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UNNUMBERED LETTERS ISSUED FOR THE MONTH OF FEBRUARY 2010
Dated Subject Distribution
02/1/10 Business and Industry Guaranteed Loan Program S/D
American Recovery and Reinvestment Act of 2009
02/02/10 Coordination of Servicing Activity on Community S/D
Facilities Direct and Guaranteed Combination Loans
02/04/10 American Recovery and Reinvestment Act (ARRA) S/D & N.O.O.
Project Reporting (APR)
02/18/10 Rural Energy for America Program Fiscal Year 2009 S/D
Applicant Notifications Unfunded Applications
02/19/10 Advertising RD Employees
02/22/10 Discontinuation of the Combined Notice of S/D
Availability of Funding for the Multi-Family and
Single-Family Housing Programs
02/22/10 Credit Analysis Tools for Evaluation of Community S/D
Facilities Direct and Guaranteed Loan Applications
02/24/10 Fiscal Year 2010 Site Manager of the Year S/D
Recognition Program
02/24/10 Section 502 Direct Full Fund Utilization “All the S/D
Way to 20 K!! Campaign Kickoff
02/26/10 Non-Refundable Airfares N.O.O. & S/D
02/26/10 Community Facilities Funding for Local and S/D
Regional Food Systems Projects and Know Your
Farmer Know Your Initiative
February 1, 2010
TO: State Directors, Rural Development
ATTN: Business Programs Directors
SUBJECT: Business and Industry Guaranteed Loan Program
American Recovery and Reinvestment Act of 2009
The purpose of this Unnumbered Letter is to advise the Program Directors of the review
process for the Business and Industry (B&I) Guaranteed Loan Program loans funded
through the American Recovery and Reinvestment Act (ARRA) of 2009.
The Agency has entered into an Interagency Agreement with the Farm Credit
Administration (FCA) to conduct reviews of all B&I loans funded through ARRA. The
Oversight Coordination Staff (OCS) will coordinate the review process. Each B&I
ARRA loan will be reviewed using the attached B&I ARRA Loan Review Workpapers.
A set of loans will be selected weekly using Guaranteed Loan System Report
GLSR006A, Detail of Obligations with Job Information. We anticipate reviewing all
closed and/or obligated loans. OCS will advise the Program Directors of loans selected
for review via e-mail. The state should complete the attached tracking form and
immediately ship the complete case file overnight via Federal Express (FedEx) directly to
FCA at the address below. The state should use FedEx account number 4849-5532-8 and
check third-party payment to charge the overnight shipping expense to the National
Office ARRA administrative account.
J. Dawn Johnson, CFSA
Farm Credit Administration
3131 S. Vaughn Way, Suite 250
Aurora, CO 80014
Telephone: (877) 322-3362 Ext. 2191
FCA will notify OCS if questions arise during the individual file reviews. OCS, along
with program staff, will then convene a three-way conference, as necessary, to resolve
those questions.
As FCA completes its review of the individual loans, case files will be returned directly
to the appropriate State Office. We anticipate that FCA will review and return files
within 1 week after receipt.
We will provide feedback on the B&I ARRA loan review findings and take appropriate
actions based on trends and findings identified to resolve those matters as expeditiously
as possible.
If you have questions concerning the B&I ARRA review process, please contact Letitia
Turner-Nichols of the Oversight Coordination Staff at (202) 720-4878 or
letitia.turner@wdc.usda.gov.
(Signed by Judith A. Canales)
JUDITH A. CANALES
Administrator
Business and Cooperative Programs
Attachments
LOAN FINDINGS SUMMARY
Borrower Name
Loan Amount $
Application Date (GLS)
Approval Date (GLS)
Principal Balance (GLS) $
Loan Purpose and
Background
Loan Underwriting and
Analysis
Risk Identification
Loan Data Accuracy
Regulatory Compliance
Other Observations
Reviewer and
Date of Review
REGULATORY COMPLIANCE
The actions of the State are being evaluated. If the State conducted adequate and
appropriate follow-up for missing or inadequate lender documentation, full consideration
should be given. Each question is to be scored a 1, 2, 3, 4, 5, or 6, based on the quality of
the work completed by the State. The scores are then weighed to value the various levels
of compliance. The risk to the government of non-compliance with the regulations
should also be considered when assigning a score. Scoring criteria are as follows:
1 = Best practice with no deficiencies; exceeds expectations; 125 percent credit given.
2 = Good with no material deficiencies; meets expectations; no adjustment made.
3 = Needs improvement with material deficiencies; minimal or no increased risk
exposure; 50 percent credit given.
4 = Weak with significant or several material deficiencies; increased risk exposure; 25
percent credit given.
5 = Unsatisfactory with serious material deficiencies that significantly increase risk
exposure; no credit given.
6 = Not applicable. These questions are excluded in calculating the overall regulatory
compliance score.
1. The borrower and loan purposes were eligible.
• B&I - Sections 4279.108; 4279.113 and 4279.114
• B&I ARRA Guidance – RD AN No. 4471: “Notwithstanding the provisions in RD Instruction
4279-B, section 4279.113, and in addition to those in section 4279.114, the following loan
purposes and entities are not eligible for ARRA funded B&I loans: (1) Zoos; (2) Aquariums; (3)
Convenience stores, unless the store provides quality jobs and sells or will sell E85 fuel upon
completion of the project; (4) Pools; (5) Water parks; (6) Hotels/motels and other facilities that
have pools or water parks; (7) Golf courses; (8) Museums; and (9) Casinos or other gambling
establishments. The Agency has agreed not to use ARRA funds to finance businesses that have
any gambling revenue (other than revenue from state-run lotteries).
Score:
Comments:
2. The guarantee fee was appropriate.
• B&I - Section 4279.107
• B&I ARRA Guidance – RD AN No. 4471: “All ARRA loans will be charged a 1 percent
initial guarantee fee and no annual renewal fee.”
Score:
Comments:
3. The appropriate priority points were assigned to the application, including written justification
and signature.
• B&I – RD Instruction 4279-B, Section 4279.155(b)
• B&I ARRA Guidance – RD AN No. 4471 and UL November 12, 2009: Unique criteria for
awarding discretionary points. Applications required a score of at least 55 points to obtain a 90
percent guarantee. An ARRA Priority Scoresheet was provided. “States are to score
applications consistent with criteria specified in RD Instr. 4279-B, section 4279.155, with the
following exception: As stated in the NOFA, State Directors and the Administrator will each
award 10 discretionary priority points to projects when, and only when, the borrower provides
quality jobs (as defined) and meets at least one of the other four demographic criteria
(outmigration, high unemployment, under-served groups/under-represented areas, and
persistent poverty county).”
Score:
Comments:
4. The percent of guarantee limits were adhered to.
• B&I – RD Instruction 4279-B, Section 4279.119(b)
• B&I ARRA Guidance – RD AN No. 4471 and UL November 12, 2009: “The maximum
percentage of guarantee will be determined in accordance with RD Instr. 4279-B, section
4279.119(b), except that loans must score at least 55 points to qualify for a 90 percent
guarantee.”
Score:
Comments:
5. The Davis-Bacon Act and Buy American provisions were adhered to, as applicable.
• B&I ARRA Guidance – RD Instruction 1940-C; RD AN No. 4471 and RD AN No. 4449
• “All loans that include more than $2,000 for construction, alteration and/or repair (including
painting and decorating) must comply with Davis-Bacon and related Acts.”
• “Buy American provisions in the statute apply only when ARRA funds are used to finance
public buildings and public works.” “A policy decision was made that all vehicles purchased
with ARRA funds, whether by private businesses or public bodies, must be manufactured in
the United States”
Score:
Comments:
6. The lender completed a credit analysis of the proposal, including ratio analyses, industry
comparisons, and clear explanations of any unusual financial entries.
3 years of historical income statements and balance sheets (existing businesses)
2 years projected income statements and balance sheets
pro forma balance sheet at startup
• B&I - Section 4279.161(b)(8)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
7. The business plan and/or independently-prepared feasibility study was completed properly, as
appropriate.
• B&I - Section 4279.150 and 161(b)(12)(13)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
8. The lender adequately assessed the borrower’s management expertise, and did the background of
the principles indicate prior successful experience in the field?
• B&I - Section 4279.131(f)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
9. The borrower met the minimum tangible balance sheet equity or cash equity injection at loan
closing - 10% for existing businesses and 20% for new businesses.
• B&I - Section 4279.131(d)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
10. The lender obtained and adequately analyzed credit reports on the borrowing entity and
principals.
• B&I - Section 4279.161(b)(4) and (9)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
11. The lender obtained adequate appraisals of collateral and evaluated and appropriately discounted
all collateral. Real estate appraisals were USPAP and FIRREA compliant, completed by a qualified
State-certified appraiser, and reviewed by the State Reviewer Appraiser.
• B&I - Sections 4279.144; 4279.173(e)(4); 4279.131(b)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
12. The State conducted (and published, when appropriate) the appropriate level of environmental
assessment and ensured environmental risks were properly identified and addressed (and appropriate
mitigation measures were included in the Conditional Commitment).
• B&I - Sections 4279.161(b)(3) and (11)(xiii); 4279.165(b); 4279.59
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
13. The lender executed a Loan Agreement with the borrower, including the 13 conditions stipulated
in the regulations.
• B&I - Section 4279.161(b)(11)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
14. The Project Summary (Form 4279-1, Part C) was completed and signed properly. [Agency will
evaluate the application and make a determination whether the borrower is eligible, the proposed loan
is for an eligible purpose, there is reasonable assurance of repayment ability, there is sufficient
collateral and equity, and the proposed loan complies with all applicable statutes and regulations. The
summary should comment on the lender’s analysis, not just repeat it. Lender’s internal credit
analysis, Application Parts A&B, and Project Summary should all agree.]
• B&I - Section 4279.165(a)(3)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
15. Loan Approval Process.
State Loan Committee was conducted and documented. [If State failed to hold or adequately
document loan committee, score a 3.]
• B&I - Section 4279.165(c)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Post review material was submitted to National Office timely. [If State failed to submit material,
score a 3. If both loan committee and post review were deficient, score a 4.]
• B&I - Section 4279.173(e)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Loans exceeding the State delegated approval authority require prior National Office concurrence. [If
State exceeded its delegated authority, score a 5.]
• B&I - RD Instruction 1901-A, Exhibit A
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
16. The loan was approved within 60 days of application - using approval and application dates
from GLS - which should reflect date full application was received.
• B&I - Section 4279.166
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
17. The Conditional Commitment included all appropriate conditions under which the guarantee
would be issued, to meet regulatory requirements and minimize risk. It agreed with Project Summary
and lender analysis; collateral and lien position, rates and terms, personal guarantees, etc.
• B&I - Section 4279.173(a)
• B&I ARRA Guidance – RD AN No. 4471: “Specific language is to be included relative to
ineligible loan purposes/entities and the transparency and accountability of funds in accordance
with OMB Circular A-102. Also, specific language is to be included as applicable regarding
wage requirements (Davis-Bacon Act) for loans that include more than $2,000 for construction,
alteration and/or repair (including painting and decorating); Buy American provisions when
ARRA funds are used to finance public buildings and public works, including the purchase of
vehicles; and loans made to states, local governments, and non-profit organizations which
would be recipients covered by OMB Circular A-133.”
Personal/corporate guarantees required of all 20% owners.
• B&I - Section 4279.149
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Same collateral for entire loan - guaranteed and unguaranteed portions.
• B&I - Section 4279.131(e); 4279.181(k)
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Insurance
• B&I - Section 4279.143; at least hazard insurance (lesser of depreciated replacement cost or loan amount) and
workers comp per state law; and when appropriate, life when needed for management succession, flood, liability,
malpractice, business interruption, etc.
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Annual borrower and guarantor financial statements
• B&I - Section 4279.137
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Guarantee fee language
• B&I – Sections 4279.107(b); 4287.107(a)
• B&I ARRA Guidance – RD AN No. 4471: “All ARRA loans will be charged a 1 percent initial
guarantee fee and no annual renewal fee for the life of the loan.”
Score:
Comments:
18. The lender met all conditions of conditional commitment and satisfied all requirements
precedent to issuance of the Loan Note Guarantee, including equity (determined from a current
balance sheet) and providing a comprehensive lender certification and settlement statement that
appropriately accounted for all loan proceeds.
• B&I - Section 4279.181
• B&I ARRA Guidance – RD AN No. 4471: “For the most part, ARRA funded loans will be
processed and serviced the same as regular B&I loans using existing program regulations.
Underwriting standards have not been relaxed for ARRA funded loans.”
Score:
Comments:
B&I Guaranteed ARRA Loan Review Tracking Form
Submit this completed form to: Dawn Johnson, FCA, at johnsond@fca.gov, Jenni Aske,
FCA, at askej@fca.gov, and Letitia Turner-Nichols, OCS, at
letitia.turner@wdc.usda.gov. Also, include a completed copy with your package
transmission.
State Name
State Contact Name and Number
State Address
Box #1
Loan # of
Borrower Name
Amount Files
1. Sample Borrower $1,500,000 2
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Fed Ex Tracking Number(s): Date Shipped: Date Received:
_______________________ _____________ ________________
February 2, 2010
TO: State Directors, Rural Development
ATTN: Community Programs Directors
FROM: Tammye Treviño (Signed by Tammye Trevino)
Administrator
Rural Housing Service
SUBJECT: Coordination of Servicing Activity on Community Facilities
Direct and Guaranteed Combination Loans
Community Programs has combined financing on excellent projects throughout the
country utilizing the Community Facilities (CF) guaranteed and direct loan programs.
Our CF borrowers and lenders will be facing challenges during our country’s current
economic climate. Community Programs field staff shall be prepared to work with our
guaranteed lenders efficiently and effectively in servicing combination loans.
Community Programs places the services provided by CF projects to the community of
paramount importance. While we continue to hold to this philosophy, we must be
sensitive to the fact, that on combination loans, our lenders may not have the ability to
enter into long term workout arrangements in problem loan situations. Our guaranteed
lender is subject to strict lending regulations and operational requirements that may not
allow that flexibility.
The policy established by the National Office on direct loans, pursuant to RD Instruction
1951.225, is to allow the borrower 120 days to voluntarily liquidate the loan by sale or
transfer, prior to the Agency foreclosing on the property. The lender, however, may not
be able to offer 120 days prior to foreclosing due to their operational requirements.
Therefore, in problem loan situations on combination loans, the lender and the Agency
shall concur with the manner in which the direct and guaranteed loan is serviced and in
any workout arrangements.
EXPIRATION DATE: FILING INSTRUCTION:
January 31, 2011 Community/Business Programs
It is crucial on combination loans that the borrower’s problem loan situation is addressed
early by the Agency, the borrower and the lender. Current real and personal property
appraisals shall be obtained promptly and timeframes for notifying the borrower, and to
insure compliance with State foreclosure requirements. A well thought out approach
between the borrower, CF staff and the lender will result in effective workout agreements
and liquidation plans.
Should you have any questions please contact Kendra Doedderlein at (202)720-1503.
February 4, 2010
TO: State Directors
National Office Officials
Rural Development
ATTENTION: Community Facilities, Water & Environmental,
Business & Industry, Rural Business Enterprise Grant, and
Broadband Initiative Program Directors
FROM: Cheryl Cook (Signed by Cheryl L. Cook)
Deputy Under Secretary
SUBJECT: American Recovery and Reinvestment Act (ARRA)
Project Reporting (APR)
Thank you for completing the RD 4-Phase Tracking information a few weeks back.
We’ve entered the data into a central location called “ARRA Project Reporting” (APR)
that can be found at https://apr.sc.egov.usda.gov. This site provides the capability for the
Field Offices to enter supplemental information for ARRA Projects. All is needed is an
EAuth account, Level 2, to access the APR.
There is great interest by the Recovery Implementation Office to track the progress of all
ARRA-funded projects government-wide. Since the APR is a living report, and to
provide the Recovery Implementation Office with the most up-to-date information,
please insure the content of the APR relative to your state is updated on a regular monthly
basis. The Broadband Initiative Program will be added to the APR at a later date and the
content for this program will subsequently be completed and updated by the National
Office.
The APR is updated daily from the same file used for ARRA obligation reporting. A
user accesses the APR for a particular program from the drop-down menu (Community
Facilities (CF), Business & Industry (B&I), etc.). The user updates data within the APR
application then submits these updates. This data is immediately stored in the database.
Users will not need to add a new record, just update the additional information requested
in the APR.
To view a report from the APR, click on the reports option on the left side of the screen.
You will be provided a dropdown to refresh data as well as program level reports. If you
view a report and make additional updates in the APR, you must refresh the data to view
your changes.
EXPIRATION DATE: FILING INSTRUCTIONS
February 28, 2011 Housing Programs,
Community/Business Programs, and
Administrative/Other Programs
Page 2
An example of the specific type of information requested in the APR follows:
1. Name of Recipient: Select from drop down
2. Announcement Date: Select date from drop down
3. Project Synopsis: Input brief description of project
(This is a free form field with a character limit of
1,000.)
4. Bucket List: Select a category from drop down
5. Bid Approval Date: Select date from drop down
6. AS OF Date: Select date from drop down (Please remember to
update the AS OF Date every time you modify the
screen.)
Other information such as congressional district, amount obligated, date obligated, and
disbursed amount to date (if applicable) is linked to the recipient file and will
automatically be prefilled in the APR. Project updates for the CF program include an
option for tracking construction phases for brick-and-mortar-type projects and an option
for those projects that involve only or primarily equipment purchases, for example, fire
trucks, police cars, ambulances, etc. Please complete only one of the two options.
Please review and update your program data by March 10, 2010, and continue thereafter
on a regular basis. As always, thank you for your continued support to this effort. You
may contact Jacki Ponti, Assistant Administrator Water Programs and RD ARRA
Coordinator, jacki.ponti@wdc.usda.gov or Cheryl Gamboney, Special Assistant,
Legislative & Public Affairs, cheryl.gamboney@wdc.usda.gov, should you have any
questions regarding the APR.
Sent by Electronic Mail on February 4, 2010 at 3:45 p.m. by LAPAS
February 18, 2010
TO: Rural Development, State Directors
ATTENTION: Business Programs Directors
SUBJECT: Rural Energy for America Program
Fiscal Year 2009 Applicant Notifications
Unfunded Applications
The purpose of this unnumbered letter is to provide guidance concerning the continued processing of
unfunded Fiscal Year (FY) 2009 applications involving the Renewable Energy Systems and Energy
Efficiency Improvements Program. The FY 2010 Renewable Energy Systems and Energy Efficiency
Improvements Notice will be published later this fiscal year and will provide the procedure for the
continued processing of FY 2009 unfunded applications in FY 2010. This unnumbered letter applies to the
Renewable Energy Systems and Energy Efficiency Improvements Grant and Loan portion of the Rural
Energy for America Program, but does not apply to energy audit and renewable energy development
assistance or feasibility study grants.
Due to the high demand for the Renewable Energy Systems and Energy Efficiency Improvements Program
in FY 2009, the Agency has numerous eligible applications that remain unfunded. Eligible, but unfunded,
applicants for the program must be notified that their application was not selected for funding in FY 2009.
The FY 2010 Notice will include provisions for FY 2009 applicants to be reconsidered in FY 2010. The
attached letter will be used as a guide notifying FY 2009 applicants of their application scores, guidance for
2010, and appeal rights.
Please note that the Rural Energy for America Program will utilize an open application process. If you
have any questions or need further clarification, please contact the Energy Division, at (202) 720-1400.
(Signed by Judith A. Canales)
JUDITH A. CANALES
Administrator
Business and Cooperative Programs
Attachment
EXPIRATION DATE: FILING INSTRUCTIONS:
December 31, 2010 Community/Business Programs
ADVERSE DECISION LETTER
XXX
XXX
XXX
XXX
Re:
Dear XXX
Thank you for your Renewable Energy System or Energy Efficiency Improvement application under the
Rural Energy for America Program. We were unable to fund your request during the 2009 Fiscal Year
(FY) due to the high demand for program assistance. We received requests for assistance in excess of the
funds available. Based upon our review of your application and a priority score of variable points, of
which variable points were assigned for technical merit, we have determined that your project could not be
considered for funding in 2009.
Scoring of all eligible and complete proposals was based on the evaluation criteria published in RD
Instruction 4280.112(e), and published in the Federal Register on May 26, 2009. A National Office
unnumbered letter published May 29, 2009, established funding priority for the type of applications for FY
2009.
The application period is now open for FY 2010. The FY 2010 Notice for the Renewable Energy System
or Energy Efficiency Improvement grant and loan program will provide FY 2009 eligible but unfunded
applicants the opportunity to be reconsidered in FY 2010.
Applicants and borrowers generally have a right to appeal adverse decisions issued by the Agency.
However, decisions of general applicability (program funding) are not appealable, but are reviewable.
Adverse Decisions involving priority scores are appealable.
If you would like to discuss the eligibility requirements, or other aspects of the application in greater detail,
please contact _________ (XXX) XXX-XXXX.
Thank you for your interest in this program, and we hope there will be opportunities in the future for you to
participate in Rural Development programs.
Sincerely,
XXX
Program Director
ATTACHMENT TO LETTER NOTIFYING CUSTOMERS OF AN ADVERSE DECISION THAT IS
APPEALABLE
________________________________________________________________________
The decision described in the attached letter did not grant you the assistance you requested or will terminate or
reduce the assistance you are currently receiving. If you believe this decision or the facts used in this case are in
error, you may pursue any or all of the following three options.
Option 1 - Informal Review
If you have questions concerning this decision or the facts used making it and desire further explanation, you may
write this office to request an informal review. There is no cost for an informal review. This written request must
be received no later than 15 calendar days from the date of the attached letter. You must present any new
information, evidence, and possible alternatives along with your request. You may also have a representative or
legal counsel participate in the process, at your cost. The informal review may be conducted by telephone or in
person, at the discretion of the Agency. Please include a daytime phone number in your request to arrange for the
review. You may skip this step in the informal process and select one of the following two options. If you do, you
will automatically waive your right to an informal review.
Option 2 - Mediation or Alternative Dispute Resolution (ADR)
You have the right to request mediation or other forms of alternative dispute resolution (ADR) for the issues that are
available for mediation. You will have to pay for at least 50 percent of the cost of mediation or ADR. Rural
Development will pay for the other 50 percent of the cost, provided the Agency has sufficient resources from its
appropriated funds. If the Agency does not have sufficient resources, you will be advised how much, if any, the
Agency can contribute to the cost of mediation or ADR. If you need the information to assist you in deciding
whether to seek mediation or ADR, you may contact the Rural Development State Director listed below.
If you elect to seek mediation or ADR, your written request for this service must be sent to the Rural Development
State Director listed below and must be postmarked no later than 30 days from the date of the attached letter. The
Rural Development State Director will advise you of the estimated cost of mediation or ADR, the extent to which
the Agency can contribute to the cost, and the process and procedures for this service. In States with a USDA-
sponsored mediation program, you will generally be referred to such service. In States without a USDA-sponsored
mediation program, you will be provided with the name or names of mediators. You will be advised directly by the
mediation or ADR source if they can mediate your case. Once you request mediation or ADR, it stops the running of
the 30-day period in which you may request an appeal (described in Option 3). If mediation or ADR does not result
in resolution of these issues, you have the right to continue with a request for an appeal hearing as set forth in Option
3.
When mediation or ADR is concluded, you will be notified of the result and the number of days remaining to
request an appeal, if applicable. If you request mediation or ADR prior to filing for an appeal, the number of days
you will have to request an appeal will be 30 days from the adverse decision minus the number of days you took to
request mediation. Mediation or ADR does not take the place of, or limit your rights to, an appeal to the National
Appeals Division (NAD); however, an NAD appeal hearing would take place after mediation or ADR. You may
skip mediation or ADR and request an appeal hearing. However, in doing so, you will automatically waive your
rights to an informal meeting, mediation, or ADR.
Rural Development State Director address:
State Director, Attn: XXX
USDA Rural Development
XXX
XXX
Option 3 - Request an Appeal
You may request an appeal hearing by the National Appeals Division (NAD) rather than an informal review,
mediation, or ADR. There is no cost for an appeal. Your request for an appeal must be made no later than 30 days
from the date you receive the attached letter. You must write the Assistant Director, NAD, for your region at the
following address:
National Appeals Division
Regional Office
XXX
XXX
Your request for an NAD hearing must state the reasons why you believe the decision is wrong, be personally
signed by you, and must include a copy of the attached letter. A copy of your request must also be sent to the Rural
Development State Director at:
State Director
XXX
XXX
You have the right to an appeal hearing within 45 days of the receipt of your request. You or your representative or
counsel may contact this office anytime during regular office hours in the 10 days following the receipt of your
request for a hearing to examine or copy relevant non-confidential material in your file. Photocopies will be
provided to you. Your representative or counsel should have your written authorization to represent you and review
your file.
The NAD Hearing Officer will contact you regarding a time and place for the hearing. You may also request a
teleconference hearing in lieu of the face-to-face hearing. At any time before the scheduled hearing you may also
request that the Hearing Officer make a decision without a hearing. If you do, the Hearing Officer's decision will be
based on the Rural Development file, any written statements or evidence you may provide and any additional
information the Hearing Officer thinks necessary.
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the
basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter
into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or
because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal
agency that administers compliance with this law concerning this creditor is the Federal Trade Commission. If a
person believes he or she was denied assistance in violation of this law, they should contact the Federal Trade
Commission, Washington, D.C. 20580.
XXX
RS/Unnumbered/9007 plus legal
February 19, 2010
TO: Rural Development Employees
FROM: Cheryl L. Cook /s/ Cheryl L. Cook
Deputy Under Secretary
SUBJECT: Advertising
In FY 2010, Rural Development’s appropriation included language that authorizes Rural
Development to use Salary and Expense funds for “…advertising and promotional activities that
support the Rural Development mission area.” This authority applies to regular year funding as
well as American Recovery and Reinvestment Act funding appropriated in February 2009.
While the authority is broad and offers Rural Development the opportunity to be creative, it is
important that we implement the authority in a prudent manner that ensures we are reaching the
desired targeted audiences in an efficient and cost-effective manner. To do otherwise could
jeopardize our ability to retain this authority through future appropriation bills.
To ensure that we maintain necessary oversight of these expenditures, effective today,
Instruction 2015.54(b) 5ii (c) will be amended to read:
“Prior approval of the State Director is required for any paid advertisement. (Except for
advertising as identified in § 2024.253(a) and (c).)”
Additionally, Sections (a) and (b) of the same subsection will be deemed obsolete. A Procedure
Notice will follow that amends RD Instruction 2015-B, “Public Information Functions of Rural
Development Employees,” to reflect these changes.
Any questions regarding this memorandum can be directed to Tim McNeilly, Director of
Legislative and Public Affairs at: timothy.mcneilly@wdc.usda.gov or by calling 202-720-1019.
EXPIRATION DATE: FILING INSTRUCTIONS:
February 28, 2011 Administrative/Other Programs
Sent by electronic mail on 2/19/2010 at 5:00 p.m. by LAPAS .
February 22, 2010
TO: State Directors, Rural Development
ATTN: Multi-Family and Single-Family Housing Program
Directors
FROM: Tammye Treviño, Administrator (Signed by Tammye Trevino)
Housing and Community Facilities Programs
SUBJECT: Discontinuation of the Combined Notice of Availability of Funding for the
Multi-Family and Single-Family Housing Programs.
The Housing and Community Facilities Programs (HCFP) will discontinue the annual
publication in the Federal Register of the combined Notice of Funds Availability (NOFA) for
some of its existing and continuing Multi-Family and Single-Family Housing programs for
which it receives annual appropriations. For Fiscal Year 2010 and thereafter, HCFP will provide
funding availability information to the public through its Web site, http://www.rurdev.usda.gov.
It should be noted that NOFA’s may be published for new or demonstration programs as needed.
A Notice will be published in the Federal Register to inform the public about the discontinuance.
The Notice will also cite National, State and local program area representative contact
information to address questions concerning the application process.
If you have any questions, please contact Martha Burton at (202) 720-9651;
martha.burton@wdc.usda.gov.
EXPIRATION DATE: FILING INSTRUCTIONS:
February 28, 2011 Housing Programs
February 22, 2010
TO: State Directors
Rural Development
FROM: Tammye Treviño (Signed by Tammye Trevino)
Administrator
Housing and Community Facilities Programs
SUBJECT: Credit Analysis Tool for Evaluation of
Community Facilities Direct and Guaranteed Loan Applications
This Unnumbered Letter discusses the utilization of a credit analysis tool as a new resource for
evaluating Community Facilities direct and guaranteed loan applications.
The application process for a non-profit, public body or Indian tribe, to obtain direct loan
financing through Rural Development, is initiated directly through the applicant working closely
with Rural Development staff. It is a time and resource intensive process for both our staff and
the applicant. The planning stages for a large project can extend up to two years. The
responsibility to assemble, analyze, evaluate and ultimately approve a loan application for a
Community Facilities direct loan is addressed in-depth in RD Instruction 1942-A.
The Community Facilities Guaranteed Loan Program is a lender-driven program that provides
financial assistance on eligible community-type projects, through a USDA loan guarantee against
a percentage of loss to the commercial lender. It is through the lender that Rural Development
receives an application for a loan. The lender provides an analysis of the applicant’s eligibility
and financial condition to support the application for the loan guarantee. RD Instruction 3575-A,
§ 3575.53, however, places ultimate responsibility for evaluation of the loan application and the
issuance of a conditional commitment for a USDA loan guarantee, with the Agency.
EXPIRATION DATE: FILING INSTRUCTIONS:
January 30, 2011 Community/Business
The Community Facilities Direct and Guaranteed Loan Programs are very popular and they are
being used to finance larger and more sophisticated community-type projects. The National
Office has received numerous requests for guidance and tools to aid in the analysis and
evaluation of community facilities project applications to be used by Rural Development staff.
The National Office, in response, has developed a tool to assist the staff with the analysis of the
loan application through the credit analysis tool. This format was developed to evaluate each
component of an application review in a logical sequence, taking into consideration its ease of
use by our staff and the various end-users of the report.
The Community Facilities Program Director will find that the credit analysis tool will
supplement the Project Summary, by providing a more in-depth look at the application with the
necessary information, analysis and evaluation, being concisely provided in one document. This
credit analysis tool will be especially beneficial in guiding new Loan Specialists in application
review and may also serve to streamline the evaluation process for the seasoned Loan
Specialists.
The National Office encourages the use of the credit analysis tool on all Community Facilities
direct and guaranteed loan applications, and is requiring the completion of the credit analysis
tool, or a similar in-depth analysis, on all direct and guaranteed loan applications submitted for
National Office concurrence.
Additionally, Rural Development staff should familiarize themselves with a recently published
Unnumbered Letter entitled “Best Practices for Evaluating Community Facilities Projects” dated
August 19, 2009. It focuses on specific evaluation criteria early in the lending relationship with
the applicant. The best practices discussed in the Unnumbered Letter will prove to be an
excellent tool, which should be routinely reviewed prior to an initial meeting with an applicant.
The credit analysis tool can be found under the CF Financial Analysis section of the Community
Facilities’ Sharepoint site entitled “Fillable Financial Analysis”, along with additional tools to
assist in a review.
Should you have any questions concerning the use of the credit analysis tool format, please
contact Benjamin Terry at (202) 720-0974.
February 24, 2010
TO: State Directors
Rural Development
ATTN: Multi-Family Housing Program Directors
FROM: Tammye Treviño (Signed by Tammye Trevino)
Administrator
Rural Housing and Community Facilities Programs
SUBJECT: Fiscal Year 2010 Site Manager of the Year Recognition Program
We are pleased to announce guidelines for our annual Multi-Family Housing Site Manager of the
Year program for fiscal year (FY) 2010.
Awards may be presented in each of the following three categories: (1) Site Manager of the Year
for Housing for the Elderly; (2) Site Manager of the Year for Housing for Families; and (3) Site
Manager of the Year for Farm Labor Housing. We will choose a national winner in each of the
categories this spring. The awards will be presented during the Council for Affordable and Rural
Housing’s 2010 Annual Meeting and Legislative Conference at Ritz-Carlton Pentagon City,
Arlington, Virginia on June 13-15, 2010.
You should use the following selection criteria for making your choice in each category:
• Tenant satisfaction with the manager is high.
• Property has good curb appeal on a continuous basis.
• Manager has no incidents of noncompliance and no unresolved findings.
• Manager consistently does more than what is expected.
These criteria may be added to, but do not eliminate any. We ask that you use these primary
criteria so that the program can be consistent Nationwide.
Please see the attached checklist (Attachment 2) to make sure that all items necessary for
adequate judging of the entry are included. Please attach the completed checklist to your
nomination package.
As in past years, if you want a certificate of recognition for your State winners signed by a
National Office official, please submit Attachment 5. Do not include the certificate request in
your nomination package, as it may be overlooked. This form should be sent by facsimile to
(202) 720-0302.
EXPIRATION DATE: FILING INSTRUCTIONS:
February 28, 2011 Housing Programs
2
In those cases where you are requesting a signed certificate only, and are not entering your site
manager in the national competition, please reconsider. It is well worth the time and effort of
preparing a nomination package if your site manager is selected as the best in the country and is
eligible to attend the awards ceremony in the Nation’s capital. If you are submitting the name of
someone to be considered for National Site Manager, please submit a complete package. This
should include all the information you used in determining the selection at the State level, and
should contain all of the items provided in Attachment 2, along with the completed checklist.
Good photographs and letters of commendation from public officials and tenants are always
beneficial. The selection panel at the National Office level has only the material you submit
upon which to base their determination of the winners. Use any materials at your disposal to
showcase your nominee at his or her best in each category. If your candidate has done an
outstanding job in an area not listed in this unnumbered letter, please do not hesitate to add that
information to your nomination package.
Please be sure to address the criterion regarding compliance with Rural Development
regulations.
We request that you submit your package in a three-ring binder so that no information is
misplaced or overlooked. Please clearly mark your State and the category (family, elderly, or
labor housing) on the nomination package. Your packages should be sent by Federal Express or
similar carrier in order to be received in good condition and in a timely fashion. Address
packages to: USDA Rural Housing Service, Multi-Family Housing Portfolio Management
Division, Room 1263, 1400 Independence Avenue SW, Washington, DC 20250.
The deadline for receipt of nomination packages for National Site Manager of the Year is
May 14, 2010.
It is our hope that you will continue to make this valuable program a success. If you have any
questions, please call the Multi-Family Housing Portfolio Management Division at (202)
720-1603.
Attachments
1. Site Manager of the Year Recognition Program Guidelines
2. Best Section 515 or 514 Site Manager Nomination Form/Checklist with evaluation criteria
3. Sample Cover Letter Announcing Awards Program to People Who Might be Interested in
Making Nominations
4. Example of Letter to Senator
5. 2010 Site Manager of the Year Award Winners National Office Certificate Request Form
Attachment 1
Page 1
SITE MANAGER OF THE YEAR RECOGNITION PROGRAM GUIDELINES
Following are guidelines and suggestions for implementing or continuing a Manager of the Year
program in your State.
1. Determine who is eligible to receive the award. The idea behind this recognition
program is to reward site managers who have close interaction with tenants and who deal with
properties hands-on and on a daily basis. In some States, these managers live on the property
they manage, while in others they live off-site and manage more than one property. Each State
should decide whether it makes sense to limit the nominations to resident managers or to extend
it to traveling site managers. Remember, however, that the recognition should be for an
individual site manager and not owners or management companies.
2. Solicit nominations from tenants and Section 515 and 514 owners and management
companies, as well as others you consider knowledgeable. The nomination process should be
open so that you get the maximum number of nominations. Rural Development employees with
a good knowledge of the nominee may make nominations, so long as the employee is not on the
judging panel.
3. Publicize the program so as to maximize the number of nominations you get.
Consider using local media resources and your local borrower associations and housing groups
as well.
4. Make your selection based on the following criteria (you may add more, but at a
minimum use the ones below):
a. Tenant satisfaction with the manager is high.
b. Property has good curb appeal on a continuous basis.
c. Manager has no incidents of noncompliance and no unresolved findings.
d. Manager consistently does more than what is expected.
Please use these primary criteria so that the manager recognition program can be consistent
nationwide.
Attachment 2 provides the national criteria and the necessary documentation that needs to be
provided. It is important that all items are addressed so that the package will be considered
complete. Please attach this completed checklist to your nomination package.
5. Use a panel of representatives from different stakeholder groups to make your
selections. Use panels consisting of Rural Development Multi-Family Housing (MFH) staff and
management industry representatives, as well as others you think would be appropriate. Possible
panelists include tenants, staff from Housing and Urban Development, a State Housing Finance
Agency, a Public Housing Authority, or local civic leaders. The idea is to give an award that is
recognized by a wide variety of industry and civic professionals.
Attachment 1
Page 2
6. If you have a large portfolio, you might consider using a two-phased process to make
your selection. District or Area Offices could convene a panel to choose the best manager in
their region and then forward the nomination package to the State Office, which could convene a
panel to make the final selection.
7. Choose the best manager and submit your nomination to the National Office by
May 14, 2010.
8. Notify the National Office of the name (or names) of the Site Managers of the Year in
your State if you wish to have a certificate signed by the Administrator for your State winner(s).
Send this information, as well as the name and address of the facility or facilities the manager
oversees, to Multi-Family Housing Portfolio Management Division at fax number (202)
720-0302. If you are nominating your winner for the National Site Manager competition, please
send (by Federal Express or similar carrier) the complete package upon which you based your
determination. Please do not include your request for a certificate in your nomination package.
Send it by facsimile only. Requests included in a package may be overlooked, as the nomination
packages are not reviewed until immediately before judging takes place.
9. Consider presenting this award jointly with other management groups or at a State
management conference. That way, you can highlight the achievements of the manager to a
broad group of his or her peers. You may also consider presenting the award at a housing
complex the manager oversees.
10. Take advantage of this opportunity for favorable press coverage. The manager
recognition program is a chance to highlight one of the most positive aspects of our MFH
program. Not only will press coverage help remind communities of how our programs help
them, it will also focus their attention on one of their truly outstanding members whom they may
not know. Encourage press coverage by inviting the press to your awards ceremony and by
distributing press releases.
11. Let your Congressional delegation know about the winners in their districts. This
gives members of Congress a chance to send a letter of recognition to the managers. It also
highlights the success of our MFH program in serving communities. Attached is a sample letter
you may use to send to your congressional delegation for the Site Manager of the Year program.
Attachment 2
BEST SECTION 515 OR 514 SITE MANAGER
NOMINATION FORM/CHECKLIST
Please address the following criteria in the space provided. Remember, keep your answers short
and to the point; however, the more letters, pictures, and documentation you can provide, the
better. The nomination package should include the nomination letter summarizing nominee’s
qualifications and address all the following items and include attachments. This completed
checklist should be attached to your nomination package. Failure to address each item will cause
the package to be considered as incomplete.
___ I. Tenant Satisfaction. Overall, are tenants happy with the efforts this manager makes on
their behalf and on the behalf of the housing complex? How do you know? Include
photographs. Attach the following:
• ___ Letters commenting on the site manager’s accomplishments from Congressmen or
other officials or tenants.
___ II. Curb Appeal. Is the property attractively maintained and landscaped? If applicable,
you may wish to discuss particular actions the manager has taken to increase the appeal of the
property. Attach the following:
• ___ Pictures of grounds, buildings and signage indicating curb appeal.
___ III. Compliance with Rural Development’s regulations. Attach the following
documents:
• ___ Letter or written statement from servicing office verifying there are no incidents of
noncompliance and no unresolved findings.
• ___ Copy of last supervisory visit.
• ___ Copy of last compliance review.
• ___ Copy of most recent physical inspection report.
Attachment 2
Page 2
___ IV. Actions above and beyond what is expected. Please describe any actions this
manager takes on a consistent basis which make him or her truly exceptional and outstanding.
Good pictures also help in this category. Document activities such as:
• ___ Pictures of tenants engaging in activities sponsored by site manager.
• ___ Copies of publications (such as newsletters) initiated and maintained for the
residents by the site manager.
• ___ Newspaper articles depicting site manager’s care of tenants and property.
• ___ Articles or letters showing site manager involvement in the community.
• ___ Manager helps residents obtain additional services.
Attachment 3
SAMPLE COVER LETTER ANNOUNCING AWARDS PROGRAM TO PEOPLE WHO
MIGHT BE INTERESTED IN MAKING NOMINATIONS
NOMINATOR'S NAME
NOMINATOR'S ADDRESS
Dear [NOMINATOR]:
I know you will agree with me that USDA Rural Development’s Section 515 and Section 514
rental housing site managers guarantee the success of these complexes. They make sure that
day-to-day operations go smoothly, and often they invest a great deal of their own free time in
providing tenants with a safe and cohesive community. Although these managers would do their
jobs regardless of whether they received recognition, I believe we as management industry
professionals should do whatever we can to let them know we appreciate their efforts. They
deserve recognition for their outstanding work, and for this reason, we are sponsoring a program
to recognize the best Rural Development site manager in [STATE NAME]. I hope that you
might be able to join me in this important program by nominating someone you consider to be an
outstanding site manager.
Please use the attached form to nominate the manager. You will note that the form asks you to
comment on three factors:
• The level of tenant satisfaction with the manager.
• The curb appeal of the manager's property.
• Compliance with Rural Development’s regulations
• The manager consistently doing more than what the job requires.
Make your presentation as complete as possible. Letters from tenants, members of the
community, housing groups, and others highlighting the good qualities of your nominee are
encouraged. Also include any local media coverage which has occurred. Please enclose as
many pictures as you like of the manager's property that depict its curb appeal. Pictures of tenant
activities sponsored, encouraged, or provided by the manager are beneficial. Submit the
nomination package to [ADDRESS] no later than [YOUR DEADLINE].
After we receive the nominations, we will use the following process to choose the best site
manager in [STATE NAME].
[DESCRIBE YOUR EVALUATION AND SELECTION PROCESS HERE.]
We will present a plaque of recognition to the winner at a ceremony in [DATE, LOCATION,
SPECIFY IF CEREMONY WILL BE HELD JOINTLY WITH SOMEONE ELSE OR AT AN
ALREADY SCHEDULED CONFERENCE]. We also hope to engage the press in recognizing
the exceptional efforts of the winning manager as well as all of our other great managers.
I hope that you will make the necessary effort to complete the enclosed nomination form. I can
assure you that it will be worth your time.
Sincerely,
[STATE DIRECTOR]
Attachment 4
EXAMPLE OF LETTER TO SENATOR
[PLEASE CONSIDER A SIMILAR LETTER TO YOUR
CONGRESSIONAL DELEGATION]
Honorable Name of Senator
United States Senate
110 Hart Senate Office Building
Washington, DC 20510-0103
Dear Senator XXXX:
I am writing to inform you that xxxxxx has been chosen as the (State Office) 2010 Site Manager of the Year for the
USDA Rural Development Multi-Family Housing program. Xxxxxxxxxxx operates the xxxxxxx Apartments in
xxxxxxxx.
Rural Development administers a national loan portfolio of over 16,000 rural rental housing complexes. In
partnership with our private sector and nonprofit borrowers, we house very low- and low-income rural families,
elderly people, and farmworkers. The site managers of the housing complexes we finance are employees of private
companies, not the U.S. Government.
The site managers guarantee the success of our housing complexes. They make sure that day-to-day operations go
smoothly, and they often invest a great deal of their own free time in providing tenants with a safe and cohesive
community. Although these managers would do their jobs whether or not they received recognition, we believe that
as lenders and program managers we should reward excellent performance.
In this spirit, we conducted a Manager of the Year competition in each State this year. State Rural Development
staffs convened panels of public and private housing management experts to choose their best site managers. They
used the following criteria: 1) tenant satisfaction;
2) property curbside appeal; 3) compliance with Rural Development’s regulations; and 4) consistent performance of
actions above and beyond the call of duty. States could add to these criteria, but they could not change or drop any
of them.
The comments we received from tenants and our State Offices are testimony to the outstanding performance of the
site managers. Following are a few typical examples:
Insert actual excerpts from your nomination packages. The following are examples.
• He makes us very proud of where we live.
• They are always there to help with anything you need, no matter how big or small.
• He shows genuine concern and really puts his heart into the job.
• They look after my parents when I'm not there. I don't know what I would do without them.
• He listens to the tenants.
• She enforces the rules fairly and makes us all feel safe.
• My friends [from outside the complex] always comment on how beautiful and well maintained our grounds and
buildings are.
• One of the greatest things about living here is the great security I feel. Once I became ill in the middle of the
night. I pulled the chain on my alarm system and the managers were in my apartment immediately.
Attachment 4
Page 2
• Living here is like living at a big home full of loving friends and family. Once I was too sick to go to the
barbecue [which the manager had organized], so the manager brought me a plate of food and sat down to tell
me who was there and what the grandkids were doing. She really made me feel included in the fun.
Ms. xxxxxxxx is a credit to herself, the apartments she manages, her employer, her community, USDA, and the
Federal Government as a whole. If you would like to recognize Ms. Xxxxxxx, you may contact her at
xxxxxxxxxxx. If you have any questions or would like more information, please contact (Name of State) State
Director (Name of State Director) at (State Office phone number).
Sincerely,
State Director
Rural Development
Attachment 5
Page 1
2010 SITE MANAGER OF THE YEAR AWARD WINNERS
NATIONAL OFFICE CERTIFICATE REQUEST FORM
Please use this form to let the National Office know who the winners were in your State, for
whom you would like a certificate prepared signed by the Administrator. Please complete a
separate Attachment for each award winner.
************************************************************************
TO: MFHPMD
PHONE #: 202-720-1603
FAX #: 202-720-0302
STATE CONTACT: ___________________________________________________
STATE NAME: ___________________________________________________
PHONE #: ___________________________________________________
FAX #: ___________________________________________________
1. Name of Award Winner_________________________________________________
2. Name(s) of Property/Properties He/She/They Manage(s)________________________
________________________________________________________________________
3. Exact Name of the Category for Which He/She/They Were Chosen Winner (as it should
appear on the certificate--for example, 2010 Pennsylvania Multi-Family Housing Site Manager
of the Year for Elderly Housing) _____________________________________________
________________________________________________________________________
4. Address to which the Certificate Should Be Sent (This should be someone at the State
Office, so that the State Director can sign the certificate. Please include State Director’s name.)
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
5. Date by Which You Need the Certificate ____________________________________
February 24, 2010
TO: State Directors
Rural Development
ATTN: Program Directors
Single Family Housing
FROM: Tammye Treviño (Signed by Tammye Trevino)
Administrator
Housing and Community Facilities
SUBJECT: Section 502 Direct Full Fund Utilization
“All the Way to 20 K!!” Campaign Kickoff
On November 27, 2009, states were provided 100% of their American Reinvestment and
Recovery Act (ARRA) formula allocations and the first & second quarter Fiscal Year (FY) 2010
allocation. As we approach the fiscal year mid-point, we are initiating the “All the Way to 20
K!!” campaign that is designed to promote all states to fully obligate their allocated ARRA and
Annual funds during this fiscal year.
Our combined annual and ARRA funding this year gives us about $2.4 billion for the Section
502 Direct programs. With these funds, we can assist nearly 20,000 families to become
successful homeowners, the highest level reached since 1994.
The “All the Way to 20 K!!” campaign’s primary goal is to obligate 100% of our available
ARRA and annual funding this fiscal year. With everyone’s help, we’re confident that we can
reach this goal!
Please be reminded that Deputy Under Secretary Cheryl Cook recognized the extraordinary
effort and time required to accomplish the mission of delivering ARRA funding and declared an
Agency-wide exigency of public business effective September 14, 2009, and expiring September
30, 2010. This will allow supervisors of program areas affected to cancel scheduled annual
leave, which is subject to forfeiture. In addition, the Under Secretary and the Agency
Administrator have emphasized full use of allocated funding. Both ARRA and Annual funding
have been allocated to states and it would not reflect well on anyone if we fail to use either one.
EXPIRATION DATE: FILING INSTRUCTIONS
September 30, 2010 Housing Programs.
It is critical that each state elevate the priority level on fully utilizing their Section 502 Direct
Loan funds as quickly as possible during this fiscal year. We will be closely monitoring the
obligated funds for each state and on a quarterly basis, we plan to identify and issue certificates
of recognition to states that are performing at or above their fund utilization goals. Areas of
consideration will be; Obligation Activity, Data Integrity,
1st Year Delinquency, Unliquidated Obligations and Close Rate (30 day performance measure).
The Agency is committed to using both ARRA and Annual funds by the end of the fiscal year.
We are approximately 40% of the way into FY 2010 and we have obligated just under 25% of
the total funds. Our obligation rates typically increase substantially as we move into spring.
We intend to work closely with states over the coming weeks and months. We will regularly
communicate with Housing Program Directors to discuss the circumstances involving the Direct
loan production. States should begin putting together an action plan to help prepare them on
how to fully utilize funding for 2010. The National Office is currently working on its plan and
will be posting it on SharePoint once it has been finalized. We appreciate the efforts within each
of your states to fully utilize the remaining ARRA funding.
Very Low-Income Loans
It is critical that we remain focused on providing at least 40% of the appropriated funds for Very
Low-income loans. Both ARRA and Annual obligation rates are currently below the 40% mark
(32% of ARRA and 34% of Annual funds have been obligated to Very Low-income borrowers).
The Agency remains committed to meeting its mandate to serve Very Low-income customers.
We are optimistic that we will achieve our goal. At current obligation rates, we may reach a
point where Low funding is exhausted, yet a significant amount of Very Low funds remains.
Full funding use is critical; however, the quality of the data for both ARRA and Annual loans is
just as important! This will be discussed under separate cover.
February 26, 2010
SUBJECT: Non-Refundable Airfares
TO: National Office Officials
State Directors
ATTN: Administrative Program Directors
FROM: for Sherie Hinton Henry /s/ Van B. Jorstad
Administrator
Operations and Management
The purpose of this memorandum is to provide a reminder to all employees that the
purchase of non-refundable airfares for official Government travel is allowed. The use of
non-refundable airfares may be cost effective measure for Rural Development
employees with firm travel plans, or if an employee is experiencing difficulty in
obtaining availability of contract airfare at a nearby airport.
Non-refundable airfares can significantly reduce travel costs, but they include a risk if the
ticket is not used. If an employee purchases a non-refundable airfare and changes his or
her travel plans, the airfare will not transfer, refund, or provide a credit on the unused
ticket. Supervisors are responsible for ensuring that non-refundable airfares are utilized.
Employees are required to sign the attached acknowledgement and scan it into the
GovTrip travel system as part of their travel authorization. The acknowledgement must
be completed before purchasing of a non-refundable airfare. The document will be
maintained as part of the official travel record.
EXPIRATION DATE: FILING INSTRUCTIONS:
March 31, 2011 Administrative/Other Programs
If a non-refundable airfare is not used, the employee is responsible for immediately
notifying their supervisor and providing a clearly written explanation why. The
explanation must be submitted through the supervisor to the National Office Travel Unit
(TU) within five business days of the expiration date for the airfare. Please send
explanations for unused non-refundable airfares to the TU’s mailbox at
ssd.travel@wdc.usda.gov. The subject line of the e-mail should be “Non-Refundable
Airfare.”
If you have any questions, you may contact Joseph Shunk, Chief, General Services
Branch at (202) 692-0032.
Attachment
Sent by electronic mail on 3/04/10 at 12:00 p.m. by the Support Services Division.
National Office Officials and State Directors should distribute to other personnel as
appropriate.
Attachment
Non-refundable Airfare Acknowledgement
Airline fees for reservation changes or cancellations made for personal reasons will be strictly borne by the traveler,
i.e., earlier departure, personal leave, etc. Fees for changes made by the agency will be reimbursed, i.e., mission
cancellation or deviation in travel plans due to changes in schedules, etc.
Checking one or more of the following reasons will meet the exceptions outlined in the General Services
Administration, “Federal Travel Regulation,” Section 301-10.107.
Check all that may apply:
□ Seating aboard a contract flight is not available in time to accomplish the purpose of the travel.
□ A contract flight is not scheduled in time to accomplish the purpose of the travel.
□ Use of a contract airfare is not available and would result in additional overnight lodging costs
being incurred and increase the total cost for the trip.
□ The contractor’s flight schedule is inconsistent with explicit policies of the agency with regard to
scheduling travel during normal working hours.
□ A non-contract carrier offers a lower airfare, the use of which will result in a lower total trip cost
to the Government.
□ Smoking is permitted on the contract flight and the non-smoking section of the aircraft for the
contract flight is not acceptable.
□ Travel is occurring as part of a group of 10 or more travelers that are together on the same day, on
the same flight, for the same mission, requiring group integrity and identified as a group.
□ A non-contract airfare is offered at a lower cost which is available to the general public, the use of
which will result in lower total trip cost to the Government.
I understand that I will be personally responsible for payment of any penalties or fees associated with cancellation or
changes due to personal reasons.
Printed Name: ________________________________
Signature: ___________________________________
Date: _______________________________________
This signed document must be scanned into the GovTrip travel system as an attachment to the Travel Authorization
when a non-refundable airfare is selected.
February 26, 2010
TO: State Directors
Rural Development
ATTN: Community Program Directors
FROM: Tammye Treviño (Signed by Tammye Trevino)
Administrator
Housing and Community Facilities Programs
SUBJECT: Community Facilities Funding for Local and Regional Food Systems
Projects and Know Your Farmer Know Your Food Initiative
PURPOSE/INTENDED OUTCOME:
This unnumbered letter is being issued to provide guidance to field staff regarding the Know
Your Farmer Know Your Food initiative and how Community Facilities (CF) funding can
support local and regional food system projects.
BACKGROUND:
The Know Your Farmer Know Your Food initiative was launched in September 2009 by the
Secretary and Deputy Secretary of Agriculture to help develop and support local and regional
food systems to support local farmers, strengthen rural communities, promote healthy eating, and
protect natural resources. A food system includes all processes involved in feeding a population:
growing and harvesting; processing and packaging; transporting; marketing; distributing;
consuming; and disposing of food and food-related items. This initiative supports access to high
quality and affordable locally grown foods. Local food has not been statutorily defined for CF;
however the 2008 Farm Bill defined local food for Business and Industry Loan Program as food
that is sold in-state or less than 400 miles from where it is produced.
EXPIRATION DATE: FILING INSTRUCTIONS:
March 31, 2011 Community/Business Programs
Information on Rural Development programs is already on the Know Your Farmer Know Your
Food website. An outreach video is being prepared by the National Office that will include
examples of Know Your Farmer Know Your Food – related projects that have received funding
from a variety of Rural Development program areas, including CF. The video will encourage
applicants to contact the Area Office for more information on our programs and assistance with
the application process.
IMPLEMENTATION RESPONSIBILITIES:
The Rural Housing Service Strategic Plan contains a goal that each state must fund at least one
project that supports the Know Your Farmer Know Your Food initiative in Fiscal Year 2010.
Projects and applicants related to this initiative must meet the same eligibility criteria as any
other CF project and applicant. The outreach video will emphasize that an applicant should
contact their Area Office early in the application process, and that they will receive support and
guidance from the staff in completing their application. It is the Program Director’s
responsibility to ensure that all staff members are familiar with the initiative and the type of
funding that is available. For example, a farmer’s market containing a predominant number of
vendors selling items other than fruits and vegetables may be eligible for funding under the Rural
Business & Cooperative Programs rather than the CF program.
States must provide a copy of their Legislative and Public Affairs Staff (LAPAS) Project
Information sheet on these projects to Beth Jones for tracking purposes. The purpose should
address the locally-grown component(s) and state that the project supports the Know Your
Farmer Know Your Food initiative.
Applicants will have access to all CF funding sources, guaranteed and direct loans, and grants,
based on applicant and project eligibility. The following examples are ways CF funding could
be used to support local and regional food systems. These examples are not all inclusive.
Food Banks
• Purchase building
• Renovations
• Construct new building
• Purchase equipment
• Purchase vehicles for food delivery
School Cafeterias
• Equipment
• Renovations
• Central Processing/Distribution Centers
Farmer’s Markets
We can finance farmer’s markets that primarily sell fruits and vegetables. We cannot finance
flea markets. Farmer’s markets that sell 25% or more in items that are not food products cannot
be financed with CF funding, but may be eligible for funding under Rural Development’s Rural
Business & Cooperative Programs.
• New construction
• Purchase building
• Renovations
• Electronic Benefits Transfer (EBT) machines - a system that allows use of government
benefits; i.e., food stamps. In 2008 the Food Stamp Program was renamed “Supplemental
Nutrition Assistance Program” and is referred to as “SNAP.” Some machines also allow
the purchaser to use debit/credit cards. There are state and federal programs that provide
funding assistance for EBT-only machines that redeem SNAP activity in excess of $100
per month. CF funding may be used for EBT/Debit/Credit machines and/or EBT-only
machines that redeem SNAP activity of less than $100 per month.
Community Gardens
• Purchase real estate
• Water source access – the necessary infrastructure to connect to the water source and/or
provide irrigation.
• Noncommercial greenhouses
• Ineligible – small tools
Community Kitchens
Community kitchens can provide classes for families to learn how to prepare healthy meals.
They can also be used to prepare meals for various community programs using fresh, locally
grown products.
• Renovations - applicant must own, or be purchasing, facility
• Equipment - must be removable if the applicant does not own the facility and equipment
must be primarily used for the community initiative
• New Construction
The outreach video will be distributed to field staff when it is completed, and it can be used to
promote this initiative at various outreach meetings and presentations to demonstrate how Rural
Development programs can be used to support local and regional food systems. Other ways you
can promote this initiative are:
• Update/Load into “Rural Development Contacts” addresses for:
Farmers Markets
Food Production Co-ops
Food-related nonprofit organizations
Food Banks/Distribution Groups (local and regional) – include faith-based and
neighborhood partnerships
State Departments of Agriculture, Education, etc., (agencies that deal with food or food
preparation)
Child and Adult Day Care Programs
Schools
County Extension Service
Town and/or County welfare offices
• Issue Press Release
If you have any questions about this initiative, please contact Beth Jones at (202) 720-1498.
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