Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.
In fiscal year 2007, four loans were made in the 523 program, and one loan was made in the 524 program.
Uses and Use Restrictions
For the purchase and development of adequate sites, including necessary equipment which becomes a permanent part of the development; for water and sewer facilities if not available; payment of necessary engineering, legal fees, and closing costs; for needed landscaping and other necessary facilities related to buildings such as walks, parking areas, and driveways.
Restrictions: loan funds may not be used for refinancing of debts, payment of any fee, or commission to any broker, negotiator, or other person for the referral of a prospective applicant or solicitation of a loan; no loan funds will be used to pay operating costs or expenses of adminsitration other than actual cash cost of incidental administrative expenses if funds to pay those expenses are not otherwise available.
Repayment of loan is expected within two years.
A private or public nonprofit organization that will provide the developed sites to qualified borrowers on a cost of development basis in open country and towns of 10,000 population or less and places up to 25,000 population under certain conditions.
Applicants from towns of 10,000 to 25,000 population should check with local RD office to determine if agency can serve them.
Assistance is available to eligible applicants in States, Puerto Rico, the Virgin Islands, Guam, and the Northern Marianas.
Sites developed with Section 524 loans must be for housing low and very low income families and may be sold to families, nonprofit organizations, public agencies and cooperatives eligible for assistance under any Section of Title V of the Housing Act of 1949, or under any other law which provides financial assistance. Sites developed with Section 523 loans must be for housing to be built by the self-help method.
Applicants must furnish evidence of the following: (1) Market analysis showing need for such services; (2) legal capacity to borrow funds and develop land for sale; (3) a sound budget; and (4) general project description. This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
Environmental impact assessment and environmental impact statements are required for this program.
This program is eligible for coverage under E.O.
12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
This program is excluded from coverage under OMB Circular No.
The application will be in the form of a letter to the Rural Development Manager of the Rural Development (RD). Supporting information and costs should be included as needed. This program is excluded from coverage under Departmental Regulations 3015 and 3016, and OMB Circular No. A-110.
After application has been reviewed.
Housing Act of 1949, as amended, Sections 523 and 524, Public Law 89-117; Public Law 89-754, 42 U.S.C. 1490c and d.
Range of Approval/Disapproval Time
From 60 to 90 days.
A uniform procedure whereby an organization which is directly or adversely affected by an administrative decision by Rural Development Rural Housing Programs is found in 7 CFR 3550.4. Applicants may request reconsideration on the basis of pertinent facts concerning his application.
Applicants may reapply at any time provided there is evidence of need for the proposed building sites in the locality.
Formula and Matching Requirements
Length and Time Phasing of Assistance
Post Assistance Requirements
RD District office monitors the loan and reports to the State Director should the borrower default in its loan obligations.
Adequate operating records must be maintained by borrower.
(524 Site Loans) FY 07 $2,450,000; FY 08 est not available; and FY 09 est not available. (523 Site Loans) FY 07 $570,000; FY 08 est not available; and FY 09 est not available.
Range and Average of Financial Assistance
Regulations, Guidelines, and Literature
RD Instruction 444.8, "Rural Housing Site Loan Policies, Procedures, and Authorizations"; 7 CFR 1822.261-1822.278; PA-1131.
Regional or Local Office
Consult your local telephone directory for RD District Office number. If no listing, get in touch with appropriate RD State office listed in Appendix IV of the Catalog or on the internet at http://www.rurdev.usda.gov/recd_map.html.
Director, Single-Family Housing Processing Division, Rural Housing Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1474. Use the same number for FTS.
Criteria for Selecting Proposals
A team of young student entrepreneurs from Yorkshire’s St Bede’s Catholic Grammar School have scored £2,500 in cash and a £500 seed fund for Trash4Cash – their idea of a recycling business.