(a) Application submissions. All persons applying for section 504 loans or grants must file a complete written application in a format specified by RHS. Applications will be accepted even when funds are not available.
(b) Application processing.
(1) Incomplete applications will be returned to the applicant specifying in writing the additional information that is needed to make the application complete.
(2) An applicant may voluntarily withdraw an application at any time.
(3) RHS may periodically request in writing that applicants reconfirm their interest in obtaining a loan or grant. RHS may withdraw the application of any applicant who does not respond within the specified timeframe.
(4) Applicants who are eligible will be notified in writing. If additional information becomes available that indicates that the original eligibility determination may have been in error or that circumstances have changed, RHS may reconsider the application and the applicant may be required to submit additional information.
(5) Applicants who are ineligible will be notified in writing and provided with the specific reasons for the rejection.
(c) Processing priorities. When funding is not sufficient to serve all eligible applicants, applications for assistance to remove health and safety hazards will receive priority for funding. In the case of applications with equivalent priority status that are received on the same day, preference will be extended to applicants qualifying for a veterans' preference. After selection for processing, requests for assistance are funded on a first-come, first-served basis.
[61 FR 59779, Nov. 22, 1996, as amended at 87 FR 6772, Feb. 7, 2022]