[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR3560.57]



[Page 487-488]

 

                          TITLE 7--AGRICULTURE

 

     CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 3560_DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS--Table of Contents

 

               Subpart B_Direct Loan and Grant Origination

 

Sec. 3560.57  Designated places for section 515 housing.



    (a) Establish a list of designated places. The Agency will establish 

a list of designated places from which loan proposals will be accepted. 

The list is updated each fiscal year and is available when the NOFA is 

published. The NOFA provides information on obtaining the list. This 

list will be developed from a list of rural places which the Agency 

identifies as having the greatest need for multifamily housing based on 

the following factors:

    (1) Qualification as a rural area as defined in Sec. 3560.11,

    (2) Lack of mortgage credit, and

    (3) Demonstrated need for MFH based on:

    (i) The incidence of poverty,

    (ii) The existence of substandard housing,

    (iii) The lack of affordable housing, and

    (iv) The following high need areas:

    (A) Places identified in the state Consolidated Plan or similar 

state plan or needs assessment report,

    (B) Indian reservations or communities located within the boundaries 

of tribal allotted or trust land, and

    (C) EZ/EC or REAP communities.

    (b) Establishing partnership designated place list. The Agency, in 

states with an active leveraging program and formal partnership 

agreement with the state agency, may establish a partnership designated 

place list consisting of places identified by the partnership as high 

need areas based on criteria consistent with the Agency's and the 

state's authorizing statutes. The partnership agreement and partnership 

designated place list must have the concurrence of the Administrator.

    (c) Administrator's discretion. The Administrator may add to the 

list of designated places any place that is determined to have a 

compelling need for MFH, for example, a place that has had a substantial 

increase in population not reflected in the most recent census data, or 

a place that has experienced a loss of affordable housing because of a 

natural disaster.

    (d) Restrictions on loans in certain designated places. (1) Initial 

loan applications will not be requested and final loan applications will 

not be closed for



[[Page 488]]



housing proposals in designated places where any of the following 

conditions exist:

    (i) The Agency has selected another MFH proposal in the designated 

place for processing.

    (ii) A previously funded Agency, the U.S. Department of Housing and 

Urban Development (HUD), low-income housing tax credit or other similar 

assisted MFH in the designated place has not been completed or has not 

reached projected occupancy levels.

    (iii) Existing assisted MFH in the designated place is experiencing 

high vacancy levels.

    (iv) A special note rent or other loan servicing tool is pending or 

in effect for other assisted housing in the designated place, or

    (v) The need in the market area is for additional rental assistance 

and not additional rental units.

    (2) Exceptions to the provisions in Sec. 3560.57(d)(1) may be made:

    (i) When a group home is proposed for persons with disabilities in 

an area where the existing MFH is insufficient or unavailable for their 

needs; or

    (ii) There is a compelling need for additional MFH, for example when 

the units that have been approved or are under development represent 

only a small portion of the total units needed in the community.