U.S. Department of Agriculture Rural Development REPORT ON THE DEFINITION OF “RURAL” Office of the Secretary United States Department of Agriculture Thomas Vilsack, Secretary United States Department of Agriculture Table of Contents Introduction ..................................................................................................................................... 2 1. Assessment of Various Definitions of the Term “Rural” And “Rural Area” That Are Used With Respect To Programs Administered By the Secretary ...................................................... 2 2. Description of Effects Various Definitions Have on Rural Development Programs ................ 9 3. Recommendations for Ways to Better Target Funds Provided Through Rural Development Programs .................................................................................................................................. 13 4. Effect of the Amendment Made by Subsection (a) on the Level of Rural Development Funding and Participation in Those Programs in Each State ................................................... 20 Conclusion .................................................................................................................................... 20 Addenda ........................................................................................................................................ 21 Addenda 1. USDA Rural Development Program Authorities 2. February 15, 2011, Testimony on Rural Definition 3. Questions and Answers to February 15, 2011 Hearing on Rural Definition 4. Filtering Criteria Examples 5. Requests For Rural In Character Determinations Abbreviations and Acronyms ANPR – Advanced Notice of Proposed Rulemaking BIP – Broadband Initiatives Program ConAct – Consolidated Farm and Rural Development Act EPA – Environmental Protection Agency ERS – Economic Research Service HHS – United States Department of Health and Human Services HRSA – U.S. Health Resources and Services Administration HUD – United States Department of Housing and Urban Development NOFA – Notice of Funding Availability PDA – Pennsylvania Department of Agriculture RD – USDA Rural Development RBS – Rural Business – Cooperative Service REAP – Rural Energy for America Program RHS – Rural Housing Service RUCC – Rural/Urban Continuum Codes RUCA – Rural/Urban Commuting Area RUS – Rural Utilities Service SEARCH – Special Evaluation Assistance for Rural Communities and Households USDA – United States Department of Agriculture 1 Introduction The impetus for Rural Development (RD) programs is that equivalent National programs and private investors and lenders shut out rural areas due to lack of capacity and the need for highest returns. To address the unmet needs of rural America, Congress authorized and targeted funds to rural areas by limiting eligibility based on total population. As population and economies continue to shift within and between states, eligibility criteria based on total population warrant a second look. In an effort to identify alternatives, Section 6018(b) of the Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) required the Secretary of Agriculture to report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate responding to four specific areas. Per that directive, this document — 1. Assesses the various definitions of the term ‘‘rural’’ and ‘‘rural area’’ that are used with respect to programs administered by the Secretary; 2. Describes the effects that the variations in those definitions have on those programs; 3. Makes recommendations for ways to better target funds provided through rural development programs; and 4. Determines the effect of the amendment made by subsection (a) on the level of rural development funding and participation in those programs in each State. While this report emphasizes programs authorized through the Farm Bill process, the reporting requirement is not exclusive to those programs, which are under the jurisdiction of the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition and Forestry. Accordingly, as appropriate, programs administered by the Secretary but authorized in the Housing Act of 1949 under the jurisdiction of the House Committee on Financial Services and the Senate Committee on Banking are discussed. Authorizing statutes currently rely almost exclusively on total population as measured in the most recent decennial census as the sole indicator rural. With the Census Bureau having released all necessary data, USDA has determined that it will begin to use 2010 figures for total population beginning on March 28, 2013. 1. Assessment of Various Definitions of the Term “Rural” And “Rural Area” That Are Used With Respect To Programs Administered By the Secretary 2 Of the many programs administered by the Secretary of Agriculture across the Department’s seven Mission Areas, only those of the Rural Development Mission Area 1 have geographic limitations that restrict eligibility in most cases to “rural areas”. Rural Development staff never reach analysis of an application’s benefits, the management skill of a business owner, the repayment ability of a home mortgage applicant, or the economic feasibility of a project unless an eligibility determination can be made first. In testimony before the House Agriculture Subcommittee on Rural Development, Research, Biotechnology, and Foreign Agriculture on February 15, 2011, USDA provided the Subcommittee a matrix of current definitions for the 40-plus Rural Development programs (Addendum 1 of this report), as well as the actual statutory language for all programs in the Rural Development mission area. This matrix provides a comprehensive understanding of the complexities associated with determining individual program eligibility. The February 15, 2011 testimony (Addendum 2), follow-up questions and answers from Members of the Subcommittee (Addendum 3), and the above referenced matrix are attached to this report as Addenda. The various program definitions also are summarized below. In addressing the definitions and role of rurality in the 2008 Farm Bill, Congress took three concrete steps: • For the first time, a “default” definition commonly used in business development programs was added to the Consolidated Farm and Rural Development Act, or ConAct applying to any new programs unless Congress specifically provided a different definition; • For the first time, the Under Secretary for Rural Development was authorized to allow eligibility for business development programs in places that otherwise would not be eligible because of their proximity to municipalities of larger than 50,000 population if he determined them to be “rural in character”; and • Following a precedent set in the 2002 Farm Bill for cooperatives of agricultural producers hoping to establish value-added processing of their commodities, Congress either provided no “rural area” eligibility requirement or waived such requirements for certain high-priority areas in renewable energy and underserved communities in terms of their limited access to fresh healthy food and lack of food security or high rates of poverty, commonly called “food deserts”. Default Definition Section 6018(a) of the 2008 Farm Bill provided a general “default” definition of the term “rural area” for programs authorized by the ConAct. The default definition is the one commonly used for most business development programs, such as the Business & Industry Loan Guarantee 1 Rural Business – Cooperative Service (RBS), Rural Housing Service (RHS), and Rural Utilities Service (RUS) 3 Program or the Rural Business Enterprise Grant Program 2. It then articulated two different rules for Water and Wastewater Disposal and Community Facilities programs, as follows: SEC. 6018. DEFINITIONS. (a) RURAL AREA.—Section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) is amended by striking paragraph (13) and inserting the following: ‘‘(13) RURAL AND RURAL AREA.— ‘‘(A) IN GENERAL.—Subject to subparagraphs (B) through (G), the terms ‘rural’ and ‘rural area’ mean any area other than— ‘‘(i) a city or town that has a population of greater than 50,000 inhabitants; And ‘‘(ii) any urbanized area contiguous and adjacent to a city or town described in clause (i). ‘‘(B) WATER AND WASTE DISPOSAL GRANTS AND DIRECT AND GUARANTEED LOANS.—For the purpose of water and waste disposal grants and direct and guaranteed loans provided under paragraphs (1), (2), and (24) of section 306(a), the terms ‘rural’ and ‘rural area’ mean a city, town, or unincorporated area that has a population of no more than 10,000 inhabitants. ‘‘(C) COMMUNITY FACILITY LOANS AND GRANTS.—For the purpose of community facility direct and guaranteed loans and grants under paragraphs (1), (19), (20), (21), and (24) of section 306(a), the terms ‘rural’ and ‘rural area’ mean any area other than a city, town, or unincorporated area that has a population of greater than 20,000 inhabitants. Exceptions to the default definition Section 6018(a) of the 2008 Farm Bill further amended Section 343(a)(13) of the ConAct with new subparagraphs (D) and (E), which provide administrative exception authority to the Under Secretary. This authority extends only to programs that employ the default definition of “rural area” which, in addition to excluding applications from cities or towns with greater than 50,000 population also excludes communities adjacent and contiguous to those cities or towns regardless of those communities’ own total population. In certain cases, those otherwise excluded areas still might be eligible rural areas. The results of this flexibility are discussed in greater detail in report Section 4 and Addendum 5. 2 One notable exception in RBS is the Intermediary Relending Program, where an application can be accepted from anywhere except a city or town greater than 25,000 total population. 4 Because exclusion by reason of proximity to a larger city or town applies only to the default definition, which is used solely by Rural Business – Cooperative Service (RBS) for most of its programs, the exceptions to exclusion also are limited in practice to RBS programs. There is no administrative exception authority for the 10,000 threshold in the Water and Waste Disposal Program administered by Rural Utilities Service (RUS) or the 20,000 threshold in the Community Facilities Program administered by Rural Housing Service (RHS). The exceptions fall into two categories. There is statutory language limiting exclusion of whole municipalities when there are areas that appear as narrow “strings” of development at the outskirts of urbanized areas, often extending along highways. And, there is statutory language retaining eligibility for areas that remain “rural in character”. For the “strings” exception, Section 6018(a) of the 2008 Farm Bill provided: “Notwithstanding any other provision of this paragraph, in determining which census blocks in an urbanized area are not in a rural area . . ., the Secretary shall exclude any cluster of census blocks that would otherwise be considered not in a rural area only because the cluster is adjacent to not more than 2 census blocks that are otherwise considered not in a rural area under this paragraph.” In other words, once a string of development narrows to the point that it is only two census blocks wide, the string should be “snipped”, allowing areas beyond it to be considered eligible for business development programs even if adjacent and contiguous. For the “rural in character” exception, Section 6018(a) of the 2008 Farm Bill provided: AREAS RURAL IN CHARACTER.— (i) APPLICATION.—This subparagraph applies to— (I) an urbanized area described in subparagraphs (A)(ii) and (F) that— (aa) has 2 points on its boundary that are at least 40 miles apart; and (bb) is not contiguous or adjacent to a city or town that has a population of greater than 150,000 inhabitants or an urbanized area of such city or town; and (II) an area within an urbanized area described in subparagraphs (A)(ii) and (F) that is within 1⁄4-mile of a rural area described in subparagraph (A). (ii) DETERMINATION.—Notwithstanding any other provision of this paragraph, on the petition of a unit of local government in an area described in clause (i) or on the initiative of the Under Secretary for Rural Development, the Under Secretary may determine that a part of an area described in clause (i) is a rural area for the purposes of this paragraph, if the Under Secretary finds that the part is rural in character, as determined by the Under Secretary. (iii) ADMINISTRATION.—In carrying out this subparagraph the Under Secretary for Rural Development shall— (I) not delegate the authority to carry out this subparagraph; 5 (II) consult with the applicable rural development State or regional director of the Department of Agriculture and the governor of the respective State; (III) provide to the petitioner an opportunity to appeal to the Under Secretary a determination made under this subparagraph; (IV) release to the public notice of a petition filed or initiative of the Under Secretary under this subparagraph not later than 30 days after receipt of the petition or the commencement of the initiative, as appropriate; (V) make a determination under this subparagraph not less than 15 days, and not more than 60 days, after the release of the notice under subclause (IV); (VI) submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report on actions taken to carry out this subparagraph; and (VII) terminate a determination under this subparagraph that part of an area is a rural area on the date that data is available for the next decennial census conducted under section 141(a) of title 13, United States Code. In other words, the law recognizes that there might be very limited instances in which pockets of rurality still exist within a municipality that otherwise would be excluded because of being adjacent and contiguous to a city or town greater than 50,000. But, those cases are limited to two fact patterns: one for large urbanized areas that could encompass multiple municipalities, but is not proximate to any city larger than 150,000 total population; the other for places within an urbanized area that are within one-quarter mile of an eligible rural area. The decisions, and the disposition of any appeals of the decisions, are made solely by the Under Secretary for Rural Development who is expressly precluded from delegating the matter to anyone else. The “rural in character” concept also appears outside of the ConAct in the Housing Act of 1949. In general, programs authorized by Title V are available in any town, village, city, or place (including the immediately adjacent densely settled area) that is not part of or associated with an urban area, and that: • • Is rural in character with a population of less than 10,000; or Is not contained within a Metropolitan Statistical Area (MSA) and has a serious lack of mortgage credit with a population between 10,000 and 20,000. A “grandfather” clause allows communities with populations greater than 10,000 but not more than 25,000 to remain eligible after becoming part of an MSA if they are still “rural in character”. In the Housing Act programs, the determination of “rural in character” is made by the respective state director for Rural Development, who is tasked by regulation with looking at population changes and eligibility impacts at least every five years, and every three years in rapid growth areas. By contrast, the “rural in character” provisions of the 2008 Farm Bill limit the determination to the Under Secretary for Rural Development. 6 No “rural in character” or other administrative flexibility exists for the Water & Waste Disposal Program of RUS or the Community Facilities Program of RHS. If a municipality or unincorporated area exceeds the 10,000 or 20,000 threshold respectively by even one person, it is not eligible absent further action by Congress. Historically, this further action has taken the form of a general provision in appropriations legislation declaring the municipality an eligible rural area until the Agency adopts data of the next decennial census. For the Telecommunications Program, Section 201 of the Rural Electrification Act of 1936 gives preference to applicants operating in rural areas, defined in Section 203(b) as anywhere except an incorporated or unincorporated area with a total population in excess of 5,000. An updated definition reflecting current market conditions for these larger utility loans was included in the American Recovery and Reinvestment Act for broadband loans, grants, and loan guarantees, as follows: For an additional amount for the cost of broadband loans and loan guarantees, as authorized by the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) and for grants (including for technical assistance), $2,500,000,000: Provided, That the cost of direct and guaranteed loans shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That, notwithstanding title VI of the Rural Electrification Act of 1936, this amount is available for grants, loans and loan guarantees for broadband infrastructure in any area of the United States: Provided further, That at least 75 percent of the area to be served by a project receiving funds from such grants, loans or loan guarantees shall be in a rural area without sufficient access to high speed broadband service to facilitate rural economic development, as determined by the Secretary of Agriculture: Provided further, That priority for awarding such funds shall be given to project applications for broadband systems that will deliver end users a choice of more than one service provider: Provided further, That priority for awarding funds made available under this paragraph shall be given to projects that provide service to the highest proportion of rural residents that do not have access to broadband service . . . . (Emphasis added.) Section 13 of the Rural Electrification Act defines “rural” for the Electric programs of RUS by linking to the ConAct’s definition for the Community Facilities program of RHS and preserving eligibility of existing borrowers, as follows: (3) RURAL AREA.—Except as provided otherwise in this Act, the term ‘‘rural area’’ means the farm and nonfarm population of— (A) any area described in section 343(a)(13)(C) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(C)); and 7 (B) any area within a service area of a borrower for which a borrower has an outstanding loan made under titles I through V as of the date of enactment of this paragraph. Thus, while any new Rural Electric Cooperative activity would be subject to the 20,000 population cap, existing co-ops follow a “once rural, always rural” standard that allows for new lending to maintain generation, distribution and transmission facilities. Further, Section 6108 of the 2008 Farm Bill, in an effort to encourage adoption of renewable energy technologies, authorized the sale of renewable energy financed by RUS into urban as well as rural markets, opening the door to placing infrastructure and equipment into non-rural areas. No “Rural Area” Requirement In amendments to Title IX of the Farm Security and Rural Investment Act of 2002 (the 2002 Farm Bill) contained in Title IX of the 2008 Farm Bill, Congress placed no statutory rural area eligibility requirement in the newly-authorized programs, recognizing that proximity to transportation hubs and consumer markets very well could make projects far more successful and far more beneficial to farmers, rural entrepreneurs, and consumers than siting projects solely in rural locations. RBS’ rulemaking for the Biorefinery Assistance Program (Section 9003, interim final rules were effective March 16, 2011), Repowering Assistance Program (Section 9004, interim final rules were effective March 14, 2011), and the Bioenergy Program for Advanced Biofuels (Section 9005, interim final rules were effective March 14, 2011) was consistent with legislative intent that there not be a “rural area” eligibility criterion. The original renewable energy program authorized in 2002, the Rural Energy for America Program (Section 9007, or REAP, interim final rules effective April 14, 2011), does have rural area eligibility definition requirements for non-farm rural businesses and RBS has chosen to apply the general definition for rural area applicable to business programs under the Con Act. However, the 2008 bill amended that requirement to allow agricultural producers to be eligible irrespective of where their operations are located. RUS also received new authority to reach beyond rural areas with renewable energy. Section 6108 of the 2008 Farm Bill amended Section 317(b) of the Rural Electrification Act, authorizing RUS loans for electric generation from renewable energy resources for resale to rural and nonrural residents. Congress addressed “food deserts” in Section 6015 of the farm bill, which amended Section 310B of the ConAct to create a target for local and regional food systems 3 within the Business & Industry Loan Guarantee Program. The target provided for at least five percent of available budget authority to be used for such purposes, reserving funds for the first six months of a fiscal year. Within the target, priority was given to local and regional food system applications that would benefit rural, tribal, or urban underserved communities. 3 Local or regional food systems are defined by Section 6015 as within a 400-mile radius or within the same state. 8 Giving priority to projects benefiting food deserts wherever they are follows on the heels of a provision of the 2002 Farm Bill, which for the first time allowed certain businesses whose lenders were seeking a Business & Industry Loan Guarantee to site their projects in metropolitan areas under certain conditions. The applicants must be farmer-owned cooperatives whose members are from within an 80-mile radius of the proposed site, the purpose of the project must be adding value to agricultural commodities, and the jobs created must go primarily to rural people. See Section 7 USC 310B(g)(3)(A)(i) of the Con Act. Staying in the labor vein, RHS programs to assist migrant and seasonal farm workers with finding decent housing also provide flexibility in where projects are constructed. 2. Description of Effects Various Definitions Have on Rural Development Programs Every loan, grant, or loan guarantee application received by Rural Development staff undergoes three initial tests: whether the individual or entity applying is eligible for a particular program; whether the activity proposed is an eligible purpose for that particular program; and whether the location of the activity proposed in the application is eligible for that particular program. After an eligibility analysis is done, staff can begin to evaluate the merits of the application and the applicant’s ability to repay any financing. Applicant eligibility is relatively simple. The Community Facilities Program, for example, is available only to municipalities, tribal governments, and non-profit organizations. Direct loans for single family home mortgages are available only to those whose income is below 80% of county median income. Similarly, eligible purposes are articulated in statutes and regulations. For example, the Business and Industry Loan Guarantee Program generally cannot finance agricultural production. The focus of this report is on the relatively complex question of whether the location of the proposed activity is eligible for a grant or loan. The many different population thresholds have the following effects: • Arbitrary barriers to regional strategies, perpetuating community isolation and less costeffective economic and community development practices; • Inability of RD to provide comprehensive, integrated program delivery in any community or group of communities larger than the smallest population threshold; • State-defined municipalities complicating nationwide definitions relying on “cities,” “towns,” and “unincorporated areas”; and 9 • Periods of uncertainty and disruption of program delivery following each decennial census. Arbitrary barriers to regional strategies, perpetuating community isolation and less costeffective economic and community development practices Both of the last two Farm Bills and section 725 of the 2012 Appropriations law included provisions attempting to reposition Rural Development to work on a more multi-jurisdictional basis rather than making every decision in the isolation of the particular municipality from which an application arises. In some places, multi-jurisdictional planning and development requires acknowledging the role of more populous areas in providing market opportunities for goods and services provided by rural people and job opportunities for rural people willing to commute. For example, regional food systems to regional transportation systems depend on fully understanding and taking advantage of the interface between rural and more urban communities. Being limited to lending solely in “rural areas” which are defined in multiple ways makes putting these strategies into practice far more difficult. To be sure, some state offices of Rural Development have had success with regional approaches to services like public water and sewer, but only when every community in the regional project was under the cap for that program. If a regional sewer project encounters a municipality of greater than 10,000 population, for example, that community cannot be part of the Rural Development financing application no matter how much sense it might make to project engineers geographically and no matter what the impact of including the larger community might have had on end user rates as fixed costs got spread over a larger number of end users. Many times Rural Development programs have been implemented without regard to regional planning. The result is individual communities applying for financing for their own sewage treatment plants, their own critical access hospitals, their own emergency services, and so forth, rather than partnering with neighboring communities. Inability of RD to provide comprehensive, integrated program delivery in any community or group of communities larger than the smallest population threshold The real art in what Rural Development’s staff do is how they do it – through a distributed network of state and area offices providing comprehensive “one-stop” service for technical and financial assistance in community and economic development. Rural communities often are led by volunteer local elected officials who have few if any paid staff beyond perhaps a road supervisor. They do not have professional grant writers or professional engineers on staff to write their applications for them, and they rely on Rural Development loan officers, engineers, architects, and partners receiving Rural Development’s technical assistance financing, such as the National Rural Water Association or the Rural 10 Community Assistance Partnership, for help through an application’s life cycle. Over time, the authorities have been approached on an individual ad hoc basis. Communities and individuals apply for assistance on a program by program basis. If population definitions were broader, rural communities would have the ability to approach the programs in a more coordinated way. With multiple “rural area” eligibility standards, Rural Development employees are challenged to provide comprehensive financial assistance beyond communities of 10,000 or less, the general threshold for housing and water and sewer programs. Instead, they also must be able to bring other Federal and state agencies to a project to fill in the gaps left by varying eligibility standards for Rural Development’s programs. State-defined municipalities complicating nationwide definitions relying on “cities”, “towns”, and “ unincorporated areas” Section 6018(a) of the 2008 Farm Bill provides Section 343(a)(13)(G) of the ConAct making special provisions for Puerto Rico and Hawaii where the standards established earlier in that section simply do not fit their municipal structures. Use of the words “city” or “town” can create certain challenges elsewhere, too. Common sense suggests that “city” or “town” could be interpreted as any incorporated municipality, but had Congress intended to mean any incorporated municipality, the statutory language also simply could have said so. A literal interpretation could exclude nearly all of Pennsylvania, with its 1,000 boroughs and 1,400 townships in addition to its 57 cities and exactly one town, even though a large majority of those boroughs and townships have fewer than 10,000 residents. While the majority of states began as unincorporated territories now dotted with incorporated municipalities, many Colonial states are entirely incorporated but are dotted with unincorporated population clusters within otherwise incorporated municipalities. Several northeastern states – notably, Massachusetts, New York, and Pennsylvania – still recognize in state law the concept of a “village”, an unincorporated population cluster lying wholly within an incorporated municipality. In MA and NY, villages lie within incorporated towns. In PA, villages lie within incorporated townships. Through the 1990s, these unincorporated population centers within incorporated municipalities in the northeast region were treated the same as completely unincorporated areas elsewhere in the country – namely, if a water or sewer project actually would serve fewer than 10,000 people, or the fire department would serve fewer than 20,000 people, the respective Water & Waste Disposal or Community Facilities application could proceed. Thus, a village of fewer than 10,000 people, where centralized services like water or sewer were more necessary than in the outlying farmland, could apply for financing even if the total population of the town or township in which the village was located exceeded 10,000. In the 2002 Farm Bill, Congress adjusted the definitions of “rural area” in a manner suggesting that congressional intent was to change this result. The same language was retained in 2008. Current practice looks past the unofficial borders of the unincorporated village and instead limits eligibility to places where the entire town or township in which the village is sited meets the respective eligibility threshold – 10,000 for the Water & Waste Disposal program and 20,000 for 11 the Community Facilities program. Since 2002, an applicant is the municipality rather than a population cluster within a municipality or even a single-purpose sewer or water district. Unlike truly unincorporated areas in states like Texas or Iowa, where the standard is still to evaluate the total population to be served by the project, unincorporated population clusters in states like Massachusetts or New York that lie within incorporated municipalities now are eligible only if the total population of the entire municipality falls below the eligibility standard. Periods of uncertainty and disruption of program delivery following each decennial census Most Rural Development programs have a “rural area” requirement as a fundamental test of program eligibility. The test is defined by total population based on the most recent decennial census, irrespective of population density, the predominant types of economic activity and local land uses, the extent to which the area might have become a “bedroom community” for a neighboring metropolitan area, or any other factors. RD has no authority to waive these requirements with the exception of most business programs. In the absence of administrative waiver authority, Congress historically has created its own flexibility on a case-by-case basis by adopting general provisions on USDA appropriations legislation declaring communities that otherwise would be over the population limit still rural for purposes of a specific program. This has been true particularly with regard to the ConAct’s Water & Waste Disposal Program of RUS and the Community Facilities program of RHS. Like “rural in character” exceptions made under the provisions of the last Farm Bill, existing general provisions from prior appropriations laws expire with the adoption of 2010 Census figures, which will happen March 28, 2013. There may be extenuating circumstances reviewed on a case-by-case basis in which it would be in the best interests of the taxpayers to continue using 2000 Census data, such as a multi-phase sewer project in which an overall project plan was approved based on 2000 figures, a majority of phases have been completed, and declaring the area ineligible now would leave the project unfinished and the community less able to repay existing indebtedness. In general, though, hundreds of communities now face exclusion from one or more Rural Development programs either because the general provision they relied upon to remain eligible after the 2000 Census results were adopted is expiring 4 or because the increase in their population from 2000 to 2010 has placed them for the first time above one or more population thresholds. Among them are: • Municipalities like Pleasant Grove, AL, Batesville, AR, Garden Acres, CA, Sebring, FL, Chatham, IL, Waggaman, LA, Alexandria, MN, and Guthrie, OK 5, which increased in population from slightly under 10,000 to slightly over 10,000. Without considering whether any other characteristics of those communities changed between 2000 and 2010, 4 No new general provisions providing exceptions to the 2000 Census figures were enacted in fiscal year 2011 continuing resolutions or in the 2012 appropriations legislation. 5 Pleasant Grove’s population increased from 9,983 in the 2000 Census to 10,110 in the 2010 Census; Batesville increased from 9,445 to 10,248; Garden Acres increased from 9,747 to 10,648; Sebring increased from 9,667 to 10,491; Waggaman increased from 9,435 to 10,015; and Guthrie increased from 9,925 to 10,191 in that time. 12 they will no longer be eligible for the Water & Waste Disposal Program even though public water and sewer are exactly the types of infrastructure investments that could attract new employers to those areas; • Municipalities like Fountain, CO, Darien, CT, Junction, KS, Independence, KY, Arnold, MO, Brandon, MS, West Fargo, ND, Odessa, TX, and Waynesboro, VA 6, which increased in population above 20,000, making them no longer eligible for the Community Facilities Program after October 1, 2012 even though Congress raised the direct loan program level four-fold this fiscal year because the subsidy rate has dropped to zero and the only cost to taxpayers are for staff salaries and related costs to administer the program; and • Holt, MI, which saw its population more than double from 11,315 to 23,973. If local elected officials were considering meeting the needs of this growing community by applying for long-term, fixed rate Community Facilities Program financing for new schools, expanded access to health care, expanded emergency services or perhaps a new municipal airport, they would find the community is no longer eligible solely because it exceeds 20,000 total population. Of course, the opposite effect occurs when a community loses population and falls below the arbitrary total population threshold of a particular program. Owego, NY, for example, dropped from 20,366 residents in the 2000 Census to 19,883 residents in the 2010 Census. Nothing else has changed about Owego, but under the ConAct, it will become an eligible rural area for purposes of Community Facilities financing on October 1, 2012. Similarly, the 2000 Census revealed that Harrisburg, Pennsylvania’s capital, had decreased in population below 50,000, making that city eligible for business programs. Nothing else about the City of Harrisburg changed to suggest it actually had become rural, but that did not matter. Total population standards are a blunt instrument, overlooking other factors that perhaps do a better job of indicating when an area is rural, such as population density or the prominence of natural resource based businesses in the local economy. Perhaps more significantly, when Harrisburg became eligible for business programs financing following the 2000 Census, the much smaller municipalities adjacent and contiguous to Harrisburg became eligible, too. 3. Recommendations for Ways to Better Target Funds Provided Through Rural Development Programs The current state of the law puts an inordinate amount of emphasis on the location from where an application can be received, while comparatively little statutory attention is paid to the larger question of which applications (wherever and whoever their source) get funded by Rural 6 Fountain’s population increased from 15,197 in the 2000 Census to 25,846 in the 2010 Census; Darien increased from 19,607 to 20,732; Junction increased from 18,886 to 23,353; Independence increased from 14,982 to 24,757; Arnold increased from 19,965 to 20,808; Brandon increased from 16,436 to 21,705; Odessa increased from 17,799 to 22,707; and Waynesboro increased from 19,520 to 21,006. 13 Development. With about $2.4 billion of appropriated budget authority to the Mission Area and its constituent agencies leveraging over $37 billion in grants, loans, and loan guarantees available to the public this fiscal year, Rural Development’s work is a bargain. Still, both Members of Congress and the Secretary of Agriculture must be able to assure taxpayers and constituents that funds were well invested in projects that helped as many rural residents as possible as efficiently and effectively as possible. Complete reliance on arbitrary “one-size-fits-all” total population eligibility standards in the definitions section of the ConAct needs to give way to a more robust analysis of each application based on a variety of factors that lead to the greatest benefit for rural people and places. Such factors also should be flexible enough to assist in analyzing applications under authorities beyond the ConAct and should facilitate the streamlining of program applications and processes among like types of applicants, specifically rural individuals and communities on the one hand and entrepreneurs on the other. Finally, such factors should be more transparent and comprehensible to applicants and employees than the current system that has grown up over seven decades. Note that the recommendations below apply only to those programs that are under the jurisdiction of the Committee on Agriculture for the House of Representatives and the committee on Agriculture, Nutrition, and Forestry. Recommendation #1: Utilize a common population threshold. Common population threshold The current default definition of “rural area” in the ConAct begins at 50,000 total population. We recommend that Rural Development accept as location eligible an application for any program from anywhere with a total population of less than 50,000, which would allow staff to move quickly into more substantive review of the application’s merits and whether it should be funded. This would require amending the ConAct, as well as the Rural Electrification Act of 1936, the Farm Security and Rural Investment Act of 2002. This common starting point allows communities to come together on more regional infrastructure projects. It allows the Mission Area to market programs in a simple streamlined fashion, facilitating staff sharing outreach responsibilities. The common definition would also substantially reduce the number of communities affected by the decennial census, thus reducing confusion and increasing the predictability of RD programs. Critics of this approach may suggest that the change would move the focus of some programs away from serving the most rural communities. Furthermore, some may say that the most programs are already oversubscribed, so by broadening eligibility, those communities that are currently eligible would be less likely to receive RD program support. With these concerns in mind, this proposal suggests that the definition provides the Secretary the discretion to serve areas of greatest need and where the resources can make the greatest economic impact. Competitive application scoring to target funds 14 Every application should be considered on a variety of factors that drive available funding to the most rural people and places, investing where there is both greatest need for Federal resources and greatest opportunity for economic or community development. Section 306 of the ConAct basically authorizes community-based programs in Rural Housing Service (Community Facilities loans in Section 306(a)(1) and Rural Utilities Service (Water & Waste Disposal in Section 306(a)(2)). Currently, this section of law does include targeting language for both that places the greatest emphasis for funding on the smallest communities. The section also includes consideration of poverty indicators for determining both the interest rate offered on loans and the degree to which grant funds might be made available in combination with loans to keep the total project cost affordable. Unfortunately, while trying to accomplish the same things using the same indicators, Section 306 actually uses slightly different iterations of these standards that treat these two basic community-based programs differently, needlessly adding complexity for applicants and staff. Instead, we recommend amending Section 306 to provide Rural Development the ability to evaluate a common range of factors for all community-based applications, taking into consideration total population and awarding higher scores to less populated areas. The Secretary should also have the ability to consider in regulation: • • • • Population density, with higher scores awarded to less densely populated areas (see map below for examples); Economic conditions, comparing project area incomes to statewide or national data, with lower loan interest rates and higher grant levels awarded to projects serving those with least capacity to help themselves, as per current law; The degree to which the project is consistent with local or regional economic strategies; The degree to which the project serves a geographic area or demographic group that historically has been underserved by Rural Development; Targeting could also look to communting patterns, which provide a more objective yardstick than the “adjacent and contiguous urbanized area” for identifying when a community has lost its independent identity. (See map below for details). Authority could also be provided to consider ecological impacts of projects, with higher scores awarded to projects that address threats to air or water quality, or redevelop existing sites rather than convert prime farmland. RUS developed a successful model for utilizing such criteria in their application review criteria developed under the second Notice of Funds Availability (NOFA) for the Broadband Initiative Program (BIP). The first NOFA provided the highest levels of grant funding to the most remote rural areas that had been hardest to reach with prior programs that offered solely loan funds. While that objective certainly was worthwhile, reaching it required defining not just “rural” but also “remote”. By contrast, the second NOFA offered greater flexibility by considering a variety of factors to drive the greatest level of subsidy to the communities most in need. For instance by applying additional criteria such as population density, median household income and unemployment, a community could become eligible for a greater amount of grant funds. Feedback on this second approach was very supportive compared to the feedback received on the 15 first NOFA. This same type flexibility can be applied to this recommendation to ensure the greatest support to those most in need of any Rural Development assistance. Similarly, we recommend amending Section 310B of the ConAct to provide a single set of targeting tools for supporting job creation and entrepreneurship in rural areas. RD could be provided the flexibility to consider factors in regulation such as: • • • • Areas with lower total population; Economic conditions, including unemployment rates in the project area compared to statewide rates; General economic impacts of a project, creating high quality jobs; and The project’s consistency with local and multi-regional strategic objectives. 16 U.S. Population Density (By Counties) Popda?onper squam mile - 250:? more - 50-2493 2 1049.9 . less than 10 17 Example of Rural-Urban Commuting Areas (provided through the Center for Applied Research and Environmental Systems) 18 Recommendation #2: Further remove barriers to regional strategies by retaining the ability of by standardizing policies Congress has adopted in past Farm Bills with regard to occasionally siting a project in a metropolitan area when proximity to transportation or other infrastructure and consumer markets are needed to ensure the best results for consumers and rural applicants. For example: • Farmers markets, food hubs, and other types of value-added agricultural activities that facilitate increasing total farm income opportunities should be permitted in metropolitan areas, whether owned by a farmer-owned cooperative as current law provides, or owned by a single farmer, farm partnership, or other farm business type. Such permission should continue to hinge on rural people benefiting from job creation, as Section 310B currently provides. Additional clarity is needed on language in Section 6015 of the 2008 Farm Bill providing that within the process of providing Business & Industry Loan Guarantee Program funds to local and regional food system projects, “the Secretary shall give priority to projects that have components benefitting underserved communities.” An underserved community is defined to include urban, rural, or tribal communities that the Secretary has determined have both limited access to affordable healthy foods and a high rate of hunger or poverty. Additional language clarifying whether “benefiting” these types of urban areas includes being able to site a project in an urban area or is limited to instances such as financing a refrigerated truck to transport fresh foods produced in a rural area into an urban community. Recommendation #3: Remove barriers to providing comprehensive, integrated program delivery by deleting the provisions of Section 6018(a)(D) and (E) of the 2008 Farm Bill. The language provides exceptions to areas “adjacent and contiguous” to cities and towns greater than 50,000 being excluded from eligibility along with the larger community. The language is sometimes difficult for applicants to follow, and all but requires that they retain some type of legal or other professional assistance to comply with the process of requesting an exception from the Under Secretary. To ensure communities and residents in the most rural and areas of greatest need are provided priority funding consideration under the 50,000 population threshold, USDA proposes incorporating a series of scoring criteria for evaluating the merits of applications into relevant statutes and regulations (see Addendum 4 for additional information). Recommendation #4: Amend Section 343(a)(13) of the ConAct replacing the words “city or town” with “any incorporated municipality”. With each state and territory defining its own municipal structure, words like “city or town” can be unintentionally limiting if taken literally. Taken with Recommendation #1, the default definition of “rural area” would become, “anywhere except an incorporated municipality or unincorporated area greater than 50,000 total population”. 19 4. Effect of the Amendment Made by Subsection (a) on the Level of Rural Development Funding and Participation in Those Programs in Each State Section 6018(a) provided certain exceptions to allow Business & Industry Loan Guarantees to be made on projects in urbanized areas that might otherwise be excluded as “adjacent and contiguous” to cities and towns greater than 50,000 total population. USDA Rural Development implemented the discretionary portion of the 2008 Farm Bill known as the “rural in character” provisions. A determination under this provision allows an area to be considered eligible for rural businesses programs, provided that the area is determined to be “rural in character” and is within: (1) an urbanized area that has two points on its boundary that are at least 40 miles apart, which is not contiguous or adjacent to a city or town that has a population of greater than 150,000 inhabitants or the urbanized area of such a city town; or (2) an area within an urbanized area contiguous and adjacent to a city or town of greater than 50,000 population that is within ¼ mile of a rural area. Rural Development also implemented language requiring that exclusions of adjacent and contiguous urbanized areas be limited as they diminish beyond two census blocks in width. Referred to as “strings,” this provision recognized that development often follows the major road out of an urban area, without extending much beyond the road frontage as the road extends into the surrounding countryside. To date, there have been 219 approved uses of this language with 33 additional requests that were not statutorily eligible. Attached is a listing of determinations made under these provisions since their adoption received to date (Addendum 5). Conclusion The USDA Rural Development mission area provides financial and technical assistance through 40-plus programs to support economic and community development for rural residents and their communities. Simplifying the eligibility determination for these communities is a key step in streamlining program implementation and providing a more transparent process for accessing financial and technical assistance from the Mission Area. Having a 50,000 population limit for all programs would remove confusion over what constitutes a rural area and would encourage more multi-jurisdictional collaboration. The convergence of new 2010 Census data adoption and new Farm Bill development offer a unique opportunity for a long-term solution on how best to ensure that resources appropriated to Rural Development are appropriately targeted to rural people and places of greatest opportunity and greatest need. Submitted February 2013 20 Addenda 1. USDA Rural Development Program Authorities 2. February 15, 2011, Testimony on Rural Definition 3. Questions and Answers to February 15, 2011 Hearing on Rural Definition 4. Filtering Criteria Examples 5. Request For Rural In Character Determinations 21 September 23, 2010 USDA RURAL DEVELOPMENT PROGRAM AUTHORITIES QUICK REFERENCE GUIDE FY2010 Important Budget Note: This spreadsheet is a "snapshot in time". The Budget columns are sourced from a ProSum Spreadsheet dated April 7, 2010. Since then a great deal of reprogramming, recissions or other adjustments have occurred that are reflected in the edits received from individual program reviewers over the past 4 weeks (late August, early Sept 2010). Program edits that reflect MAJOR differences from the April source document are noted in ITALICS. Additional changes to FY2010 Funding numbers are being made as this worksheet goes to press at FY 2010 year end. The regulation and legislative columns are updated through September 15, 2010. All column entries are subject to change throughout the fiscal year General Provision special earmarks are not listed. The FY2010 Available Funding Column is not intended to be additive. Where earmarks are included in other totals we have attempted to note this. Finally, "carryover" is the catch-all term used in ProSum to capture all categories of availability other than FY2010 appropriations, including de-obligations; it is not necessarily "true" carryover. In most cases, relevant obligation entries had yet to be processed, and, accordingly, the "carryover" numbers are higher than would otherwise be the case. The “Quick Reference Guide” was last edited by Robin Meigel and reflects contributions from Ivor Lunking and Jeff McWilliams in RUS. It has not been reviewed by OGC. Please notify Robin Meigel of corrections or additions at 202.720.9452. Links to external web pages are provided as a convenience but may not be current, or accurate, versions of the law. BUSINESS PROGRAMS Index Program Regulation Citation Legislative Citation Eligibility (Entitites) Eligible Areas (Population) Eligible Purposes RURAL DEVELOPMENT BUSINESS PROGRAMS AUTHORITIES http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 1 of 54 Funding Limits Per Request Loan Terms, if Applicable FY2010 Available Funding Budget Authority Index Program Regulation Citation Legislative Citation 7 CFR 4279 1 RD Instructions 4279-A, 4279-B, and 4287-B E-page 34: § 310B(a) Eligibility (Entitites) Most legal entities engaged in rural business and industry. CONACT Business and Industry (B&I) Guaranteed Loan Program Eligible Areas (Population) Any area outside the boundaries of a city or town of more than 50,000 population and the urbanized area contiguous and adjacent to such city or town. Eligible Purposes For real estate, buildings, equipment, supplies, working capital, and some debt refinancing. E-page 93: § 343(a)(13)(C) CONACT Funding Limits Per Request $10 million; exception may be granted by Administrator for up to $25 million. In the case of rural coop orgs that process value added agricultural commodities only, the Secretary may make an exception up to $40 million. Loan Terms, if Applicable 30 years for real estate, 15 years for machinery and equipment, and 7 years for working capital. 7 USC 1932(a) MOU dated June 23, 1997 1993 NAFTA Implementation Act Most legal entities engaged in rural business and industry North American Development Bank Guaranteed Loans RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 2 of 54 Businesses in communities with significant levels of workers adversely impacted by NAFTArelated trade as designated by NADBank and areas outside the boundaries of a city or town of more than 50,000 population and urbanized area contiguous and adjacent to such city or town. For real estate, buildings, equipment, supplies, working capital, and some debt refinancing. $10 million; exception may be granted by Administrator for up to $25 million. In the case of rural coop orgs that process value added agricultural commodities only, the Secretary may make an exception up to $40 million. $ 1.3 Billion + 1.5 Billion (stimulus) = 2.8 Billion -plus$163 MM 2008 Disaster Emerg. Supp Budget Authority $ 70.8 Million 122.5 Million $ 8.7 Million Note: available program level can change depending on fees and % of gtee for loans under Pub. L. 111-5 (2/17/2009) CFDA 10.768 2 FY2010 Available Funding 30 years for real estate, 15 years for machinery and equipment, and 7 years for working capital. $ 4.4 Million (carryover only) Assumes 1% gtee fee plus .25% annual fee $351,000 Index Regulation Citation Program 7 CFR 1942.301 (Subpart G) 3A Legislative Citation E-page 35: § 310B(c) CONACT RD Instruction 1942-G Rural Business Enterprise Grants (RBEG) Eligibility (Entitites) Public bodies, private non-profits, and Indian Tribes. [Editor QUERY – No NOFAs found other than a 2009 ARRA grant announcement] Included in Omnibus NOFA for ARRA Stimulus Monies published 7/23/2009 at 74 FR 36448 Eligible Areas (Population) Any area outside the boundaries of a city or town of more than 50,000 population and the urbanized area contiguous and adjacent to such city or town. Eligible Purposes Establish revolving loan programs, technical assistance, working capital loans, equipment, real estate, and refinancing. Funding Limits Per Request Based on funding availability, funding priority, and national goals and objectives. Loan Terms, if Applicable N/A E-page 93: § 343(a)(13)(C) CONACT 7 USC 1932(c) FY2010 Available Funding Budget Authority $35.2 Million $ 35.2 MM -plus$ 3.1 MM carryover $ 3.1 MM $ 4.1 MM stimulus carryover $ 4.1 MM $140,000 2008 Disaster carryover $ 140,000 CFDA 10.769 CFDA 10.783 (ARRA-Stimulus) See 3A above for regulations 3B Congressional RBEG mandates:  Rural Business Enterprise Grants (RBEG) Congressional mandates Tech Assist Transportation Grants Pub L. 111-8 FY2009 Omnibus Appropriations §310B(c)(2) CONACT Qualified national organization To provide tech assistance for rural transportation  Mississippi Delta Delta Regional Authority See 3 A above  Native American Tribes See 3A above Must benefit tribe(s) See 3A above Transport tech assist to tribe(s)  Native AmericanTransportation Typically $500,000 or less Page 3 of 54 $ 500,000 plus $2,100 carryover $ 300,000 carryover Typically $250,000 or less See also the Anticipatory NOFA published 10/13/2009 ( for FY 2010) at 74 FR 52445 FR Search RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable N/A $ 502,100 $ 300,000 $ 2.76 MM plus $699,000 carryover $ 3.45 Million $ 250,000 $ 250,000 Index Program Regulation Citation MOA dated Feb. 14, 2003 4 Delta Regional Authority Grant Legislative Citation Delta Regional Authority Act of 2000 E-page 144: § 382A CONACT FY 2009 Performance Report 7 USC 2009aa et seq. Eligibility (Entitites) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable Lower Mississippi region as defined by the Delta Development Act, plus Alabama FY2010 Available Funding Budget Authority $ 2.98 Million grant $ 2.98 Million $ 19.1 Million $ 4.85 MM (Mississippi River border states from southern Illinois to New Orleans, plus areas in Alabama) 42 USC 3121 note 7 CFR Part 4274 Subpart D RD Instructions 4274-D and 1951-R 5 § 1323 of the Food Security Act of 1985, Pub L. 99198 Intermediary Relending Program Private non-profit corporations; public agencies; Indian Groups; or cooperatives having the legal authority to carry out proposed loan purposes and for obtaining, giving security for, and repaying the proposed loans. (Rural Development Loan Fund) 7 USC 1932 note CFDA 10.767 see also 42 USC 9812 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 4 of 54 Areas outside the boundaries of a city or town of 25,000 or more. Business acquisitions, purchase of land, equipment, leasehold improvements, machinery; intermediaries must establish or capitalize revolving loan funds and relend to rural business for startup operating costs, working capital, feasibility studies, debt refinancing, reasonable fees and charges, educational institutions, hotels, motels, and tourist and recreational facilities. Maximum original loan to intermediary lenders is $2MM; subsequent loans will not exceed $1 MM each. The total outstanding IRP indebtedness not to exceed $15 million at any time. Maximum loans from IRP funds to ultimate recipients not to exceed $250,000 or 75% of the total cost of the ultimate recipient’s project. An administrative limitation of $750,000 per initial or subsequent application was placed on this program in FY2002. 30-year term for loans to the intermediaries. The term of a loan to the ultimate recipient is set by intermediary. Plus $ 14.4 MM of reserved mandates: $ 2.1 MM available to REAP entities $531,000 $4.1 MM available to Tribes $ 1.03 MM 8.2 MM available to Delta Miss region $ 2.07 MM Index Program 6 Regulation Citation 7 CFR 4280, Subpart A Rural Economic Development Loans and Grants (REDLG) Legislative Citation E-page 30 : §313 of the Rural Electrification Act of 1936 A Notice Inviting Preapplications for FY 2010 was published 10/14/2010 at 74 FR 52736 (it sets forth quarterly deadlines for applications with the last being 6/30/2010) FR Search 7 USC 940c Eligibility (Entitites) RUS electric and telephone borrowers and persons eligible to be RUS borrowers (not delinquent on any Federal debt or in bankruptcy proceeding) and certain electric utilities that have prepaid. § 722 of the Ag Division of the 2009 Omni Approps (GPO access not avail – link is to the enrolled version): As enrolled CFDA 10.854 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 5 of 54 Eligible Areas (Population) Any rural area for which the RUS borrower, or RUSeligible entity, elects to submit an application with priority to those of 2,500 or less. Eligible Purposes Revolving loan programs, community development, technical assistance, construction, capital improvements, purchase of machinery and equipment, and working capital. Funding Limits Per Request Loans: Grants: $740,000 Loan Terms, if Applicable Loans: Maximum 10 years with zero percent interest. (20% cost share req.) $300,000 Grants: N/A FY2010 Available Funding Budget Authority Loans $ 33.1 MM plus $ 5 MM carryover Loans Grants $10.0 MM Grants BA negated by Cushion of Credit rescission offset $4.3 MM plus $652,000 Index Program Regulation Citation Interim Final Rule published 5/28/2010 at 75 FR 30114, subsequently corrected on 7/19/2010 at 75 FR 41695 7 Legislative Citation E-page 133: § 379E CONACT 7 CFR Part 4280 Rural Microentrepreneur Assistance Program Eligibility (Entitites) Microenterprise Development Organizations Notice inviting applications published 6/3/2010 at 75 FR 31413, corrected on 7/29/2010 at 75 FR 44757 FR Search Eligible Areas (Population) Any area outside the boundaries of a city or town of more than 50,000 population and the urbanized area contiguous and adjacent to such city or town. E-page 93: § 343(a)(13)(C) CONACT Eligible Purposes Loans and grants to microenterprise dev. orgs(MDOs) as intermediaries which in turn provide loans, tech assistance and capacity building assistance to micro entrepreneurs Funding Limits Per Request Loans: $ 50,000 minimum $ 500,000 maximum Grants: $130,000 maximum Loan Terms, if Applicable FY2010 Available Funding Loans: Loans Max 20 years, fixed $ 29.3 MM rate where rate not to be less than 1% Grants $ 6.8 MM ≥15% matching fund requirement Note: ProSum differs from NOFA dated 6/3/2010 The NOFA provided as follows: 7 USC 2008s (Loans and Grants) Loans $ 36.2 MM Grants $8.9 MM Micro TA grants: $ 7.6 MM TA only grants: $ 1.3 MM RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 6 of 54 Budget Authority $ 6.19 MM $ 6.8 MM Index Program 8 Regulation Citation Legislative Citation Eligibility (Entitites) Proposed Rule published 4/16/2010 at 75 FR 20047 §9003 of the 2002 Farm Bill as amended, restated and renumbered by §9001 of Pub L. 110-246 (2008 Farm Bill) Individual, Entity, Indian tribe, unit of State or local gov't (including a corp), farm cooperative, farmer coop org, assoc of ag producers, National Lab, Institution of higher education, rural electric cooperative, public power entity, or consortium of any of those entities 7 CFR 4279 Subpart C 7 CFR 4287 Subpart D BioRefinery Assistance Program Pub L. 110-246 7 USC 8103 NOFA published 3/12/2010 at 75 FR 11840 (deadline for applications is 6/1/2010) seeking to deploy the balance of FY 2009 funds E-page 2072: 2008 Farm Bill NOFA published 5/6/2010 at 75 FR 25075 for FY 2010 funds (deadline for applications is 8/4/2010) FR Search Per Proposed Rule – majority foreign ownership not allowed CFDA 10.865 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 7 of 54 Eligible Areas (Population) Per Proposed Rule: Project must be located in any area outside the boundaries of a city or town of more than 50,000 population and the urbanized area contiguous and adjacent to such city or town. E-page 93: § 343(a)(13)(C) CONACT Eligible Purposes Funding Limits Per Request Guaranteed Biorefinery Loans for the development and construction of commercial scale biorefineries or retrofitting of existing facilities Grant assistance not to exceed 30 percent of eligible project costs [Not appropriated in FY 2010] Loan Terms, if Applicable FY2010 Available Funding Term to be lesser Grants of 20 years or 85% [Not appropriated in FY 2010] of useful life Budget Authority Gteed Loans Max loan amount $250 million Amount of guarantee will not exceed 80 percent of total eligible project costs. The percentage of guarantee ranges from 60 to 80 percent. $691 Million $ 245 Million -plus$ 112 Million Carryover $ 40 Million $803 MM total $ 285 million Total cf. (NOFA dated 5/6/2010 provides up to $150 Million in BA) Index Program 9 Regulation Citation Proposed rule published 4/16/2010 at 75 FR 20073 7 CFR 4288 NOFA published 3/12/2010 at 75 FR 11841 seeking to deploy balance of FY 2009 funds Repowering Assistance NOFA dated 5/6/2010 at 75 FR 24873 for FY 2010 funds (deadline is 7/20/2010) Legislative Citation §9004 of the 2002 Farm Bill as amended, restated and renumbered by §9001 of Pub L. 110-246 (2008 Farm Bill) Eligibility (Entitites) Biorefineries in existence when the 2008 Farm Bill was enacted Per proposed rule: majority foreign ownership excluded Pub. 110-246 7 USC 8104 E-page 2075: 2008 Farm Bill FR Search CFDA 10.866 [Pending] RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 8 of 54 Eligible Areas (Population) Per Proposed Rule: Refinery must be located in a rural area (outside a city or town with 50,000 population or otherwise in an area determined to be rural in character by the Secretary.) Eligible Purposes Repowering Assistance. Rural Repowering replaces fossil fuels used to produce heat or power to operate the biorefineries Funding Limits Per Request Lesser of $5 million or 50% of eligible costs Loan Terms, if Applicable Not applicable FY2010 Available Funding $ 35 million carryover only Cf. $8 million authorized in FY 2010 per NOFA dated 5/6/2010 Budget Authority $ 35 million Index Regulation Citation Legislative Citation Proposed rule published 4/16/2010 at 75 FR 20085 §9005 of the 2002 Farm Bill as amended, restated and renumbered by §9001 of Pub L. 110-246 (2008 Farm Bill) Program 10 7 CFR Part 4288 Subpart B NOFA published 3/12/2010 at 75 FR 11836 seeking to deploy balance of FY 2009 funds Notice of Contract Proposal published May 6, 2010 at 75 FR 24865 Pub. 110-246 7 USC 8105 E-page 2075: 2008 Farm Bill However, NOTE: Advanced Biofuel Payment Program Notice published August 18, 2010 at 75 FR 50986 allows applications from majority owned foreign entities and nonrural projects (previously excluded) Eligibility (Entitites) Producers of advanced biofuels One producer per refinery Per proposed rule majority foreign ownership would not be allowed, however, trade press indicates expectation that the Final Rule will allow foreign ownership] FR Search CFDA 10.867 [Pending] RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 9 of 54 Eligible Areas (Population) Rural as well as urban Eligible Purposes Payments to support and ensure an expanding production of advanced biofuels Funding Limits Per Request Payments to be based on: Quantity & Duration of Production; net nonrenewable energy content; plus other factors as determined by the Secretary One payment – to follow after the year is over. Amount of payment to be a function of how many eligible participants there are. For a FY, not more than five percent of the funds shall be made available to eligible producers with a refining capacity exceeding 150,000,000 gallons of Advanced Biofuel per year. Loan Terms, if Applicable Not applicable FY2010 Available Funding Budget Authority $ 55 Million -plus$ 55 MM Carryover $ 110 Million Cf. NOFA dated 5/6/2010 states $40 MM authorized as available ($25 MM remaining from FY 2009 plus $15 MM from FY 2010) FY2010 payments will be after the end of the fiscal year but once the rule is final, payments are expected to be quarterly based on actual production using a quarter of the FY allocation each quarter $ 110 Million Index Regulation Citation Program 11 7 CFR 4280 Subpart B Notice Inviting applications for renewable energy systems and energy efficiency improvements published 4/26/2010 at 75 FR 21584 Rural Energy for America (REAP) (successor to the "9006" program") Grants The NOFA inviting applications for energy audits and renewable energy development assistance grants published 5/27/2010 at 75 FR 29706 also confirms the intent of the Agency to publish a proposed rule that will revise current program to conform to 2008 Farm Bill amendments, to be followed by a final rule in FY 2011 The NOFA inviting grant applications for Renewable Energy Feasibility Studies was published 8/6/2010 at 75 FR 47525. Legislative Citation §9007 of the 2002 Farm Bill (Title IX) as amended, restated and renumbered by §9001 of the 2008 Farm Bill (Title IX) E-page 2077 in the following hyperlink: 2008 Farm Bill  Grants: §9007(c)(1)  Feasibility Studies: §9007(c)(3)  Energy Audits & Tech Assistance: §9007(a)(1) Eligibility (Entitites) For energy audits and renewable energy development assistance: units of State, tribal or local government, landgrant colleges, universities, or other institutions of higher education (including 1994 Land Grant (Tribal Colleges) and 1890 Land Grant Colleges and Historically Black Universities), rural electric cooperatives, and public power entities For feasibility studies and regular REAP: agriculture producers and rural small businesses FR Search CFDA 10.868 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 10 of 54 Eligible Areas (Population) Project must be located in any area outside the boundaries of a city or town of more than 50,000 population and the urbanized area contiguous and adjacent to such city or town. E-page 93: § 343(a)(13)(C) CONACT Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable FY2010 Available Funding Budget Authority Grants may be for: energy audits, development assistance, energy efficiency improvements, purchase renewable energy systems; fund advisory services use of grant for feasibility study $100,000 per 5/27/2010 NOFA for energy audits and renewable assistance not to exceed 25% of eligible project costs per 7 CFR 4280.110 $2,500 - $500,000 for renewable system grants $1,500 – $250,000 energy efficiency grants $-0- to $50,000 feasibility studies Not applicable Grants * $ 24.9 Million -plus$ 33 million mandatory $ 57.9* million total $ 50 million* Feasibility Studies $-0- MM -plus$ 3.0 MM Mandatory $ 3.0 *million total* $ 3.0 million * Energy Audits & Tech Assist $ 2.4 million $2.4 Million *Note – these numbers differ from the April 2010 ProSum foundation doc per edits from program areas as of August 2010 Index Program 12 Regulation Citation 7 CFR 4280 Subpart B Rural Energy for America (REAP) (successor to the "9006" program") NOSA published 4/26/2010 at 75 FR 21584 announcing a FY 2010 application window FR Search CFDA 10.868 Legislative Citation §9007 of the 2002 Farm Bill (Title IX) as amended, restated and renumbered by §9001 of the 2008 Farm Bill (Title IX) Eligibility (Entitites) Ag producers and rural small businesses E-page 2077 in the following hyperlink: 2008 Farm Bill Eligible Areas (Population) Project must be located in any area outside the boundaries of a city or town of more than 50,000 population and the urbanized area contiguous and adjacent to such city or town. Eligible Purposes Guaranteed Loans to purchase renewable energy systems, including electric output, and to make energy efficiency improvements Funding Limits Per Request FY2010 Available Funding [combined loan + grant award may not exceed 75% of project cost] Max loan gtee = 60% where loan ≥ $10 MM See: 7 CFR Sect.4280.125 (7 yrs working cap, up to 30 years for $ 105.7 MM (Assumes gtee fee of 1% plus annual fee = 0.25%) $ 21.6 MM $264.3 MM total $ 36.0 MM total Per edits received from RBS Program: $105.7 is discretionary $158.6 should be labeled as mandatory OTHER AUTHORIZED PROGRAMS: No RBS activity at this time 13 Health Care Services E-page 136: § 379G CONACT 7 USC 2008u RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Consortium of regional institutions of higher education, academic health and research institutes, and economic development entities located in the Delta region that have experience in addressing the health care issues in the region Page 11 of 54 Lower Mississippi region and Alabama To provide: Health care services, health education programs, and health care job training programs and to develop and expand public health related facilities in the Delta region To be determined N/A $ 14.4 MM -plus$ 158.6 MM Carryover real estate) Guaranteed Loans §6024 of the 2008 Farm Bill Budget Authority $ 5,000 to $ 25 million E-page 93: § 343(a)(13)(A) CONACT Gteed Loans: §9007(c)(1) Loan Terms, if Applicable Index Program 14 Regulation Citation To be determined Rural Energy Self –Sufficiency Initiative Grants 15 7 CFR 4290 Rural Business Investment Program §9009 of the 2008 Farm Bill (Title IX) 2008 Farm Bill E-page 169: Subtitle H CONACT See SBA website at: RBIP CFDA 10.860 7 CFR 1980 16 Legislative Citation RD Instructions 1980-A and E Eligibility (Entitites) Eligible Areas (Population) Grants to conduct an energy assessment, formulate a plan to reduce conventional energy use, develop & install an integrated renewable energy system Rural Communities, preferably in collaboration with university, fed or state agency, local utility or gov't entity with responsibility for water or natural resources Smaller and small enterprises primarily located in rural areas that have raised $10 MM in equity Outside a SMSA or within a community having a population of 50,000 or less 7 USC 2009cc et seq. E-page 34: § 310B CONACT Most legal entities engaged in rural business and industry. 7 USC 1932(a) Business and Industry (B&I) Direct Loan Program RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 12 of 54 Eligible Purposes Areas outside the boundaries of a city or town of more than 50,000 population and urbanized area contiguous and adjacent to such city or town. Funding Limits Per Request Loan Terms, if Applicable FY2010 Available Funding To be determined To be determined -0- Enables each Rural Business Investment Company to make developmental venture capital investments in smaller enterprises Up to 3 entities To be Determined jointly by USDA & SBA -0- For real estate, buildings, equipment, supplies, working capital, and some debt refinancing. $10 million; $20MM debentures each $1 MM grant each 30 years for real estate, 15 years for machinery and equipment, and 7 years for working capital. -0- Budget Authority Index Program Regulation Citation Legislative Citation Eligibility (Entitites) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable FY2010 Available Funding Budget Authority RURAL DEVELOPMENT COOPERATIVE SERVICES PROGRAM AUTHORITIES CONTACTS: Washington, DC: 202.690.4730; State: http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd 7 CFR Part 4284 Subparts A & F 1 Rural Cooperative Development Grant (RCDG) E-page 37: § 310(B)(e) CONACT Non-profit corporations or Institutions of Higher Learning United States in Rural Areas See NOFA dated 6/25/2010 at 75 FR 36349 FR Search To establish or operate a Center to assist individuals or entities in the startup, expansion, or operational improvement of cooperative business. This can also include training, education and research. CFDA 10.771 1A E-page 44: § 310B(i) CONACT Appropriate Technology Transfer for Rural Areas (ATTRA) National Center for Appropriate Technology (NCAT) See www.ncat.org (First USDA funding authorized in the Food Security Act of 1985) (Note: authorization is separate from RCDG) RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 13 of 54 United States Promotion of sustainable agricultural practices $225,000 N/A $ 7.9 MM 2008 Farm Bill language allows up to 3 years of funding for grantees with proven record -plusMandates and reservations listed in Rows 1A-2B Matching funds are required = 25% of total project cost; they may be other fed funds Determined with appropriation act $ 7.9 MM 1- year cooperative agreement earmark $ 2.8 MM $ 2.8 MM Index 1B Program Research on National Economic Impact of Cooperatives (RCDG Mandate) Regulation Citation Request for Proposals published 8/4/2010 at 75 FR 46904 Legislative Citation E-page 40: § 310B(e)(10) CONACT Eligibility (Entitites) Eligible Areas (Population) Qualified academic institution United States Minority Cooperatives or Minority Associations of Cooperatives. Areas outside towns having a population greater than 50,000 and any adjacent urbanized area, or, an urbanized area that is nevertheless rural in character. Independent agriculture producers, farmer and rancher cooperatives, agriculture producer groups and majority controlled producer based business groups United States FR Search Eligible Purposes Funding Limits Per Request Research on issue of determining the national economic impact of cooperative organizations. $500,000 Technical assistance to members or to other sociallydisadvantaged producers. $ 200,000 (Authorized to be appropriated) Loan Terms, if Applicable N/A FY2010 Available Funding Budget Authority $ 300,000 $ 300,000 $ 3.46 Million $ 3.46 Million CFDA 10.778 1C Small Socially Disadvantaged Producer Grant (RCDG mandate) See NOFA dated 4/28/2010 at 75 FR 22358 FR Search E-page 40: § 310B(e)(11) CONACT N/A CFDA 10.771 7 CFR Part 4284 Subpart J §231(b) of the Ag Risk Protection Act of 2000, as amended by § 6202 of the 2008 Farm Bill RD Instruction E-page 1967: 2008 Farm Bill Proposed Rule published 5/28/2010 at 75 FR 29920 2 Value-added Agricultural Market Development Producer Grants (VAPG) 4284-A and 4284-J FR Search 7 USC 1632a See 7 USC 1621 note CFDA 10.352 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 14 of 54 Planning or Working Capital to establish a value-added agricultural marketing venture $500,000 Matching funds ≥ $ requested grant amount Grant for planning studies or for working capital, but not both. No buildings or equipment to be funded. One for One match requirement. New Farm Bill language includes the addition of a streamlined process for grants under $50,000. $ 19.3 MM -plus$ 18.9 MM in carryovers $ 38.2 MM total Plus Reserved mandates listed in line 2B Index 2A Program Value-added Agricultural Market Development, Ag Marketing Resource Center Grant Regulation Citation Legislative Citation NOFA for pilot was published March 6, 2001 at 66 FR 13487 FR Search §231 of the Ag Risk Protection Act of 2000 CFDA not established 7 USC 1632a(c)(1) 2B §231(b) of the Ag Risk Protection Act of 2000, as amended by §6202 of the 2008 Farm Bill Value-added Agricultural Market Development Producer Grants (VAPG) E-page 1967: 2008 Farm Bill Eligibility (Entitites) Consortium of universities Beginning farmers or ranchers and/or; Socially disadvantaged producers Entities that propose to develop Mid-Tier Value Chains 7 USC 1621 note Eligible Areas (Population) United States Eligible Purposes Development of an electronic library of information concerning valueadded agricultural product marketing Funding Limits Per Request Ongoing funding for established center see: Loan Terms, if Applicable Up to 5% of the annual VAPG funds made available FY2010 Available Funding $ 1 million Budget Authority $ 1 million www.agmrc.org $ 386,700 -plus$ 1.5 MM carryover $ 1.9 MM for Beginning & disadvantaged farmers & ranchers $ 386,700 -plus$ 1.5 MM carryover Reservation of funds for mid tier value chain projects CFDA 10.352 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 15 of 54 $ 1.9 MM Index Program Regulation Citation 7 CFR 4284 Subparts A & G 3A Rural Business Opportunity Grants (RBOG) Legislative Citation E-page 93: § 306(a)(11) CONACT RD Instruction 4284-G Eligibility (Entitites) Public bodies, nonprofits, Indian Tribes, and cooperatives. See NOFA published 3/29/2010 at 75 FR 15406 7 USC 1926(a)(11) FR Search See 3A above for regulations Rural Business Opportunity Grants (RBOG) Congressional mandates 4 Technical assistance for business development and economic development planning. Funding Limits Per Request $250,000 per application Loan Terms, if Applicable N/A (this funding limit does not apply to Tribes or REAPs per 3/29/2010 NOFA ) Native American Tribes Mississippi Delta FY2010 Available Funding $1.5 MM -plus$ 146,000 Carryover Budget Authority $ 1.5 MM -plus$ 146,000 Carryover Cf. The 2010 NOFA states $ 7.48 MM in total funding in contrast to funding listed in ProSum dated 4/7/2010 Pub L. 111-8 FY2009 Omnibus Appropriations Congressional RBOG mandates: 7 CFR Part 25 Empowerment Zones and Enterprise Communities Any area outside the boundaries of a city or town of more than 50,000 population and the urbanized area contiguous and adjacent to such city or town.. Eligible Purposes E-page 93: § 343(a)(13)(C) CONACT CFDA 10.773 3B Eligible Areas (Population) E-page 93: § 306(a)(11) CONACT Original legislation: P.L. 103-66 107 Stat. 543 THIS PROGRAM SUNSETTED ON DECEMBER 31, 2009 26 USC 1391 See 3A See 3A above Delta Regional Authority See 3A above Communities designated by the Secretary having high poverty rates or outmigration rates. Currently no applications are being accepted; there is no expectation that additional designations will be authorized by Congress. CFDA 10.772 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 16 of 54 $ 990,000 -plus$9,000 carryover $ 32,000 carryover only Cannot exceed 30,000 population in aggregate, nor 1000 square miles Most community development and social development activities $ 999,000 $ 32,000 N/A $ 499,000 -plus$ 13,000 carryover $512,000 total $ 512,000 Index Regulation Citation Program New Program -- in the process of promulgating regulations 5 Legislative Citation E-page 136: § 379F CONACT Public Meeting held 1/26/2009 to hear comments & suggestions for implementation. See Notice published 1/21/2009 at 74 FR 3550 FR Search Grant Program for Employment Opportunities for People with Disabilities in Rural Areas Eligibility (Entitites) Non-profit organizations or consortium of same (see above) with a significant focus on serving the needs of individuals with disabilities; demonstrated knowledge and expertise in employment of [the disabled]; advising private entities on accessibility issues involving [the disabled]; expertise in removing barriers to employment for [the disabled] and self employment and entrepreneurship for people with disabilities Eligible Areas (Population) Any area outside the boundaries of a city or town of more than 50,000 population and the urbanized area contiguous and adjacent to such city or town. E-page 93: § 343(a)(13)(C) CONACT Eligible Purposes Grants May be used to expand or enhance employment opportunities for individuals with disabilities in rural areas by developing national technical assistance and education resources to assist small businesses in a rural area to recruit, hire, accommodate, and employ individuals with disabilities; and self employment and entrepreneurship opportunities for individuals with disabilities in rural areas Funding Limits Per Request TBD Loan Terms, if Applicable FY2010 Available Funding Budget Authority Grants: N/A 7 USC 2008t 6 1890 Land-Grant Institutions Rural Entrepreneurial Outreach and Development Initiative This is more accurately characterized as an initiative rather than a formal program; there are no program specific regulations NOFAs are no longer issued for this initiative; the institutions are contacted directly Section 607(b)(4) of the Rural Development Act of 1972, as amended by § 759A of the 1996 Farm Bill (P.L. 104-127) 1890 Land Grant Universities and Tuskegee University 7 USC 2204b(b) and FR Search E.O. No. 13256 (Feb. 12, 2002) CFDA 10.856 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 17 of 54 Small rural American communities that have the most economic need. Outreach to small rural communities and to develop programs that will develop future entrepreneurs and businesses in rural America. To create a working partnership between the 1890 Institutions and RBS Set by NOFA. FY 2008 limit = $115,000 Competitive cooperative agreement program with a minimum of 25 % match. S & E Availability S & E Availability Index Regulation Citation Program 7 7 CFR 4284 Subpart K Agriculture Innovation Center Legislative Citation Eligibility (Entitites) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable Authorized by §6402 of the 2002 Farm Bill Reauthorized by §6203 of the 2008 Farm Bill FY2010 Available Funding Budget Authority $ 16.5 MM -carryover- $ 16.5 MM E-page 426: 2002 Farm Bill 7 USC 1621 note N/A 8 Technical Advisory Service to Cooperatives Cooperative Marketing Act of 1926 Agricultural Cooperatives United States Agricultural Producers United States 7 USC 453 To make surveys and analyses of the accounts and business practices of cooperatives upon their request. N/A N/A S & E Availability S & E Availability N/A N/A S & E Availability S & E Availability CFDA 10.350 N/A 9 Cooperative Marketing Act of 1926 Technical Advisory Service to Producers Desiring to Form a Cooperative CFDA 10.350 7 USC 453 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 18 of 54 To confer & advise with groups of producers and make economic survey and analysis of the facts surrounding the production and marketing of the agricultural product(s) the association would handle or market. Index Regulation Citation Program N/A 10 Legislative Citation Cooperative Marketing Act of 1926 Eligibility (Entitites) Eligible Areas (Population) N/A World N/A World Cooperative Education CDFA 10.350 N/A 11 7 USC 453 Cooperative Marketing Act of 1926 International Assistance 7 USC 453 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 19 of 54 Eligible Purposes To promote the knowledge of cooperative principles and practices and to cooperate, in promoting such knowledge, with educational and marketing agencies, cooperative associations, and others. To acquire and disseminate information and findings as may be useful in the development and practice of cooperation Funding Limits Per Request Loan Terms, if Applicable FY2010 Available Funding Budget Authority N/A N/A S & E Availability S & E Availability N/A N/A Donor funding availability Donor funding availability Index Program Regulation Citation Community Development Technical Assistance Handbook 12 Legislative Citation Eligibility (Entitites) Pub. L. 92-419, Rural Development Act of 1972 Non-metropolitan communities in the 50 States including the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and, to the extent the Secretary determines it to be feasible and appropriate, the Freely Associated States and the Federated States of Micronesia. Less than 50,000 Community development plans, programs and activities No limit N/A Non-metropolitan communities Less than 50,000 Community development plans, programs and activities No limit N/A Provide Technical Assistance to rural communities 7 USC 2204b 13 Coordination within the Executive Branch for community development Community Development Technical Assistance Handbook Pub. L. 92-419, Rural Development Act of 1972 (7 U.S.C. 2204b) RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 20 of 54 Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable FY2010 Available Funding Budget Authority Index Program Regulation Citation 14 Legislative Citation E-page124: § 378 CONACT 7 USC 2008m [§ 6019 of the 2008 Farm Bill mandates that the Secretary continue the NRDP. The NRDP was originally an executive initiative funded by S&E] National Rural Development Partnership CFDA 10.353 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Eligibility (Entitites) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Eligible SRDCs must meet the following requirements: The 50 States including the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and, to the extent the Secretary determines it to be feasible and appropriate, the Freely Associated States and the Federated States of Micronesia. As specified in the 2002 Farm Bill, upon entering into a recognition agreement with the USDA, the SRDC must: Recognition by the Secretary does not guarantee that a SRDC will automatically receive funding from the USDA or any other Federal agency, but will enable Federal agencies to make grants, gifts, contributions, provide technical assistance, or enter into contracts or cooperative agreements with the SRDC, in addition to making the SRDC automatically a part of the recomprised National Rural Development Partnership 1) Be composed of representatives of Federal, State, local and tribal governments, nonprofit organizations, regional organizations, the private sector, and other entities committed to rural advancement; 2) Operate with a nonpartisan and nondiscriminatory membership that is broad and representative of the economic, social, and political diversity of the state; Page 21 of 54 1) Facilitate collaboration among federal, State, local,, and tribal governments and the private and nonprofit sectors in the planning and implementation of programs and policies that have an impact on rural areas of the State 2) Monitor, report, and comment on policies and programs that address, or fail to address, the needs of the rural areas of the State; . Loan Terms, if Applicable N/A FY2010 Available Funding Budget Authority Index Program Regulation Citation Legislative Citation Eligibility (Entitites) 3) Have a structure such that the membership is responsible for the governance and operations of the SRDC; and 14 (cont.) National Rural Development Partnership (continued) 4) Provide matching funds, or in-kind goods or services, to support the activities of the SRDC, as more fully described below. Eligible Areas (Population) Eligible Purposes 3) In conjunction with the NRDCC, facilitate the development of strategies to reduce or eliminate conflicting or duplicative administrative or regulatory requirements of Federal, State, local, and tribal governments; 4) Provide to the NRDCC an annual plan with goals and performance measures; and 5) Submit to the NRDCC an annual report on the progress of the SRDC in meeting the goals and measures established in the annual plan RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 22 of 54 Funding Limits Per Request Loan Terms, if Applicable FY2010 Available Funding Budget Authority HOUSING PROGRAMS Index Program Regulation Citation Legislative Citation Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable FY 2010 Available Funding Budget Authority NOTE: ON MARCH 4, 2010 at 75 FR 9867 RURAL HOUSING PUBLISHED A NOTICE SAYING THAT NOFA PUBLICATIONs WOULD BE DISCONTINUED FOR CERTAIN (UNIDENTIFIED) PROGRAMS RURAL DEVELOPMENT COMMUNITY FACILITIES PROGRAM AUTHORITIES CONTACTS: Washington, DC: 202.690.1533; State: http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 23 of 54 Index Program 1 Regulation Citation 7 CFR 1942 Legislative Citation E-page 10: § 306(a)(1) CONACT RD Instruction 1942-A Community Facilities Direct Loan Program RD Administrative Announcement (AN) No. 4356 applicable to 7 CFR 1942-A, 3570-B and 3575-A (Definition of Rural and Rural Area for Community Facilities Loans and Grants) Eligibility (Entities) Eligible Areas (Population) Public bodies, nonprofits, and Federally recognized Indian tribes Rural Areas with a population up to 20,000 E-page 93: § 343(a)(13)(C) CONACT Eligible Purposes Funding Limits Per Request Funds may be used to construct, enlarge, or improve community facilities for health care, public safety, and public services Based on project cost and availability of funds. Loan Terms, if Applicable The maximum loan term is lesser of 40 years, state statute or regulatory limit, or the useful life of the facility FY 2010 Available Funding Budget Authority $881.6 Million plus $931.8 Million Stimulus plus $609.6 Million in various disaster supps. 7 USC 1926(a)(1) Included in Omnibus NOFA for ARRA Stimulus Monies published 7/23/2009 at 74 FR 36448 $2.42 Billion Total FR Search CFDA 10.776 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 24 of 54 $32.1 Million Total Index Program Regulation Citation Legislative Citation Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable FY 2010 Available Funding Budget Authority $265.5 Million 7 CFR 3575 2 RD Instruction 3575-A Community Facilities Guaranteed Loan Program Rural Areas with a population up to 20,000 Funds may be used to construct, enlarge, or improve community facilities for health care, public safety, and public services Based on project cost and availability of funds. Funds may be used to construct, enlarge, or improve community facilities for health care, public safety, and public services Up to 75% of eligible project cost (based on need and funding availability) 7 USC 1926(a)(1) RD Instruction 3570-B Community Facilities Grant Program Public bodies, nonprofits, and Federally recognized Indian tribes CFDA 10.776 7 CFR 3570 3 E-page 10: § 306(a)(1) CONACT E-page 16: § 306 (a)(19) CONACT Public bodies, nonprofits, and Federally recognized Indian tribes Rural Areas with a population up to 20,000 7 USC 1926(a)(19) Maximum term is Terms are set by guaranteed lender, plus $88.4 Million in various disaster supps. The maximum loan term is lesser of 40 years, state statute or regulatory limit, or the useful life of the facility $353.9 Million Total N/A $23.3 Million plus $71.1 Million Stimulus plus $16.36 Million in various disaster carryover supps CFDA 10.776 $110.8 Million Total 4 Rural Community Development Initiative Grant Program (RCDI) NOFAs RCAP earmark The most recent NOFA was published 6/26/2009 at 74 FR 30510 (FY2009) FY2009 Approp P.L. 111-8 RCAP earmark under §306(a)(19) CONACTPage H1684 Congressional Record 2/23/2009 FR Search $11.4 Million Total Public bodies, for profits, private nonprofits, and Indian Tribes. Areas outside the boundaries of a city of 50,000 or more and its immediately adjacent urbanized area . CFDA 10.446 To build capacity and provide technical assistance to undertake projects in areas of housing, community facilities, or community and economic development $50,000-$300,000 Matching fund requirement equal to amount of grant N/A $6.26 Million plus $6.67 Million “carryover” which is now gone as of 8/16/2010 $12.9 Million Total RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 25 of 54 $110.8 Million Total $12.9 Million Total Index Program 5 Rural Coop Home Based Health Care Demo 6 Tribal College Grant Program Regulation Citation Legislative Citation The most recent NOFA was published 12/15/03 at 68 FR 69649 FR Search The Home Care demo pilot first appeared as a $1MM earmark within RCDI for FY2003. RCDI is itself an earmark within RCAP CFDA 10.446 P.L. 108-7 117 Stat. 27 RD Instruction 3570-B E-page 19: § 306 (a) (25) CONACT 7 CFR 3570 Subpart B Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable FY 2010 Available Funding $327,227 Carryover only 31 Tribal Colleges under the Equity in Education Act of 1994 31 Tribal Colleges under the Equity & Education Act of 1994 Eligible CF projects for Tribal Colleges which include schools, education equipment, libraries, and dorms $250,000 per land grant institution (up to 95% of project cost) N/A Budget Authority $327,227 Carryover $3.97 Million plus $350,000 Carryover 7 USC 1926(a)(25) RD Administrative Announcement (AN) No. 4356 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Application deadline was June 1, 2010 – funds have been allocated to the states Page 26 of 54 $4.32 Million Total $4.32 Million Total Index Program Regulation Citation RD Instruction 3570-B 7 Economic Impact Initiative Grant Program RD Administrative Announcement (AN) No. 4356 Legislative Citation FY2010 Approp Pub. L. 111-80 RCAP earmark under §306(a)(19) §306E(d)(1) Eligibility (Entities) Eligible Areas (Population) Public bodies, nonprofits, and Federally recognized Indian tribes Rural areas with a population up to 20,000 that have a not-employed rate greater than 19.5% Eligible Purposes Funding Limits Per Request Funds may be used to construct, enlarge, or improve community facilities for health care, public safety, and public service. Up to 75% of eligible project cost (based on need and funding availability) Loan Terms, if Applicable N/A FY 2010 Available Funding Budget Authority $13.9 Million plus $2.5 Million Carryover CONACT $16.4 Million Total $16.4 Million Total $69.5 Million $18.9 Million plus plus $1.4 Million 2007 Disaster Carryover $382,155 $72.35 Million Total $19.8 Million Total Plus: $ 1.45 MM Credit Sales $ 556,000 RURAL DEVELOPMENT MULTI-FAMILY HOUSING PROGRAM AUTHORITIES CONTACTS: Washington, DC: 202.690.1533; State: http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd 1 7 CFR 3560 Rural Rental Housing Direct Loan Program § 515 of the Housing Act of 1949 See NOFA dated 4/14/2010 at 75 FR 19348 for new construction set aside info Individuals, trusts, associations, partnerships, limited partnerships, Forprofit organizations, nonprofit organizations, limited equity cooperatives, Native American tribes, public agencies Eligible rural communities of populations of 20,000 or less. 42 USC 1485 FR Search New construction of multi-family rental housing for very-low, low, and moderate income families, the elderly, and persons with disabilities. Funds may also be used for rehabilitation of existing Section 515 units and to facilitate sales of 515 properties in receivership $1 million in FY 2010 Repair funds: No maximum; availability based on need and funding levels. Maximum of 30 years with a 50year amortization. [ $ 18.9 MM of total is set aside for new construction] CFDA 10.415 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 27 of 54 Index Program Regulation Citation 7 CFR 3565 2 Legislative Citation Eligibility (Entities) Eligible Areas (Population) § 538 of the Housing Act of 1949 Individuals, nonprofit organizations, public agencies, American Indian tribes, forprofit corporations, partnerships Eligible rural communities of 20,000 population or less. Proposed Rule published 1/29/2010 at 75 FR 4707 proposes one gtee to cover construction plus permanent Final Rule is expected to be published September 2010 Rural Rental Housing Guaranteed Loan Program 42 USC 1490p-2 Notice of $10MM demo for continuous gtee published 5/10/2010 at 75 FR 25829 – corrected at 75 FR 33573 NOFA for FY 2010 published 2/26/2010 at 75 FR 8896 FR Search CFDA 10.438 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 28 of 54 Eligible Purposes Development of affordable rental housing for low to moderate-income households with incomes up to 115 percent of the area median income. Funding Limits Per Request No maximum. Loan Terms, if Applicable Minimum 25 year term; up to 40year amortization. Rates must be fixed and are negotiated between lender and borrower, within the RHS maximum FY 2010 Available Funding Budget Authority $129.1 Million $1.5 Million plus $737,032 No Year (subject to adjustment) plus $142,000 plus $6.2 Million 2008 Disaster Emer. Supp Carryover plus $1.2 Million Index Program 3 Regulation Citation 7 CFR 3560 Legislative Citation Eligibility (Entities) Eligible Areas (Population) §§ 514 and 516 of the Housing Act of 1949 Loans are made to farmers, associations of farmers, family farm corporations, Native American tribes, nonprofit organizations, limited partnerships with a nonprofit general partner, public agencies, associations of farmworkers. Grants are made to farmworker associations, nonprofit organizations, Indian tribes, and public agencies. No population limit. Farm Labor Housing funds may be used in urban areas to house nearby farm workers. See NOFA published May 10, 2010 at 75 FR 25833, as corrected per notice published 6/17/2010 at 75 FR 34421 FR Search Farm Labor Housing Loan and Grant Program 42 USC 1484 42 USC 1486 To build affordable rental housing and related facilities for both migrant and year-round farm workers. Units may be off-farm housing available to eligible farm workers of any farming operation or on-farm housing for farm employees. Funds may also be used for repair of existing program units. Funding Limits Per Request New construction: $3 million total loan and grant request for FY 2010 . Funding limits are announced annually in the Notice of Funds Availability (NOFA). Repair funds: No maximum. Availability based on need and funding levels. Loan Terms, if Applicable Loans are 33 years at 1 percent interest. Grants may cover up to 90 percent of development costs. FY 2010 Available Funding $29.3 Million $10.6 Million Grants: $9.9 Million Natural Disaster Direct Loans $1.5 Million (Carryover) 2003/2004 Hurricane Supp Grants $1.1 Million (Carryover) NOTE: NOFA published 5/10/2010 provides a different breakdown than the ProSum dated 4/7/2010 Page 29 of 54 Budget Authority Loans: Processing Workers Housing Grants $3.2 Million (Carryover) CFDA 10.405 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Eligible Purposes $9.9 Million $536,000 $1.1 Million $3.2 Million Index Program Regulation Citation 7 CFR 3560 4 Rental Assistance FR Search Legislative Citation § 521 of the Housing Act of 1949 See also §502 of the Housing Act of 1949 (Single Family) Eligibility (Entities) Eligible Areas (Population) Available with the Section 515 Rural Rental Housing Program and the Section 514 and Section 516 Farm Labor Housing Program Eligible Purposes Funding Limits Per Request Provides a projectbased rental subsidy for qualifying tenants. Applicants may request Section 521 Rental Assistance with their application to develop Rural Rental Housing units or offfarm Farm Labor Housing units. Tenant-based rental assistance only Voucher amount may not exceed comparable market rent Loan Terms, if Applicable FY 2010 Available Funding Budget Authority $ 969 Million $969 Million -plus$5.4 MM in rental -plusassistance related to sections 514, $5.4 MM 515, 516 42 USC 1490a CFDA 10.427 See NOFA published 4/14/2010 at 75 FR 19353 – as corrected by Notice published 8/25/2010 at 75 FR 52303 5 FR Search Multifamily Voucher Demo Program See “Rural Development Voucher Program Guide” available via State Offices Earmark under FY 2010 Ag Approp Pub.L. 111-80 (10/21/2009) Low Income families residing in 515 properties where the loan is prepaid after 9/30/05 See Section 515 § 542 of the Housing Act of 1949 (w/out regard to § 542(b)) Cannot be used when other subsidies are present Cannot be used in combination with RD rental assistance (See Line #3) 42 USC 1471 et seq Applicable HUD regs at 24 CFR, Vol. 4, Part 982 See also interagency agreement dated March 1, 2006 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 30 of 54 $ 16.4 MM -plus$8.2 MM Carryover $ 24.6 Subtotal Plus $1.9 MM 2008 Disaster Supp $26.5 MM Total $ 26.5 MM Index Program Regulation Citation 6 7 CFR 3560 Legislative Citation Earmark under FY 2010 Ag Approp Pub.L. 111-80 (10/21/2009) Eligibility (Entities) Eligible Areas (Population) Owners of property financed under Section 515 Debt service forbearance – the savings to be invested in physical rehab of 515 properties 7 CFR 3015 (grants) Multifamily Demo for Preservation and Revitalization/ Restructuring 515 Properties Eligible Purposes Funding Limits Per Request Up to $5,000 grant Loan Terms, if Applicable Up to 20 year debt deferral on 1% loans § 542 of the Housing Act of 1949 FY 2010 Available Funding Budget Authority 0% Loans $30.9 MM plus $ 2.6 MM Carryover 2008 disaster supp $ 33.5 MM $ 1 million nd Soft 2 loans See Section 515 $8.4 MM plus 3.7 MM 2008 disaster supp $ 8.8 million Grants $ 8 MM plus $159,711 2008 disaster 7 Multifamily Preservation Demo Revolving Loan Fund NOFA is expected to be published in September 2010 Earmark under FY 2010 Ag Approp Pub.L. 111-80 (10/21/2009) Qualified financial intermediaries See Section 515 See NOFA published Aug. 19, 2008 at 73 FR 48368 FR Search RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 31 of 54 Loans to financial intermediaries for on lending to Section 515 owners for the preservation and revitalization of 515 properties $15 million cap on total MPDRL indebtedness per intermediary 1 percent cap; 30 years $8.16 MM $ 6.4 MM plus 14.5 MM carryover $ 20.9 MM total $ 5.8 MM Index Program 8 Housing Preservation Grants Regulation Citation Legislative Citation RD Instruction 1944-N § 533 of the Housing Act of 1949 See NOFA published 4/27/2010 at 75 FR 22096 as corrected 5/21/2010 at 75 FR 28542 42 USC 1490m Eligibility (Entities) Eligible Areas (Population) Nonprofits, local governments, and Native American tribes. Rural areas of 20,000 population or less. Eligible Purposes Repair or renovate deteriorating homes and rental properties for very-low and low income residents. Funding Limits Per Request Loan Terms, if Applicable Based on funding levels and State allocation. FY 2010 Available Funding Budget Authority $ 9.4 MM -plus$ 747,000 carryover $ 10.1 MM of which $ 75,000 is set aside for Rural Econ Area Partnership Zones FR Search CFDA 10.433 NOFAs 9 Processing Labor Demo Housing Grants See NOFA published Feb. 12, 2001 at 66 FR 9820 Earmark in the FY2001 Appropriations Act, P.L. 106-387 See NOFA published April 6, 2004 at 69 FR 18040 Earmark in the FY 2004 Appropriations Act, P.L. 108-199 FY 2001 processing worker housing FY 2004 processing worker housing Private and public nonprofit agencies, nonprofit cooperatives, state and local governments and tribal organizations (same for both NOFAs) FY2001 Demonstration was limited to Arkansas and Mississippi FY2004 Demonstration project was limited to AK, MS, UT and WI (not limited to rural areas) Development of affordable rental housing for agriculture, aquaculture, or seafood processing and/or fishery workers. Processing workers are not eligible to live in Farm Labor Housing (same for both NOFAs) RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 32 of 54 FY2001$1.5 Million per request FY2004$1.0 Million per request Maximum 75% grant of total development cost Maximum 80% of total development cost $3.17 MM carryover $ 3.17 MM Index Program Regulation Citation Note: Per the USDA Delegation of Authority published July 23, 2010 this grant program is administered by the Director, Office of Advocacy and Outreach 75 FR 43390 10 Legislative Citation Eligibility (Entities) Eligible Areas (Population) Section 14204 of the 2008 Farm Bill Funding Limits Per Request Loan Terms, if Applicable FY 2010 Available Funding $ 4 Million Labor Force Grants (Section 14204 of 2008 Farm Bill) RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Eligible Purposes Page 33 of 54 Budget Authority $ 4 Million Index Program Regulation Citation Legislative Citation Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable FY 2010 Available Funding Budget Authority RURAL DEVELOPMENT SINGLE FAMILY HOUSING PROGRAM AUTHORITIES CONTACTS: Washington, DC: 202.690.1533; State: http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd 1 7 CFR Part 3550 § 502 of the Housing Act of 1949 Very-low & low income households Eligible rural areas, cities, and towns of less than 20,000 population. Proposed Rule published 3/5/2010 at 75 FR 10194 Section 502 Direct Loans Included in Omnibus NOFA for ARRA Stimulus Monies published 7/23/2009 at 74 FR 36448 Also, funds may be used for rehabilitation of existing Section 502 units and to facilitate sales of 502 properties in receivership 42 USC 1472 CFDA 10.410 and 10.445 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Purchase, build or improve modest home for personal residence. Also, 100% financing. No down payment required. Up to 100% of the market value of the home (plus eligible closing costs) not to exceed the Area Loan Limit. . Presently 4.25% (Sept 2010) for $ 1.2 Billion 33 (low income) Annual Approp + 1.3 Billion or 38 years VL ARRA Stimulus income). Payment Subsidy + 910 MM Various typically reduces disaster & emerg the effective interest rate – to supp carryovers as low as 1 % for (Sept program very-low income edits struck out the $910MM) households. $ 47.0 MM $ 33.0 MM -plus$ 10 MM Credit Sales $ 3.3 Billion Total Page 34 of 54 $ 40.7 MM $ 120.7 MM Total Index Program 2 Regulation Citation 7 CFR Part 1980 Legislative Citation § 502(h) of the Housing Act of 1949 Eligibility (Entities) Eligible Areas (Population) Low and moderate income households Eligible rural areas, cities and towns of less than 20,000 population. Loan Terms, if Applicable Purchase new or existing SF residence. For purchase transactions up to 103.6269% loan-tovalue is allowed if the entire 3.5% guarantee fee is financed. Interest rate is negotiated with approved lender but is capped at the higher of the published VA rate with no points or the Fannie Mae 30year fixed rate Actual/Actual for a 90 day execution plus 60 basis points rounded up to the nearest quarter of one percent. A 3.5% guarantee fee for purchase transactions is charged the lender (may be passed to the borrower) RD Instruction 1980-D Section 502 Guaranteed Loans Funding Limits Per Request No mortgage insurance required. Final Rule published 8/26/2010 at 75 FR 52429 Included in Omnibus NOFA for ARRA Stimulus Monies published 7/23/2009 at 74 FR 36448 Notice dated 11/2/2009 at 74 FR 56571 prioritizes $400 MM for refinancing of existing borrowers – both direct & gteed – with gteed loans Eligible Purposes Refinance transactions are permissible in limited cases Guarantee fee for refinance transactions will increase to 2.25% in FY 2011 42 USC 1472(h) For refinance transactions up to 100.5% loan-to-value is allowed if the .5% (FY 2010) guarantee fee is financed. 2.25% guarantee fee for refinance transactions in FY 2011 For refinance transactions up to 102.3% loan-to-value is allowed if the 2.25% guarantee fee is financed in FY 2011 This is a 30 year fixed rate program FY 2010 Available Funding Purchase $12.3 Billion -plus$1.0 Billion Carryover Stimulus $ 13.3. Billion $ 200.6 Million -plus$63.8 million carryover Stimulus $ 264 Million -plus$ 767 MM in various disaster & emergency supp $ 4.5 Million $ 11.1 Million $ 14.3 Billion Total $ 15.8 Million Total $12 Billion Purchase Plus $200 Million Refinance Plus $2 Billion in various disaster & emergency supps and carryovers including ARRA) Page 35 of 54 $ 192 Million ($178 Million) Refinance (Sept 2010 program edits read as follows: RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Budget Authority Index 3 Regulation Citation Program Section 502 Payment Assistance 7 CFR Part 3550.68 7 CFR Part 3550 Subpart C 4 Section 504 Housing Repair Direct Loans Legislative Citation Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable § 502(c)(5)(D) of the Housing Act of 1949 42 USC 1472 § 504 of the Housing Act of 1949 FY 2010 Available Funding Budget Authority $ 6 million Very-low income households Eligible rural areas, cities and towns of less than 20,000 population. Make general repairs and improvements to modest residence or remove health and safety hazards. $20,000 Eligible rural areas, cities and towns of less than 20,000 population. Make essential repairs and improvements to remove health & safety hazards or to make property accessible and useable for household members with disabilities. Lifetime maximum of $7,500 Proposed rule under development that amends budget requirement – clearance expected in Spring of 2011 1% interest, up to 20 years. Security interest required for loans over $7,500. $ 6 million $ 34.4 MM -plus $41.4 MM in various hurricane and other emergency supp (carryovers) $ 4.4 MM - Plus $ 5.3 MM 42 USC 1474 . CFDA 10.417 and 10.444 7 CFR Part 3550 Subpart C 5 § 504 of the Housing Act of 1949 Elderly (age 62 or older) Very-low income households. Proposed Rule published 3/5/2010 at 75 FR 10194 Section 504 Housing Repair Grants Proposed rule under development that amends budget requirement – clearance expected in Spring of 2011 42 USC 1474 CFDA 10.417 and 10.444 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 36 of 54 Grant – recoverable if property sold within 3 years. $ 31.6 MM -plus$16.4 MM in various hurricane & other emergency supp (carryovers) $ 31.6 MM $ 16.4 MM Index 6 Program Section 509 Construction Defect Compensation 7 Regulation Citation RD Instruction 1924-F Legislative Citation Eligibility (Entities) § 509 of the Housing Act of 1949 Section 502 Direct loan borrowers who built new homes and file a claim within 18 months of final inspection. Eligible rural areas, cities and towns of less than 20,000 population. Compensate Section 502 borrower for structural defects which the contractor will not correct. State, political subdivision, public non-profit or private non-profit. Eligible rural areas, cities and towns of less than 20,000 population. Provide technical Grant amounts are assistance to low- and limited to the amount very low-income of previous grant. families who are building homes in rural areas by the selfhelp method. CFDA 10.442 42 USC 1479(c) RD Instruction 1944-I § 523 of the Housing Act of 1949 See Proposed Rule published 5/18/2007 at 72 FR 27988 FR Search Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Government provides direct assistance to cover the costs of correcting structural defects. Loan Terms, if Applicable See Notice of Intent to hold public forum published 2/2/2010 at 75 FR 5281; extension of deadline to 7/15/2010 for written comments was published 4/19/2010 at 75 FR 20325 Budget Authority Grant $ 578,628 Two year grant cycle. $ 576, 628 $ 41.8 Million -plus$ 14.5 MM (carryover) NOTE: No final rule found but: Section 523 Mutual and Self-Help Grants &Technical Assistance FY 2010 Available Funding $ 56.3 MM Total $ 56. 3 MM $ 4.97 MM (negative subsidy) 42 USC 1490c CFDA 10.420 RD Instruction 444.8 8 § 523 of the Housing Act of 1949 Section 523 Self-Help Site Loans CFDA 10.411 Public or private non-profit organizations. Eligible rural areas, cities and towns of less than 20,000 population. 42 USC 1490c(b) RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 37 of 54 To buy and develop building sites, including construction of roads, streets, and utilities. (Limited to mutual self-help participants.) Loans require approval of National Office. 3%, 2 yrs. Index Program Regulation Citation RD Instruction 444.8 9 Legislative Citation § 524 of the Housing Act of 1949 Section 524 Site Development Loans 10 CFDA 10.411 42 USC 1490d RD Instruction 1944-K § 525 of the Housing Act of 1949 CFDA 10.441 42 USC 1490e Section 525 Technical & Supervisory Assistance RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable Private or public non-profit organizations Eligible rural areas, cities and towns of less than 20,000 population. To buy and develop building sites, including construction of roads, streets, and utilities for any low- or moderate-income family. Loans require approval of National Office. Market rate, 2 yrs. Public & private non-profits, agencies, institutions, Indian tribes and other associations Eligible rural areas, cities and towns of less than 20,000 population. To help low-income rural residents obtain or maintain adequate housing and provide counseling and outreach to reduce delinquency for applicants and RD borrowers. Up to $100,000 Grant, 2 yrs. Page 38 of 54 FY 2010 Available Funding $ 5.0 MM Budget Authority (negative subsidy) UTILITIES PROGRAMS Index Program Regulation Citation Legislative Citation Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request FY 2010 Available Funding Loan Terms, if Applicable RURAL DEVELOPMENT ELECTRIC PROGRAM AUTHORITIES CONTACTS: Washington, DC: 202.720.9540; State: http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd 1 7 CFR 1710 7 CFR 1714 7 CFR 1717 E page 16: §305(c)(1) of the Rural Electrification Act 1936, As Amended, 7 USC 901 et. seq. (RE Act) Hardship Loan Program Corporations, States, Territories, and Subdivisions and Agencies, Municipalities, People’s Utility Districts, and Distribution Cooperatives, nonprofit and limiteddividend, Or Mutual Associations CFDA 10.850 2 7 CFR 1710 7 CFR 1714 Municipal Rate Loan Program 7 CFR 1717 CFDA 10.850 7 USC 935(c)(2) RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Electric distribution and sub-transmission facilities Not Applicable Electric distribution and sub-transmission facilities Not Applicable Up to 35 years, based on the expected useful life of the facilities financed by the loan $ 100 million E-page 8: RuralElectrificationAct E-page 93: § 343(a)(13)(C) CONACT 7 USC 935(c)(1) E page 16: §305(c)(2 RE Act Service to rural areas where rural area = area outside the boundaries of a city or town of more than 20,000 population and the urbanized area contiguous and adjacent to such city or town. Corporations, States, Territories, and Subdivisions and Agencies, Municipalities, People’s Utility Districts, and Cooperatives, nonprofit and limiteddividend, Or Mutual Associations Service to rural areas where rural area = area outside the boundaries of a city or town of more than 20,000 population and the urbanized area contiguous and adjacent to such city or town. E-page 8: RuralElectrificationAct E-page 93: § 343(a)(13)(C) CONACT Page 39 of 54 Up to 35 years, based on the expected useful life of the facilities financed by the loan -0- Budget Authority Index Program 3 Regulation Citation 7 CFR 1710 7 CFR 1714 Legislative Citation E-page 4: §2(a) RE Act 7 CFR 1717 Treasury Rate Loans Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Corporations, States, Territories, and Subdivisions and Agencies, Municipalities, People’s Utility Districts, and Cooperatives, nonprofit and limiteddividend, Or Mutual Associations Service to rural areas where rural area = area outside the boundaries of a city or town of more than 20,000 population and the urbanized area contiguous and adjacent to such city or town. Electric distribution and sub-transmission facilities CFDA 10.850 7 CFR 1710 E page 21: §306 RE Act 7 CFR 1714 FFB Guaranteed Loan Program 7 CFR 1717 CFDA 10.850 7 USC 936 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Not Applicable FY 2010 Available Funding Loan Terms, if Applicable Up to 35 years, based on the expected useful life of the facilities financed by the loan Budget Authority -0- E-page 8: RuralElectrificationAct E-page 93: § 343(a)(13)(C) CONACT 7 USC 902 4 Funding Limits Per Request Corporations, States, Territories, and Subdivisions and Agencies, Municipalities, People’s Utility Districts, and Cooperatives, nonprofit and limiteddividend, Or Mutual Associations Service to rural areas where rural area = area outside the boundaries of a city or town of more than 20,000 population and the urbanized area contiguous and adjacent to such city or town. E-page 8: RuralElectrificationAct E-page 93: § 343(a)(13)(C) CONACT Page 40 of 54 Electric distribution, Not Applicable sub-transmission, bulk transmission, and generation facilities, energy efficiency investments and renewable energy systems Up to 35 years, based on the expected useful life of the facilities financed by the loan $6.5 Billion Negative subsidy Index Program Regulation Citation Draft Workplan for OMB under program review 5 Legislative Citation E page 34: §317 RE Act Renewable Loan Program 7 USC 940g 6 7 CFR 1720 Bond and Note Guarantee Program for publicly issued securities E page 30: §313A RE Act Final Rule published 7/22/2010 at 75 FR 42571 Eligibility (Entities) Corporations, States, Territories, and Subdivisions and Agencies, Municipalities, People’s Utility Districts, and Cooperatives, nonprofit and limiteddividend, Or Mutual Associations Bank or other lending institution organized as a private, not-for-profit coop or otherwise non profit Eligible Areas (Population) No rural restriction N/A 7 USC 940c-1 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 41 of 54 Eligible Purposes Funding Limits Per Request For electric generation from renewable resources for resale Proceeds to be used to make loans to electric or telephone borrowers for eligible purposes under Part 1720 or to refinance bonds or notes previously issued for such purposes Loan Terms, if Applicable FY 2010 Available Funding Budget Authority Tax-exempt equivalent muni rate None 20 years $500 Million In practice, this program relates to FFB loans only. The guarantee fee paid by issuer funds the RBS RDLG program Negative subsidy Index Program Regulation Citation Legislative Citation Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable FY 2010 Available Funding Budget Authority 7 CFR 1709 Most recent NOFA was published August 9, 2010 at 75 FR 47756 High Energy Cost Grants & Loans Programs  High Energy Cost Grants 7  Denali Commission Grants  Grants to State Revolving Funds for Bulk Fuel Purchases E page 9: Section 19 RE Act FR Search CFDA 10.859 7 USC 918a(1) Persons, For Profit and Not For Profit Businesses, State & Local Governments, and FederallyRecognized Indian Tribes & Tribal entities Memoranda of Understanding on file CFDA 10.858 7 USC 918a(2) Denali Commission CFDA 10.857 7 USC 918a(3) State Entity existing as of 11/9/2000 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Extremely high energy cost communities – where avg. residential expenditure is 275% of national average Extremely high energy cost communities in Alaska Rural areas where fuel cannot be shipped by surface means Page 42 of 54 Energy distribution, transmission and energy generation facilities (including energy efficiency & renewable energy) serving eligible communities Energy distribution, transmission and energy generation facilities (including energy efficiency & renewable energy) serving eligible communities Fuel Purchasing Revolving Fund Minimum Per Grant $75,000 Maximum Per Grant $5 Million Not Applicable $ 17.5 MM Admin costs may not exceed 4% Not Applicable Not Applicable Maximum Per Grant $5 Million Not Applicable $ 17.5 MM Index Program Regulation Citation Legislative Citation Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable RURAL DEVELOPMENT WATER AND ENVIRONMENTAL PROGRAM AUTHORITIES CONTACTS: Washington, DC: 202.720.9540; State: http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 43 of 54 FY 2010 Available Funding Budget Authority Index Program Regulation Citation Legislative Citation 1 7 CFR Part 1780 E-page 10: § 306 CONACT Eligibility (Entities) Public body, not-forprofit organization, and Indian tribes Eligible Areas (Population) Rural areas and towns with a population of 10,000 or less. E-page 93: § 343(a)(13)(C) CONACT Included in Omnibus NOFA for ARRA Stimulus Monies published 7/23/2009 at 74 FR 36448 FR Search Water and Waste Disposal Direct Loans and Grants Eligible Purposes Construct and improve water and waste facilities Funding Limits Per Request None Loan Terms, if Applicable 40 years FY 2010 Available Funding Budget Authority Loans $ 1 Billion -plus$ 759 Million carryover -plus$ 3.4 Billion (1.27 Billion – after reprogramming) Stimulus carryover -plus$ 62 Million (3.6 million only – the rest was rescinded by the Jobs Bill, PL 111226, Aug 10, 2010) Disaster carryover $ 3 Billion Loan Total $ 77 Million $ 57 Million $ 255 Million ( 96 Million) $ 4.6 Million $227 Million (273 Million) Grants CFDA 10.760 $ 352 Million -plus$ 127 Million carryover -plus$ 500.5 Million (544.4 million) Stimulus carryover -plus$ 6.7Million Disaster Carryovers 7 USC 1926(a) $ 986.1 Million Grant Total RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 44 of 54 $ 986.1 Million Index 2 Program Water and Waste Disposal Guaranteed Loans 3 Regulation Citation Legislative Citation 7 CFR 1779 E-page 10: § 306 CONACT CFDA 10.760 7 USC 1926(a) 7 CFR 1778 E-page 20: § 306A Eligibility (Entities) CFDA 10.763 Eligible Purposes Funding Limits Per Request Public body, not-forprofit organization, and Indian tribes Rural areas and towns with a population of 10,000 or less. Construct and improve water and waste facilities Public body, not-forprofit organization, and Indian tribes Rural areas and towns with a population of 10,000 or less with acute water problems; up to 50% of funds targeted to areas 3,000 and under. Improve quantity or $500,000 to mitigate a quality of water supply significant decline in water quality; $150,000 where used for op & maintenance type items CONACT Emergency Community Water Assistance Grants (ECWAG) Eligible Areas (Population) None Loan Terms, if Applicable FY 2010 Available Funding Budget Authority 40 years $ 75 Million Negative subsidy N/A $ 13 Million -plus$ 5.2 Million (Unobligated funds were rescinded by Jobs Bill PL 111226, Aug 10, 2010) Emergency Supp carryovers 7 USC 1926a $ 18.1 MM total $ 18.1 MM Total 7 CFR 1783 4 Water and Wastewater Revolving Fund Grants E-page 11 §306(a)(2)(B) See Notice published November 5, 2008 at CONACT 73 FR 65826 FR Search CFDA 10.864 Private, not-profit organizations Rural areas and towns with a population of 10,000 or less 7 USC 1926(a)(2)(B) RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 45 of 54 Establish a revolving loan fund to make loans to eligible entities serving eligible areas for predevelopment costs and small capital improvement projects. None N/A $ 497,000 $ 497,000 Index Program 5 Regulation Citation 7 CFR 1775 Solid Waste Management Grants E-page 34 §310B(b) Subpart J Eligibility (Entities) Eligible Areas (Population) 7 CFR Part 1777 Rural areas and towns with a population of 10,000 or less technical assistance to local and regional governments for reducing or eliminating water pollution and planning or mgmt of solid waste disposal facilities Colonias and Native American Indian tribes Colonias and tribal lands Construct or improve water and waste facilities 7 USC 1932 E-page 22 §306C Eligible Purposes public body, private nonprofit organizations and Indian tribes CONACT CFDA 10.762 6 Legislative Citation Funding Limits Per Request None Loan Terms, if Applicable CFDA 10.770 $ 3.4 Million Section 306D Water and Waste system Grants for Alaskan Villages, incl. technical assistance $ 3.4 Million N/A $ 16.0 Million earmark for Native Americans plus $ 509,000 carryover $ 24.5 Million earmark for Colonias plus $ 3.1 MM carryover 7 USC 1926c $ 5 Million earmark for Hawaiian Homelands -plus$ 9.7 MM various disaster supps (Program edits state the $9.7 should be removed) 7 Budget Authority N/A CONACT Section 306C Water and Waste Disposal Grants to alleviate health risks FY 2010 Available Funding 7 CFR 1780 E-page 23 §306D CONACT State of Alaska for rural or native villages Rural or native Alaskan villages 7 USC 1926d RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 46 of 54 Development and construction of water and waste facilities to improve health and sanitation conditions None 25% in matching funds from state of Alaska from non federal sources N/A $ 58.8 Million $ 24.5 Million Earmark for Alaskan Villages plus $98.9 Million $ 74.4 MM carryover Index Program Regulation Citation 7 CFR Part 1776 8 Section 306E Grants for the Construction, Refurbishment and Servicing of Low or Moderate Income Household Water Well Systems 9 Technical Assistance and Training Grants for Rural Waste Systems NOFA published March 26, 2010 at 75 FR 14559 Legislative Citation E-page 24 §306E CONACT Eligibility (Entities) Private, non-profit organizations that are tax exempt. Eligible Areas (Population) Projects must be located in rural areas with population of 50,000 or less. FR Search CFDA 10.862 & 10.864 [Editor query as to duplicate CFDA entries] 7 USC 1926e 7 CFR Part 1775 E-page 15 §306(a)(14) CFDA 10.761 CONACT See NOFA published 12/10/2009 at 74 FR 65509 (ARRA Stimulus) 7 USC 1926(a)(14) Public, private, and non-profit organizations Rural areas and towns with population of 10,000 or less. Eligible Purposes Development of revolving loan funds for construction, refurbishing, and servicing of individual household water well systems in eligible rural areas. Provide technical assistance and training Funding Limits Per Request Organization must contribute 10% of grant amount to capitalize the fund Loan Terms, if Applicable FY 2010 Available Funding Budget Authority N/A $993,000 $ 993,000 Individual homeowner loans capped at $ 11,000 Pre-determined percentages of annual allocation N/A $ 19.5 Million -plus$ 5 Million Stimulus carryover $ 24.5 Million FR Search 10 Circuit Rider – Technical Assistance for Rural Water Systems Terms established in service contract issued through RD Procurement Included in Omnibus NOFA for ARRA Stimulus Monies published 7/23/2009 at 74 FR 36448 E-page 15 §306a(14) Public, private, and non-profit organizations Rural areas and towns with population of 10,000 or less CONACT Provide technical assistance and training N/A $ 15 million -plus$ 407,000 Carryover 7 USC 1926(a)(14) RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable -plus$ 10.2 million Stimulus carryover Page 47 of 54 $ 25.6 Million Index Program Regulation Citation Legislative Citation E-page 10: §306(a) 11 Predevelopment Planning Grants 7 CFR Part 1780 See staff instruction 1780-5 for more detail CONACT 7 USC 1926(a) Eligibility (Entities) Rural communities that do not have resources to pay predevelopment expenses Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Rural area must be either below the poverty line or below 80 percent of the statewide nonmetropolitan median house-hold income. Costs associated with the development of a complete application $25,000 or 75 percent of the project costs (whichever is smaller) To fund predevelopment planning grants for feasibility studies, design assistance & tech assistance for water & waste disposal projects May fund up to 100% of eligible costs, not to exceed $30,000 (Prior to FY2005 this purpose was the object of express earmarks) 12 7 CFR Part 1774 E-page 11 §306(a)(2)(C) CONACT Final rule published on June 24, 2010 at 75 FR 35962 CFDA 10.759 7 USC 1926(a)(2)(C) Public body such as a municipal, county, district, authority, state or commonwealth Rural areas with population of 2,500 or fewer inhabitants Not for profit organization Must also be financially stressed as well as rural Native American Tribe SEARCH Grants RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 48 of 54 Loan Terms, if Applicable N/A FY 2010 Available Funding States may use up to the greater of one half of one percent or $25,000 from their initial water & waste disposal grant allocation States may convert regular grants to search grants Budget Authority Index Program Regulation Citation Legislative Citation Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Loan Terms, if Applicable FY 2010 Available Funding Budget Authority RURAL DEVELOPMENT TELECOMMUNICATIONS PROGRAM AUTHORITIES CONTACTS: Washington, DC: 202.720.9540; State: http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd 1 2 7 CFR Part 1735 Telecom Hardship Loan Program (Direct) CFDA 10.851 7 USC 935(d)(1) 7 CFR Part 1735 E-page 16 §305(d)(2) Rural Electrification Act Telecom Treasury Rate Loan Program 3 E-page 16 §305 (d)(1) of the Rural Electrification Act 1936, as Amended, 7 USC 901 et. seq CFDA 10.851 7 USC 935 7 CFR Part 1735 E-page 21 §306 Rural Electrification Act Telecom Guaranteed Loan Program (FFB) CFDA 10.851 For-profit and nonprofit corporations that do or will provide voice and data telecom service Areas outside incorporated or unincorporated cities with population over 5,000 To build, acquire, extend, improve and refinance telephone infrastructure Minimum loan amount: $50,000. For-profit and nonprofit corporations that do or will provide voice and data telecom service Areas outside incorporated or unincorporated cities with population over 5,000 To build, acquire, extend, improve and refinance telephone infrastructure Minimum loan amount: $50,000. For-profit and nonprofit corporations that do or will provide voice and data telecom service Areas outside incorporated or unincorporated cities with population over 5,000. To build, acquire, extend, improve and refinance telephone infrastructure. Minimum loan amount: $50,000. 7 USC 936 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 49 of 54 Maximum loan amount: none. Maximum loan amount: none. Maximum loan amount: none. 5% fixed interest rate; up to 35 year amortization, determined by the life of facilities financed. Treasury interest rate at date of advance; up to 35 year amortization, determined by the life of facilities financed. Treasury interest rate plus 1/8 percent; up to 35 year amortization, determined by useful life of facilities financed. $ 145 Million Negative Subsidy $ 250 Million Negative Subsidy $ 295 Million Negative Subsidy Index Program Regulation Citation 7 CFR 1703 Subparts D and G 4 Distance Learning and Telemedicine Loans 5 Distance Learning and Telemedicine Grant Program Legislative Citation §704 of the Federal Agriculture Improvement Act of 1996 (Pub. L. 104-127 April 4, 1996), as amended Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Public body, Indian tribe, cooperative, nonprofit, limited dividend or mutual association, municipality, libraries, corporations and other legallyorganized entities. Areas outside incorporated or unincorporated cities with population over 20,000. In addition to the DLT Combination LoanGrant Program purposes, loans may be used for certain broadcasting and operational costs, except salaries and administrative expenses Minimum loan-grant amount: $50,000 Areas outside incorporated or unincorporated cities with population over 20,000. To provide end-user equipment and programming that delivers distance learning and telemedicine services into eligible areas. Minimum grant amount: $50,000. CFDA 10.855 7 USC 950aaa et seq. 7 CFR 1703 §704 of the Federal Agriculture Improvement Act of 1996 (Pub. L. 104-127, April 4, 1996), as amended Public body, Indian tribe, cooperative, nonprofit, limited dividend or mutual association, municipality, libraries, corporations and other legallyorganized entities. 7 USC 950aaa et seq. RUS electric and Telephone Loan borrowers not eligible. NOFA published March 19, 2010 at 75 FR 13245 FR Search CFDA 10.855 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Smaller communities receive more points. Page 50 of 54 Funding Limits Per Request Maximum amount:: $10 Million Maximum grant amount: $500,000. Loan Terms, if Applicable Loan interest rate is the Treasury interest rate at date of advance; up to 10 year amortization, determined by useful life of facilities financed 15% matching funds required FY 2010 Available Funding $ 5.7 Million (carryover) Budget Authority $ 157,624 $ 30.26 Million -plus$ 2.1 Million carryover $ 32.36 Million Index Program 6 Regulation Citation 7 CFR Part 1703 Subparts D and F Legislative Citation §704 of the Federal Agriculture Improvement Act of 1996 (Pub. L. 104-127, April 4, 1996), as amended Distance Learning and Telemedicine Combination LoanGrant Program Public Television Digital Transition Grant Program (Part of the larger DLT Program appropriation)) Public body, Indian tribe, cooperative, nonprofit, limited dividend or mutual association, municipality, libraries, corporations and other legallyorganized entities. Eligible Areas (Population) Eligible Purposes Funding Limits Per Request Areas outside incorporated or unincorporated cities with population over 20,000. In addition to the DLT Grant Program purposes, loans may provide DLT across a single facility, may provide new building space, including land, buildings, and building construction, and telecommunications transmission facilities. Minimum loan-grant amount: $50,000 Areas outside incorporated or unincorporated cities with population over 20,000 – station applicants must demonstrate core rural coverage Grant funds may be used to acquire, lease, and/or install facilities and software necessary for transition to digital signal Maximum amount: $ 750,000 per applicant per year Maximum amount:: $10 Million Loan Terms, if Applicable FY 2010 Available Funding Budget Authority See 4 & 5 above See 4 & 5 above $ 4.5 Million $ 4.5 Million Loan interest rate is the Treasury interest rate at date of advance; up to 10 year amortization, determined by useful life of facilities financed RUS electric and Telephone Loan borrowers not eligible. CFDA 10.855 7 Eligibility (Entities) 7 USC 950aaa et seq. 7 CFR 1740 Annual appropriation earmarks since 2003 NOFA published April 26, 2010 at 75 FR 21579 Earmark in Pub. L. 111-8 Omnibus FY2009 Appropriations Public digital television stations that serve rural areas FR Search CFDA 10.861 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 51 of 54 N/A Index Program Regulation Citation Legislative Citation Pub. L. 111-80 2010 Ag Approps 8 E-page 136 §379G Delta Health Care Services Grant Program CONACT 7 USC 2008u (Part of the larger DLT Program appropriation) RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Eligibility (Entities) Eligible Areas (Population) Eligible Purposes Consortium of regional institutions of higher education, academic health and research institutes and economic development entities located in the Delta region The distinct northwest section of the state of Mississippi, known as the Delta Region, consisting of 18 counties The development of health care services, health education programs, health care job training programs and the development and expansion of public health-related facilities Further limited to include only those areas in the Delta Region (a) not included within the boundaries of any incorporated or unincorporated city, village, or borough having a population greater than 50,000 and (b) any urbanized area contiguous and adjacent to a city or town described in (a). Page 52 of 54 Funding Limits Per Request Minimum Grant amount: $50,000 Loan Terms, if Applicable FY 2010 Available Funding Budget Authority N/A $ 3 million $ 3 million Index Program 9 Regulation Citation 7 CFR 1738 A revision to this regulation is currently in the clearance process; publication of an interim rule is expected by the end of calendar year 2010 FR Search Rural Broadband Access Loan and Loan Guarantee Program (as established by the 2002 Farm Bill) CFDA 10.886 Legislative Citation Eligibility (Entities) Eligible Areas (Population) Eligible Purposes RUS makes broadband An eligible rural area means Finance the any area, as confirmed by construction, loans and loan guarantees to legally the latest decennial census improvement, and of the Bureau of the acquisition of facilities organized entities Census, which is not located and equipment to providing, or provide broadband proposing to provide, within [Initially enacted service in eligible rural broadband services in May 13, 2002, Title VI eligible rural (1) a city, town, or communities; of Pub. L. 107-171 communities. Types incorporated area that has a population of greater than Finance broadband of eligible entities facilities leased under include: cooperative, 20,000 inhabitants; or Earmark in the terms of a capital nonprofit, limited Pub. L. 111-8 Omnibus dividend or mutual (2) an Urbanized Area lease, as defined in FY2009 Appropriations associations, limited contiguous and adjacent to generally accepted a city or town that has a accounting principals; liability companies, population of greater than financing will be limited Indian tribes and to 5 years of lease tribal organizations, 50,000 inhabitants. 7 USC 950bb costs; and commercial The proceeds of a loan organizations. may be used to carry out a Finance the acquisition Individuals or by an eligible entity of partnerships are not project only if, as of the date on which the another system, lines or eligible. application is submitted facilities if the acquisition is necessary (i) not less than 25 percent and incidental to of the households in the furnishing or improving proposed service territory is rural broadband service offered broadband service (can not exceed 50 by not more than 1 percent of requested incumbent service provider; loan amount); and and Refinance an (ii) broadband service is not outstanding obligation provided in any part of the on another proposed service territory telecommunications by 3 or more incumbent loan made under the RE service providers. Act. The refinancing cannot exceed 40 percent of the loan amount. E-page 47 §601 Rural Electrification Act RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 53 of 54 Funding Limits Per Request Minimum loan amount: $100,000. Loan Terms, if Applicable FY 2010 Available Funding Interest rates: Direct loans: Maximum loan amount: none. 4% -0- @ 4% Maximum 4% loans are limited by the NOFA treasury rate at date of advance private lender -set rate for guaranteed loans. (Amortization determined by life of the facilities) $ 400 Million -plus$ 216 Million Carryover $ 616 Million @ Treasury Rate $ -0- Gteed Budget Authority $ 44.5 Million Index Program Regulation Citation FIRST ROUND NOFA (Joint with NTIA) Published 7/9/2009 at 74 FR 33104 10 SECOND ROUND NOFA (RUS only) Published 1/22/2010 at 75 FR 3820 Legislative Citation Pub. L. 111-5, Feb. 17, 2009 Recovery Act supplemental appropriations Eligibility (Entities) Eligible Areas (Population) Eligibility is listed in the NOFAs Generally speaking, a rural area that lacks service at 5 Mbps (upstream and downstream) Distinct requirements are listed in each NOFA (Stimulus) Request for Proposals: [Satellite & Libraries & Tech Assist] Published 5/7/2010 at 75 FR 25185 Broadband Initiatives Program (STIMULUS) The relevant statutory language is as follows: Eligible Purposes Please see various NOFAs for eligible purposes Funding Limits Per Request FIRST ROUND: 50% grant, 50% loan SECOND ROUND: 75% grant, 25% loan ≤ $10,000 per premises passed FY 2010 Available Funding Loan Terms, if Applicable Loan terms are set forth in the NOFAs FIRST ROUND: $2.4 Billion SECOND ROUND Plus Satellite NOFA:: Approximately $2.2 Billion as follows:   [At least 75 percent of the area to be served by a project receiving funds from such grants, loans or loan guarantees shall be in a rural area without sufficient access to high speed broadband service to facilitate rural economic development, as determined by the Secretary of Agriculture] Up to $ 300 Million [loans, loan grant combos] for Middle Mile Projects Up to $ 100 million [grants] plus First and Middle remainder unobligated funds for Satellite Projects Up to $ 95 million for a Reserve   Page 54 of 54 NOTE: Stimulus funding sunsets on 9/30/2010 Up to $ 1.7 Billion [loans, loan grant combos] for last Mile Projects Up to $ 5 million [grants] for Rural Library and Tech Assist Projects RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Budget Authority Total BA: $2.5 Billion Index 11 Program Weather Radio Transmitter Grant Program Regulation Citation NOFA published on April 4, 2001 at 66 FR 17857 FR Search See also a clarification Notice published Oct. 16, 2001 at 66 FR 52571 Legislative Citation E page 132: Section 379B CONACT Eligibility (Entities) non-profit corporations or associations, units of local or state government, Federallyrecognized Indian tribes city, town, or unincorporated area that has a population of 50,000 inhabitants or less, other than an urbanized area immediately adjacent to a city, town, or unincorporated area that has a population in excess of 50,000 inhabitants Public body; an Indian tribe; a cooperative, nonprofit, limited dividend or mutual association; municipality; corporations and other legally organized entities A single community outside incorporated or unincorporated cities with population over 20,000 which does not have broadband CFDA 10.766 7 CFR Part 1739 12 Community Connect Grant Program FY 2009 NOFA published 4/20/2009 at 74 FR 17941 Historically appeared as an annual earmark in appropriations bills. FY 2010 NOFA not yet published FR Search Eligible Areas (Population) CFDA 10.863 RD Authorities Matrix – September 15, 2010 Note: Copies of this Matrix which are not password protected may not be reliable Page 55 of 54 Eligible Purposes To purchase and install NOAA Weather Radio transmitters and antennas To build broadband infrastructure and establish a community center which offers free public access to broadband for two years. Funding Limits Per Request Max grant: $80,000 per site Loan Terms, if Applicable Amounts are published in NOFAs and may vary Budget Authority N/A 75% of project costs in area of 12,000 or less; 65% of project costs in area of 20,000 or less 55% of project costs in areas of 50,000 or less Min $50,000 Max $1,000,000 FY 2010 Available Funding $231,161 Carryover only $231,161 Carryover only $ 3 Million $ 3 Million (Note - $24 Million per program edits dated Sept 2010) ($24 Million) N/A Statement of Cheryl Cook Deputy Undersecretary for Rural Development Subcommittee on Rural Development, Research, Biotechnology, and Foreign Agriculture February 15, 2011 Rural Definition Chairman Johnson, Ranking Member Costa and Members of Subcommittee, it is my pleasure to be with you today to discuss one of the most fundamental, and vexing questions we face in USDA Rural Development –how “rural” is defined, and what role rurality should play in how we function on behalf of the U.S. Department of Agriculture. These are fundamental questions for USDA , as we exist to provide economic and community development to overcome obstacles based on rurality. Rural areas have experienced economic stress from long-term poverty and decades of population decline. Federal assistance from USDA is essential to these communities as they often don’t have access to private capital markets and have limited access to assistance from other departments in the Federal Government. Moreover, they do not have the total population to support repayment of a bond to finance critical infrastructure needs or their population is so widespread that such a system would be prohibitively expensive. These questions are vexing because, under current law, rurality is used to determine a project’s basic eligibility for most of our programs and is defined almost solely in terms of total population thresholds. As a result, a single standard for program eligibility is applied equally in New Jersey and New Mexico, in Alabama and Alaska, in Virginia and the Virgin Islands. Given that each state has the right to determine its own municipal structures, a single standard that may sound simple in theory can be difficult to apply in practice. For example, Congress added language in the 2002 Farm Bill limiting the universe of eligible applicants for the Water and Waste Disposal program of Rural Utilities Service (RUS) and the Community Facilities program of Rural Housing Service (RHS) to “cities, towns, and unincorporated areas” whose populations did not exceed the previously established population limits. Such language does not properly account for the variety of local forms of government including townships, boroughs, and other municipalities that in many states describe the very less-populated municipalities those programs are intended to reach. It also overlooks some of the structural uniqueness of several of the original colonies – in the role of a town and the status of a village, for example – dating back to the original Plymouth settlement in the 17th Century. Further, relying almost solely on total population as the definition of rural leaves out other obvious characteristics of a rural area compared to a metropolitan area. Those characteristics might help direct USDA Rural Development’s resources to areas of greatest need and opportunity. Every state and territory have areas that are more rural than others, certainly based on total population, but also based on other factors such as population density, the presence of 1 natural assets like lakes and forests, zoning regulations and land uses that might be covered in local ordinances, the prevalence of production agriculture and its infrastructure in the area’s gross domestic product and workforce, whether a community qualifies for its own share of Community Development Block Grant funds from the Department of Housing and Urban Development or Community Services Block Grant funds from the Department of Health and Human Services or has to compete for some of the remainder after urban centers have taken their share, and so forth. USDA’s Economic Research Service (ERS) has done extensive work on rurality, as have the other witnesses you will hear from today. Much of ERS’ work is available on line through virtual briefing rooms found at http://www.ers.usda.gov/Briefing/. ERS also is about to release a new interactive atlas looking at many characteristics of rural areas. I believe it will be a very useful tool for Congress, USDA, and our private sector partners in rural economic and community development. Mr. Chairman, I’m sure that my colleagues in ERS would gladly do a demonstration of the new atlas for Subcommittee Members and staff. Applying a single standard to determine rural eligibility along with the variety of standards that exist in current law has been challenging for Rural Development staff and exasperating for applicants and lenders. Apparently, it also has been a source of frustration for Members of Congress. In recognition of the problems created by the rural area definitions, the 2008 Farm Bill provided the Under Secretary with limited authority to determine areas that do not meet the rural area definition as “rural in character” and thus an eligible rural area. While helpful, this authority has proven far too limited to fix the problems with the current definitions of rural area. In addition, each year Congress adds a series of general provisions to the agriculture appropriations legislation declaring that a certain municipality is deemed to be rural even though its population exceeds the statutory eligibility standard for that program. Given that those general provisions largely expire with the release of new decennial census data, the timing of today’s hearing is even more important. Many communities that have been eligible by reason of a general provision will not be after the new 2010 census data is released. Further, the census data will show that other communities no longer are eligible rural areas for certain programs, while still others that have experienced population loss might become eligible for the first time in decades. Now is an incredibly important time to review rurality and begin determining the best way to achieve our shared objectives of helping to create economic opportunities for rural citizens and helping them improve their quality of life. Mr. Chairman, I congratulate you and the other members of the Committee for digging into these questions now. USDA Rural Development administers over 40 different programs through its three agencies – Rural Utilities Service, Rural Housing Service, and Rural Business – Cooperative Service – delivered through 47 Rural Development state offices and nearly 500 area offices. These programs were authorized by several different laws. A complete set of all of our statutory “rural area” definitions is attached to my testimony as Appendix 1. I would like to focus the balance of my testimony today on three of those laws: the Consolidated Farm and Rural Development Act, or CONACT; the Rural Electrification Act; and the Farm Security and Rural Investment Act, which was amended by the Energy title of the 2008 Farm Bill. 2 Section 343(a)(13) of the CONACT defines “rural” and “rural area” for programs of USDA Rural Development authorized therein, principally business programs and community-based programs. In general, the Act provides a definition of “rural” or “rural area” that is, “any area other than – (i) a city or town that has a population of greater than 50,000 inhabitants; and (ii) any urbanized area contiguous and adjacent to a city or town described in clause (i)”. This definition would act as a default definition for new CONACT programs, and is historically the definition applied to the business programs of Rural Business – Cooperative Service (RBCS). The CONACT provides separate definitions for two additional program areas. For the Water and Waste Disposal direct loans, guaranteed loans, and grants of Rural Utilities Service, the Act defines “rural” and “rural area” as a, “city, town, or unincorporated area that has a population of not more than 10,000 inhabitants”. For the Community Facilities direct loans, loan guarantees, and grants of Rural Housing Service, the Act defines “rural” and “rural area” as a, “city, town, or unincorporated area that has a population of not more than 20,000 inhabitants”. The Rural Electrification Act’s definition of eligible “rural area” for Rural Utilities Service’s electric loan and loan guarantee programs was changed in the 2008 Farm Bill from “any area of the United States not included within the boundaries of any city, village, or borough having a population exceeding 1500”, to instead align with the Community Facilities program definition in Rural Housing Service, i.e. municipalities with a total population not more than 20,000. However, those Rural Electric Cooperatives which still had an outstanding loan with RUS at the time and had been eligible under the prior definition retained their eligibility – once rural, always rural. With the exception of Section 9007, the Rural Energy for America Program, the portions of Title IX of Farm Security and Rural Investment Act of 2002 assigned to Rural Development do not have a statutory requirement that projects be financed in a rural area. Proposed rules nonetheless including a “rural area” eligibility requirement comparable to other business programs were published by Rural Business – Cooperative Service (RBCS) for the Biorefinery Assistance Program (§9003), the Repowering Assistance Program (§9004), and the Bioenergy Program for Advanced Biofuels (§9005) on April 16, 2010 with a 60-day public comment period. Our intent was to have these programs mirror other types of business financing programs available from RBCS. Interim final rules for all three programs have been published. Rural Development staff administering these loans, loan guarantees, and grants must ensure that funds are invested only in eligible areas. Once basic eligibility is determined, both the CONACT and agency regulations provide additional tools for targeting resources, particularly grant funds, to communities with the smallest populations and the lowest median household incomes. For examples:  The RUS Special Evaluation Assistance for Rural Communities and Households (SEARCH) program makes predevelopment planning grants for feasibility studies, design assistance, and technical assistance, to financially distressed communities in rural areas with populations of 2,500 or fewer inhabitants for water and sewer projects (§306). 3  The RUS technical assistance grants for water and sewer projects provide highest priority to communities with fewer than 5,500 residents (§306).  The RHS Community Facilities Grant program directs the Secretary to provide higher Federal grant shares for facilities in communities that have lower community population and income levels, and creates a separate grant program for rural communities with extreme unemployment and severe economic depression (§306).  The RBCS Rural Business Enterprise Grant program gives highest priority to projects in communities with fewer than 5,000 residents (§310B). These additional priorities are applied as applications are scored or evaluated by Rural Development staff. Our success in targeting in loans, loan guarantees, and grants was one of several things discussed in Economic Information Bulletin Number 65 published by ERS in April 2010. This study found, among other things, that USDA’s rural development programs provide more funding per capita to totally rural areas (non-metro counties with less than 2,500 census-defined urban residents) and to distressed non-metro areas (persistent poverty, low employment, and population loss counties) than to non-metro areas in general. The study is available on line at www.ers.usda.gov/Briefing/ruraldevelopment/eib65. The Rural Development Mission Area is often asked why USDA offers programs that offer assistance for home ownership, business and community development, public and waste water projects and electrical and biofuel ventures given that there are a number of other agencies that provide similar services. USDA provides these services specifically to rural communities that might not otherwise receive this funding. Moreover, our field structure allows our applicants to rely on Rural Development staff in state and area offices and assist them in the application process. However, the problem is that we only have the ability to bring our entire tool box to municipalities of fewer than 10,000 residents that are not adjacent to an urbanized area. Elsewhere, our role involves helping to find other partners to do what we are prevented from doing ourselves because of eligibility standards. Rural Development also plays a somewhat unique role as the primary economic development arm of the Department of Agriculture. Eligibility standards for our loan, grant, and loan guarantee programs can lead to conflict with the Department’s other priorities and missions, particularly in states that have been grappling with significant urban sprawl. By eliminating from the CONACT eligibility definition for business programs not just those cities and towns larger than 50,000 inhabitants but also the adjacent urbanized areas, Rural Development focuses financing in projects outside the incorporated area on surrounding farmland and open spaces Prior to returning to USDA in March 2009, I served for six years as Deputy Secretary for Marketing and Economic Development in the Pennsylvania Department of Agriculture (PDA). One of my duties was to chair the Agricultural Lands Condemnation Approval Board, whose approval was required before State or local government entities could condemn preserved farmland for road improvements or other public uses. Our standard was to allow the conversion of farmland only when there was no reasonable and prudent alternative. 4 My PDA experience now stands in stark contrast to an eligible rural area standard for USDA’s business programs that makes conversion of farmland the attractive first choice rather than the last resort for siting a business project. In several states, rapid sprawl has created urbanized areas in locations that were rural by anyone’s measure only a decade ago. Congress took its first steps towards acknowledging sprawl problems in the 2008 farm bill by creating the potential for exceptions in the business programs. Projects could be sited in urbanized areas if, on a case-bycase basis, the Under Secretary for Rural Development determined that the site remained “rural in character”. Attached to my testimony as Appendix 2 is a spreadsheet showing how RBCS has administered that new flexibility in fiscal years 2009 and 2010. Finally, Mr. Chairman, Congress has acknowledged that there are circumstances in which the best economic opportunities for rural people – no matter how “rural” is defined – can be realized by financing projects located in urban areas with access to infrastructure and markets. The CONACT, for example, allows cooperatives to finance agricultural value-added processing ventures in urban areas through the Business & Industry Loan Guarantee program, provided the purpose of the co-op is help producers within an 80-mile radius of the facility and that jobs created would go primarily to rural residents. The 2008 farm bill added three additional examples. In addition to the new programs in the Energy title, Section 6015 created a carve-out in the CONACT of at least five percent of funding in the Business & Industry Loan Guarantee program for local and regional food systems, with priority for projects that benefit urban, rural, or tribal underserved areas, often called food deserts. Also, section 6108 amends the Rural Electrification Act to authorize electric loans for renewable energy (solar, wind, hydropower, biomass, or geothermal sources) for resale to rural and non-rural residents. Just as Congress has recognized in these programs that people in rural communities sometimes benefit from the economic activity that occurs in neighboring non-rural areas, USDA has been working with its current programs to respond to many rural communities’ efforts to organize on a more regional basis. This work recognizes that USDA has the responsibility to utilize our programs in such a way that best supports the hard work and ingenuity of those who live in rural communities. As this work progresses, we believe that it may also inform this important discussion around rural definition. Mr. Chairman, we look forward to receiving new census information over the coming months and with it a clear view of how rural America has changed over the last decade. We also look forward to continued discussions with this Subcommittee as to how best to meet evolving needs of rural citizens, helping them seize opportunities for economic growth that will help rural communities thrive. Thank you for holding today’s hearing, and I would be happy to address any questions at this time. 5 SUPPLEMENTAL QUESTIONS FOR THE RECORD TO: MS. CHERYL COOK, DEPUTY UNDER SECRETARY, RURAL DEVELOPMENT, U.S. DEPARTMENT OF AGRICULTURE, WASHINGTON, D.C. HEARING TO REVIEW THE VARIOUS DEFINITIONS OF RURAL APPLIED UNDER PROGRAMS OPERATED BY THE U.S. DEPARTMENT OF AGRICUTLURE February 15, 2011 Committee on Agriculture Staff Majority—Mike Dunlap (202) 226-1188 Minority—Scott Kuschmider (202) 225-1496 Questions Submitted by: Chairman Timothy V. Johnson, Illinois Q: Ms. Cook, your testimony indicates you feel USDA should have more flexibility in deciding where rural development projects are deployed, and that the current definitions are too prescriptive. Yet, the results of the 2008 Farm Bill debate on this topic are due in large part to projects being cited near urban areas. What is unique about the flexibility you are contemplating that would address concerns this Committee might have about funds being used near urban areas? Response: The provisions of Section 343(a)(13) of the Consolidated Farm and Rural Development Act (CONACT) address simply the area considered eligible to apply for Rural Development’s community and business programs. Other sections of that law, specifically Sections 306 – 306E and 310B address congressional priorities in funding applications received, and target our funds – particularly grant funds – to the smallest, poorest areas. Changes made to the former would not affect the latter. For example, the Rural Business Enterprise Grant program is subject to the eligible rural area standard of 343(a)(13)(A) – anywhere except a city or town greater than 50,000 and adjacent urbanized areas. However, Section 310B provides that priority consideration be given to applications for this program from municipalities, tribes, or non-profit organizations in communities of under 5,000. Similarly, a municipality of 9,500 residents would be eligible to apply for Water & Waste Disposal funding since they would be below the standard in Section 343(a)(13)(B) of 10,000; however, priority for grant funds and technical assistance goes to applicants with fewer than 5,000 residents under Section 306. Changing standards for eligibility to apply for Rural Development programs to provide commonality for our customers or to account for features beyond total population does not affect prioritization provided elsewhere in the Act for the smallest, neediest communities. The Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) made no changes with respect to areas eligible to apply for community-based programs. The Water & Waste Disposal program and the Community Facilities program remain at 10,000 and 20,000 respectively. The flexibility in Section 6018(a) of the farm bill, which provided for areas remaining “rural in character”, applies only to 50,000 population definition of rural that predominately applies to the business programs, like the Rural Business Enterprise Grant program described above. . What is unique about the possibilities discussed during the hearing and in my written testimony is the broader applicability to all programs in terms of the places from which an application could be accepted. Representative Collin C. Peterson, Minnesota Q: Ms. Cook, in your testimony you note that some communities currently eligible for USDA rural development programs because they currently meet the population thresholds may not be eligible in the future depending on the results of the next Census. If a multi-year loan award was made when the recipient fit within the population limit pre-Census, does that loan stay active post-Census? Can you elaborate on any other effects the Census would have on active borrowers? Response: Rural Development generally does not make multi-year loan awards, though once obligated, appropriations law generally allows a period of five years from the end of the fiscal year in which funds were awarded to fully use the funding. In the few cases where a multi-year grant can be awarded, e.g., the Rural Business Opportunity Grant and the Rural Cooperative Development Grant, both of which allow for two-year grants, the entire amount is obligated the first year. If an applicant was in an eligible rural area at the time the loan or grant was obligated, that status would continue as the project moves forward and funds are drawn down. In prior years, new census data created challenges for applicants with large communitybased projects that required a series of applications in order to fund multiple project phases over multiple fiscal years. When the only standard for eligibility is total population, a change in that population could affect eligibility for later project phases. Q: Ms. Cook, can you describe your points system when evaluating applicants? What criteria are used, and what do you place the highest value on? Response: Currently, each program regulation identifies the exact evaluation process for that program, drawing from statutory requirements and priorities where provided. Additionally, programs administered by a single nationwide competition normally identify scoring criteria in their regulation or in the body of a Notice of Funds Availability, or NOFA. In the case of most loan programs under the jurisdiction of this Subcommittee, once the applicant and the area in which the applicant wishes to receive financial assistance are determined eligible, evaluating an application generally turns to: (1) the strength of the idea for which financial assistance is being sought; and (2) whether a particular application is entitled to priority consideration. With regard to the former, most regulations evaluate various aspects of feasibility. Does the idea use proven technologies? Does the applicant have the management experience to operate successfully (and, if not, do we have technical assistance programs that could be brought to bear)? Does the applicant have a reasonable chance of repayment ability based on financial projections? Is there a market study to suggest sufficient demand for the goods or services to be financed? Is the applicant also financially invested in the project or is the Federal Government being asked to shoulder all the risk? Is the workforce able to meet the needs of this project without jeopardizing the success of others? In the case of community-based programs, does the project as proposed lead to a reasonable end user rate for public services? With regard to the latter, statutory language in the CONACT especially provides additional prioritization for certain applications in certain programs based on total population size and median household income. Other statutes, such as the Farm Security and Rural Investment Act of 2002, also articulate evaluation criteria and provide priorities for funding for projects offering the best energy “bang for the buck”. My testimony suggested that perhaps other factors could be considered in this evaluation process to ensure that Rural Development’s programs benefit the rural people who need them most. In so doing, perhaps Congress could reevaluate the single eligibility standard of total population to also consider other factors that lead to higher priority applications. The model I had in mind was the second NOFA under the Broadband Initiatives Program, or BIP. The first BIP NOFA, issued in 2009, attempted to invest the largest share of grant funds in those most isolated communities that we had been unable to reach with the regular Broadband program created in the 2002 farm bill, and that were the hardest for the private sector to reach alone. That program offers only loan funds, and applicants generally have come from more populous, economically stronger areas that can afford the debt service rather than sparsely populated isolated communities. In the Water & Waste Disposal program, where projects regularly exceed $10 million in cost, Rural Utilities Service has been able to assist smaller, poorer communities by supplementing loans with grant funds. In the Broadband program, where projects have exceeded $100 million, no grant funds are available. The American Recovery and Reinvestment Act authorized the BIP program, and for the first time enabled the Agency to pair loan and grant funds together to arrive at more affordable subscription rates. In the first NOFA, applicants generally could expect to receive up to 50% grant and 50% loan toward their total project, but remote rural areas could receive 100% grant funds. While the policy objective of the first BIP NOFA was sound, the implementation of a NOFA that limited availability of full grant funding to applicants in remote rural areas proved challenging. As if defining “eligible rural area” weren’t difficult enough, then we had to define “remote”. By contrast, the second BIP NOFA offered most applicants a mix of up to 75% grant, 25% loan, but considered a range of factors and took a more flexible approach in determining when the Administrator could waive that general rule and fully fund a project with grant funds. The NOFA provided that: The Administrator may grant a request for waiver for a larger grant component based on the following factors: 1. Distance From Non-Rural Areas – The Administrator will consider the distance from the focus of the proposed funded service areas from the closest non-rural area. 2. Rural Area Targeting – The Administrator will consider the percentage of the proposed funded service area that is above the 75 percent [of the service area being rural] requirement. 3. Density – The Administrator will consider the density of the proposed funded service area, calculated from the population and area totals of all proposed funded service areas taken from the mapping tool. 4. Median Household Income – The Administrator will consider the median household income of the proposed funded service area, comparing the county median household income to that of the State median income level. For applications serving multiple counties, the Administrator will weigh the percentages of all counties. 5. Unemployment – The Administrator will consider the state unemployment level compared to the National Unemployment Level in the state of the proposed funded service area. For applications serving multiple states, the Administrator will weigh the percentages in each State. Using this multi-faceted methodology, the Administrator was able to target remaining BIP grant funds to the most rural areas with the greatest need. Again, the CONACT already provides for some of these types of priority considerations in some, but not all, of our programs. I think this sort of potential exists throughout Rural Development, and look forward to further discussion with the Subcommittee as to how this sort of prioritization could be incorporated to consistently target our resources. Q: Ms. Cook, what is the reasoning for the “once rural, always rural” policy as it relates to rural electric cooperatives with a long, continuous borrowing history in some programs? Are there any such borrowers that now primarily serve urban or suburban areas? Response: The policy you mention is a statutory requirement of the Rural Electrification Act of 1936. While Rural Development seeks to protect taxpayers’ investments by enabling borrowers to meet their existing obligations, our mission is to ensure that the program benefits the rural borrowers who need them most. Rural electric cooperatives were established to deliver electric power to rural areas because there was no profit for investor-owned utilities to deliver service. The business structure of these cooperatives in many cases precludes their use of the financing available to investor-owned utilities. Fewer than 10 percent of the consumers served by RUS' electric borrowers could be considered nonrural based on a study completed in 2005 using census bureau delineations. The business structure that rural electric cooperatives employ to provide reliable and affordable power to rural consumers is also a consideration in Rural Development's mission. Representative Larry Kissell, North Carolina Q: Ms. Cook, within Rural Development programs both Grants and Loans are often available for our Rural Communities. It is my understanding that if a community does not qualify for a grant, they often can be considered for a loan. Many of the Rural Communities in my district are not eligible for grants, and pursue Rural Development loans. Is my assumption correct that part of your evaluation for some loan programs is the ability of the applicant to pay back the loan? If so, does this mean you would prioritize a rural area that might be in a more secure economic condition versus another? Do you feel that USDA’s approach is consistent with the goal of assisting those communities most in need? Response: USDA’s approach is consistent with the goal of assisting those communities most in need. Independent of the discussion of a lack of consistency in the standards for eligible rural areas, which apply equally to loans and grants, applicants from the smallest, poorest communities receive priority for grant funds and the lowest interest rate for loan funds. This is true both for the Water & Waste Disposal program and the Community Facilities program. The Rural Business Enterprise Grant also is targeted by Congress to the smallest areas, providing priority to applications from municipalities, tribes, and nonprofit organizations in communities below 5,000. Further, in our community programs, especially the Water & Waste Disposal program, communities, normally, receive a combination of loans and grants for a particular project. The mix of loan and grant is generally determined on the ability of the community to support the repayment of the loan. Communities that have a stronger economic foundation will receive a higher loan to grant mix than communities that are in a more fragile economic state. By targeting the loan/grant mix in this manner, Rural Development is able to extend its budget authority to serve more communities while still prioritizing assistance to those communities with the greatest need. Representative Joe Courtney, Connecticut Madame Secretary, As you are aware Connecticut, like other Northeastern states, is unique in that we lack unincorporated areas. Additionally, we have townships, villages and other community designations which inhibit our ability to be eligible for and receive funding for community facilities or water and waste projects. As you know, in 2009, an opinion issued by the office of general counsel, which overturned a long standing practice at the department to recognize the unique challenges we in the northeast face when determining eligibility for rural development. This opinion suspended the long standing practice of recognizing villages, townships and boroughs common to Northeast states as separate identifiable communities whom are eligible for rural development funds based on their own populations, not that of the town in which they are encompassed. It should be noted that this was a policy that was in place for more than 40 years. As you know, I sent a letter in October 2009 cosigned by 17 of my colleagues seeking Sec. Vilsack’s support for reversing the decision of the general counsel which he did. I have submitted a copy of that my letter and the secretary’s response for the record. However I still have some concerns that I would like to ask you about. Q: In a letter dated November 12, 2009, Secretary Vilsack wrote that “Rural Development will be soliciting public comments through an Advanced Notice of Proposed Rulemaking on defining “rural” in an equitable manner across the nation in the near future.” It is my understanding that no such proposed rule has been released yet. When does USDA expect to release that proposed rule? Response: Please see below. Q: Also included in that letter was a statement from Secretary Vilsack indicating that “Municipalities may be considered separate cities or towns for purposes of population thresholds for program eligibility provided that they meet characteristics one might expect to find in a municipality, such as separately identifiable village name, a post office, or other indicators of a community that will last through the life of the loan that is being requested.” Does this remain the policy of USDA in determining eligibility for rural development funds for communities in Connecticut today? While the majority of states began as unincorporated territories now dotted with incorporated municipalities, most states in the Northeast are entirely incorporated. However, several northeastern states – notably, Massachusetts, New York, and Pennsylvania – recognize in state law the concept of a “village”, an unincorporated population cluster lying wholly within an incorporated municipality. In MA and NY, villages lie within incorporated towns. In PA, villages lie within incorporated townships. When I was a state director in Pennsylvania during the 1990s, the general rule in the northeast region was that if a water or sewer project actually would serve fewer than 10,000 people, the project could proceed. Thus, a village of fewer than 10,000 people, where centralized services like water or sewer were more necessary than in the outlying farmland, could be considered even if the total population of the township in which the village was located exceeded 10,000. In the 2002 Farm Bill, Congress added the words “city, town, or unincorporated area” to the pre-existing eligibility standards of not more than 10,000 for the Water & Waste Disposal program and 20,000 for the Community Facilities program. The legislative history of that addition suggests that Congress specifically intended to curb what had been common practice in Pennsylvania and other northeastern states. With the new language, an applicant is the municipality rather than a portion of a municipality or even a single-purpose sewer or water district. The entire population of the municipality therefore would be applied to the eligibility standard, even if less than the total population would be served. This language was unchanged by the 2008 Farm Bill. In 2009, the Office of General Counsel determined that instructions given its Northeast regional office in 2004 with respect to this issue had not been fully implemented, and addressed that with additional staff instructions. In the same timeframe, policy leaders in Rural Development determined that additional guidance for state offices was warranted to ensure that we would follow the law as Congress enacted it in 2002 and again in 2008. An Administrative Notice was issued to the northeastern state offices explaining the current state of the law yet recognizing that an “unincorporated area” in the Northeast was something entirely different than in other states. We determined that in using the words “city or town” Congress meant any incorporated municipality. We also acknowledged that, even though states might not have any unincorporated geographic areas, an unincorporated population center within an incorporated municipality might be able to apply in its own right if it met the characteristics of a municipality aside from formal incorporation, such as providing other services or having a separate zip code or separate recognition as a census-designated place. That Administrative Notice does remain in effect pending regulatory action on the definition of “city, town, or unincorporated area”. The Advanced Notice of Proposed Rulemaking (ANPR) mentioned in the Secretary’s 2009 letter was placed on hold until final determination was reached on whether a rural area eligibility standard comparable to other business programs of Rural Business – Cooperative Service would or would not be included for the new energy programs authorized in title IX of the farm bill. The statutory language does not apply a rural eligibility standard to the Section 9003, 9004, or 9005 programs of the Farm Security and Rural Investment Act of 2002. In an effort to gain consistency across the Agency with its CONACT programs, proposed rules including that requirement were published in April 2010. Interim final rules reflecting public comment in favor of removing the eligibility standard were published in February 2011, clearing the path to resume work on the ANPR for other programs. Q: In 2009, the same year USDA overturned the long standing policy of rural development eligibility in my state of Connecticut and others, the Pennsylvania state rural development office also issued a contradictory opinion (PA AN No. 1238) regarding the state of Pennsylvania. The language in that exemption is as follows “In consultation with the National Office, we have determined that areas in townships in should not be considered as being “in a city or town.” Therefore all townships in Pennsylvania should be considered as rural areas regardless of the population of the township.” I recognize that this was a state office opinion but the fact that it was done so in consultation with the “national office” concerns me. Can you explain why USDA issued this opinion in January 2009 for Pennsylvania and then issued a contradictory opinion later that year for Connecticut and other states? Furthermore, if this was a state office determination, why did the office of general counsel not overrule this decision when they issued a contradictory decision on Connecticut’s eligibility? Response: In 2009, the new Pennsylvania State Director was asked by his staff to reissue a specific state Administrative Notice that his predecessor had developed in 2003 in response to the “city, town, or unincorporated area” language Congress adopted in the 2002 Farm Bill. That document attempted to declare all Pennsylvania townships as eligible rural areas. Upon my learning of that document in November 2009, it was rescinded. Nevertheless, it underscores some of the challenges in trying to have a single nationwide eligibility standard when that standard is applied to municipal structures created by each state and territory. PA has about 100 cities of the 1st through 4th class, with class being determined by total population. A few cities of the 4th class would meet the eligible rural area standard of the Community Facilities program (20,000) but generally not the Water & Waste Disposal program (10,000). Further, Pennsylvania has 2,500 incorporated municipalities, exactly one of which is incorporated as a town, the Town of Bloomsburg, a college town whose population is about 12,700. Pennsylvania has no unincorporated geography whatsoever, just the “village” concept of an unincorporated population center within an incorporated township. Pennsylvania has 1,000 boroughs and 1,400 townships, but Congress only mentioned “city or town” in the revised eligibility standard. The State Director in place at that time interpreted “city or town” literally, and knowing that Pennsylvania had one of the largest rural populations not served by public water or sewer, attempted to address townships through an Administrative Notice. Of the 1,400 townships in Pennsylvania, 1,297 have 10,000 or fewer residents. Assuming that Congress simply listed “city” or “town” as examples of incorporated municipalities rather than literally meaning only municipalities incorporated as cities or as towns could apply, those 1,297 PA townships would meet eligibility standards for the Water & Waste Disposal program and the Community Facilities program. The problem was with the 103 whose populations are over 10,000 and particularly with the 23 in sprawl-affected areas whose populations are over 20,000. A blanket declaration of rurality for all townships was inappropriate, and that Administrative Notice is no longer in effect. Addendum 4 Factor 1 2 Filtering Criteria to Drive RD Funds to the Most Rural Areas Community Infrastructure Programs (Points are cumulative) Points Explanatory Comments Basic eligibility would be extended to any city, Total Population 1 4,999 10 town, or unincorporated area except those greater than 50,000 in total population (unless Congress has 5,000 10,000 5 specifically adopted an exception allowing a certain type of project to be sited in an urban area). As with 10,001 20,000 3 current provisions in §306 of the ConAct and 21,000 34,999 2 Agency regulations found at 7 CFR §§1780.17, 1942.17(f), 1942.305(a) and (b), 3570.63(b), preference is given through higher point scores for 35,001 50,000 1 smaller communities. Population Density Less than 10 people per square mile Less than 50 people per square mile Less than 250 people per square mile Rural/Urban Commuting Areas 3 4 Filtering Criteria 5 In addition to total population, population density can be an indicator of rurality. This filtering 3 criterion relies on Census Bureau statistics. 1 Coded as “rural area” Coded as “small town” or “commuting to small town” Coded as “low commuting to large town” Based on Rural/Urban Commuting Area Codes developed by USDA Economic Research Service and HHS. This coding system offers a more 5 transparent view of places that have become simply ancillary bedroom communities for nearby metropolitan areas than is available currently from provisions of §343(a) of the ConAct regarding 3 exclusion of "adjacent urbanized areas and the exceptions to those exclusions created in the 2008 Farm Bill. 1 Economic Conditions - Poverty Project MHI ≤ 60% Compares Median Household Income of service area 5 to the higher of statewide non-metro Median Addendum 4 Project MHI ≤ 70% Project MHI ≤ 80% Project MHI ≤ 90% Project MHI ≤ 100% More than 25% of children in the school district where the project is sited receive free or reduced cost lunches More than 15% of children in the school district where the project is sited receive free or reduced cost lunches Economic Conditions - Unemployment 5 Project area rate is ≥ 125% of statewide rate Project area rate is 100% - 124% of statewide rate Project area rate is < statewide rate Filtering Criteria Household Income or poverty threshold for a family 4 of four. This is similar to current Agency regulations found at 7 CFR §§1780.13, 1780.17, 3 1942.17, 1942.305(b)(3), 3570.61. Those regulations will be based on a rolling five-year average of data from the American Community 2 Survey, since the Decennial Census no longer collects this data. 1 5 3 This filtering criterion compares the unemployment rate of the project service area to the statewide unemployment rate, awarding preference through higher points to applicants from areas where unemployment exceeds the statewide average by 5 more than 25%. The concept is drawn from existing Agency regulations found at 7 CFR §1942.305(b)(3) and, while it generally has not been applied to 3 community projects in the past, community development can lead to economic development and 0 job creation. Economic Impacts 6 Project contributes to development of local or regional food systems, or improves access to food in under-served rural, tribal, or urban areas Like filtering criterion #5, this measure also recognizes the economic impact of community development projects, attempting to give preference through higher points to projects that can drive job creation. As examples, a Community Facilities application to make capital improvements at a fairgrounds allowing the site to be used year-round for tourism activities that bring new revenues to the 5 community could receive extra points, as could a Addendum 4 7 Filtering Criteria municipal airport, a farmers market, or other facility that allows local entrepreneurs to have a venue by which to reach area consumers. Project can demonstrate entrepreneurial support through new or emerging small business development Project creates construction or other jobs on a temporary basis 2 Project can lead indirectly to creation of jobs at other sites 1 Community Impacts Project addresses a threat to public health or safety This factor is drawn from existing Agency regulations found at 7 CFR §§1780.13, 1780.17, 5 1942.17(f). 4 Project contributes to lifelong learning opportunities for service area residents Project contributes to lifelong residency options in the service area, including municipal or non-profit dependent care and assisted living 3 Project facilitates making the service area more attractive to employers 2 Project facilitates an improved quality of life for residents of the service area 1 4 Addendum 4 Filtering Criteria Environmental Impacts 8 9 Project addresses water quality or air quality problems in the service area Project reuses developed site Project promotes use of renewable energy or energy conservation Project does not develop land in Soil Classes I - IV Project consistent with state or local efforts to protect agricultural land uses 3 Project does not negatively impact water quality or air quality in the service area 1 Need for RD financing Project has other financial partners contributing 50% or more of the total project cost Project has no other financial partners because there are no other sources of credit at reasonable rates and terms Project has other financial partners contributing 25% or more of the total project cost Compare to existing Agency regulations found at 7 CFR §§1780.13, 1780.17. 5 5 5 3 5 5 3 Evaluates both the availability of other credit and the potential to leverage RD funds with others' funds Compare to existing Agency regulations found at 7 CFR §§1780.17, 1942.17(f), 1942.305(b)(3), 3570.63(b). Addendum 4 Project could access financing from another source, but at less favorable terms Consistency with strategic objectives Project sited in a county declared a disaster area by the President or the Secretary 10 Project demonstrates progress toward serving historically underserved geographic areas or demographic groups Project demonstrates progress toward objectives of regional or local development plans Project furthers achievement of USDA strategic plans at the Department, Mission Area, Regional, or State levels Filtering Criteria 1 5 Compares project location/purpose to regional or local planning objectives or USDA/Mission Area objectives for rural economic and community development There is some regulatory precedent for this concept in 7 CFR §1942.305(b)(3). More directly, though, this criterion makes real §14218 of the 2008 Farm Bill. Congress directed Rural Development to create the position of Coordinator for Chronically Underserved Rural Areas in order to identify and implement strategies to better serve populations and 5 places of high need and high poverty. 3 1 Addendum 4 Factor 1 Filtering Criteria to Drive RD Funds to the Most Rural Areas – Entrepreneurship Support Programs (Points are cumulative) Explanatory Comments Points Basic eligibility would be extended to any city, town, Total Population 1 4,999 10 or unincorporated area except those greater than 5,000 10,000 5 50,000 in total population. Comparable to current provisions in §306 of the ConAct and Agency 10,001 20,000 3 regulations found at 7 CFR §§1780.17, 1942.17(f), 21,000 34,999 2 1942.305(a) and (b), 3570.63(b), preference is given 35,001 2 3 Filtering Criteria 50,000 Economic Conditions Unemployment Project area rate is ≥ 125% of statewide rate Project area rate is 100% - 124% of statewide rate Project area rate is < statewide rate Economic Impacts General Project demonstrates likelihood to create or save high quality permanent jobs within 2 years Project can demonstrate entrepreneurial support through new or emerging small business development, including cooperatives Project creates construction or other jobs on a temporary basis 1 through higher point scores for smaller communities. Compares unemployment rate of the project service area to statewide unemployment rate. This is 5 comparable to current Agency regulations found at 7 CFR 1942.305(b)(3). 3 0 5 Evaluates the quality and quantity of jobs created or saved by the project, along the lines of criteria used in the B&I Recovery Act Notice of Funds Availability. 4 2 Addendum 4 Project can lead indirectly to creation of jobs at other sites 4 5 Economic Impacts Promoting Energy Independence Project purpose leads to increased domestic production of renewable power Project purpose leads to increased domestic production of renewable fuels meeting the RFS 2 standard Project leads to increased domestic production of renewable alternatives to heating oil Project is itself energy independent Project builds capacity for energy audits for farmers and other rural business owners Economic Impacts Supporting Agricultural Entrepreneurs Project (re)develops infrastructure and service providers so agricultural producers can get equipment, livestock feed, seed, fertilizer, or other inputs needed to produce agricultural commodities Filtering Criteria 1 5 This filtering criterion builds on provisions of the several Notices of Funds Availability issued for energy programs like the Rural Energy for America Program, Biorefinery Assistance Program, etc. By 5 applying this filter to all economic development applications, programs like the Business & Industry Loan Guarantee Program would have the ability to give additional weight to applications that advance America’s energy agenda. 5 3 3 American agriculture in the 20th Century is the greatest success story of increasing productivity in history. But, as the average age of America's farmers and ranchers rose over the last few decades, so has the average age of seed and equipment dealers, feed mill and grain elevator operators, fertilizer manufacturers and dealers, livestock auction operators and local butchers, etc. For American agriculture to remain strong in the 21st Century, Rural Development needs to focus more of its efforts on the infrastructure surrounding agricultural producers 5 Addendum 4 Project (re)develops infrastructure needed to move agricultural commodities (food, fiber, or fuel) beyond the farm gate for processing, distribution, or retailing to consumers Project contributes to development of local or regional food systems, including direct marketing from farmers to consumers Project contributes to alleviating food availability challenges in rural, tribal or urban underserved areas Project alleviates regional shortages in critical goods and services needed for farmers and ranchers to thrive Project is consistent with state or local efforts to protect agricultural land uses 6 Economic Impacts Building on Broadband Infrastructure Project purpose(s) includes e-commerce start-up or expansion Project purpose is primarily focused on using broadband technologies Filtering Criteria 5 Compare these two filtering criteria to §6015 of the 2008 Farm Bill, which directed RBS to target at least 5% of available budget authority to local or regional 5 food system projects until April 1 of each year. Within that current target, preference is given to projects that benefit rural, tribal, or urban underserved areas. 5 3 Examples might include regional shortages in large/food animal veterinarians, irrigation equipment manufacturers or dealers, sawmills, rendering plants, a wide variety of regional needs are facing greater urgency in finding new entrants 3 This criterion recognizes that the full potential of increasing rural broadband infrastructure won’t be realized until businesses and institutions in rural 5 areas actually use it. 3 Addendum 4 Project purpose(s) includes purchasing new equipment that can use broadband technologies 7 8 Community Impacts Project contributes to workforce development opportunities for service area residents Project purpose(s) includes development or expansion of an employee-owned cooperatively run business Project facilitates making the service area more attractive to additional employers Project contributes to lifelong residency options in the service area, including forprofit dependent care or assisted living Environmental Impacts Project improves water quality or air quality issues Project reuses developed site Project complies with available “green” building standards or commercializes products that help other businesses and home owners adopt green building standards Filtering Criteria 1 Compare to current Agency regulations found at 7 §§CFR 1780.13, 1780.17, 1942.17(f). 5 5 3 1 5 5 4 Addendum 4 Project does not develop land in Soil Classes I – IV Project does not negatively impact water quality or air quality in the service area 9 Filtering Criteria 3 1 Promoting Rural Capital Formation Project has other financial partners contributing 50% or more of the total project cost Project purpose is to create or expand availability of venture capital in rural areas Project leverages Federal or State tax credit opportunities Project purpose is to capitalize a Revolving Loan Fund 1 Consistency with strategic objectives Project sited in a county declared a disaster area by either the President or the Secretary 5 Project demonstrates progress toward serving historically underserved geographic areas or demographic groups There is some regulatory precedent for this concept in 7 CFR §1942.305(b)(3). More directly, though, this criterion makes real §14218 of the 2008 Farm Bill. Congress directed Rural Development to create the position of Coordinator for Chronically Underserved Rural Areas in order to identify and implement strategies to better serve populations and 5 places of high need and high poverty. 10 5 5 This filtering criterion evaluates the potential to leverage RD funds with others' funds and attract equity as well as debt investment vehicles to rural America 3 Addendum 4 Project demonstrates progress toward objectives of regional or local development plans Project furthers achievement of USDA strategic plans at the Department, Mission Area, Regional, or State levels Filtering Criteria 3 Compares project location/purpose to regional or local planning objectives or USDA/Mission Area objectives for rural economic and community development 1 Rural Area Exceptions Requests 2/28/2013 Date of Response to State 1/16/2009 6/18/2010 7/19/2010 7/19/2010 10/22/2010 3/14/2011 12/5/2011 2/2/2012 11/1/2012 5/17/2012 State TX PA PA IA RI TN NY NC FL TN Town Corpus Christi (Deannexation) Scranton Reading Grimes North Smithfield Church Hill Wading River Spring Lake Homestead Hendersonville Outcome Approved by Under Secretary under the RIC 1/4 mile from rural area provision. Approved by Under Secretary under the RIC 1/4 mile from rural area provision. Approved by Under Secretary under the RIC 1/4 mile from rural area provision. Approved by Under Secretary under the RIC 1/4 mile from rural area provision. Reconsideration Request Approved by the Under Secretary under the RIC 1/4 mile provision Approved by Under Secretary under the RIC 1/4 mile from rural area provision. Approved by Under Secretary under the RIC 1/4 mile from rural area provision. Approved by Under Secretary under the RIC 1/4 mile from rural area provision. Approved by Under Secretary under the RIC 1/4 mile from rural area provision. Approved by Under Secretary under the RIC 1/4 mile from rural area provision. Date of Request 12/16/2008 12/17/2008 1/26/2010 2/3/2010 3/22/2010 10/19/2010 6/3/2011 12/1/2011 2/6/2012 2/13/2012 KY MI NC OR OR OR OR OR OR OR OR OR AR MO IL IL IL IL IL IL IL NE NE NE TN TN RI CT PA PA PA PA PA Henderson Buchanan Canton/Clyde White City Jacksonville Ashland Coburg Turner Wilsonville Butteville Boring Pleasant Home West Memphis Pevely East Dubuque Beecher Winnebago Belvidere Sugar Grove Yorkville Elburn Plattsmouth South Sioux City Dakota City Gallatin Springfield South Kingstown North Grosvenordale Mahoning Township Lehigton Borough Parryville Borough Towamensing Township Franklin Township Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String 9/10/2008 3/24/2009 1/14/2009 3/24/2009 2/19/2009 3/24/2009 2/27/2009 4/2/2009 2/27/2009 4/2/2009 2/27/2009 4/2/2009 2/27/2009 4/2/2009 2/27/2009 4/2/2009 2/27/2009 4/2/2009 2/27/2009 4/2/2009 2/27/2009 4/2/2009 2/27/2009 4/2/2009 3/2/2009 4/2/2009 3/5/2009 4/2/2009 4/7/2009 5/7/2009 4/7/2009 5/7/2009 4/7/2009 5/7/2009 4/7/2009 5/7/2009 4/7/2009 5/7/2009 4/7/2009 5/7/2009 4/7/2009 5/7/2009 4/14/2009 5/7/2009 4/14/2009 5/7/2009 4/14/2009 5/7/2009 4/15/2009 5/7/2009 4/15/2009 5/7/2009 4/24/2009 6/12/2009 4/27/2009 6/12/2009 5/7/2009 6/12/2009 5/7/2009 6/12/2009 5/7/2009 6/12/2009 5/7/2009 6/12/2009 5/7/2009 6/12/2009 Rural Area Exceptions Requests PA PA PA PA MT MT RI NV NV NJ NJ RI MA NJ OR OR OR MA MI MI CA CA CA CA CA CA CA CA CA CA CA CA CA CA IL AR AR AR AR OH OH OH PA PA PA PA PA East Penn Township Bowmanstown Borough Palmerton Borough Lower Towamensing Township Bonner West Riverside Burrilville Johnson Lane Moundhouse Newton Flemington Exeter Southbridge Clayton Talent Cornelius Forest Grove Amesbury Romeo Washington Township Alpine Auburn Healdsburg Galt Exeter Durham Gilroy Cherry Valley Beaumont Banning Graton Sebastopol Atwater Anderson Morton Bryant Benton Jacksonville Cabot Xenia Troy Tipp City New Kensington Green Lane Pennsburg Red Hill East Greenville Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String 2/28/2013 5/7/2009 6/12/2009 5/7/2009 6/12/2009 5/7/2009 6/12/2009 5/7/2009 6/12/2009 5/14/2009 6/12/2009 5/14/2009 6/12/2009 5/14/2009 6/12/2009 6/15/2009 8/14/2009 6/15/2009 8/14/2009 6/25/2009 8/14/2009 6/25/2009 8/14/2009 7/20/2009 9/28/2009 7/22/2009 9/28/2009 7/24/2009 9/28/2009 N/A 9/28/2009 N/A 9/28/2009 N/A 9/28/2009 N/A 9/28/2009 9/23/2009 11/18/2009 9/23/2009 11/18/2009 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 10/21/2009 1/13/2010 11/9/2009 1/13/2010 11/20/2009 1/13/2010 11/20/2009 1/13/2010 11/20/2009 1/13/2010 11/20/2009 1/13/2010 11/23/2009 1/13/2010 11/24/2009 1/13/2010 11/24/2009 1/13/2010 9/24/2009 1/25/2010 9/24/2009 1/25/2010 9/24/2009 1/25/2010 9/24/2009 1/25/2010 9/24/2009 1/25/2010 Rural Area Exceptions Requests MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA MA RI RI RI RI RI RI RI RI CT CT Boxford Byfield Georgetown Ipswich Topsfield Essex Gloucester Manchester Rockport Ayer Groton Shirley Upton Carver Lakeville Middleboro Paxton Rutland Charlton Leicester Spencer Northbridge Uxbridge Whitinsville Fairhaven Mattapoisett Acushnet East Freetown Monson Palmer Three Rivers Southwick Westfield Easthampton Northampton Hadley Hatfield Parts of Smithfield Parts of North Smithfield Parts of North Kingstown Tiverton Portsmouth Middletown Newport Jamestown Durham Thomaston Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String 2/28/2013 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 Rural Area Exceptions Requests CT CT CT CT CT CT CT CT NJ NJ NJ NJ NJ MI MN MN MN IL MI PA PA MO PA NJ FL FL FL FL FL FL FL FL FL FL MA IN TN NJ NJ NJ NJ OH OH OH WI OH OH Plymouth Tolland Crystal Lake Westbrook Essex Deep River Woodbury Southbury Hackettstown Lebanon Clinton Annandale High Bridge Mason St. Joseph Dilworth La Crescent Lebanon Sparta Shavertown Dallas Wentzville Robesonia Bloomsbury Gulf Breeze Pensacola Beach Cantonment Pace Milton Bagdad Green Cove Springs St. Cloud Campbell Loughman Millis Alexandria Lenoir City Andover Borough Andover Township Sparta Township Lake Mohawk Perry Madison North Madison Milton Oberlin South Amherst Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String 2/28/2013 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 11/24/2009 12/3/2009 12/3/2009 12/14/2009 12/14/2009 12/14/2009 12/14/2009 12/14/2009 1/5/2010 1/29/2010 1/29/2010 1/29/2010 1/29/2010 2/9/2010 3/1/2010 3/1/2010 3/11/2010 3/16/2010 3/24/2010 3/30/2010 3/30/2010 3/30/2010 3/30/2010 3/30/2010 3/30/2010 3/30/2010 3/30/2010 3/30/2010 3/30/2010 4/6/2010 4/20/2010 4/21/2010 4/15/2010 4/15/2010 4/15/2010 4/15/2010 4/16/2010 4/16/2010 4/16/2010 4/23/2010 5/3/2010 5/3/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 1/25/2010 3/1/2010 3/1/2010 3/1/2010 3/1/2010 3/1/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 5/27/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 Rural Area Exceptions Requests OH NC PA PA PA PA PA PA CA WA WA WA WA WA WA WA WA WA WA WA MI NM MA MA NC MA TN NC NH FL NM NM NH CA NC MI PA CT OH RI LA TN MT PA NC Wadsworth Weaverville Mountain Top Bath Nazareth Wind Gap Pen Argyl Bangor Nipomo Gleed Selah the area west of West Valley Moxee the area south of Union Gap Brush Prairie Buckley Monroe Duvall Gig Harbor Sudden Valley Rockford Anthony Bellingham Freetown Hendersonville Granby/Ludlow Louisville Raeford Londonderry Edgewater Santa Teresa Sunland Park Exeter Boulder Creek Fuquay-Varina Freeland Clarks Summit East Windsor Newton Falls Coventry Central Southern Area of Robertson Co. Billings New Holland Swannanoa Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String (one string in request was not a string) Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String Eligible String 2/28/2013 5/3/2010 5/13/2010 5/19/2010 5/26/2010 5/26/2010 5/26/2010 5/26/2010 5/26/2010 6/22/2010 7/12/2010 7/12/2010 7/12/2010 7/12/2010 7/12/2010 7/12/2010 7/12/2010 7/12/2010 7/12/2010 7/12/2010 7/12/2010 7/19/2010 10/12/2010 11/5/2010 11/5/2010 11/15/2010 11/16/2010 11/22/2010 12/7/2010 2/23/2011 3/29/2011 5/31/2011 5/31/2011 5/31/2011 5/26/2011 7/7/2011 9/30/2011 11/8/2011 1/19/2012 2/7/2012 3/6/2012 3/27/2012 4/9/2012 5/3/2012 10/19/2012 11/6/2012 6/15/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 6/15/2010 8/9/2010 8/9/2010 8/9/2010 8/9/2010 8/9/2010 8/9/2010 8/9/2010 8/9/2010 8/9/2010 8/9/2010 8/9/2010 8/9/2010 10/13/2010 11/15/2010 12/15/2010 12/15/2010 12/15/2010 12/15/2010 12/15/2010 2/3/2011 4/6/2011 6/17/2011 6/17/2011 6/17/2011 6/17/2011 8/5/2011 8/5/2011 11/10/2011 12/16/2011 2/13/2012 3/22/2012 3/22/2012 4/23/2012 4/23/2012 6/5/2012 12/21/2012 12/3/2012