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Community Facilities Loans and Grants

Number: 10.766
Agency: Department of Agriculture
Office: Rural Housing Service

Program Information 

Program Number/Title (010):
10.766 Community Facilities Loans and Grants
Federal Agency (030):
Rural Housing Service, Department of Agriculture
Authorization (040):
Consolidated Farm and Rural Development Act, as amended, Section 306, Public Law 92-419, 7 USC 1926, Executive Order Consolidated and Further Continuing Appropriations Act, 2013, Public Law 113-6.
Objectives (050):
To construct, enlarge, extend, or otherwise improve community facilities providing essential services to rural residents.
Types of Assistance (060):
DIRECT LOANS; GUARANTEED/INSURED LOANS; PROJECT GRANTS
Uses and Use Restrictions (070):
Community facilities include, but are not limited to, those providing or supporting overall community development such as hospitals, fire stations, child care facilities, food recovery and distribution centers; assisted-living facilities; group homes, mental health clinics, and shelters; and education facilities. Projects comprise community, social, health care, education, cultural, transportation, industrial park sites, fire and rescue services, access ways, and utility extensions. All facilities financed in whole or in part with RHS funds shall be for public use. Applicant Eligibility: City, county, and State agencies; political and quasi-political subdivisions of States and associations, including corporations, Indian tribes on Federal and State reservations and other federally recognized Indian tribes; and existing private corporations which: (1) are operated on a not-for-profit basis; (2) have or will have the legal authority necessary for constructing, operating, and maintaining the proposed facility or service and for obtaining, giving security for, and repaying the loan; and (3) are unable to finance the proposed project from its own resources or through commercial credit at reasonable rates and terms. Assistance is authorized for eligible applicants in rural areas of the States, Puerto Rico, the Virgin Islands, Guam, American Samoa, the commonwealth of the Northern Mariana Islands, the Marshall Islands, the Republic of Palaw, and the Federated States of Micronesia. Direct loans - Poverty, intermediate, and market interest rate change quarterly. Repayment term is the lesser of 40 years or life of security . Guaranteed terms negotiated with lender with maximum term for guarantee being the lesser of 40 years or life of security.
Eligibility Requirements (080)
Applicant Eligibility (081):
City, county, and State agencies; political and quasi-political subdivisions of States and associations, including corporations, Indian tribes on Federal and State reservations and other federally recognized Indian tribes; and existing private corporations which: (1) are operated on a not-for-profit basis; (2) have or will have the legal authority necessary for constructing, operating, and maintaining the proposed facility or service and for obtaining, giving security for, and repaying the loan; and (3) are unable to finance the proposed project from its own resources or through commercial credit at reasonable rates and terms. Assistance is authorized for eligible applicants in rural areas of the States, Puerto Rico, the Virgin Islands, Guam, American Samoa, the commonwealth of the Northern Mariana Islands, the Marshall Islands, the Republic of Palaw, and the Federated States of Micronesia.
Beneficiary Eligibility (082):
Loans for essential community facilities are made to eligible entities who provide essential community services to the population living within the service area of the facility or being served by the facility. Beneficiaries include farmers, ranchers, rural residents, rural businesses, and other users of such public facilities in eligible applicant areas as set out above.
Credentials/Documentation (083):
Evidence of legal capacity and financial responsibility of the applicants and the economic feasibility of the project relative to the activity for which assistance is requested. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process (090)
Preapplication Coordination (091):
The standard application forms as provided by the Federal agency and required by OMB Circular No. A-102 must be used for this program. An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires in applying for assistance if the State has selected the project for review. An environmental impact assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Application Procedures (092):
OMB Circular No. A-102 applies to this program. OMB Circular No. A-110 applies to this program. For direct loans and grants, applicants must file Standard Form SF-424 and supporting documentation at the local Rural Development Area Office. For guaranteed loans, the lender must file Form RD 3575-1 and supporting documentation.
Award Procedure (093):
After the preapplication has been reviewed by the Rural Development Area Office, it is forwarded to the Rural Development State Office for review and processing instructions. Following review by the State Office, the applicant is notified about eligibility, availability of funds, and if an application should be filed. Upon completion of application processing requirements and approval by the State Office, funds are made available to the Rural Development Area Office for delivery.
Deadlines (094):
Not Applicable.
Range of Approval/Disapproval Time (095):
From 30 to 90 days after a complete application is received.
Appeals (096):
If an application is rejected, the reasons for rejection are fully stated. The notification will include a statement for appeal or review of the adverse decision. The applicant may request an appeal or review of the decision.
Renewals (097):
Not Applicable.
Assistance Consideration (100)
Formula and Matching Requirements (101):
This program has no statutory formula.
Matching Requirements: Matching funds are not required but may be used in connection with the funds provided from the applicant or other sources. Funds are allocated to States based upon rural population, number of households below the poverty level, and rural unemployment. The statistical factor for eligibility is cities, towns or incorporated areas under 20,000 population for direct and guaranteed loans and 20,000 population for grants. The source is "Latest Decennial Census." Grants are limited to a maximum of 75 percent of project cost.
This program does not have MOE requirements.
Length and Time Phasing of Assistance (102):
A time limitation is not specified for the use of Community Facilities loan or grant funds. Funds will be awarded when all program requirements are met and the project can be completed on a timely basis. Funds may be advanced on an as needed basis by RHS to cover expenses for a 30-day period. See the following for information on how assistance is awarded/released: See Above.
Post Assistance Requirements (110)
Reports (111):
Periodic reports are made to Rural Development. Each borrower will monitor and report to RHS on actual performance during the construction of each project financed, or to be financed, in whole or in part with Community Facilities loan funds. No cash reports are required. No progress reports are required. No expenditure reports are required. No performance monitoring is required.
Audits (112):
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Periodic audits should be made as part of the recipient's system of financial management and internal control to meet terms and conditions of loans and other agreements.
Records (113):
The borrower must maintain adequate records and accounts of the operation of the facility developed.
Financial Information (120)
Obligations (122):
(Direct Loans) FY 12 $1,296,018,696; FY 13 est $1,500,000,000; and FY 14 est $1,500,000,000. (Guaranteed/Insured Loans) FY 12 $201,949,948; FY 13 est $102,337,000; and FY 14 est $0. (Project Grants) FY 12 $11,144,205; FY 13 est $14,000,000; and FY 14 est $13,000,000
Range and Average of Financial Assistance (123):
Direct Loans: $3,500 to $55,000,000. Average: $2,335,000. Guaranteed Loans: $108,000 to $27,000,000. Average: $2,220,905. Grants: $275-$50,000. Average $29,825.
Program Accomplishments (130):
Fiscal Year 2013: No Current Data Available Fiscal Year 2014: Community Facilities primarily finances health care, public safety and educational facilities. We anticipate in FY 2014 servicing 8,001,746 rural residents through the financing of these types of new and improved community facilities or 14% of the rural population. Fiscal Year 2015: No Current Data Available
Regulations, Guidelines, and Literature (140):
7 CFR 1942, subpart A, Community Facilities Loans; 7 CFR 1942, subpart C, Fire and Rescue Loans; 7 CFR 3575, subpart A, Community Facilities Guaranteed Loans; 7 CFR 3570, subpart B, Community Facilities Grants.
Information Contacts (150)
Regional or Local Office (151) :
See Regional Agency Offices. Consult your local telephone directory under U.S. Department of Agriculture for Rural Development county or Area office numbers or visit the website http://offices.sc.egov.usda.gov/locator/app for a State Office listing.
Headquarters Office (152):
Deputy Administrator, Community Programs, Department of Agriculture, Stop 0788, 1400 Independence Avenue, SW, Washington, District of Columbia 20250-0788 Phone: (202) 720-1490.
Website Address (153):
http:/www.rurdev.usda.gov.
Examples of Funded Projects (170):
Not Applicable.
Criteria for Selecting Proposals (180):
Projects are selected for funding giving due consideration to State development strategies, serving the largest number of low income rural residents, and priority recommendations. Priority for funding will be given to those projects that will enhance public safety such as fire, police, rescue, and ambulance services, and projects for health care facilities.