(a) Application. The application will be in the form of a letter to the county supervisor with the following information included in or attached to the letter:
(1) Name and address of applicant.
(2) A copy of, or an accurate citation to, the specific provisions of State law under which the applicant is organized; a copy of the applicant's articles of incorporation, bylaws, and other authorizing documents; the names and addresses of the applicant's members, directors, and officers; and if another organization is a member of the applicant organization its name, address, and principal business.
(3) A current, dated, and signed financial statement showing assets, and liabilities, together with information on the repayment schedule and status of each debt.
(4) Evidence of inability to obtain credit from other sources.
(5) General description of the project.
(i) Location and size of tract or tracts to be bought and/or developed.
(ii) Number and size of individual sites planned together with a detailed plot plan.
(iii) Preliminary engineering plans, if available.
(6) Estimated cost and amount of loan needed.
(7) Explanation of applicant's financial contribution to the project.
(8) A map showing the location of and other supporting information on neighborhood and existing facilities such as distance to shopping area, neighborhood churches, available transportation, drainage, sanitation facilities, water supply available or planned, and access to essential services such as doctors, dentists, and hospitals.
(9) If facilities such as water and sewage systems, paved streets, and utilities are not currently available, information on when and how they will be provided.
(10) Evidence of the need for the proposed sites in the locality by low- and moderate-income families and other qualified applicants that are likely to be able to obtain financing for a home.
(11) Written evidence of any State, county, or local planning, zoning, or other ordinances imposing additional restrictions or requirements upon the proposed sites.
(b) County supervisor's review and evaluation of applications. The county supervisor will:
(1) Determine that the applicant meets the eligibility requirements of § 1822.264.
(2) Verify that the information provided is accurate and complete.
(3) Determine that:
(i) The sites will be located in a good residential area and that essential facilities and services will be provided.
(ii) The lots will be reasonable in cost and of a type Rural Development can appropriately finance.
(iii) There is an immediate and ready market for the proposed sites in the planned location.
(iv) The total number of sites planned does not exceed the number of loans the county supervisor can reasonably expect to include in the rural housing program or for which other credit is reasonably assured when the sites are developed.
(v) Proposed subdivisions will comply with the local codes and ordinances and also meet the requirements of subpart C of part 1924 of this chapter.
(4) Evaluate the manner in which the applicant plans to conduct its business and financial affairs.
(5) Comment on the background of the members, directors and officials.
(6) If he has questions about the proposal, send the incomplete docket to the State office for advice.
(7) If for any reason the loan cannot be made, inform the applicant.
(c) Completion of the docket. If the county supervisor determines that the applicant is eligible and the loan will be sound and proper, he should request the applicant to make any needed revisions. In addition to the items required in the application the docket must include:
(1) A plot plan and detailed preliminary plans and specifications for development of the building sites.
(2) A detailed cost breakdown of the project for such items as land and rights-of-way, utility installations or connections, on-site improvements, engineering and legal services, and estimated interest.
(3) If water and sanitary facilities are not publicly owned, a complete statement as to how they will be provided and details about their ownership and operation.
(4) Satisfactory evidence of review and approval of the proposed development by applicable State and local officials whose approval is required by State or local laws, ordinances, or regulations.
(5) Satisfactory evidence that the appropriate public bodies will accept and maintain all public facilities, including common areas, playgrounds, and tot lots, when dedicated to such bodies.
(d) Preparation of docket forms -
(1) Request for obligation of funds and fund analysis. Form RD 3560-51, “Multiple Family Housing Obligation Fund Analysis” will be completed in accordance with the Forms Manual Insert (FMI).
(2) County committee certification or recommendation. County committees will not be used to review RHS loan applications.
(e) Assembly, review and distribution of complete loan docket items. When all items required for the complete loan docket have been furnished, they will be examined thoroughly to make sure they are properly and accurately prepared and are complete in all respects, including dates and signatures. The loan docket items will be assembled in the following order and distributed as follows:
| Form No. | Name of form or document | Total No. of copies | Signed by borrower | Number for loan docket | Copy for borrower |
|---|---|---|---|---|---|
| Application Letter and Attachments | 2 | 1-0 | 1-C | ||
| RD 1910-11 | Applicant Certification, Federal Collection Policies for Consumer or Commercial Debts | 2 | 2-O&C | 1-O | 1-C |
| Evidence of Legal Authority (copy or citation of specific provisions of State statutory authority) | 2 | 1 | 1-0 | 1-C | |
| Proof of Organization (certified copy of Articles of Incorporation) | 2 | 1 | 1-0 | 1-C | |
| Certified copy of Bylaws | 2 | 1 | 1-0 | 1-C | |
| List of names and addresses of officers, directors and members | 2 | 1 | 1-0 | 1-C | |
| Narrative plan and other supporting information | 2 | 1 | 1-0 | 1-C | |
| Evidence of Need | |||||
| Certified Copy of Loan Resolution | 1 | 1 | 1-0 | ||
| RD 440-4 | Assurance Agreement | 2 | 1 | 1-0 | 1-C |
| RD 400-1 | Equal Opportunity Agreement (when applicable) | 2 | 1 | 1-0 | 1-C |
| RD 400-3 | Notice to Contractors and Applicants | 3 | 1-C | 1-C | |
| RD 400-6 | Compliance Statement (when applicable) | 3 | 1-C | 1-C | |
| Survey of land given as security, plans specifications, cost estimates, and proposed manner of development | 3 | 1 | 1-0 | 1-C | |
| Operating budget (if administrative expenses are to be included in loan) | 2 | 1 | 1-0 | 1-C | |
| Appraisal Report with Attachments | 1 | 1-0 | |||
| Preliminary Title Opinion and a Final Title Opinion or a title insurance binder and a mortgage title insurance policy | |||||
| Option or copy of deed, purchase contract, or other instruments of ownership | |||||
| RD 3560-51 | Multiple Family Housing Obligation-Fund Analysis | 2 | 2 | 1 1 | 1 |
(f) Submission of complete docket. The complete docket will be sent to the State office together with the District Director's comments and recommendations and a draft for a press release.
(g) Loan approval authority and State Office action. The State Director is authorized to approve loans in accordance with this subpart and subpart A of part 1901 of this chapter. As soon as it is evident that a loan will be approved, the State Director will complete exhibit A to subpart C of part 2015 of this chapter. The State Director may redelegate approval authority to qualified State Office employees. When a docket or preliminary application is received in the State Office, the State Director will:
(1) Utilize the services of technicians on his staff and from other agencies in evaluating the application.
(2) Review the applicant's articles of incorporation and bylaws. If they conform to approved forms for the State as provided in § 1822.264(a)(1)(ii), the State director need not obtain a preliminary opinion from the OGC. In all other cases the State director will, and in any case may, submit the docket with any comments or questions to the OGC for a preliminary opinion as to whether the applicant and the proposed loan meet or can meet the requirements of State law and this subpart.
(3) If additional information is needed to adequately evaluate the application, return the loan docket to the District Director with any comments and recommendations for further processing.
(4) If the docket is sufficiently complete to enable the State Director to determine that the applicant is eligible and the loan would be sound and proper, issue a proposed memorandum of approval listing any specific conditions that must be met before loan closing.
(5) If the applicant is not eligible or the loan would not be sound and proper and the deficiencies cannot be corrected, inform the District Director accordingly.
[35 FR 16087, July 1, 1970, as amended at 41 FR 7487, Feb. 19, 1976; 41 FR 20392, May 18, 1976; 43 FR 24264, June 5, 1978; 44 FR 4435, Jan. 22, 1979; 50 FR 8583, Mar. 4, 1985; 52 FR 19283, May 22, 1987; 54 FR 29330, July 12, 1989; 69103, Nov. 26, 2004; 80 FR 9866, Feb. 24, 2015]