United States Department of Agriculture
PN 642: Changes to HB-1-3550 and Form RD 3560-44
May 30, 2025
Summary
This USDA procedure notice revises Appendix 11 of the Direct Single Family Housing Grants Handbook, updating loan approval authority procedures for Loan Approval Officials (LAOs). It allows conditional eligibility and approval authority based on fewer file submissions and streamlined inspections, and permits State Directors to accept existing homes with repair contracts in lieu of new construction in certain areas. Additionally, it replaces Form RD 3560-44 and its FMI for the Farm Labor Housing Technical Assistance Grant to conform to updated uniform guidance (2 CFR Part 200).
PROCEDURE NOTICE
RD MANUAL CHANGES
INSERT RD INS HB-1-3550 DIRECT SINGLE FAMILY HOUSING GRANTS FIELD OFFICE HANDBOOK.
This Handbook is partially revised. The specific revisions are outlined below.
Appendix 11:
- Updated references to “specialist” seeking loan approval authority to Loan Approval Official (LAO).
- Allows for conditional authority for eligibility reviews to be granted for a LAO to issue Form RD 1944-59, Certificate of Eligibility, or HB Letter 15, Standardized Adverse Decision Letter, after submission of seven eligibility reviews (five eligible and two ineligible) until full loan approval authority can be granted.
- Allows for the submission of fewer files (three 502 files and two 504 files of any type) to grant conditional approval authority for specific file types. The LAO only has loan approval authority for specific file types submitted and reviewed. LAO must continue to seek supervisor approval on file types they don’t have approval authority for on their own.
- In an area that lacks new construction, State Directors have the discretion to accept an existing home with repairs that requires a construction contract in place of a new construction file.
- Based on demonstrated proficiency in inspections and site approvals, the LAOs immediate supervisor can recommend final approval without requiring site inspections with the Housing Program Director.
| REMOVE | INSERT |
|---|---|
| Appendix 11 dated 01-23-03: All Pages. | Appendix 11 dated 01-23-03: Pages 1 thru 4 revised 05-30-25. |
FORM REPLACEMENT
RD 3560-44 FARM LABOR HOUSING TECHNICAL ASSISTANCE GRANT AGREEMENT dated 05-25.
Prescribed in 7 CFR 3560. The Form and FMI are revised to conform to uniform guidance found at 2 CFR Part 200-Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which replaced the provisions previously found in 7 CFR parts 3015 through 3019. The Form and FMI can be located on the eForms website eForms Home (usda.gov).
| REMOVE | INSERT |
|---|---|
| FMI dated 02-24-05. | FMI revised 05-30-25. |
oOo
READ PROCEDURE - DISCUSS IN STAFF CONFERENCE - KEEP PROCEDURE MANUAL UP TO DATE
Source: https://www.rd.usda.gov/media/file/download/pn642.pdf
Common questions
- What does "PN 642: Changes to HB-1-3550 and Form RD 3560-44" cover?
- This USDA procedure notice revises Appendix 11 of the Direct Single Family Housing Grants Handbook, updating loan approval authority procedures for Loan…
- Which agency issued this update?
- This update was issued by United States Department of Agriculture.
- When was it published?
- It was published on May 30, 2025.