[Code of Federal Regulations]
[Title 7, Volume 12]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1930.125]

[Page 213]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE 
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF 
                         AGRICULTURE (CONTINUED)
 
PART 1930--GENERAL--Table of Contents
 
    Subpart C--Management and Supervision of Multiple Family Housing 
                     Borrowers and Grant Recipients
 
Sec. 1930.125  Changing project designation.

    Generally, RRH projects designated for families, elderly and persons 
with handicaps, including congregate housing, will be used for the 
original purpose throughout the life of the FmHA or its successor agency 
under Public Law 103-354 loan. However, if it becomes necessary to 
change the designation of a project due to housing market changes which 
inhibit the borrower's ability to maintain occupancy levels sufficient 
to sustain the project, the State Director may change the designation. 
Project design must meet the housing requirements of the target group 
when changing the designation. The State Director shall consider such 
requests on a case-by-case basis when all of the following information 
has been provided:
    (a) The complete borrower case files have been submitted together 
with the Servicing Official's specific recommendations and analysis of 
the present and long term situation.
    (b) A market needs survey which substantiates the rationale for the 
change has been provided by the borrower. (The market survey must 
clearly indicate the present long term marketability of the project is 
significantly changed from the original market, and include the 
appropriate demographic information which reflects the population trends 
in the area.)
    (c) A summary of all servicing actions taken by FmHA or its 
successor agency under Public Law 103-354 to aid the borrower in 
maintaining the present designation.
    (d) A summary of all actions taken by the borrower to effectively 
market the units to potential eligible tenants.
    (e) A summary of the impact the change will have on any existing 
tenants, rent subsidy needs, and the community as a whole.
    (f) A summary of any needed or required physical modifications and 
analysis of cost feasibility to complete the modifications.