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Farm Labor Housing Technical Assistance
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: October 31, 2002 (Volume 67, Number 211)]
[Rules and Regulations]
[Page 66308-66311]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31oc02-3]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Part 1944
RIN 0575-AC25
Farm Labor Housing Technical Assistance
AGENCY: Rural Housing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Housing Service (RHS) is amending its regulations
for the Farm Labor Housing (FLH) program. The Housing Act of 1949
authorizes the RHS to provide financial assistance to private and
public nonprofit agencies to encourage the development of domestic and
migrant farm labor housing projects. The nonprofit agencies that
receive this financial assistance, in turn, provide ``technical
assistance'' to other organizations to assist them in obtaining loans
and grants for the construction of farm labor housing. The intended
effect of this action is to amend the regulations to establish the
eligibility requirements that nonprofit agencies must meet to receive
technical assistance grants and how the financial assistance will be
made available by the RHS.
EFFECTIVE DATE: December 2, 2002.
FOR FURTHER INFORMATION CONTACT: Douglas MacDowell, Senior Loan
Specialist, Multi-Family Housing Processing Division, Rural Housing
Service, U.S. Department of Agriculture, STOP 0781, 1400 Independence
Avenue SW., Washington, DC 20250-0781, Telephone (202) 720-1604.
SUPPLEMENTARY INFORMATION:
[[Page 66309]]
Classification
This rule has been determined to be not significant for purposes of
Executive Order 12866 and therefore has not been reviewed by the Office
of Management and Budget (OMB).
Paperwork Reduction Act
The information collection requirements contained in this
regulation have been previously approved by OMB under the provisions of
44 U.S.C. chapter 35 and this regulation has been assigned OMB control
number 0575-0181, in accordance with the Paperwork Reduction Act of
1995. This rule does not impose any new information collection
requirements from those approved by OMB.
Civil Justice Reform
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. In accordance with this rule: (1) All state and local
laws and regulations that are in conflict with this rule will be
preempted; (2) no retroactive effect will be given to this rule; and
(3) administrative proceedings in accordance with 7 CFR part 11 must be
exhausted before bringing suit in court challenging action taken under
this rule.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.
L. 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, RHS
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``Federal mandates'' that
may result in expenditures to State, local, or tribal governments, in
the aggregate, or to the private sector, of $100 million or more in any
one year. When such a statement is needed for a rule, section 205 of
the UMRA generally requires RHS to identify and consider a reasonable
number of regulatory alternatives and adopt the least costly, more
cost-effective or least burdensome alternative that achieves the
objectives of the rule.
This rule contains no Federal mandates (under the regulatory
provisions of Title II of the UMRA) for State, local, and tribal
governments or the private sector. Therefore, this rule is not subject
to the requirements of section 202 and 205 of the UMRA.
Executive Order 13132, Federalism
The policies contained in this rule do not have any substantial
direct effect on states, on the relationship between the national
government and the states, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on state and local
governments. Therefore, consultation with the states is not required.
Programs Affected
The affected program is listed in the Catalog of Federal Domestic
Assistance under Number 10.405, Farm Labor Housing Loans and Grants.
Intergovernmental Consultation
For the reasons contained in the Final Rule related Notice to 7 CFR
part 3015, subpart V, this program is subject to Executive Order 12372
which requires intergovernmental consultation with State and local
officials. RHS has conducted intergovernmental consultation in the
manner delineated in RD Instruction 1940-J.
Environmental Impact Statement
This document has been reviewed in accordance with 7 CFR part 1940,
subpart G, ``Environmental Program.'' It is the determination of RHS
that this action does not constitute a major Federal action
significantly affecting the quality of the human environment and in
accordance with the National Environmental Policy Act of 1969, Pub. L.
91-190, an Environmental Impact Statement is not required.
Regulatory Flexibility Act
This rule has been reviewed with regard to the requirements of the
Regulatory Flexibility Act (5 U.S.C. 601-612). The undersigned has
determined and certified by signature of this document that this rule
will not have a significant economic impact on a substantial number of
small entities since this rulemaking action does not involve a new or
expanded program nor does it require any more action on the part of a
small business than required of a large entity.
Background
Farmworkers are among the lowest paid workers in the United States
and often lack decent, safe, sanitary, and affordable housing. RHS's
FLH program provides loans and grants for farmworker housing and
related facilities.
The FLH program is authorized by title V of the Housing Act of 1949
under section 514 (42 U.S.C. 1484) for loans and section 516 (42 U.S.C.
1486) for grants. Section 516 also authorizes the RHS to provide
financial assistance (not more than 10 percent of the section 516
funds) to encourage the development of domestic and migrant farm labor
housing projects.
RHS's FLH program provides funding for both ``on-farm'' and ``off-
farm'' housing. The housing may also be for either seasonal or year-
round occupancy. Off-farm housing, typically apartment complexes, is
open to farmworkers who work at any farming operation. On-farm housing
provides housing for the workers of only one farm and is typically
designed as single family dwellings. Occupancy of both types of housing
is restricted to United States citizens or permanent resident aliens.
Off-farm migrant housing serves farmworkers who perform
agricultural work at one or more locations away from their home base
throughout the year for periods ranging from a few weeks to several
months. Rental assistance is available to many tenants of off-farm
housing to make rents affordable. Off-farm housing is financed with
section 514 loans and section 516 grants to nonprofit organizations and
public agencies such as local housing authorities, and with section 514
loans to limited partnerships in which the general partner is a
nonprofit entity.
On-farm housing loans are made to farmers or farm entities to
provide housing for farmworker families employed by the farm. On-farm
housing is financed with section 514 loans and is not eligible for 516
grants. The tenants (farmworkers) who live in on-farm housing are not
eligible for rental assistance.
RHS also provides financial assistance to private and public
nonprofit agencies to encourage the development of domestic and migrant
farm labor housing projects. The services that are provided by these
non-profit agencies pursuant to section 516(i) are commonly referred to
as ``technical assistance.''
Prior to Fiscal Year (FY) 2000, RHS awarded technical assistance
``contracts.'' These contracts were awarded for one year periods with
four option periods that could be exercised at the discretion of the
Government. In FY 2000, RHS changed the way that FLH technical
assistance funds were awarded. During FY 2000, RHS awarded technical
assistance ``grants'' rather than ``contracts.''
On June 21, 2000, a Request for Proposals (RFP) was published in
the Federal Register requesting ``grant'' proposals from private and
public nonprofit agencies. The RFP outlined the application
requirements and the criteria that would be used to select proposals
for funding. The RFP also
[[Page 66310]]
established three FLH technical assistance grant regions (the Eastern,
Central, and Western grant regions) and contained the terms of the
grants.
On September 27, 2000, three technical assistance grants were
awarded. Two of the grants were awarded for the Western grant region
and the other was awarded for the Central grant region. No grant
proposals were received for the Eastern grant region. Each of the
grants has a three year grant period.
When the RFP was published, comments and suggestions were received
from interested parties. Some suggested that more than one FY's funding
should be made available during the three year grant period. Another
issue was that the Central grant region received less funding than the
Eastern and Western grant regions. Lastly, one commentor expressed that
it was unfair to consider an applicant's experience if such experience
was gained outside of the grant region or to give equal weight to an
applicant's experience in developing non-farmworker multifamily housing
to an applicant's experience in developing farmworker housing.
In the future, RHS intends to periodically publish RFPs that are
similar to the one that was published on June 21, 2000. When published,
RHS will have the opportunity to make changes to the way funds are
distributed, to the minimum performance requirements that must be met,
or to other terms of the grants. RHS will at that time consider the
suggestions that have been made. However, this revision to the
regulation only implements the statutory authority for awarding grants.
It does not establish the application requirements, the selection
criteria, the performance standards that must be met, or how funds will
be distributed when grants are awarded.
On June 1, 2001, the Agency published a proposed rule in the
Federal Register (66 FR 29739) to establish the eligibility
requirements that nonprofit agencies must meet to receive technical
assistance grants and to establish how the financial assistance will be
made available by RHS. By this final rule, the Agency is also adding a
definition of the term ``Technical assistance'' for clarity.
Discussion of Comments
Two commentors responded during the comment period. The Agency
wishes to thank the respondents for their comments and suggestions. The
comments we received are summarized and discussed below.
Eligibility Is Limited to Private or Public Nonprofit Agencies
One commentor suggested that ``for profit'' organizations should be
eligible to receive technical assistance grants. However, the statutory
authority for awarding technical assistance grants (section 516(i) of
the Housing Act of 1949-42 U.S.C.1486(i)) only authorizes assistance to
be provided to private or public nonprofit agencies.
Paperwork Requirements and the Application Process
One commentor suggested that RHS had greatly increased the
paperwork requirements and the application process. This rule, however,
does not set forth the application requirements. As stated in the
proposed rule, ``Requests for Proposals (RFP) may be periodically
published in the Federal Register'' and ``RFPs will contain the amount
of funding, the method of allocating or distributing funds, where to
submit proposals, proposal requirements, the deadline for the
submission of proposals, the selection criteria, and the grant
agreement to be entered into between RHS and the grantee.''
List of Subjects in 7 CFR Part 1944
Farm labor housing, Grant programs--Housing and community
development, Loan programs--Housing and community development, Migrant
labor, Nonprofit organizations, Public housing, Rent subsidies, Rural
housing.
Therefore, chapter XVIII, title 7, Code of Federal Regulations is
amended to read as follows:
PART 1944--HOUSING
1. The authority citation for part 1944 continues to read as
follows:
Authority: 5 U.S.C. 301; 42 U.S.C. 1480.
Subpart D--Farm Labor Housing Loan and Grant Policies, Procedures,
and Authorizations
2. Section 1944.151 is revised to read as follows:
Sec. 1944.151 Purpose.
This subpart contains the policies and procedures and delegates
authority for making initial and subsequent insured loans under section
514 and grants under section 516 of the Housing Act of 1949, to provide
housing and related facilities for domestic farm labor. This subpart
also contains the policies and procedures for making grants under
section 516 to encourage the development of farm labor housing. Any
processing or servicing activity conducted pursuant to this subpart
involving authorized assistance to Rural Housing Service (RHS)
employees, members of their families, known close relatives, or
business or close personal associates, is subject to the provisions of
subpart D of part 1900 of this chapter. Applicants for this assistance
are required to identify any known relationship or association with an
RHS employee.
3. Section 1944.153 is amended by adding, in alphabetical order, a
definition for ``technical assistance'' to read as follows:
Sec. 1944.153 Definitions.
* * * * *
Technical assistance. The provision of services by an entity with
farm labor housing and real estate development capacity to an applicant
entity who lacks such a capacity. Such assistance may include, but is
not limited to:
(1) Performing outreach efforts to inform and recruit potential LH
applicants.
(2) Conducting site searches, negotiating and executing property
acquisitions, and resolving planning and zoning issues.
(3) Preparing market analyses, feasibility analyses, and financial
proformas.
(4) Packaging LH loan and grant applications, as well as
applications from other funding sources.
(5) Estimating construction costs and providing oversight during
construction periods.
* * * * *
4. Section 1944.157 is amended by redesignating paragraph (c) as
(d) and by adding a new paragraph (c) to read as follows:
Sec. 1944.157 Eligibility requirements.
* * * * *
(c) Eligibility of applicant for an LH technical assistance grant.
To be eligible for an LH technical assistance grant, the applicant
must:
(1) Be a private or public nonprofit agency;
(2) Have the knowledge, ability, technical expertise, or practical
experience necessary to develop and package loan and grant applications
for LH under the section 514 and 516 programs; and,
(3) Possess the ability to exercise leadership, organize work, and
prioritize assignments to meet work demands in a timely and cost
efficient manner. The grantee may arrange for other nonprofit agencies
to provide services on its behalf; however, RHS will expect the grantee
to provide the overall management necessary to ensure the objectives of
the grant are met.
[[Page 66311]]
Nonprofit agencies acting on behalf of the grantee must also meet the
above stated eligibility requirements.
* * * * *
5. Section 1944.158 is amended by adding a new paragraph (o) to
read as follows:
Sec. 1944.158 Loan and grant purposes.
* * * * *
(o) Encourage the development of farm labor housing. RHS may award
``technical assistance'' grants to eligible private and public
nonprofit agencies. These grant recipients will, in turn, assist other
organizations obtain loans and grants for the construction of farm
labor housing. Technical assistance services may not be funded under
both this paragraph and paragraph (i) of this section. In addition,
technical assistance may not be funded by RHS when an identity of
interest exists between the technical assistance provider and the loan
or grant applicant. Requests for Proposals (RFP) may be periodically
published in the Federal Register by RHS inviting eligible nonprofit
organizations to submit LH technical assistance grant proposals. RFPs
will contain the amount of available funding, the method of allocating
or distributing funds, where to submit proposals, proposal
requirements, the deadline for the submission of proposals, the
selection criteria, and the grant agreement to be entered into between
RHS and the grantee.
Dated: October 24, 2002.
Arthur A. Garcia,
Administrator, Rural Housing Service.
[FR Doc. 02-27681 Filed 10-30-02; 8:45 am]
BILLING CODE 3410-XV-P