, or from the Rural Development Web site. | |||||
| 7:7:15.1.14.2.4.1.1.10 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.10 Conflict of interest. | RHS | To reduce the potential for employee conflict of interest, all RHS activities will be conducted in accordance with 7 CFR part 1900, subpart D. | |||||
| 7:7:15.1.14.2.4.1.1.11 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.11 Definitions. | RHS | [69 FR 69106, Nov. 26, 2004, as amended at 80 FR 9912, Feb. 24, 2015; 82 FR 49285, Oct. 25, 2017; 87 FR 11279, Mar. 1, 2022; 89 FR 106980, Dec. 31, 2024] | Unless otherwise noted, terms listed in this part shall be defined as follows: Administrator. The head of the Rural Housing Service who reports directly to the Under Secretary for Rural Development in the U.S. Department of Agriculture. Agency. The Rural Housing Service within the Rural Development mission area of the U.S. Department of Agriculture. Amortization. Payment of debt in regular, periodic installments of principal and interest, as opposed to interest only payments. Applicant. An individual, partnership or limited partnership, consumer cooperative, trust, state or local public agency, corporation, limited liability company, nonprofit organization, Indian tribe, association, or other entity that will be the owner of the project for which an application for funding from the Agency is submitted. Appraisal. As used by the Agency, a written report developed by a qualified appraiser as established in subpart P that concludes an opinion of value(s) for a specific real property. Assistance. Financial assistance in the form of a loan, grant, interest credit, or rental assistance. Association of farmers. Two or more farmers acting as a single legal entity. Association members may include the individual members of farming partnerships or corporations. Borrower. An individual, partnership or limited partnership, consumer cooperative, trust, state or local public agency, corporation, limited liability company, nonprofit organization, Indian tribe, association, or other entity that has received a loan from the Agency. Capital Needs Assessment. A Capital Needs Assessment is designed to capture and report on the immediate and the long-range capital needs of an individual property. It includes attention to site features, mechanical and electrical systems, building exterior and common area systems, and dwelling unit interiors. Caretaker. An individual employed by a borrower or a management agent to handle routine interior and exterior maintenance and upkeep of a MFH project. Congregate housing. A ho… | ||||
| 7:7:15.1.14.2.4.1.1.12 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | §§ 3560.12-3560.49 [Reserved] | RHS | ||||||
| 7:7:15.1.14.2.4.1.1.13 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.50 OMB control number. | RHS | The information collection requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0189. Public reporting burden for this collection of information is estimated to vary from 15 minutes to 18 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. A person is not required to respond to a collection of information unless it displays a currently valid OMB control number. | |||||
| 7:7:15.1.14.2.4.1.1.2 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.2 Civil rights. | RHS | (a) As per the Fair Housing Act, as amended and section 504 of the Rehabilitation Act of 1973, all actions taken by recipients of loans and grants will be conducted without regard to race, color, religion, sex, familial status, national origin, age, or disability. These actions include any actions in the sale, rental, or advertising of the dwellings, in the provision of brokerage services, or in residential real estate transactions involving Rural Housing Service (RHS) assistance. It is unlawful for a borrower or grantee or an agent of a borrower or grantee: (1) To refuse to make reasonable accommodations in rules, policies, practices, or services that would provide a person with a disability an opportunity to use or continue to use a dwelling unit and all public and common use areas; or (2) To refuse to provide a reasonable accommodation at the borrower's expense that would not cause an undue financial or administrative burden, or to refuse to allow an individual with a disability to make reasonable modifications to the unit at their own expense with the understanding that the owner may require the tenant to return the unit to its original condition when the unit is vacated by the tenant making the modifications (see § 3560.104(c)). (b) Borrowers and grantees must take reasonable steps to ensure that Limited English Proficiency (LEP) persons receive the language assistance necessary to afford them meaningful access to USDA programs and activities, free of charge. Failure to ensure that LEP persons can effectively participate in or benefit from federally-assisted programs and activities may violate the prohibition under Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d and Title VI regulations against national origin discrimination. USDA has issued guidance to clarify the responsibilities of recipients and subrecipients who receive financial assistance from USDA and to assist them in fulfilling their responsibilities to LEP persons under Title VI of the Civil Rights Act, as amended, and implementing re… | |||||
| 7:7:15.1.14.2.4.1.1.3 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.3 Environmental review requirements. | RHS | [81 FR 11049, Mar. 2, 2016] | RHS will consider environmental impacts of proposed housing as equal with economic, social, and other factors. By working with applicants, Federal agencies, Indian tribes, state and local governments, interested citizens, and organizations, RHS will formulate actions that advance program goals in a manner that protects, enhances, and restores environmental quality. Actions taken under this part must comply with the environmental review requirements in accordance with 7 CFR part 1970. Servicing actions as defined in § 1970.6 of this title are part of financial assistance already provided and do not require additional NEPA review. However, certain post-financial assistance actions that have the potential to have an effect on the environment, such as lien subordinations, sale or lease of Agency-owned real property, or approval of a substantial change in the scope of a project, as defined in § 1970.8 of this title, are actions for the purposes of this part. | ||||
| 7:7:15.1.14.2.4.1.1.4 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.4 Compliance with other Federal requirements. | RHS | [69 FR 69106, Nov. 26, 2004, as amended at 76 FR 80731, Dec. 27, 2011] | RHS is responsible for ensuring that the application is in compliance with all applicable Federal requirements, including the following specific requirements: (a) Intergovernmental review. 7 CFR part 3015, subpart V, or any successor regulation, including the Agency supplemental administrative instruction, RD Instruction 1970-I, ‘Intergovernmental Review,’ available in any Agency office or on the Agency's Web site. (b) National flood insurance. The National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973; the National Flood Insurance Reform Act of 1994; and 7 CFR part 1806, subpart B, or any successor regulation. (c) Clean Air Act and Water Pollution Control Act Requirements. For any contract, all applicable standards, orders or requirements issued under section 306 of the Clean Air Act; section 508 of the Clean Water Act, Executive Order 11738, and 40 CFR part 32. (d) Historic preservation requirements. The provisions of 7 CFR part 1901, subpart F or any successor regulation. (e) Lead-based paint requirements. The applicable provisions of 24 CFR part 35, subparts A through D, J, and R, as published by the U.S. Department of Housing and Urban Development. | ||||
| 7:7:15.1.14.2.4.1.1.5 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.5 State, local or tribal laws. | RHS | Borrowers must comply with all applicable state and local laws, and laws of Federally-recognized Indian tribes to the extent they are not inconsistent with this part. | |||||
| 7:7:15.1.14.2.4.1.1.6 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.6 Borrower responsibility and requirements. | RHS | (a) Borrower responsibilities and requirements specified in this part may be carried out by an individual or entity designated by the borrower to act on behalf of the borrower such as a resident manager or management agent. Ultimate accountability to the Agency, however, is with the borrower whether or not the borrower designated another person or entity to act on the borrower's behalf. (b) Borrowers who have not executed a loan agreement, and who were not required to execute a loan agreement by the regulations in effect at the time of their loan closing are exempt from the requirements of subparts D through G of this part, as long as the borrower is not in default of any applicable requirement, security instrument, payment, or any other agreement with the Agency. Such borrowers must provide evidence of tenant income eligibility in accordance with § 3560.152(a), except in Farm Labor Housing where the tenant is not paying shelter cost. | |||||
| 7:7:15.1.14.2.4.1.1.7 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.7 Delegation of responsibility. | RHS | The RHS Administrator may delegate, on an individual or other basis, any decision-making responsibility for Agency programs, unless otherwise noted. | |||||
| 7:7:15.1.14.2.4.1.1.8 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.8 Administrator's exception authority. | RHS | [69 FR 69106, Nov. 26, 2004, as amended at 87 FR 11279, Mar. 1, 2022] | The RHS Administrator may make an exception to any provision of this part or address any omissions provided that the exception is consistent with the applicable statute, does not adversely affect the interest of the Federal Government, and does not adversely affect the accomplishment of the purposes of the MFH programs or application of the requirement would result in undue hardship on the tenants. Exception requests presented to the RHS Administrator must have the concurrence of a Rural Development Leadership Designee or a Deputy Administrator for MFH. | ||||
| 7:7:15.1.14.2.4.1.1.9 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | A | Subpart A—General Provisions and Definitions | § 3560.9 Reviews and appeals. | RHS | Rural Housing Service decisions may be appealed pursuant to 7 CFR part 11. | |||||
| 7:7:15.1.14.2.4.10.1.1 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.451 General. | RHS | This subpart contains special servicing, enforcement, liquidation, and other actions that the borrower may request or the Agency may implement when compliance violations, monetary defaults, or non-monetary defaults cannot be resolved through regular servicing. (a) Agency obligations. The Agency is under no obligation to offer or agree to any special servicing actions. (b) Relationship to workout agreements. Special servicing actions may be implemented either as a part of a workout agreement, developed in accordance with § 3560.453, or as an action approved by the Agency separate from a workout agreement unless indicated otherwise in this subpart. | |||||
| 7:7:15.1.14.2.4.10.1.10 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.460 Double damages. | RHS | (a) Action to recover assets or income. (1) The Agency may request to the Attorney General to bring an action in a United States district court to recover any assets or income used by any person in violation of the provisions of a loan made by the Agency under this section or in violation of any applicable statute or regulation. (2) For the purposes of this section, a use of assets or income in violation of the applicable loan, statute, or regulation includes any use for which the documentation in the books and accounts does not establish that the use was made for a reasonable operating expense or necessary repair of the project or for which the documentation has not been maintained in accordance with the requirements of the Agency and in reasonable condition for proper audit. (3) For the purposes of this section, the term “person” means: (i) Any individual or entity that borrows funds in accordance with programs authorized by this section; (ii) Any individual or entity holding 25 percent or more interest in any entity that the Agency funds in accordance with programs authorized by this section; and (iii) Any officer, director, or partner of an entity that borrows funds in accordance with programs authorized by this section. (b) Amount recoverable. (1) In any judgment favorable to the United States entered under this section, the Attorney General may recover double the value of the assets and income of the project that the court determines to have been used in violation of the provisions of a loan made by the Agency under this section or any applicable statute or regulation, plus all costs related to the actions, including reasonable attorney and auditing fees. (2) Notwithstanding any other provisions of law, the Agency may use amounts recovered under this section for activities authorized under this section and such funds must remain available for such use until expended. (c) Time limitation. Notwithstanding any other provisions of law, an action under this section may be commenced at any time duri… | |||||
| 7:7:15.1.14.2.4.10.1.11 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.461 Enforcement provisions. | RHS | [69 FR 69106, Nov. 26, 2004, as amended at 81 FR 57442, Aug. 23, 2016] | (a) Equity skimming —(1) Criminal penalty. Whoever, as an owner, agent, employee, or manager, or is otherwise in custody, control, or possession of property that is security for a loan made under this title, willfully uses, or authorizes the use, of any part of the rents, assets, proceeds, income, or other funds derived from such property, for any purpose other than to meet actual, reasonable, and necessary expenses of the property, or for any other purpose not authorized by this title or the regulations adopted pursuant to this title, must be fined under title 18, United States Code, or imprisoned not more than five years, or both. (2) Civil sanctions. An entity or individual who as an owner, operator, employee, or manager, or who acts as an agency for a property that is security for a loan made under this title where any part of the rents, assets, proceeds, income, or other funds derived from such property are used for any purpose other than to meet actual, reasonable, and necessary expenses of the property, or for any other purpose not authorized by this title of the regulations adopted pursuant to this title, must be subject to a fine of not more than $25,000 per violation. The sanctions provided in this paragraph may be imposed in addition to any other civil sanctions or civil monetary penalties authorized by law. (b) Civil monetary penalties —(1) When civil monetary penalties may be imposed. The Agency may, after notice and opportunity for a hearing, impose a civil monetary penalty in accordance with this section against any individual or entity, including its owners, officers, general partners, limited partners, or employees, who knowingly and materially violate, or participate in the violation of, the provisions of this title, the regulation issued by the Agency pursuant to this title, or agreements made in accordance to this title by: (i) Submitting information to the Agency that is false. (ii) Providing the Agency with false certifications. (iii) Failing to submit information requested by t… | ||||
| 7:7:15.1.14.2.4.10.1.12 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.462 Money laundering. | RHS | The Agency will act in accordance with U.S. Code Title 18, part I, chapter 95, section 1956(c)(7)(D). | |||||
| 7:7:15.1.14.2.4.10.1.13 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.463 Obstruction of Federal audits. | RHS | The Agency will act in accordance with U.S. Code Title 18, part I, chapter 73, section 1516(a). | |||||
| 7:7:15.1.14.2.4.10.1.14 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | §§ 3560.464-3560.499 [Reserved] | RHS | ||||||
| 7:7:15.1.14.2.4.10.1.15 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.500 OMB control number. | RHS | The information collection requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0189. Public reporting burden for this collection of information is estimated to vary from 15 minutes to 18 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. A person is not required to respond to a collection of information unless it displays a currently valid OMB control number. | |||||
| 7:7:15.1.14.2.4.10.1.2 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.452 Monetary and non-monetary defaults. | RHS | (a) General. Borrowers are in default when they have received a compliance violation notice, issued in accordance with § 3560.354, and have failed to correct the compliance violation identified in the compliance violation notice within the time period specified in the notice. Compliance violations include, but are not limited to, violations of promissory note provisions, loan or grant agreement provisions, regulatory, or other Agency requirements, including requirements imposed on a borrower through a workout agreement developed in accordance with § 3560.453. (b) Monetary defaults. A monetary default exists when any amount due to the Agency or a third party (such as real estate taxes and insurance) under a promissory note, loan or grant agreement, workout agreement, or other agreement remains due more than 30 days after the due date. (c) Nonmonetary defaults. A nonmonetary default exists when a borrower fails to correct a compliance violation, other than a monetary amount past due, within the time period specified in a compliance violation notice issued in accordance with § 3560.354. Nonmonetary defaults include, but are not limited to, failure to: (1) Operate and manage a housing project in accordance with the Agency approved management plan or Agency requirements; (2) Maintain the physical condition of a housing project in a decent, safe, and sanitary manner and in accordance with Agency requirements; (3) Keep general operating expense, reserve, and other financial accounts related to a housing project at required funding levels; (4) Occupy rental units with eligible tenants, unless granted an exception by the Agency; (5) Charge correct rents or to correctly calculate net tenant contributions, utility allowances, or rental assistance payments or to properly administer the Agency rental assistance assigned to the housing project; (6) Submit required annual financial reports to the Agency within time periods specified in § 3560.308; (7) Submit management plans, leases, occupancy rules, and other re… | |||||
| 7:7:15.1.14.2.4.10.1.3 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.453 Workout agreements. | RHS | (a) General. (1) Prevention or resolution of compliance violations or default cures are a borrower's responsibility. (2) A borrower may develop and submit to the Agency for approval a workout agreement that proposes actions to be taken over a period of time to prevent or correct a compliance violation or to cure a monetary or non-monetary default. (3) A borrower developed workout agreement may propose, but is not limited to, the following actions: (i) A combination of one or more of the special servicing actions outlined in §§ 3560.454 and 3560.455; (ii) A change in operations and management at a housing project; or (iii) A commitment of additional financial resources to the housing project with the amount and source of the additional resources to be committed to the housing project specifically identified. (b) Workout agreement approval. (1) The Agency is under no obligation to approve a workout agreement as submitted by a borrower or to act with forbearance when a housing project is in monetary or non-monetary default. (2) Borrower developed workout agreements may not be implemented until the borrower receives written approval from the Agency. (3) The Agency will only approve a workout agreement if the Agency determines that the actions proposed are likely to prevent or correct compliance violations or cure a default and approval is in the best interest of the Federal Government and tenants. (4) The Agency will only approve a workout agreement if the proposed actions are consistent with the borrower's management plan. If proposed actions are not consistent with the borrower's management plan, applicable revisions to the borrower's management plan must be made before approval of the workout agreement is given. (c) Workout agreement required content. (1) Workout agreements submitted to the Agency for approval must be in writing and signed by the borrower. Workout agreements must describe proposed actions in sufficient detail to demonstrate the likelihood of the actions to prevent or correct compli… | |||||
| 7:7:15.1.14.2.4.10.1.4 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.454 Special servicing actions related to housing operations. | RHS | (a) Changing rents or revising budgets. The Agency may approve a borrower request for a rent change, rent incentives, or a revised budget, at any time during a housing project's fiscal year. (b) Occupancy waivers. If the Agency determines that a housing project with high vacancies could be kept operationally and financially viable by allowing the borrower to accept as tenants persons with incomes above the income eligibility standards specified in § 3560.152(a), the Agency, in writing, may grant the borrower an occupancy waiver to allow such persons as tenants. Occupancy waivers will be in effect only during the time period specified by the Agency when the waiver is granted. In addition, borrowers must rent to all eligible applicants on the housing projects waiting list prior to accepting persons with incomes above the Agency standards as tenants. (c) Additional rental assistance (RA). If the Agency determines that a housing project with high vacancies could be kept operationally and financially viable by increasing the amount of RA allocated to the housing project, the Agency, subject to available funds, may offer the housing project RA as a means of preventing or correcting a compliance violation or curing a default. (d) Special note rents. When a Plan II housing project is experiencing severe vacancies due to market conditions, the Agency may approve a rent less than the note rent to attract and keep tenants whose incomes, according to the formula in § 3560.203, would require them to pay the note rent. The reduced rent is called a Special Note Rent (SNR) and, as noted in § 3560.210, approval of an SNR may affect approvals of loan proposals submitted to the Agency for the market area where the SNR is in effect. (1) An SNR rent may only be requested as a part of a proposed workout agreement and must include documentation of market conditions, the housing project's vacancy rates, evidence of marketing efforts, and other concerns necessitating the request for an SNR. (2) Borrowers must forego the annu… | |||||
| 7:7:15.1.14.2.4.10.1.5 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.455 Special servicing actions related to loan accounts. | RHS | (a) General. To prevent or correct a compliance violation or to prevent or cure a default in a situation that cannot be resolved through regular servicing, the Agency may approve a deferral of loan payments or a loan restructuring. Nothing herein precludes the Agency from initiating appropriate legal action to correct a compliance violation if the Agency determines such action is more in the Government's interest than entering into a special servicing agreement as provided for in this section. Procedures for debt collection are discussed in § 3560.460. As part of a workout agreement, the Agency may agree to accept less than full monthly payment installments due on an Agency loan for a specified period of time, not to exceed the effective period of the workout agreement. (b) Loan reamortizations. A loan reamortization is a restructuring of loan terms and conditions over a period of time that does not exceed the remaining useful life of the housing project. (1) Loan reamortizations will only be approved when they are in the best interest of the Federal Government and tenants and when the following conditions are met. (i) The Agency determines that the borrower will be unable to meet their obligations without a reduction in monthly payment installments; and (ii) The Agency is satisfied that the security, including the potential income for debt service, will be adequate to protect the Agency's interest over the term of the reamortization and that the reamortization will not adversely affect the Federal Government's lien priority. (2) If the Agency approves a reamortization of a loan under this section, it will be at the existing note rate, or the current interest rate at the time of reamortization closing or approval, whichever is less. (3) Loan reamortization may be used to: (i) Restructure loan repayments to prevent or correct a compliance violation or cure a default caused by circumstances beyond the borrower's control in situations where the borrower is otherwise in compliance with Agency requirements;… | |||||
| 7:7:15.1.14.2.4.10.1.6 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.456 Liquidation. | RHS | Prior to any servicing action which might lead to the acquisition of real property by the Agency, the Agency must complete a due diligence report to assess any potential contamination of the property from hazardous substances, hazardous wastes, or petroleum products. The borrower must cooperate with the Agency in the development of this report. (a) Before acceleration. Before accelerating a project loan, the Agency will consider the possibility that the borrower is forcing an acceleration to circumvent the prepayment process. If it is found that this is the borrower's motivation, the Agency will consider alternatives to acceleration, such as suing for specific performance under loan and management documents. (b) Acceleration. When a borrower is in monetary or non-monetary default, the Agency will accelerate the loan unless the Agency decides other enforcement measures are more appropriate. (1) If the borrower does not pay the full account balance and meet the other terms of the acceleration notice within the time period set forth in the acceleration notice, the Agency will foreclose or acquire the security property through deed in lieu of foreclosure. (2) The Agency will suspend interest credit and rental assistance. (3) The Agency will not accept partial payment of an accelerated loan unless required by state law. (c) Voluntary liquidation. After acceleration, borrowers may voluntarily liquidate through either of the following mechanisms: (1) Deed in lieu of foreclosure. RHS may accept a deed in lieu of foreclosure to convey title to the security property only after the debt has been accelerated and when it is in the Government's best interest. (2) Offer by third party. If a junior lienholder or cosigner makes an offer in the amount of at least the net recovery value, RHS may assign the note and mortgage after all appeal rights have expired. (d) Foreclosure. (1) The Agency will initiate foreclosure when a borrower is in monetary or non-monetary default and foreclosure is in the best interest of … | |||||
| 7:7:15.1.14.2.4.10.1.7 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.457 Negotiated debt settlement. | RHS | (a) Borrower proposals to settle debt. A borrower who cannot pay the full amount of loan payments may propose an offer to settle an outstanding debt for less than the full amount of that debt. The Agency may approve a negotiated debt settlement only in cases where a default is evident and doing so is in the best interest of the Federal Government and tenants. (b) Required information. Borrowers requesting debt settlement must submit complete and accurate information from which a full determination of financial condition can be made. Debt settlement offers will not be approved by the Agency unless the financial information submitted by the borrower indicates that the borrower will be able to make the debt settlement payments as proposed. (c) Effective date of approval. Debt settlement offers will not be accepted until the borrower receives written approval from the Agency. (d) Appraisal requirement. No debt settlement offer will be accepted for less than the net recovery value of the security as determined by a licensed appraiser or other qualified official, and concurred in by the Agency's qualified appraisal review official or other qualified official. (e) Disposition of security prior to offer. Borrowers are not required to dispose of security prior to making a debt settlement offer. However, if a borrower has disposed of security prior to making a debt settlement offer, the proceeds from the disposed security must be applied to the borrower's account prior to any negotiations on the debt settlement offer. (f) Final release condition. Upon full payment of the approved debt settlement, the Agency will release the borrower from liability. | |||||
| 7:7:15.1.14.2.4.10.1.8 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.458 Special property circumstances. | RHS | [69 FR 69106, Nov. 26, 2004, as amended at 81 FR 11049, Mar. 2, 2016] | (a) Abandonment. When the Agency determines that a borrower has abandoned security for a loan under this part, the Agency will take the steps necessary to protect the Federal Government's interest in the security. Costs associated with managing abandoned property are the responsibility of the borrower and will be charged to the borrower's account until liquidation is completed. (b) Other security. The Agency will service security such as collateral assignments, assignments of rents, Housing Assistance Payments Contracts, and notices of lienholder interest according to acceptable practices in the respective states. (c) Taking of additional security to protect Agency interests. The Agency may require borrowers to provide additional security in the form of real estate, cash reserves, letters of credit, or other security when needed to improve the chances that the Agency will not suffer a loss, and when: (1) The account is in default; or (2) The property has not been properly managed or maintained. (d) Due diligence. When the Agency has completed an environmental site assessment in accordance with 7 CFR part 1970, and decides not to acquire security property through liquidation action or chooses to abandon its security interest in real property, whether due in whole or in part, to releases of or the presence of contamination from hazardous substances, hazardous wastes, or petroleum products, the Agency will provide the appropriate environmental authorities with a copy of its environmental site assessment. | ||||
| 7:7:15.1.14.2.4.10.1.9 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | J | Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions | § 3560.459 Special borrower circumstances. | RHS | (a) Deceased borrower, bankruptcy, insolvency, and divorce actions. The Agency will address borrower accounts affected by special circumstances such as death, bankruptcy, insolvency, and divorce on a case-by-case basis. The Agency will make servicing decisions in such cases on the basis of best interest to the Federal Government and tenants. The Agency will bring a legal action to establish the legal capacity of the borrower to administer the project if found necessary to protect the government's interests. In order for the Agency to make servicing decisions in such cases, the borrower or the borrower's representative will provide to the Agency: (1) On the part of the heirs or executor of the borrower's estate, evidence of legal action due to a will or court actions that establish who is to become the owner; (2) The financial status of the borrower and any member pledging additional security for the debt; (3) The status of the security property; and (4) The impact of the identified actions on the operation of the project. (b) Membership liability agreements. If a borrower's note is endorsed by individuals other than the borrower or a borrower has security agreements with members of the organization for the purchase of shares of stock or for the payment of a pro rata share of the loan in the event of default, or has individual liability agreements, which are usually assigned to and held by the Agency as additional security for the loan, the security and liability agreements must be adequate to protect the Agency's interest. (c) Security issues in participation loans. When a multi-family housing (MFH) project is receiving financing or a subsidy from sources other than the Agency, the Agency will service the account in accordance with the participation agreements made with the Agency and the other funding sources under § 3560.65. | |||||
| 7:7:15.1.14.2.4.11.1.1 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | K | Subpart K—Management and Disposition of Real Estate Owned (REO) Properties | § 3560.501 General. | RHS | This subpart contains Agency procedures and other policies related to the management and disposition of multi-family housing (MFH) projects in the Agency's inventory (Real Estate Owned (REO) property). Housing projects will not be accepted into the Agency's inventory unless one of the following has occurred: (a) The borrower has abandoned the housing project and the Agency has performed the required steps to take the housing project into custody. (b) The housing project title has been transferred to the Agency as a result of foreclosure, voluntary conveyance, redemption, or other action. | |||||
| 7:7:15.1.14.2.4.11.1.2 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | K | Subpart K—Management and Disposition of Real Estate Owned (REO) Properties | § 3560.502 Tenant notifications and assistance. | RHS | Each tenant in an REO property designated to be sold as a non-program property will be notified by the Agency, in writing, of the housing projects' non-program designation and will be given an opportunity to obtain a Letter Of Priority Entitlement (LOPE) as specified in § 3560.159(c). | |||||
| 7:7:15.1.14.2.4.11.1.3 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | K | Subpart K—Management and Disposition of Real Estate Owned (REO) Properties | § 3560.503 Disposition of REO property. | RHS | (a) Preference will be given to offers from bidders who are determined eligible by the Agency to purchase REO property designated to be sold as program property. It is the Agency's priority that property previously operated as program property prior to becoming REO inventory property be sold as program property. However, REO property may be sold under whatever Agency program is most appropriate for the property and the community needs regardless of the program under which the property was originally financed or whether the property was being used to secure loans under more than one Agency program. (b) When the Agency determines that the REO property to be sold is not decent, safe, and sanitary and/or does not meet cost effective energy conservation standards, it will disclose the basis for this determination to prospective purchasers. The deed by which such an REO property is conveyed will contain a covenant restricting it from residential use until it is decent, safe, and sanitary, and meets the Agency's cost effective conservation standards. The Agency will also notify any potential purchaser of any known lead based paint hazards. | |||||
| 7:7:15.1.14.2.4.11.1.4 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | K | Subpart K—Management and Disposition of Real Estate Owned (REO) Properties | § 3560.504 Sales price and bidding process. | RHS | (a) The loan documents related to REO property sold for program purposes must contain the restrictive-use language specified in § 3560.662(a). (b) Entities bidding on REO property designated to be sold as program property must submit a loan application package that meets the requirements specified in subpart B of this part. (1) Bidders on REO property designated to be sold as program property must meet the eligibility requirements established under § 3560.55. (2) Bidders determined by the Agency to be ineligible to purchase REO property designated to be sold as program property will be notified in writing. The bidding process will continue regardless of pending appeals. (3) All offers from bidders determined to be eligible to purchase REO property designated to be sold as program property will be considered in the bidding process and must provide evidence of financial stability and credit worthiness. (c) The Agency will determine the successful bidder on REO property designated to be sold as program property by conducting a drawing of sealed bids. (1) The Agency may authorize the sale of an REO property by sealed bid or public auction when it is in the best interest of the Government. The Agency will publicly solicit requests for sealed bids and publicize auctions. If the highest bid is lower than the minimum acceptable bid established by the Agency, or if no acceptable bids are received, the Agency may negotiate a sale without further public notice. (2) Bidders who desire to withdraw their bids must do so prior to the drawing date. (d) Property designated to be sold as non-program property may be sold to entities that do not meet the Agency's eligible borrower requirements specified in § 3560.55, and must be sold for cash or on terms approved by the Agency. Cash sales will be given first preference and will be drawn before any sales on terms. | |||||
| 7:7:15.1.14.2.4.11.1.5 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | K | Subpart K—Management and Disposition of Real Estate Owned (REO) Properties | § 3560.505 Agency loans to finance purchases of REO properties. | RHS | (a) Agency loans to finance the purchase of REO property designated to be sold as program property must meet the same requirements as specified in subparts A and B of this part. In addition, the following provisions apply. (1) At the borrower's option, the interest rate will be the prevailing rate at the time of loan approval or the prevailing rate at loan closing. (2) Purchasers may pay closing costs from their own funds or, if allowable under subparts B, L, or M of this part, as applicable, may finance such costs as part of the Agency loan. (b) Agency loans to finance the purchase of REO property designated to be sold as non-program property must meet the following terms. (1) A down payment of not less than 10 percent of the purchase price is required at closing. (2) The interest rate will equal the lesser of the prevailing interest rate at the time of loan approval or loan closing for MFH loans plus one-half percent. (3) The note amount will be amortized over a period not to exceed 10 years. If the Agency determines that more favorable terms are necessary to facilitate the sale, the note amount may be amortized using a 30-year factor with payment in full due no later than 10 years from the date of closing (balloon payment). In no case will the term be longer than the useful life of the property. (4) Agency loans to finance the purchase of non-program REO property are subject to the availability of funds. (c) Loan limits and allowable uses of loan funds specified in subparts B, L, and M of this part, as applicable, are applicable to any Agency-financed (credit) sale of REO property. (d) Title clearance and loan closing for an Agency financed sale and any subsequent loan to be closed simultaneously with the sale must meet the requirements in subpart B of this part for an initial loan, with the following exceptions: (1) A “Quit Claim” or other non-warranty deed will be used; and (2) The buyer must pay attorney's fees, insurance costs, recording fees and other customary fees unless they are included in … | |||||
| 7:7:15.1.14.2.4.11.1.6 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | K | Subpart K—Management and Disposition of Real Estate Owned (REO) Properties | § 3560.506 Conversion of single family type REO property to MFH use. | RHS | Single family type REO property may be sold for conversion to MFH program use under the following conditions: (a) The Agency will allow nonprofit organizations, public bodies, or for-profit entities to purchase single family type REO property for conversion to MFH program use. When the Agency finances the sale of single family-type REO property for conversion to rural rental housing program use ( i.e. , MFH including group homes and homes for the elderly or disabled, farm labor housing, or rural cooperative housing), the sale price will be the lesser of the Federal Government's investment or an amount based on the “as-is” market value of the housing project as determined by an appraisal conducted in accordance with subpart P of this part. (b) The Agency will only accept written offers to purchase two or more single family type REO properties for conversion to rural rental housing from nonprofit organizations, public bodies, or for-profit entities with a good record of providing housing under the Agency's MFH programs. The single family type properties are not required to be contiguous, however, they must be located in close enough proximity so that management capabilities are not diminished because of distance. | |||||
| 7:7:15.1.14.2.4.11.1.7 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | K | Subpart K—Management and Disposition of Real Estate Owned (REO) Properties | §§ 3560.507-3560.549 [Reserved] | RHS | ||||||
| 7:7:15.1.14.2.4.11.1.8 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | K | Subpart K—Management and Disposition of Real Estate Owned (REO) Properties | § 3560.550 OMB control number. | RHS | The information collection requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0189. Public reporting burden for this collection of information is estimated to vary from 15 minutes to 18 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. A person is not required to respond to a collection of information unless it displays a currently valid OMB control number. | |||||
| 7:7:15.1.14.2.4.12.1.1 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.551 General. | RHS | This subpart establishes the requirements for making loans and grants for off-farm labor housing and for ongoing operations of this housing. Unless otherwise specified in this subpart, the requirements of subparts A through K, N, O, and P of this part will apply in addition to the requirements in this subpart. | |||||
| 7:7:15.1.14.2.4.12.1.10 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.560 Security. | RHS | The security requirements established in § 3560.61 will apply to all applications for off-farm labor housing loans. | |||||
| 7:7:15.1.14.2.4.12.1.11 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.561 Technical, legal, insurance and other services. | RHS | The requirements established under § 3560.62 apply to all applications for off-farm labor housing loans and grants. | |||||
| 7:7:15.1.14.2.4.12.1.12 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.562 Loan and grant limits. | RHS | (a) Determining the security value. The requirements established under § 3560.63(a) apply to off-farm labor housing loans. (b) Maximum amount of loan. The requirements established in § 3560.63(c)(1) and (2), regarding borrower equity contribution apply to all applications for off-farm labor housing loans. (For applicants eligible under § 3560.555(a)(2), the amount of Agency financing for the housing will not exceed 95 percent of the total development cost or 95 percent of the security value available for the Agency loan, whichever is lower.) In determining the amount of the loan, the Agency will also review the capacity of the applicant to amortize such loan, considering any rental assistance provided for use in the housing, and any rents anticipated to be paid by farmworkers expected to occupy the housing. (c) Maximum amount of grant. The amount of any off-farm labor housing grant must not exceed the lesser of: (1) Ninety percent of the total development cost, or (2) That portion of the total development cost which exceeds the sum of any amount provided by the applicant from their own resources plus the amount of any loans approved for the applicant, considering the capacity of the applicant to amortize the loan. | |||||
| 7:7:15.1.14.2.4.12.1.13 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.563 Initial operating capital. | RHS | The requirements for § 3560.64 apply to all applications for off-farm labor housing loans and grants. | |||||
| 7:7:15.1.14.2.4.12.1.14 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.564 Reserve accounts. | RHS | The requirements for § 3560.65 apply to all applications for off-farm labor housing loans and grants. | |||||
| 7:7:15.1.14.2.4.12.1.15 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.565 Participation with other funding or financing sources. | RHS | The requirements established in § 3560.66 apply to all applications for off-farm labor housing loans and grants, except that the 25 percent requirements stated in paragraph § 3560.66(b)(1) may consist of loan and/or grant funds. | |||||
| 7:7:15.1.14.2.4.12.1.16 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.566 Loan and grant rates and terms. | RHS | [69 FR 69106, Nov. 26, 2004, as amended at 89 FR 85037, Oct. 25, 2024] | (a) Amortization period. The loan will be amortized over a period not to exceed 33 years. The amortization schedule will take into account the depreciation of the security and ensure that the loan will be adequately secured. (b) Interest rate. The effective interest rate will be 1 percent. (c) Term of grant agreement. The grant agreement will remain in effect for as long as there is a need for the housing, as determined by the Agency. (d) Grant period of performance. The grant period of performance is five (5) years, which starts on the date the grant agreement is executed by both the Agency and the grantee and ends five (5) years from the date the grant agreement was executed by both the Agency and the grantee. | ||||
| 7:7:15.1.14.2.4.12.1.17 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.567 Establishing the profit base on initial investment. | RHS | The requirements established under § 3560.68 apply to applicants eligible under § 3560.555(a)(2) and operating as a limited partnership with a nonprofit general partner. | |||||
| 7:7:15.1.14.2.4.12.1.18 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.568 Supplemental requirements for seasonal off-farm labor housing. | RHS | For off-farm labor housing operating on a seasonal basis, the management plan must establish specific opening and closing dates. During the off-season, off-farm labor housing may be used as defined in subpart A of this part under short-term lease provisions. Where rents are charged on a per-unit basis and family income qualifies the household for rental assistance, rental assistance may be used. | |||||
| 7:7:15.1.14.2.4.12.1.19 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.569 Supplemental requirements for manufactured housing. | RHS | The requirements established in § 3560.70 apply to all applications for off-farm labor housing loans and grants. | |||||
| 7:7:15.1.14.2.4.12.1.2 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.552 Program objectives. | RHS | (a) In addition to the objectives stated in § 3560.52, off-farm labor housing loan and grant funds will be used to increase: (1) The supply of affordable housing for farm labor; and (2) The ability of communities to attract farm labor by providing housing which is affordable, decent, safe and sanitary. (b) Under section 516(i) of the Housing Act of 1949 (42 U.S.C. 1486(i)), the Agency may award technical assistance grants to encourage the development of farm labor housing. | |||||
| 7:7:15.1.14.2.4.12.1.20 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.570 Construction financing. | RHS | The requirements established in § 3560.71 apply to all applications involving off-farm labor housing loans and grants. In addition, the following requirements apply. (a) Equity contributions being made by a borrower or grantee must be contributed and disbursed prior to any disbursement of interim loan funds and any loan or grant funds from the Agency. (b) If the Agency is providing both loan and grant funds, loan funds must be fully released and expended prior to the release of grant funds by the Agency. (c) If construction is financed with a Labor Housing grant, it is subject to the provisions of the Davis-Bacon Act (published in the Department of Labor regulations 29 CFR parts 1, 2, and 5). | |||||
| 7:7:15.1.14.2.4.12.1.21 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.571 Loan and grant closing. | RHS | The requirements established in § 3560.72 apply to all applications for off-farm labor housing loans and grants. In addition, the following requirements apply. (a) A nonprofit organization will have its Board of Directors adopt an Agency-approved loan and/or grant resolution, which is required as part of the loan docket before loan and/or grant approval. All other loan applicants will execute an Agency-approved loan agreement. (b) For grants, an Agency approved grant agreement, must be executed by the applicant on the date of grant closing. (c) The obligations incurred by the applicant, as a condition of accepting the grant, will be in accordance with the off-farm labor housing grant agreement. (d) Off-farm labor housing loans used to build or acquire new units made pursuant to a contract entered into on or after the effective date of this regulation, will be subject to the restrictive-use provision stated in § 3560.72(a)(2)(ii). All other off-farm labor housing loans are subject to the restrictive-use provisions contained in their loan documents and as outlined in subpart N of this regulation. Such restrictions must be included in the mortgage and deed of trust. | |||||
| 7:7:15.1.14.2.4.12.1.22 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.572 Subsequent loans. | RHS | The requirements established in § 3560.73 will apply to all applications for subsequent off-farm labor housing loans. | |||||
| 7:7:15.1.14.2.4.12.1.23 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.573 Rental assistance. | RHS | (a) Rental assistance may be provided to income eligible tenants living in off-farm labor housing in accordance with subpart F of this part. The requirements established in § 3560.252 apply to all tenants receiving rental assistance. (b) For dormitory style facilities operating on a per bed basis, rental assistance will be made available to the housing on a per unit basis, but may be pro-rated to tenants on a per bed basis. However, total rent charged for a unit must not exceed conventional rent for comparable units in the area or a similar area and per bed rents must be comparable to per bed rents in the market. | |||||
| 7:7:15.1.14.2.4.12.1.24 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.574 Operating assistance. | RHS | Operating assistance may be used in lieu of tenant-specific rental assistance in off-farm labor housing projects financed under section 514 or section 516(i) of the Housing Act of 1949 (U.S.C. 1486(i)) that serve migrant farmworkers. Owners of eligible projects may choose tenant-specific rental assistance as described in § 3560.573 or operating assistance, or a combination of both, however, any tenant or unit assisted under this section may not receive rental assistance under § 3560.572. The objective of this program is to provide assistance toward the cost of operating the project so that rents may be set at rates that are affordable to very low and low-income migrant farmworkers. (a) Project eligibility requirements. To be eligible for the operating assistance program, projects must be: (1) Off-farm labor housing projects financed under section 514 or section 516 with units that are for migrant farmworkers. Housing units for year-round farmworker households are ineligible; and (2) Eligible for the Agency's rental assistance program as defined in § 3560.573. (b) Operating assistance limits. The amount of operating assistance requested by the owner must be based on the project's actual income and expenses and must be approved by the Agency. In the case of a mixed project, the amount of operating assistance must be based on the portion of actual income and expenses that are attributable to the units that are for migrant farmworkers. In no instance may the annual amount of operating assistance exceed 90 percent of the annual operating costs that are attributable to the migrant units. (c) Owner responsibilities —(1) Requesting for operating assistance program. Owners of off-farm labor housing projects with units for migrant farmworkers may request operating assistance by submitting a request to the Agency, which must include a budget. The budget must include: (i) Estimated operating costs for the migrant units, including authorized expenditures such as reserve deposits; (ii) Proposed rental rates for t… | |||||
| 7:7:15.1.14.2.4.12.1.25 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.575 Rental structure and changes. | RHS | Off-farm labor housing is subject to the tenant contribution and rental unit rent requirements for Plan II housing established under subpart E of this part, except where seasonal housing will be occupied for less than a 3-month period. In such instances the best available and practical income verification methods may be used with prior approval of the Agency. | |||||
| 7:7:15.1.14.2.4.12.1.26 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.576 Occupancy restrictions. | RHS | [69 FR 69106, Nov. 26, 2004, as amended at 87 FR 11286, Mar. 1, 2022] | (a) Restrictions on conditions of occupancy. (1) No borrower or grantee will be permitted to require that an occupant work on any particular farm or for any particular owner or interest as a condition of occupancy of the housing. (2) Tenant selection should be in accordance with the loan agreement, subpart D of this part and § 3560.577. (3) No borrower or grantee will discriminate, or permit discrimination by any agent, lessee, or other operator in the use or occupancy of the housing or related facilities because of race, color, religion, sex, age, disability, familial status, or national origin. (b) Eligible households. To be eligible for occupancy in off-farm labor housing, households must meet the following requirements. (1) Occupational. An eligible household must include a domestic tenant or co-tenant farm laborer, a retired domestic farm laborer, or a disabled domestic farm laborer. (2) Income. The household must meet the definition of income eligible as established in § 3560.152 and the tenant or co-tenant must receive a substantial portion of income from farm labor employment. To determine if a substantial portion of income is from farm labor employment, the following measures will be used. (i) For housing rented to farm laborers and owned by public bodies, public or private nonprofit organizations, and limited partnerships when charging rent. (A) Actual dollars earned from farm labor by domestic farm laborers other than migrant farmworkers must equal at least 65 percent of the annual income limits indicated for the Standard Federal regions as published by the Agency for their particular region of the country. For migrant farmworkers living in seasonal housing the actual dollars earned from farm labor by a domestic farm laborer must equal at least 50 percent of annual income limits indicated for the Standard Federal regions, as published by the Agency. (B) An alternate measure for determining substantial portion of income when actual earnings are not available may be the duration of time a… | ||||
| 7:7:15.1.14.2.4.12.1.27 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.577 Tenant priorities for labor housing. | RHS | Tenant occupancy in off-farm labor housing is based on eligible farm labor certified through the income certification process required by § 3560.152 and is prioritized in the following order. (a) First priority is to be given to eligible active farm laborer households with first priority going to very low-income households, next priority to low-income households, and last to moderate-income households. (b) Second priority is given to retired domestic farm laborer households and disabled domestic farm laborer households who were active in the local farm labor market area at the time of retiring or becoming disabled. Occupancy priority will be given in accordance with paragraph (a) of this section. (c) Third priority is to be given to retired domestic farm laborer households and disabled domestic farm laborer households who were not active in the local farm labor market at the time of retiring or becoming disabled. Occupancy priority will be given in accordance with paragraph (a) of this section. | |||||
| 7:7:15.1.14.2.4.12.1.28 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.578 Financial management of labor housing. | RHS | The requirements established in subpart G of this part will apply to all off-farm labor housing. | |||||
| 7:7:15.1.14.2.4.12.1.29 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.579 Servicing off-farm labor housing. | RHS | The requirements established in subparts I and J of this part will apply to all off-farm labor housing. Servicing according to subparts I and J of this part shall apply throughout the term of the loan or grant, whichever is longer. | |||||
| 7:7:15.1.14.2.4.12.1.3 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.553 Loan and grant purposes. | RHS | (a) In addition to the purposes stated in § 3560.53, off-farm labor housing loan and grant funds may be used to provide facilities for seasonal or temporary residential use with appropriate furnishings and equipment. A temporary residence is a dwelling which is used for occupancy, usually for a short period of time, but is not the legal domicile for the occupant. (b) The Agency may award technical assistance grants to eligible private and public nonprofit agencies. These grant recipients will, in turn, assist other organizations to obtain loans and grants for the construction of farm labor housing. (c) Technical assistance services may not be used to reimburse a nonprofit or public body applicant for technical services provided by a nonprofit organization, with housing and/or community development experience, to assist the nonprofit applicant entity in the development and packaging of its loan/grant docket and project. In addition, technical assistance will not be funded by the Agency when an identity of interest exists between the technical assistance provider and the loan or grant applicant. | |||||
| 7:7:15.1.14.2.4.12.1.30 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | §§ 3560.580-3560.599 [Reserved] | RHS | ||||||
| 7:7:15.1.14.2.4.12.1.31 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.600 OMB control number. | RHS | The information collection requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0189. Public reporting burden for this collection of information is estimated to vary from 15 minutes to 18 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. A person is not required to respond to a collection of information unless it displays a currently valid OMB control number. | |||||
| 7:7:15.1.14.2.4.12.1.4 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.554 Use of funds restrictions. | RHS | Off-farm labor housing loan and grant funds may not be used for any purpose prohibited by § 3560.54 except § 3560.54(a)(1). Off-farm labor housing may be used to serve migrant farmworkers. | |||||
| 7:7:15.1.14.2.4.12.1.5 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.555 Eligibility requirements for off-farm labor housing loans and grants. | RHS | (a) Eligibility for loans. Applicants for off-farm labor housing loans must be: (1) A broad-based nonprofit organization, a nonprofit organization of farmworkers, a federally recognized Indian tribe, a community organization, or an agency or political subdivision of State or local government, and must meet the requirements of § 3560.55, excluding § 3560.55(a)(6). A broad-based nonprofit organization is a nonprofit organization that has a membership that reflects a variety of interests in the area where the housing will be located; or (2) A limited partnership with a non-profit general partner which meets the requirements of § 3560.55(d). (b) Eligibility for grants. To be eligible for off-farm labor housing grants, applicants must: (1) Meet the requirements in § 3560.555(a)(1); and (2) Be able to contribute at least one-tenth of the total farm labor housing development cost from its own or other resources. The applicant's contribution must be available at the time of grant closing. An off-farm labor housing loan financed by RHS may be used to meet this requirement. (c) Limitation. Limited partnerships eligible under paragraph (a)(2) of this section are not eligible for farm labor housing grants. | |||||
| 7:7:15.1.14.2.4.12.1.6 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.556 Application requirements and processing. | RHS | Off-farm loans and grants will be available under a Notice of Funding Availability (NOFA) that will be published in the Federal Register each fiscal year. | |||||
| 7:7:15.1.14.2.4.12.1.7 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.557 [Reserved] | RHS | ||||||
| 7:7:15.1.14.2.4.12.1.8 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.558 Site requirements. | RHS | The requirements established in § 3560.58 apply to all applications for off-farm labor housing loans and grants except that off-farm labor housing are not limited to rural areas. | |||||
| 7:7:15.1.14.2.4.12.1.9 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | L | Subpart L—Off-Farm Labor Housing | § 3560.559 Design and construction requirements. | RHS | (a) General. The requirements established in § 3560.60 apply to all applications for off-farm labor housing loans and grants except that seasonal off-farm labor housing that will be occupied for eight months or less per year by migrant farmworkers while they are away from their residence, may be constructed in accordance with Exhibit I of 7 CFR part 1924, subpart A. (b) Additional requirements. In addition to the requirements established in § 3560.60, it is encouraged that the design of off-farm labor housing incorporate outdoor shower, boot washing station, and/or hose bibb facilities as necessary to protect the resident and the asset from excess dirt and chemical exposure. (c) Davis-Bacon wage requirements. Construction financed with the assistance of a Section 516 grant will be subject to the provisions of the Davis-Bacon Act (40 U.S.C. 276(a)-276(a)(7)), and the implementing regulations published by the Department of Labor at 29 CFR parts 1, 3, and 5. | |||||
| 7:7:15.1.14.2.4.13.1.1 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.601 General. | RHS | This subpart contains the requirements for making loans for on-farm labor housing and for ongoing operation and management of on-farm labor housing. Unless otherwise specified in this subpart, the requirements of subparts A through K, N, O, and P of this part will apply in addition to requirements given in this subpart. | |||||
| 7:7:15.1.14.2.4.13.1.10 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.610 Security. | RHS | (a) Security instruments must meet the requirements established under § 3560.560. (b) When feasible, the on-farm labor housing will be located on a tract of land that is surveyed such that, for security purposes, it is considered separate and distinct from the farm. The security for the loan must include a lien on the tract of land where the on-farm labor housing is located and the security must have adequate value to protect the Federal government's interest. The Agency will seek a first or parity lien position on Agency-financed property in all instances, however, the Agency may accept a junior lien position if the Federal government's interests are adequately secured. (c) The Agency will determine the value of the security for the loan in accordance with 7 CFR part 1922, subpart B if the farm is used as security or in accordance with section 502 of the Housing Act of 1949, if only the on-farm labor housing and related land is used for security. (d) If necessary to provide adequate security for the loan, the Agency may require that any household furnishings purchased with loan funds also be secured. (e) Personal liability and recourse will be required of all borrowers, including the individual members, stockholders or partners of an association of farmers, family farm corporations or partnerships, respectively. | |||||
| 7:7:15.1.14.2.4.13.1.11 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.611 Technical, legal, insurance and other services. | RHS | When technical, legal, insurance, or services are required for development of on-farm labor housing, applicants must comply with the applicable requirements of § 3560.62. Regarding insurance coverage, the requirements of § 3560.62(d) apply to on-farm labor housing. | |||||
| 7:7:15.1.14.2.4.13.1.12 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.612 Loan limits. | RHS | The maximum loan amount will be 100 percent of the allowable total development costs of on-farm labor housing and related facilities subject to §§ 3560.603, 3560.604 and 3560.608. | |||||
| 7:7:15.1.14.2.4.13.1.13 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.613 [Reserved] | RHS | ||||||
| 7:7:15.1.14.2.4.13.1.14 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.614 Reserve accounts. | RHS | When on-farm labor housing operations include 12 or more units, the Agency will require such properties to comply with the reserve account requirements in § 3560.65. | |||||
| 7:7:15.1.14.2.4.13.1.15 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.615 Participation with other funding sources. | RHS | The Agency encourages the use of other funding sources in conjunction with on-farm labor housing loans. Use of such financing in conjunction with an on-farm labor housing loan is subject to the approval of the Agency and must comply with the requirements of § 3560.66. | |||||
| 7:7:15.1.14.2.4.13.1.16 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.616 Rates and terms. | RHS | (a) The interest rate for on-farm labor housing loans will be 1 percent. (b) The term of the on-farm labor housing loan will not exceed 33 years. (c) Loan amortization for on-farm labor housing may be on a monthly or an annual basis. | |||||
| 7:7:15.1.14.2.4.13.1.17 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.617 [Reserved] | RHS | ||||||
| 7:7:15.1.14.2.4.13.1.18 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.618 Supplemental requirements for on-farm labor housing. | RHS | The management plan for on-farm labor housing operated on a seasonal basis must have specific opening and closing dates. During the off-season, on-farm labor housing may be used under short-term lease provisions. | |||||
| 7:7:15.1.14.2.4.13.1.19 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.619 Supplemental requirements for manufactured housing. | RHS | On-farm labor housing loan funds used for manufactured housing must comply with § 3560.70. Manufactured housing located on-farm may consist of individual units. | |||||
| 7:7:15.1.14.2.4.13.1.2 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.602 Program objectives. | RHS | In addition to the objectives stated in § 3560.52, on-farm labor housing funds will be used to increase: (a) The supply of affordable housing for farm labor; and (b) The ability of the farmer to provide affordable, decent, safe and sanitary housing for farm workers. | |||||
| 7:7:15.1.14.2.4.13.1.20 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.620 Construction financing. | RHS | The requirements established in § 3560.71 apply to all applications involving on-farm labor housing loans. | |||||
| 7:7:15.1.14.2.4.13.1.21 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.621 Loan closing. | RHS | Applicants for on-farm labor housing loans must execute an Agency-approved loan agreement. In addition, if determined appropriate by the Agency, on-farm labor housing loans made on or after the effective date of this regulation may be subject to the restrictive-use provisions as stated in § 3560.72(a)(2)(ii). All other on-farm labor housing loans are subject to the restrictive-use provisions contained in their loan documents and as outlined in subpart N of this regulation. | |||||
| 7:7:15.1.14.2.4.13.1.22 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.622 Subsequent loans. | RHS | The requirements established in § 3560.572 apply to all applications for on-farm labor housing subsequent loans. | |||||
| 7:7:15.1.14.2.4.13.1.23 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.623 Housing management and operations. | RHS | Borrowers with on-farm labor housing loans must: (a) Develop and submit to the Agency a management plan in a format specified by the Agency. At a minimum, the management plan will detail the borrower's operational and occupancy policies, how the borrower will deal with resident complaints, and how repairs will be completed; and (b) Maintain a lease or employment contract with each tenant specifying employment with the borrower as a condition for continued occupancy. | |||||
| 7:7:15.1.14.2.4.13.1.24 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.624 Occupancy restrictions. | RHS | (a) The immediate relatives of the borrowers are ineligible occupants for on-farm labor housing. (b) Occupants must meet the definition of a domestic farm laborer, as defined in § 3560.11. (a) Occupancy of on-farm labor housing is restricted to employees of the borrower unless otherwise approved by the Agency. (d) With prior written permission of the Agency, on-farm labor housing may be occupied by ineligible tenants on a short-term basis. The permission of the Agency must also be for a limited duration. | |||||
| 7:7:15.1.14.2.4.13.1.25 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.625 Maintaining the physical asset. | RHS | On-farm labor housing must meet state and local building and occupancy codes. | |||||
| 7:7:15.1.14.2.4.13.1.26 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.626 Affirmative Fair Housing Marketing Plan. | RHS | On-farm labor housing must meet the requirements of § 3560.104. | |||||
| 7:7:15.1.14.2.4.13.1.27 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.627 Response to resident complaints. | RHS | The management plan submitted in accordance with § 3560.623 (a) will include a provision for dealing with resident complaints. | |||||
| 7:7:15.1.14.2.4.13.1.28 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.628 Establishing and modifying rental charges. | RHS | If it becomes necessary to establish or modify a shelter cost, the borrower must obtain Agency approval as specified in subpart E of this part. | |||||
| 7:7:15.1.14.2.4.13.1.29 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.629 Security deposits. | RHS | Borrowers that require security deposits to be paid by the tenants will be required to comply with the requirements of § 3560.204. | |||||
| 7:7:15.1.14.2.4.13.1.3 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.603 Loan purposes. | RHS | On-farm labor housing loans may be made only for the purposes established in § 3560.553. Grants are not available for on-farm labor housing. | |||||
| 7:7:15.1.14.2.4.13.1.30 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.630 Financial management. | RHS | Financial information must be submitted in an Agency-approved format and will show operation of the housing in a non-profit manner. | |||||
| 7:7:15.1.14.2.4.13.1.31 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.631 Agency monitoring. | RHS | A compliance review and physical inspection will be conducted by the Agency at least once every 3 years. The purpose of this review will be to inspect: (a) Tenant eligibility documentation; (b) Financial information on the operation and management of the labor housing, including relevant borrower financial materials; (c) Payment of taxes, insurance and hazard insurance; (d) Compliance with the security deposit requirements; (e) Compliance with the operating plan; (f) Compliance with the loan agreement; (g) Compliance with Agency requirements for affordable, decent, safe, and sanitary housing; and (h) Compliance with civil rights requirements. | |||||
| 7:7:15.1.14.2.4.13.1.32 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | §§ 3560.632-3560.649 [Reserved] | RHS | ||||||
| 7:7:15.1.14.2.4.13.1.33 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.650 OMB control number. | RHS | The information collection requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0189. Public reporting burden for this collection of information is estimated to vary from 15 minutes to 18 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. A person is not required to respond to a collection of information unless it displays a currently valid OMB control number. | |||||
| 7:7:15.1.14.2.4.13.1.4 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.604 Restrictions on use of funds. | RHS | On-farm labor housing loans may not be used for any purpose prohibited by § 3560.54 except § 3560.54(a)(1). On-farm labor housing may be used to serve migrant workers. In addition, on-farm labor housing loan funds may not be used to provide housing for members of the immediate family of the applicant when the applicant is an individual farm owner, family farm corporation, family farm partnership, or a member of an association of farmers. Immediate family includes mother, father, brothers, sisters, sons, and daughters of the applicant and spouse. | |||||
| 7:7:15.1.14.2.4.13.1.5 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.605 Eligibility requirements. | RHS | (a) To be eligible for an on-farm labor housing loan, the applicant must meet the requirements of § 3560.55(a) with the exception of § 3560.55(a)(1), (5), and (6) and the following requirements. (1) The applicant must be a farm owner, family farm partnership, family farm corporation, or an association of farmers engaged in agricultural or aquacultural farming operations whose farming operations demonstrate a need for on-farm labor housing and who will own the housing and operate it on a nonprofit basis. (2) The applicant must agree to use the labor housing to engage in the farming operations of the individual farm owner applicant, or in the farming operations of its members if it is a family farm corporation or partnership, or an association of farmers. (3) The applicant must, as determined by the Agency, be unable to provide the necessary housing from the applicant's own resources and be unable to obtain credit from any other source upon terms and conditions which the applicant could reasonably be expected to fulfill. If the applicant is an association of farmers or family farm corporation or partnership, the individual members, individually and jointly, must be unable to provide the necessary housing by utilizing their own resources and be unable, by pledging their personal liability, to obtain other credit that would enable them to provide housing for farm workers at rental rates they can afford to pay. The individual resources of family farm corporation or partnership members with less than a 10 percent corporate or partnership interest should not be considered when determining if the applicant can obtain credit elsewhere. (b) The Agency may make an exception to the requirement that an individual farm owner, family farm corporation, family farm partnership or an association of farmers be unable to obtain the necessary credit elsewhere when all of the following conditions exist: (1) There is a housing need in the area for domestic farmworkers who are migrants and the applicant will provide such housing; a… | |||||
| 7:7:15.1.14.2.4.13.1.6 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.606 Application requirements and processing. | RHS | (a) On-farm labor housing loan applications will be processed according to 7 CFR part 1940, subpart L. Applicants must submit an application in an Agency-approved format that adequately documents the need for the housing and the eligibility of the applicant. (b) The applicant must certify that the farm workers for which the housing is intended are or will be involved in the applicant's agricultural or aquacultural farming operations. (c) The applicant must certify that housing operations will be conducted in a non-profit manner such that income from the housing does not exceed eligible expenses associated with the housing. Eligible expenditures for the housing include, but are not limited to housing repairs and upkeep, payment of installments on the loan, taxes, insurance and reserves and other essential uses needed for success of the operations. | |||||
| 7:7:15.1.14.2.4.13.1.7 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.607 [Reserved] | RHS | ||||||
| 7:7:15.1.14.2.4.13.1.8 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.608 Site and construction requirements. | RHS | (a) General. Cost and development standards for on-farm labor housing will be consistent with the requirements, standards, and cost limits specified in subpart B of this part, if the housing is a multi-family housing type structure, or consistent with section 502 of the Housing Act of 1949, if the housing is a single family type structure. (b) Permanent units. On-farm labor housing occupied for 8 months or more of the year will be required to meet the following requirements. (1) Housing may be multi-family or single family in type and may be located on the farm away from farm service buildings, or in the nearby community. Single-family type housing is defined as an individual or a group of individual single family detached dwelling units. All sites and housing shall be planned and constructed in accordance with 7 CFR part 1924, subparts A and C. (2) Sites must be accessible from a public road, when feasible. (c) Seasonal units. On-farm labor housing occupied for less than 8 months of the year will be considered seasonal housing. Such housing must meet the following requirements. (1) Housing designed for seasonal occupancy may be either single family or multi-family. (2) Seasonal housing may be constructed in accordance with exhibit I of 7 CFR part 1924, subpart A. If constructed in accordance with exhibit I, the housing must be suitable to allow for conversion to full-year occupancy if the need for migrant farmworkers in the area declines. (d) Accessibility. On-farm labor housing that consists of buildings with less than three units, need not meet the requirement that five percent of the units be constructed as fully accessible units, as described in § 3560.60(d). This does not, however, eliminate any other accessibility requirements. | |||||
| 7:7:15.1.14.2.4.13.1.9 | 7 | Agriculture | XXXV | 3560 | PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS | M | Subpart M—On-Farm Labor Housing | § 3560.609 [Reserved] | RHS |
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title_number INTEGER,
title_name TEXT,
chapter TEXT,
subchapter TEXT,
part_number TEXT,
part_name TEXT,
subpart TEXT,
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section_heading TEXT,
agency TEXT,
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source_citation TEXT,
amendment_citations TEXT,
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CREATE INDEX idx_cfr_agency ON cfr_sections(agency);