Notice of Funds Availability (NOFA) for the Multifamily Housing Preservation and Revitalization Demonstration Program (MPR) and for Section 515 Subsequent Loans for Preservation Activities for the Fiscal Year (FY) 2024

SUPPLEMENTARY INFORMATION:

Late or incomplete applications will not be eligible for funding under this Notice. Paper applications will not be accepted. Applications that are deemed eligible but are not selected for further processing due to lack of funding will be withdrawn from processing.

Authority

The Consolidated Appropriations Act, 2024, Public Law 118-42, authorized USDA to conduct a demonstration program ( i.e., the Multifamily Housing Preservation and Revitalization (MPR) Demonstration Program) for the preservation and revitalization of sections 515 (rural rental housing) (RRH) and 514 and 516 (off-farm labor housing) properties to restructure existing USDA multi-family housing (MFH) loans expressly to ensure the project has sufficient resources to provide safe and affordable housing for low-income residents and farm laborers under the programs authorized by the Housing Act of 1949, as amended (42 U.S.C. 1484, 1485 and 1486). The MPR Demonstration Program is implemented under 7 CFR part 3560 and the requirements set forth in this Notice. Title V of the Housing Act of 1949; 42 U.S.C. 1480; implemented under 7 CFR part 3560 authorizes the Section 515 Direct Loan program. The section 515 RRH direct loan program provides competitive financing for affordable multi-family rental housing for low-income, elderly, or disabled individuals and families in eligible rural areas.

Rural Development Key Priorities

RD will continue to support and promote activities and investments that will achieve the following:

1. Creating More and Better Markets: Assisting rural communities to recover economically through more and better market opportunities through improved infrastructure.

2. Addressing Climate Change and Environmental Justice: Reducing climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities.

3. Advancing Racial Justice, Place-Based Equity, and Opportunity: Ensuring all rural residents have equitable access to RD programs and benefits from RD funded projects.

For further information, visit https://www.rd.usda.gov/priority-points.

Overview

Federal Awarding Agency Name: The Rural Housing Service's (RHS) Multifamily Housing Program (MFH).

Funding Opportunity Title: Notice of Funds Availability (NOFA) for the Multifamily Housing Preservation and Revitalization (MPR) Demonstration Program and Section 515 Rural Rental Housing Subsequent Loans for Preservation Activities for Fiscal Year (FY) 2024.

Announcement Type: Notice of Funds Availability (NOFA).

Assistance Listing:

(1) 10.447—Rural Multifamily Housing Revitalization Demonstration Program (MPR).

(2) 10.415—Section 515 Rural Rental Housing Subsequent Loans

A. Program Descriptions

1. Purpose of the Programs

The MPR Demonstration Program restructures loans and provides additional financing for existing Section 515 Rural Rental Housing (RRH) and Section 514/516 Off-Farm Labor Housing (Off-FLH) projects to help improve and preserve the availability of safe affordable rental housing for low-income residents. The Section 515 RRH Subsequent Loan program provides additional financing for existing Section 515 RRH projects to help improve and preserve the affordability of safe affordable rental housing for low-income residents. MPR and the Section 515 RRH Program are being combined in this Notice to gain efficiencies in the announcement of funding opportunities, application, and selection process, as both programs are eligible preservation resources. Although Section 515 Subsequent Loans, as described under 7 CFR 3560.73 are not required to be awarded under a NOFA, including these funds in this NOFA will enhance program transparency for the public and allow for fair and equitable competition for the resource.

Both programs are designed to address preservation needs in Rural Development's Multifamily Housing portfolio. Funds may be used to address health, safety and accessibility needs and to repair or renovate existing project items identified in the Capital Needs Assessment (CNA). Additional items may be added to the scope of work, if practical and feasible, at the sole discretion of the RHS. Proposals to develop or construct additional units within the existing building envelope, only if needed to comply with accessibility requirements, will be considered and are eligible under this Notice. To be considered for funding, all applicants are required to meet both the general threshold requirements, as well as the program-specific requirements as outlined in this Notice. The CNA Template and CNA Process Addendum are provided at the Multifamily Housing Direct Loans website, click on the “To Apply” tab; https://www.rd.usda.gov/programs-services/multifamily-housing-programs/multifamily-housing-direct-loans#to-apply. Questions regarding the CNA Template and CNA Process Addendum or assistance with accessing the CNA documents should be directed to Jonathan Bell, Director, Processing and Report Review Branches, Production and Preservation Division, MFH, RD, USDA, via email: MFHprocessing1@usda.gov or telephone: (202) 205-9217.

RHS will hold workshops to provide general guidance and assistance regarding this NOFA prior to the application deadline. These workshops will be announced via GovDelivery notice and will also be posted on the MFH Programs website ( https://www.rd.usda.gov/programs-services/multi-family-housing-programs ). Sign up for GovDelivery notifications by visiting the GovDelivery website ( https://public.govdelivery.com/accounts/USDARD/signup/10420 ). Additional information and guidance outlining applicant, property, and tenant eligibility requirements; factors for scoring and ranking applications and making awards; and any requirements and/or limitations specific to each program application opportunity can be found in this Notice. Prospective applicants are encouraged to read this entire Notice thoroughly and attend the informational workshops for more information and clarification prior to submitting applications for funding.

All applications must follow the applicable Agency regulations in 7 CFR part 3560. The MPR Program and the Section 515 RRH Program are subject to title V of the Housing Act of 1949; 7 CFR part 3560: and the requirements set forth in this Notice.

2. Applicant Eligibility

To be eligible for funding under this NOFA, applicants must meet all statutory and regulatory requirements applicable to the MPR and/or Section 515 RRH program funding. Program regulations may be found at the following link: https://www.rd.usda.gov/page/regulations-and-guidance.

3. Definitions

The definitions applicable to this Notice are published at 7 CFR 3560.11 which can be found on the following website: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3560.

4. Application of Awards

Awards under the MPR Demonstration Program and Section 515 RRH Program will be made using the specific selection criteria contained in this Notice.

The Agency will review, evaluate, and score applications received in response to this Notice based on the provisions found in 7 CFR part 3560 ( https://www.ecfr.gov/current/title-7/part-3560 ), and as indicated in this Notice. The Agency advises all interested parties that the applicant bears the full burden in preparing and submitting applications in response to this Notice for this Program in FY 2024.

B. Federal Award Information

Type of Award: Loans and grants (MPR) and loans (Section 515).

Fiscal Year Funds: FY 24 (MPR and Section 515) and carryover funds (MPR).

Available Funds: The Agency will make available the following funds in this NOFA: MPR: $80,491,882 and Section 515: $27,000,000. Available loan and grant funding for the MPR program and Section 515 RRH program for FY 2024 will also be announced via GovDelivery Notice. Sign up for GovDelivery notifications by visiting the GovDelivery website at: https://public.govdelivery.com/accounts/USDARD/signup/10420. Funding amounts will also be posted on the RHS MFH website at: https://www.rd.usda.gov/programs-services/multifamily-housing-programs/multifamily-preservation-and-revitalization-mpr#to-apply. Funding awards will be posted to the RHS website as funding is obligated. RHS reserves the right to post all information submitted as part of the application package that is not protected under the Privacy Act on a public website with free and open access to any member of the public.

Award Amounts: The Agency anticipates a maximum per unit award amount of $60,000 and no minimum award amount. The Agency reserves the right to reduce requested funding amounts based on funding availability.

Supplemental Awards: With the submission of a new application, projects that have previously received Agency funding are eligible to apply for supplemental funding.

Type of Assistance Instrument: Grant Agreement, Direct Loan.

C. Eligibility Information

1. Eligible Applicants

Eligibility for MPR and section 515 funding under this NOFA includes current RD borrowers that have received a loan from the Agency and eligible applicants under 7 CFR part 3560 who are applying to assume ownership and the associated outstanding RD loans on RD-financed MFH properties. Eligible applicants for the MPR and Section 515 programs include individuals, partnerships or limited partnerships, consumer cooperatives, trusts, State or local public agencies, corporations, limited liability companies, non-profit organizations, Indian Tribes, associations, or other entities that own or will be the owner of the project for which an application for transfer of ownership by the Agency is submitted. Applicants must be eligible entities and not currently debarred, suspended, or delinquent on any Federal debt. Agency regulations for the Section 515 MFH program and the Sections 514/516 Farm Labor Housing (FLH) program are published at 7 CFR part 3560.

2. Eligible Projects

Projects must meet at least one of the following requirements to be eligible to receive funding:

(a) All Agency loans on the project will reach mortgage maturity prior to January 1, 2027. If a consolidation of two or more projects into a single project is proposed, all loans on the consolidated project must reach maturity prior to January 1, 2028.

(b) The project has an existing MPR debt deferral that expires prior to January 1, 2028.

(c) The project sustained damage due to a storm, fire, flood, wind, or other man-made or natural disaster and necessary repairs as a result of the damage are incomplete and/or units are uninhabitable due to inadequate insurance proceeds.

(d) The project has been approved under the Agency's Simple Transfer Pilot Program, published in the Federal Register on December 9, 2022 (87 FR 75457), and has an Agency-required rehabilitation plan that lacks full funding.

(e) A purchase and sale agreement has been approved for the project under the Agency's sale to nonprofit process in 7 CFR 3560.659 and the project requires additional funding to complete a transfer of ownership to the new buyer.

(f) Loan(s) on the project were reamortized at the request of the owner to avoid payoff and program exit prior to imminent loan maturity (“reamortization lite”) and the project requires funding to address unmet rehabilitation needs.

(g) Repairs or modifications are needed to address health and safety findings or violations and/or accessibility modifications identified in the property's Capital Needs Assessment (CNA) submitted with the application. The combined amount of the health, safety, and accessibility repairs or modifications identified in the CNA must exceed an average cost of $4,000 per unit to meet the project eligibility criteria.

3. Threshold Eligibility Requirements

All applications must meet all threshold eligibility requirements as follows:

(a) Applications must be complete as specified by this Notice;

(b) Applications must be submitted electronically;

(c) Complete applications must be received by 12 p.m., Eastern Time December 26, 2024;

4. Determination of Initial Eligibility

The determination of initial eligibility for any application will be determined as of the application submission deadline date. The RHS reserves the right to discontinue the processing of any application due to material changes in the applicant's status occurring any time after the initial eligibility determination.

D. Program Funding

1. Cost Sharing or Matching

There are no cost sharing or matching requirements to receive program funding.

2. Funding Priority for Areas of Persistent Poverty

To focus investments in areas where the need for increased prosperity is greatest, RHS will set aside 10 percent of the available funds for applications that will serve persistent poverty counties. The term “persistent poverty counties” means any county that has had 20 percent or more of its population living in poverty over the last 30 years, using the 2020 Decennial Census data and the 2017-2021 American Community Survey five-year average), or any territory or possession of the United States. Information on which counties are considered persistent poverty counties can be found through using the following link: https://ruraldevelopment.maps.arcgis.com/apps/webappviewer/index.html?id=a0bcd25194434ac784493fd5dc7f8191.

3. Funding Priority for REAP Zones

To address issues of geographic isolation of communities separated by long distances, absence of large metropolitan centers, low-density settlement patterns, historic dependence on agriculture, continued population loss, outmigration, and economic upheaval or economic distress, the Agency will provide a set aside under this announcement for applications in Rural Economic Area Partnership (REAP) Zones. REAP Zones locations are as follows: