PROCEDURE NOTICE

RD HANDBOOK CHANGES INSERT RD HB-1-3565 GUARANTEED RURAL RENTAL HOUSING PROGRAM ORIGINATION AND SERVICING HANDBOOK. This Handbook is partially revised. The specific revisions are outlined below.

• Removal of all DEI and Environmental Justice references to comply with Executive Orders
• Removal of all references to the Response to the Notice.
• The Agency will require applicants to submit an application which consists of three components; (1) the completed Section 538 Guaranteed Rural Rental Housing Program (GRRHP) Response Form, (2) the lender’s certifications and (3) supporting documentation which will include exhibits and required forms.
• Replaced “Response to the Notice” with “Application Process”
• Added language about the “538 GRRHP Response Form”
• Added language about the Guarantee Fee Structure Designation
• Added language about the Participation in Energy Efficient Programs
• Amended the Borrower Eligibility section in accordance with 2 CFR 180.300
• Updated address to submit applications for lender approval.
• Added language about the screening lenders in the Do Not Pay portal.
• Added language to define lender’s Principal.
• Added the eligibility website address.
• Removed all References to the Notice to Proceed
• Added language that applications must be submitted electronically and to the appropriate Processing and Report Review Branch.
• Added language that applications for Section 515 and 538 joint transactions must be submitted to the Agency at the same time.
• Added language that loan documents submitted at closing must have been approved by the Agency.
• Removed references to forms (AD 1047 and AD 1048).
• Removed references to Sources and Uses Comprehensive Evaluation (SAUCE) replaced with “Sources and Uses”.
• Changed the Agency review timeframe from 90 days to 30 days.
• Removed references of sending applications to the National Office, replaced with sending applications to the appropriate PRR Branch.

RD HANDBOOK CHANGES INSERT RD HB-1-3565 (Cont.)

• Added language that applications with certain criteria will be sent to the Underwriting Branch for review.
• Removed language regarding if the project cannot meet conditions, the conditional commitment will not be issued.
• Change the name of the Allocation of FY 20XX form to RD Instruction 1940-L, Exhibit A, Attachment 2 - Request for Reservation of FY 20XX MFH Funds and MPR Tools
• Updated the Terms of Conditional Commitment section.
• Updated the GRRHP Fees section.
• Updated the Lapse of a Conditional Commitment section.
• Removed the paragraph that the Agency must review the lender’s underwriting calculations, proformas, etc.
• Amended the guidance of submitting the lender’s loan documents to OGC.
• Added language that the restrictive-use deed must be recorded separate from the regulatory agreement.
• Updated the Loan Closing section.
• Clarified the Guarantee During Construction section.
• Updated the Final cost certification section.
• Added language that the regulatory agreement must be recorded.
• Updated all contact information.
• Removed references to the Guaranteed Loan Division and replaced it with Production and Preservation Division.
• Removed all references to State Director, State Office and Field Office.
• Page numbers, sections and paragraphs were renumbered.
• Attachments were updated to reflect new policies and procedures due to the 2021 Realignment of Multifamily Housing and the notice published on 4/28/2023.

FORM REPLACEMENT RD 3560-8 TENANT CERTIFICATION dated 04-25. Prescribed in Handbook HB-2-3560. The Form and FMI are revised as follows:

• To comply with Executive Orders - item #9, replace the word “Gender” with “Sex.”
• Page 1 - to correct typos – remove the “.” following “at” and add “cents” after “50.” and
• Page 2, item #28, remove the comma “,” after 27 and add a period “.”

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