[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: 7CFR3560.58]



[Page 488-489]

 

                          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. 3560.58  Site requirements.



    (a) Location. (1) New construction section 515 loans will be made 

only in designated places selected by the Agency in accordance with the 

requirements of Sec. 3560.57.

    (2) Agency-financed MFH must be located in residential areas as part 

of established rural communities, except as permitted in Sec. 

3560.58(b), and for farm labor housing units financed under sections 514 

and 516, which may be developed in any area where a need for farm labor 

housing exists.

    (3) Communities in which Agency-financed MFH is located must have 

adequate facilities and services to support the needs of tenants.

    (4) Housing complexes will not be located in areas where there are 

undesirable influences such as high activity railroad tracks; adjacent 

to or near industrial sites; bordering sites or structures which are not 

decent, safe, or sanitary; or bordering sites which have potential 

environmental concerns such as processing plants. Sites which are not an 

integral part of a residential community and do not have reasonable 

access, either by location or terrain, to essential community facilities 

such as water, sewerage removal, schools, shopping, employment 

opportunities, medical facilities, may not be acceptable. Consistent 

with Federal law and Departmental Regulation, the Agency must conduct an 

environmental assessment and a civil rights impact analysis before a 

site can be accepted. Sites may be determined by the Agency to be 

unacceptable if any of the adverse conditions described in this 

paragraph exist.

    (b) Structures located in central business areas. The Agency will 

consider financing construction or the purchase and substantial 

rehabilitation of an existing structure located in the central business 

area of a rural community. With prior consent from the Agency, a portion 

of such a structure may be designated for commercial use on a lease 

basis. RHS funds may not be used to finance any cost associated with the 

commercial space.

    (c) Site development costs and standards. The cost of site 

development must be less than or comparable to the cost of site 

development at other available sites in the community and the site must 

be developed in accordance with 7 CFR part 1924, subpart C and any 

applicable standards imposed by a state or local government.

    (d) Densities. Allowable site densities will be determined based on 

the following criteria:

    (1) Compatibility and consistency with the community in which the 

MFH is located;

    (2) Impact on the total development costs; and

    (3) Size sufficient to accommodate necessary site features.

    (e) Flood or mudslide-prone areas. (1) The Agency will not approve 

sites subject to 100-year floods when non-floodplain sites exist. The 

environmental review process will assess the availability of a 

reasonable site outside the 100-year floodplain.



[[Page 489]]



    (2) Sites located within the 100 year floodplain are not eligible 

for federal financial assistance unless flood insurance is available 

through the National Flood Insurance Program (NFIP). The Agency will 

complete Federal Emergency Management Agency (FEMA) Form 81-93, Standard 

Flood Hazard Determination, to document the site's location in relation 

to the floodplain and the availability of insurance under NFIP.